An Internship Report on Muktinath Bikas Bank

Limited
Lalbandi
Submitted By:

Shristi Neupane

P.U. Reg. No: 2017-2-03-0266

Exam Roll No: 18031210

Level: BBA 4th year, 7th Semester

Submitted to

Apollo International College

Lakhechaur Marga, New Baneshwor

Submitted for the degree of

Bachelor of Business Administration (BBA)

New Baneshwor, Kathmandu

January, 2022
 DECLARATION

I, hereby declare that the internship report entitled “An Internship Report On
Muktinath Bikas Bank Limited”, submitted to Apollo International College,
Faculty of Management, Pokhara University, is my original work done based on
learning during internship program for the partial fulfillment of the requirements for
degree of Bachelor of Business Administration (BBA), under the supervision of Mr.
Ganesh Koirala.

…………………….

Shristi Neupane

January 2022

ii
Bonafide Certificate

iii
Internship Certificate

iv
 ACKNOWLEDGEMENT

It was a wonderful experience to work in Muktinath Bikas Bank, Lalbandi

branch as an intern. Indeed, it was a great opportunity for me to experience
internship program, as the basic purpose of fulfilling the partial requirement for the
Degree of Bachelor of Business Administration (BBA), under the course designed by
the faculty of management of Pokhara University.
Firstly, I would like to thank Pokhara University for including internship
program in our course of BBA, 7th semester. This gives us chance for gaining practical
knowledge to boost our interpersonal skills.

I express my sincere honor and special sense of gratitude to the teacher of Apollo
International College Mr. Ganesh Koirala for his generous guidance, thoughtful
encouragement and brilliant insight throughout completing this internship report. I
express my sincere honor and special sense of gratitude to the program director of
Apollo International College Mr. Bimal Gautam and coordinator Er. Mr. Shishir
Dhakal.

I owe great intellectual debt for support and immense contribution to administrative
of Muktinath Bikas Bank and I am thankful for accepting my presence and giving me
space. I would like to express sincere gratitude to all the staffs of Muktinath Bikas
Bank for their helpful co-operation. I would also like to express my gratitude to
Branch Manager Mr. Bhagya Narayan Das for supporting me throughout my
internship period. I am thankful to all of them who have immensely helped, guided
and supervised to complete the internship.

Finally, I would like to thank my teachers and friends of Apollo International

College who directly and indirectly motivated and helped me during internship and
also, by providing a good deal of knowledge and ideas for the existence of
internship.
Shristi Neupane

BBA, 7th Semester

v
Apollo International College

TABLE OF CONTENT

Table of Contents
title page.........................................................................................................................i
declaration.....................................................................................................................ii
bonafide certificate.......................................................................................................iii
internship certificate.....................................................................................................iv
acknowledgement...........................................................................................................v
table of content..............................................................................................................vi
abbreviations..............................................................................................................viii

List of Tables and Figures............................................................................................ix

CHAPTER – 1 ORGANIZATION PROFILE……………………………1-18
1.1 Description of the Organization...............................................................................1
1.2 Organization Mission and Objectives......................................................................2
1.2.1 Mission..................................................................................................................2
1.2.2 Objectives of the Bank..........................................................................................2
1.3 Major Markets and Customers.................................................................................3
1.3.1 Major Markets.......................................................................................................3
1.3.2 Major Customers...................................................................................................3
1.4 Products and Services..............................................................................................5
1.4.1 Major Products......................................................................................................5
1.4.2 Major Services....................................................................................................10
1.5 Organization Design and Structure........................................................................12
1.5.1 Organization Design............................................................................................12
1.5.2 Organizational Structure.....................................................................................13
1.6 Financial Structure...................................................................................................14
1.7 Organization Performance.....................................................................................15
1.7.1 Financial Performance........................................................................................15
1.7.2 HR Performance..................................................................................................16
1.7.3 Resource Utilization............................................................................................16

vi
1.7.4 Social Works and Responsibility........................................................................18
CHAPTER- 2 JOB PROFILE AND ACTIVITIES
PERFORMED…………………………………………………….19-27
2.1 Job Profile..............................................................................................................19
2.2 Activities Performed..............................................................................................21
2.3 Problem Faced and solved.....................................................................................24
2.4 Intern’s Key Observations......................................................................................26
CHAPTER – 3 LESSONS LEARNT AND
FEEDBACK………….......................................................................28-34
3.1 Key Skills Learnt....................................................................................................28
3.2 Attitudes Learnt......................................................................................................30
3.3 Feedback to the Bank.............................................................................................33
3.4 Feedback to the College/University.......................................................................34
Appendix -1..............................................................................................xi
All Branches of Muktinath Bikas Bank Limited..................................xi
Appendix- 2............................................................................................xiii
Interest Rate of Muktinath Bikas Bank Limited...............................xiii
Appendix-3..............................................................................................xv
Financial Report of MNBBL.................................................................xv

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 ABBREVIATIONS

BBA: Bachelor of Business Administration

BI: Banking and Insurance

Ltd: Limited 

P.U: Pokhara University

SRBL: Sunrise Bank Limited

ATM: Automated Teller Machine

BLB: Branchless Banking

SMS: Short Message Service

BODs: Board of Directors

CEO: Chief Executive Officer

FY: Fiscal Year

CSD: Customer Care Department

ECC: Electronic Cheque Clearing

ABBS: Any Branch Banking System

FD: Fixed Deposit

CCTV: Closed-Circuit Television

% : Percentage

KYC: Know Your Customer

NPR: Nepalese Rupee

7th: Seventh

viii
 List of Tables and Figures
Tables Pages

Table 1: Types of Fixed Deposit Account 8

Table 2: List of Board of Directors 13

Table 3: Financial Structure of SRBL 15

Table 4: Financial Performance of SRBL 15

Figures Pages
Organizational Structure of SRBL 14

ix
 CHAPTER – 1
ORGANIZATION PROFILE

1.1 Description of the Organization

In the context of Nepal, it is very difficult to trace the correct chorological

history of the Banking systems in Nepal because there are no sufficient historical
records and data about banking in Nepal. Nepal bank marks the beginning of a new
era in the history of the modern banking in Nepal. This was established in 1937 A.D.
which has been inaugurated by king Tribhuvan Bir Bikram Shah Dev on 30 th Kartik
1994 B.S. Today, the banking sector is more liberalized and modernized and
systematic managed. There are various types of bank working in modern banking
system in Nepal. It includes central, development, commercial, financial, co-
operative and Micro Credit banks.
Bank can be defined as financial intermediary between depositors and
entrepreneurs that offer the widest range of financial services especially credit
saving and payments services and perform the widest range of financial function of
any business firm in the Economy. According to Kent, “A bank is an organization
whose principal operations concerned with the accumulation of the purpose of the
temporarily ideal money of public for the purpose of advancing to other expenditure
by these divinations”. Commercial banks are the heart of our economy system. They
hold the deposit of millions of persons, government and business units. They make
funds available through their lending and investing activities to borrowers,
individuals, business firms and government. Banking software, ATM, E-banking,
Mobile Banking, Debit Card, Credit Card, Prepaid Card etc. services are available in
banking system in Nepal. It helps both customers and banks to operate and conduct
activities more efficiently and effectively. These commercial banks and financial
institutions have played significant roles in creating banking habit among the people,
widening area and business communities and the government in various ways.
Muktinath Bikas Bank Limited (MNBBL) was established on 19th Poush 2063 B.S.
(i.e. 3rd January 2007 A.D.) The Bank is licensed by the Central Bank of Nepal to operate
as a “B" Class National Level financial institutions with its Central Office at Kamaladi,

1
 Kathmandu Nepal. The Muktinath Bikas Bank is known as the leading Development
Bank of Nepal with a history of its own. Muktinath Bikas Bank has introduced new levels
of services and products which helps to conduct various types of activities effectively
and efficiently. In April 2008, the bank started Microfinance Program in its host of
services with starting a dedicated department at central office and branches to serve
low income but high potential people with high productivity. It is also exemplary
Banking system believed to be first of its kind in the world where two different
systems with reach to remote populace and operating under one roof of the Bank
with a primary goal of inclusive financial transformation.

1.2 Organization Mission and Objectives

1.2.1 Mission

Muktinath Bikas Bank Limited mission is to become a leading sustainable

organization to provide various financial services to the needy targeted people for
positive changes in their living.

1.2.2 Objectives of the Bank

The major objective of the Muktinath Bikas Bank, as a financial institution is

to provide financial services under the Memorandum and Article of Association of
the Bank, Bank and Financial Institution Act 2063 BS, Nepal Rastra Bank Act 2063BS,
Company Act 2053 BS and other prevailing legal and regulatory framework.

 To provide customer friendly product, services and door-to-door facility.

 To start a Microfinance Program in its host of services with starting a dedicated

department at central office and branch.

 To continuously expand Bank's operation in systematic manner.

 To meet its dual motive of financial self-sustainability and outreach by targeting

effective client, streamlined loan sanction processes and strict credit discipline.

2
 To become a leading, financially viable, socially acceptable, regulatory complaint,
financial services provider for all the stakeholder's well being.

1.3 Major Markets and Customers

1.3.1 Major Markets

The bank has opened its branches networks including branches inside and outside
the valley which do all the operational activities of the banks. The Central Office
located at Kamaladi, Kathmandu, Nepal. The Bank has a large footprint of 166
branches with 22 ATMs (still counting) spread across the country as of date.
The names of all branches of MNBBL are listed in (Appendix-I).

1.3.2 Major Customers

Muktinath Bikas Bank Limited have collected as many customers as possible

to provide satisfactory service. The customer friendly products and services are the
major factor for the Bank's popularity and success among the local people of the
area. They classify their customers into two groups and they are:
 Individual Customers
 Institutional/Corporate Customers

 Individual Customer

When an account is opened in individual’s name, it is called as individual

account. The person or account holder who handles that account is the individual
customer for the bank. Muktinath Bikas Bank Limited includes various types of
individual customer and some of them are

 Students
 General Public
 Senior citizens
 Salaried persons
Requirements of Individual Customer are:

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  Completed Account Opening Form(AOF)
 Copy of identification document
 Copy of document confirming verification of Residential Address
 Birth Certificate(in case of minor accounts)along with identification of the
adult operating account
 Foreign currency earning source document for Nepalese/Indian nationals in
case of opening of KYC Account
 Recent Photographs

 Institutional/Corporate Customers

Institutional customers is a term used in the financial services industry to

differentiate retail customers and corporate customers from other
financial institutions such as bank. There are various institutional/corporate
customer in Muktinath Bikas Bank Ltd too. Institutional/Corporate Customers is
listed below:

 Sana Kishan Laghu Bidth Bitiya Sanstha

 Rajani Tent House
 Kishan Bahu Udesya Firm
 Department Store

Requirement of Institutional/Corporate Customers are:

 Completed Account Opening From (AOF)
 Copy of Registration Certificate or Certification of Incorporation
 Copy of Tax Registration Certificate or Pan as application
 Copy of Memorandum and Article of Association
 Copy of Board Resolution and Power of Attorney as applicable
 Copy of Document verifying Registered and Trading /Operating address
 Copies if ID Documents of at least 2 of the main Directors (Including the
Managing Director ) and all signatories with a significant level of authority in
the line with the requirement for personal customers
 Copy of Document verifying Residential Address of at least 2 of the main
Directors (including the Managing Director) and all signatories with a

4
 significant level of authority in the line with the requirement for personal
customers.
1.4 Products and Services

Muktinath Bikas Bank Limited is committed for good corporate governance

practices and banking activities with prudent banking culture. It has been offering
various products and services for its customer with competitive rate in market. It has
been able to provide diversified service backed by the latest technology. The bank
aims to succeed and reach higher grounds by maintaining and adhering to its
corporate values, by providing various product and services.

1.4.1 Major Products

MNBBL has never backed in providing the best products and services to meet the
requirements of its customers be that the existing ones or potential customers.The
major products and services provided by MNBBL are as follows:

 Saving Account

Saving account is interest bearing account. Muktinath Bikas Bank

accepts deposit on saving account. Saving accounts can be opened by
individuals, guardian (on behalf of minor). Banks provides interest on these
accounts with a view to encourage saving habits. There are different saving
products offered by MNBBL and they are:

 Utkrista Savings Account:

Muktinath Bikas Bank limited has launched 'Muktinath

Utkrista Savings Account' which claims to offer the highest
interest rate of 6.50 % per annum on a monthly basis and
offers accidental death and disability insurance facility of Rs 1
million. The customer can open this savings account at
Muktinath Bank with a minimum balance of Rs 10,000. The

5
 bank will also provide a free Debit card for the first year and
free mobile banking and free internet banking services every
year.

 Sambriddhi Savings Account:

The Sambriddhi Savings Account of Muktinath Bank is

offering an annual interest rate of 6.40%, which is equivalent
to the higher interest rates of other banks. The main feature
or attraction of this savings account is that the bank pays
interest on a monthly basis. The account can be opened at a
minimum balance of Rs. 100 only. Not only this, the account
holders also have the facility of free mobile banking and free
internet banking services throughout the first year of opening
the account. In particular, the bank has introduced this facility
in this savings account to promote digital system. This is one of
the best savings accounts of Muktinath Bank.

 Sunaulo Bal Savings Account:

The Sunaulo Bal Savings Account of Muktinath Bank is

offering an annual interest of 5.35% on a quarterly basis. The
customer can open this savings account at Muktinath Bank
with a minimum balance of Rs. 0. The Children of 16 years of
age and below can open this savings account with a birth
certificate of children and copy of citizenship certificate of
guardian.

 Sajilo Bachat Khata:

Sajilo Bachat Khata is a saving account with an objective to

on board maximum people into the banking system. This

6
 saving account can be opened with zero balance where the
bank will be depositing Rs 100 in the customer's first Bank
account. The bank has stated that it will pay interest on the
savings account at the rate of 5.35% in a quarterly basis.

 Current Account

Current Account is non interest bearing account. It is also called

transaction account. A current account can be opened with a minimum
amount decided by the specific branch. In Lalbandi Branch, Current
account can be opened with a minimum balanceis of Rs. 5000. Once the
account is opened, the customer will receive their own cheque book. To
replace cheque book the account holder must submit cheque request slip
which is at the back of current cheque book at home branch and bank will
arrange a new one for account holder. The Muktinath Bank offers
following current account:

 Individual Current Account

 Institutional Current Account

 Fixed Deposit Account

Fixed deposits is investment instruments offered by banks and non
banking financial companies, where we can deposit money for a higher rate
of interest than savings accounts. We can deposit a lump sum of money for a
specific period, which varies for every financier. Muktinath Bank has different
types of term and interest rates on a fixed account. Muktinath Bank offers
following fixed deposit account:
 Individual Fixed Deposit Account
 Institutional Fuxed Deposit Account

7
 Table-1: Types of Fixed Deposit Account

Product Interest Rate (per Payment Frequency)

Annum)
Individual Fixed Deposit
Product
3 Months and above 10.35% Monthly/Quarterly
Muktinath Remittance 11.35% Monthly/Quarterly
Deposit
Institutional Fixed
Deposit Product
3 Months and above 9.35% Monthly/Quarterly
(Source: www.muktinathbikas.com.np)

Loan products

MNBBL has developed loan products to meet financial demand of borrowers.

Bank provides group based (Collateral Free) and collateral based (Individual) loans to
needy clients. Following are the current loan products offered under microfinance
program of the bank:

1. Group Based Loan

 General Loan:

This is basic loan for MNBBL microfinance clients. This loan is provided
for income generating activities only. Enrollment in this microfinance

8
 program enables individual and group to pursue loan maximum up to NRs.
500,000 and NRs. 700,000 respectively.

 Improving Agricultur Loan:

The loan will be made available in the agriculture to augment climate

change resilience through the use of adaptive or mitigation strategies with
respect to the effects of climate change. This loan can be disbursed starting
from NRs. 200,000 up to NRs. 100,000 in first cycle.

 Energy Loan:

Energy loan is designed to meet the demand of borrowers who intends to

install solar home system and purchased parts for Wind Energy and Micro
Hydro Project. Maximum ceiling of Energy Loan is NRs.300,000

2. Collateral Based Loan (Individual)

 Small Housing Loan:

This product has been designed to fulfill the dream of those people
who wants to settle down by buying a new land and construct their own
house. Maximum ceiling of Small Housing Loan ranges from NRs. 10,00,001
to NRs. 20,00,000.

 Foreign Employment Loan:

Remittance is being backbone of Nepalese Economy, Bank is trying to

provide easy loan to migrant workers on affordable price. Bank leads
Foreign Employment Loan up to NRs. 150,000.

 Small Enterprises Loan:

9
 This product has been designed for startup and further enhancement of
already running enterprises. Maximum ceiling of Small Enterprises Loan
ranges from NRs. 10,00,001 to NRs. 20,00,000.
1.4.2 Major Services

The major services of MNBBL are as follows:

1. Remittance

Remittance is the process of transferring fund from one place to any corner of
the world. Muktinath Bikas Bank's remittance acts as a bridge between the
remitter and beneficiary providing the geographical coverage.

2. ATM

ATM Card is an electronic card which is used to withdraw cash via Automated
Teller Machine at any time. To serve its customer with new technology bank has
developed this card which reduce the need to move to bank for withdrawing cash
or checking balance. The Muktinath Visa Debit card issued in collaboration with a
principal member of Visa International bearing Visa brand mark which can be
used at a merchant location for services through Point of Sales terminals and
ATM terminals bearing Visa logo to withdraw cash.

Procedure for providing ATM Card

 The account holders fill up ATM card form or application form with
authorized signature.
 Muktinath bank office level staff must verify application and signature.
 If customer is new ATM card holder, than they received new ATM card after
one week.

10
  If customer is old ATM card holder (expired, lost, theft), their card ordered to
head office. So, cardholder received after few days.
 When Card is provided to holder, card number is written in ATM form, holder
sign in ATM application and ATM card register.
 At last officer level staff must be approved of card provided to account
holder.
3. Internet Banking

Internet banking enables a customer to do banking transactions through

the bank's online portal. This is known as net banking or direct banking. The
internet has dramatically changed the cost and capabilities of the marketing
and distribution of new type of products and services. Muktinath Bikas Bank
Limited's customers will be able to conduct various informational and
financial transaction through the bank's direct banking. This service currently
includes the following features:
 Account Information
 Account Statement
 History of financial transaction
 Funds transfer to any account within the bank
 Merchant payments
 Utility Bill payments
 eSewa facilities

4. Mobile Banking

Muktinath Smart Mobile Banking provides convenient mechanism and

quick access to banking services for Muktinath Bank customers from their
mobile devices. The popular services are balance inquiries, recent transaction
details, e-recharges and bill payment to utilities like Ncell postpaid, Ncell
prepaid, Top up, NTC ADSL, NTC landline and NTC postpaid mobile phone
bills. Mobile Banking integrated with Fonepay

11
 enriches our customer with more enhance services like Interbank fund
transfer, Muktinath Bank merchant payments. This service currently includes
the following features :
 Mini statement view
 Account Dashboard which links linked account information like Saving
Account, Loan Account details
 Payment to different Merchant Outlets using QR Code
 Personalized QR code
 Load eSewa Wallet
 Banking services without internet (SMS Banking)
 Recharge Cards viz. NT GSM, NT CDMA, Dishhome, Broadlink internet and
Smart Cell
 Electricity, Airlines, Internet, Meroshare Fees, Water Bill Payment
 Graphical Statement and Account Dashboard
 Biometric Login Security using Fingerprint for both Login and Transaction
Pin

1.5 Organization Design and Structure

1.5.1 Organization Design

Organizational design is the process of implementing organizational
structures and systems that allign to an organization's core strategies. It involves
many different aspects of life at work, including team formation, shift patterns, lines
of reporting, decision making procedures, communication channels and more.

Board of Directors

A board of directors is essentially a panel of people who are elected to represent

shareholders. The board is responsible for protecting shareholders interests,
establishing policies for management, oversight of the corporation or organization
and making decisions about important issues a company or organization faces. The
Board of Directors of Muktinath Bikas Bank Limited comprises of 6 members who are
responsible for managing the overall activities of Muktinath Bank. The BODs of
MNBBL are listed in the table below:

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 Table: 2- List of Board of Directors

S.N. NAME DESIGNATION

1 Bharat Raj Dhakal Chairman
2 Gajendra Man Shrestha Director
3 Rabindra Man Shrestha Director
4 Shaligram Mishra Director
5 Nirmala Kumari K.C Karki Director
6 Shyam Sundar Sharma Independent Director
(Source: www.muktinathbikasbank.np)

1.5.2 Organizational Structure

An Organizational structure is a system that outlines how certain activities are

directed in order to achieve the goals of an organization. These activities can include
rules, roles and responsibilities. This structure is developed to establish how an
organization operates and assist an organization in obtaining its goals to allow for
future growth. It designs process, organization act to improve the probability that
the collective efforts will be successful. It is used to match the form of the
organization as closely as possible to the purposes the organization seeks to achieve.
The organizational structure also determines how information flows between levels
within the company. Having an organizational structure in place allows companies to
remain efficient and focused.The organization structure of MNBBL is presented in
the following diagram:

13
 Figure 1: Organizational Structure

1.6 Financial Structure

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 Financial structure refers to the mix of debt and equity that a company uses to
finance its operations.The composition directly affects the risk and value of the
associated business. The financial managers of the business have the responsibility of
deciding the best mixture of debt and equity for optimizing the financial structure.

Table: 3

Financial Structure of MNBBL

Promoters Conntribution 51%

Public Contribution 49%
Authorized Capital 8.00 Billion
Issued Capital 5.65 Billion
Paid Up Capital 5.65 Billion
(Source: www.muktinathbikasbank.com)

1.7 Organization Performance

An organizational performance is an analysis of a company’s performance as
compared to goals and objectives. In other words, organizational performance
comprises real results or outputs compared with intended outputs. The performance
of organization is discussed below.

1.7.1 Financial Performance

Financial performance refers to the way the firm's assets financed with.The
recent fiscal year was yet another challenging year for Muktinath Bikas Bank Limited
and the banking industry as a whole. However, this bank shows that in spite of these
challenges, the bank was able to post satisfactory results. The comparative financial
indicators of the bank is presented below.

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 Financial Performance of MNBBL
Table: 4
(FY 2076/77) (FY 2077/78)
Total Asset 66,35,00,00,000 1,01,00,00,00,000
Total Deposit 59,63,30,00,000 92,32,00,00,000
Total Loan 48,26,50,00,000 76,40,00,00,000
Investment 6,76,50,00,000 14,73,60,00,000
Net Profit 70,70,00,000 1,15,60,00,000
Earning Per Share 16.56% 24.03%
(Source: www.muktinathbikasbank.com)

Therefore, the total asset, total deposit, total loan, investment, net profit along with
earning per share has been increased in the current year (FY 2077/78) as compared
to the previous year (FY 2076/77). Thus, the above table shows that this institute has
increased its position in the market.

1.7.2 HR Performance

HR performance of Muktinath Bikas Bank Limited is satisfactory. They

performed their work honestly and sincerely. There are frequent interns in the
organization throughout the year and every branch has allocated adequate number
of employees. The HR incharge are responsible for entire functions including
recruitment, performance appraisals,retention and handling employee grievances.
There is good chain of command and coordination among employees. Some of the
activities performed in Muktinath Bikas Bank are:

 Favoritism and nepotism should be completely removed at work

 Hire applicants having digital skills
 Bring the IT and other departments closer
 Re-design career paths
 Encourage innovation in training

1.7.3 Resource Utilization

16
 Resource Utilization refers to the process of making the most of the
resources available to you in order to achieve the objective that you want to. An
enterprises resource can include such things as financial resources, human resources
and physical resource.

 Financial Resource Utilization

Financial resource utilization is the utilization of money available for

spending in the form of cash, liquid securities and credit lines. MNBBL has also
invested in different hydro sectors but because of political instability, it is not
completely possible. So banking sector cannot grab the resources available in our
surroundings. MNBBL has to invest their finance in different sectors (such as;
health and education sector, developmental sectors and so on) in a manner that
minimizes banks cost arising from wastage and lost opportunities due to delays
in operations and idle or non-productive resources.

 HR Resource Utilization

HR resource utilization is the extent to which available human resources are

deployed effectively for the maximum achievement of individual, collective,
organizational or national goals and objectives. MNBBL has fully utilized its
HR resources. The bank is neither under employed nor over employed. The HR
resource is fully managed and utilized properly. In total, there are more than 1500
staffs and all of them are fully devoted towards their works.

 Physical Resource Utilization

Physical resource utilization refers to the utilization of equipment and

tools, inventories, storage, production and distribution facilities provided by
bank.MNBBL has sufficient number of branch offices, buildings, automobiles,
office equipment and so on. The bank has enough physical infrastructures
17
 needed to run an operation. There is neither unnecessary equipment available
nor less than needed. The physical resource of the bank is properly managed
and utilized.
Thus, the finance resources, physical resource and HR resource is utilized by
the bank where it is needed.

1.7.4 Social Works and Responsibility

Muktinath Bikas Bank believes that it has to maintain the ecosystem to

return to the portion of earnings that it has earned from the society which would
eventually make the world a better place to sustain. Muktinath Bikas Bank has
always stayed strong to its commitment to positively impact society and
environment in addition to valued its customers, employees, investors and other
stakeholders. In pursuit of the mission of being the socially acceptable and
environmentally friendly financial institution, the bank has carried out various social
and environmental activities as a part of the corporate social responsibility. The Bank
has long term commitments through its CSR activities for sustainable growth and
viability. A summary for the contribution made by the Bank in line with SDG for FY
2077/78 (2020/021) are as below:

 Clean Water and Sanitation

 Climate Action
 GoodHealth and Well Being
 Sustainable Cities and Communities
 Quality Education
 No Hunger
 Peace Justice and Strong Institutions

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 CHAPTER- 2
JOB PROFILE AND ACTIVITIES PERFORMED

During two months of my internship period in MNBBL, I got the wonderful

opportunities to worked in customer service department which operates under the
branch operation department. Their i got a chance to performed lots of activities and
solved various problems. This report also focuses on the activities performed by the
internees in the department of the bank.

2.1 Job Profile

As an intern at MNBBL I got to know many operations of the bank. I

experienced a great deal of corporate cultures in a friendly environment. I was
involved in CSD and gather practical experience about the functioning of department
and bank as a whol I have learnt many things which was very important for my
career and self growth as well. The makor department and their functions of the
organization are as follows:

 Customer Service Department (CSD)

The Customer Service Department is a team that impacts the business by

handling all direct customer service needs. This department plays an important

19
role in the survival and continued functioning of any company. Although there
are many different roles that customer service department plays, the two major
functions of the department that affect an entire business include public
relations and the creation of a positive company culture. The tasks and activities
of customer service representatives are directly related to these to major
functions.

 Cash Department
Cash department is one of the most important department in any bank.
Cash department should be placed in a branch from where manager can
watch everything from his table either clients or valts. Cash department can
be considered as a reflector of Bank's competency, credibility and its
trustworthiness. It deals with the cash that is either inward or outward i.e.
payment in cash by the customer or payment to customer in cash form, with
cheques and with receipts.

 Loan Department

Loan departments work with small and large businesses to finance

equipment, offices, real estates and inventory loan. They also provide bridge
loans when companies need to pay workers or meet other obligations. The
function of this department is to examine the eligibility of the concerned
party to determine whether to provide the loan or not. MNBBL has
developed new credit product like housing loan, education loan, personal
loan, mortgage loan etc. It prepares a legal document format to lend a loan
recovery by the process of follow up.

 Remittance Department

This department deals with the basic paying and receiving of funds in to
the Bank for clients. They deal with the Foreign Currency time placements

20
 balance certificate for clients. Muktinath Bikas Bank Limited operating under
the guidelines set by the Government of Nepal and Nepal Rastra Bank offers
one of the safest and the most secured means of money transaction to
Nepal.

 Marketing Department
The Marketing Department plays a vital role in promoting the business and
mission of organization. It is the marketing department's job to reach out to
prospects, customers, investors and the community, while creating an
overreaching image that represents company in a positive light.

 HR Department

HR Department is a group who is responsible for managing the employee

life cycle i.e. recruiting, hiring, and firing and administering employee
benefits. It also strategically manages the culture and work environment of a
company. It implements the strategic use of employees and the development
of programs that will impact the business in a positive ways.

 Risk Management Department

The Risk Management Department is a business function set up to

manage the risk management process on day-to-day basis. The Risk
Management Department under the leadership of Chief Risk Officer supports
the Board level Risk Management Committee to perform the role of risk
oversight, policy and methodology formulation and reporting of key risk
issues.

 Electronic Cheque Clearing (ECC)

21
 ECC department in Nepal is operated by Nepal Clearing House
Limited. The presenting bank sends an electronic image of the cheque along
with the relevant information like the MICR code line data, date of
presentation, presenting bank, etc., to the clearing house. The clearing house
forwards the images along with data files to the drawee/ paying bank. The
paying bank branch takes the ‘Pay’ or ‘No-Pay’ decision based on the image
of the cheque.

2.2 Activities Performed

During the internship period of 2 months in MNBBL, Lalbandi Branch, i observed the
various activities done at CSD that aid in the development of my interpersonal and
communication skills.Throughout the internship period, I was able to know about the
various products and services provided by MNBBL bank. Thus, the knowledge and
experience endowed with this study will surely be constructive towards the
pavement of my career and professional life. The department where I worked as an
intern in MNBBL is:

 Customer Service Department (CSD)

Customer Service Department is the most important department in

any bank. It is called the front desk as the customer first contact this
department for their queries.The purpose of this department is to provide
various services to the customers who visit the bank.It basically deals with
the issuance of cheque book, the opening and closing of various types of
account as per the customer requirement, the maintenance of bank
statement, provides various cards such as ATM, Credit card, SMS banking,
Debit card, etc. Main task I performed during my internship are:

 Account Opening

22
 At MNBBL , I got to learn about account opening, where I was given a
task to help customer for filling the form to both individual and corporate
customer and check if the required document are complete or not. After
checking the document and form is filled up properly or not, I had
performed on software scanning called AML check and only then an
account for individual and corporate are opened only if the AML is clear.
But if the screening showed up some unusual things, I would forward to
compliance and wait for reply then only used to start a process for opening
account in software of a bank.

 Balance Inquiry

As CSD is front desk of the bank, customer directly comes to interacting

in this department. I got to learn about the process of balance checking
because the first thing that any customer would want to know was the
balance they have on their account. I was taught to tell the balance only if
the account holder is asking which can be identified through their signature
card and other were allow to know the balance.

 Providing Bank Statement

A bank statement shows the entire banking transaction of the account. I

was trained how to print bank statement for individual and corporate
customer. For individual customer, they need to fill up the bank statement
request form with their account number, name, date from when they want
the statement and most importantly their authorized signature. But for the
corporate customer, if they send a third party to receive a bank statement
they need to write an application with their account number, authorized
stamp, proprietor's authorized signature and receiver's name, mobile
number and identity card. After verifying the authorized signature only I
was allowed to provide bank statement.

23
  Printing and Providing Cheque

Cheque printing and issuance is the very sensitive task. I was trained how
to print cheque. If the customer is issuing a cheque, requisition slip should
be filled up including their account number, account name and authorized
signature. The customer who issues a cheque for a first time can get only 10
leaf of cheque and for second and more than that the customer can get
more than 10 leaf. If third party receives the cheque bank need to record
receiver name, mobile number and identity card before providing a cheque
to them.

 Mobile Banking and Internet Banking Activation and Deactivation

Mobile banking and internet banking are software that allows

customer to enquire the balance, fund transfer, getting statement and so on.
MNBBL has taught me about the process of activation and
deactivation of the customer mobile banking and internet banking as
per their request. The customer needs to fill up the mobile banking form with
their name, mobile number and their authorized signature. The customer
need to fill up internet banking form with another additional terms and
condition, including account holder name ,e-mail address and authorized
signature and the mobile banking system and internet banking system are
activated through intranet software only after the verification of the provided
signature.

 Account Closing

Customer can also close their account according to their needs. While
closing an account, customer need to fill up account closing form with
presenting cheque book and ATM. As per the rule of the bank, the customers
bear account closing charge according to nature of account. Certain balance

24
 is deducted from the account if the issued cheque book and ATM card is lost
and remaining amount os refund to the customer.

2.3 Problem Faced and solved

During the internship period, I faced various problems and solved them either by self
or by connecting the problem to the concerned staff.

 Problem 1: One customer who had an account in MNBBL came to complain

that he used his mobile banking application to send money to his friend
account in Investment Bank Limited, the money from his account was
deducted by Rs. 10000 but it was not credited in his friend account.

Solution: I consulted the concerned staff and staff check his statement
whether the amount is deducted from his account or not. Then I advised the
customer to write a request letter to Investment Bank

Limited and helped him. Then the concerned staff sent e-mail to Investment
Bank Limited.

 Problem 2: After one month of internship, my co-worker who I worked under

as an intern had taken leave due to her personal reason and I was alone at
my CSD department.

Solution: I tried to manage everything alone by myself and whenever I used

to face any problem, I immediately contacted with other department's
employees. It also built my confidence and I got courage to face any kinds of
hurdles with patience.

 Problem 3: Once the customer informed through phone for KYC update
visited KYC section when it was too busy, and the customer was 70 years old.
He was unable to fill the form.

25
 Solution: I prioritized the customer for his comfort and filled up his KYC
update forms, convincing other customers to wait for few minutes and asking
for apologies with him for being few minutes late.

 Problem 4: Once the cheque printed the two numbers, serial number of
cheque and the issue number which did not match.

Solution: I immediately consulted the CSD in charge about the problem and
the cheque print was cancelled, that led very few cheques to be void.

 Problem 5: Once, the customer came and complained that she never gets the
messages from the bank when she does transactions in her account while
depositing and withdrawing.

Solution: I consulted with the concerned staff and the staff checked whether
the customer is activating on the mobile banking services of the bank and
found that the customer's account was not registered for SMS alert service. I
advised the customer to write a request letter and helped her. Then the
concerned staff added SMS alert service to the customer's account.

2.4 Intern’s Key Observations

It was great experience to be a part of MNBBL and work as a intern. The

seniors of the institution were very helpful and were always ready to impart their
knowledge and solve the queries at easy time.I understood the gap between
theoretical knowledge and practical field, got familiarized with office equipment and
understood the similarities and differences between bank and college culture. The
things that I was able to observe in this bank are as mentioned below:

 Organization Culture

26
 Organizational culture is the collection of values, expectations and
pratices that guide and inform the actions of all team members. Organizational
culture at MNBL is quite impressive and maintained. The staffs of the MNBBL are
punctual about their working time and they have their proper dress code of the
bank that makes them look smart.

 Working Environment

A work environment is the setting, social features and physical conditions

in which we perform our job.The working environment of MNBBL is very friendly
and more comfortable. The staffs of MNBBL makes the intern feel free to ask
about the job and, moreover, they also provide information if it is required for
intern. Similarly, there is an advance working process and the modern
technology used for functioning. While working in the bank as an intern I
observed many things but main things that are only observed are the key to
understand the bank and its operating process.

 Co-operation by Co-workers

Cooperation in the process of groups of organisms working or acting

together for common, mutual or some underlying benefit, as opposed to working
in competition for selfish benefit.The co-workers at MNBBL, Lalbandi Branch
were very cooperative. I feel very much comfortable to work with them. When I
do something extraordinary, the in-charge head appreciate the job. Thus, I got to
know how the work is done and how the staffs interact among themselves and
with the customers.

 Behavior of Supervisor

A Supervisor is anyone who oversees and manages a team or individual to

ensure that they are performing effectively and satisfied in their role. At MNBBL,
Mr. Bhagya Narayan Das (Manager of MNBBL, Lalbandi Branch) supervises the

27
employees and so to the internee. However, the respective department in-
charge plays the immediate supervisor of internee.

 Working Process and Technology

A work Process is a written document of the standard procedures of how

to handle or perform a work and technology is the branch of knowledge that
deals with the creation and use of technical means. MNBBL is well equipped and
had recently updated the banking software PUMORI. The bank has computers
and printer in each department, CCTV cameras to supervise, cash counting
machine and so on for the effective work processing. During my internship
period, I observed that CCTV cameras are very helpful for the supervision of
workers and to get detailed footage of every activity to reduce conflict and
robbery in near future at bank and computer and printer are compulsorily
needed in bank.

28
 CHAPTER – 3
LESSONS LEARNT AND FEEDBACK

The internship period was very fruitful which showed the face of real life job
experience. I felt it to be quite effective to enter in the world of banking institutions.
The internship period has taught me how we can implement the theoretical
knowledge in our pratical life. I too felt on-the-job training only which is monotonous
and forgetful. I get a chance to learn about the different functioning of the bank and
general background of different department like customer service, credit and
remittance.
The internee practices a higher level of responsibility and confidence,
understand the gap between theoretical knowledge and practical field and get
familiarized with office equipment and understand the similarities and differences
between bank and college culture. There is advance working process and modern
technology used for overall functioning of the bank.
I realized the success of any institution lies in its customer and loyalty from
the customer is more valuable than the number of customer. I had learnt how to use
the theoretical knowledge in the practical field but also found that every time the
theoretical knowledge is impossible to apply.

3.1 Key Skills Learnt

The study has its vital significance to me and overall I found the internship
training at MNBBL, Lalbandi Branch to be a rewarding experience.Gap between
theoretical knowledge and practical knowledge could be observed during internship
period. Internship provides an opportunity to work and get knowledge and skills
required at that workplace. I learnt various interpersonal skill, communication skill,
operation skill and technical skill that helped me to build my knowledge in a broad
way. I had learnt many things during the internship period. Some skills that I learnt
at Muktinath Bikas Bank Ltd are as follows:

29
 Operation Skills

I learnt the process of opening and closing account, issuing cheque,

issuing bank statement, dealing with the customers at CSD, debit and credit
posting etc.I learnt the process of issuing ATM card. I learnt to identify different
type’s legal documents. Most importantly I learnt about the importance of CSD in
the bank and its various activities i.e. cheque printing and distribution, dealing
with the customer. I also got the opportunity to learn about the KYC policy.

 Communication Skills

During internship my communication skills also get increased developing

the softness and being more formal while communicating with the people or
clients. I came to know about, how to present oneself in front of the customers
in such a way so that customers feel satisfied in every aspect about their queries
that had been presented. The negotiation skills of mine also got increased while
dealing with them.I got a chance to learnt to deal with various commercial as
well as others levels bank staffs. Mine positive attitude also got developed while
dealing with different nature of customers.

 Interpersonal Skills

I learnt how to handle customer visiting in the banks with different

temperature, mood and queries, learnt the importance of time management and
developed interpersonal skills. As working in the Muktinath Bikas BankLtd, I
developed interpersonal skills to communicate with others easily in the bank. I
had to talk to customers and listen to their demands and queries. I developed
mass facing ability, facing various types of customers. Therefore, the
interpersonal skills helped me to interact with the various customer and their
various problems.

 Technical Skills

30
 During internship period I learnt how to operate banking system i.e.
PUMORI and also learnt how to use the printer, cheque writer photocopy
machine, scanner ATM machine and many more.Before internship, I was unable
to use any of the technical instruments like printers, computers, scanner and
different software of the bank. Hence, I learnt the basic necessary skills for
operating, printing, using computers, scanner and software after internship and it
was only possible because bank placed me in customer care department and
taught to perform activities related to it. There must be a two way effective
communication with the customer so as to satisfy them with the services.
Therefore all these skills were gained through internship which motivated for the
better performance with developed personality.

3.2 Attitudes Learnt

As the intern in the MNBBL, I learnt few other things apart from the skills and
that is attitude towards the organization and co-workers. Before, I used to feel
uncomfortable, nervous while interacting with anyone but after completing my
internship I am more boosted up with confidence as I learnt attitudes like, to boost
confidence level to communicate and co-ordinate with strangers who lacked before
working in this organization. Some other attitudes that I learned during my
internship are follows:

 Positive Attitude

The positive attitudes that were developed are as follows:

 I found most of the staffs in the organization were helpful and co-operative
which helped me to gain working knowledge and perform different tasks.
 I was punctual and obedient towards my work and organizations
management that help me to drive positive attitude towards management.
 I learnt that behavioral issues are the most important inside the organization.
Customers feel satisfied when they are behaved properly.
31
  The working environment of MNBBL, Lalbandi Branch was very friendly,
comfortable and satisfying which gave me energy to work more actively.

 Negative Attitude

Some of the pleasing work at MNBBL, Lalbandi Branch gave me positive attitude but
there are some negative approaches as well that I suffered during my internship
period are as follow:

 Many customers are not satisfied with ATM services and machines provided
by the bank.
 Loafing of by some team members could lead to huge negative impacts on
the overall team performance.
 I perceived that employee showed different assertiveness towards different
customers.

Specifically, there are various attitude towards different people and environment
and some of them are as follow:

 Attitude Learnt Towards Customers

I got a chance to learned both positive and negative attitude towards

customer Some customers behave so well and behavior of some customers was not
so good. Sometime it was difficult for me to handle all customers at a time and they
have to wait for a minute.

 Attitude Learnt Towards Supervisor

My attitude towards supervisors was positive. Supervisors used to visit my

department in the bank and help or advise me if I got any trouble while

32
working .Supervisors helped on making banking environment familiar to me in my
internship period in MNBBL.

 Attitudes Learnt Towards Co-worker

Working as an intern in the bank, I came to know that all the co-workers were
positive to me. Most of the co-workers in the bank were helpful and co-operative,
they helped me in learning process and gave me an idea about how to perform
various activities that helped me to build positive attitude towards them. They
encouraged me to work in team and create good working environment in bank.

 Attitude Learnt Towards Working Environment

On my eight weeks of internship period, I was familiar towards the working

environment of MNBBL. I found working environment of the bank was good for all
intern and employee because of which I performed my work without any
disturbance. Working environment of bank was friendly, comfortable and satisfying
for intern and employee.

 Attitude Learnt Towards Overall Perception

Before starting intern, I used to be uncomfortable and nervous while interacting with
anyone. But during internship period, I deal with different customers and agents
which help me to build my confidence level. I was introduced as a team member and
was assigned various activities that had to be performed in a team, which help me to
increase my team work skill while working at MNBBL. So, my attitude towards
overall perception of the bank was positive.

33
3.3 Feedback to the Bank

Throughout the internship period, I found that Muktinath Bikas Bank worked
continuously towards creating long-term benefit for their shareholders, society and
customers at large. They were trying to provide the best possible experience for
their needs, expectations and solutions for problems. Similarly, the bank also
encouraged their employees for fair pratices at work, a good working or progressive
environment where ideas are valued and all the achievements no matter small or big
are celebrated with equal enthusiasm. Considering their roots and history, they
focus on uplifting the society and also the people involved while continually giving
the best possible financial solutions to the various segments of customers that are
involved with them. After getting all those achievement also MNBBL seems to be
not satisfying its customer needs properly. Customers are unsatisfied due to its slow
working procedures for getting ATM card. Still the bank needs to review the
management and adopt the better technologies. The working method is too slow.
Every transaction is posted manually into register and then into computer, which
makes work lengthy and complicated too. More training must be provided to the
staff in short interval of time so that they become familiar with the new modern
technology. The organization is well enough but there are some drawbacks as
nothing can be perfect. So here are the feedbacks to the institution to recover the
limited drawbacks and to make it better and accessible:

 Increase the use of latest media of advertisements and social networking

sites such as facebook, Instagram and twitter. Customers query must be
replied instantly on social media sites.
 The staff's whose job role requires frequent contacts with the customers
should be trained to deal in a patient and polite manner.
 It is observed that the employees were overburdened because of heavy
workload so they have to stay at bank till late at night. Therefore, proper time
management or hiring more employees can reduce their work.
 The willingness to work should be developed among the employees through
effective incentive plans.

34
  Various programs to be conducted so as to attract more people
 towards the banking services and its facilities.
 Bank has provided many facilities to the customers like ATM card, mobile
banking, e-banking but only this is not even, the bank should ensure smooth
flow of services without any complaints from the customer.
 The operations should be systematized in proper flow of the work.

3.4 Feedback to the College/University

The internship program is to be conducted by the students as per the

requirement of the university. It is also a responsibility of the college to provide good
and practical opportunities to the students to impart the real world situations. The
experience from the workplace can help interns to gain necessary skills and
knowledge that can improve their career. Therefore, here
are some proposals for the college/university.
 The internship program would be effective if it was in the eighth semester. It
would be easier for the student to join the organization if an offer will be
made.
 University should do negotiation with some big industrial houses, and
financial institutions so that there won’t be any hurdles for students while
searching internship.
 The university can be suggested to focus more on on-the-job training than
theory classes.
 The college can be suggested to design the courses which will make the
student more updated with the latest technology.
 College should try to promote the strength of the student and the course
they are providing to the students so that the internee are assigned intern as
per their capability and strength.
 The university can incorporate the internship program with a longer time
period so that it would help to boost the skills of student and may provide
them with more learning opportunities.

35
 The college could have eased the pressure on the students by reducing the
number of assignment and classes on the time of internship.
 The college should had simultaneously feedback sessions with the student
about their performance in the related organization.

Inspite of all, I would like to thank Pokhara University and Apollo

International College, for giving such mind blowing course structure, extremely
ace designating teachers, and better environment and giving such passage level
position undertakings to get the learning of organization under studies

36
References
https://www.muktinathbikasbank.com.np
https://www.nrb.org.np

Annual Financial Report

Annual Report (2020/21) Muktinath Bikas Bank Limited

ix
APPENDICES
Appendix -1 
All Branches of Muktinath Bikas Bank Limited

x
(Source: www.muktinathbikasbank.com.np)

xi
Appendix- 2
Interest Rate of Muktinath Bikas Bank Limited

xii
xiii
(Source: www.muktinathbikasbank.com.np)

xiv
Appendix-3
Financial Report of MNBBL

(Source
:www.muktinathbikasbank.com.np)

xv
xvi