GENERAL BANKING PRACTICES OF NEPAL BANK LIMITED,

BIRTA, BIRGUNJ

AN INTERSHIP REPORT

BY
SUNAM CHAURASIYA
EXAM ROLL NO. 21860/18
T.U. Reg No. 7-2-15-60-2018

An internship Report Submitted to

Faculty of Management, Tribhuvan University
In the partial fulfillment of the requirements for the degree of
Bachelor of Business Management

At
Thakur Ram Multiple Campus
Tribhuvan University

Birgunj, Parsa
August,2023
 STUDENT’S DECLARATION

I hereby declare that the internship report entitled,

GENERAL BANKING PRACTICES OF NEPAL
BANK LIMITED submitted to the Faculty of
Management, Tribhuvan University, Kathmandu is
an original piece of work under the supervision of
Dr.Baidyanath Pd. Yadav faculty member of
Thakur Ram Multilple Campus, Birgunj and is
submitted in partial fulfilment of the requirements
for the award of the degree of Bachelor of
Business Administration (BBA). This internship
report has not been submitted to any other
university or institutions for the award of any
degree or diploma.
.

-------------------
Sunam Chaurasiya
15-08-2023
 ACKNOWLEDGEMENT
The report entitled GENERAL BANKING PRACTICES
OF NEPAL BANK LIMITED is prepared for the partial
fulfillment of the requirements for the degree of Bachelor
of Business Administration offered by Tribhuvan
University, on the basis of the activities performed and
experience gained during the internship period. I would like
to express my deep and sincere gratitude to Tribhuvan
University, for providing great opportunity to enhance my
educational knowledge and build up skills of practical
working conditions.

Firstly, I would like to express my sincere gratitude to my

supervisor, Dr.Baidyanath Pd. Yadav for the guidance,
constant supervision and clarification. Secondly, I am
extremely thankful to my campus chief Golman
Gurung,Director Sushil Bhattrai and the college
management for providing support and other necessary
documents during the internship program and report
preparation.
I would like to evince my sincere appreciation to Homnath
Dahal, Branch Manager Birta Branch. Also I would like to
thank my supervisor Brijkishor Kushwaha for his proper
guidance, suggestion and encouragement for directing intern
to the right track despite of his busy schedule and would
like to thanks Madan Bahadur Chalaune, Sangita Verma,
Ashish Jha, Binita Thakur, , Sujita Shrestha for their kind
co-operation and support during internship period despite
of their busy schedule. Also I would like to thanks the
operation in charge Deepa Paneru for placing me in
different department and providing me proper guidance in
the initial days of my intern.

Finally I would like to give sincere thanks to my parents,

my teachers, friends and seniors for making this study
esteemed by providing consistent encouragement, support,
and congenial atmosphere to complete it.

Sunam Chaurasiya

August, 2023

ABBREVIATIONS
BBA : Bachelors of Business Administration
NRB: Nepal Rastra Bank
ABBS: Any Branch Banking Service
CSD: Customer Service Department
NBL: Nepal Bank Limited
IME: International Money Exchange
ATM: Automatic Teller Machine
KYC: Know Your Customer
LC: Letter of Credit
SMS: Short Message Service
CEO: Chief Executive Officer
BOD: Board of Director
TU : Tribhuvan University
 ABSTRACT

As per the requirement of Tribhuvan University course under BBA program this
report is designed according to the knowledge gained on field base experiences.
The main aim of the 8 weeks internship program is to provide internee an
opportunity to implement their theoretical knowledge practically. Out of the
various area or sector for internship, I choose banking sector, more specifically
customer service department of Nepal Bank Ltd, Birta branch. This is the world of
economy, competitive service oriented product. The world is getting smaller an
smaller in terms of globalization due to the development of technology. Among
the various business firms banking plays very important role in an economy by
providing various services like: payment system, deposit, loan etc. but it is not
easy to cope and function in the changing globalized environment. This is only
possible with the help of sound planning. Also Nepal Band Ltd. is the pioneer of
banking in Nepalese history as well as one of the leading banks in Nepalese
environment with many branches all over the country.
Customers are the important element of any kind of business and it is important
in banking too. Banking service is for the customer so customer service
department plays an important role for day to day operations of bank. Main
objectives of this report, is to understand various aspects of customer service,
NRB reporting and overall operations of Customer Service Department of NBL.
Although this report is the outcome of 8 weeks experiences in CSD of NBL, I have
mentioned all the important information as far as possible. This report is basically
based on secondary data; also it’s an outcome of various experience, interaction
and analysis during internship periods. Finally this report is the short and sweet
outcome of continuous effort of 8 weeks program which will be beneficial for the
understanding mechanism of planning.
 TABLE OF CONTENTS

CHAPTER I……………………………………………………….1
INTRODUCTION…………………………………………………1

1.1.Background of the study………………………..1

1.2.Objectives ……………………………………...
1.3.Methodology…………………………………….
1.4.Sources of data …………………………………
1.5.Selection of the organization …………………..
1.6.Duration ………………………………………..
1.7.Activities ………………………………………
1.8.Limitation ……………………………………...
1.9.Introduction of banking industry………………
1.9.1. Meaning of bank ………………………….
1.9.2. Origin of bank …………………………..
1.9.3. Modern banking ………………………….
1.9.4. Function offered by bank ……………….
1.9.5. Role of bank ……………………………
1.9.6. Meaning of commercial bank …………
1.9.7. Function of commercial bank …………..
1.9.8 History and development of commercial bank in Nepal ………..
1.10 Introduction of Nepal Bank Limited ………………………….
1.10.1 History …………………………………………..
1.10.2 Introduction ………………………………..
1.10.3 Shareholding composition ……………….
1.10.4 NBL Network overviews …………………….
 1.10.5 Objectives ……………………………………………………
1.10.6 Vision………………………………………………..
1.10.7 Mission ………………………………………..
1.10.8 SWOT Analysis ……………………………….
CHAPTER II……………………………………………………………
REPORT ABOUT INTERNSHIP EXPERENCE …………………….
2.1 Activities performed in the organization ……………………..
2.1.1 Customer Service Department ………………………….
2.1.2 Remittance Department ……………………………….
2.1.3 Clearing Department……………………………….
2.2 Problem faced during internship …………………………
CHAPTER III …………………………………………………
SUMMARY, CONCLUSION AND RECOMMENDATION ………………….
3.1 Summary ……………………………….
3.2 Conclusion …………………………….
3.3 Recommendation ……………………..
BIBLIOGRAPHY ………………………………………………..
 CHAPTER I

INTRODUCTION
1.1 Background of the Study
An internship is a study program for the students which are carried out in an organization to
meet the requirement of the study in colleges or universities. This report is submitted to fulfill
the requirements for the completion of the degree of “Bachelor of Business Administration
(BBA)” under faculty of management, Tribhuvan University. BBA is a four year undergraduate
program in which emphasizes on managerial skill required for the middle level manager.
Apart from management and its allied courses, BBA gives thrust on information technology
also.
Interns are usually college or university students to gain various skills, knowledge and learning
experiences on different aspect of organization’s environment. Internship also helps students
to know how different activities in the organization are coordinated so that the synergistic
effects are achieved and how communication takes place in corporate world. Students are
involved as non-paid authentic employees receiving academic credits for work experiences.
This will support the students to acquire social, technical and communications skills to work
effectively in industry. Today, many organizations are cooperating with the educational
institutions to provide the internship service with the specific benefits to their students.
An internship provides the student with a greater understanding of organization’s work
environment with educational qualifications. Hence in this frenetic financial environment, the
roles of commercial banks are unavoidable. The report focuses on over all banking activities
concerned with its major functioning departments of Nepal Bank Limited.
Through internship an individual can explore the working process of an organization being a
part of the actual working environment. Here every students receives practical knowledge
through observation and develops academic credit for the work experiences as well. An
internship will help the individual to expose to the interpersonal relationship, which is the
demand of every job, both with the boss, co-workers, supervisors and the other lower level
staff members who are the first basic things for a bank to obtain successful and contented
career. It assists the students to identify potentiality and area of interest. Internship is the
necessary medium for enabling employers to persist students to work in up to date
competitive business environment. Internship is seen as the major way to enhance and
support the internee’s banking careers well.
As we know that, an internship is the way of learning managerial activities by practically doing
it, therefore it provides an opportunity for learning as well as developing the managerial skills.
It gives a direction and provides ideologies for the practical problems. Every single activity
that takes places daily is simultaneously observed and analyzed. Any usual problems and the
underlying causes or drawbacks are closely monitored, understood .The potential solutions
can be determined that certainly enhances the effectiveness and the strength, minimizes the
weaknesses that helps to maximize the profit and the growth rate.
An internship acts as a medium that ables an individual’s to work in group, manage work
pressure and analyze the lessons learnt in class and on the field. It can be remarkable way of
determining if the industry and the banking career is best suited or not for him or her. It
makes an individual more concerned about the options and opportunities one can get both
physically and mentally. A successful internship student has developed characteristics, which
are the essentials of the Modern commercial world. This whole internship process ables a
student to experience and gives exposure to the working pressure that a internee is likely to
face in the futureby making them familiar with the corporate cultures and also by
understanding the primitive knowledge of the business settings of the international
standards. It also helps to develop the professional working habits and creates a platform to
create differences in the work style. Thus, it makes the internee’s mind pre-prepared to
pursue the career in the banking field in the future.
Tribhuvan University offers a course for the BBA faculty, which is the best way to learn and
gain the knowledge regarding the corporate environment and culture. This way any individual
can obtain the maximum knowledge from a business world. They have the right to learn and
make the things more transparent. This internship was carried on in the branch office of the
Nepal Bank Limited at Birta Branch. The internship program was for Eight weeks, which
started from……. and ended on…….. in which the internee was placed in different
departments like Remittance Department, Customer service department (CSD), Bills
Department, clearing.

1.2 Objectives
During the internship period, the main aim is to gain and explain about the knowledge
experienced during the banking operations through observation, interaction. Likewise, the
other specific objectives are as follows:
a) To have a work experience on the bank.
b) To be familiar with the principles, manuals, provision, guidelines, regulations of the
operational activities.
c) To perceive broader knowledge by involving own self in the situation and work
environment.
d) To observe the policies and the regulations in the financial sector.

1.3 Methodology

Methodology is the description of the procedure followed while collecting the necessary data
and information needed for research work and report preparation. Various data were
collected by observation, making inquiries with concerned staffs, quantitative data collected
from the past records. The following methodologies are used in this study.

1.4 Sources of Data

For the information of the various departments, personal interviews were taken and inquiries
were made. Information was collected by observation and formal group discussions with
every related member of the organization. Regular communication and consults were made
with the staffs and the costumers for the reliability of the data. The books, magazines,
newspapers, journals and the past records obtained all the formal and the quantitative data.
There were formal group discussions, observation, personal inquiries as the source of the
primary data, and for other secondary data past records were referred. Consulting with the
staff members and costumers were the other source of reliable information. Data was
collected by various means and mediums such as direct interviewing, enquiring with the
staffs. The previous bank records were referred for the relative data and information.
 Information were collection from the official website www.NBL.com.np
 Different books of journals and magazines, newspapers, bank profiles, regular manuals
 of the departments, annual reports were gathered for the preparation of the report.
 Information gathered from the related staff members were thoroughly studied and
hence recorded for creating better understandings with the bank and the banking
transactions.

1.5 Selection of the Organization

I choose bank as organization for internship with regarding bank as one of the service industry
where I can gain various knowledge about general management concepts. With the aim of
implementing my knowledge that I gained in college by doing internship in the organization
that is related to management field, I chose NBL as organization for internship program. Due
to the support of my college I was able to join Nepal Bank Limited for internship.

1.6 Duration
The duration of the prolonged internship was of 6 weeks, started from …. to the date……. In
the course of the internship period, the intern worked on the different departments,
performed activities. All the factors such as discipline, attendance, regularity, interest towards
the work, sincerity, behavior, and the efforts that she made to understand the banking
functions were closely monitored.

1.7 Activities
During the entire internship period of eight weeks, the intern had a time to visit the four
different departments like Remittance, Customer Service Department, loan Department and
clearance. In the course of the internship, I spent equal number of days in every department.
The activities performed on these departments are as given below in table.
S. No. Department Activities performed

1 Customer service department Preparing balance certificate, opening and

closing accounts, cheque printing, statement
printing, handling telephones
 2 Remittance Department Preparing IDT, IBT, cheque deposits, data
entry

3 Letter of credit Studied the different types of loans and loan

files of the customers.

1.8 Limitation
There are several limitations that hindered the proper analysis of this study. These are:
 Difficult in analyzing the information obtained from respondent due to the qualitative
nature of information.
 Another limitation to this study is the lack of statistical data. Report is mainly based on
the secondary data.
 The experience obtained is limited.
 The deep comprehensive analysis and study couldn’t be done due to time constraints.
 Time limitation and busy schedule of the staffs also prevented internee from learning
time to time.

1.9 Introduction of Banking Industry

1.9.1 Meaning of Bank

A bank is a type of financial institutions that are established under a certain act to
perform monetary and credit transactions. The bank accepts the deposits in the form of
capital and collateral, formulates, and implements monetary and foreign exchange
policy to maintain price and balance payment stability for a sustainable development of
the country. It provides necessary liquidity for promoting the stability of the financial
sectors. It raises funds by collecting deposits from business and consumers through
 saving gio sits, time deposits. Besides this, it gives facilities to business like giving loans
to business, housing, saving deposited money, buying and selling of bonds etc.

It also helps to develop a safe, sound, and efficient payment system. Bank helps in making
regulations, inspection, supervision, and maintaining the sound development of the banking
system. According to the American Law bank has been defined as “Any Kind of institution
offering deposit subject to withdrawal on demand and making loans of a commercial or
business nature is a Bank"
The bank regulation of India defines it as a means of accepting for the purpose of leading or
investment of deposit of money from the public repayable on demand or otherwise able by
cheque, draft or otherwise.

1.9.2 Origin of Bank

Actually, the word “Bank” has been originated from the Latin word “bancus”; Italian word
“Banca” and a French word banque; which all refers to the Bench. Jews, the early bankers, in
Lombardy, used to transact their business at benches in the market place. In the history of
origin of banking in the world, “The Bank of Venice”, was the first, which was originated in
Venice of Italy in the year 1157 A.D. In addition, the first central bank which was established
in 1844 A.D. was “The Bank of England”.
Bank is a financial intermediary accepting deposits and granting loans and also offers the
variety of services like conversion foreign currency into domestic currency and vice versa,
lending money, saving deposits etc. Even if we look at the past, banking concept is found. In
the ancient period, this concept existed, when goldsmiths and the rich people used to give
money to the common people against the promise of safekeeping their valuable items on the
presentation of the receipt, the depositors would get back their gold and valuables of the
paying a small amount for safekeeping and saving.

1.9.3 Modern Banking

Merchants, Goldsmiths, moneylenders are known as the ancient bankers. Development of
modern banking in the 15th, 16th and 17th centuries gradually shifted the Centre of the
world commerce from the Mediterranean region towards Europe and the British isles, where
banking became a leading industry. During third initial phase of modern banking development
Industrial Revolution was developed, which demanded a well-developed financial system.
Modern banking was developed to provide new methods of making payments and credit
available, which were required as economy of various countries adopted mass production.
At previous times, banks functions were limited. They only accepted deposits of money or
valuables for safekeeping and verifying coinage or exchanging one jurisdiction’s coins for
another’s. Various banks were developed as modern banks such as Medici Bank of Italy and
Hochstetler Bank in Germany.
Now bank has become a known place for every people and it also offers wide variety of
services than before.

1.9.4 Functions Offered by Bank

There are various functions provided by the bank. They are as follows:

Deposit function
Accepting deposits is the primary function of the bank. The most important fund of the banks
is deposits. Without deposits, it would be difficult for the bank to invest high return sectors.
The main objective of the bank is to collect deposits in as lowest cost of fund possible. If the
bank is able to collect deposits at the lowest cost it leads the bank to earn a huge amount of
fortune.
Providing loans
This is the other function of a bank. It provides loan to a customer, company or institution.
Bank is able to gain benefit by giving loans and charging them with some amount of interest
rate to a customer as per the law and banking policies, terms and conditions. It provides loans
by accepting the security of a debtor.
Credit function
Bank provides credit to the deficit customers such as hire purchase loan, real estate loan,
leasing of the fixed assets, working capital loan and other long term loans. The interest rate
charged to the loan amount and the interest provided to the depositor’s difference leads to
the profit of the bank.
Payment function
The bank provides various payment facilities to the costumers to make the economy efficient
and effective. If the payment facilities were not developed it would be difficult for the
costumers to transfer the money from one place to another. Some of the payment
instrument is as cheques, bank overdraft, online various banks also provide payments.

Trust function
The most important function of the modern bank is to maintain credibility towards the
depositors as well as towards investors. If the bank fails to maintain the credibility, it becomes
difficult for the bank to attract depositors as well as investors to purchase their security.
Investment function
Bank uses the surplus amount of money at the profitable area where the return on
investments is high. Bank also invests a huge amount of money in government securities and
bonds, as it is a 0% risk free investment.
Cash management function
It is necessary for the bank to manage the cash collection and cash disbursement to retain its
position in the markets well as credibility. If the cash management leads to deficit rather than
surplus it would be difficult for the bank to manage its environment effectively.
Insurance function
Another important function the modern banks play is insurance function. Bank provides loans
and advances to various sectors as a result of the assets or the loan amount should be insured
and various collateral must also b taken under bank’ eye. In case of providing loans to
purchase a car, it is necessary that the vehicle is insured so that the risk of not recovering the
money is low.
Underwriting function
It is necessary for each bank to issue public shares in the marketplace. Banks has the right to
under right the various securities such as common stock, preferred stock, or debentures. It is
necessary that legal bank be listed in the stock market o that the interested investors can
invest a huge amount of money in the bank by purchasing various securities.
Brokerage function
A modern bank also plays an important role as a broker for the necessary clients. Banks earns
a non-operating income acting as a broker. as a broker banks helps the client to purchase and
sale various securities of the banks as well of different banks. Banks may charge some
percentage of commission or may even some amount of rupees with difference between the
selling and purchasing price.

1.9.5 Role of Bank

The various roles played by the banks are as follows:
 Intermediation Role It transforms saving received primarily from households into
credit (loans) for business firms and others in order to make investments in new
building, equipment’s, and other goods.
 Payment Role
It carries out payments for goods and services on behalf of their customers such as
issuing cheques, wiring funds, providing a conduit for electronic payment and
dispensing currency and coins.
 Guarantor Role
Bank Stands behind their costumer to pay off costumers debts when those customers
are unable to pay such an issuing letter of credit.
 Agency Role
Bank acts as an agency on behalf of the costumer to manage and protect their property
or issue and redeem their securities usually providing through the bank trust
department.
 Policy Role
It also serves as a conduit for the government policy in attempting to regulate the
growth of the economy and pursue social goals.

1.9.6 Meaning of Commercial Bank

Commercial Bank is the major sector for upgrading country economy. It is the oldest form of
the bank. It is defined as "A commercial Bank is the one which exchanges money, accepts
deposits, grant loans and performs commercial function and which is not a bank meant for
cooperative, agriculture, industries or for such purpose" according to the commercial Bank
Act.
In general, bank that performs all kinds of banking business and generally finances trade and
commerce is called commercial bank. Commercial banks are financial intermediaries that
accept deposits from the members of the public who do not have intermediates use foe funds
(savers) and lending such funds to those requiring funds for investment (borrowers). It also
transfers fund from one costumer to another and provides other services such as offering
advice on a wide range of matters relating to finance.
It has also been defined as “Commercial bank is a financial institution that operates currency
exchange, money transactions, accepts deposits, advances loans and performs other
commercial transactions which is not specifically established with the objective of
cooperative, agricultural, industrial or any other such kind of specified purpose.” according to
the Commercial Bank Act 2031, section 2(a).
They are those banks, which gathers altogether the scattered savings of the community and
arrange for their productive use and generate profit. They accept deposits from the public
and use the money to help the community by making loans to individuals, organizations,
governments and business. Commercial banks, acquire funds from group of surplus spending
units and making these funds available to the deficit units facilitating the effective
mobilization of resources, which in return leads to sound economic growth of the country.
The main aim of the commercial bank is to earn profit like any other business entity. It lends a
certain percentage of the cash lying in deposits on higher interest rate than it pays on such
deposits. The difference on interest on deposit received and loans advanced are the main
source of its income. Thus, commercial banks are merely a business firm engaged in financial
intermediation as well as perform additional functions under strict supervision and control of
the central bank.

1.9.7 Functions of Commercial Bank

a) To accept deposits
b) To provide loan and advances
c) To provide general utility functions
d) To provide overseas trading services
e) To provide information and other services
f) To provide investment facilities
g) To provide remittance facilities
1.9.8 History and Development of Commercial Bank in Nepal
At the early stage, zamindars were known as banks, the focus was more on lending money
against securities like land and ornaments, which could be redeemed if the loan wad
defaulted. Tejarath Adda, established in 1933B.S at the time of Prime Minister Ranoddip
Singh, is taken as the first step for the development of institutional banking system. Nepal
Bank Limited Came in Nepal as the first ever-commercial bank of Nepal. The government
incorporated Nepal Rastra Bank (central Bank) along with Rastra Banijya Bank and
Agricultural Development Banking 2024 B.S. FDI in the banking sector, through joint
venture banks, the first being Nepal Arab Bank Limited now NABIL Bank. Nepal Bank
Limited was established on 30 Kartik 1994 B.S., the first bank of Nepal. Banking terms
started in two senses, with its establishment. It conducts dual function of both commercial
and central bank. In order to allow Nepal Bank Limited to concentrate on commercial
features, on 14 Baishakh 2013 B.S., Nepal Rastra Bank was set up under Nepal Rastra Bank
at 2012 B.S. as the central bank of Nepal. This act has been repealed and Nepal Rastra
Bank act 2058 has been in an act by the parliament. It is regarded as the apex body of the
monetary and the banking structure. Rastriya Banijya bank was set up as the fully
government owned commercial bank in 2022 B.S. with its establishment banking services
spread to both urban and rural areas. Agricultural development bank was established in
2024 B.S. for the upliftment of the agricultural sector.

Government formulated liberal economic policy to accelerate countries growth and

development. Government encouraged foreign investment and participation of private sector
in the banking sector. The government then applied the policy of “Joint Venture Banking”.
This was a great significant event. Healthy competition prevailed and people were offered
valuable services and national as a whole begun to take benefit.
Commercial banks should operate under the Commercial Bank Act 2031, Nepal Rastra Bank
Act 2058. Company Act 2053 and Contract Act 2056. Nepal Arab Bank Limited (NABIL) is the
first bank established in joint investment in Nepal in 2041 B.S. A year later Nepal Indosuez
Bank Limited currently renamed as Nepal Investment Bank Limited was set up, with passage
of time several other joint venture and private bank has been established.
After the restoration of democracy in Nepal, there has been tremendous development in
banking sector. Rural development banks are formed for all development banks under the
control and supervision of Nepal Rastra Bank. These banks includes
a) Eastern Rural Development Bank
b) Central Rural Development Bank
c) Western Rural Development Bank
d) Mid-western Rural Development Bank
e) Far-western Rural Development Bank

Nepal Industrial Development Corporation (NIDC) and Agricultural Development Bank (ADB)
were only two development banks to be established before the enactment of Nepal
Development Bank Act 2052 B.S. After the introduction of Nepal Development Act 2052 B.S.,
many development banks were set up. Nowadays it has also been one of the attractive places
for employment, investors etc.

1.10 Introduction of Nepal Bank Limited

1.10.1 History
Nepal Bank Limited, The first bank of Nepal was established in November 15, 1937 A.D
(Kartik, 30, 1994). It was formed under the principle of Joint venture (Joint venture between
govt. & general public). NBL's authorized capital was Rs. 10 million & issued capital Rs. 2.5
million of which paid-up capital was Rs. 842 thousand with 10 shareholders. The bank has
been providing banking through its branch offices in the different geographical locations of
the country.
The history of Nepal Bank ltd is very old. It is the first bank of Nepal. His Majesty King
Tribhuvan inaugurated Nepal Bank Limited on Kartik 30,1994 Bikram Sambat. This maarked
the beginning of an era of formal banking in Nepal. Until then all monetary tractions were
carried out by private dealers and trading center.

Then Prime Minister Maharaja JuddhaShumsher J.B.R. speaking on the occasion with the kind
permission of His Majesty the King stated this work which is being done in the larger interest
of the nation is a great moment for me. Until today a bank could not be opened in Nepal.
Therefore this bank, which is being established under the name of Nepal Bank Limited to fill
that, need and to be inaugurated by His Majesty the King, is a moment of great joy and
happiness.

The Bank's objectives to render service to the people whether rich or poor and to contribute
to the nation's development will also need the support and best wishes of all, which I am
confident, will be coming. In that era, very few understood or had confidence in this new
concept of formal banking. Rising equity shares were not easy and mobilization of deposits
even more difficult. This was evident when the bank floated equity shares worth NRs.
2,500,000, but was successful only in raising NRs. 842,000.

"In the absence of any bank in Nepal the economic progress of the country was being
hampered and causing inconvenience to the people and therefore with the objective of
fulfilling that need by providing service to the people and for the betterment of the country,
this law in hereby promulgated for the establishment of the Bank and its operation"

The total deposits for the first year was NRs. 17,02,025 where current deposits was about
NRs. 12,98,898 fixed was about NRs. 3,88,964 and saving was NRs. 14,163. Loan disbursed
and outstanding at the end of the first year was NRs. 1,985,000.

From the very conception and its creation, Nepal Bank Ltd, was as joint venture between the
government and the private sector. Out of 2500 equity shares of NRs. 100 face value, 40%
was subscribed by the government and the balanced i.e. 60% was offered for the sale to
private sector. There were only 10 shareholders when the bank first started.

1.10.2 Introduction
Nepal Bank Limited, The first bank of Nepal was established in November 15, 1937 A.D
(Kartik, 30, 1994). It was formed under the principle of Joint venture (Joint venture between
govt. & general public). NBL's authorized capital was Rs. 10 million & issued capital Rs. 2.5
million of which paid-up capital was Rs. 842 thousand with 10 shareholders. The bank has
been providing banking through its branch offices in the different geographical locations of
the country.

Network for inclusion: Use bank's network to increase its reach all over the country from
urban areas to rural areas and help in improving the lifestyle of rural population and in turn
become the bank of choice of corporate, medium businesses and rural market.
Enhancing the value: To employees, shareholders, government and customers
World class banking services: Provide world class banking services by achieving excellence in
customer service and adopting high level technology standards.
Segmented business approach: For risk management and enhancement of efficiency.
Partnership: With all stakeholders including the Government, employees, shareholders and
customer.
Innovation: Of business areas and processes for providing Advanced banking services, and
enhance competitiveness.
Responsiveness: responding to the changing need of the market/society/business on timely
basis.
Integrity: Uphold trustworthiness and business ethics in the business process.
Total banking solutions: To cater the need of all sections of society.

1.10.3 Shareholding Composition

S.N Ownership Percent

1 Government of Nepal 38.60

2 General Public 61.40

Total 100

1.10.4 NBL Network Overview

 Region wise branches No of Branches

Kathmandu Region 28

Biratnagar Region 28

Birgunj Region 19

Pokhara Region 21

Nepalgunj Region 16

Total no of Branches* 118

1.10.5 Objectives
Nepal Bank Limited has the following objectives.
 Focus on building the positive net worth and meeting minimum capital requirement
over the coming five years.
 Focus on increasing the customer base and market share.
 Maximize the potential/efficiency of bank's staff.
 Focus on minimizing the risk associated with the business.
 Focus on providing the world class business solutions.
 Focus on increasing the sustainable profit.

1.10.6 Vision

“Pioneer bank with complete banking solution” Nepal Bank Limited holds of a vision
to become a Leading Bank of the countryby providing premium products and
services to the customers. It ensures attractive and substantial returns to the
stakeholders of the Bank.
 1.10.7 Mission
Nepal Bank Limited seeks to provide an environment within which the bank can bring
unique financial value and services to all customers. It will be a sound institution where
depositors continue to have faith in the security of their funds and receive reasonable
returns; borrowers are assured of appropriate credit facilities at reasonable prices;
other service- seekers receive prompt and attentive service at reasonable cost;
employees are paid adequate compensation with professional career growth
opportunities and stockholders receive satisfactory return for their investment.

1.10.8 SWOT
SWOT analysis of the bank is to evaluate the Strength Weakness Opportunities and Threats
involved in its business operation and identifying the internal and external factors that are
favorable and unfavorable to achieve bank’s objectives. Further major weakness of the bank
where bank has to work on for the improvement to increase the operational efficiency and
hence increase profitability has also been analyzed.
Strength:
 Government ownership
 Large branch networks
 Government transactions
 Physical resources
 Composition of deposits

Weakness:
 Over staffing
 Weak automation
 Work culture
  Low brand recognition
 Low staff morale
 Minimal product line

Opportunities:
The opportunities in the bank’s SWOT analysis is considered to the area where the bank has
room for growth or could take advantage of opportunities in the market place.
 Possibility to capture growing remittance business
 Growing banking business
 Banking deregulation

Threats:
 Harsh action by NRB
 Recession
 High competition
 Trade unions

Political instability
 CHAPTER II

REPORT ABOUT INTERNSHIP EXPERIENCE

As prescribed by the faculty of management Apex College, the duration of internship has
been 6 weeks. Most of the time internship period has been spent in loan and customer
service department and also have been placed in pension and remittance department.

2.1 Activities Performed in the Organization

2.1.1 Customer Service Department
For any banks are valuable assets. keeping this in mind, NBL tries to give best to its customers.
This department is the sensitive part of a bank as it interacts directly with the customers.
People come for various enquiries about banks, its new services. Thus it should be efficient,
clean and effectively handled by the employees of the bank. This department creates an
impression of the bank towards its customers, better services, they will come for the services
again and we are a part of the bank. Here the internee carried out the following activities:
a) Counseling the customers
b) Interacting and communicating with existing and new clients
 c) Opening of new account for the new clients
d) Making of cheque book and issue of cheque book to existing and new clients.
e) Printing of financial statement for clients
f) Scanning of account holders photos and signatures
g) Checking account holders customer balance
h) Checking account holders photos signatures
i) Handling telephones and use photocopy machine for customers’ ease.

Analysis of the Activities in Customer Service Department:

Customer counseling
As we know that a bank performs well when their customers are satisfied. So, in this
department an internee tries provided by the bank to its new and existing customers. They
try to solve enquiries, questions and doubts the customers are having.
Account opening
There are various kind of account opening facilities given by the bank like, saving a/c , current
a/c , Mahilabachatkhata, Sajilobachatkhata, fixed saving, diamond saving, nepallaxmibachat
etc.
Here, an internee helps the customer by explaining about the types of services they need like
various types of service they need like various types of account opening facility, advantage
behind the particulars account, fill up their forms who are unable to do so.
Statement printing and issuance
Statement includes the information like day to day transaction amount, balance, interest
charge etc. it is free of cost. It is a frequent and regular activity done in the bank with the help
of software given by the authority. Statement issuing is done in the concerned bank only
where an account holder has opened an account. For that customer should provide their
related account number.
Balance checking, scanning and photocopy
An internee was also allowed to check the balance asked by the customer under the
supervisor’s authority. An internee also learned to scan the forms before keeping the records
of new account holder or filing them along with some other important documents. Similarly,
photo copy was to be done frequently in the department, to provide ease to the customer.
Internee also learned how to contact with the customers through telephone

2.1.2 Remittance Department

Remittance can be defined as the transfer of money from one place to another that may be
from bank to bank or from country to country. The department of remittance deals with the
management of the remitted money, which is sent by the migrant workers from abroad or
within the country as well. Nepal Bank receives remittance through swift code. NBL is the
pioneer in the field of retail money transfer business with over 11years of customized services
delivery experience in the field. It has the largest network covering all major cities, towns and
villages of the country and is capable of paying at more than 200 locations across Nepal. The
bank enjoys the strategic with the lending remittance companies like Xpress Money,
MoneyGram etc. In this department, the internee learned the following task:
a) Helped in remittance payment by using the concerned software according the RAD
digit.
b) Helped in Account enquiry and preparing the statement.
c) Observed in preparing demand draft and fund transfer.
d) Observed foreign currency exchange(purchase and sell)
e) Learned to keep records of various drafts.

2.1.3 Clearing Department

In this department customers bring checks of different bank and they fill a voucher to credit
their account by the amount specified in the check and by debiting the amount in the check
of the specific bank. After receiving different checks they are given the specific OBC number
and recorded in the register and later they are recorded in the computers as well and after all
the checks are recorded the final print out is printed, 3 pages of each banks are printed and
vouchers are attached with single page of the specific bank and 2 pages are attached with the
checks and the checks are passed to the next step where they are checked that all the checks
and vouchers are in order or not and then again they are entered in the excel sheet in the
next step and final print out is made. The printed papers of all the checks along with all checks
are taken to Nepal Rastra Bank the very next working day for the clearance.
In NRB, there are different counters of different commercial banks and they are given their
checks and Nepal Bank receives its check and then the advice is prepared by debiting and
crediting the amount and the balance of different banks at NRB are debited and credited on
the basis of advice. If the checks are dishonored then they are returned to the NRB by 3:00
PM in the evening of same day and again advice is prepared and balance of Dr. and Cr. should
be same and informed to NRB.
Outward Bills for Collections
There are some cheques that are drawn by a Non NBL account that is outside the city area in
favor of NBL account holders and thus are treated as OBC’s. The process for clearing of the
OBC’s is as follows:
a) Cheques receives by NBL.
b) The officer affixes the OBC stamp on the cheques and writes its individual number from
the OBC register.
c) Entries of all OBC cheques are written in an OBC register.
d) An OBC letter is printed, which shows the cheque numbers, the branch drawn on and
amount.
e) Original Cheques are attached to these letter and sent to the main NBL branch in that
area by courier
f) When that area branch clears the amount from the Non-NBL branch, it sends an Inter
Branch Credit Advice (IBCA) to NBL and the officer at the branch credits the customer
account with that amount.

Inward Clearing
Inward clearing takes place when a KBO account holder draw’s a cheque in favor of a Non-
NBL account holder. The process for inward clearing is as follows:
 Cheques are received by the operations department.
  The bank officer verifies all particulars from the instruments and the system for
sufficient balance etc. If any fault is found, then the officer will mark the cheques as a
return, stating the reasons with them.
 If no fault is found, then the officer will post these cheques in the system by debiting
the customer account.
 The particular of the returned cheques are entered in the ‘O/W return of inward
clearing’ register and returned.

Letter of credit:
Letter of Credit means a party of a country wants to do trade with the other party or
organization of the other country and they cannot trust each other that one party will pay the
amount for the goods and the other party will send the appropriate goods after receiving the
advance payment for the goods. So both the parties contact the Banks of their own country
and both the Banks guarantee for their party. Beneficiary party sends the Performa invoice to
the applicant party and by taking the invoice the applicant goes to the Bank and on behalf of
the invoice the Bank opens the L/C for the applicant party. L/C can be opened of Import or of
Export by the company.L/C can be opened under Limit or can be opened by paying the 100%
amount mentioned in the Performa Invoice to the Bank. After opening L/C the insurance of
the goods should be done and the insurance can be done by the applicant or by the
beneficiary under mutual understanding of both parties. Insurance should be done 110% of
the goods so that in case of any damage the 100% return is gained against the goods.
Whereas 10% is used to compete the other charges while inspectinggoods.
Parties under L/C are given below:
 Applicant: The person or party who wants to import the goods from the other country.
 Beneficiary: The party which sends the goods to the Applicant and receives money for
it.
 Issue Bank: The Bank which opens the L/C on behalf of the Applicant.
 Advisory Bank: The Bank which sends the documents to the Issue Bank that goods have
been send from here and receives payment from the Issue Bank.
  Reimbursing Bank: Bank which have the Issue Banks Dollar account.
 Conforming Bank: Bank which works as a mediator between the beneficiary and Issue
Bank in case if the beneficiary does not trust the Issue Bank.

Generally L/C is opened at Sight or at Usance. If the applicant party does pay the money
within 5 working days of receiving the documents then it is at sight L/C and in case of Usance
L/C the applicant is provided maximum of 180 days of credit limit. Bank deals with the
documents send by the beneficiary bank rather than the goods send by the party to the
applicant party. If the commercial invoice send by the beneficiary party does not match with
the Performa Invoice which was send in the opening of L/C by the beneficiary party then the
Issue bank is not liable to pay the amount to the beneficiary bank. But if the Applicant and
Beneficiary party wants then the amendment can be done by the bank. Now days L/C is of
irrevocable nature means if and only if both parties agree to discontinue or close the L/C then
only it can be closed otherwise by the single party either by Applicant or by Beneficiary party
it cannot be closed. Documentations required are given below.
a) Covering
b) Commercial Invoice
c) Bill of Lading, Airway or Transport Bill
d) Quality Certificate
e) Insurance Document

If the documents are not acceptable then it is returned to the beneficiary bank by the issue
bank and if the documents are fulfilled then Applicant is provided the documents and
Applicant party can clear the goods from custom with the help of those documents. And on
the basis of documents the issue bank swifts the amount to the beneficiary bank and the
beneficiary gets the money for its goods.

2.2 Problem Faced During Internship

While carrying out the task assigned by the supervisor, the internee faced different types of
problems. They are as follows:
a) Some of the customer disagrees to accept the charges for account closing and make
 argument on this matter for long time. So, it becomes difficult to convince them about
the bank’s charges.
b) Though the instructions and required documents are clearly explained in the account
opening form, even then customers ask those for time to time and reasons for extra
documents that are already sated in back side of the form. So, it is tough to give them
each and every guideline on filling different types of form as well.
c) The accountholder’s relation asks for the chequebook without bringing the letter of
authority and citizenship with accountholder’s valid signature and account number.
d) When the customers lost their chequebook and request for new one, in this case it is
difficult to find out all the used and unused cheque, valid signature and account
number from their record on the computer carefully.
e) Failure to remember the reference number on the remittance services such as Money
gram or Express money or Cash instant as the customer presented the form of different
reference number.
f) Sometime customer came to take the money but bank unable to give the payment due
delay of information in the bank website.
g) Quite confusion in inward and outward clearing bills while keeping the record in the
computer.
 CHAPTER III

SUMMARY, CONCLUSION AND RECOMMENDATION

3.1 Summary
Internship done under the requirement of PU to complete BBA has been proved
as an effective way of studying. It helps to get broader knowledge about the
working as well as banking environment. This report is based on the banking
operation of Nepal Bank .Internee selected this particular bank as it is one among
many reputed Organization. As we know that bank is place where financial
activities are carried out. NBL was established in November 1937. It offers various
services like remittance, loan, deposit products etc. The main thing was that
interne was able to learn about the various activities carried out in different
department. In remittance department internee learned to make demand drafts,
balance certificates. In clearing department internee learned about dealing with
customers, counseling them, balance checking, statement printing and so on.
During these period of internship many problems were faced by the internship
and they were also solved. Thus internee now can really understand about the
banking scenario in general.
3.2 Conclusion
Nepal Bank limited culture is built on a set of core values: client focus, teamwork,
meritocracy, ethic & integrity, pioneering. The company is committed to its
clients' best interests as well as preserving a good relationship by defining realistic
objectives.
Since the establishment of Nepal Bank Limited, it has aimed to become the
leading bank of Nepal by that provides outstanding services to its customers.
The services that Nepal Bank Limited provides have a great market penetration
not only because of their features but also the profit and markup rates that they
charge. Also the products that Nepal Bank Limited provides cater to sector of the
economy.
Furthermore, as the bank is growing, new and more energetic employees are
entering which is sure to invigorate the performance of the bank.
Lastly, to become the leading bank of Nepal, Nepal Bank Limited has to
benchmark its services to its major competitors in the industry or the market
leader in the industry and provide a continuous mean of improvement in its
existing products and services, while introducing new ones to the industry.
3.3 Recommendation
NBL should concentrate on better logistics like better maintenance of printer,
good paper quality for cheques, good UPS and the like.
 Information should be timely conveyed to customers regarding any change
in regulations.
 Training needs to be provided to employees regarding use of the system and
computer skills also needs to be brushed upon.
 Try to do better in giving services like instant ATM cards, etc. It will be better
if the bank follows new network that will also be used outside the country.
 The good communication flow between bottom to top as well as top to
bottom level, staffs etc.
 New products are necessary as there is growing competitive market.
 More number of computers are needed in the customer service department
so that there will be no rush inside the department
 Sometimes refreshment programs for the employees can be carried out to
motivate the employees.
  The provision of job rotation has to be made to make the employees familiar
with the works and to make the work done if anyone is absent.

Nepal Bank has been giving its best services toward its customers. It always thinks
of new and better way of serving its customers. Its hard work and banking
facilities has able the bank to survive as one of the leading banks of the nation
despite of rapid increase of number of banks and tough competition in the
Nepalese banking environment.
 BIBLIOGRAPHY

Annual report of Nepal Bank Limited

Shrestha, M.K. &Bhandari, B.D (2008).Financial Markets and Institutions
Kathmandu, Asmita Publication
Nepal Bank Limited. Available <http://www.nbl.com.np//
Website: Available <http://www.google.com// [online]
Website: Available <http://www.wikipedia.com// [online]