Internship Report of Nepal Bank

INTERNSHIP REPORT ON NEPAL BANK LIMITED

Submitted To Apex College, Internship Management Team in the partial fulfillment of the requirements for the degree of Master of Business Administration (MBA)

Submitted By Siddhant Gadal PU Registration No.: 2020-2-22-0079 PU Exam Roll No.: 20220227

July, 2022 Kathmandu

DECLARATION I hereby declare that the internship report entitled “INTERNSHIP REPORT ON NEPAL BANK LIMITED” which is submitted to Apex College, Pokhara University, is my original work done in the partial fulfillment of the requirements for the degree of Master of Business Administration under the supervision of Internship Management Team of Apex College. This report is my own original work and I undertake the full responsibility.

..................... Siddhant Gadal MBA, V Trimester Apex College Pokhara University July , 2022

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ACKNOWLEDGEMENT

I would like to thank a number of people who gave their valuable time in training me, motivating me and teaching me a lot of life lessons during my internship period. The internship opportunity I had with Nepal Bank Limited was a great chance for learning and professional development. Therefore, I consider myself as a very lucky individual as I was provided with an opportunity to be a part of it. First of all, I would like to extend my sincere gratitude and special thanks to Mr. Kul Prasai and all the members of Apex Career Services for their continuous guidance and support during my internship period. I am using this opportunity to express my deepest gratitude and special thanks to the Mr .Harihar Kumar Chaudhary, Branch Manager of Nepal Bank, Baneshwor Branch. I would like to express my deepest thanks to Mrs. Alexa Pokhrel, Mrs. Chandeshwori Kayastha and Mr. Pujan Gyawali who helped me the most by solving all the query and curiosity related to Customer Service, Cash and Clearing Department and for taking part in useful decision & giving necessary advices and guidance. . I would also like to express my thanks to all the staffs of Nepal Bank Limited, Baneshwor branch, who directly or indirectly helped me during the internship program. Lastly, I would like to thank my family and friends for being an inspiration in every step in the completion of this report. I perceive as this opportunity as a big milestone in my career development. I will strive to use gained skills and knowledge in the best possible way. Hope to continue cooperation with all of you in the future.

Sincerely, Siddhant Gadal July, 2022

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ABBREVIATIONS

ATM :

Automatic Teller Machine

CSD

Customer Service Department

:

NBL :

Nepal Bank Limited

FOM :

Faculty of Management

KYC :

Know Your Customer

MBA :

Masters in Business Administration

OD

:

Overdraft

PU

:

Pokhara University

SWOT :

Strength, Weakness, Opportunity and Threats

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Contents DECLARATION i ACKNOWLEDGEMENT ..................................................................................................................................................... i ABBREVIATIONS ............................................................................................................................................................... ii EXECUTIVE SUMMARY................................................................................................................................................... v CHAPTER ONE 1 INTRODUCTION i 1.2 Objectives of Internship .................................................................................................................................. 2 1.3 Selection of Organization ................................................................................................................................ 2 1.4 Internship Details ........................................................................................................................................... 3 1.5Internship Duration ......................................................................................................................................... 3 CHAPTER TWO 5 ORGANIZATIONAL ANALYSIS ...................................................................................................................................... 5 2.1 Establishment ................................................................................................................................................ 5 2.2. Mission and Vision ........................................................................................................................................ 5 2.3 Organizational Structure ................................................................................................................................. 6 2.5 SWOT Analysis ............................................................................................................................................. 7 CHAPTER THREE .............................................................................................................................................................. 9 INTERNSHIP EXPERIENCE............................................................................................................................................. 9 3.1 Internship Activities Performed........................................................................................................................ 9 3.1.1 Customer Service Department ............................................................................................................................. 9 3.1.2 Remittance Department ...................................................................................................................................... 9 3.1.3

Clearing Department .................................................................................................................................. 10

3.1.4 Credit Department ........................................................................................................................................... 10 3.2 Problems Identified ...................................................................................................................................... 10 3.3 Solutions Offered ......................................................................................................................................... 10 3.4 Internship Achievements ............................................................................................................................... 11 3.4.1 Skills Development.......................................................................................................................................... 11 3.4.2Networking Development .................................................................................................................................. 11 3.4.3 Application of Theory into Practice ................................................................................................................... 12 3.4.4 Career Path ..................................................................................................................................................... 12 CHAPTER FOUR 15 CONCLUSION AND RECOMMENDATIONS .............................................................................................................. 15 4.1 Conclusion .................................................................................................................................................. 15 4.2 Recommendations ........................................................................................................................................ 16 4.2.1 Recommendation to Nepal Bank Limited ........................................................................................................... 16 iii

4.2.2 Recommendations to ACS/College/University .................................................................................................... 16 APPENDIX I

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WEEKLY ACTIVITIES PERFORMED AT NBL .......................................................................................................... 17

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EXECUTIVE SUMMARY Nepal bank limited is the first commercial bank of Nepal. It was established in 1937, by Juddha Shumsher which marked the beginning of an era of formal banking in Nepal. In November 15 1937(Kartik 30,1994), the then King Tribhuvan inaugurated Nepal Bank Limited. This marked the beginning of an era of formal banking in Nepal. Until then all monetary transactions were carried out by private dealers and trading center. When NBL was established, it was formed under the principle of joint venture between government and general public. NBL’s authorized capital was NPR 10 million and issued capital NPR 2.5 million of which paid-up capital was NPR 842,000 with 10 shareholders. The bank has been providing banking through its branch offices in the different geographical locations of the country. For the internship I choose Nepal Bank Limited . Applying the knowledge that I have to a real working place was very exciting. The main objective of this internship is also to expose the students to the actual working environment. I had a great experience during my internship. I was placed under different departments such as Customer Service Department, Cash Department, Clearing Department and Credit Department. I was also given a lot of information about different works that is performed at bank. Most of the time, I was involved in Customer Service Department. During the internship period I got chance to get familiar with different activities like opening new account, distribution of cheque books, distribution of ATM card and PIN, opening fixed deposit, collection of cheque value of the same bank, handling customer queries, E-banking and ID distribution, customer due diligence form fill up, KYC form fill up, account activation performed in deposit department. Internee also learned various new things about Credit, Remittance and Clearing department as well. This experience helped me to gain in-depth knowledge about real working environment, interpersonal and communication skills, organizational culture and behavior, professional qualities and team building spirit as well as working principles of commercial banks. The knowledge acquired in course of internship period was relevant and useful to some extent only in the context of the job in the future. v

CHAPTER ONE INTRODUCTION 1.1 Background of Internship An internship is a period of work experience offered by an employer to give students and

graduates exposure to the working environment, often within a specific

industry, which relates to their field of study. “On the job “training is one of the valuable skill and internship is a kind of it. An internship consists of an exchange of services for experience between

the intern and the organization. Internships are used to determine if the intern still has an interest in that field after the real-life experience. In addition, an internship can be used to create a

professional network that can assist with letters of

recommendation or lead to future employment opportunities. In order to expose the students to the actual working environment, internship has been included as a compulsory requirement for the successful completion of the two-year Master of Business Administration (MBA) under Pokhara University and other universities around the world. This opportunity provides students with a chance to work in reputed companies and to get real world experience.

It can be helpful for students to get job opportunities in that organization in future as well. This internship period provides students with an opportunity to apply the theoretical knowledge they have gained through books in a real corporate world and to analyze the several different cases the companies might have issues and problem solving which a classroom cannot provide. After the completion of internship, the students are required to prepare a project report on a topic relevant to the work they were assigned during the internship. This internship report is mainly focused on Nepal Bank Ltd. Corporate office Baneshwor.

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1.2 Objectives of Internship The main objectives of the study are to fulfill the partial requirement of the internship program. Apart from this, the objectives of the study are as follows: ➢ To explore the applicability of theoretical knowledge in practical workplace in different departments at Nepal Bank Limited, Baneshwor Branch. ➢ To increase proficiency in several business disciplines such as Customer service management, operation management, accounting etc. ➢ To develop and improve business skills in communication, technology and teamwork. ➢ To expand network of professional relationships and contact. ➢ To enhance new knowledge regarding particular area through learning by doing approach.

1.3 Selection of Organization Selection of organization is the most important part for an internship. It is the place where we can develop skills in the application of theory to practical work situations. There were no restrictions in organization selection. On the basis of personal interest and with the motive of acquiring knowledge related banking and financial sector, this particular organization was selected. Nepal Bank Limited is considered to be one of the leading commercial banks of today's time. Baneshwor branch is the place where there is maximum customer flow therefore this branch of NBL was chosen so as to widen practical skills required in Banking sector.

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1.4 Internship Details

Organization

Nepal Bank Limited

Address

Baneshwor, Kathmandu Tel.No. 01-4792683 E-mail: [email protected] m.np

SWIFT CODE NEBLNPKA Position

Intern

Departments

Customer Department,

Service Credit

Department, Work Hours and Days

10:00 am -5:00 pm , SundayFriday

Work Duration

5th May 2022 to 8th July, 2019

Name & Designation of

Ms. Alexa Pokharel

Internship Supervisor

Assistant Branch Manager

1.5Internship Duration The intern was placed in different departments at Nepal Bank Limited , Baneshwor Branch during the internship period. During the period, intern got a chance to gain knowledge of about their products and services as well as the working procedures.

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Table 1.2: Placement and Duration during the Internship

Weeks

1st

2nd

3rd

Departments Customer Service Department and Remittance

Remittance Department

Credit Department

4

4th

5th

6th

7th

8th

CHAPTER TWO ORGANIZATIONAL ANALYSIS 2.1 Establishment Nepal bank limited is the first commercial bank of Nepal. It was established in 1937, by Juddha Shumsher which marked the beginning of an era of formal banking in Nepal. In November 15 1937(Kartik 30,1994), the then King Tribhuvan inaugurated Nepal Bank Limited. This marked the beginning of an era of formal banking in Nepal. Until then all monetary transactions were carried out by private dealers and trading center. When NBL was established, it was formed under the principle of joint venture between government and general public. NBL’s authorized capital was NPR 10 million and issued capital NPR 2.5 million of which paid-up capital was NPR 842,000 with 10 shareholders. The bank has been providing banking through its branch offices in the different geographical locations of the country. From the very conception and its creation, NBL was a joint venture between the government and the private sector. Out of 2500 equity shares of NPR 100 face value, 60% was subscribed by the government and the balanced 40% was offered for the sale to private sector. There were only 10 shareholders when the bank first started. Nepal bank limited is providing services to its customers from its 217 branches. It provides deposits facility, advanced ABBS services from 162 branches, internet banking along with the ATM facilities through 144 ATM terminals all over the country. The headquarter is located in Dharmapath, Kathmandu Nepal.

2.2. Mission and Vision Mission Nepal bank collaborates with its customers while designing, developing and delivering banking solution to satisfy the interest of all stakeholders by efficiently leveraging cutting edge technology. The bank endeavors to be ethical in product offering, responsive in operation.

Vision To be the most preferred bank of the nation with complete banking solution

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2.3 Organizational Structure

Source- https://www.Nepalbankltd.com/about/organizational-structu 6

2.4 Major Products and Services ➢ Deposit It includes saving account, current account, recurring deposit account ,call account ,fixed deposit account and NBL retirement account. ➢ Loans The loan facility includes SME loan, deprived loan, agricultural loan, corporate loan or retail loan. ➢ Atm /Card Services Includes the facilities of debit card and credit card. ➢ Auxiliary Services It includes Bancassurance and locker facilities. ➢ Others -Remittance -Mobile banking and internet banking -Branch less banking

2.5 SWOT Analysis SWOT stands for strengths, weaknesses, opportunities, and threats. SWOT analysis is done to analyze the external and internal environment of the organization. Strengths and weaknesses come from internal environment whereas opportunities and threats come from external environment. The organization has to analyze its strength in order to gain competitive advantage. SWOT analysis also helps the organization to predict the possible future opportunities so the organization can be prepared to grab those opportunities. The SWOT analysis of NBL is presented as follows:

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SWOT Analysis Strengths • Government ownership bank • Wide network of branches • High customer trust

Weaknesses • Under staffing and weak human resources policies • Weak organizational mandate • Some of the branches of NBL are still outdated Opportunities Threats • Attract new customers through • High competition in the various new banking technologies market • Investment can be made in the • Liquidity crunch national level projects like • Threat of substitute products hydropower, tourism, agriculture etc. • Increasing banking business

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CHAPTER THREE INTERNSHIP EXPERIENCE

3.1 Internship Activities Performed The internship program is directed towards understanding the professional working atmosphere and principles which will enable the students to develop a glimpse of related field before they actually stand in the working field. In order to be able to cope with the changing environment it is necessary to have some practical experience.

During the internship period, different tasks were assigned to intern with the full support of employees. The intern had been confronted especially in policies and procedures of working in various departments. With reference to these policies, various procedure and requirements

for working had been acknowledged and had been

indulged into several activities. Some of the activities performed during the internship period under different departments are also mentioned in the upcoming parts. The activities performed under different department are described below:

3.1.1 Customer Service Department •

Solved the queries of customer and providing them information related to their work.

•

Received customers call, solving their queries and transferring the calls to respective department.

•

Filled up different kind of Bank’s documents.

3.1.2 Remittance Department •

Received the remittance form filled up.

•

Verified the arrival of balance through security number.

•

Proceseed the payment through system. 9

3.1.3 Clearing Department •

Separated express cheque and normal cheque

•

Stamped in cheque

•

Informed the customer in case of cheque return

3.1.4 Credit Department •

Collected all the information about the applicants via documents provided by him to the bank like Citizenship certificate, Passport, Bill book, License, Land ownership certificate, among others.

•

Assisted in the opening of OD account

•

Fillied up the Loan paper which includes Loan deed, Promissory note, Personal Guarantee, among others.

•

Scanned all legal documents.

•

Asked the applicant to read the agreement and to undersign it with signature and thumbprint, after the finalization of loan

3.2 Problems Identified During the internship periods, some problems and delimits were also encountered which are as follows: • Pressure of High Customer Flow Baneshwor Branch is a place where there is maximum flow of customer while there is only one staff in CSD. This holds a good opportunity for intern to learn everything but from customer point of view it caused problem as the services is delayed. There is also rush in the cash counter and customers have to stand in queue for long time. • Problem in Physical Infrastructure Baneshwor Branch is not well ventilated. The location is good but physical infrastructures are not well managed.

3.3 Solutions Offered The probable solutions are as follows: ➢ In order to address the high customer flow, NBL should pay attention to staff allocation. If one staff is not sufficient then the number of staff should be release. NBL Baneshwor can also start token system to manage the customer queue. ➢ The infrastructures should be rearranged and managed. 10

3.4 Internship Achievements The internship at Nepal Bank helped me to gain in-depth knowledge about real working environment, interpersonal and communication skills, organizational culture and behavior, professional qualities and team building spirit as well as working principles of commercial banks. It proved to be a milestone in the starting of career. I also analyzed how an organization performs its operations. Internship opportunity made me realize the importance of the marketing plans and strategies, tackling the customers with different perception, new schemes in order to collect high deposits, maintain public trust and customer satisfaction. Not just about the overall banking activities I also got opportunity to understand different department such as Customer service department, Clearing Department, Remittance department and Credit Department.

3.4.1 Skills Development Many important and valuable skills were learnt during the time of internship. Some of the important skills I learnt have been lists below: • Hard Skills -Sound Knowledge regarding the bank's System (Pumari Software) • Soft Skills -Communication and Interpersonal Skills The most important skills required in banking sector are the communication skills. It was an opportunity for me to learn about dealing with customers and to enhance my communication skills via several channels like face to face, phone calls and Everest mail. - Pressure Handling Skills Another major skill developed was to work in rush hours in the bank. -Observational Skills The main realization during this internship period was this phase was also mainly about observation. Through my observation also I learned a lot of new things

3.4.2Networking Development During this period of internship, I met different clients and was able to build a strong relation with them. Different entrepreneurs also came for respective work in bank with 11

whom professional relation was built by me. The major things learnt were to interact with customer on phones which I was not previously good at. Good relationship was also maintained with all the staffs of NBL. This PR will definitely be helpful in future. The interpersonal skills will help me interact with the various types of customers and their various problems in the future as well. 3.4.3 Application of Theory into Practice Knowledge of both theoretical and practical aspects is important. Theoretical knowledge is not enough to know anything in a complete sense. For this practical exposure is quite essential and program like internship grants such opportunity. Real work setting is a diverse situation than the classroom learning scenario, as we enter into the real work setting there arise novel problem, difficulties and challenges which make the person more dynamic and enthusiastic. While dealing with the complexities we develop the interpersonal and communication skills which further shape our personality. Most of my time in this bank was invested in CSD. Basically we always theoretically focus on customer satisfaction and while learning it seems easy .But in real setting the most challenging job are to satisfy the customer. While dealing with the customer there is a tendency of demanding quick response to their problems. They are always in urgency. But it is not always possible to give them immediate response as there is sometime so much rush that the challenge to satisfy customer increase rapidly. There seems to be some differences between the workplace and the comfort of the college, and what I learnt about different organizations in classroom were not enough to understand the real workplace environment. The workplace is not that simple as it looks theoretically, several factors like values, norms and culture of the individuals shape the workplace environment. But the major factor that helps in creating balance at the workplace is the attitude of the worker. 3.4.4 Career Path The choice of choosing a reputed bank for the completion of my internship was not a much planned decision. With lot of dilemma, the decision was taken to go with Nepal Bank limited and after the completion it was proven to be a wise decision. I was first placed under customer service department. Several activities were performed there along with direct interaction to the customer that further enhanced my communication skills. Furthermore, I was also kept to other different departments that broaden my 12

vision regarding banking activities. It was a very good opportunity to learn about the working procedures in commercial bank. The interest that I had in banking field increased even more after this internship experience. Some major banking career paths are: • Branch Manager A branch manager is an executive who oversees a division or office of a large business or organization, operating locally or with a particular function. Their responsibility is to ensure that payments to employees are correct, their vacation pay arrives on time and they receive proper care if they are injured while working. In banking, a branch manager is responsible for all functions and staff within the branch office. • Assistant Manager An Assistant Manager is usually responsible for scheduling employees, training new employees, and hiring new employees. Depending on the industry they may also be asked to handle escalated customer complaints as they often work in a customer facing role. • Management trainees The management trainees are a group of new recruits with the aim to groom them for management positions in a business. After usual initial induction, they are made to work under the supervision of an experienced junior manager so that they learn the working of that particular business area

• Commercial bankers Commercial bankers focus on providing financial services to small and large businesses. Several areas of focus are available to commercial bankers, including commercial lending, small business development and commercial loan workout. Commercial loan officers develop relationships with businesses to offer business loans to companies needing funding for operational growth. • Investment Banker These bankers typically work in the corporate offices of banks and other financial institutions. Their job duties vary considerably, depending on the specialty. An investment banker can take on the role of an asset manager, making investment buy and sell recommendations to clients. Some investment bankers work with companies through the process of an initial public offering, or IPO. Other duties may include 13

constructing financial models to advise clients through mergers and acquisitions, monitoring the financial markets, and analyzing specific types of securities and commodities

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CHAPTER FOUR CONCLUSION AND RECOMMENDATIONS 4.1 Conclusion During the period of internship, I got to learn a lot about the real banking sector and banking operation. The friendly and supportive staffs helped me to grab the beneficial and worthy learning experience internship period. The internship program helped me to widen the knowledge about the bank and its operations. This experience helped me to gain in-depth

knowledge about real working environment, interpersonal and

communication skills, organizational culture and behavior, professional qualities and team building spirit as well as working principles of commercial banks. The knowledge acquired in course of internship period was relevant and useful to some extent only in the context of the job in the future. In our course, we had acquired only the theoretical knowledge where as in internship we gained more practical knowledge and were able to cope with working environment. This report is prepared on the basis of internship done at Nepal Bank, Baneshwor branch, Kathmandu. Internship provided a real working environment for two months in the bank. During the internship period I got chance to get familiar with the activities like opening new account, distribution of cheque books, distribution of ATM card and PIN, opening fixed deposit, collection of cheque value of the same bank, handling customer queries, E-banking and ID distribution, customer due diligence form fill up, KYC form fill up, account activation performed in deposit department. Internee also learned various new thing about Credit, Remittance and Clearing department as well. There was friendly, communicative and cooperative environment between the personnel working from top level to middle level. I was also able to know the various services and facilities offered by Nepal Bank. Today's world is more challenging and dynamic. This is all due to the advancement of innovative ideas and products. In this competitive age, to make yourself competent in established organization you need to keep learning . It's necessary to be flexible in the related field and it is possible only through hard work, dedication and commitment which is also a major takeaway from this time period. Overall, the internship program has been very fruitful in enhancing the practical knowledge.

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4.2 Recommendations This internship program was started and completed properly due to proper support of both Nepal Bank and Apex Career Services. The work performed by both institutions in development of the intern is commendable. There are some recommendations I want to give for Nepal bank as well as college mentioned in upcoming part. 4.2.1 Recommendation to Nepal Bank Limited Nepal Bank is the Premier Bank in Nepalese commercial banking environment. It has been continuously providing its services effectively and efficiently to its valued customers. The bank witnessed encouraging recognition from the market of the new name and management. It has been able to enhance the services to its customer. Today, NBL holds one of the strongest networks. The recommendations to NBL are as follows: • The layout and infrastructures of NBL must be developed to provide better services to its customers and attract more new customers. There is some improvement needed in terms of layout. • ATM booth can be placed in the places where the public might need it the most, like shopping complexes, airports, etc. • Open the new branches at those different districts which still not have any branches. • Bank should hire more staffs for CSD as there is maximum customer flow and only one employee face a lot of difficulty handling all jobs.

4.2.2 Recommendations to ACS/College/University Some of the recommendations to the college are as follows: • The college should design the courses which will make the student more updated with the latest technology as well as boost their computers related knowledge. • Internship period should have been in the final trimester so that if interns get good job offers, they can grab them. • Regular classes as well as Internship is a bit hectic .So, classes flexibility is preferable. • The Internship Workshop and Internship orientation that is provided to the students should be made preferably earlier (in the middle of 4th trimester) so that student get more time to select organization and be sorted on things.

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APPENDIX I WEEKLY ACTIVITIES PERFORMED AT NBL Weeks 1st

Date 5th May11th May, 2022

2nd

2th May,18th May, 2022

3rd

19th May,25th May, 2022

Activities Performed • Introduced to organization as intern • Observed work under different department • Received brief information about different department • Assigned to CSD • Assisted the supervisor in CSD • Acquired knowledge about different kind forms along with all requirements • Filled form, vouchers, cheque of customers who are not academically sound. •Interacted with Customer • Call handled (Addressed customer queries through phone call) • Learned about maintaining record under different registers • Learned to check balance of customer, their personal detail, status of their account (active, dormant or freeze) from system • Prepared of cheque book • Called around 300-350 customers for KYC update which was pending • Filed/recorded of different kind of document • Assisted customer with necessary information for form fulfillment • Got authorized signature done in necessary documents • Checked all the mail and replied on the behalf of bank • Accepted cheques for clearing • Issued of fixed deposit • Printed necessary form such as Cheque book lost, cheque stop payment, Account activation etc. • Worked related to remittance department (confirming the remit amount through

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4th

26thMay- • Learned to update customers mobile/SMS banking 1st June , • Provided information about mobile banking app (how to 2022 operate it) • Provided customer their CRN number/Customer id • Assisted customer for DMAT account opening • Printed DP statement

5th

• Renewed Meroshare Id of customers • Assisted customer for locker ownership. • Received cheque for clearance

2nd June 8th June, 2022

• Stamped on the cheque • Issued balance certificate • Issued SMS alerts

6th

9th June15th June, 2022

• Informed all customers about cheque return along with the reason. • Issued of bank advice • Issued of cheque through system • Acknowledged cheque

• Scanned the photograph and signature of

customers,

uploaded it in system and got it verified. th

7

th

16 June22nd June , 2022

• Wrote application for different purpose • Assisted in CSD • Assisted in Clearing Department • Assisted in Remittance department

8th

23rd June – 29th June, 2022

• Mailed for KYC updating, Lien amount release, account transfer and account closing. • Scanned important legal documents • Assisted in the opening of OD account • Filling up the Loan paper which includes Loan deed, Promissory note, Personal Guarantee etc. • Scanned of legal documents.

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