CHAPTER ONE

1. INTRODUCTION

1.1.1 Introduction to Bank

A Bank is an organization whose primary functions are concentrated with accumulation of idle money from General public and advancing loan to individuals, traders industries and business houses for expenditure. Generally the bank collects money from those who have spare of it from their income on which it pays interest regularly . The money thus accumulated can be invested in different sectors such as business , foreign trades, agriculture's industry and social works for which it charges certain percentages of interest which is higher than interest paid by the bank to accumulated fund . Such charges on advancing loan is the major revenue sources of the bank by which it can bear administration expenses incurring in the process of operating its activities . Thus the bank is a good mediator between depositors and loan takers Banking in modern sense started with the inception of Nepal Bank Limited (NBL) on 30 th Kartik 1994. Nepal Bank Limited was established in 1937, as a semi-government organization without existence of a central bank in the country under special Banking Act 1936, having elementary functions of a commercial bank. 51% of the paid up capital of Nepal Bank Limited is owned by the Government and 49% owned by the public.

Later, on 26th April 1955, the first Central bank named as the Nepal Rastra Bank was established with an objective of supervising, protecting, and directing the functions of commercial banking activities. It had authorized capital of NRP Ten million fully subscribed by the government.

Another commercial bank fully owned by the government, named as Rastra Banijya Bank got established in 1966, which made it possible for the Nepal Rastra Bank to devote more attention to the important aspects of economic, monetary, and fiscal development.

Various financial institutions have then come into existence under the supervision and regulation of Nepal Rastra Bank. All those financial institution has been able to provide competitive banking facility to Nepalese people. However, there are enough rural areas with no access to the banking facility. Hence, there is possibility for the expansion of new financial institutions in the country.

.1.1.2 Origin Of the Word "Bank" The name bank derives from the Italian word banco "desk/bench ", used during the Renaissance by Florentine bankers , who used to make their transactions above a desk covered by a green table cloth . However , there are traces of banking activity even in ancient times . Banks act as payment agents by conducting checking or current accounts for customers , paying cheques drawn by customers on the bank , and collecting cheques deposited to customers current accounts . Banks also enable customer payments via other payment methods such as telegraphic transfer and ATM borrow money by accepting funds deposited on current accounts , by accepting term deposits , and by issuing debt securities such as banknotes and bonds . Banks lend money by making advances to customers on current accounts , by making installment loans , and by investing in marketable debt securities and other forms of money lending . Banks provide almost all payment services , and a bank account is considered indispensable by most businesses , individual and governments . Non-banks that provide payment services such as remittance companies are not normally considered are not normally considered an adequate substitute foe having a bank account . Banks borrow most funds from household and non-financial businesses, but non-bank lenders provide a significant and in many cases adequate substitute for banks loans , and money market funds , cash management trusts .

1.1.3 Banking History In Nepal

His Majesty King Tribhuvan inaugurated Nepal Bank Limited on Kartik 30,1994 Bikram Sambat. This marked 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 Juddha Shumsher 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 to 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 forth 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 onlyinraisingNRs.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 Bankanditsoperation" 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.

1.1.4 Types of banks in Nepal

Nepal has many nationalized as well as private banking ventures . The highest authority in the pyramid is The Central Bank of Nepal . This is the central bank of Nepal that decides and makes various guidelines for the banking sector of the country . There are different types of banks in Nepal and the some of the banks in Nepal are :

S.N. A B C D E F

Types Of Bank Central Bank Commercial Banks Development Banks Finance Companies Micro Credit Development Banks Savings and Credit Co-operatives

Number 01 31 87 79 21 16

A) Central Bank Central Banks are the head of every bank there is one central bank in every country . Central bank is the guardian of entire banking system . All other banks are required to follow the instruction of central bank . Nepal Rastra babk is the cental bank of Nepal which was established in 2013 BS. Central bank holds the top most position in the banking sector and slowly energies the rights os issuing notes , managing cash and credit system , controlling foreign and formulating banking policy for development of banking sector in the interest and welfare of the public . FUNCTIONS OF CENTRAL BANK - Banker to the government - Bankers to banks - Note issue - Custedian of foreign exchange and precious metals

B) Commercial Bank

The institution which collects deposit , issue short term loan provide necessary facilities for trade and payments and various kinds of commercial services are called commercials banks . Functions of Commercial Bank 1) The excess of income over consumption is called saving . Such saving amounts are deposited in commercial banks . Payment for goods and services are drawn by cheques . Commercial banks pay interest on such deposits . In context of Nepal there are three kinds of deposits they are : -Current deposit Depositors can draw such deposit at any time or wholly . Banks are not paid interest for these deposits. -Saving deposit Depositors cannot draw saving deposit they need . Only limited amount can be drawn at a time . It earns interest . -Fixed deposit Amounts deposited for a fixed time is called fixed deposit . It is not allowed to draw any amount before fixed period . It earns higher interest because it is a commercial bank and can invest such deposits to earn profit for a certain time period . Commercial Banks are providing loans on interest . They are providing education , housing ,vehicle , industry , business and other many more loan facility are provided to the Nepalese people which help to promote the life of illiterate people from destroying their assets.

C) Development Bank Development Banks are the specialized financial institutions that sit up to provide loans for developmental purpose in the various sectors like agriculture, industry , service etc . The developmental banks also perform almost same functions as commercial banks but they mainly focus on developmental activities .

D) Finance Company Finance companies are those financial institutions particularly engaged in small and short term consuming financing . The finance companies can accept deposits and extend short-term consumer loans with limited amount specified by central bank directives . The finance companies are small in

size of capital and assets so that they can be established in regional level where other banking institutions are not available .

1.2 Background The financial sector of Nepal is in growth stage. Even though in a slow pace but it is in the growing perspective, the financial institutions are ever growing and with favorable political stability and proper policies there are numerous opportunities in Nepal. It is said that a growing economy is the most potential one because it is easy to shape up the economy the way we want unlike the fully developed economy.

The financial sector includes both regulatory body and the other institutions established under the body. Nepal Rastra Bank (NRB) is the regulatory body of the financial sector of Nepal. Directly or indirectly all the institutions or any organization that has business concerning the finance has and will come under the NRB regulations. Banks, Development Banks, Investment Banks, Merchant Banks, Finance Companies, Mutual Funds, Citizen Investment Fund etc are some of the financial institutions active in the Financial Sector of Nepal.

In the following report we will be mainly focusing on the intermediary of the financial sector i.e. Banking Sector. The Banking Sector in Nepal started with the Government Bank but in the recent times the private sector has been the driving force of the banking sector. Nepal Bank Limited, Agricultural Development and Nepal Banijya Bank are the Banks under the government management and the rest of the banks are private banks with investment from the general public. Due to the liberalization by the government there are also the foreign banks operating in Nepal as a joint ventures like Standard Chartered Bank, Himalayan Bank, Everest Bank, Nepal Bangladesh Bank etc. Further the banking sector has evolved itself from the times of Nepal Banks initial operation days, where people had to take reference from high ranking officials and wait for a huge amount of time to deposit, withdraw or acquire a loan, to the recent days where the banking is as convenient as you desire. The way banking has been done in Nepal has changed to

a different level. It is both the competition among the banks and the changes in the situations and technological advances that has led to the current standard of banking.

However the banking is limited to certain percentage of the population only. Mostly the city areas and its population are only able to enjoy the banking facilities and the rural population is yet to be included into the banking, which is both opportunity and challenge. Any person will only get into the banking if either he has a need for it or he is made aware of the benefits from the banking. The benefits to a certain individual can differ from another, mostly the people get into the banking in Nepal for certain reasons which are: - Security, Convenience, Return in Savings and for Loans. Further businesses and individual traders and businessmen can be facilitated with the other banking products like drafts, L.Cs, Statements etc.

From the above discussions we are able to know that banking sector in Nepal has both opportunities and challenges in front of it and if they are able to capitalize on that then they can have a good future which is beneficial to both banking sector and the economy as a whole.

We, as a business student with focus on the Banking and Insurance have the need to understand the banking activities in Nepal and through the internship we did in various Banks and other financial institutions we were able to acquire first-hand experience of the banking in reality.

1.2.1Background of Nepal Investment Bank Limited Nepal Investment Bank Ltd. (NIBL), previously Nepal Indosuez Bank Ltd., was established in 1986 as a joint venture between Nepalese and French partners. The French partner (holding 50% of the capital of NIBL) was Credit Agricole Indosuez, a subsidiary of one the largest banking group in the world. With the decision of Credit Agricole Indosuez to invest, a group of companies comprising of bankers, professionals, industrialists and businessmen, had acquired on April 2002 the 50% shareholding of Credit AgricoleIndosuez in Nepal Indosuez BankLtd.

The name of the bank has been changed to Nepal Investment Bank Ltd. upon approval of banks Annual General Meeting, Nepal Rastra Bank and Company Registrars office with the following shareholding structure. A group of companies holding 50% of the capital RashtriyaBanijya Bank holding 15% of the Capital. Rashtriya Beema Sansthan holding 15% of the capital.. The remaining 20% being held by the General Public (which means that NIBL is a Company listed on the Nepal Stock Exchange).

The bank is listed as a company in the Nepal stock exchange. A team of experienced bankers manages the bank and professionals headed are MrPrithivi Bahadur Pande who is the Chief Executive Officer (CEO) of the bank after the former CEO Mr Dharma Pal Singh Thapa a wellknown name in banking industry in Nepal resigned from the post due to his personal reason. The bank was awarded BANKER OF THE YEAR 2003 ,2005 2008 And 2010 considering its services, assets management, return on equity, profitability, liquidity, timely and efficient discharge of its obligation at delivering its various services to the people who had associated since the time of establishment. The bank has worldwide network that enables the performance of the international trade and business with efficiently and promptly. Hence , the banks slogan THE NEPALI BANK WITH THE GLOBAL CONNECTION can be regarded very true. Nepal Investment Bank is the first Bank to introduce Visa Electron Debit Card in Nepal and the first non-government bank to launch Loan against Gold and Silver. The Bank has issued over 25,000 cards making it the leader in the industry within a span of over one and half years. The Bank has deployed the highest number, 600, of Point Of Sales (POS) machine in the market. Nepal Investment Bank recently launched the Premier Banking Cell that caters to its high net worth clients and renders consultancy services in taxation, legal, insurance and travel and tours. The Bank plans to strengthen its position in products such as remittance and plastic money. Customer satisfaction is the paramount driver in Nepal Investment Bank. The Bank constantly interacts with existing and potential customers to get feedback and suggestion that in turn help to design products and services to suit the requirements and expectations of customers.

General types of services done by the NIBL:

Account Opening Account Closing Balance Inquiry General Inquiry Account Statement Locker Facility Card issue and renewal

1.2.2 Objectives of NIBL

The main objectives of NIBL are as follows: To develop a customer oriented service culture with special emphasis on customer care and convenience. To increase our market share by following a disciplined growth strategy. To leverage our technology platform and pen scalable systems to achieve cost-effective operations, efficient MIS, improved delivery capability and high service standards. To develop innovative products and services that attracts our targeted customers and market segments. To continue to develop products and services that reduces our cost of funds. To maintain a high quality assets portfolio to achieve strong and sustainable returns and to continuously build shareholders value. To explore new avenues for growth and profitability.

1.2.3. Banks vision Banks vision is to be financially sound, operationally efficient and keep a breast with technological developments in both techniques and the infrastructure. The Bank firmly believes customer focus is a core value, shareholder prosperity is a prime priority, employee growth is a

commitment and economic welfare is a sincere concern. To be the most preferred bank in Nepal. To be among the top 3 banks in Nepal.

Banks mission

To be the leading Nepali bank, delivering world class service through the blending of state-ofthe-art technology and visionary management in partnership with competent and committed staff, to achieve sound financial health with sustainable value addition to all our stakeholders. We are committed to do this mission while ensuring the highest levels of ethical standards, professional integrity, corporate governance and regulatory compliance.

1.3 Introduction
1.3.1 Activities performed at NIBL Customer Service Department :

According to Turban et al, 2002, Customer Service is a series of activities designed to enhance the level of customer satisfaction-that is, the feeling that a product or services has meet the customer expectation.

Customer service department is the department where direct interaction with the customer is done. Customer service department deals with the people in a disciplinary way which is made up of dynamic and smarter people. Staff members should do everything they can to satisfy patrons needs, and they should feel empowered to make reasonable decisions to solve problems. A customer service department never makes patrons feel stupid, angry, taken advantage of, cheated or used. A customer service department acts on the principle that the customer is always right. It works intelligently and courteously to attain fair resolution of problems and leaves the customer satisfied, regardless of the complexity of the issue that needed attention.

If customer service is a process and not a department then everyone in the organization is responsible for providing good service to the customer, not just those in the

customer service department. Leading companies in todays world spend more money in the customer service department to attract the customer and to better and efficient service to the customer. Objectives of Customer Service Department (CSD) The main objective of the customer service department is to provide fast and quality service to the customer. CSD helps to know the client and delivers the quality service. The other objectives of customer service department are as follows: To handle the customer politely. To provide the better and efficient service. To protect rights and obligation. To deliver the quality service. To build good relation to the client. To help client for solving the problem

Treasury and FOREX Department The Treasury department is located in Head Office , Durbarmarg which is fully equiped

with state of art technology for day - to - day dealings . The Department relies on the various internationally acknowleged software's like Reuters and Newswire 18 for real time on the foreign currency and news in the international market . There are mainly three levels of tresaury department . They are

1. Front Office The front office of treasury department is responsible for trading in

forex/money/market/fixed income securities/ stocks / derivatives and commodities depending upon the scope of the treasury operations in bank . Simply put , front office staff actually executes the transactions either on behalf of banks customers or proprietary transactions . It acts as a dealer .

2. Mid Office The job of mid office of treasury department is to analyze that the risk of the deals that are made by front office . Risk managers , equity/bonds analyst , chartists etc work in the mid office . Mid office staffs reqire analytical skills coupled with industry risk analysis ability . Incase of NIBL, both the work of front office and mid office is done by the front office staffs . 3. Back Office The back office of treasury department handles the further work of dealing after being analyzed for risk by the front office. Almost all the work in treasury department is private so the interns were not assigned to do any tasks there .

Functions of treasury department The functions of treasury department can be divided into two categories - primary and secondary functions . A. Primary Functions Treasury department is mainly responsible for funds management and exchange rate determination . a) Funds management Funds management is the core functions of the treasury department . Under this functions treasury department caries out the following tasks : - Maintaining Cash Reserve Ratio (CRR) One of the important functins of the treasury department is to fulfill the CRR reqiurements as given by NRB . Like every other banking institutions NIBL also maintains 5% CRR in weekly in a cumulative basis . - Interbanking The department carries out inter- bank transactions in the local market for the fund management . As per the reqirement of the bank , the department lends/borrow to the other commercial banks and few other financial institutions . Interbanking between the bank is done with midrate . Interbanking rates fluctuate accoding to the free market . It increases when there is liquidation crunch and decreases at the time of over liquidation . Currently the rate is below 1%. B) Secondary functions Other secondary functions of treasury departments are :

a) Check Foreign Currency Position The department maintains the foreign currency positions as per the need of the bank. Mostly, the currencies are squared off at the end of the day to minimize the risks related to exchange rate fluctuations. Mostly spot transactions are carried out for sales / purchase of foreign currencies. b) Treasury bills / Governments bonds The department also invests in treasury bills and the governmnents bonds issued by the central bank as per the liquidity position of the bank . c) Inter - bank placements The department also does inter - bank placements with the domestic commercial banks , domestic development banks / finance companies and international banks like citibank ,

Standard chartered bank , Royal bank of canada , Axis bank , ICCI bank and Mashreq banks and many other banks . Before placing any deposit with the international banks , the department carries out a thorough analysis of the concerned banks financial performance . d) Forward Contracts As per the need of the client , the department also executes Letter of Credit (LC) based as well as Non LC forward contracts , which help NIBL's client hedge against foreign exchange risk . It charge premium for 30p for first 10 days and 25p for each next 10 days for USD forward contracts

Trade Finance Department

Trade finance is a short-term credit availed by a bank to their borrower for importing and exporting activities. It includes various kinds of loans, advances and facilities required for imports and exports deals. Since such deals are made on foreign trade, it involves transactions of foreign exchange. The economics of these trade finance facilities depends on local currency (LCY) and foreign currency (FCY) interest rates, the ruling forward terms, exchange rate movement outlook, Central Banks (NRBs) regulations etc.

Locker Department

Safe deposit vaults or bank lockers have long been considered the safest place to store jewels,

stock certificates and other valuables . It is the strong storage container maintained in the vault area of a bank and rented to bank customers for safekeeping of valuables. Gold loan is meant for those people who need fast cash to fulfill thei sudden financial needs . Locker is a strong container in a bank that offers a safe, trustworthy space to store valuables , jewelers , documents and other precious things of the customer . Requirements Only the account holders can avail locker facility from the bank. Two Photographs of each person operating the locker. Citizenship copy of each person operating the account.

Features: Maximum of 3 persons can operate one locker.

No key deposit amount for E-Zee saving and Saving Bonanza account holders

General Service Department (GSD)

This department is responsible for the availabilty of office supplies for all the departments of both head office and branches inside and outside the valley. The function of this department is to purchase the necessary goods required and make them available for the department.

Due to this feature, it can also be called "Bancha Ghar" of an organization This department can be further divided into multiple sub - departments . These sub-departments are : Bill This department is responsible for keeping record of the bills of the goods purchased. Courier Dispatch All the goods that are damaged and have to repaired are bought here. For example : if the printer in Birgunj branch is damaged then it is brought here in GSD at head office. It is sent to be repaired from here . After being repaired it is sent back to birgunj branch through courier.So simply its main function is to repair the damaged goods. Groceries The section of GSD is responsible for purchasing the groceries required by the bank like tea,

coffee and other stuffs. Stationeries All the stationery items are needed for day to day operations of the bank are made available by this department. Stationery items can be pen, pencil, paper, files, scale, pin and so on. Printing Stationeries Business card printing, Letter heads printing, envelop printing, carbonless forms printing, labels printing and stickers printing are categorized under this heading. The job of this department is to make all these items available as per the need of bank. Fuel Its job is to deal with the vendors for the purchase of fuel as per required by the bank for its operations. Insurance This department keeps an account of the insurance of the staffs. Under this department, internee have performed the activities like photocopying the documents, keeping the record of the customers and filing up the purchase order (PO) which is used for ordering the items from the vendors. Activities done by internee under this department are:

- Preparing purchase order -Preparing Grocery receipt note - Photocopying the necessary documents - Keeping the records of the customers Accounts Department

Accounts department is responsible for handling all the expenses of the bank . It makes fund available for different purposes like paying for staff training , meeting etc.Account department consists of the staff member of the company who deal with accounting. The functions of accounting department is to look after the finances of the company. The account department in NIBL has multiple sub-departments that handle different functions of accounting separetely. Different functions of this department can be explained as follows: - Making payments Accounting departments make sure that all bills are paid by the company on time and at least

and also the least cost possible. If there is discount for paying quickly, the accounts department usually pay the bills as soon as possible so that the company spends a little money as possible. They are responsible for all outgoing payments and making sure that what they are paying is correct. -Payroll The accounts department ensures that all the employees are paid correctly on time. They make sure that all of the employees are paying the right amount of tax. For this particular purpose, NIBL has separate sub-department. It handles all the work related to employee salary. -Keeping records One of the routine functions of account department is to record the transactions of basis of invoice , bills and vouchers, and keep bills and vouchers in a safe place after including them in files. Swift related activities are also handled in account department .Swift drafts which arrive from the foreign banks are aorted out according to the names of banks and their currencies. Reconciliation For the reconciliation purpose, NIBL has separate sub-departments .The main purpose of this departments is to find out the mistakes . It checks whether there has been a double entry or has not been an entry at all .This department balances the debit and credit side by making both sides zero .Reconciliation of whole day is done at the first hour of next day .

. Internee have performed the following activities

- Sorting the swift draft according to banks and their currencies - filing the swift draft

Clearing Department

Cheques from other banks and of NIBL are deposited in this departments . Clearing is divided into two parts - Clearing inward and Clearing outward . Both the operations of these two clearing parts are performed in this department . Card Center :

Nepal Investment Bank is the first Bank to introduce Visa Electron Debit Card in Nepal The Bank has issued over 25,000 cards making it the leader in the industry within a span of over one and half years. The Bank has deployed the highest number, 600, of Point Of Sales (POS)

machine in the market.The card center is located at lazimpat .The card center gives the facility of debit card , credit card , master card etc. Card center is also one of the crucial department of the bank. A Credit Card is a payment card, which enables you with the option of making purchases on credit. Spend now and pay later! It is a convenient financial management tool. It offers many benefits, however at the same time it also carries many responsibilities to the holder thereof. It provides you with a freedom from the burden of carrying cash. Credit cards have very wide applications, wider than the currency notes and safer than them too . In card center as a internee I learnt how to pack the pin numbers to distinguish the card according to their branch code , where to keep the card after it is being ready according to their respective branches .NIBL has associated with Global E - Meditech and new card has been introduced that is called medicash card which is specially for medical purpose . If we use this card for medical treatment in India we get discount from 10% up to 40%. This card is usually used to swipe cash.

Member Group Network Kumari Bank ATM Network Rastriya Banijya Bank ATM Network Global Bank ATM Network Machhapuchchre Bank ATM Network Sunrise Bank ATM Network 1.4 Organization Structure
Organization structure of NIBL

1.5 Area of Study

Banks main aim is to satisfy customer. A customer is someone who buys goods or services from

a shop/store or business, or who uses a bank. A client pays to use the services or advice of a professional person, such as lawyer or designer, or an organization. Bank has establish to serve the customer by accepting deposits from the surplus spending units and giving interest, providing loan to meet the credit need users and charging the fees from those deficit units. Banks main target is to satisfy customer need by providing the efficient financial services and by helping them to get satisfactory return of their funds.

The area of study in this report includes Customer service Department , General service department , Acconts department , Locker department as well as Treasury and FOREX department .Customer service is the process by which the organization delivers products or services in a fashion that allows the customer to access them in the most effective, just cost effective. .Different department gives different services in satisfying manner possible. and in a disciplinary way that has met the customer expectation.

1.6 Need of Study

The report is written for the partial fulfillment of the requirement for the degree of Bachelor of Business Administration (BBA) from the university itself . The problem and their causes with complying developing capabilities to evaluate potential solutions that optimize organizations strength, Weakness , Potential Opportunities and Competitive threats . It also helps to develop strategic skills in students which helps to reduce the risk and weaknesses and to hub opportunities and strength . The specific objectives are : - To understand the banking operations in a practical perspective - To help student understand the nature of organizational problems in a theoretical and practical ways - To familiarize the student with real life working environment and organizational culture and system . -To develop managerial and administrative skills so that they are able to tackle that real life problem arising in the organization.

1.7 Research Methodology

1.7.1 Research Design Research design includes day to day activities activities performed in the bank as well as analysing of different department .A systematic method is required to pick out an actual result for any type of study . Likewise, in this report also there is ceartain method used . During internship time different types of departments are evaluated and then presented in this report using different methods .

1.7.2 Methods of data collection Secondary source Annual report of the bank Banks official website (www.nibl.com) NRBs official website (www.nrb.org.np)

1.7.3 Organization Selection As per the PU requirements, every BBA students should under go intership program in any institutions for minimum eight weeks . For this internship internee choose NIBL out of all the commercials banks because it is one of the well renowned and reputed bank in Nepal . NIBL was established in 1986 and was able to win the award Bank of the year for four time in 2003, 2005, 2008 and 2010 . It has good financial position in Nepalese financial markets . The reason behind choosing head office at durbarmarg for intership is because of the oppurtunities of gaining the knowledge and working experience in different departments as far as possible and also for the internship one should have the good reference for the enrollment in the organization . So because of the reference that I got from my sister , NIBLs goodwill and suggestion other gave me I choosed NIBL . 1.7.4 Placement During there eight of intership I visited different deparments . NIBL has the policy of rotating

interns in departments so that internee will have the overall knowledge about the banking operations . Likewise internee also had the opportunity to gain the practical knowledge of most of the departments . In these eight weeks internee was placed at customer service department, general service department , locker department , accounts department , treasury and FOREX department . 1.7.5. Duration of internship Departments Customer service department General service department Account department Locker department Treasury and FOREX department Card department Corporate department NIBL capital markets Duration 1 week 1 week 1 week 1 week 1 week 1 week 1 week 1 week

1.8 Objectives of the study

The main objective of the internship program is to learn while you work as a part of a company, an industry and a particular occupation. The internship program provides us with an opportunity for learning as well as moulds our various skills that are required in a job. Students can get insights about how professionally activities are performed, how responsibilities are carried out and how to work as a part of system. Some objectives are listed below: To gain the practical knowledge of the general banking transactions

To observe the organizational culture of the banks To develop interpersonal and communication skills by encouraging to interact with the people in the organization and with the clients. To implement the theory concept in the daily operations of the banks To know the working procedure and work division within the organization To know about the products and services that the bank is providing to its customers To try to develop the managerial skill and tackle with the real life problems while being in the organization To understand how to work in a team in real organization. To know about how motivation in organization works.

1.9 Limitation of study

This internship report, based on the fieldwork experience of 8 weeks in Nepal Investment Bank Limited, is encircled by some limitations. So this study has been carried out considering some limitations, which are as: A deep knowledge of the subject matter could not be gained because of time restriction. A major portion of this study is based on secondary data. Therefore the accuracy of results and conclusion is totally dependent on the reliability and truthfulness of the data and other information made available by NIBL and other sources. The report is prepared for an academic purpose and hence will not have an expert analysis and also the overall position of NIBL cannot be judged by it. Some information relating to the subject matter could not be obtained because of the banks secrecy.

1.10 Organization of the study

-While preparing this i have included introduction , background , activities performed at bank , organization structure , research methodology and objectives of study in first chapter. - I have also included literature review in second chapter.

CHAPTER TWO

Literature Review
General Banking is an operation function of the bank which consist the management of deposits, cash , clearing house , bills , account opening , security instrument handling , customer services , locker services and other ancillary services of banks besides advanced and foreign trade. To know the Precise and clear meaning of bank, some expert's definition can be given. chamber's twentieth century dictionary defines a bank as an "Institutions for keeping , lending and exchanging etc of money . According to Crowther " A banker is a dealer in debts . The bankers business is then to take the debts of other to people , to offer his own in exchange and thereby to create money ". According to world Bank , "Banks are the financial institutions that accept funds in the form of deposit repayable on demand or short notice ". Therefore a bank is a financial institution, which collects deposits and in turn provides loans by creating credit . Today banking is such a vague term, it does a lot more than deposits and credit like remitting money , issue of money guarantee , letter of credit , controlling , payment , other agency functions, monetary , activity of country etc. are also the major function of bank . This multiplicity of bank service and function has led to a bank being labeled "Financial Supermarket.

This internship report is a productive outcome of my intensive and extensive research. My research has plunged into the report work of the previous intern, internet, published sources, relevant books and brochures of Nepal investment bank. Hence review of literature is an extract from the research done into those areas. According to Kent A bank is an organization whose principal operations are concerned with the accumulation of the temporarily idle money of the general public for the purpose of advancing to others for expenditure. According to Crowther, Bank is an institution which collects money from those who have it to spare and who are saving it out of their income and lends this money out to those who require it. According to the previous intern, who was placed in the CSD, GSD , Account department , Treasury department as well as Locker department of Nepal investment bank (Durbarmarg). Customer Service Department means a primary level department that deals with customer oriented issues and maintains good public relation with them. General service department is responsible for availability of office supplies for all the departments in Durbarmarg as well as other branches inside and outside valley. Accounts department is responsible for handling all the expenses of the bank and it makes funds available for different purposes like paying for staffs training , meeting , seminars etc. Treasury department maintains foreign exchange rate that is necessary in the transaction within the bank and is responsible for fund management of the bank .Locker department is strong container in the bank that offers a safe, trustworthy, space to valuables jewelers, documents and other previous things . In her report she had also described about the functions of different departments briefly. The previous intern had also included SWOT analysis of Nepal investment bank in her report with a purpose to analyze the strengths, weaknesses, opportunities and threats of Nepal investment bank. She ascertained that the gigantic customer-following of Nepal investment bank is its strength. According to her findings, its strong image in the market is also its strength. Well developed strategy is another overpowering strength of Nepal investment bank according to her findings. She had also concluded that broad market coverage is also the strength of Nepal investment bank. She analyzed that sometimes Nepal investment overrates itself which results in its idle behavior in terms of implementing marketing and promotional measures. According to her view this is Nepal investment banks weakness. Somewhere Nepal investment bank puts a full stop in promoting itself because it carries the attitude that there is no need to promote itself

because it is already so flourished and glorious. Hence in her recommendation she had stated that Nepal investment bank must also emphasize on its marketing ideas and schemes. She perceived that Nepal investment should be little more innovative in providing new, attractive services and facilities. She had concluded that this will be lucrative opportunity for Nepal investment bank. Hence in her recommendation she had suggested that Nepal investment bank should be more innovative as a facility provider. She views that the fierce neck-to-neck competition that it has to confront against its competitors is a threat to this bank.

CHAPTER THREE

PRESENTATION AND ANALYSIS DATA

3.1 Lists of commercial banks in Nepal LISTS OF COMMERCIAL BANKS IN NEPAL S.No. 1 Names Nepal Bank Ltd. Operation date 1937\11\15 Head Office Dharmapath, Kathmandu. 2 Rastriya Bank Ltd. Banijya 1966\01\23 Singhadurbar plaza, Kathmandu.

Nabil Bank Ltd.

1984\07\16

Kantipath, Kathmandu.

Nepal Investment 1986\02\27 Bank Ltd

Durbarmarg, Kathmandu. Nayabaneswor, Kathmandu. Thamel, Kathmandu. Hattisar, Kathmandu. Nayabaneswor, Kathmandu.

Standard Chartered 1987\01\30 Bank Nepal Ltd.

Himalayan Ltd.

Bank 1993\01\18

Nepal SBI Bank 1993\07\07 Ltd.

Nepal Bangladesh 1994\06\05 Bank Ltd.

Everest Bank Ltd

1994\10\18

Lazimpat, Kathmandu.

10

Bank Kathmandu Ltd.

of 1995\03\12

Kamaladi, Kathmandu. Siddhathnagar, Rupandehi.

11

Nepal Credit and 1996\10\14 Commerce Ltd. Bank

12

Lumbini Bank Ltd. 1998\07\17

Narayangadh, chitwan.

13

Nepal Industrial & 1998\07\21 Commercial Bank Ltd.

Biratnagar

14

Machhapuchhre Bank Ltd.

2000\10\03

Pokhara

15

Kumari Bank Ltd.

2001\04\03

Durbarmarg, Kathmandu.

16 17

Laxmi Bank Ltd. Siddhartha Ltd.

2002\04\03

Birgunj. Kamaladi, Kathmandu. Birgunj.

Bank 2002\12\24

18

Global IME Bank 2007\01\02 Ltd

19

Citizens

Bank 2007\06\21

Kamaladi, Kathmandu. Newroad, Kathmandu.

International Ltd. 20 Prime Commercial 2007\09\24 Bank Ltd. 21 Bank of Asia 2007\10\12

Tripureshwor, Kathmandu.

Nepal ltd. 22 Sunrise Bank ltd. 2007\10\12

Gairidhara, Kathmandu.

23

Grand Bank Nepal 2008\05\25

Kamaladi,

Ltd. 24 NMB Bank Ltd. 2008\06\05

Kathmandu. Babarmahal, Kathmandu.

25

Kist Bank Ltd.

2009\05\07

Anamnagar, Kathmandu.

26

Janata Bank Ltd.

2010\04\05

Newbaneswor, Kathmandu.

27

Mega Bank Nepal 2010\07\23 Ltd.

Kantipath, Kathmandu. Kamaladi, Kathmandu.

28

Commerce &Trust 2010\09\20 Bank Ltd

29

Civil Bank Ltd.

2010\03\10

Kamaladi, Kathmandu.

30

Century Commercial Bank Ltd.

Source:www.nibl.com

2011\02\15

Putalisadak, Kathmandu.

3.2 Interest Rate Deposits (Effective Since Magh 1st, 2068)

Table 3.2.1: Interest rate on saving deposits

Deposit Interest Rates Saving Accounts Savings* Ezee Savings* Saving Bonanza* * Conditions Apply % per annum 4.00 - 5.50 4.50 6.00

Table 3.2.2: Interest rate on Fixed Deposits

Fixed Deposit Prime (%) 1 month 3 months 6 months 1 year 2 years Above 2 years Special Deposit Account NIBL Special Fixed Deposit Special Bulk Fixed Deposit Account 6.00 6.50 7.00 7.50 8.00 8.50 9.00 10.00 10.50 Others (%) 5.50 6.00 6.50 7.00 7.50 8.00 8.00 9.50 10.00

Table 3.2.3: Interest rate on loans

Lending Rates Corporate/Multinational Overdraft Working Capital Short term Loan/Time Loan 90 Days Cash Credit Term Loan Export Credit Trust Receipt % per annum 14.75 14.75 16.00 15.00 15.75 13.00 Level 1 Level 2

90 Days 120 Days Corporate/Multinational Term Loan Export Credit Overdraft Working Capital Short Term Loan / Time Loan Trust Receipt 90 days Trust Receipt 120 days Deprived Sector Hire Purchase Loan Loan Against Govt. Bonds** Loan Against 1st Class Guarantee Loan Against Fixed Deposits held with our Bank Loan Against USD Pledge Other Loans Housing Loan (Up to 5yrs) Housing Loan(Above 5yrs)

13.00 13.50 Prime 16.25 15.00 16.75 16.75 17.00 15.50 16.00 11.00 15.00 14.00 14.00

15.00 15.50 Others 16.75 15.50 17.75 17.75 17.50 16.50 17.00 12.00 16.00

3% above the coupon rate 11.00 18.00 15.00 16.00 12.50

3.3 Investment Pattern

26thAGM

PRESS STATEMENT Kathmandu, January 10th 2013. Nepal Investment Bank Limited (NIBL) is proud to announce its 26th Annual General Meeting. Since its establishment, with a paid up capital of NPR 30 million, the bank has been successful in delivering maximum returns to its shareholders and proved itself to one the leading banks in Nepal, and since achieved a paid up capital of more than NPR 3.76 billion (including proposed bonus shares). This proves to be the

highest paid up capital amongst the private sector banks in the country, and is almost twice the minimum paid up capital prescribed by Nepal Rastra Bank; which strengthened the foundation and the credibility of NIBL .

Barathawa Branch Opening

Press Release Barathawa, 15th August 2013. Nepal Investment Bank Limited announces the opening of its 44th branch in Barahathawa, Sarlahi district. The commencement of the new branch has come as part of the banks strategy of focusing further on inclusive banking to support the agricultural activities of the area and be the first private sector commercial bank to operate at the place. The newly opened branch shall further strengthen banks position in the South Eastern region of Nepal.

The Chief Executive Officer, Mr. Jyoti Prakash Pandey inaugurated the branch amidst a function on 15h August, 2013. NIBLs position as at Asadh end 2070 is as mentioned below: Paid up Capital : Rs. 3.76 billion Shareholders Fund : Rs. 8.04 billion Total Deposit : Rs.62.43 billion Total Lending : Rs. 47.70 billion Net Profit : Rs. 1.99 billion Total Assets : Rs. 74.42 billion Non Performing Loan to Total Loan : 1.91% Capital Fund to RWA : 12.99% The Cash & Transfer department, guided by the principle of customer satisfaction, is fully committed in providing the best quality service to its customers and offers a wide range of services from its head office at Durbar Marg and its vast branch networks, 365 days a year including facility of any branch banking systems(ABBS) Services offered: Cash Deposit Cash Withdrawal Sale or Purchase of Foreign Currency Cashier Cheques

Bank or Demand Draft Swift Transfers Clearing/ Bills Collection/ Bills Purchase Internal Transfers Inter Bank Transfers Good For Payment Standing Instruction Fixed Deposit Call deposit Payment of Interest/ Principle of National Saving Bonds E-Payments to India

3.4 Retail Banking a) Deposits:

Normal Saving Account Social Deposit Account Ezee Saving Account Afnai Bachat Khata Ketaketi Bachat Khata Lotus Saving Ezee Student Account Parivar Bachat Khata NIBL Saving Bonanza

Effective from 15 January, 2014

Deposit Interest Rates Saving Accounts % per annum Afnai Bachat Khata 2.50 E ZEE Student (ESA) 2.50 Normal Savings 2.50 Keta Keti Bachat Khata 2.50 Locker 2.50 Lotus Savings Account 2.50

Pariwar Bachat Khata Remittance Savings Account Karmachari Bachat Khata EZEE Savings NIBL Savings Bonanza

2.50 3.00 4.00 3.00 4.00

b) Services:
ATM Credit card Debit card E-banking Utility payment NTc bill payment Premier banking 365 days banking Mobile sms banking Ncell bill payment

c) Loans:

Home loan Educational loan Vehicle loan Gold and silver loan

HomeLoan

For home loan we have to use : Finance up to NPR 10,000,000/-(Max) or 60% of the total value (whichever is lower) for

Readymade Houses/Buildings Construction of House/Buildings, Readymade apartment, bungalow, duplex Renovation and / or extension of building

Tenure

Maximum of 15 years Loan shall be terminated on /or before 60 years of age of the borrower. Repayment: Equal Monthly Installments (EMI)

Education Loan For this loan we have to :

Finance for Tuition fee Living expenses Travelling expenses Interest Rate: 12.50% per annum

Period: Up to the completion of the course or maximum period of 10 years, whichever is earlier Repayment: ELIGIBILITY Acceptance letter from University / College / School No objection letter from Ministry of Education Nepali citizens Borrower/Guardians should be Professionals, salaried individuals, self employed, etc. and their uncomitted monthly income to comfortably justify for EMI FEES AND The following charges are to be levied Management fee: 1% of loan amount Documentation Fee: NPR 2,000.00 flat Prepayment Fee: 1.00% of pre-paid amount Commitment Fee: 1.00% of unutilized amount CIB Charge: NPR 750.00 per page CHARGES Equal Monthly Installments (EMI)

Loan against Gold and Silver For this loan we have to : Finance up to: 70% for Gold Ornaments 75% for Fine Gold Interest 14% per Interest to be paid on quarterly basis (as per Nepali calendar) Rate: annum

Period: Maximum 1 (one) year (if required to be renewed every year from the Date of maturity) Partial Payment fee: 0.5% of total loan amount Repayment: Can be repaid at any time ELIGIBILITY Age 18 years and above Nepali citizens FEES AND The following charges are to be levied Prepayment Fee: NPR 200.00 if prepaid within one year For lost Gold Receipt additional NPR 200.00 will be charged
Vehicle Loan For this type of loan we have to :

CHARGES

Finance upto 80% financing of the total value for the following The purchase of New Private Vehicles The purchase of New Commercial Vehicles And upto 50% of the total value for The purchase of Second Hand Vehicles (not exceeding 5 years old) Interest Rate

Tenure Maximum of 5 years Loan shall be terminated on /or before 60 years of age of the borrower.

Repayment: Equal Monthly Installments (EMI)

ELIGIBILITY Over 18 years of age Nepali citizens Professionals, salaried individuals and self employed individuals FEES AND CHARGES The following charges are to be levied Management fee: 1% of loan amount Documentation Fee: NPR 2,000.00 flat Prepayment Fee: 1% of pre-paid amount CIB Charge: NPR 750.00 per page

3.5 Social Activities Corporate Social Responsibility

NIBL is committed to building and maintaining a strong relationship between the Bank and the larger community. In order to do so the bank invests in various projects that promote our heritage and the arts, in education & health initiatives, various NGO programs, sports as well as in supporting the less privileged sections of our society. Each year, NIBL sponsors a diverse range of programs that encourage a strong corporate culture of giving in the name of charity and responsibility to our community and nation. Some of the major initiatives taken by NIBL towards the society welfare are listed below: 3.5.1 UNHCR The bank donated Rs. 900,000 to UNHCR as a part of its ongoing support for providing educational supplies for Bhutanese refugee students. The United Nations High Commissioner for Refugee Agency (UNHCR) is mandated by the United Nations to lead and coordinate international action to protect refugees and to resolve refugee problems worldwide. The organization has been working on securing the rights and well-being of Bhutanese refugees in Nepal for almost two decades now.

3.5.2 Nepal Childrens Organization (NCO) The bank donated Rs. 75,000 for Nepal Childrens Organization (NCO), an organization that has been committed to improving the lives of children throughout Nepal since 1964. NCO aims to provide a solid foundation for orphaned and abandoned children and helps rehabilitate dependent children of prisoners. NCO seeks to promote child rights, adoption of children (nationally and internationally), provide education for children from low income families, and strengthen the capacity of its nationwide network. 3.5.3 Pashupati Briddashram NIBL organized a charity event to aid Pashupati Briddashram, which is the oldest old-age home in Nepal. It is funded and managed by the Ministry for Women, Children and Social Welfare and aims to support elderly people by nursing and caring for them.

3.5.4 Hospital and Rehabilitation Centre for Disabled Children NIBL made a contribution of Rs. 15,000 to the Hospital and Rehabilitation Centre for Disabled Children (HRDC). HRDC is run by a non-government organization established to provide better services and support to disabled children. HRDC provides comprehensive high quality medical care and rehabilitation to children with physical disabilities, especially amongst the poorest sections of the population. 3.5.5 Friends Club Shrawan NIBL sponsored Rs. 600,000.01 to Friends Club, a Nepalese football club playing in the A division league in Nepal. It is hoped that the support will encourage the sport among other Nepalese and also help build a strong competitive league.

3.6 Types of Account A. Normal Saving Account:

Normal account is an account used for holding funds on a short term basis in anticipation spending those funds. In this type of account the people can open the account of Rs 1 in durbarmarg but it may vary on branch. This type of account

provides nothing in order to take debit card customer should maintain minimum balance of Rs 250 and for cheque book customer should maintain minimum balance of Rs 20000.

Features:

Minimum Balance of Rs 1 but may vary on branch. Interest rate @ 4.00% per annum (p.a). VISA Electron Debit Card with the charge of Rs 250 (Valid in Nepal and India)

Free Services:

Unlimited deposits and withdrawals. E-banking facility. Any Branch Banking Service (ABBS)

Requirements: Citizenship Certificate and or any valid identification card issued by Nepal Government. Two recent PP size photographs.

B. Social Deposit Account:

NIBL believes in its social responsibility. With this in mind NIBL has started a unique, first of its kind scheme which shares with society a little of what it achieves. The Social Deposit Account permits any INGO/NGO account holder to claim a share in the profits of the account. The Social Deposit Account is NIBLs contribution to help achieve a better Nepal. We at NIBL invite all such organization to join hands with us in this noble cause. Eligibility: All INGO/NGO who is registered with Social Welfare Council (SWC)

INGO/NGO engaged in non-profitable social work or charitable activities. Maintain an annual average balance of USD 10,000 or NPR equivalent.

Benefits: Bank will contribute 50% of the earnings generated from your account on a semi-annual basis. A source of fund for your charitable activities can be locally raised. Additional project can be funded from locally raised funds. Reduction in funding burdens to the funding/donor agencies. Continue earning interest on our account.

C. E-Zee Saving Account:

It is the account especially for the higher level people. The people can open this account with the minimum balance of Rs 50,000. Its interest rate is also high 4.50% per annum on daily balance. This account provides with the facility of unlimited deposits and withdrawals. This type of account has come up with the package of accidental insurance. Benefits: Privilege Lounge. Waiver of key deposit fee for lockers. Special health package at National Reference Laboratory (NRL). 4.50% interest on daily available balance. Minimum balance of Rs 50,0000. Online payment of Nepal Telecom (pre-paid, post-paid, landline, CDMA, ADSL) school fees, internet and cable T.V, insurance premium and e-ticketing etc.

Recharge of Prepaid Mobile Phone of Nepal Telecom.

Free Services: Unlimited deposits and Withdrawals.

E-banking. VISA Electron Debit Card (valid in Nepal and India). Any Branch Banking Service (ABBS). Accidental Insurance. Cheque book facility.

Requirements: Citizenship Certificate and or any valid identification card issued by Nepal Government. Two recent PP size photograph.

D. Ketaketi Bachat Khata:

It is the account for the children. The main motive behind this account is to make saving habit for the children which will help them in the future course of time. This account provides free cake to the children in his/her birthday and also provide privilege card which will help them to get discount in different shops.

Benefits: No Minimum balance. NPR 100 contribution from the bank as soon as the account is opened. Interest rate @ 4.00% p.a. on daily available balance. Account to be operated by the parents/guardian. Cheque book will not be issued under the scheme. Account matures when the child reaches 16 years and is converted to a savings account. Discount privileged card.*

Visa electron debit card @ NPR 250 p.a, valid in Nepal and India.

Free Services: E-banking facility-pay school fees online. Any Branch Banking Service (ABBS) facility. No maintenance charge. Free birthday cake for the account holder (minor).** Online payment of Nepal Telecom (pre-paid, post-paid, landline, CDMA, ADSL),school fees, internet,& cable TV, insurance premium and e-ticketing). *Bossini, Ekta Bookstore, Maruti Mall-365 days shopping,Liliput, Kasa Pasa Sports Centre, Penny Lane, Sarina Enterprise-Asian Paints, Punkie Universe, Bluebird Thapathali, United Bowling WTC, Angel Blue and many more

**Conditions apply (For eligibility of the cake, maintenance of yearly average balance of NPR 10,000 is must ) Requirements: Birth Certificate of the child. Three recent PP size photo of child and his/her parents. Account for minors only (1 month -16 years). Citizenship certificate of parents.

E. E-Zee Student Account:

It is account specially develop to those student who are willing to go abroad. The account gives 50% waiver on TC issuance and on Draft. As student can send their income to the respective account from which their family member can withdraw the amount. The account will remain as an E-Zee student account after one year of graduation and therefore it will be converted to normal saving account. Features:

Minimum balance of Rs 2000. Interest rate @4.00% per annum. Visa electron Debit card with the charge of Rs 250 per annum (valid in Nepal and India).

Free Services: 50% waiver on TC issuance. 50% waiver on Draft. Any Branch Banking Service (ABBS) facility. E-Banking.

Requirements: Valid Students ID & Citizenship Certificate or any valid identification card issued by Nepal Govt. Two recent PP size photographs.

F. Saving Bonanza:
It is another type of account which has been recently introduced by the NIBL for its customers. To open this type of account, we must have one lakh because one lakh is the minimum balance under this new scheme. NIBL has launched this scheme in order to attract more number of customers. It provides accidental insurance, interest on the daily balance and many more facilities.

Features: Minimum Balance of Rs 1,00,000. Interest rate @6.00% per annum on the daily balance. Privilege Lounge. Waiver of key deposit for lockers. Accidental Insurance.

Free Services: Any Branch Banking Services. E-Banking. Utility Payment for Nepal Telecom Pre-Paid Recharge, Post Paid/PSTN Bills, Schools. ISPs, Cable networks, Insurance & Yeti Air e-Ticket. Visa Electron Debit Card ( Valid in Nepal and India). Unlimited deposits and withdrawals.

Requirements: Citizenship Certificate and or any valid identification card issued by Nepal Government. Two recent PP size photographs.

G. Afnai Bachat Khata:

It is the account for the middle and lower level people. It is one of the popular accounts. The people can open this account with the minimum balance of Rs 1. This account does not provide the cheque book but to do the transaction they provide debit card with the charge of Rs 250. The interest rate for this account is 4.00% per annum on daily balance. Features: Minimum balance of Rs 1. Visa electron debit card @ Rs 250 per annum (valid in Nepal and India). 4.00% interest on daily available balance. Recharge of Prepaid Mobile Phone of Nepal Telecom through ATM and internet. Free Services: Visa electron debit card (valid in Nepal and India).

E-banking facility. Any Branch Banking Service (ABBS) within Kathmandu valley. Maintenance charge.

Requirements: Citizenship Certificate and or any valid identification card issued by Nepal Government. Two recent PP size photographs.

H. Lotus Saving:
It is the type of account where the minimum balance starts from Rs 1000. Under this type of account, we get free e-banking and any branch banking service facilities. This account also provides with the facility of debit card so that it will be more easy and convenient for its customers to carry out their daily transaction. Features: Minimum balance of Rs 1, 000. Visa electron debit card @ Rs 250 per annum, valid in Nepal and India E-Banking facility. Any Branch Banking Services ( ABBS) facility. No maintenance charge. Free Services:

Requirements: Citizenship Certificate or any valid identification card issued by Nepal Government. Two recent PP size photographs.

I Parivar Bachat Khata

Minimum opening balance Rs 2500/Maturity period, Maximum of 3 years Minimum monthly deposit Rs 500/Minors receive cakes on their birthday Parents/guardian is to have an account with NIBL and from their account the money will be transferred to this account through Standing Instruction.

Other Services Personnel Accidental Insurance upto RS 50000/ Free ABBS eBanking service Free Standing Instruction service After Maturity After the maturity of this account, the account can be either transferred to Normal saving or E-zee saving on account holders request. Loan eligibility After 2 years of account operation, account holder is eligible for 80% loan on the total deposit, and the interest will be charged according to the present market rate. Withdrawal before maturity If withdrawal is made before the maturity, the account holder will get only 2.75% interest on the total deposit. Monthly Minimum balance not deposited If deposit is not made for 3 months in a row then the account will be transferred to a Normal Saving Account.

3.7 supporting sytems : a)Cheque Book

For the withdrawal of cash deposited in the account, NIBL provides the facility of cheque book. For issuing cheque, first of all it should be recorded in the cheque register . The serial number entered in the ledger should be assured while issuing the

new cheque book register . The serial number entered in the ledger should be aaured while issuing the new cheque to the old and new customer . b) ATM Cards Most of the customer are using the facility of Visa Debit Card. The ATM cards become ready to collect after 4-5 days of account opening . After the cards are distributed to the customers they are given the pin number after which the carda are activated . c) Balance Statement NIBL issue the balance statement to the client on demand .This statement is distributed if the customers wants to know about the amount debited and credited in their account . The balance statement provides the transaction pu to yesterday . Balance statements are provided to the customers with the help of computer software called FINACLE . d) E-Banking User ID Distribution : Electronic banking services are a vital and indispensable element in providing quality retail banking businesses. so NIBL focuses on to promote and create awareness of utility payments and to be a pioneer in providing more services such as payment of electricity bills, water biils, etc. Through E- banking facility of NIBL, clients can check their balance through internet . For this they will get user password from the customer service department . NIBL has its own website through which it can connect to the clients . The client can use the site to conduct transaction on their account . NIBL has now have 25000 users in E - banking platform giving it one of the highest bases of e-banking of e-banking customers in Nepal.

e)NIBL's Mobile Banking :

NIBL Customers can now subscribe to NIBLs Mobile (SMS) Banking and avail its services. Through this subscription NIBL customers can perform a number of financial and non-financial transactions. Customers will need to send an SMS to 7755 (NIBLs short code) with the keyword (listed below) and avail the service. Customers will be charged Telecoms standard SMS rate while sending the SMS. Customers can subscribe to this service, by filling out a simple form in the Customer Service Department. The PIN is provided to the customer in the PIN mailer. The service will be made available the instance customer sends a PIN change request to 7755.

Features in NIBL Mobile (SMS) Banking

1 2 3 4 5 6

Balance Inquiry Mini Statement Exchange Rate Loan Due Inquiry Debit Card Code Inquiry Credit Card Code Inquiry NT GSM /CDMA Recharge PIN 7 Purchase 8 NCELL Prepaid TopUp 9 Dish Home Recharge 10 BroadLink Wifi 11 BroadTel Recharge 12 Recharge PIN History 13 NT Post Paid Bill Payment 14 NT Landline Bill Payment 15 NT ADSL Bill Payment 16 NCELL Bill Payment 17 Credit Card Payment 18 Fund Transfer 19 Transfer Limit Inquiry 20 Credit Card Limit Enhance 21 eBanking Limit Enhance 22 eBanking Trans Enhance 23 Block Credit Card 24 Block Debit Card 25 Block eBanking
NIBL Mobile (SMS) Banking System Registration

CHAPTER FOUR
CONCLUSION, LESSON LEARNT AND FINDINGS

4.1 Conclusion:
The eight weeks internship period was really a great experience for the intern. The staffs of the NIBL were really supportive and always eager to help when needed. Even though the intern was not able to work in other departments, however working in customer service departments, the intern was able to acquire a lot of experiences and real life knowledge of ways to conducting businesses in banking world. The best experiences were of working with professionals as that gave the intern insight of what the individuals are to expect if they were to get involved in working in any organization.

If individual are to get into the corporate world the first and foremost thing that they need to do is be cheerful and be positive. Being interactive and having the inter personal skill is a must in any organization because in any organization it is never about just an individual it is about working as a team, or working as a system to acquire the organizational goal.

The most essential abilities and skills that you need in working in any

organization are as follows:

4.1.1 Knowledge about the subject matter i.e. the job

Though you are trained before you are provided with the responsibilities, knowledge about the various terms, principles, and other subject matter in theory is a must.

4.1.2 Inter personal skill is a must

Since you have to work with a lot of people with various personalities it is a must to have a good inter personal skills. You have to work as a team, work in a system and work in groups you have to be able to interact with people, get help and provide help to your colleagues, interact with the banks clients, communicate well with you superior staff members etc inter personal skills can get you through.

4.1.3 Professionalism
Professionalism means being professional in your work. However be your nature and your personality but you have to professional in your work conduct. Working within the system, its norms and values, performing your assigned work, professional approach in any problem solving, controlling your emotions, etc are some of the professionalism traits.

4.1.4 Eager to learn and non-hesitation

Working in organization involves a lot of things, you may be assigned any job, any sort of tasks and hence you should not hesitate on anything. Works are never small or big, one has to learn everything in an organization from simple photo copying to account opening, to leading a team in every case you have to be always eager to learn and gain knowledge and should never hesitate because if you are to become a successful manager you have to have all the possible knowledge that you

can gain as you will have to be the leader of a department, branch, or a company as a whole.

4.2 Lessons learnt

After working as an intern for eight weeks the intern learnt a lot of valuable lessons which are as follows: The main thing learnt in the internship is how to be in a real organization among other professional colleagues and how to work with them i.e. maintain a good relationship. The exposure to practical environment has increased both experiences and confidence in tackling the real world problems. The intern learnt to make better decisions using the resources available to her. The intern learnt working knowledge of how banks conduct their various banking activities. The intern learnt about the value of the time, punctuality and relevancy. Further the intern learnt about positive attitude to tasks, and eagerness to learn are most important for any personnel in organization. Similarly one should always have the enthusiasm and should never hesitate to ask if you have any problems. The intern also gained knowledge that one should always be ready to accept challenges as challenges and mistakes are the ladders to success. The intern learnt how to deal with customer, solve their queries in friendly and professional way so as to keep them satisfied and retain them in organization. The intern learnt to be diplomatic in approach. Relationship is the key component in banking sector. You have to maintain good relationship with various business houses, individuals as well as other local people of the area for various purposes.

4.3