CHAPTER 1

INTRODUCTION
1.1 Background of the study
1.1.1 History
The history of the Financial Sector especially Modern Banking Industry can be traced
back to 1694 A.D in England; but as far as Nepalese Banking History is concerned, it is
only a third quarter of a century old, with the establishment of the Nepal Bank limited in
1937 A.D(1994 B.S). Now if we closely analyze the Financial Sector, we will find that
the Financial Sector branches out to two major sub-sectors: the Banking Sector and the
Non-Banking Sector. The Banking Sector encompasses the central bank i.e.., the NRB
and the thirty Commercial Banks; whereas the Non-Banking Sector comprises of
Development Banks, Finance Companies, Co-operatives, micro-finance, and other
financial institutions such as Insurance Companies, Mutual Funds, Provident Funds,
Postal Saving Offices and Nepal Stock Exchange.
BBA is a four-year graduate level program offered by the Faculty of Management P.U.
whose mission is to develop socially responsive, creative, and result-oriented
management professionalsin the rapidly growing business sector in Nepal and abroad.
To do so, the FOM provides both theoretical as well as practical knowledge to its
students. Under its Practical knowledge provision we, the students of BBA, are required
to complete an internship for a period of two months in any organization of our choice
and thereby earn 3 credit hours. To fulfill this very purpose, I worked in Civil Bank
Limited, Gongabu Branch, Kathmandu from 13 sept to 13 November.
This report is prepared on the basis of careful study and the work done in the bank as an
interne referred by college Atlantic International College". The report focuses on
functioning of branch bank and the use of information technology (IT) in the banking
system. The major functions of this branch are deposit, withdrawal, account opening,
clearance of cheques, remitting and collecting cash on behalf of its clients, opening bank
draft etc. The entire major operational are performed using the software named T24.
Thus, the internship has proved to be a wonderful and enlightening experience for me.
Not only did I get the golden opportunity to gain practical, on-the-job experience but I
also got to utilize my conceptual knowledge and enhance my managerial skills.

1.2 Objectives of the study

1

The primary objective of this internship is to gain valuable insights into the business
sector, more specifically the banking industry in addition to this another major purpose is
also to relate the theoretical knowledge with the practical experience and to enable us to
be more prolific in acquiring the real life techniques of achieving results through both
individual effort and team building along with the knowledge gained from the academic
environment. The other specific objectives of the study are:

To study the banking procedure carried out in branch.

To examine different product and services offered by Civil Bank Limited.

To identify the various activities done under the Business Desk

Department.

To gain knowledge and skills necessary to be an effective manager as well

as a leader in an organization.

1.3 Methodology
Research methodology is a systematic investigation on a particular subject matter. It is a
study of material and source in order to establish facts and reach a new conclusion. It is
concerned with the various methods and techniques used in the process of research
studies
1.3.1 Organization selection
Selection of organization for internship program is always a crucial task. Being a student
I had to select a financial institution which could help me broaden my spectrum of
knowledge about the banking, business and financial sector. So I decided to choose Civil
Bank Limited for doing my internship. I thought that it would give me an opportunity to
realize my theoretical knowledge into practical field.
In order to approach the bank, the requirements were the recommendation letter from the
college and curriculum vitae. After screening my CV by the authority of Human
Resource Department (Head Office), I was duly selected as an intern for its Gongabu
branch. So I started working there from 13 Sep 2015 to 13 November 2015.

1.3.2 Placement
During the internship, I was placed in the Business Desk Department at Gongabu
Branch. I was required to handle all the activities of the department under the guidance
and supervision of Mr.Bikash Ratna Kansakar, the BDD head at the branch. In addition to
he, the other staffs were equally cooperative and helped me to learn the activities of the
department. The Gongabu Branch where there are altogether 8 staffs working over there.
1.3.3 Duration
According to the Faculty of Management (PU) we are required to do the internship for a
standard of duration of two month i.e, 8 weeks. So I also worked at Civil Bank for 8
weeks. I worked the entire period in a single department i.e., the Business Desk
Department. The following table illustrates the duration of my internship.
Table No 1.1 Duration of Internship
Weeks
S.N
Departments
1st
1

Business
Department

Desk

2nd

3rd

4th

5th

6th

7th

8th

1.3.4 Activities
During the internship I got the opportunity to perform different activities of the
department. The first 2-3 days I spent gaining information from the staffs of Gongabu
Branch, and then after knowing that, I spent in the information counter where I had to
serve the customers with various information. I also had to help them filling up their
account opening, account closing and many other forms like demand draft, speed remit
form, deposit voucher of customer etc.
I was placed in the customer service section where following tasks are to be performed:
Table 1.2 Activities performed in an organization
Name of the department

Types of activities Performed

Proper counseling to the customer
with politeness.
Informing Customer about different
types of account and other queries
3

Business Desk
Department

they have about the operation of bank.

Opening all types of accounts like
saving, fixed, current, etc.
Uploading the scanned photo and
signature into the Finacle system as
well.
Timely issuance of Cheque books to
customers.
Maintaining proper records of cheque
register.
Distribution of various forms such as
of e-banking, SMS banking, pay bill,
etc. Checking customers transaction
and balance on request.
Proper filing of account opening and
closing forms.
Informing the customers if their
cheque has been returned.
Source:www.civilbank.com.np

1.3.5 Data Collection

For the preparation of my internship report, I collected data from 2 major sources which
are as follows:
a) Primary Source
Personal Interview

Observation.
b) Secondary Source
Annual Reports
Brochures of the bank.
Bank's official website www.civilbank.com.np
Nepal Rastra Bank's official Web Site www.nrb.org.np and Periodicals

1.4 LIMITATIONS
The chief limitations that I faced during the internship and during the preparation of this
report are listed as:

 Limited

access to and the use of the Banking Software, as I was an intern which
prevented me from learning more about the actual transactions and entries in the

system.
Limited knowledge on my part which created hindrance to understand the jargons and
technical procedures of the banking world.
This report only visualizes the activities Business Desk Department of the Gongabu
Branch and not of the entire organization as a whole.
The study is not applicable to other organizations of similar nature and

Finally, the data collected may not be so accurate as information was collected from
the limited personnel and the customer of Civil Bank Limited of Gongabu Branch.

CHAPTER 2
INTRODUCTION OF INDUSTRY AND ORGANIZATION
2.1 Meaning of the bank
Banking sector plays an important role in the economic development of the country. The
word Bank has been derived from the Italian word Banco which means a place for
keeping, lending and exchanging money. The bank is a financial institution, which deals
with money. It accepts deposits from individuals and organizations and grants loans to
them. It allows interest on the deposits made and charges interest on the loans granted.
Since, it accepts deposits and grants loans, it is regarded as the trader of money. Further,
it creates credit and supports for the formation of capital.
The following are some of the main definitions given by different economists:
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.
Kent
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.
Crowther
Bank is an organization established for the purpose of exchange money deposit lending
money and participation in transactions
-Commercial Bank Act of 2031 (Nepal)
From the above definitions, it is clear that the bank is a financial institution accepts
deposits from the public in different accounts and grants loans to individuals and
corporations against their securities. The difference in interest rate on lending and
deposit, interest rate spread, is the major source of income for the bank. Interest on
lending is higher than the deposits. It is an agent of its clients, which remits money,
collects incomes and pays expenses on behalf of them. It performs the wide variety of
functions, which provide utility to the individual, corporation and general public.

2.2 Evolution on Banking Industry

The evolution of banking industry had started a long time back, during ancient times. There
was reference to the activities of the money messengers in the temple of Jerusalem in the
New Testament. In ancient Greece the famous temples of Delphi and Olympia serve as the
great depositors for peoples surplus funds and these were the centers of the money lending
transaction. The history of banking is nearly as old as civilization. In the ancient Rome
and Greece, the practice of storing precious metals and coins at safe places and loaning
out money for public and private purpose on interest was prevalent. In England, banking
had its origin with the London goldsmith who in the 17th century began to accept
deposits from merchants and others for safe keeping of money and other valuables. As
public enterprise, banking made its first appearance in Italy in 1157 AD when the "Bank
of Venice" was founded.
Linguistic (the science of language) and etymology (the study of the origin of words)
suggest an interesting story about the origin of the word "bank." Both the old French
word "Banque" and the Italian word "Banca" were used centuries ago to mean a "bench"
or "money changer's table." Banks are among the most important financial institutions
whose principle operation are concerned with accumulation of the temporarily idle
money with the general public for the purpose of advancing it to others for expenditure.
Thus, the word banking has been used to denote a certain kind of trading in money. A
bank is therefore a corporation that deals in credit i.e. accepts deposits from the public,
withdrawing by cheques and advances loans of various sorts.
The modern economic system cannot function without bank. According to the modern
concept, banking is a business that not only deals with borrowings, lending and
remittance of funds, but it is also important instrument for fostering economic growth.
Presently there are various types of banks established for instance, industrial bank,
commercial bank, agricultural bank, co-operative bank and development bank with
different purpose.

2.3 History of Banking in Nepal

In the country, the development of banking is relatively recent. The record of banking
system in Nepal gives detail account of mixture of slow and steady evolution in the
financial and global economy of Nepalese life. The history of banking in Nepal can be
traced back to 1877 A.D. when Tejarath Adda was established by the government to
provide credit facilities to general public. These unorganized institutions although quite
underdeveloped could still mobilize funds from wide range of different sources. Although
the Tejarath Adda was established, it was not able to facilitate the growing trades with
7

Tibet and India. Thus a need for the establishment of a modern bank had become
essential to promote the trade of the nation. In the year 1923 Treaty of peace and
Friendship were concluded between the Government of Britain and Government of
Nepal. As per the treaty, Nepal could carry on import trade free of duty via India. In other
words, it meant that Nepal was going to diversify its foreign trade and for that the country
needed a modern bank. But it wasnt till 1936 A.D. that the Udyog Parishad (Industrial
Development Board) was set up with the following objectives:To promote and protect the trade, commerce, industries and manufacturers of Nepal, and
to consider and discuss questions connected with or affecting such trade, commerce,
industries and manufacturers, to register and incorporate joint stock companies in
conformity with Nepal Companies Act and also to examine and supervise their workings
and to assist and advise Government of Nepal in economic and financial matters.
Thus, the Udyog Parishad helped in opening new avenues for the advent of banking,
industry and commerce in Nepal and thus helped to enhance the economic status of the
country. A year after its formation, the Udyog Parishad formulated the company act and
the Nepal Bank Act in 1937 A.D. which established the Nepal Bank Ltd. with the
technical cooperation of the Imperial Bank of India, as the first commercial bank of
Nepal. Before 1956 Sadar Mulukikhana Adda (local treasury of the government) issued
currency notes and the foreign exchange reserves of Nepal were maintained by Reserve
Bank of India. During that period the Indian currency along with Nepalese currency was
circulating in the economy. Thus to manage the circulation of national currency and to
maintain exchange rate stability, there was an urgent need for the establishment of a
Central Bank. In 1956, The Nepal Rastriya Bank Act was formulated and Nepal Rastra
Bank was established as a central bank on April 26, 1956. It took over the functions of
Mulukikhana Adda Government Treasury and contributed in the growth of financial
sector.
Rastriya Banijya Bank (National Commercial Bank), a state-owned commercial bank,
was established in 1966. In the same year, The Land Reform Savings Corporation was
established to deal with finances related to land reforms. Now there are many banks and
financial companies in the country.

2.4 Meaning of Commercial Bank

Commercial banks are the major component in the financial system. Commercial banks
come into existence mainly with the objectives of collecting of idle funds, mobilizing
them into productive sector and causing the overall economic development. The
commercial bank is the oldest form of bank. In general, bank that performs all kinds of
8

banking business and generally finances trade and commerce is called commercial bank.
It occupies quite an important place in the framework of every economy.
According to Nepal Commercial Act 2031 B.S. (1974 AD) ,A commercial Bank refers
to such types of bank which deals in money exchange, accepting deposits, advancing
loans, and other commercial transitioning except some special functions done by some
specified bank such as Co-operative Bank, Agricultural Bank and Industrial Banks.
The commercial banks are those banks, which pool together the scattered savings of the
community and arrange for their productive use and generate profit. They accept deposits
from the public and use the money to help the community by making loans to individuals,
organizations, governments and business. Commercial banks, acquire funds from one
group of surplus spending units and making these funds available to other deficit units
facilitating the effective mobilization of resources, which in turn leads to sound economic
growth of the country. The main aim of a commercial bank is to earn profit like any other
business entity. It lends a certain percentage of the cash lying in deposits on higher
interest rate than it pays on such deposits. The difference of interest on deposits received
and loans advanced are the main source of its income. Thus commercial banks are merely
a business firm engaged in financial intermediation as well as perform additional
functions under strict supervision and control of the central bank.
In Nepal Commercial Banks are providing valuable services. Since they are allowed to
perform all kinds of financial functions, they are offering a wide range of services to the
people. In the Deposit side, they have widened their range from normal saving and
current accounts to market-segment specific deposits to attract specific groups of
consumers. Similarly in the Lending side too they have expanded tremendously offering
numerous business, consumer/retail, long-term, short-term loans as well as fee-based
other financial services. Finally in the Investment side, they have ventured into multiple
productive sectors (infrastructure, hydro, hotel, tourism, deprived-sectors, agriculture
etc). Therefore, the fate of the country is greatly determined by the active role of
commercial banks. Banks provides facilities to their customers by providing loans,
remitting funds, purchase and sale of bills and other market information. These services
help to run the business and other economic activities rapidly as well as smoothly which
ultimately helps in economic development.

2.5 Functions of Commercial Bank

Commercial Banks perform an array of functions. The commercial banks are those banks,
which are established to accept deposits and grant loan to the industries, individual and
traders with a view to earn profit. Apart from financing, they also render services like
9

collection of bills and cheques, safekeeping of valuables, financial advising etc. to their
customer. These functions can be systematically categorized as follows:

Primary Functions
Accepting Deposits
Lending
Investment
Secondary Functions
Agency Services

a) Collection and Payment of Cheques

b) b) Standing Instructions
c) Acting as Correspondence
e) Collection of bills-electricity,
telephone, etc

g)

f) Purchase and Sales of

stocks/share- act as a banker to
issue Miscellaneous or General
Services
a) Lockers-trustee
b) Remittance facilities
c) Advisory Services
d) Providing Credit Reports
e) Opening LC
f) Demand in
FOREX/Travelers
Cheque
Complete service in Foreign Trade
h) Other Services: Debit Card, Credit
Card, On-line Banking, SMS Bank

10


2.6 Commercial bank in Nepal

In the context of Nepal the first commercial bank, "Nepal Bank Limited" was
established in 1937 A.D. and the second "Rastriya Banijya Bank" was established
in 1966 A.D.
Nepal has opened its door to foreign commercial banks in the kingdom almost a
decade back. As the country followed economic liberalization, there was massive
entrance of foreign banks in Nepal. Consequently, Nepal Arab Bank was
established in 1985 A.D. similarly the Nepal Indosuez Bank was established as a
joint venture between Nepal and France in 1986 A.D. the legitimate entry of
foreign commercial banks with full-fledged banking functions led to rapid growth
of banking system. After 1990 economic liberalization policy obtained by the
government, now there are 32 commercial banks operating banking activities in
the country.
It can be seen from the above table that commercial banks has grown in Nepal
since first joint- venture commercial bank was established in Nepal in the year
2041 BS. There has not been establishment of new banks after the year 2058 B.S.
But due to improvement in the political and economic condition of the country,
there are chances of establishment of new banks in Nepal.

2.7 Introduction to Civil Bank Limited

Civil Bank Limited (CBL) started its operations in 20 with a view and objective
of extending professionalized and efficient banking services to various segments
of the society. The bank is providing customer-friendly services through its
Branch Network. As a result, Civil Bank has more than 1 lacs customer today. All
the branches of the bank are connected through Anywhere Branch Banking
System (ABBS), which enables customers for operational transactions from any
branches.

The bank has been one of the leading banks of the country and has been catering
its service to various segments of the society since then. With clients from all
walks of life, the bank has helped develop the nation corporately, agriculturally
and industrially. With an aim to help Nepalese citizens working abroad, the bank

has entered into arrangements with banks and finance companies in different
countries, which enable quick remittance of funds by the Nepalese citizens in
countries like UAE, Kuwait, Bahrain, Qatar, Saudi Arabia, Malaysia, Singapore
and U K. so one can say with all earnestly that Civil Bank Limited is truly a
Nepalese bank.

2.7.1 Merge

With the completion of merger with former Axis Development Bank Limited and
former Civil Merchant Bittiya Sanstha Limited, Civil Bank now figures in the Top
Seven Banks in terms of paid-up capital.
2.7.2 Equity structure
The equity structure of Civil Bank Limited as on Fiscal year (2014/15) comprises
of:
Table 2.7 Equity structure of CBL

Authorized Capital

Rs. 8,000,000,000

Issued capital

Rs. 2,887,849,000

Paid up Capital

Rs. 2,887,849,000

The share ownership pattern of CBL is shown in the following

table:
Table 2.7 share ownership pattern

Categories
Gr

Nepalese Promoters Ownership

% of
Holdin
g
68%

General Public

32%

Total

100%

(Source: annual report of civil bank)


The above table shows that local Nepalese promoters hold 68 percent stake in the
banks equity, and the remaining 32 percent is held by the general public.

Figure 2.7: Share ownership patterns

Sales

32%

Promoters Ownersihp
General public
68%

According to above figure the promoters hold 68% and the general public hold
32% of total capital.
2.7.3 Organizational Department

An Organizational structure consists of activities such as task allocation, coordination and supervision which are directed towards the achievement of

organizational aims.CBL has different department in order to facilitate different

types of facilities to the various customers.
a. Human Resource Department:
This department performs the function as recruitment, selection, promotions,
transfer, performance appraisal, training and development of employees, etc.

b. Account/ budget department:

This department is responsible for maintaining and preparing whole budget and
account of the bank. It has all the records of banks operational as well as
administrative expenses.

c. Trade Finance Department:

This department facilitates trade activities both internal and external. In this
department bank acts as an intermediary between supplier and client. This
department issues LC and guarantee.

d. Cash Department:
This department deals with inflow and outflow of the money. EBL collects
deposits and facilitates withdrawal via different counters.

e. Legal Department:
This department looks after the legal aspects of the bank. Policies of the bank are
formulated only after the legal aspects provided under NRB. This department
makes sure of all activities and steps followed in serving a customer are totally
legal.

f. IT Department :
This department is responsible for development and maintenance of network
system and information storing.

g. ATM Shell:
The function of this department is to make cards i.e. debit and credit cards and
provide customer pin codes for their cards and others.

h. Treasury Department:
This department handles foreign currency, Treasury, Transfer and Clearing, etc.

i. Remittance Department:
The function of this department is to facilitate remittance (both internal and
external).

j. Corporate Credit Department:

This department defines the needed documents for particular loan and the
documentation portion of that is done here.

2.7.4 CBL Network

Civil Bank Limited (CBL) with a slogan of Thinking Forward Moving Forward
"provides customer-friendly services through its Branch Network and all it's the
branches are connected through Anywhere Branch Banking System (ABBS),
which enables customers for operational transactions from any branches. The
bank has 41 Branches, ATM Counters across the country making it a very
efficient and accessible bank for its customers, anytime, anywhere. SWIFT are
other modes of communication for efficient and effective transmission of
information where CIVLNPKA is the swift code of CBL.Master card is providing
by CBL to its customer. CBL Debit card can also be used at more than 1300 Point
of Sales (POS) terminals for purchase of merchandise. There is more than 170
remittance payout location in Nepal. It has its own Remittance Product Civil
Remit to enables remit income from the gulf countries.

2.7.5 Corporate Vision

To contribute directly/indirectly in the economic growth of the country by being a

prominent player associated with all classes and sectors of society.

2.7.6 Corporate Mission

To provide excellent professional services & improve its position as a leader in

the field of financial related services.
To build & maintain a team of motivated and committed workforce with high
work ethos.
To use the latest technology aimed at customer satisfaction & act as an effective
catalyst for socio-economic developments.


2.7.7 Objective of Civil Bank Limited

Prudent expansion
Innovation
Didicated customer service
Competitive human resources
Vigilance

2.8 Products /services offered by CBL

CBL has never backed in providing the best products and services to meet the
requirement of its customers be that the existing ones or potential customers. CBL
is indeed successful to provide these entire products through the analysis of the
customer feedback form. Customers satisfaction is the paramount driver at CBL.
The different product and service offered by CBL are as follows:

Saving Account: Saving account offers all facilities required for normal transactions
like deposit, payments with additional facility of debit cards, ABBS. Under the
saving account, the various schemes offered by bank includes Mero Bachat, Kishor
Bachat, Aama Buba Bachat, Gold Bachat, Fixed Deposit, Freedom account, Naari
bachat khata, USD account, Call Deposit and Current Deposit.

Retail Lending: Under retail lending, the various loans offered by CBL are Housing
Loan, Vehicle Loan, Education Loan, Professional Loan, Loan against mortgage,
Loan against future Lease and Rental, and Loan against shares.

Working Capital Finance: The bank services the working capital requirement of
business by assessing the current asset and liabilities.

Project Finance: Depending on the projects rate of return, repayment ability, cash
flow and generation of cash surplus various projects are financed.

Trade Finance: Through an extensive global network that facilitate domestic and
international transaction CBL is able to meet customers need of import, export,
payments through offering facilities like LCs, SWIFT transfers, Guarantees, etc.

Consortium Finance: CBL has been arranging for financial closure of various large
projects through leading consortium finance. The bank has offered such services to
various business segments like Hydropower, Manufacturing Industry and Hospital.
Priority and Deprived Sector Lending: The bank has been extending loan
facilities to priority and deprived sector in the form of direct as well as
indirect lending.

Remittance: In order to facilitate remittances of Nepalese residing in U.A.E,

Bahrain, Kuwait, Qatar, Malaysia and Saudi Arabia, Civil Bank is a step ahead. CBL
is playing a pivotal role in facilitating remittance to and from across globe. The banks
own web based online remittance product. The Bank has it's own remit "Civil Remit".

Following are the facilities provided by CBL to its customers:

A. Any Branch Banking Services(ABBS)

The account holder can deposit and withdraw cash from any of CBL branches
without any transaction charge. They are not restricted to a particular branch to
operate their account. However, customer must obtain cheque book and ATM card
from particular branch from where they opened their account. Customer must pay
Rs 100 charge for using ABBS service outside valley and should not pay any
charge in inside valley.

B. Locker
CBL provides a sound and secure place to keep valuables corporate papers or
bonds/ shares certificate or jewelry through locker service. Any person who wants
to open the locker must have an account at CBL. Locker margin and charge
depends on the size of locker.

C. Debit Card
CBL debit card is a plastic card which provides an alternative payment method to
cash when making purchases or cash withdrawal from ATM centers. CBL Debit
Card having maturity of four years is a key to ultimate convenience regarding
day to day monetary transactions providing customers the power of real cash in
form of card. Associated with Master Card , it facilitates wide sharing of ATMs
under Master Card from more than 650 Locations throughout Nepal.

D. Evening counter
For added comfort and convenience of CBL valued customer, CBL is opened
even after banking hours. Various services are provided during evening counter.
Some of them are as follows:

Acceptance of Deposit.

Withdrawal of Cheque Amounting NPR up to 5.00 Lacs per cheque.

Remittance facility - Online remittance Payment.

Issuance of Drafts.

Accepting of Clearing Cheque mentioning late clearing.

ABBS facility, etc.

Other different services are provided by CBL like: e-banking, weekend banking,
fund transfer, SMS banking, mobile banking, SMS Alert, pay bill banking.

2.9 SWOT Analysis

Table 3.6 An overview of CBLs SWOT analysis

Strength
Weakness

First- class Infrastructure and

advanced technology.
Goodwill.
Quality Service.
Facility of ABBS.
Effective
Inter-departmental
communication.
Pioneer of Online banking.
Involvement in off-balance sheet
activities.
Proper strategic planning and
preparation.

Lack of sufficient ATMs in and

outside valley.
Insufficient marketing.
Availability of only Master Card
based debit card or limited card
services.

Opportunities
New Investment opportunities.
Growing international trade.
Introduction of innovative products,
services and programs.
Installation of updated technology.

Threats

Political instability.

Changing customer preferences.

Changing technology.

Intense competition.

Lack of investment opportunities in

the market.

CHAPTER 3
ANALYSIS OF ACTIVITIES AND PROBLEM SOLVED

3.1 Business Desk Department/Customer Service Department

A company's business desk department handles the concerns of customers. The

department answers customers' questions, attempts to resolve customers'
complaints and tries to sell new services to them. Most companies have a separate
business desk department; although in some cases a receptionist may function as a
customer service representative. In addition to resolving customers' complaints
and answering their questions, the customer service department also takes
suggestions from customers who have new ideas that may improve the image of a
company and attract new customers. For example, a customer may send an email
suggesting that a local supermarket increase the amount of organic products.

The benefits of a customer service department are that the customers' voices are
heard and that it allows businesses to get an assessment of what they're doing
right as well as what improvements need to be made. Customer service
department workers operate in different office environments depending on the
company. Some workers operate in their own separate offices, while others may
work at the front desk. The workers spend much of their time on the phone with
customers and also perform other administrative duties.
In some cases, the customer service department alerts customers about important
information on certain products. For example, the webmaster of a company's
website may place information on products that were recalled for safety reasons.

Customer service is an organization's ability to supply their customers' wants and

needs. Customer service is the ability of an organization to constantly and
consistently exceed the customer's expectations. Excellent customer service is the
process by which any organization delivers its services or products in a way that
allows the customers to access them in the most efficient, fair, cost effective, and

satisfying manner possible. Customer service is a process, not a set of actions that
might include greeting the customer, smiling, etc. Customer service is about how
your organization delivers its products or services. The part that sales people play
in the customer service process is taking the customer through the process in
order for him/her to receive the product they walked in the door to acquire.
Improving customer service involves making a commitment to learning what our
customers' needs and wants are, and developing action plans that implement
customer friendly processes.

The customer service process must be transparent. If an organization can practice

full disclosure in an obvious way in their product information and their contracts,
they are on the way to create customer loyalty. If the customer experiences your
organization as one they were never surprised and never deceived, the
organization will create a competitive edge. Good customer service is all about
bringing customers back. And about sending them away happy happy enough to
pass positive feedback about the business along to others, who may then try the
product or service the bank offer for themselves and in their turn become repeat
customers.

3.1.1 Function and Services provided by BDD(Business Desk Department)

The Customer Service Department or Business Desk Department of Civil Bank

Limited, especially Gongabu Branch, performs the following activities and provides the
following services to its customers:

3.1.1.1 Analysis of Regular/Daily Activities

Account Opening Procedure

Bank Accounts can be opened by both an individual(s, in case of Joint A/c) as

well as a corporate firm (institution). Basically a bank account is a unique computergenerated customer code that allows customers to deposit and withdraw fund. The
Account Opening Procedure is explained as follows:
1) At first, on the visit of the customer in the bank, the customer is asked to fill an AOF
and Signature Card which contains the personal details of the customers
NOTE: The customer should submit a copy of his/her citizenship certificate, two
sets of passport size photos and other required documents according to the deposit
type
2) The BDD staff them verifies all the documents, details and signature and feeds them
into the FINACLE along with the specific a/c type, introducers name (if any).

3) The system then automatically generates the Account Number, which is a 14 digit
code where the first 4 digits represent the Branch code.
4) Then the customer are Start
requested to deposit the minimum balance (or more) of the
concerned deposit type in their a/c. and account number is provided later on.
5) BDD staff will create the customer id of account holders and then forward to
Fill to
a/c
opening form
operation manager
verify.
6) Once the customer id is verified, operation incharge again returned it to BDD for
form scanning.
7) After form scanning, Process
the BDD staff will prepare the ATM card and cheque on
customer request.

Reject application
Figure No 3.1: Flow
Chart of new A/c Opening Procedure
Decision

Approve application

End

Create account

Provide a/c number

Accept minimum deposit

Issue cheque book

End

 Account Closing Procedure

An Account is closed only upon receiving a written request from the

customer/a/c holder. At first, the a/c holder fills up the Account Closing Request
form and submits it to BDD. The customer has to return ATM card and cheque
which are unused to the bank. The bank do not charge for closing the account and
returned all the remaining balance to the customer. After the completion of filling
up the form, it is verified and signature by operation manager and BDD staff.
Thus, finally customer account is closed.

Figure No 3.2: Flow Chart of A/c Closing Procedure

Start

Fill a/c closing form

Process

Decision
Reject application

Approve application

Collect cheque book and ATM cards

Provide remaining balance

Close account

End

End

 Cheque Issuance Procedure

Cheque printing and issuance is the very sensitive task . It is the most regular
activity of BDD. Multiple Cheque Books are printed daily in BDD. The Cheque Printing
and Issuance Procedure are explained as follows:
1. For new account holder, bank provide the cheque without any cost.
2. If customer has to print the cheque for the second time, then customer has to
fill up the requisition slip that contains the date,number of required cheque
leaves, valid signature (stamp of the company in case of current account).
3. After that, BDD staff issue the cheque.
4. The next step after printing of cheque is to enter the record on cheque
registered which is signed by customer and the BDD staff.
.
ATM Card Handling Procedure

The ATM Card at Civil Bank is debit card under the Master Card Network. Civil
Bank takes the charge Rs 1000 for usage of ATM card in three installment. Bank charged
400,300 and 300 respectively in three year period.

Statement Printing Procedure

A Statement of Account is a statement that shows a detailed list of the transactions

(withdrawals and deposits/debits and credits) as well as the closing balance of the a/c as
of the one day before the statement printing. The Statement of Account is provided on
customer request and no any form has to be filled up for statement print. But account
holder must be present for statement print. In case if account holder is not present, the
agent must have the application of statement printing request signed by the account
holder.

Balance Enquiry Handling

During my internship I learnt that Civil Bank takes special caution in disclosing
the balance in any account, which I found very impressive. Customers often come to
BDD for balance enquiry but it is only entertained after establishing the identity of the a/c
holder by checking the photo or signature in the system. Telephonic balance enquiries are
not entertained as far as possible. Only to some highly regular customers whom the staffs
know very well, are given the privilege of Balance Enquiry via phone.

 E-banking

E-Banking allows customers to avail online banking transaction wherever and

whenever required. To use this service the customer has to submit a duly signed & filled
up Application for Internet Banking form to BDD. Then BDD forwards the request to
operation Incharge desk. Then the very next day, the bank provides the user code and
password to the customer. The customers can then full control over their accounts after
collecting the user code and password. The services available include: Balance query,
Check transactions, Send and receive messages and Bank Statement.Bank charges Rs 100
per year for using e-banking Service.

Mobile-banking

Mobile-banking is a system where customers are facilitated to access their

account status and retrieve general information regarding their account and other banking
transaction through their mobile phone. Customers can perform the following tasks such
as: balance enquiry, downloading transaction , recharge card purchasing, make payment,
change PIN code etc. the only work that beer D does in case of mobile-banking is to
collect the Application for mobile Banking form from the interested a/c holder, send it
to the concerned department. The Civil bank does not take any annual charge for mobilebanking but bank charge Rs. 100 annually for SMS Alert. The Bank is providing mobile
banking the collaboration with Hello Paisa.

Customer Query Handling

As a beer BDD staff during my internship, all my time was spent in handling the
numerous queries of various walk-in customers. I gave the information that they wanted.
Many customers were interested to learn about that product, which I happily obliged. In
addition to that, I answered queries about our other products, services, transaction hours
etc. I single-handedly handled all the customer queries via phone as well.

3.1.1.2 Analysis of irregular/ occasional activities

Balance Certificate Printing and Issuance

Balance Certificate is a document issued by a bank stating the amount of

balance/funds maintained by an a/c holder in its bank; usually a balance certificate also
contains a statement from the bank mentioning that the a/c holder has maintained
satisfactory level of transactions with the bank, but this is only mentioned in the case of
satisfactory customers. The balance amount mentioned in the certificate can be either in
NPR or in customer preferred FCY equivalent amount as per the FCY rate on that date.
Customers often visit the bank to issue Balance Certificate. Usually students who are

going abroad for studies come for it. In order to issue the certificate the customer has to
open an a/c with the bank. First of all the customer fills up the Request for Balance
Certificate form. Then the BDD staff issues the certificate in the requested currency
upon obtaining signatures in proper register. A charge of Rs. 500 is charged as a service
charge.

Fixed Deposit (FD) Renewal/Settlement

During my internship I observed that an important task and somewhat complex

and of BDD to open and the Renewal or Settlement of it. Fixed Deposit is an important
a/c for a bank so FD a/c holders are given special attention.

FD A/c Opening: At Civil bank an FD can be opened for a minimum balance of

Rs. 10,000. The interest is calculated daily but with quarterly posting. Hence for the
purpose of interest posting, the a/c holder must also open another a/c in the bank i.e.,
normal saving and interest in fixed account is transferred to normal saving account of
account holder.

FD Renewal/Settlement: Once an FD is opened, the BDD has to keep a close

watch over its expiry date. Upon expiry, an FD can be settled in three ways: it can be
renewed for the next tenure at the prevailing interest rate or the a/c holder can withdraw
the amount or move it to the other a/c where the interest had been accumulated. Hence
before a couple of days before the expiry, the

BDD staff must consult with the a/c holder and do as instructed.

3.1.1.3 KYC Update

KYC is an acronym for Know your Customer, a term used for customer
identification process. It involves making reasonable efforts to determine true identity
and beneficial ownership of accounts, source of funds, the nature of customers business,
reasonableness of operations in the account in relation to the customers business, etc
which in turn helps the banks to manage their risks prudently. The objective of the KYC
guidelines is to prevent banks being used, intentionally or unintentionally by criminal
elements for money laundering. KYC has two components - Identity and Address. While
identity remains the same, the address may change and hence the banks are required to
periodically update their records.

KYC update is the recent activity that is carried out in all the commercial bank as
instructed by Nepal Rastra Bank. So as per the instruction, I distributed and helped the

customer to fill up the KYC form at Civil Bank Limited, Gongabu Branch. For KYC
update, we were told to inform the customer who visit the bank and who doesnt often
visit the bank they were informed through telephone calls.

3.2 Problem Identified and Solved

During my eight-week internship, I also got the opportunity to understand,

identify and solve some of the problems faced by the bank. Here are some problems and
difficulties that exist in the BDD of the bank:
The BDD at Gongabu branch is understaffed. Too much responsibility lies on the
single person who faces a lot of problems during high traffic hours at the bank
There was lack of adequate follow ups with the customer regarding matters such
as informing them to collect their ATMs. Cheque Books, etc
There is frequent technical problems in the ATM machines which has led to
multiple ATM complaints
The task of remittance is also performed at BDD which delayed the other task that
has to perform at BDD.

3.3 Possible Solutions to the problems

After analyzing the problems I tried my best to solve some of them to my best of
abilities. In addition to those, here are the possible solutions to those problems
which could not be solved from my level.

The BDD at Gongabu branch needs to recruit additional staff to handle the
workload of the department. I have brought this matter to the attention of the
Operation Incharge who has assured me to do something about it soon.
I also took the initiative to take the frequent ATM complaints to the Operation
Incharge, and as a result of which, the Gongabu Branch contacted the IT
department at the Head office and had them solve this problem
A possible solution to establish a separate Remittance at the branch to separate
these functions and carry them out more efficiently.

4.1 CHAPTER 4
CONCLUSION, LESSON LEARNT AND
RECOMMENDATION
4.1 Conclusion
From the above analysis it is seemed that CBL is one of most hard working commercial
bank that is dedicated in serving their valued customers with excellence. During this
internship period of 8 weeks, Intern had learnt a lot about the banking activities and
banking operation in the Nepalese market, about CBL in particular. This report has made
intern know about the various kinds of the customer services that CBL has been offering.
The internship has been fruitful in many ways to intern.
Internship has broadened interns knowledge, vision, ability, management skill and
confidence to perform in real working environment. It was a great chance to gain
practical knowledge of banking sector. The practical cases are rather different from that
we study in theory. Further intern has also become versed to get socialize with the
diversified people, to deal with the senior staffs, and to deal with the intern colleague so
as to make the working environment cheerful, pleasant and friendlier. Beside this, the
supervisors were extremely helpful in guiding on our internship program.
It was the great experience working as an intern in CBL. The operational environment
was benevolent. There was good communication, healthy competition and healthy
relationship in between the personnel of CBL. Each and every staff of CBL were totally
professional but still there was a family environment making overall internal working
environment delightful to work with. Working at CBL as an intern was a great
opportunity to develop conceptual and analytical knowledge about banking sector in
Nepal. Thus, the knowledge and experience endowed with this study will surely be
constructive towards the pavement of interns career and professional life.
During my internship what I also analyzed is that the bank is good in providing a good
customer service. Customers always seek quality service at their convenience. Customers
have preferred Civil Bank mainly due to its branch facilities and service quality. They
expect this bank to rise even more to become the leading bank in service quality. Mostly
the customers of Civil bank are satisfied with what they are receiving but there are also
some issues regarding interest rate on deposits and also other factors or room for
improvement for the bank in order to excel even more and be a top banking industry in
years to come. Improvements have to be made from time to time in order to sustain the
satisfaction level of customers and push the bank to a continuous growing path.

4.2 Lessons Learnt

The statement more you learn more you will discover your ignorance has seemed to be
appropriate during this internship period in CBL. Intern has obtained insights into career
opportunities through interaction, observation and work experience in the organization
and also built another step towards success through interpersonal, managerial,
communication and entrepreneurial skills gained from this internship period. Being
exposed to professional working environment, intern has understood the corporate social
responsibility, change the attitude and behavior towards daily life spending. The most
important lesson learned by intern has been listed as follows:
Various operation and activities of BDD, some few in clearing department of bank,
Remittance Department and Loan Department of Bank.
Social exposure with various types of customers from different background since
CBL deals with its different clients in the process of rendering its services.
Learn to face and handle problems effectively and efficiently.
Chance to get familiar with finacle system installed by CBL.
Keeping the account of each and every transaction in file as per the supportive
evidence. So filing is the most important job in the bank.
Along with customer satisfaction, employee satisfaction also plays a great role in
the success of the bank
There was the opportunity to understand different types of stamps and their
respective function that was in use.
Learn the workflow, chain of command and hierarchy of organization.

4.3 Recommendations
With reference to the findings and the conclusion drawn out above following
recommendations can be sorted out:
It is observed that the employees were overburdened because of heavy workload
so they have to stay at head office till late at night. Though they are remunerated
their efficiency is affected. Proper time management or hiring more employees
can reduce their work
Too many interns should not be placed in one department which may lead to
mixing up of works and consequently the co-workers are not satisfied with the
works of interns.
Bank has provided many facilities to the customers like free ATM cards, ebanking but only this is not even, the bank should ensure smooth flow of services
without any complaints from the customers.

 A customer is the first priority so they should be given more attentions and
complaints of the customer should be promptly responded.
All the staffs should be properly trained in using the banking software.
There should be good communication between head office, corporate office and
the branches.
The bank should also show some responsibilities towards the society, by
organizing different social program, sponsoring and promoting educational and
health program.
The bank should monitor the behavior and attendance of the interns so that they
are encouraged to be at their best and feel like a part of their organization.
The branch should follow the manual & destroy the uncollected ATM cards and
cheque books that have not been collected since last year. This would not only
minimize the Operational Risk but also reduce complaints from HO that Gongabu
branch often gets.
The bank needs to be more concerned about functioning of ATM as it may be out
of service time to time

BIBLIOGRAPHY

Manandhar K.D and Pokhrel S.B.(2012), Marketing Financial Services, Buddha

Academic Publisher and Distributors Pvt. Ltd.

Shrestha, M.K. and Bhandari, D.B (2008), Financial Markets and Institutions,

Asmita Publication.
Thapa, K (2065) , Financial Institution and Markets, Asmita Publication.
www.civilbank.com.np
www.nrb.org.np

Publications:
Annual Report of Civil bank Ltd.

APPENDIX

Appendix:1
Table No.1: List of Commercial Banks in Nepal
Paid
Up
Capital(Rs.
In Million)

S.N Names

Operation
Date (A.D.)

Nepal Bank Ltd.

1937/11/15 Dharmapath, Kathmandu

Rastriya Banijya Bank Ltd.

1966/01/23 Singhadurbar, Kathmandu 8588.97

Agriculture
Bank Ltd.

1968/01/02 Ramshahpath, Kathmandu 9636.80

Nabil Bank Ltd.

1984/07/16 Kantipath, Kathmandu

3047.17

Nepal Investment Bank Ltd.

1986/02/27 Durbarmarg, Kathmandu

4146.71

Standard Chartered
Nepal Ltd.

1987/01/30

Himalayan Bank Ltd.

1993/01/18 Thamel, Kathmandu

2760.00

Nepal SBI Bank Ltd.

1993/07/07 Hattisar, Kathmandu

2650.21

Nepal Bangladesh Bank Ltd. 1994/06/05

Development

Bank

Head Office

Nayabaneshwor,
Kathmandu

3965.52

2041.67

NayaBaneshwor,
Kathmandu

2,009.40

10 Everest Bank Ltd.

1994/10/18 Lazimpat, Kathmandu

1921.24

11 Bank of Kathmandu Ltd.

1995/03/12 Kamaladi, Kathmandu

1920.21

12

Nepal Credit and Commerce

Siddharthanagar,
1996/10/14
Bank Ltd.
Rupandehi

1,470.00

13 Lumbini Bank Ltd.

1998/07/17 Narayangadh,Chitawan

1729.73

14 NIC Asia Bank Ltd

1998/07/21 Biaratnagar,Morang

2,311.55

15 Machhapuchhre Bank Ltd.

2000/10/03 Prithvichowk. Pokhara,

2,478.79

16 Kumari Bank Ltd.

2001/04/03 Durbar Marg, Kathmandu 1,603.80

17 Laxmi Bank Ltd.

2002/04/03

18 Siddhartha Bank Ltd.

2002/12/24 Kamaladi, Kathmandu

1,619.24

19 Global IME Bank Ltd.

2007/01/02 Birgunj, Parsa

2,780.86

20

Adarshanagar,
Parsa

Birgunj,

Citizens Bank International

2007/06/21 Kamaladi, Kathmandu
Ltd.

1,694.08

2,101.84

21 Prime Commercial Bank Ltd 2007/09/24 New Road, Kathmandu

2,574.45

22 Sunrise Bank Ltd.

2007/10/12 Gairidhara, Kathmandu

2,015.00

24 Grand Bank Nepal Ltd

2008/05/25 Kamaladi, Kathmandu

2,000.00

25 NMB Bank Ltd.

2008/06/05 Babarmahal, Kathmandu

2,000.00

26

Prabhu Bank Ltd.

2009/05/07 Anamnagar, Kathmandu

3200.00

New
Kathmandu

2,060.00

Baneshwor,

27 Janata Bank Nepal Ltd.

2010/04/05

28 Mega Bank Nepal Ltd.

2010/07/23 Kantipath, Kathmandu

29

Century Commercial Bank

2011/03/10 Putalisadak,Kathmandu
Ltd.

2330.00
1126.00

30 Civil Bank Litd.

2010/11/26 Kamaladi, Kathmandu

30 Sanima Bank Ltd

2012/02/15 Nagpokhari,Kathmandu
2217.60
Source:www.nrb.org

Appendex:2
Table 3.4 Board of Directors
Board of Directors
1.
Mr. Er.Ichchha Raj Tamang
2.
Mr. Ambir Bogati

Designation
Chairman
Director

3.

Mr. Vinod Lal Shrestha

Director

4.

Prof.Dr. Ramesh Dahal

Director

5.

Mr. Prakash Tayal

Director

6.

Mr. Ghanedra Ddr. Shrestha

Director

8.
9
10

Mr. Mitra Lal Shrestha

Mr.Sangam K.C.
Ms.Rita Shrestha

Director
Director
Director

Appendix: 3
Management team
The management team consists of:
Table 3.5 Management team
Management Member Name
1
Mr.Kishor Maharjan
2
Mr.Govinda Gurung
3
Mr. Sarbendra Mishra
4
Mr. Suman Acharya
5
Mr. Bhola B. Bista
6
Mr.Sagar Poudel
7
Mr.Prasidha Raj Aryal
8
Mr.Suraj Bickram Shahi
9
Ms.Mani Thapa Shah
10 Mr.Diwas Karki
11 Mr.Abhijit Shrestha
12 MrSudip Shrestha

Designation
Chief executive officer
Senior executive officer
Operating Officer
Head-Country Risk
Head-Business Banking
Head-IT
Head-Corporate Credit
Head- Marketing
Head-Compliance
Head e-Banking
Head-Human Resources
Research & Development

2217.60

Appendix: 4
Figure: 1 Organization chart of CBL

Board of Director
(Chairman)

Executive Director

DGM
(Marketing)

Legal

DGM
(Credit)

Retail

AGM
Company Secretary
AGM
(Planning & Development)
(Operation)

Corporate

Finance/ Tax/ Inspection,

A/C, NRB/ Budget

Appendix: 5

MKT

Reconciliation

HRD

Treasury

Security Guard

IT

Table 2: Performance of CBL

FOREX

Particular

2067/68

Domestic

2068/69

2069/70

2070/71

Total Business. (Rs in Ten Million)

124,435

296,619

569,066

7,278.97

Operating Cost. (Rs in Million)

91,054

207,075

302,028

1516.69

Operating profit (before tax)

33,381.00 89,543.00 267,038.537 421578.486
Net Profit

Bonus to employees

1,168

28,234

121,325.647 238,099.256

17,332.236

33,951.557