AN INTERNSHIP REPORT

Based on internship at Nepal SBI Bank Ltd (NSBL)

(Duration: February 1st to April 30th)

BY

Nirmala Sinjali

Symbol No. 21771/18

T.U. Reg No. 7-2-49-188-2018

Submitted to

Faculty of Management, Tribhuvan University

In partial fulfilment of the requirements for the degree of

Bachelor of Business Administration

At the

Tribhuvan Multiple Campus

Tribhuvan University

Tansen, Palpa

September, 2023
 AN INTERNSHIP REPORT

Based on internship at Nepal SBI Bank Ltd (NSBL)

(Duration: February 1st to April 30th)

BY

Nirmala Sinjali

Symbol No. 21771/18

T.U. Reg No. 7-2-49-188-2018

Submitted to

Faculty of Management, Tribhuvan University

In partial fulfilment of the requirements for the degree of

Bachelor of Business Administration

At the

Tribhuvan Multiple Campus

Tribhuvan University

Tansen, Palpa

September, 2023
 STUDENT’S DECLARATION

I hereby declare that my internship report submitted to the faculty of Management,

Tribhuvan University, is an original work under the supervision of Sujay Pradhan,
Faculty of Management at Tribhuvan Multiple Campus, in the partial fulfilment of the
requirements for the degree of Bachelor of Business Administration (BBA). This is my
original work which I have not submitted earlier elsewhere.

____________

Nirmala Sinjali

September 2023

ii
INTERNSHIP CERTIFICATE

iii
 APPROVAL SHEET

We certify that the Internship Report

Submitted by:

NIRMALA SINJALI

Is an academic work submitted in partial fulfillment of the requirements for the degree
of Bachelor of Business Administration (BBA), Tribhuvan University under my
guidance and supervision. To the best of our knowledge, the information presented in
the internship report has not been submitted earlier and the intern successfully defended
the report at Tribhuvan Multiple Campus, Palpa.

---------------------- ----------------------- -------------------------

Sujay Pradhan Keshav Ghimire Tanka Prasad Bhattrai

Supervisor Program Director (BBA) Campus Chief

iv
 ACKNOWLEDGEMENTS

The report is prepared for the partial fulfillment of the requirements for the degree of
Bachelor of Business Administration offered by Tribhuvan University, based on the
activities performed and lesions during the internship period. I would like to express
my deep and sincere gratitude to Tribhuvan University, for providing a great
opportunity to enhance my educational knowledge and build up skills in practical
working conditions.

Firstly, I would like to express my sincere gratitude to my supervisor, Sujay Pradhan,

for his endless guidance, valuable advice, continuous encouragement, and elevating
inspiration. Secondly, I am thankful to my campus chief Tanka Bhattrai and
coordinator Keshab Ghimire for providing support and other necessary documents
during the internship program and report preparation.

I would like to evince my sincere appreciation to Basanta Guragain, Branch manager

for allowing me to be part of an organization. Also I would like to thank Shreya
Bajimaya, operation incharge for her guidance. I would like to thank Khum Bahadur
Darlami and Manisha Khanal for their proper guidance, suggestions and
encouragement in directing me on the right track despite their demanding schedule.
Further, I would like to thank Neelam Khanal, Manisha Gaire, Manjila Sharma, Bimal
pokharel, Suresh Prajapati, Ruby Upreti for their kind co-operation and support during
the overall internship period.

Lastly, I would like to give sincere thanks to my parents, my teachers, and friends for
making this study esteemed by providing consistent encouragement, support, and a
congenial atmosphere to complete it.

Nirmala Sinjali

September, 2023

v
Contents

TITLE PAGE

STUDENT’S DECLARATION ii

INTERNSHIP CERTIFICATE iii

APPROVAL SHEET iv

ACKNOWLEDGEMENTS v

LIST OF TABLES viii

LIST OF ABBREVIATION ix

CHAPTER I 1

INTRODUCTION 1

1.1 Background 1

1.2. Objectives 2

1.3. Methodology 2

1.3.1. Organization selection 3

1.3.2. Placement 3

1.3.3. Duration 3

1.3.4. List of activities performed 4

CHAPTER II 5

INTRODUCTION OF BANKING INDUSTRY 5

2.1. Background 5

2.1.1. History 6

2.2. History of bank in Nepal 7

2.2.1. Origin of bank 7

2.3. Commercial banks 8

2.4. Functions of commercial banks 9

2.4.1. Primary functions 9

vi
 2.4.2. Secondary functions 10

CHAPTER III 11

INTRODUCTION TO NEPAL SBI BANK LIMITED 11

3.1. Background 11

3.2. Vision, mission, and values 12

3.3. Corporate structure and design 12

3.4. Branch network of NSBL 13

3.5. Board of directors 13

3.6. Management team 13

3.7. Department of organization 14

3.8. Product and services of Nepal SBI Bank Limited 14

CHAPTER IV 16

ANALYSIS AND ACTIVITIES PERFORMED 16

4.1. Customer service department 16

4.1.1. Account opening process and requirements 17

4.1.2. Account closing process and requirement 19

4.1.3. Preparing and distributing functions 20

4.1.4. Miscellaneous functions: 22

4.2. SWOT analysis 22

CHAPTER V 24

CONCLUSION 24

5.1. Lesson learnt 24

5.2. Conclusion 25

REFERENCES

APPENDIX -I

APPENDIX –II

vii
 LIST OF TABLES
Table no 1. 1 Placement and duration .................................................................................. 3
Table no 3. 2 List of board members .................................................................................. 13
Table no 3. 3 List of management team ............................................................................. 14

viii
 LIST OF ABBREVIATION

ATM: Automated Teller Machine

BOD: Board of Directors

CSD: Customer Service Department

NRB: Nepal Rastra Bank

NSBL: Nepal SBI Bank Limited

PAN: Permanent Account Number

SBI: State Bank of India

SMS: Short Message Service

ix
 CHAPTER I

INTRODUCTION
1.1 Background
Bachelor of Business Administration (BBA) program is the undergraduate level
program offered by Tribhuvan University (T.U) that aims at developing students’
intellectual ability, managerial skills, and executive personality. Tribhuvan University
(TU) established in 1959, is the first national institution of higher education in Nepal.
TU is currently offering a BBA program which is a four year program consisting of
eight semesters and has a total of 120 hours aiming to provide required mix of theory
plus practical course. BBA at Tribhuvan University and affiliated college includes class
lectures, group discussions, case studies, research work, project work, assignments, and
term papers. BBA is a blend of computer and management course. Besides, it has been
growing as one of the demanding course of study that holds several job opportunities.

The objective of the BBA program at Tribhuvan University is to prepare students for
middle-level management by enhancing their capacity to understand and solve practical
business problems creatively. To attain this objective, the curriculum is designed to
cover different course components such as management and allied courses, computer-
related courses, specialization related courses summer project and internship. And these
courses are well-drafted to provide students with adequate theoretical knowledge and
practical learning. Evaluation of students is done accordingly: internal evaluation for
assessing practical learning and external examination for assessing students’ theoretical
knowledge. The internship during the last semester is a must to complete the BBA
degree.

Internship is an eight weeks program designed to provide students an opportunity for a

meaningful career-related experience in a real organization setting before they
graduate. It gives the students an opportunity to practice and expand their skills and
knowledge learned in the classroom in substantive work situation. In addition, it will
help the students earn credit and increase marketability for the permanent job search
 2

while learning more about a specific field and applying classroom knowledge in a
corporate environment. The internship program

Therefore, to fulfillment the academic requirement, I choose to work in Customer

Service Department of Nepal SBI Bank Ltd, this project report is basically focused on
the services provided, tasks and other general activities, which are done at the
Customer Service Department. After the completion of the internship, we are required
to prepare and submit an internship report based on the experience and knowledge that
we learned during eight weeks in the respective organization. This report is based on
the internship completed in Customer Service Department of Nepal SBI Bank Ltd
Palpa from February 1 to

1.2. Objectives
The general objectives of doing an internship were to get practical experience and
explore theoretical understanding in a real organizational setting. Further, the purpose
of internship was to learn day-to-day activities, acquire learning as well as working
experience and gain practical exposure in the real life working situation. The specific
objectives that were set prior to the internship were:

 To gain practical knowledge about banking practices.

 To be adapted to the real life working environment.
 To learn about the overall functions of different departments of NSBL namely
Customer Service Department, Credit Department in brief.
 To identify the various services and facilities rendered by bank.
 To develop the communication skills and interpersonal skills by communicating
with the customers in the CSD.
 To increase performance by interacting with different people.
 To learn about customers’ attitude towards the service provided by the bank.
 To learn the process of account opening, account closing, cheque issuing,
delivering of ATM and its pin.
 To gain the knowledge about E-banking services of the bank

1.3. Methodology
This report has been prepared on the basis of eight weeks internship experience gained
mostly at Customer Service Department of Nepal SBI Bank. Interaction with the staffs
 3

and the operational knowledge gained is the major source of primary data for this
study. Besides, the website of the bank, previous internship reports and the bank’s
annual report are the source of secondary data.

1.3.1. Organization selection

As per the TU criteria, the organization selected must be a registered organization
under the prevailing law of the nation. Other than that, there was no restriction on
selecting the organization.

In order to select organization, I first personally visited and dropped my college

recommendation letter and my curriculum vitae at Nepal SBI Branch office, Palpa. The
bank accepted my request and I was provided opportunity to do my internship at Nepal
SBI Bank Limited, Branch office at Palpa.

1.3.2. Placement
During the eight weeks of internship, intern was mostly placed in Customer Service
Department (CSD). However, the opportunity of gaining insight knowledge about the
operational process and other activities of various departments within the branch was
also provided in the bank. The encouraging and cohesive environment made the
process of learning easier.

1.3.3. Duration
The duration of the internship as per the requirement of the 8th semester is eight weeks.
I had started the internship period effective from February 1 to April 30. During this
period I came to learn many more about the working environment, work procedure and
culture in customer service department. Even though I was assigned many tasks but my
task were limited to the CSD.

Table no 1. 1
Placement and duration

Name of department Weeks

Customer Service Department 1-8 weeks
 4

1.3.4. List of activities performed

 Dealing with customers
 Providing information about different banking products and services
 Account opening
 Assist customers to fill out the opening form correctly and also obtain all
necessary documents
 Issue of cheque book
 ATM card issuance
 CHAPTER II

INTRODUCTION OF BANKING INDUSTRY

2.1. Background
In an economy bank is regarded as one of the economic backbone of the country for its
development. Bank is a financial institution that deals with money. The word bank
comes from Italian word “Banco,” French word “Banque” and Latin word “Bancus”
which means a bench. A bank is a lawful organization that accepts deposits that can be
withdrawn on demand. Banks are institutions that help the public in management of
their finances, public deposit their saving in banks with the assurance to withdraw
money from the deposits whenever required. The basic function of bank is collecting
deposits and granting loans. In additional to this, a bank may be engaged in different
types of functions such as remittance of money from one place to another, exchange
currency, bank guarantee, discounting bills etc.

It is clear that the organization that accept the deposit and provided the bank. Bank is
called the factory of credit because it manufactures credit and sells it. Various writers
have been define the word “Bank” in different ways. According to NRB act 2002,
Banks if financial services that may be in the form of receiving deposits, advance loan,
providing necessary technical advices, dealing over foreign currencies, remitting a from
funds, etc. a bank is a company that ]provides financial services of various sorts to
various types of customers. It’s major function are to gather money from various
people and lend that money out to other people.

Nepal is an under developed country where capital is not distributed equally. Thought
there is potential for funds. Even those available funds are ideal. Due to this, banking
has emerged in Nepal. Bank provided capital for the development and expansion of
industry, trade, and business by investing saving, which is collected as deposit and
savings. It plays an important role for collecting idle saving of one sector and
mobilizations those saving to provide sector. Thus banking occupies a place of crucial
importance in any economy. It’s role is even more important to the developing
countries like Nepal. Today, the success or the failure of the business organization
depends on the responses of the customers.
 6

They are the backbone of any kinds of business. This thesis is critical study on the
customer behavior and the services provided by the commercial banks. There are
currently 26 (Class A) banks and 18(Class B) banks in Nepal as per the Nepal Rastra
Bank report of Mid July 2022.

Commercial Banks are those banks, which perform all kinds of banking function as
accepting deposits, advancing credits, credits creation and agency functions etc.
Commercial banks are financial intermediaries who raise funds primarily by issuing
checkable deposits (deposits on which checks can be written), saving deposits (deposits
that are payable on demand but do not allow their owner to write checks), time deposits
(deposits with fixed term to maturity). They then use funds to make commercial,
consumer, and mortgage loans and to buy government securities and municipal bonds.
Though the main function of commercial bank is to collect deposits from depositors
and to invest on profitable sectors by avoiding risks, these days, the commercial banks
are moving towards the micro financing sectors like education loan, housing loan etc,
because of low risk and lack of proper and secured investing sectors.

2.1.1. History
Bank is a financial institution that deals with money. The word bank comes from Italian
word “Banco,” French word “Banque” and Latin word “Bancus” which means a
bench. A bank is a lawful organization that accepts deposits that can be withdrawn on
demand. Banks are institutions that help the public in management of their finances,
public deposit their saving in banks with the assurance to withdraw money from the
deposits whenever required. The basic function of bank is collecting deposits and
granting loans. The history concept of banking activities deepens its toots to the past
when people started having their properties. People started the saving concept. People
identified gold as a means to store their wealth. More the gold you have, wealthier you
are than others. Thus the wealth was compressed into the convenient form of gold
brings one disadvantage. Unless well hidden or protected, it is easily stolen. So there
need a safest place to hide gold.

The first regular institution resembling what we call a Bank was established at Venice,
nearly seven hundred years ago. The increase of trade in 13th century Italy prompted
the revival of banking. The money changers of the Italian states developed facilities for
exchanging local and foreign currency. Soon merchants demanded other services, such
 7

as lending money, and gradually bank services were expanded. The first bank in the
world was established in Venice in 1157 AD. Historians conflict with facts. Some
argue that the Bank of Venice (1157AD) was just a chamber of loans and was not a
perfect bank at all. Some believe that the first bank to offer most of the basic banking
functions known today was the Bank of Barcelona in Spain. This bank held deposits,
exchanged currency, and carried out lending operations. It also is believed to have
introduced the bank check. Three other early banks, each managed by a committee of
city officials, were the Bank of Venice (1157AD), the Bank of Amsterdam (1609), and
the Bank of Hamburg (1619). These institutions laid the foundation for modern banks
of deposit and transaction.

2.2. History of bank in Nepal

2.2.1. Origin of bank

The modern history of banking in Nepal does not have a long history. It is still in its
infancy stage. It was flourished after financial liberalization policy adopted in 1980s.
While talking about the actual history, it is assumed that the history, it is assumed that
the history of coinage began from /around 5th century AD. Around the 12th century Ad,
silver coinage was in practice which made the scope of trade wider. At the end of
14th century, the term “Tanka Dhari” meaning “Money Dealer” was used.

In 1877 AD, Prime Minister Ranoddip Singh introduced financial and economic
reforms. “TejarathAdda” was established at that time to provide credit facilities to the
general public. Credit facility was given by “TejarathAdda” on the basis of collateral of
gold and silver. Government employees would get credit at ease because government
would pay them less to deduct the credit amount. Chandra Shamsher extended the
services of TejarathAddaoutside valley. TejarathAdda extended credit facilities to more
and more general public and did not accept deposit from public. Due to this reason,
TejarathAdda finally faced a crisis. People started borrowing from money lenders who
charged a high interest rate and other dues. Although “kaushi Tosh Khana” was
established during the regime of Prithivi Nararyan Shah, Tejarath Adda is regarded as
the foundation of modern banking in Nepal.

In 1937, Nepal Bank Limited (NBL) with the co-operation of Imperial Bank of India
came into existence. NBL played dual role of commercial bank as well as central bank
until 26th April, 1956, on which date, Nepal Rastra Bank (NRB) was established. NBL
 8

was a semi government bank. Rastriya Banijya Bank (RBB) was established in
23rd January, 1966. Nepal Industrial Development Bank (NIDC) was established as a
development bank in 1959 and Agricultural Development Bank (ADB) was established
in 1968. Since 1984 the ADB has also been allowed to do commercial banking in
selected urban areas with the aim to mobilize resources domestically and channel funds
to the agriculture and rural sector. Nepal adopted financial liberalization policy in 1984
by amending Commercial Bank Act 1974. Liberalization was adopted to welcome
private sector in banking industry and to increase competition among them.

2.3. Commercial banks

Commercial Banks are those banks, which perform all kinds of banking function as
accepting deposits, advancing credits, credits creation and agency functions etc.
Commercial banks are financial intermediaries who raise funds primarily by issuing
checkable deposits (deposits on which checks can be written), saving deposits (deposits
that are payable on demand but do not allow their owner to write checks), time deposits
(deposits with fixed term to maturity). They then use funds to make commercial,
consumer, and mortgage loans and to buy government securities and municipal bonds.
Though the main function of commercial bank is to collect deposits from depositors
and to invest on profitable sectors by avoiding risks, these days, the commercial banks
are moving towards the micro financing sectors like education loan, housing loan etc,
because of low risk and lack of proper and secured investing sectors.

A commercial bank is a type of financial intermediaries and a type of bank.

Commercial banking is also known as Business Banking. It is a bank that provides
checking accounts, savings accounts, and money market accounts and that accepts time
deposits. Commercial bank is the term used for a normal bank to distinguish it from an
investment bank or retail bank. It raises funds by collecting deposits from businesses
and consumers via checkable deposits, saving deposits, and term deposits. It makes
loans to businesses and consumers.

In Nepalese context, Nepal Commercial Bank Act 2031 (1974), section 2(a) defines “A
commercial bank is one which exchange money, deposit money, accepts deposit, grants
loans and performs commercial banking functions”. The commercial bank are those
banks which perform all kinds of banking functions as accepting deposit, advancing
loans, credit creation, and agency functions. They supply the financial needs of modern
 9

business by various means. They accept deposits from public on the condition that they
are repayable on demand or on short notice. All the banks established under
Commercial Bank Act 2031, Company Act 2053 and Central Bank 2058 are termed as
Commercial Banks.

2.4. Functions of commercial banks

Commercial banks play a crucial role in the financial system of a country by offering a
wide range of financial services to the individuals, businesses, and the government.
Their functions can be categorized into the following main three functions:

2.4.1. Primary functions

The primary functions of commercial banks are the core activities that form the
foundation of their operations. These primary functions include:

a) Accepting deposits:

Commercial banks provide a safe place for individual and businesses to deposit their
money. They offer various types of deposit accounts, such as savings accounts, current
accounts to provide service to the customers. The amount deposited in bank for fixed
period is known as fixed time deposit. The amount deposited under this type of
account cannot be withdrawn before maturity. The deposit in this account pays higher
interest in comparison to other accounts .Under savings, customers can deposit as well
as withdraw money at any time. This account also pays interest but less than that under
fixed account. Similarly in current account, customers can draw money many times in
a day according to their necessities in which the bank does not pay any interest to the
amount deposited under this account.

b) Providing loans and credit:

Banks lend money to the individuals, business, and other entities for various purposes.
This function involves assessing creditworthiness, disbursing loans, and collecting
interest and principal payments. Lending is critical function as it helps stimulate
economic activity and growth. Commercial banks lend their money to the needy
borrower for short term, medium term and long term by charging different rates of
interest.
 10

2.4.2. Secondary functions

Secondary functions of commercial banks are additional services and activities that
banks offer to enhance their operations and better serve their customers. Secondary
functions of commercial banks include:

a) Collection and payments of funds:

Banks assist in the collection of funds on behalf of their customers. This includes
collecting payments, dividends, and interest income. They also help customers pay
bills, taxes, and other obligations through services like electric bill payment.

b) Remittance services:

Banks provide remittance services, allowing customers to transfer funds domestically

and internationally. This includes services like wire transfers, electronic funds transfer,
and internationally money transfer, which are essential for trade and international
finance.

c) Income receiving and payments:

Commercials banks receive dividend, interest on debentures and bonds of customers.

They also receive and make payments of insurance premiums, rent and income taxes of
their customers.

d) Purchase and sales of securities:

Commercials bank purchase and sale the securities like shares, debentures of their
customers in stock exchange and other capitals markets.

e) Online and mobile banking:

Banks offer online and mobile banking services, enabling customers to access their
accounts, make transactions, and perform various banking activities through digital
platform.
 CHAPTER III

INTRODUCTION TO NEPAL SBI BANK LIMITED

3.1. Background
State Bank of India is an Indian multinational public sector bank and financial
services statutory body headquartered in Mumbai, Maharashtra. SBI is the 49th largest
bank in the world by total assets and ranked 221st in the Fortune Global 500 list of the
world's biggest corporations of 2020, being the only Indian bank on the list. It is a
public sector bank and the largest bank in India. On 14 september 2022, State Bank of
India became the third lender and seventh Indian company to cross the IC 5- trillion
market capitalism on the Indian stock exchanges.

Nepal SBI Bank Ltd. (NSBL) is the first Indo-Nepal joint venture in the financial sector
sponsored by three institutional promoters, namely State Bank of India (SBI),
Employees Provident Fund (EPF) and Agricultural Development Bank Ltd. (ADBL)
through a Memorandum of Understanding signed on 17th July 1992. NSBL was
incorporated as a public limited company at the Office of the Company Registrar on
April 28, 1993 under Registration. No. 17-049/50 with an Authorized Capital of Rs.12
Crores and was licensed by Nepal Rastra Bank on July 6, 1993 under license No.
NRB/l.Pa./7/2049/50. Nepal SBI Bank Ltd. (NSBL) is a subsidiary of State Bank of
India (SBI) having 55 percent of ownership. The local partner viz. Employee Provident
Fund holds 15% equity and General Public 30%, in terms of the Technical Services
Agreement between SBI and the NSBL. NSBL was established in July 1993 and has
emerged as one of the leading banks of Nepal, with 976 skilled and dedicated Nepalese
employees (as on Poush end 2079) working in a total of 133 outlets that include 93 full-
fledged branches, 22 extension counters, 7 Province offices, 10 Branchless Banking
Outlets and Corporate Office . With presence in 51 districts in Nepal, the Bank is
providing value added services to its customers through its wide network of 130 ATMs
(4 CDMs), internet banking, mobile wallet, SMS banking, IRCTC Ticket Online
Booking facility, etc. The bank, as far as possible, offers tailor-made facilities to its
clients to its customers. Nepal SBI Bank has been adopting innovative and latest
banking technology (FINACLE).
 12

This has not only helped the Bank to constantly improve its service level but has also
kept it prepared for future adoption of new technology.

3.2. Vision, mission, and values

Vision: be the most preferred bank for a transforming Nepal

Mission: to provide high quality, reliable and innovative financial solutions

Values: service/ transparency/ ethics/ politeness/ sustainability

Aspiration: to be the most trusted and preferred banking utility/ financial service
provider in Nepal

Commitment: first in customer satisfaction

The overall strategic goal is to build an open and honest corporate culture and to
develop mutually beneficial relationship with all the stakeholders and create value for
them. Nepal SBI Bank Limited aim to reach strategic goals by:

 Creating a great environment to work in.

 Investing in local communities in which the bank operates, for the benefit of
society at large
 Caring for customers’ evolving needs and expectations by providing suitable
and tailor made products and services.
 Ensuring reasonable returns on investment for the shareholders.

3.3. Corporate structure and design

Nepal SBI bank limited (NSBL) is subsidiary of State Bank of India (SBI) and operates
in Nepal. The highest governing body of bank is the Board of Directors (BOD) which
is composed of seven members consisting four members nominated by SBI, two
members elected as representative of general public from Annual General Meeting
(AGM) and a member nominated from EPF. Besides the BOD, there is provision of
Central Management Committee (CENMAC) which consists of Managing Director
(MD), also nominated Board Member from SBI, Chief Operating Officer (COO), Chief
Financial Officer (CFO) and Chief Credit Officer (CCO). The overall management of
the bank is conducted by the BOD and CENMAC.
 13

3.4. Branch network of NSBL

Nepal SBI Bank Limited (NSBL) had a significant branch network across Nepal. Nepal
SBI Bank have branches in major cities, towns, and regions across the country to
provide a wide range of banking services to their customers. These services may
include deposits accounts, loans remittances, foreign exchange, and more. The bank has
total of 135 outlets that include 97 full-fledged branches, 22 extension counters, 7
province offices, 11 branchless banking outlets and corporate office. With presence in
51 districts in Nepal, the bank is providing value added services to its customers
through its wide network of 123 ATMs, internet banking, mobile banking, SMS
banking etc.

3.5. Board of directors

The Board of Directors typically consists of individuals with diverse expertise who are
responsible for setting the bank’s strategic direction, policies, and overseeing its
operations. These directors play crucial role in the governance and decision making of
the bank.

Table no 3. 2
List of board members

Position Name of position holder

Chairman Ms. Jayati Bansal
Director Mr. Pinali Nath Banerjee
Director Mr. Bharat Raj Wasti
Director Ms. Apsara Upreti
Independent Director Dr. Gopal Prasad Bhatta
Managing Director (MD) & Chief Executive Mr. Dipak Kumar De
Officer (CEO)

3.6. Management team

Management teams are responsible for lending and overseeing the organization’s
operations. NSBL is under the management of pure professional. The team consists of
managers acting as head of different departments. In pursuing their own task they
supervise and coordinate all their subordinates. They mould the efforts of the team on
achieving the overall goal of the organization. Board of directors formulates the vision,
 14

mission statement and objectives for the organization and the managers on their part are
engaged in devising an action plan to achieve those objectives. NSBL have a
centralized type of management because all the decisions are taken by the top
management.

Table no 3. 3
List of management team

Name Designation
Mr. Dipak Kumar De Managing Director (MD) & Chief Executive
Officer (CEO)
Mr. Md. Rizwan Alam Deputy CEO & Chief Financial Officer (CFO)
Mr. Yadvender Kant Chief Operating Officer (COO)

3.7. Department of organization

1. Customer Service Department (CSD)
2. Bills and Remittance Department (RMT)
3. Credit Control Department (CCD)
4. Trade Finance Department
5. International Banking Department
6. Administration Department
7. Legal Department
8. Treasury Department
9. Human Resources Department
10. Reports and Reconciliation Department
11. General Service Department

3.8. Product and services of Nepal SBI Bank Limited

Nepal SBI Bank Limited (NSBL) offers a range of banking products and services to
cater to the financial needs of its customers. NSBL is growing up in terms of tenure of
its operation. A lot of investment of both time and capital has been put into bring
innovative products and services that caters the need of its customer. The product and
services offered by the bank are as follows:
 15

1. Deposit products

NSBL typically offer a range of deposit products to meet the financial needs of its
customers. These deposit products allows customers to save and invest their money
while earning interest. NSBL has introduced various personalized products and services
that harmonized different banking requirements of its customers. Designed with arrays
of features, deposit products of NSBL are one of the best in the market. The deposit
base comprises of various types of depositors ranging from general public, business
houses to institutional depositors. NSBL tailor made and personalized deposit products
and services meet the needs in today’s fast paced and competitive business world. The
services are characterized as being easy, secure and attractive modern banking
facilitates that provides high returns to the surplus fund, makes personal banking
convenient and efficient thus diversifying the portfolio to best suit the investment plan.

At present following deposit services are provided by NSBL:

 Nepal SBI Premium Saving Scheme

 Social Security Account
 Sambriddha Nagarik Bachat Khata
 NSBL Nari Bachat Khata
 Saral Bachat Khata
 Varista Nagrik Bachat Khata
 Ujjawal Bhavisya Bachat Khata
 NSBL Baal Bachat Khata
 Students Account
2. Loan and advances
 Personal Loans
 Home Loans
 Education Loans
 Business Loans
 Agricultural Loans
 Bhu pu Loans
3. Other services
 Online Banking System ( E-Banking and SMS Banking )
 CHAPTER IV

ANALYSIS AND ACTIVITIES PERFORMED

This chapter mainly focuses on the activities performed by the internee during the
internship period. For the whole internship period internee was placed in Customer
Service Department. However the opportunity to work under different department was
very fruitful for the internee as the internee got an overview of the entire major task
undertaken at respective department even in short span of time. The general activities
for an internee at the customer service department was opening account of the
customer, distributing ATMs, issuing cheque book, and providing various information
about the products to the customers.

4.1. Customer service department

The customer service department of NSBL plays a vital role in ensuring that customers
have a positive banking experience and receive assistance with their inquiries, request,
and concerns. The department focuses on providing high-quality customer service and
maintaining strong relationships with clients. Customer Service department is a primary
level department that generally deals with customers directly and regularly. This
department is basically directed towards providing the surface level assistance to the
customers i.e., to provide general information about banking system, product and
services provided by the bank. The department is responsible for providing the basic
materials like deposit vouchers, cheque book, bank statement, balance certificate, cards.

Customer Service department is a primary level department that generally deals with
customers directly and regularly. This department is basically directed towards
providing the surface level assistance to the customers i.e., to provide general
information about banking system, product and services provided by the bank. The
department is responsible for providing the basic materials like deposit vouchers,
cheque book, bank statement, balance certificate, cards.

The very first thing that the people seek in the organization is the prompt service and
the person at the customer service desk properly handles them. The people at the
customer service desk must be ready to sort out every problem at any moment.
 17

The customer service division can answer questions, resolve problems, and help you
establish new accounts and services, and providing information on products, forms, and
publications. The increasing competition in the banking sectors demands more service
proliferation, which would satisfy the demand of the customers. Banks and other
financial institution are introducing more and more innovative services such as ATM,
debit card, internet banking, locker services and various other services for their
customers to serve them more efficiently and effectively. Customers seek in
organization the prompt service and the person at the customer service desk properly
handled them. The people at the customer service desk must be ready to sort out every
problem at any moment. A customer is the most important visitor on the business
premises.

Customer Service Department or CSD is oriented towards handling customer queries

and grievances. Remaining in this department Intern tried to grab the overall general
information about different departments and procedures of activities related to them.
Actually, it is the most appropriate department for intern because all the customers at
first come to CSD to get the information of anything they need to do with bank. Staffs
who stays in the CSD need to have the general information about all the departments
and their procedures. The major and the interesting task in CSD is dealing with
customers. Different faces with different quires, interest and perception makes the
counseling more interesting and challenging too. The important task the intern learnt at
this department can be described as below:

4.1.1. Account opening process and requirements

Bank typically involves several steps to ensure that customers can easily and securely
open various types of bank accounts. Any individual capable to enter into a contract
can open accounts with the bank. Lunatics’ insolvents, drunkards cannot enter into the
contracts. Naturally, they cannot be the account holders. Illiterate persons, blind trustee
can open a accounts but special attention should be paid to customers. Likewise, bank
open accounts in the name of minors but they have to be operated by guardians till
“minors turn into majors”. There are various types of individual accounts such as:
Personal NPR Account, Personal USD account and can open a account in all
convertibles currencies directed by NRB (For Nepalese and Foreign Citizen) and Joint
NPR Account.
 18

Basic requirement for opening the personal account

 Customers are requied to provide specific information like customers name,

gender, marital status, date of birth, permanent and temporary address (phone
number), father’s name, grand father’s name or husband’s name, and all other
relevant detail filled in the account opening form correctly by the accountholder.
 Customers are required to provide specific documents for identity verification and
account opening. The exact documentation requirements may vary depending on
the type of account and regulatory guidelines, but commonly required documents
are passport-sized photographs, valid government issued photo identification,
citizenship card, and any additional documents requested by bank.
 Agree with the terms and conditions of the bank.
 Sign the specimen cards.
 Certified true copy of identification document i.e. citizenship or Passport and Birth
Certificate in case of minor account, and registration certificate as an Indian citizen
for Indian.
 Two photograph of account holder and if the account holder wants the debit card
then one extra photo for Debit Card.

In case of joint account

 The account holder should present in the business desk during the time of
account opening.
 Agree with the terms and conditions of the bank.
 The original citizenship of the parties involved in the joint account must be
presented.
 Two photographs of each party involve in joint account.
 The account holder should decide on the signature that is either one signature is
acceptable or both signatures are compulsory.

In case of foreign national

 Certified true copy of Passport.

 Documents should be certified from concerned Embassy.
 Certified True copy or valid Visa.
 All documents of personal account for all the joint parties.
 19

After ascertaining completion of basic requirement, the bank assigns an account holder,
accepts deposit slip (voucher) and issues a chequebook.

In case of proprietorship / partnership accounts

 Registration certificate
 Tax registration certificate (PAN)
 Copy of identification of all signatories
 Document evidencing residential address of signatories, directors, beneficial
owners.
 Passport size photos of signatories
 Resolution from board of trustee/ authorized personnel

Process of opening new account

After fulfilling the requirement of the issued account opening form and customer
information form by the customers, it is received by the CSD. Then, thorough checking
and verification are done to see any discrepancies. Once the verification is done with
the original documents, a stamp stating “VERIFIED WITH ORIGINAL” is affixed on
the photocopy of all the supporting documents. The signature for the account operation
and image of the accountholder is scanned and kept along with the customer’s detail in
the FINACLE software. Finally all these details are taken to the operating head for
verification and approval.

4.1.2. Account closing process and requirement

It is another important task done under account operation. It is very rare that you
encounter a account closing request at the customer desk at NSBL. People close their
accounts because of many reasons but the major reason that I got to know was the
customer is going somewhere out of the country and the increased number of
competitors in the area and sometimes due to their personal problems.

Procedures to close an account are given below

Step 1: Customer should visit nearest branch or to visit the branch where account is
hold, as the process may vary slightly depending on the type of account and
branch specific policies.
 20

Step 2: The customer is asked the reasons for closing the account and tries to convince
not to close the account by explaining the benefit of the account and the
charges taken for closing the account.

Step 3: If the customers are willing to close the account must fill up the form
specifying the reason.

Step 4: After submission of the form to CSD it is confirmed from the various
department that the customer is not enjoying and sort of facility from the bank
at present. And customer should settle outstanding balances before closing the
account.

Step 5: The client is then asked to return all his account related belongings like ATM
cards and the check book. These are received by the teller and are cancelled or
destroyed.

Step 6: Some banks may charge a nominal account closure fee, which will be
deducted from account balance or collected at the time of closure. Then finally
the account of the applicant is closed with certain charge.

4.1.3. Preparing and distributing functions

In an organizational context, “preparing” and “distributing” functions refers to specific
tasks and responsibilities related to document management, communication, and
information dissemination within the organization. These functions are crucial for
maintaining efficient operations and ensuring that relevant information reaches the
right individuals or departments. Another activities performed in the customer service
department is preparing and distribution of various requested document to the clients.
Various documents that a client can get from this department on requested are:

 Balance certificate
 Cheque books
 ATM cards
 Account statement
 SMS banking
 E-Banking user id
 21

a) Balance certificate distribution:

Balance certificate distribution refers to the process of providing individuals or entities

with official documentation that verifies their account balances with a bank or financial
institutions. Mainly the balance certificate is demanded by the corporation to know the
status of their account and present to the Board of Directors meeting. The bank
provides the certificate to only the account holder after the request form has been filled
up and submitted to CSD. The bank provides the certificate to the corporation if the
letter about the request certificate presented in the letter head with the signatures of the
members and the stamp of the corporation. The statement can be issued to an individual
also by fulfilling the same process.

b) Cheque books distribution

It is a banking process by which a bank provides its customers with a physical cheque
book, allowing them to write and issue cheques for various financial transactions.
Clients, especially the ones holding current account in the bank request for the cheques
book quite often. The client has to fill up the cheque request slip available in the
customer department. After the submission of the request slip, the cheque book is then
provided to the requester the next day. The account holder must present to collect the
cheques book and sign in the register and requisition slip.

c) ATM distribution

ATM distribution refers to the process by which banks or financial institutions provide
Automated Teller Machines (ATMs) to various locations for customer use. The ATM
card of NSBL is linked with the Visa Debit Card. ATMs are self-service banking
machines that allow customers to perform a wide range of financial transactions, such
as withdrawing cash, checking account balances, transferring funds, pin change, and
many more. The processes of distributing the ATM to the customer are as follows:

 For collecting the ATM card the account holder must be present in the business
desk with the account number
 Check whether the ATM card has received by the bank or not.
 The account holder must sign in two register that is card number register and ATM
delivery register. Then the signature is verified with the original signature provided
during the time of account opening.
 22

 After the verification of ATM card is provided to the account holder and inform
about the activation of the card.

d) E-Banking user id distribution

The distribution of user IDs for e-banking, also known as online banking or internet
banking, is a crucial process that enables customers to access and manage their bank
accounts and perform various financial transactions through digital channels. The
account holder can use the internet facility to know about the balance, statement, fund
transfer, etc. The official website of NSBL is www.nepalsbi.com.np.The account
holder must fill the form of internet banking and request for the password, codes, etc.

e) SMS banking distribution

SMS banking distribution refers to the process by which a bank or financial institution
provides customers with access to banking services and account information through
SMS (Short Message Service) messages on their mobile phones. SMS banking allows
customers to perform various financial transactions and inquires using text messages.
The account holder can use the mobile facility to know about the balance, statement
etc.

4.1.4. Miscellaneous functions:

 Making entry on registers
 Cheque book binding
 Filing the documents
 Updating the records
 Complain handling

4.2. SWOT analysis

SWOT analysis is a strategic planning tools used by organizations to access their
internal strengths and weakness and external opportunities and threats. SWOT analysis
helps organizations to gain better understanding of their current situation, make
informed decisions, and develop strategies to achieve their goals. SWOT analysis is
one of the major tools for analyzing organizational internal as well as external
environment. The internal environment provides strength and weaknesses whereas the
external environment provides opportunities and threats to the organization. Thus, the
 23

organization uses its strength to grab opportunities and minimize threats. Most of the
organizations use this tool to formulate plan, policies, and strategies for achieving
goals. The SWOT analysis of Customer Service Department of NSBL, which can be
listed as follows:

Strengths

 Use of advance technology

 Highly experienced, motivated, efficient, hardworking, professional staffs
 Efficient management system
 Diversified product and service offered
 Quality work culture lending to superior and prompt customer service
 Better image and established brand name in the market
 NSBL has banking network not only through the country but also in India by
which customers can easily access its services

Weakness

 Low interest rate on deposits

 Less number of deposit services as compared to other banks
 Limited market presence

Opportunities

 Raising awareness of general public towards modern banking products i.e.

ATMs, internet banking etc.
 Opportunity to attract large number of customers by promoting its brand name
and goodwill in the market.
 Opportunity to enter into the new and profitable segment of the market by
expanding its networks

Threats

 Tough and unfair competition

 Political instability
 Changing rules and regulations of NRB.
 Technological disruptions
 CHAPTER V

CONCLUSION
5.1. Lesson learnt
Lessons learnt refer to the insights and knowledge gained from experiences, projects, or
activities. These lessons are valuable because they help individuals, teams, and
organizations to improve and make informed decisions in the future. Knowledge of
both theoretical and practical aspects and exposure in the practical field is must to be
competitive in this world. Real work setting is a diverse situation than the classroom
leaning scenario, as we enter into real work setting there arise novel problem,
difficulties and challenges which make the person more dynamic and enthusiastic.
While dealing with the complexities we develop the interpersonal and communication
skills which further shape our personality.

Theoretical knowledge is not enough to know anything in a complete sense. For this
practical exposure is quite essential and program like internship grants such
opportunity. During the internship period, one gets acquainted with various lessons and
practical knowledge which could be basic for ones career development. In the due
period I got familiar with general banking activities, banking transactions, clerical
works and operations of office equipment, customers handling techniques, various
problems that may arise in bank, the importance of motivating factor, office layout,
maintaining relations with staffs etc. Beside these superficial lessons I got an
opportunity to learn various below mentioned lesson too:

 Learned how to deal with varieties of people and their queries and providing
appropriate information to the customers.
 Learned to communicate effectively with the people improving inter-personal
skills.
 Learnt the importance of relation between clients and bank.
 Acquired knowledge about the different types of services provided by the
Customer Service Department (CUSTOMER SERVICE DEPARTMENT).
 Learned account opening procedure, statement printing, account closing,
cheque issuing, ATM Card and ATM Pin issuing procedures.
 25

 Realized the work pressure at the time of performing tasks.

 Learned the importance of the proper organization culture and its effect on the
professional working environment. The culture is comprises with
communication skills, team work, well-mannered behavior, and the degree of
social and professional environment between the employees as well as with the
customer.
 The customers are the main drivers of any organization so they should be well
served with efficient and effective services. Customers’ attitude towards bank
should always be positively maintained.
 Experience that for positive result the coordination between employees of
different level is important.
 Experienced the importance of time factor in bank for both customer and
employee.
 Learned the importance of displayed emotion on the work place.
 Learned to be calm under the adverse conditions and tactfully handle the
complexities and to handle the grievances.
 Learned to deal with different people at different point of time.
 Misbehavior of any personnel adversely affects the organizational image
whereas mannerly and polite behavior as well professional behavior of
employee positively effects the customer reaction toward the organization.

5.2. Conclusion
Nepal SBI Bank (NSBL) is a prominent financial institution in Nepal, established as a
joint venture between the State Bank of India (SBI) and the Government of Nepal.
NSBL is one of the leading banks in Nepalese financial industry. NSBL, as a pioneer in
introducing many innovative products and marketing concepts in the domestic banking
sector, represents a milestone in the banking history of Nepal as it started an era of
modern banking either customer satisfaction measured as a focal objective while doing
business. Today NSBL holds one of the strongest networks, network in and outside
Nepal compared to other financial institutions of Nepal. NSBL has focus on customer
satisfaction by providing highly acclaimed services. NSBL has good cooperation within
and outside organization. NSBL has succeeded to maintain good culture and discipline
in organization.
 26

The internship at NSBL Bank helped intern to gain in-depth knowledge about real
working environment, interpersonal and communication skills, organizational culture
and behavior, professional qualities and team building spirit as well as working
principles of commercial banks. Besides, observing and learning the various activities
in the different departments, intern performed the various task. During that period,
intern found that costumers are the key focus and greatest asset of the bank. Thus, the
bank always focused to maintain long term relationship with customer and retain them
by providing better services. Employees are directly linked with these customers so
employee must behave in decent and peaceful way. Similarly, proper coordination and
cooperation among all departments is needed for growth of organization.

During the internship period intern got chance to get familiar with the activities
performed in Customer Service departments. The process of issuing balance statement
and balance certificate and process of issuing new card to the customers whose cards
had been expired were learnt. In this course intern got an opportunity to assess the
requirements in a cheque, deposit slip, account opening form, account closing, the
various information revealed by balance statement, the need of balance certificate, the
requirements of dispatching new cards to the expired card holders and much more.
Overall, the internship program has been really very fruitful in enhancing the practical
knowledge of the intern.
 27

REFERENCES
Bandari, D.R. (2003). “Principal and practices of Banking and Insurance”
Kathmandu: Aayush Publication.

Gupta, S.C. (1090). “Financial of Statics” Bombay: GBBL Publication House.

Mishkin, F.S., & Eakins, S.G. (2012). Financial markets and institutions. Pearson
Education.

Manandar, K.D., & Pokhrel, S.B. (2012). Marketing financial services. Kathmandu
Buddha Publication

Pandey, I. M. (1993), Financial Management, 6 th Revised Edition, New Delhi: Vikas

Publishing House Pvt. Ltd.

Thapa, K. (2010). Financial institutions and market. Kathmandu, Ashmita Publication.

Google

Wikipedia

www.nsbl.com

https://nsbl.statebank

www.nrb.org.np
 28

APPENDIX -I
ANNEX: 1. 1 List of commercial banks in Nepal

Bank name Established Headquarters

Agriculture Development Bank 1968 Ramshahpath, Kathmandu
Nepal Bank 1937 Dharmapath, Kathmandu
Rastriya Banijya Bank 1966 Singhadarbarplaza, Kathmandu
Citizen Bank International 2007 Narayanhitipath, Kathmandu
Everest Bank 1994 Lazimpat, Kathmandu
Global IME Bank 2012 Kamaladi, Kathmandu
Himalayan Bank 1993 Kamaladi, Kathmandu
Kumari Bank 2001 Durbarmarg, Kathmandu
Laxmi Sunrise Bank 2023 Hattisar, Kathmandu
Machhapuchhre Bank 2000 Lazimpat, Kathmandu
Nabil Bank 1984 Beena Marg, Kathmandu
Nepal Investment Mega Bank 2023 Durbarmarg, Kathmandu
Nepal SBI Bank 1993 Kesharmahal, Kathmandu
NIC Asia Bank 2013 Thapathali, Kathmandu
NMB Bank 2008 Babarmahal, Kathmandu
Prabhu Bank 2001 Babarmahal, Kathmandu
Prime Commercial Bank 2007 Kamalpokhari, Kathmandu
Sanima Bank 2012 Nagpokhari, Kathmandu
Siddhartha Bank 2002 Hattisar, Kathmandu
Standard Chartered Bank 1987 Nayabaneshwor, Kathmandu
 29

APPENDIX –II

ANNEX: 2 1
Interest rate on fixed deposit

Duration Individual Institutions/Foreign

Diplomatic Institution
≥ 3 months and < 6 months 7.20% -
≥ 6 months and < 1 year 8.20% 6.20%
≥ 1 year and < 2 years 9.10% 7.10%
≥ 2 year and < 3 years 9.00% 7.00%
≥ 3 years and above 9.00% 7.00%
Fixed deposit for 101 days * 7.20% -
Fixed deposit foe 201 days* 8.20% 6.20%