nepal bank internship report

8/19/2019 nepal bank internship report

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2 CHAPTER 1

3 Introduction

4

1.1 Background of the study

5 Internship has been a wonderful experience for me. It is the medium through which

interns can convert the theoretical knowledge into the practical one. Practical based

knowledge is very necessary to cope up with the external environment. In other words,

internship has been a window to the outer world. It is obvious that only theoretical

knowledge is not sufficient to tackle with real time problems. So to update with the

knowledge, practical knowledge is very necessary. Internship not only gives the ability tothink and makes able to give the decision at real time and situation but also show the way

how an office environment is like, how it functions and what motivates the employee to

perform well. "Internship creates professionalism inside ones mind."

!

Internship is the period in which interns get the great opportunity to expose their talents,

skills and knowledge to solve the practical problems. #y exposing the interns in the

organi$ational environment they can learn the organi$ational culture so that it is veryconvenient for their placement in the host organi$ation according to their internship

performance. %his will help them to build the career and also broaden the knowledge.

&

' %he interns should also submit report based on the work performed during the internship

period activities performed in the bank for the fulfillment of degree. So here I am going

to prepare the internship report on overall banking performance of (epal #ank )imited.

%o see how much of contribution (#) has made in the financial sector that effects

nations economy through (epal #ank )imited *(#)+, (epal comes under developing

countries. inancial sector is considered to be the nucleus of growth model designed for

the economic development of the country in which banking industry plays key role. %he

banking sector is an integral part of any economy, and plays a vital role in economic

development and prosperity of an economy. %he banks ensure the smooth running of



economy my effective mobili$ation of the fund. - bank today, is not ust an institution

where we can deposit our money or take loans from/ rather its scope is getting wider day

by day. - banks service today can be seen as a morphing of various financial

products0services, which seems to be of ever more increasing variety. (epal financial

system has significantly both in terms of business volume and the si$e of markets. -fter

the establishments of central bank 1(epal 2astra #ank3 on #aisakh 4, 6748 under (2#

-ct. 6746/ (epalese financial system has experience the continuous development. (2#

plays vital role in supervising, promoting and directing the functions of commercial bank

activities. -fter liberali$ation policy by the government, the banking industry of (epal

started to rise they achieved the desired growth. (epal bank limited is first bank of (epal

and it was incorporated in 4'8.

47

44 (epal #ank )imited has been playing vital role in development of the banking sector of

(epal. 9enerating profit through borrowing and lending is the core function of the

commercial bank. %his function helps to uplift the economy of the country by collecting

the funds in micro level and lending in macro level and, mobili$ing the funds from

surplus level to deficit level. %he success of the bank depends on the maximum collection

of and the optimum disbursement of the fund with minimum risk. or optimum

disbursement of the fund with minimum risk bank needs to have the strong body to

control the risk and flow of the loan. In any bank this function is handled by credit

department. %he commercial bank also helps in export and import of goods and services.

or this there is a department called 1)etter of :redit *):+ ;epartment3. #anking sector

occupies the maor part in the whole world economy.

46

48 %he mission of ##S program has the ade<uate attention to e<uip students with

knowledge, methods and technologies that will aid a person to mould into a human

resource capable of gaining even in unfavorable situations. %he internship helps the

students to understand banks culture and environment and develop their own insights

towards the banking industry which leads them to develop various professional <ualities

and skills.

4



1.2 !"ecti#es of the study

1$ %he main obective of the internship program is to relate the theoretical knowledge with

practical one in various business organi$ations under the area of speciali$ations. %he

study also helps to gain professional experience in the real work environment. %he main

obectives of enrolling in the (epal #ank )td. as an intern are as follows= %o know the

real business environment of banking sector.

ii% %o understand the whole working process of the banking industry.

iii% %o get brief idea of all the departments of the bank.

i#% %o understand the customers choice, competitors standing and existing regulatory

environment of banking sector.

#% %o ac<uire practical knowledge about banking activities.

&% %o find out the problems and prospects of customers of banking sectors.

1' #ii% %o gain working experience.

1(

1) 1.3 *ethodo+ogy of the ,tudy

4' In this internship report, the primary as well as secondary information has been used. %he

information is collected from interview, websites and annual report of (epal #ank

)imited. %he internship report is based on my own experience that I have faced in (epal

#ank )imited, >ead ?ffice and main branch, (ew 2oad, @athmandu

67

21 1.3.1 rgani-ation ,e+ection

22 I have completed my internship program from (epal #ank )imited, head office, main

branch. or selecting this organi$ation, I had tried through my personal approach as well

as from my colleges internship )etter. -fter my regular followAup, the bank agreed to

give me an opportunity to ac<uire knowledge0expertise through internship program with

effect from !th Paush , 676 to 5th algun , 676.

23

6 1.3.2 P+aceent

65 2egarding the placement during the internship period, I was placed in different



department of (epal #ank )td, (ew 2oad #anking ?ffice. So with the reasonable

guidance of the members I started internship from #ills ;epartment, 2emittance

;epartment, :ustomer Service ;epartment and :redit ;epartment. %his eight weeks

internship really helped me to develop managerial and interpersonal skills. I was able to

learn the bank culture, work environment and working procedure of (epal #ank )td,

(ew 2oad #ranch. Bight weeks of time is not sufficient to gather overall knowledge of

#anking, but however these eight weeks of internship had really been awfully

knowledgeable and fruitful for me to gain at least brief understanding of it.

6!

2( 1.3.3 /uration

6& %he duration of internship period has been defined for eight weeks by %ribhuvan

Cniversity. So I have completed two months in (epal #ank )imited, head office, main

branch.

6'

30 Ta!+e 1.1

31 /uration of Internshi

32 ;epartments 88 Deeks

34

85 :ustomer Service 8! 68 #ills0:learance 8& 6

8' )ocker 7 6

4 :redit 6 4

8 2emittance 4

5 ront ;esk

! Pension

4

& 4

4

$0

$156 1.4 Acti#ities Perfored in B

58 ;uring the entire internship period, the interne had time to visit different departments like

2emittance, :ustomer Service ;epartment, #ills ;epartment, Pension, ront desk, :redit

and )ocker ;epartment. %he activities performed on these departments are as given

below.



5

55

5!

5

$) Ta!+e 1.2

$ Acti#ities done in different deartents

'0 ,

.

o

.

'1 /eartent '2 Acti#ities erfored

!8 4 ! :ustomer service

department

!5 ?pening and closing accounts,

che<ue printing, handling

customers <ueries etc.

!! 6 ! #ills !& :ollected interbank che<ue, check

scanned as per B:: procedures.

!' 8 7 )ocker 4 Signature verification, opened

lockers, records of payments from

locker, data entry in excel file etc.6 8 :redit ;epartment iling the documents as per the

type of credit provided.

5 5 ! 2emittance ;epartment Preparing debit, credit ,double

entry vouchers, che<ue deposits,

data entry etc.

& ! ' ront ;esk &7 statement printing, >andling

customers, checking balance

through -##S

&4 &6 Pension &8 Signature verification, renewal of

different pattas, handling

customers <ueries etc

&



&5

)' 1.3.$ 5enera+ kno6+edge of ,oft6are

& (epal #ank )imited, (ewton software is used for the daily functions of its banking

operation. (ewton is latest and modern technology that it fast, easy to use and easy to

understand.

&&

) Hot 7eys used in e6ton are8

'7 6 '4 :lear the box

'6 8 '8 9et the least from drop down box

' '5 Ctility search

'! 5 ' 2egister0?pen

'& ! '' Cpdate

477

474 ;elete

476 &

478 Euery

47

'

475 Send

47!

47

47 ?ld account search

47&

44

47' :alculator

44746 444Bxit from the screen

446

113Product Code

114

44547 44!Saving account

4444 44&:urrent account

44'67 467 ixed deposit account

464 4 466 ?verdraft

468 4 46 )oan

465 54 46! 9overnment account

46 ! 46& %emporary deposit

46' 487 Suspense payment

484

132 e6ton Code133

48 !4

477

485 :ustomer information creation

48! 87

7

48 -ccount open

48& 85

7

48' -ccount close



47 87 44 ;eposit

46 65

7

48 Dithdrawal by che<ues

4 4

57

45 Issuance of statement

4! 647

4 Issuance of che<ues

4& &&

4

4' -ccount mode operation

1$0

454

456

1$3 1.3.4 iitation

45 %his internship report is prepared under the consideration of confidentiality and

internship period was for the limited period of two months. ;ue to the limited time frame

and due to other %rainee in bank it was difficult to work in the entire field and sometime

we have to stay ideal without doing anything. %he staffs were busy in their work and

difficult to guide the intern.

1$$

45!

45

45&

45' CHAPTER 2

1'0 Introduction of the Banking Industry

1'1

1'2

1'3 2.1 9or+d Banking History

4! #ank is a commercial institution that provides financial services/ including

issuing money in various forms, receiving deposits of money, lending money and

processing transaction and the creating of credit. #anks are the financial institution

established with obectives to collect and safeguard peoples money and, then generate

profit by lending same collected fund to people who wants to invest. - bank provides an



easy way to pay bills through the maintained account. #ank provide many services such

as accepting various deposits, safeguarding deposits, making loans, providing means of

payment, electronic banking and other services such as travelers che<ues and money

orders. 2egardless of all these things banking industry plays vital role in the financial

system of a country by mobili$ing fund from micro level savers to macro level investors

which help in building the backbone of any financial system with maximum utility. -

bank collects money from those who have it to spare or who are saving it out of their

incomes, and lends money to those who re<uire. In general, a bank is an institution with

the following features=

i+ It deals with money/ it accepts deposits and advances loans.

ii+ It deals with credit/ it has the ability to create credit.

iii+ It generates profit from the difference between the level of interest it pays for deposits

and other source funds, and level of interest received from lending F investment sectors

iv+ It is a commercial institution/ it aims at earning profit.

1'$

1'' /efinition of Bank

4! #ank is a financial intermediary accepting deposits and granting loans. In fact, a

modern bank performs variety of function that it is difficult to precise and general

definition of a bank. -ccording to Prof. @inly, 1- bank is an establishment which makes

to individuals such advance of money as may be re<uired and safely made, and to which

individuals entrust money when not re<uired by them for use3.

4!& -ccording to :.2. :rowther, 1- bank collects money from those who have it to

spare or who are saving it out of their incomes, and it lends this money to those who

re<uire it3.

4!'

1(0 2.2 E#o+ution of !anking industry in ea+

44 -ccording to the history, it is found that people of our country have been involved

in business and trade since long time ago %hrough the production of copper utensils had

been started during the th century, business relationship could not be established with



India since India was involved in the production of copper utensil. >owever, the craft

concerned with copper, wood and metal in our country did attract the :hinese and the

%ibetan a lot, thus resulting in the establishment of business relationship with :hina and

%ibet.

46

48 In 46th century there was silver coin called G;am. )ater on in 4 th century

G%-(@-;>-2I one is that dealt with the lending money to the public. Its main

obective was to earn profit, so they used to charge high interest rate. %o control interest

rate G%BH-2-%> -;;- was established in 4'th century. It provides loans to the people

working in government offices on the basis of the security and to public on the basis of

collateral they deposit. It charges only 5 interest rate per annum. It only provides loans

but does not accept deposit.

4

45 In 4'&7 #.S. (epal could establish business with countries beyond India as well

and first modern bank (epal #ank )imited was established in 4'' #.S. @artik 87 th

according to the (epal #ank -ct 4''8. (epal #ank )imited was established with 54

ownership of (epal government and ' of e<uity participation from private sector.

)ater on in 6746 #.S. (epal 2astra #ank was established with the obectives to maintain

the internal external stability. In 4''! -.;. government established another bank named

2astriya #aniya #ank to make money transaction easy. #esides that, establishment of

(epal Industrial F ;evelopment :orporation in 4'5' -.; .and -griculture #ank in 4'!-.;. as well as other cooperative societies also started contributing to the economy and

banking tradition in (epal 9rind lays #ank limited established in 4'&! -.;. %here are

other several commercial banks and in (epal commercial banks should be registered

under :ompany -ct or :ommercial #ank -ct under section 46*a+ to *w+

4!

4

4&

1( 2.3 ea+ese Banking Industry

1)04&4 #anking is one of the most sensitive businesses all over the world. #anks play an

important role in the economy and are considered as the backbone of an economy in

every country and (epal is no exemption. #anks are custodian to the assets of the general

masses. %he banking sector plays a significant role in a contemporary world of money

and economy.

4&6 It influences and facilitates many different but integrated economic activities like



resources mobili$ation, poverty elimination, production and distribution of public

finance.

4&8 #anks accept deposits, support the payment system and provide the largest source

of funds in the market. Safe and sound banking is crucial for the financial stability and

sustainable development. (epal has a special characteristic of bank dominated financial

sector. -s the domestic capital market is in the initial stage of development, the banking

sector largely dominates the entire financial sector.

4& %he first conventional bank in (epal was the (epal #ank )imited, established in

4'8 -.;. followed by 2astriya #aniya #ank in 4'!! -.;. %hese two banks are the

pioneers of the (epalese #anking industry. %hese banks hold the largest network and

operate even in remote areas of the country. 2astriya #aniya #ank is fully owned by the

(epal 9overnment while government is holding forty percent stakes of (epal #ank

)imited. -s the financial market was barred for private investors till the mid 4'&7s, these

two #anks were the only players in the banking industry. %he economic liberali$ation

policy -dopted in the mid 4'&7s brought about a surge in the banking industry. - large

(umber of banks were established and the number continues to grow even today. %he

subprime mortgage crisis emerged in the Cnited States during the year 677 has exposed

Immense challenges to global financial players and regulators. :onse<uently, banks and

financial institutions experienced banking panics, stock market crashes, bursting of

financial bubbles, currency crisis and sovereign defaults and thereby creating many

challenges to the supervisors and regulators around the globe. %hough studies have

revealed that the impact would not be that severe in (epal, it has necessitated bank and

supervisors to assume precautionary measures particularly on risk management system,

portfolio mix, internal control mechanism and corporate governance.

4&5

4&! 2.4 Tyes of Banks

4& - single institution cant fulfill all the services demanded by the customers. So,

different types of banks emerged in the banking industry concentrating on a special

sector. ?n the basis of their speciali$ed function bank can be classified as under.

4. :entral bank

6. :ommercial bank

8. ;evelopment bank

. Saving bank



5. BJIK #ank *Bxport F Import #ank+

!. other banks=

4 :oA cooperative bank

4&& >ousing bank

4&' 8 Kerchant bank

10

11 2.$ ,er#ices rendered !y ost of the !anks

4. %rade finance

6. ;eposits

8. 2emittance

. :learing 0 :ollection

5. )oans and -dvances

!. -%K with any branch banking. Safe deposit Lault

&. SDI%

'. -##S

47. und %ransfer

44. 8!5 ;ays banking

46. ;ebit card

48. -uto loan

4. >ousing loan

45. Bducation loan

4!. Kahila #achat

4. Pension ;istribution

4&. 9old )oan

4'. ixed deposit loan.

67. %ravelers :heck

64. B M #anking

12 66.SKS banking.

13

14

1$

1' 2.' ist of Coercia+ Banks in ea+

4' %he list of all commercial banks in (epal is given below=

4'&



1

,.

o

200 Coercia+ !anks

674

4

676 (epal #ank )imited

678

6

67 2astra #aniya #ank

675

8

67! (-#I) #ank )imited

67

67& (epal Investment #ank )imited

67'

5

647 Standard :hartered #ank (epal

644! 646 >imalayan #ank )imited

648

64 (epal S#I #ank )imited

645

&

64! (epal #angladesh #ank )imited

64

'

64& Bverest #ank )imited

64'

47

667 #ank of @athmandu )imited

664

44

666 (epal :redit and :ommerce #ank

)imited

668

46

66 )umbini bank )imited

665

48

66! (epal Industrial and :ommercial #ank

)imited

66

4

66& Kachhapuchhre #ank )imited



66'

45

687 @umari #ank )imited

684

4!

686 )axmi #ank )imited

688

4

68 Siddhartha #ank )imited

685

4&

68! -griculture ;evelopment #ank )imited

68

4'

68& 9lobal #ank )imited

68'

67

67 :iti$en Investment #ank )imited

64

64

66 Prime :ommercial #ank )td.

68

66

6 #ank of -sia (epal )td.

65

68

6! Sunrise #ank )td.

6

6

6& ;evelopment :redit #ank )td.0 9rand

#ank (epal )imited

6'

65

657 @IS% #ank )td.

654

6!

656 Kega #ank

658

6

65 (K# #ank

655

6&

65! Hanata bank ltd.

65

6'

65& :entury commercial #ank )td



65'

87

6!7 :ivil #ank )td

6!4

84

6!6 Sanima #ank )td

6!8

2'4

2'$

2''

2'(

2')

2'

2(0

2(1

2(2

2(3

2(4

2($ CHAPTER 3

2(' ITR/:CTI ; EPA BA7 I*ITE/

6

2() 3.1 ea+ Bank iited

6'

6&7 (epal #ank )imited is the first conventional bank of (epal, established in 4'8

-;. (epal #ank )imited in the beginning operated as a central bank and later was turned

into a commercial bank under the new #ank -ct. (epal #ank )imited is the pioneer

bank, started with obectives to render service to people and to contribute to the nations

development.

6&4 (epal #ank )imited holds the largest network and operates even in remote areas



of the country. 9overnment holds forty percent stakes of (epal #ank )imited. -s the

financial market was barred for private investors till the midA4'&7s, (epal #ank )imited

along with 2astriya #aniya #ank was only players in the banking industry. %he bank has

an important role in supporting economic liberali$ation policy adopted in the midA4'&7s.

6&6

6&8 It holds the vision of remaining the leading financial institution of the country.

(epal #ank )imited holds the exclusive identity of serving most of the towns as well as

the corporate consumer.

6&

6&5 3.2 Product< ,er#ices and ;aci+ities6&!6& %hough (epal #ank )imited is first bank of (epal it has been the innovator in

introducing many new products. %o illustrate, the bank has implemented till the following

products now

6&&

6&' 4+ ree -%K, -##S, :>BECB #??@, S%-%BKB(% and SKS

6'7 6+ ;ifferent :redit acilities

6'4 8+ )etter of :redit and 9uarantee %ransaction

6'6 + 2emittance acilities from ;ifferent :ountries

6'8 5+ Internal 2emittance acilities

6' !+ )ocker acilities

6'5 + oreign :urrencies Bxchange

6'! &+ Internet #anking Service

6' '+ #ills and :learing acilities

6'& 47+ -ccidental ;eath Insurance

6''

300 3.3 *ission301 (epal #ank )imited seeks to provide an environment within which the bank can

bring uni<ue financial value and services to all customers. It will be sound institution

where depositors continue to have faith in the security of their funds and receive

reasonable returns/ borrowers and assured of appropriate credit facilities at reasonable

prices/ other serviceA seekers receive prompt and attentive service at reasonable cost/

employees are paid ade<uate compensation with professional career growth opportunities



and stockholders receive satisfactory return for their investment.

302 =a+ues ,tateent

878 -t (epal #ank )imited, we believe that our banking should be based on=

87 o 2espect, service and safety for the customers we serve

875 o 2espect, reward and opportunity for the people with whom we work

87! o 2espect,

cooperation and support for the economic community of (epal.

30(

30)

30 3.4 =ision

310

311 “To remain the leading financial institution of the country."

312

313

314 3.$ !"ecti#es

845 (epal #ank )imited has the following obectives=

4 :ontinue to maintain leading share of banking sector with a significant presence in all

maor geographical areas in the country.

6 Provide competitive and customer oriented banking services to all customers through

competent and professional staff.

84! 8 2eclaim leadership within the national financial community

31( 3.' Caita+ structure of ea+ Bank iited.

84& %he authori$ed capital of the bank is (P2 4577 million, of which 4777 million is

the issued capital and the total paid up capital of the bank at present is 77 million. %he

promoter share constitute the maor portion of the bank share which stands up to 7 of

the total capital structure and remaining 87 will be held by the general public for which

the bank launched I.P.? on Kay 6, 677'. %he bank had the highest paid up capital from

the promoters among all the commercial banks in the country at the time of its

commencement.

84'

867 3.( et6ork #er#ie6



864 %he table below shows the number of different branches of (#) located all over

the country.

322 Ta!+e 3.$

323 Branches of B

324 Region 6ise!ranches

32$ o of Branches

86! @athmandu 2egion 86 6'

86& #iratnagar 2egion 86' 86

887 #irgun 2egion 884 68

886 Pokhara 2egion 888 64

88 (epalgun 2egion 885 4&

88! %otal no of #ranches 88 123

338 Source: www.nepalbank.com.np

33

340 3.) Board of /irectors>

84 %he bank is under

the control of :entral #ank of (epal, (epal 2astra #ank *(2#+. (2# has appointed a five

members management committee. %his management committee performs as the board of

director of the bank.

86

88 *anageent Tea

%he bank is running under the leadership of (epal 2astra #ank *(2#+ appointed three

management team under the leadership of (2# director, Kr.Kaheshwor )al Shrestha.

8 3. rgani-ation

,tructure of B

http://www.nepalbank.com.np/

http://www.nepalbank.com.np/



34$ CHAPTER 4

34' Ana+ysis of Perfored /eartents

8 ;uring the internship period, the internee had performed a range o f

activities in various departments which helped to widen their knowledge about banking

activities and practices. Internee performed various activities at different departments=

customer service, remittance, bills, front desk, pension, credit, and locker department.

%he activities performed at each of these departments are explained below=

34)

34 4.1 Custoer ,er#ice /eartent>

857 :ustomer service department of any bank is the most important department

where customers are taken due cares. >ere I worked for 8 weeks. %he :ustomer Service

department is responsible for handling, order processing, product and service <uestions,

bank information, system transfers, and other general in<uiries. %he accounts that I have

opened are mentioned in the -nnex.

854 2esponsibilities at :ustomer Service ;epartment=

856 Providing the necessary voucher as their re<uired.

858 illing the pass book if they re<uest us.

85 Bn<uiring their available balance.

855 :ustomer reception and attending to their needs.

85! Kanaging the various forms and voucher such as different new account

opening forms, etc.

85 Bntering the personal information.

85& ;isseminating information related to various banking products and services

that are available to satisfy needs of customers.

85' >elping the customers to open the new account and the forms are filled up

precisely as per the needs

8!7 Scanning the signature and photograph of the customers *stamps as well in

case of the account of the companies+.

8!4 Karinating the record to total number of che<ue re<uisition issued by the



customers and preparing the che<uebook.

8!6 Providing the bank statement to the customers to see their transaction being

taken place.

8!8 Providing important message to the customer, maintain good

communication to the customers.

8!

8!5

8!!

3'( Custoer Counse+ing

8!& >elp desk ;epartment is very crucial for the success of bank. :ustomer

counselling is the most important function of this department. %he efficiency of the

department or an organi$ation is the outcome of the <uality of the customer counselling

that is provides. It is concerned with counseling the new as well as the existing clients

regarding the products services provided by the bank.

8!'

3(0 Account ening

84 It is the most fre<uent activity done in this department. %o deposit the

money the customer must open the account in the bank which on one hand gives the

benefits to their deposited amount as *interest+ on other hand the money is secure in the

bank than at home. :ustomers can open their account as per their wish C( various types

of accounts, which are mentioned below=

86 :urrentA-ccount

88 ixedA -ccount

8 SavingA-ccount

85

8! e!uirement to open new account =

8 :ustomers are re<uired to fulfill some basic re<uirement before they open

their account. %hose re<uirements are mentioned below=

378 For Personal Account:

8' Personal Identification *:iti$enship :ertificate and 6 copies of

photography0 8 if if the person is illiterate+



8&7 (ominee ;eclaration *If any +.

381 For partnership Account

8&6 )etter of Partnership duly signed by all partners

8&8 :opy of the Partnership duly signed by all partners

8& :opy of the Partnership -greement

8&5 :ertified copy of Partnership 2egistration

8&! -ccount of corporate bodies, copy of=

8& Kemorandum and -rticles of -ssociation of the :ompany

8&& 2esolution of #oard of directors to open and operate an account

8&' )ist of directors duly signed by respective directors with home address and

phone numbers.

8'7 :ertificate of commerce of commencement of business

8'4 -ccounts of clubs, societies and associates *all ;ocuments to be duly

certified by the charity+

8'6 )ist of ?ffice #earers

8'8 :opy of 2esolution to pen and operate the account

8' :opy of byAlaws

8'5 (ame and signature of persons authori$ed to operate the account

8'! :opy of the registration certificate.

8'

8'& For Minors=

8'' 9uardianships to be verified with related documents=

77 (ominee form=

74 Photography of the nominee

76 Signature of the nominee

78

404 For Clubs/Societies and Association:

75 :opy of 2egistration :ertificate

7! :opy of #yAlaws

7 :opy of 2esolution to ?pen and operate the account

7& )ist of members



7'

410 For Corporate Bod:

44:ertificate of Incorporation

46 Kemorandum and -rticle of -ssociation of teh :ompany

48 2esolution of #oard of ;irectors to open the account

4 Sample of :ompany Seal

45 (ame of the ;irectors of the #oard

41! For Partnership Account:

4 :ertificate of Partnership 2egistration

4& :opy of Partnership ;eed, if any

4'

4"0 For Proprietorship Account:

64 2egistration :ertificate

66 Identification of Proprietors

68

424 Procedure of Account ening in B>

65 ill the account opening form along with the signature card.

6! :heck the application form being held by the customer and see whether all

the re<uired information is being properly filled or not.

6 Lerify photocopies of documents with original one and attest it with the

form.

6& %he new account opened is being entered in the account opening register

and account number is written in the form and voucher.

6' %he hard copy information is being converted into the soft copy by entering

all the information in the banking software.

87 Scan signature and photograph of the account holder to make signature

accessible.

84 >igherAlevel staffs approve the account opened.

86 :ustomer are then provided with the cash0che<ue deposit voucher for

depositing cash in their newly opened account to maintain the minimum balance set by

the bank to operate the account.



88 -fter all the necessary entries are made, check list as per the type of

account opened is provided to customer by entering in the che<ue dispatch book.

8 In case of illiterate customers blue color book is provided which is also

known as pass book.

85

8! In addition to the documents as per stated above as per (2# rule any one

of the following document is also needed to proof the address of the customer=

8 Dater0electricity0%elephone bill

8& Blection identity card.

8' )and ownership paper.

7 2ent agreement, others

4

442 Account c+osing

8 :ustomers also need to close their account because of different reasons.

Dhile closing the account, customers need to fill up the account closing form. -fter

filling the form the last balance that is to refunded is calculated with deducting the charge

the bank will draw charge for closing the account. -fter that the account should be closed

and refund the remaining balance to the customer. %he presence of the account holder is a

must while closing the account, the che<ue book and -%K if presence, must be returned

to the bank.

Procedure for closing account in (#)

5 %he process of account closing start with the viewing of the of the balance

available in his0her account.

! %he account holder must present in the bank. Dith all the statement

provided by the bank.

%hen the account holder must fill the application form of account closing.

& Dith the deduction of charge for closing of account the remaining amount

is paid to the customer.

' %he account holder will issue the che<ue according to the amount left.

57 %he application form and the document which the customer had, is

submitted to the authori$ed staff who has the authority to close the account.



54 %he che<ue0pass book is tear or damage so that is will not used again.

56

4$3 Che?ue !ook issuance

5 Procedure for issuance of che<ue book in (#)

55 %here is provision of providing che<ue book for the customer who has ust

opened account in (#).

5! or the old account, che<ue book are issued against che<ue re<uisition

form.

5 9enerally the number of leaf used to be ten but provided as the demand of

the customer.

5& %he account holder should present while receiving the che<ue book.

5' or %he older customer the re<uisition form have to be filled and submitted

to the authori$ed person. %he authori$ed person will approve it writing Gyes or Gok .then

the che<ue is printed.

!7 In case the account holder is not present, the agent who has come to receive

the che<ue book should provide following information=

4'1 ae of the accountho+der

!6 If he0she has the account in the same bank then his account number if not

the photocopy of identity card.

!8 ?nce the che<ue book becomes ready for delivery, it should be entered in

the che<ue book issue register the entire particular like che<ue number, account holder

name, number, date, etc related to that che<ue book, signature to che<ue book recipient to

be obtained in the register as a proof of delivery of che<ue book.

!

!5

!!

!

4') Record 7eeing

!' %he record keeping is the day to day task of :S;. %he record should be

kept for all the transaction such as che<ue re<uisition, che<ue issued record, account

opening record, account closing record, etc.



7

4

4(2 4.2 Bi++s@C+earance /eartent

8 In this department customers bring checks of different bank and those checks are

processed in order to deposit the amount to customers account in different other

branches or the same branch. %he clearing department is responsible for the clearing of

all checks that the bank receives daily and the different types of clearing checks that

come in the bank are=

• Inward :learing

• ?utward :learing

• ?utward #ills for :ollection

A. In6ard C+earing

5 Inward clearing takes place when a @#? account holder draws a check in favor

of a (onA (#) account holder. %he process for inward clearing is as follows=

4 :hecks of (#) are received by the operations department electronically sent by

scanning the checks by other banks through B::*Blectronic :heck :learance+

6 %he bank officer verifies all particulars from the instruments and the system for sufficient balance etc. and approves the check. If any fault is found, then the officer

will mark the checks as a return, stating the reasons with them.

8 If no fault is found, then the officer will post these checks in the system by debiting

the customer account.

%he particular of the returned checks are entered in the G?0D return of inward

clearing register and returned.

4('

B. ut6ard C+earing

:hecks drawn by (onA(#) customers in favor of (#) customer and deposited at

same #ranch are known as outward clearing checks. %he process for outward clearing is

as follows=

4 :he<ues are received by the bills department of (#).



6 (#) stamps, endorsement stamps and B:: *Blectronic :heck :learance+ stamps are affixed

along with endorsees signature.

8 :hecks are then sent to related banks by scanning and editing the information as per B::

rules.

or those institutions which doesnt have the B:: model of check clearing, traditional

manual way of check clearance is performed as =

&

• :hecks received by bills department are sent to (epal 2astra #ank for clearance and

checks are presented to related bank.

• :ustomer in favor of whom the check is drawn is credited after approval from the related

bank.

• If any check returns the next days as a returned, the posted entries are reversed and the

check is returned to the customer who presented it and is recorded in the check return

register.

4(

C. ut6ard Bi++s for Co++ections

&7 %here are some checks that are drawn by a (on (#) account that is outside the

city area in favor of (#) account holders and thus are treated as ?#:s. %he process for

clearing of the ?#:s is as follows=

• :he<ues received by (#).

• %he officer affixes the ?#: stamp on the checks and writes its individual number from the

?#: register.

• Bntries of all ?#: checks are written in an ?#: register.

• -n ?#: letter is printed, which shows the check numbers, the branch drawn on and amount.

• ?riginal checks are attached to these letter and sent to the main (#) branch in that area by

courier

• Dhen that area branch clears the amount from the (onA(#) branch, it sends an Inter #ranch

:redit -dvice *I#:-+ to (#) and the officer at the branch credits the customer account with

that amount.

&4



&6

4)3 4.3 ocker /eartent

& %he )ocker ;epartment or Safe ;eposit Lault ensures the safety and security of

valuables of customers. %here are &4! applicants using locker services at present/

referring to data of Kay & 6745. %here are ' types of locker depending on the si$e. -n

annual charge has to be paid in advance to use the locker service. %he locker charge

ranges from 2s. 6,777 to 2s. !,77 per annum. %he locker demand of (#) has rose due

to current earth<uake. ;uring the internees placement in )ocker ;epartment, the

following activities were performed=

&5

. #erifying pplicants

&! In locker department, the intern had to check on the customers entry and exit, to check

whether the responsible locker owner has come to take their belongings or not. Koreover we had

to check on their code to make sure of the liable customer. %he applicants needed to fill up a

form with signature specimen which was tallied with their application document of information.

-fter signature verification they need to sign these application documents with current date and

time.

$. %ocker &harges& %here were two ways to pay for locker services. irst is to pay by cash depending on the

locker si$e and second is to deduct amount from customers saving account. %he (#) staffs were

responsible for listing customers who paid with cash and who did not. %he cash payments were

recorded directly into ledger entries with reference as their payment receipt. %he charge

deduction from saving account re<uired checking the sufficiency of their balance.

'88 (rocedure of deducting locker charge from sa)ing account

&' %he intern was given responsibility to deduct the locker charge from their saving

account. or that the intern had to open (BD%?( with code 657 and check for balance.

%hose accounts which had enough balance were copied in a voucher heading with

account number, name, locker number, type of locker and date. %wo different dates *date

of renewal and payment expire date+ were noted down.



'7 ?nce again the intern had to open (BD%?( with code 6767 where they had to

enter account number, locker charge in debit section and total amount with code

5747477 in credit section and then send button was clicked and txt number was noted

down.

&. *aking %edger +ntries

'4 %he ledger entries after cash payment and amount deduction were posted into a

ledger book. %he entry re<uires writing locker number, locker holder name, type of locker

based on si$e, charged amount, date of renewal, payment date and payment expiry date.

%he amounts deducted from saving account are first listed into a statement before

making ledger entries.

'6

,. *aking ,ata entries

'8 %he information about the lockers were entered into excel files for easy access

which included the information about the locker holders name, address*both permanent

and current+, contact number, nominee, authori$ed person, application number, locker

number, key number, code, registration date, last charge paid date, and expiry date.

44

4$

4' 4.4 Credit /eartent

' %his department looks over the various kinds of credits or loans taken from the banks. It

ensures that thorough investigation is undertaken of the client who wishes to take credit from the

bank. %he bank provides consumer loan such as home, auto, term loan, and overdraft loan. It also

provides hypothecation and consortium loan. ;uring my time in this department, I maintained

the files according to their respective topics and got to learn about different types of loan

provided by (#).

'&

'' 4.$ Reittance /eartent

$00 2emittance means a sum of money sent in payment for something. %his

department deals with either the transfer of money from one bank to other bank or from

one branch to another branch for their customers. 2emittance is important tool and (epal



#ank )imited holds a key advantage due to its number of branches. 2emittances are

received or send within the country or from foreign countries. (epal #ank has strategic

alliances with foreign companies like Bastern Bxchange Bst. ;oha, Eatar, -rabian

Bxchange :o. D.).). etc.

574 (#) offers the following forms of remittances=

576 -. DB# remittance

578 #. ;emand ;raft remittance

57

$0$ A. 9e! Reittance

57! In the web there is generally inward and outward department. In inward

department once the payment comes from the other branch then it is checked and if the

stated person in the web is present there then he is asked to fill up a form and show

his0her citi$enship card. -nd a photocopy of it is kept and the record is made in the

computer then the amount is transferred to the respective persons account and is paid

cash if the customer does not possess any account in (#).

57 In outward department the customer fills up the form and deposits the money at

the counter and the money is send to the receiver through web by feeding up the

information with the help of form. or the authentication purpose, secret key is generated

on the system then the depositor is given & digit secret key which he needs to inform the

receiver and if the receiver has his account then he can take his citi$enship card and get

the money transferred to his0her account.

$0) B. /eand /raft Reittance

$0 -n unconventional order in writingAsigned by a person, usually the exporter, and

addressed to the importerAordering the importer or the importerNs agent to pay, on demand

*sight draft+ or at a fixed future date *time draft+ the amount specified on the face of the

draft.

$10 ut6ard /rafts

544Dhen a person or a company wants to make a draft on the exporter company then at first

company needs to present Performa invoice to the bank and on the basis of the invoice

the bank prepares the draft on behalf of the customer to the third party.



$12

$13 In6ard /rafts

54 (epal #ank limited has system of honoring drafts drawn on us by many banks

denominated in maor currencies such as CS; and Buro.

545

$1'

$1( 4.' ;ront /esk

54& It was previously a part of customer service department. It is now given a separate

space in @athmandu #anking ?ffice of (epal #ank )imited. It is a place where customer

in<uiries are responded. ;uring the internees placement in ront ;esk, the following

activities were performed.

$1

A. ,tateent Printing

567 %he intern was given the responsibility to print statements of customer since the

very first day. %he front desk computer uses (ewton Software System to print #alance

Statements. %he (ewton System operates with teller id, branch code and password. %he

employee of (epal #ank )imited is responsible for starting the system. Printing

Statement is supported by (ewton code 457. ?nce the code number is entered aframework is obtained. %he statement printing re<uires feeding in account number of

respective customers and the transaction date. %he respective customers must specify the

transaction date. ?nce customer account number and transaction dates are entered the

information is forwarded to I% department. %hey verify the account number and send

confirmation message if the account number is correct. %hus, printing is done by hitting

the P2I(% button. %he intern used to print 477A677 statements per day for six days in a

row. %he customers using this service are registered under @athmandu banking ?ffice of

(epal #ank )imited.

564

B. ueries Hand+ed

$22 %his was also an important task in the front desk. %he basic <ueries of customer

were balance in<uiry and account number verification. %he balance in<uiry of customers



allows them to know their current balance in their accounts. %here are two ways to handle

balance in<uiry/ the (ewton system and -##S *-ny #ranch #anking System+0 Pumori

System. %he (ewton system responds to customers registered under @#? and -##S

system supports customers registered under other branches. %he code for balance in<uiry

under (ewton system is 657. %he code input gives a framework where entering

customers account number shows balance in their respective account.

568 Pumori system is a webAbrowser dependent system/ instead of code you select

withdrawal option from the menu bar, enter account number and press search. %hus,

balance amount is obtained. %he other <uery was verifying account number. %his service

is only available to @#? customers. %he intern used the same framework form code 657

for this task. %he intern was supervised to search account number using customer name.

Dhen account number appears tally signature and photo of the customer asking for

account number verification.

56 Some other <ueries that they responded to were about (#)s swift code, interest

rate on deposits, interest on loan, direction to other department, banking hours, evening

counters and -%K outlets. %hey were under the supervision of (#) staff and she helped

them in handling <ueries and responding to customers.

565

$2' 4.( Pension /eartent56 - pension is a fixed sum to be paid regularly to a person, typically following

retirement from service. %here are many different types of pensions, including defined

benefit plans, defined contribution plans, as well as several others.

56& ;ifferent product codes are there like 4747 for civil servants, 4767 for teachers,

4787 for defense and 477 for (#) employees. Bach people have their uni<ue P-%%-

(? which is entered as soon as it is entered, data relating to employee like their name,

post, pension amount, tax amount etc. is shown. %he voucher is printed and the bill along

with the pattas is signed by the department head. %hen the retired people take that

voucher to the cash department to get the money

56'

A. Rene6ed of Pension PATTA

587 or the renewal of pension P-%%-, a form has to be filled which contained ;ate,

https://en.wikipedia.org/wiki/Retirement





P-%%- no, (ame of P-%%- holder, along with his0her pension account number at the top

of the form. %he form was divided into two sections, at the left side of the form they had

to fill the name of the incharge of the pension department, his post, his staff number, date,

bank code along with pension stamp. -t the right side they had to fill name of P-%%-

holder, their address, finger prints and signature. )astly they had to present the form to

the inAcharge for their verification.

$31

B. He+ed to ;i++ Che?ues

586 If the pension P-%%- were renewed on time then the monthly pension amount

goes directly to their pension account. %hose parties who had pension account brought

che<ue book along with them and withdrew cash from che<ue. %he old people who were

unable to fill the che<ue for them the intern personally wrote their che<ues with the

amount they desire to withdraw. -fter that they took their signature on the che<ue and

presented to the staff for verification.

$33 To oen a Pension Account

• ?pen your (ewton -ccount

• Kake display !4477 screen to open new pension saving account

A !4477 for opening account

• Input the following details=

A %ransaction type M individual

A :ustomer I; type M :iti$enship number

A :haracter :ode M 5664O IndividualA2esident

A I; (umber M Drite *type+ the pension patta number of the pension holders.

• -fter pension patta number type*input+ the product code of the pension patta.

• -fter completing all above procedure click the 1send option of your screen which is shown

at below into the right corner.

• ?2, press G' which automatically commands send option.



• -fter this commands your display will get new screen to fill up customers details.

• (ecessary to fill the customers details

A :ustomers full name

A Permanent address along with contact number * preferred mobile number+

A Hob codeA 4&''Aothers

A Introducers (ame4 and (ame6 *as per pension patta+

A 9ender

A (ational codeA country*(epal i.e. (p+

•

-fter finishing all these information press the send option or ' key.

58 (ow your screen will display one notice message board. :lick at 1?@3 in that

message board or Press 1B(%B23 key.

585

58!

$3( CHAPTER $

$3) Conc+usion

$3

57 %he economy of the country is booming and with the investment favorable

policies and their smooth implementation, the role of banks in todays economy have

become an important one. %he banking industry is also reaping the fruits of this economic

boom by growing rapidly over the past few years. %here are a number of banks opening

in the economy with foreign investments coming into the banking sector.

54 (epal bank )imited culture is built on a set of core values= client focus,teamwork, meritocracy, ethic and integrity, pioneering. %he company is committed to its

clients best interests as well as preserving a good relationship by defining realistic

obectives.

56 Since the establishment of (epal bank )imited, it has aimed to become the

leading bank of (epal by providing outstanding services. %he services that (epal bank



)imited provides have a great market penetration not only because of their features but

also the profit and markup rates that they charge. -lso the products that (epal bank

)imited provides cater to sector economy.

58 urthermore, as the bank is growing, new and more energetic employees are

entering which is sure to invigorate the performance of the bank.

5 )astly, to become the leading bank of (epal, (epal bank )imited has to

benchmark its services to its maor competitors in the industry or the market leader in the

industry and provide a continuous mean of improvement in its existing products and

services, while introducing new ones to the industry.

$4$

5! -s per the rules and regulation of (epal #ank )td, De the intern have to persuade

atleast 47 new customers to open an account in the #ank. So, I have completed this task.%he following are those new customers which I have opened. So, the details of those new

customers are as follows=

5

5&

5'

557

$$1

,.

$$2 ae of Account Ho+der $$3 Account

u!er

55

4

555 #ipin 2ai 55! 6A47A

5'6!85

55

6

55& Kenuka 9urung 55' 6A47A

5'6!8

5!7

8

5!4 Situ Shrestha 5!6 6A47A

5'6!54

5!8

5! Sureshwor 2a %andukar 5!5 6A47A

5'6!!'

5!!5

5! 2am @amal 2aut 5!& 6A47A5'6!

5!'

!

57 -run Pd0Kathura

)amichane

54 6A47A

5'6!&5

56

58 Hitendra @umar Sha 5 6A47A

5'6!&6

55 5! )ahana Kahi 5 6A47A



& 5'67&

5&

'

5' -lisha @hadka 5&7 6A47A

5'6!4'

5&4

47

5&6 @amala

;ahal

5&8 6A47A

5'6!6$)4

$)$

$)'

$)(

$))

$)

$0

$1

$2 Bi!+iograhy

$3

$4

4 -nnual report of (epal #ank )imited

6 http=00www.nbl.com.np

8 http=00www.google.com

http=00www.wikipedia.com

5'5

http://www.nbl.com.np/

http://www.nbl.com.np/

nepal bank internship report

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