GNERAL BANKING SERVICES OF EVEREST BANK LIMITED
An Internship Report
Submitted To:
Office of the DeanFaculty of ManagementTribhuvan University
Submitted By:Mohit RijalNepal Commerce CampusExam Roll No.:
8633/11T.U. Registration No.: 7-2-0025-0953-2011
In the partial fulfillment of the requirement for the Degree
ofBachelor in Business Administration (BBA)
Lagankhel Branch, LalitpurAugust, 2015
RECOMMENDATION
This is to certify that the Internship Report
Submitted by:
Mohit Rijal
Exam Roll No.: 8633/11
TU Registration No.: 7-2-0025-0953-2011
Entitled
"GENERAL BANKING SYSTEM OF EVEREST BANK LIMITED"
has been prepared as approved by this campus. This Internship
Report is forwarded for examination.
--------------------------------------Mr. Krishna Bahadur
ThapaDeputy Director, BBA ProgramNepal Commerce Campus
DECLARATION
I hereby declare that the internship report entitled General
Banking Services of Everest Bank Limited submitted to Nepal
commerce campus, Faculty of Management, Tribhuvan University is my
original work done for the partial fulfillment of the requirement
of Bachelor in Business Administration (BBA). This report is my own
original work and I undertake the full responsibility.
Mohit Rijal
ACKNOWLEDGEMENTS
This internship report entitled General Banking System of
Everest Bank Limited is prepared for the partial fulfillment of the
requirement for the degree of Bachelor in Business Administration
(BBA) course in Nepal Commerce Campus (NCC) operating under
affiliation of Tribhuwan University (TU). I would thus like to
thank TU and NCC for providing me with an opportunity to be
involved in the internship programme which gave me the real time
exposure to the work environment and bridge the gap between
theoretical learning and practical understanding to some
extent.
A number of people have contributed to the completion of this
report. mI would like to thank Prof. Puskar Kumar Sharma, the
programme Director of BBA at NCC and MR. Krishna Thapa Deputy
Director of BBA at NCC.. I would also like to thank Mrs. Kalpana
Pandey, the branch manager of Everest Bank Limited, Lagankhel for
granting me the permission to work in the organization. I express
my sincere thanks to Mr. Ashish Shrestha, my officer incharge
during the internship. I would like to show my immense gratitude to
Ms. Asmita Basnet at Customer Service Department, Ms. Farida
Manandhar, Mr. Biswo Thapa and Mr. Rakesh Tandular at Cash and
Remittance Department, Mrs. Prity Baniya and Mrs. Sajana at Credit
and Marketing Department and Mr. Jay Thapa at Clearing Department
and other stffs of Lagankhel branch for their cooperation and
guidance throughout my internship period.
Most of all, my thanks to Mr. Sudip Pandey, my instructor, for
his guidance throughout the preparation of this report. At last, I
am grateful to all those people who have helped me directly and
indirectly during the internship period and in the preparation of
this report.
Thanking YouMohit Rijal
TABLE OF CONTENTS
RECOMMENDATIONiINTERNSHIP COMPLETION
LETTRERiiDECLARATIONiiiACKNOWLEDGEMENTSivTABLE OF CONTENTSvLIST OF
TABLESviiiABBREVIATIONSix
CHAPTER ONEINTRODUCTION1-51.1Background of Study21.2Objectives
of Study21.3Methodology of Study21.3.1 Organization Selection31.3.2
Placement31.3.3 Duration of Internship31.3.4 Activities
Done4Section 1.4 Limitations of Study4
CHAPTER TWOINTRODUCTION OF THE BANKING INDUSTRY6-102.1 Meaning
of Banking62.2 Evolution of Banking62.3 History of Banking in
Nepal72.4 Current Situation of Banking in Nepal82.5 Opportunities
and Challenges Faced by Banking Industry10CHAPTER THREEINTRODUCTION
TO EVEREST BANK LIMITED11-183.1 History of Everest Bank
Limited11Present Situation of the Bank123.3 Technology Used by the
Bank133.4 Institutional Thrust13-143.4.1 Vision133.4.2
Mission133.4.3 Objectives133.4.4 Future Plans and Strategies143.4.5
Awards143.5 Products/ Services offered by the Bank14-183.5.1
Services Offered at Customer Service Department143.5.2 Services
offered at Cash and Remittance Department163.5.3 Services Offered
at Clearing Department173.5.4 Services offered at Credit &
Marketing Department183.6 Opportunities and Challenges to the
Bank18
CHAPTER FOURANALYSIS OF ACTIVITIES DONE19-264.1 Activities
Performed in Customer Service Department19-224.2 Activities
Performed in Cash and Remittance Department224.3 Activities
Performed in Clearing Department224.4 Activities Performed in
Credit & Marketing Department244.5 Problems Identified and
Solved24-26
CHAPTER FIVECONCLUSION/ LESSONS LEARNT27-285.1 Summary275.2
Lessons Learnt27BibliographyAppendices
LIST OF TABLES
Table No.TablesPage No.
Table 1.1Duration of internship3Table 2.1Financial Institutions
in Nepal9Table 3.1Present Situation of EBL12
ABBREVIATIONS
ABBS Any Branch Banking ServiceADAfter Death of
ChristATMAutomated Teller MachineBBABachelors in Business
AdministrationBSBikram SambatCSDCustomer Service
DepartmentEBLEverest Bank LimitedECCElectronic Cheque
ClearingFIsFinancial InstitutionsITInformation TechnologyNGONon
Government OrganizationNRBNepal Rastra BankOBCOutward Bills
CollectionSCTSmart Choice TechnologiesSMSShort Message ServiceSWIFT
Society for Worldwide Inter-bank Financial
TelecommunicationsSNSerial NumberTTTelegraphic TransferTUTribhuvan
University
CHAPTER ONEINTRODUCTION
1.1 Background of Study
A Bachelor in Business Administration (BBA) is the academic
program under the affiliation of Faculty of Management, Tribhuwan
University (TU) with eight semester provision covering an
International standard period of four years. This BBA program
exposes students to a variety of core subjects and allows students
to specialize in specific academic area. BBA program is a program
designed to give both theoretical and practical knowledge to the
students.
Internship is the part of BBA curriculum as prescribed by the
TU. As part of the academic requirement, students must undergo
eight weeks of internship in an organization. Although the course
design is very much practical in all the semesters with field work,
report preparation, presentation etc., the last semester aims to
provide the student with real world experience as to how the work
is done in the day-to-day life, what are the issues the business
firms need to address and many others. An internship is an academic
curriculum-based practical work experience in a particular field of
study. It provides students to participate in the real life
organization setting outside the classroom and also provides
opportunities through interactions and observations in the
organization. I did my internship in Everest Bank Limited (EBL),
Lagankhel Branch. An intern is provided opportunity to diagnose how
different department of bank operates. An intern also got the
opportunity to apply some of his theoretical knowledge in the vast
practical world. The report entitled An internship report on
Everest Bank is the outline of my experiences and observations of
these eight weeks at the bank. Everest Bank Limited, Lagankhel has
different departments like credit and marketing department,
remittance department, customer service department, clearing
department and cash department. During the initial weeks, the
intern got the opportunity to collect experiences about the
Customer Service Department (CSD) & clearing department.
Customer service department is there for the convenience of
customers. CSD basically, works as a bridge between customers and
other functions of the organization. Clearing department is there
to collect cheques of other banks of its customers. Bank as a
drawer credits the account of the customer if essentials for
clearing are met. Credit department is there to transfer the fund
from savers to the users. It assists different institutions and
individuals with its tools and instruments of granting credit,
which are formed of deposits and other sources. Cash department
disburses and collects cash to and from the customers. Remittance
department collects and disburses remittance amount of its
customers, it also disburses amount of those other than bank
account holders if sent to Everest Remit.
1.2 Objectives of Study
The general objective of internship program is to acquire
learning as well as working experience and gain practical exposure
in the real-life working situation. The main objective of the
program is to analyze the activities being carried out in the
banking industry and enhance knowledge and practical skills during
that period. Putting it all together, the specific objectives of
the study are listed below:
1. To learn about the activities done in the customer service
department.2. To observe and learn the activities done in cash and
remittance department3. Learn about clearing of cheques in the
bank.4. Observe and learn the activities done in Credit and
marketing department.
1.3 Methodology of Study
Methodology is the description of the procedure followed while
collecting the necessary data and information needed for research
work and report preparation. Various data were collected by
interaction with the staffs 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 banks
annual report are the sources of secondary data.
1.3.1 Organization SelectionBBA students have great opportunity
to do the internship in the banking sector. As for my BBA course,
the selection of the good organization was very important for my
internship and commercial banks are the appropriate organization
where I could tally my theoretical knowledge into practical
implications. While selecting the banks I was looking for the bank
where I can learn a lot about banking as well as financial
activities so I happen to select the Everest Bank Limited. The
intern has selected the financial institution which helps to
broaden the knowledge about the banking sector. The intern chooses
Everest Bank Limited because it has long history of struggle and
success.
1.3.2 Placement During the two months of internship period the
intern was placed in altogether four different departments. They
are Customer Service Department, Remittance & Cash Department,
Credit and Marketing Department &Cheque Clearing Department.,
1.3.3 Duration of InternshipInternship gives an outline or frame of
the activities performed in the organization and teaches student
how-to manage all the activities effectively and efficiently for
the prosperity of the organization. The intern was allowed to work
for 2 month in different department of EBL, Lagakhel Branch.
Table 1.1 Duration of InternshipSNDepartmentsDuration in
Weeks
1Customer Service4
2Cash and Remittance1
3Cheque Clearing2
4Credit and Marketing1
1.3.4 Activities DoneDuring the period of internship, as an
intern various activities are performed. While placed at various
departments numerous activities were done. Those activities are
summarized below.
1. Activities Performed at Customer Service DepartmentDealing
with customers, handling their queries and explain about their
interest products, providing different types forms to customers,
opening and closing of accounts, preparation and issuance of cheque
book, bank statement sct and others.
2. Activities Performed at Cash and Remittance
DepartmentMaintenance of records in vault book register, providing
different forms to customers, counting and sorting of cash and
others.
3. Activities Performed at Clearing DepartmentMaintaining
register of cheque clearing and electroic scanning of cheques using
ECC system.
4. Activities Performed at Credit and Marketing
DepartmentArrangement of loan documents. Enquiring to clients about
different loan Schemes available, printing and photocopy of
assisting documents
1.4 Limitations of Study
In the course of learning following limitations were faced:
1. Inadequate InformationStaffs are not supposed to provide
adequate information to intern. Information access was limited.
Only superficial information is supposed to be provided which are
not sufficient to know the bank deeply.2. Time PeriodThe limitation
of time to eight weeks is not sufficient enough to go through the
in-depth study of each and every department. Intern is not allowed
to learn the overall banking system.
CHAPTER: TWOINTRODUCTION OF THE BANKING INDUSTRY
2.1 Meaning of Banking
Bank is a financial institution which deals with the monetary
transactions. The major function of the bank is to accept deposits
and provide loans. The bank attracts deposits from various
investors by providing certain rate of interest, and investing the
accumulated funds as loans to others who are in need of fund by
charging slightly higher rate of interest than they provide to the
depositors. Bank acts as an intermediary who bridges the gap
between the savers of fund and the users of fund.
According to Nepal Rastra Bank Act (2002) Banking means
accepting deposits for the purpose of lending or investment of
deposits of money from the public, repayable on demand or otherwise
and withdraws by cheque draft order otherwise.
A bank generates a profit from the difference between the level
of interest it pays for deposits and other sources of funds, and
the level of interest it charges in its lending activities. This
difference is referred to as the spread between the cost of funds
and the loan interest rate.
2.2 Evolution of Banking
The early banking however is closely associated with the
business of money changing; the origin of the banking in the modern
sense was started from Italy. The term bank is derived from the
Latin word bancus Italian word Banko meaning the portable benches
or counters over which the money changer comes in, French word
banque which means a brench and a German word bank which means
Joint Stock Company . In most simple form, banking is as old as
authentic history. The early bankers, the Jews in Lombardy,
transacted third business at benches in the marketplace. When they
were unable to meet their liabilities, the depositors used to break
their benches and the term bankrupted was derived (Thapa, &
Neupane, 2013).
The bank of Venice, established in 1157 AD. is supposed to be
the ancient bank. Originally, it was not a bank in real sense being
simply an office for the transfer of the public debt. Subsequently,
bank of Barcelona (1401 AD) and Bank of Geneva (1407 AD) were
established. The Bank of England, first English bank, was
established in 1694 AD. The bank of Hindustan established in 1770
AD is regarded as the first bank in India. The modern Banking
system is leading the world countries in the 19th century.
Therefore, this trend of banking slowly began to increase and
spread initially all over the world. Finally, Nepal Bank Limited
was in 1937 AD as the first bank in Nepal (Thapa, & Neupane,
2013).
2.3 History of Banking in Nepal
The history of bank development is not long in Nepal.
Goldsmiths, merchants and moneylenders like in other countries were
the ancient bankers of Nepal. The concept of modern banking system
is very new to the himalayan kingdom. However, when the history is
traced, it can be found that the existence of banking practices
started in the eighth century. According to Nepalese history, in
1723 BS Gunakama Dev, the king of Kathmandu had borrowed money to
rebuild and rule Kathmandu. The banking history in Nepal is
relatively new even though the numbers of banks can be found
operating in Nepal. The establishment of Kausi Tosha Khana during
the regime of Great Prithivi Narayan Shah and Tejarath Adda during
the Prime ministership of Ranoddip Shah around 1877-1933 BS were
the banking agency of those times and can be regarded as the
initial step toward the origin and the establishment of banking
sectors in Nepal. However, with the establishment of Nepal Bank
Limited in 1937 AD the banking system came into Nepal. Thus, Nepal
Bank Limited is considered as the first commercial bank of Nepal
(Thapa, & Neupane, 2013).After the establishment of Nepal Bank
Limited, later on the Nepal Rastra Bank, Central Bank of Nepal was
established in 1956 AD. In order to make the banking system more
systematic and organized, many Acts and Laws were made.
Subsequently Rastrya Banijaya Bank with 100% government ownership
was established on 10th Magh 2022 BS. Similarly, under the
Agriculture Development Bank Act 2014 BS. Agricultural Development
Bank was established on 7th Magh 2024 BS (Thapa, & Neupane,
2013).
Later on Government become liberal and flexible, and amended
many of its Acts and Rules. A number of joint venture banks with
the foreign investments started to come and operate in Nepal.
Consequently, Nepal Arab Bank (presently Nabil Bank) was
Established in 1984 AD. Similarly, Nepal Indosuez Bank was
established as a joint venture between Nepal and France in 1984 AD,
Nepal Gindlays Bank (presently known as Standard Chartered Bank)
was established in 1987 AD as the country followed economic
liberalization; there was massive entrance of foreign banks in
Nepal. Himalayan Bank Limited as a joint venture with Habib Bank
Limited of Pakistan was established in 1993 AD. Likewise, Nepal SBI
Bank as a joint venture with State Bank of India was established in
1993 AD (Thapa, & Neupane, 2013).
Nepal Bangladesh Bank as a joint venture with international
finance and commercial Bank of Bangladesh was established in 1994
AD. Similarly, Everest Bank Limited was established as the joint
venture with Punjab National Bank in 1994 AD is the examples of the
expansion of the banking industry in Nepal. And by 2010 AD Nepal
has opened its doors for the foreign banks to operate in full
ownership (Thapa, & Neupane, 2013). Presently, there are 30
Commercial Banks that are operating in Nepal that has been clearly
shown in Appendix- I.
2.4 Current Situation of Banking in Nepal
Currently the banking sector is evolving to be very competitive
and challenging. The fastest growing and emerging industrial sector
today is not other than banking. It is flourishing and upgrading
day by day. Talking about its life cycle it is at its saturation
point. Banks are using various new technological advancements to
provide timely, fastest and economical services to the
customers.
Banks with the collaboration of other financial institutions,
ITs and other organization are always trying to attract the
customers. The different ages of banking sector clarifies the
improving current scenario of banking. It can be summarized as in
following points: Shift from traditional book keeping system to
computerized system for keeping records. Use of various financial
tools and software like NEWTON, PUMORI, FINACLE for record keeping
and networking. Emergence of Management Information System (MIS) in
banks for database, financial analysis, research etc Use of
electronic tools for banking like ATM cards, Credit cards, Any
Branch Banking System (ABBS), web remit, Swifts, e-banking, mobile
banking etc. Shift to real estate investment, housing and other
various schemes. But with the tightened policy of central bank, it
is slowed down.
Table 2.1 Financial Institutions in NepalSNFinancial
InstutionsNumbers
1Commercial Banks30
2Development Banks75
3Finance Companies48
4Micro Development Banks36
(Source: NRB, Publications and Reports, 2013)
2.5 Opportunities and Challenges Faced by Banking Industry
Opportunities and challenges are the uncontrollable factors that
affect the functioning of the bank. The bank must be able to
scrutinize these external forces and respond accordingly. The
opportunities for a bank can be suitable law and banking rules and
regulations provided by the government, increasing remittance from
and within the countries, improving banking habits of the citizens,
introduction of innovations and technology into banking industry
etc. Customers nowadays are becoming financially aware and they are
conscious about the ways that can help them mobilize their savings.
This provides a great opportunity for the bank to gain access to
more customers, thus increasing their area of operation.
Challenges for banking industry arise from domestic conflict,
lack of skilled and competent human resources, rivalry among
existing banks, threat of new entrants and substitutes, etc. which
may adversely affect the operation of the bank. Banks must try to
critically analyze these challenges and prepare itself to convert
its effect into positive result as far as possible.
In context of Nepalese banking industry, the opportunities arise
from advancement of technology; deregulation and liberalization;
investment opportunities in various economic sectors etc. Also
Nepalese banks can explore into rural markets via innovative and
convincing products. The major challenge faced by Nepalese banks is
political instability, burning issues of money laundering and
terrorist financing, cyber crimes etc.
Furthermore, globalization may offer both opportunities and
threats to commercial banks. Due to globalization, Nepalese banks
may have to compete at international level. Nevertheless, the banks
can reap the benefits from technology transfer, accessibility to
global market etc arising out of globalization. Similarly, recent
trend of mergers and acquisition may pose threats as well as
opportunities to Nepalese commercial banks.
CHAPTER THREEINTRODUCTION TO EVEREST BANK LIMITED
3.1 History of Everest Bank Limited
Everest Bank Limited (EBL) was registered in November 17, 1992
and came into operation in October 1994 with a view and objective
of extending professionalized and efficient banking services to
various segments of the society. The bank had an initial paid up
capital of Rs 3 crores. Today the bank has grown to become one of
the leading banks in Nepal. The bank is providing customer friendly
services through a network of 53 branches across the nation. EBL is
joint venture bank with Punjab National Bank (PNB), India in 1997
and turned into a highly profitable bank. PNB provides top
management support under the technical service agreement (Everest
Bank, 2015).
EBL is one of the first banks to introduce Any Branch Banking
System (ABBS) in Nepal. EBL has introduced Bank of Wheel system,
whereby the bank is installed in a vehicle and moves around to
various places to serve the segment deprived of proper banking
facilities. EBL is the bank having representative office in foreign
soil. The office facilitates remittance and Nepalese working in
India can even open accounts through the office. EBL has strived to
establish itself as a strong brand that creates an image of local
bank that is easy to access and reliable. The bank has been
conferred with Bank of the Year 2006, Nepal (Everest Bank, 2015) by
the banker, a publication of financial times, London. The bank was
bestowed with the NICCI Excellence award by Nepal India Chamber of
Commerce for its spectacular performance under finance sector.
EBL in association with Smart Choice Technology (SCT) and VISA
is providing ATM service. ATM sharing arrangement with PNB has
facilitated usage of EBL debit card at more than 1000 PNB ATM
outlets across the India at a nominal rate. 3.2 Present Situation
of the Bank Catering to more than 6.5 lacs customer today, EBL has
been one of the leading banks of the country and has been catering
its services to various segments of the society. EBL provides
customer friendly services through its wide network connected
through ABBS system, which enables customers for operational
transactions from any branches. The bank has 53 branches, 74 ATM
counters, 5 extension counters and 22 revenue collection across the
country making it a very efficient and accessible bank for its
customers anytime, anywhere. There are eight members in board of
directors (four members from owners, two members from PNB and two
members from public shareholders) and five members in management
team of the bank. Details of of board members and management team
are shown in Appendix- II. Currently EBL employees 696 people
around the nation to serve its customer (Everest Bank, 2015).
Currently EBL has Rs 2000000000 of authorized capital, Rs
1921239051 of issued capital and Rs 1921239051 of paid up capital
which has been shown in Appendix- III.As per the banks late
published annual report (2070/71) EBL has been able to increase its
deposits by Rs 438.76 and Rs 425.25 in loans and advances. Bank has
been able to increase its net profit after tax by Rs 7.86crore.
Bank has a closing cash balance of Rs 131.73crore. Furthermore, the
present condition of EBL can be portrayed from the table
below.Table 3.1 Present Situation of EBLSNParticularsPrevious year
in Rs. (2069/70)This year in Rs. (2070/71)
1Share Capital19212390512137387737
2Loans and Advances4419.78crore4845.03crore
3Deposits5772.05crore6210.8crore
4Net Profits14711172911549698560
(Source: EBL Annual Report, 2015)
3.3 Technology Used by the Bank
The banking software currently in use is Finacle and has been
efficiently uses in the branch offices. This software is the most
commonly used software by Nepalese banks. Society for Worldwide
Inter Bank Financial Telecommunication (SWIFT) is the other mode of
technology to make the remittance services that has been used by
this bank. The bank also offers the Any Branch Banking System
(ABBS) in all the branches. The bank is providing the Debit card
facilities under Smart Choice Technology (SCT) network. This
facility enables the customers to withdraw cash from any ATM
terminals located at different parts of the country. It also
facilitates the SMS, Mobile, utility bill payment and I-banking
which enables the customers to know the transaction details sitting
in their homes.
3.4 Institutional Thrust
3.4.1 Vision To position it as a progressive and customer
friendly bank providing financial other related services. To cater
to various segments of society using advanced technology. To be
committed to excellence in corporate values
3.4.2 Mission To provide excellent professional services and
improve its position as a leader in the field of financial related
services. To build & maintain a team of motivated and committed
workforce with high work ethos. To use the latest technology aimed
at customer satisfaction & act an effective catalyst for socio
economic developments.
3.4.3 Objectives To become a leading bank by providing quality
product and services. To ensure and provide attractive return to
the shareholders. To provide higher expected returns on their
investment. To bridge the gap between savers and users of the fund
effectively and efficiently.
3.4.4 Future Plans and StrategiesEvery organization whether it
is big or small, profit oriented or non-profit oriented, have plans
and strategies. Planning is the process of setting objectives and
choosing the actions to achieve them. Similarly, EBL also has some
plans and strategies to move forward with, which can be listed down
as below:1. Increase in branch network.2. Increase customer base by
upgrading information technology initiatives to reduce transaction
time and cost of transaction and providing alternative delivery
channels.3. To increase customer base in low cost deposits with a
view to reduce average cost of deposits.
3.4.5 AwardsThe Everest bank has been awarded by following
awards:The bank has been conferred with Bank of the year 2006,
Nepal by the banker publication of Financial Times, London.The bank
was bestowed with the NICCI Excellence Award by Nepal India chamber
of commerce for its spectacular performance under finance
sector.
3.5 Products/ Services offered by the Bank
Everest Bank Limited provides a wide range of remittance
services to its customers. Some of which are listed as below.
3.5.1 Services Offered at Customer Service DepartmentBelow is
the list of services offered at Customer Service Department.
1. Deposits a) Current DepositIt is non-interest bearing account
which is opened purely for business purpose. Any individual, profit
or non-profit organization can open current account in Nepalese
Rupee or in different convertible foreign currencies. Deposits or
withdraw any amount after meeting the minimum balance as set by the
bank. Not only for saving but also for convenience.
b) Call Deposit In call account individual can park your excess
fund for short period. Interest rate is based upon volume, tenure,
nature of transactions etc.
c) Saving DepositThese accounts are designed to help individuals
saving habit to meet the future requirement. This is interest
bearing account which remains liquid and safe. Individual can plan
and save their earned money for the future financial needs. Easy to
operate EBL savings account allows having instant access to your
saving from any branch or SCT networks of EBL. Personalized cheques
with name printed on cash cheque leaf for enhanced security.
d) Fixed DepositA fixed time deposit is the deposit of funds in
a depository institution for a specific period. This is fixed
interest bearing deposit. Generally higher interest is paid for the
deposit of longer-term and vice-versa. There are two types of fixed
deposit accounts and they are cumulative and non- cumulative fixed
deposit accounts.
EBL provides varieties of deposit schemes which are shown in
Appendix- IV
2. Debit CardEBL Debit Card is key to ultimate convenience
regarding day to day monetary transactions providing customers the
power of real cash in form of card. Associated with the Smart Card
Technology (SCT), it facilitates wide sharing of ATMs under SCT
network. Everest Bank Ltd (EBL), a joint venture partner of Punjab
National Bank (PNB) is always committed towards excellent services
for the people who believe in quality banking. Introduction of EBL
Debit card is a step in the same direction.
3. Other FacilitiesOther facilities include SMS banking and
e-banking services, handling customer queries, merchant banking
activities like underwriting of locker facility, standing
instructions, consulting services etc.
3.5.2 Services offered at Cash and Remittance DepartmentBelow is
the list of services offered.
1. Demand Draft Demand draft is a cheque drawn by a bank on its
own branches or on its correspondence banks branches. At EBL,
customers can easily remit funds to beneficiaries outside Nepal
through demand drafts. Customers can use drafts of PNB for
remitting in Indian Rupees to almost every corner of India.
2. Telegraphic Transfer (TT)Telegraphic transfer (TT) is method
where two banks exchange test keys to ensure authencity of the
messages between them. EBL has test key arrangements with various
international banks. At EBL, customers may use this service to
remit/ receive funds.
3. Everest Remit and Moneygram Exchange are one of the most
accepted methods of remitting funds by Nepalese working outside the
country. EBL has its own remit i.e Everest Remit. At EBL all
customers, a/c holders or none can receive funds remitted by their
relatives and friends from different part of the world within the
minutes without any hassle. Its customers can easily remit amount
to India up IRS 10000 per day.
3.5.3 Services Offered at Clearing DepartmentClearing is the
process through which financial institutions (FIs) exchange cheques
and other payment items that they have accepted. There are two
types of clearing: Inward Clearing: If our cheques come back in our
own bank then it is called inward cheque clearing. Outward
Clearing: If the cheques of other banks come in our bank, then it
is called outward cheque clearing.Some of the services offered at
clearing department are as follows:
1. Recipient of ChequesCheques of other institutions are
received along with the deposit slips of EBL, with the name and
account number written in the cheque.
2. Disbursement of Deposit SlipAfter receiving the cheque with
deposit slips the necessary signs and stamps are to be put on the
deposit slip and returned back to depositor.
3. Electronic Clearing of ChequeThe received cheques are scanned
using the ECC machine, the information about the cheque are stored
in a database. The information about the cheque is authorized and
send to clearing house for the settlement of payment.
3.5.4 Services offered at Credit & Marketing DepartmentEBL
as a business firm acquires funds from surplus economic units at
lower rate repackage those funds and provide them to deficit facing
units at a higher rate to earn profit.The detail of all types Loan
services of EBL is shown in Appendix- V.3.6 Opportunities and
Challenges to the Bank
Opportunities and challenges are uncontrollable factors that
affect the functioning of the bank. The bank must be able to
scrutinize these external forces and respond accordingly. EBL being
the pioneer bank, its main opportunity is the customer trust which
has helped the bank to increase its market share. Many large
business organizations make their through this bank. The presence
of the branches throughout the country is also one of its
opportunities. EBL has its great opportunity of expanding its
market share because of it joint venture with PNB, India.
The existence of other competitive financial institutions has
been the biggest threat to this bank. The market share have been
divided, its like a shared cake. Another challenge is the technical
update. Further the training and development of the employee is
also the challenge if any employee is transferred to another branch
then in order to perform his/ her job the right person in prior
should be prepared and well trained so that the work would not be
halted
CHAPTER FOURANALYSIS OF ACTIVITIES DONE
As intern is placed in different departments, various activities
are performed related with customer service, clearing, credit and
remittance department. As an intern assigned to different
departments, various activities are performed. The activities
performed can be explained as follows:
4.1 Activities Performed in Customer Service Department
Customer Service department is a primary level department that
generally deals with customers directly and regularly. Activities
done by intern at CSD are as follows.
1. Account Opening & ClosingAny interested customer who
wishes to open an account in EBL is inquired about the type of
account customer wants to open, then customer is provided with
account opening form and is requested to fill up account opening
form and attach all required documents. After the form is filled up
by customer, intern verifies the form and passes on to the CSD head
for final verification. After the approval from CSD head, CSD staff
opens an account in bank on the name of respective customer. Then
the customer is provided with an account number and requested to
deposit at least minimum amount according to their account
type.
During account opening time intern asks customer whether
customer need other services offered by bank like the ATM Card
service, internet banking service, SMS banking service etc and if
customer is interested to get those services then customers are
asked to fill up respective forms to get those services.
Customers do not open account only; sometimes they close the
existing account. Intern provides account closing form to the
customer, and then helps them to fill up the form. After the form
is filled completely, intern asks customer to return remaining
cheques and ATM. Intern forwards account closing form to CSD
head.
2. Statement PrintingAny customer who wants to have bank account
statement print is requested to fill up bank account statement
request form and submit it, then intern verifies account number,
account name, account holders signature and then provides
respective bank account statement print to respective customer.
3. Scanning and Photocopy of DocumentsVarious documents like
specimen signature cards, photographs, citizenship, passports etc
should be properly scanned and photocopied and entered into bank
system so that it could be accessed easily when it is needed.
Intern does the above mentioned tasks.
4. Handling Customer QueriesDifferent queries of different
customers should be handled in a very effective way so that
customer gets satisfactory solution of their queries. While dealing
with customers first we need to listen to the customer patiently
and understand their queries or problems only after that we should
provide the appropriate information or the solution as per
customers need in very polite manner. If intern do not have the
appropriate information about the customers queries then intern
should ask to other staff and provide appropriate information to
customer as quickly as possible.
5. ATM Card IssueWhile opening a bank account, customer is
inquired about the need of ATM Card. If customer is willing to take
ATM card service then ATM form is be given to customer to fill.
Once the form is filled up intern will verify it and send it for
the further processing. Customer is requested to come and collect
their ATM card in one week.
After one weeks bank receives the ATM card from head office of
the respective customer if customer requests for VISA, SCT card is
provided after a day of account opening. When the customer comes to
collect the ATM card, CSD staff verifies the signature of the
customer and intern issues the ATM card to the respective customer
along with ATM Pin number.
6. Chequebook IssueWhen account holder used the entire cheque
leaves bank issue cheque book to the customer. When customer fill
up the cheque requisition slip that is attach along with cheque
book. Cheque books are usually made in a day and are arranged in a
chronological order. In the course of this activity intern prepares
chequebook, acknowledgement letter, register the customer
information and others.
7. Phone Communication HandlingThe CSD department is responsible
for handling phone calls coming from outside. Intern is responsible
to answer questions of the customers and provide account related
information via telephone. After receive phone calls transfer to
the branch manager, operational in charge and cash department and
other departments.
8. Signature ChangeIf any customer is willing to change customer
signature for any genuine reason, a form called SPECIMEN SIGNATURE
CARD is given to fill it, CSD staff will verify the form along with
the documents, before that inter reviews the document.
9. Instructing to Fill up Forms for Different ReasonsThere are
many other works to be done in the bank by intern. Some new people
come to the bank for cash deposit. They are well drilled to fill up
the voucher consequently. Similarly, some people approach there if
their account is dormant. The account becomes dormant if no
transaction is made for the period of six month. For these types of
customers intern provides form and instruct them to fill up for
activating their account. As such in case of lose of debit card,
people come there and they are again privileged by a form in order
to get a new card. This all is executed by intern with no
negligence.
10. Filing and DocumentationFiling and documentation are very
important task that the CSD staffs do. The entire paper work has to
be done simultaneously to the computer work. At the end of the
office day intern is responsible to file the documents that has
been approved the whole day. Documents includes: account opening
and closing form, dormat form, acknowledgement form, debitcard
form, SMS banking form and others.
4.2 Activities Performed in Cash and Remittance Department
Besides customer service department, activities are done in
remittance department during the internship period in EBL. Everest
remit, Demand Drafts, Telegraphic Transfers etc. are the major
modes used for remittance business by EBL. Intern helped the
customers to fill the remittance slip, checked the necessary
details to be filled up and also assisted the staff in the
department to photocopy the necessary documents. Intern stamped and
stitched the necessary documents. Intern counted the cash of
remittance and disbursed the amount after the verification of
transaction by the staff. Intern inquires different people about
the exchange rate of different dates and communicated to people
about the availability of different currencies at the branch.
4.3 Activities Performed in Clearing Department
The activities performed in clearing department are entitled
below.
1. To collect Other Bank ChequeThrough the clearing system,
other banks cheque amount can be directly deposited to banks
customer account. So, many customers deposits cheques for clearing.
Intern had to collect all the cheques for clearing and then check
the cheques thoroughly. Intern also checks the account no in
deposit slip. If everything is correct Intern receives it and
places it for further processing.
2. To put Necessary Stamps on the ChequeAfter collecting the
cheques, Intern puts the necessary stamps on the cheque. The stamp
includes cross stamp of EBL bank, cheque receive date stamp,
endorsement stamp and signature backside the cheque.
3. To Process the Outward Cheques ElectronicallyOnce the cheque
is stamped and signed is done, then it is processed through
Electronic Cheque Clearing (ECC) system. Intern scans the cheque in
ECC scanner. Then necessary details like Beneficiary's name,
Beneficiary's bank account number, Amount of cheque, drawee banks
name and its branch, drawers account no. etc. Once the entire
detailed are filled, it is forwarded verifier for verification. If
all the details are correct, verifier forward it to the ECC system
for clearing. If there is any error, verifier returns back to
repair the cheque for correction.
4. To Forward Cheques for CollectionSome financial institutions
are not member of Nepal clearing house limited. So, their cheques
cant be processed through ECC. They need to be cleared manually.
Intern had to separate of cheques of such institution, and then
forwarded to head office for the further processing.
5. To Generate Necessary ReportAt the end of the day, Intern had
to generate ECC report regarding honored and dishonored cheques.
The report shows whether the cheques are accepted or return along
with reasons for return. If the cheques are return, intern had to
inform customer about return of cheques.
6. Counting the Number of ChequesAt the end of the day, Intern
had to count the number of receiving cheque, clearing at that day,
accepting and returning cheque. After counting all cheque and then
forwarded messenger to keep in the volt.
4.4 Activities Performed in Credit & Marketing
Department
Intern observes and does some of the activities of credit and
marketing department. During interns tenure at credit department
intern helps the credit department staffs to search the loan
clients files, prepares necessary documents that is necessary to
get loan at EBL. Intern enquires about different loan schemes to
the clients. Intern calculated the installment amount of some
clients and instructs them about the process of repayment of loan.
Intern makes photocopy of necessary loan documents. Intern assisted
the clients in opening flexi account that is necessary to obtain
loans. Intern prepares the document of institutional loan clients.
Intern handles the telephone at credit department and forwarded it
to respective staffs.
4.5 Problems Identified and Solved
During internship program, although Everest bank is able to meet
the changing need of customers. In spite, of that some problems
have been analyzed and best suitable measures have been taken to
minimize the problem and solved them while working at EBL.
Following are some of the problems faced during internship:
1. Communication Problem2. Grievances Handling3. Unsystematic
Handling of Things4. Hesitations of Customers5. Work load
ProblemThe above mentioned problems have been analyzed during
internship program. So to handle these problems following steps
have been taken for each problem.
1. Communication Problem:Most of customers are locals with
minimum education qualification. They dont have proper knowledge
regarding the terminologies used in different forms, vouchers etc.
as forms are printed in english language.
To solve this problem as an intern they were clearly made
understood about the terminologies used by translating in simple
and understandable language, which help them to fill up the form
correctly and within short period of time.
2. Grievances HandlingIt is most important problem among the
problems. If it is not handled properly, it directly affects the
banks image; as a result customers are dissatisfied. They will stop
transacting with the particular bank and switch to other bank which
are eagerly waiting to provide them service.
To solve this problem customer service department can play the
important role, as this department is mainly in interaction with
their customers. So, as a staff at CSD intern interacts with
customers by being keenly interested in listening their grievances
properly and try to solve them. If the problem is critical then it
should be forwarded to CSD head for solution.
3. Unsystematic Handling of ThingsUnsystematic management leads
to failure. Unsystematic handling of thing is also a problem .It is
not a big problem, but if it is not managed properly and timely it
directly affects the efficiency of baking activities. To manage
this problem things were managed in a systematic way, so they are
readily available wherever and whenever needed creating a mark to
efficiency. For e.g. At CSD cheques order request are taken and
they are issued. Main problem was that when the customer visits us
and request for their cheque books, it would take a long time to
search for the respective cheque book. This had been a time
consuming act for customers resulting to their dissatisfaction. To
handle this problem cheques were alphabetically arranged in a date
wise format. Issued cheques of the particular date were tagged with
the similar date and kept in one side. This leads to increase
efficiency and customer does not have to wait for long.
4. Hesitations of CustomersIt is one of the problems faced by
most of the bank nowadays. It is difficult to identify since it is
related with psychology aspects of customers (customers behaviors).
Some customers hesitate to convey their problem to the related
staff. For e.g. sometimes if customer do not know how to feel up
the forms or even if they have to ask a piece of a simple
information, they prefer not to inquire about it. The bank cannot
read the mind of each and every customer who visited the bank. To
solve this problem taking initiation to ask customers regarding
their problem frequently and create the customers friendly
environment so that they will feel at ease and themselves convey
their problem.
5. Work Load ProblemAt the opening and closing time work load is
high. So, sometimes it is difficult to provide immediate services
to customers, which leads to dissatisfaction of customers. To solve
this problem, increase in the numbers of working hands directly
helps to reduce the work load. At the same time more customers are
facilitated with banking facilities, which directly benefited the
bank.
CHAPTER FIVECONCLUSION/ LESSONS LEARNT
5.1 Summary
The internchip period at EBL was a successful one, intern
learned about general working procedure of banks. Customer Service
Department is called as front desk as customer first contact in
this department for their queries which is one of the most
important departments of any bank. The department is responsible
for providing the surface level assistance to the customers. Cash
and Remittance Department is there to provide cash related
facilities to its customers. Similarly clearing department is
another department responsible for settling the interbank
transaction. Credit Department is there to provide credit
facilities to customers. All these departments of EBL are working
to make the organization number one in the industry. Intern is
there for two months period wherein the internee learns about
general banking activities of the bank.
All in all, Everest Banks CSD, cash and remittance department,
clearing department and credit department are good enough to lead
the bank to the success. EBL is excellent in terms of its services,
despite with some pros and cons with the issue related to customer
satisfaction. It has an opportunity to increase its market shares
serving large number of customer
5.2 Lessons LearntThe internship period of eight weeks gives
information about working environment inside the bank. It has made
an intern more confident and given the opportunity to show that the
intern has learned. The lessons learnt by the intern during the
internship period are as follows;
Acquire knowledge about the real working environment and the
different aspects of the managerial practices in the commercial
banks of Nepal. The importance of the proper organization culture
and its effect on the professional working environment. This
relates to the effective 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
customer of any business organization is the key to the success of
the organization. So, the organization should not forget its
existing customer and try to retain its customer as well as attract
new customer. Authority and responsibility relationship among the
various managerial and subordinate level in the hierarchy of the
commercial banks. One should be punctual, hard working, dedicated
to work and confident to be a successful professional. Learned
about the system of cash collection and disbursement of banks and
maintaining records of those. Learned about cheque clearance
procedures. Procedures for forms fulfillment of new account,
closing a/c and or for ATM card. About the requirements of
documents needed for opening, closing and applying for ATM card.
Knew how balance of customers is checked and how balance statement
is printed. Knew how a/c verification from old a/c number is done
and how printing of checks is done. To use scanner for scanning a/c
holders photo, a/c number, phone number and authorized signature.
In developing good interpersonal skill, patience, requirement of
displayed emotion, and harmonious relationship with customers. Knew
about various loan schemes and procedures to be followed in getting
loan.
Apart from above mentioned points, internee learnt various
interesting things which will help in every step of success.
BIBLIOGRAPHY
Everest Bank Limited. (2015). Annual report. Kathmandu:
EBLGautam, R. R., Gurung, R., Pokhrel, J., Kandel, R., &
Sigdel, S. (2011). Foundation of financial institutions and
markets. Kathmandu: Ayam Publication Pvt. Ltd.Nepal Rastra Bank.
(2012). Laws & legislations. Kathmandu: NRBNepal Rastra Bank.
(2012). Publications and reports. Kathmandu: NRBSaunders, A., &
Cornett, M. M. (2007). Financial markets and institutions. New
Delhi: Tata McGraw Hill Education Private Limited.Thapa, K., &
Neupane, D.k. (2008). Banking & insurance. Kathmandu: Asmita
Books Publishers & Distributors (P) Ltd.
APPENDICES
Appendix I: Commercial Banks in Nepal as of July,
2014S.N.NamesOperation Dates
1.Nepal Bank Limited1937/11/15
2.Rastriya Banijya Bank1966/01/23
3.Agricultural Development Bank Ltd.1968/01/02
4.Nabil Bank Limited1984/07/16
5.Nepal Investment Bank Ltd.1986/02/27
6.Standard Chartered Bank1987/01/30
7.Himalayan Bank Limited1993/01/18
8.Nepal SBI Bank Limited 1993/07/07
9.Nepal Bangladesh Bank Ltd.1994/06/05
10.Everest Bank Limited1994/10/18
11.Bank of Kathmandu Limited1995/03/12
12.Nepal Credit and Commerce Bank Ltd.1996/10/14
13.Lumbini Bank Limited1998/07/17
14.Machhapuchhre Bank Limited2000/10/03
15.Kumari Bank Limited2001/04/03
16.Laxmi Bank Limited 2002/04/03
17.Siddhartha Bank Limited2002/12/24
18.Global IME Bank2007/01/02
19.Citizens Bank International Ltd.2007/06/21
20.Prime Commercial Bank Ltd.2007/09/24
21.Sunrise Bank Ltd.2007/10/12
22.NIC Asia Nepal Ltd.2007/10/12
23.Grand Bank Nepal Ltd.2008/08/25
24.NMB Bank Ltd.2008/06/05
25.Kist Bank Ltd.2009/05/07
26.Janata Bank Ltd.2010/04/05
27.Mega Bank Limited2010/07/23
28.Civil Bank2010/11/25
29.Century Commercial Bank2011/01/23
30.Sanima Bank2012
Appendix-II: Board of Directors and the management teamBoard of
DirectorsS.No.MembersPositionRepresentative
1Mr.B.K. ShresthaChairman Promoter
2Mr.Ved K. ShresthaDirectorPromoter
3Mr. Arun Man SherchanDirectorPromoter
4Mr. Bal Gopal BaidyaDirectorPromoter
5Mr. Bishnu Mohan PandaDirectorPNB
6Dr. Rakesh GuptaDirector PNB
7Mr. Nabin Bhakta Shrestha DirectorPublic Shareholders
8Mr. Shiva Sharan K.C DirectorPublic Shareholders
Management TeamS.No.MembersPosition
1Mr. A.K. AhluwaliaCEO
2Mr. A.K. BansalDY. General Manager
3Mr. Rajesh GautamDY. General Manager
4Hum Nath GurangDY. General Manager
5Pramod Raj SharmaCompany Secretary
Appendix-III Capital Structure of EBLSNCapital Amount in Rs.
1.Authorized 2000000000
2.Issued 1921239051
3. Paid up 1921239051
Appendix- IV Deposit Schemes of EBLPlanning & Development
Circular No. 46 dt. 16/07/2015Re: Revision in Interest Rate of
Deposit Accounts Given the present scenario, the ALCO meeting held
on 16/07/2015 decided to revise the Interest Rates as under:Savings
Deposit Account (NPR)SNAccount TypesExisting RateRevised Rate
1.Normal Savings (General)2% p.a.2% p.a.
2.Savings- Shareholder2% p.a.2% p.a.
3.Savings- NRN2% p.a.2% p.a.
4.Pension Savings2% p.a.2% p.a.
5.Freedom Savings2% p.a.2% p.a.
6.Student Savings2% p.a.2% p.a.
7.Saugat Savings3%2.50%
8.Ghar- dailo Savings3.25%2.50%
9.Savings Mobile ATM3.50%2.50%
10.Baal Bachat3.50%3%
11.Naari Bachat3.50%3%
12.Supreme Savings3.50%3%
13.Super Savings3.50%3%
14.Remit Saving3.50%3.25%
15.Salary Saving3.50%3.25%
16.Saving Premium3.50%3.25%
17.Daily General Savings (Singadurbar)4%3.25%
18.Savings- Provident Fund4%4%
19.Staff Savings4%4%
Savings Deposit Account (FCY)SNAccount TypesExisting RateRevised
Rate
1.USD Savings0.75%0.75%
2.Euro Savings0.50%0.50%
3.GBP Savings0.50%0.50%
Call Deposit Account (NPR)SNAccount TypesRevised Rate
1.A/c with existing rate of above 4% p.a.Maximum up to 4%
2.A/c with existing rate of above 3% up to 4% p.a.Maximum up to
3%
3.A/c with existing rate of above 2% up to 3 % p.a.Maximum up to
2%
4.A/c with existing rate of less than 2% p.a.No change
5.Standard RateMaximum up to 1%
*the revision shall not be applicable for contracted accounts
viz. NTC & NEA.Call Deposit Account (FCY)SNAccount
TypesExisting RateRevised Rate
1.USD CallMaximum 1%Maximum 0.75%
Fixed Deposit (NPR)SNPeriodExisting RateIndividual
InstitutionalRevised RateIndividual Institutional
1.1 month to less than 3 months2.50%2.50%2%2%
2.3 months to less than 6 months3.00%3.00%2.50%2.50%
3.6 months to less than 1 year4.00%3.50%3.50%3%
4.1 year to 10 years5.00%4.00%4.50%4.00%
Above revision shall be applicable with effect from 20th July
2015
Appendix IV: Loan Schemes of EBL
EBL provides:1. Home Loan1. Home Equity Loan1. Vehicle Loan1.
Education Loan1. Flexi Loan1. EBl Property Plus 1. Professional
Loan Scheme 1. Loan against Mortgage1. Loan against Shares
