SIGNATORY PAGE

I/We certify that we have read this Internship report completed on Sunrise Bank Ltd., Newroad. In my/our

opinion, it is satisfactory in scope and quality as per the partial fulfilment for the undergraduate course of

‘Internship’ held at the Kathmandu College of Management.

Comments

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Kathmandu College of Management

COPYRIGHT

All rights reserved

No part of this report may be reproduced, stored or transmitted in any form, or by any means, without the

prior permission of the authors. No patent liability is assumed with respect to the use of the information,

contained therein. Although every precaution has been taken in the preparation of this report, the authors

assume no responsibility for error or omission.

Date: 20th May 2009

Copyright © Kathmandu College of Management

DISCLAIMER

The objective of the report was to gain knowledge about the working and functions of Sunrise Bank Ltd. The

views expressed in this report are those of the project team members and not those of Kathmandu College of

Management.

The authors are confident that the results presented in this report will be taken as guidance for a more

comprehensive study at the future date. The authors are not responsible or liable, legally against the results.

The views expressed in this report are those of project team members only.

ACKNOWLEDGEMENT

We would like to thank some of the people without whom this report would have been impossible to create.

Foremost, we would like to thank our instructor, Mr. Lakpa Gelu Sherpa for providing us with this

assignment, which provides us with a required balance of practical experience along with the theoretical

knowledge imparted upon us by him.

This project is a part of the course fulfilment of Internship according to the Kathmandu University for the

Bachelors in Business Administration Program.

We would like to thank Mr. Pritam Lal Shrestha, Branch Manager(Newroad) of Sunrise Bank Ltd.for

providing us with necessary information regarding this project.

We are also thankful to all other people whose constant support has led to the development and completion

of this report. We further expect their warm help in future.

Proshish Golyan

Akash Bagaria

Pragya Jain

(BBA-B)

8th Semester

EXECUTIVE SUMMARY

Purpose of the study

This project has been conducted for the partial fulfilment of our course “Internship” for the requirement of

the undergraduate level degree of BBA. It focuses on the commercial banking system that has been applied

in Sunrise Bank Ltd.

Objective of the study

The main objective of the project was to analyse the practicability of the theoretical aspects and a better

understanding of the subject matter. Under the training of two months, the report gives a detail outlook to the

techniques and functions that has been applied in the organization. Besides having the detail information on

the functions, the report also includes analysis and recommendation to the company that could benefit the

organization. The report includes the customer perception about the different products of the bank, how

these products can attract them and how the company can generate maximum profit by convincing them and

an environment analysis on where does the bank stand in today’s context. The specific objective of the

report is to Understand and analyse prevailing banking scenario of Nepal and be acquainted with the

performance effectiveness of the banks.

Scope of the study

This report can serve as a future reference for those who seek to learn about the financial system applied in

context to Nepal. It also includes the recommendation that would possibly be beneficial to the organization

in developing better functions.

Major findings

In the course of two month of training, we have come across few pros and cons of the company. Besides

being a very successful commercial bank, the company still has many places to improve and capitalize on.

Our SWOT analysis gave an enough in-depth view on the company’s current level of performance.

Considering the fact of the environment conditions, our recommendation may not be feasible in the short run

but still can be advantageous in the long run if implemented properly.

The major findings are as follows:

Active participation in dealing with the customers.

Good coordination among the departments.

Centralized working environment.

Good database management.

Proper information flow among the various departments.

Different products and services provided by the bank.

Customers’ perception about the different banks.

What are the problems faced on daily basis.

How to communicate with the customers.

Different techniques of dealing with the customers.

How to convince and convert a customer into a real customer

Limitations

In spite of working in Sunrise Bank Ltd for about two months as an intern, there are some limitations under

whose absence; the report would have been more comprehensive and analytical. The limitations were:

Time period of two month was very less to come up with the comprehensive and analytical

report.

In the course of making comparative charts of the products with the competitors it was

difficult to get hold of the product brochure of the competitors due to lack of time.

In the report preparation, complete transparency could not be maintained because of the

policy of the organisation of keeping few matters confidential to themselves.

SECTION 1

BACKGROUND OF INDUSTRY

1.1 Background of the Study

Nepal is Himalayan kingdom which lies in the South – Asian region of Asia. It is rich in its culture and

tradition. Nepal is a land - locked country which is surrounded by People’s Republic of China in the

North and India in the South, East and West. It has an area of 147181 square kilometers (56827 square

miles), extending roughly 500 miles from East to West and 90 to 150 miles from North to South,

making it a small country, sharing 0.03% of the total area of the world. It is vast and rich in terms of

topography.

About 83% of its area is covered by mountains and hills and about 17% of the area lies in the Terai

region. Nepal has 8 mountains which arise 800 meter above the sea-level including the Mount Everest.

There are also a wide range of climatic conditions and different types of flora and fauna ad also rare

medicinal herbs. All these features have made Nepal a favorite tourist spot for the foreigners.

Nepal is still a developing country even though it has a high potential in many sectors like water

resources and tourism. While the developed countries are advancing towards the high-tech innovation

but Nepal is still fig thing to reduce its high marginal poverty line. Due to decrease in GDP every year,

it is also considered as one of the poorest countries of the world. Nearly half of its population is living

below the poverty line. Agriculture is the mainstay of the economy, providing a livelihood for over 80%

of the population and accounting for 41% of GDP. Industrial activity mainly involves the processing of

agriculture producing jute, sugarcane, tobacco and grains.

Textile and carpet production accounts for about 80% of foreign exchange earnings. Development

plans in our country are not implemented as per the need of the time. Traditional working method

has left Nepal far away. Nepal still lacks the number of tools essential for the swift economic

development. The key-factors for the slow pace of economic developed country are our land-

locked position, political instability, unclear vision of leaders, deficiency in capital accumulation,

misuse of resources and power, lack of development of transportation, poor economic policy and

insufficient development of commercial sectors.

The government has also been cutting expenditures by reducing subsidies, privatizing state,

industries and laying of civil servants. Our country being a developing country, people have

relatively small saving left after consumption. A country should be able to collect and accumulate

the small savings from the people and create a huge reserve of fund or capital. This can be used to

invest in various productive and priority sectors and further fund needed can be generated only if

the people have higher savings. So, the country should utilize its fund by investing in such sectors,

which helps to increase the per capita income of its people. To make this possible the focus should

not be made only for the particular group of people, but for all the people living in the country. So

the basic concern of the developing country is to raise the level of saving and investment as well.

Development of banking sector is essential for the accumulation of the household savings. Banks

are capable of gaining the trust of the people rather than any other financial institutions, which

makes it easier to accumulate the fund through various types of deposits and saving schemes by

promising to pay attractive rate of return for the deposited sum. It also lends its fund to the people

of different sectors and regions

Banking institutions share hand in hand with the economic growth of the country. It not only

collects fund but also mobilizes it in different profitable, productive and priority sectors to have

balance in the economic development of the country. The establishment of rural banks has been

able to make the people of the part to have access to banking facilities.

The establishment of Nepal Bank Ltd. and Rastriya Banijya Bank was the milestone of the

economic development of the country. The establishment of foreign joint venture banks further

helped to accelerate the economic growth. There are altogether 25 commercial banks and 11 joint

venture banks operating in the Nepalese financial markets.

1.2. History and Development of banking.

It is unpredictable to confirm when and where the first bank was established. The word bank is said

to be derived from an Italian word “banco” or “bancus” which means bench. Bench is a place,

which is made for keeping lending and exchanging money or coins in the market place by money

lenders and money changers. The term bank was first used in medieval Italy. It is believed that

traditional forms of banking were traced during the Greek, Roman and Mesopotamian civilization.

Goldsmith, merchants, landlords are supposed to be the ancient bankers.

It is said that due to the war of 1771, Italy had to face great economic crisis and the government

decided to get forced loans from citizens promising to pay them back at annual interest rate of 5%.

This type of loan was called “mente” which means joint fund. Though banking system has been

introduced long time back, still the system was not found to be uniform.

The traces of rudimentary banking system are found in the chaldeans Egyptian and Phoenician

history. According to a French writer Rivilpout, banking system and bank notes had come into

existence at around 600BC. Bank of Venice is said to be the first bank that was public enterprise. It

was established in the 12th century in 1157 then the bank of Barcelona and the bank of Geneo were

established in 1401 and 1408. The banking system in England came in to existence from the

Goldsmiths. Bank of England was established in the 17 th century after the examination of the

goldsmiths. In India, banking system was developed throughout Europe and started spreading out

into outer world.

If we try to see the history f banking transaction in Nepal, it is found that, towards the end of the

14th century, Jayasthiti Malla, rules of kantipur classified the people into 64 different castes on the

basis of their occupation. The list included a caste called Tanka Dhari meaning money lenders,

were the owners of the monetary transactions. Thus tanka Dhari groups had authority to deal in

money and they also had business relationship with India and Tibet. Their main function were to

accept personal security and to advance loan for business transaction to grant loans for family

affairs, to help foreign trade etc. but due to lack of control to their monopoly there arose many

defects like exploitation. Again as their business grew up they began to charge exorbitant rate of

interest and their dues in loan advance. Due to such inconveniencies brought by money lenders

Prime Minister Ranodeep (1877-1885) established Tejarath Adda, a state financial institution.

Though Tejarath Adda did not carry out all banking activities, it was the first step towards the

institutional development of banking in Nepal. It did not collect the deposits from the public but

gave loans at 5% to employees and public against security of gold, silver and ornaments. The main

aim of this institution was to free people from money lenders exploitation.

Historical Background of Bank in Nepal

The growth of banking in Nepal is not so long even though the specific date of the beginning of the

first issued money and banking deed in Nepal is uncertain. It is stipulated that during the reign of

King Mandev, the coin “Manak” and “Gunuk” was used. The evidences of minted coin are

Amshuverma in 17th century and later the coin of Ishnugupta.

In the beginning of the century, King Gunakamdev renovated the Kathmandu city by taking loan

and at the end of the same century , a merchant named Shankardhar has started the “ New Year”

Nepal sambat at after freeing all the people of Kathmandu from the debt. This proves that the

system of money lending and paying back had started long before in our country.

The history of modern banking in Nepal started from 30th kartik, 1994(1938AD) after the

establishment of Nepal Bank Limited. Right from the inception, it carried out functions of

commercial bank. Being a commercial bank, it paid more attention to profit generation but it also

did pioneering function in developing banking habits among the people and of introducing other

bank services as well.

Under the Nepal Bank Act 2021 B.S., Nepal Rastra Bank was established in 14 th Baishakh, 2031 in

Nepal. Then Nepal Bank Act was regulated and Nepal Rastra Bank Act 2058 B.S. was enacted by

the parliament. This bank was established with many objectives but the main objective was the use

of Nepalese currency in the place of Indian currency. This bank is the government’s central bank

and the bank of banks as well. It helped in stabilizing the interest rate and creating credit in the

nation.

Since Nepal Rastra Bank could not handle the responsibilities of both central and commercial bank,

the need of new bank emerged.

Thus in 2022 B.S., Rastra Banijya Bank was established. Similarly in 2016 B.S., Nepal industrial

development corporation (NIDC) was established with the hope of uplifting the industrial sector of

Nepal. It granted long term loans, which could not be provided by the industrial banks. In 2024

B.S., Agricultural Development Bank (ADB) was established with an objective of developing

agricultural plants and machineries.

Importance of Bank

A commercial bank renders very reliable services to the community by increasing the productive

capacity of the country. The commercial bank can be listed as follows:

a. Legal entity and freedom from exploitation:- A bank registered under the different acts and

thus it has a legal entity. It supports to the public from being exploited through money

lender, merchants, and goldsmiths, who charge high interest rates on lending.

b. To develop industry and commerce: - A bank can provide loan for the industry and

commerce in need as it collects large scale of money on deposit. The industry and

commerce can be developed only from large amount of capital. Apart from lending money a

bank can provide technological and administrative services. Developed industry means the

boosted trade and commerce.

c. Transfer of fund: - Physical transfer of cash involves many risks and many cost but transfer

of fund from one place to another is the necessity for the common people in the day to day

life. So bank is a means to transferring funds to any corner of the world through their cast

mechanism and network by various expeditious modes.

d. Financial Intermediate: - A bank acts s a financial intermediate by mobilizing the saving of

the society as deposit and then providing money to those who are in need of it by granting

loan.

e. Safety of valuable assets

f. Employment Creation

g. To develop saving habit.

h. For monetarism economy.

i. Exchanging foreign currencies.

j. Uplifting poor people.

Types of Bank

There are different types of bank in modern economy. A single bank cannot fulfill all the services

demanded by the customers and cannot cover all the sector of the economy. So, different types of

banks specializing in different functional area are listed below:

a) Central Bank:-It is the apex body in the country’s banking system that controls monetary system

and banking structure in the economy performing the functions like credit controlling, agency

functions, lender of the last resort , clearing house, bankers bank and government’s bank etc. NRB

is the central bank of Nepal.

b) Commercial Banks: - Commercial banks are those banks, which pool together the saving of

community and arrange for their productive use. They finance the short-term needs of funds of

trade and industry i.e. working capital financing. They grant loan in the form of cash, credit and

overdraft. Apart from financing, they also render services like collection of bills, keeping of

valuable assets safely to their customers. These are really targeted to earn profit and also concerned

to accelerate common people’s economic welfare performing following functions.

o Accepting deposit on various accounts.

o Lending money for various sectors and purposes.

o Agency functions like paying checks, L/C, draft and fund transferring by the means of T/T, mail

transfer etc.

o Providing locker facility.

o Issuing credit card and traveler’s check

o Underwriting securities etc.

c) Industrial Banks: - Industrial Banks are those banks that provide short-term, medium-term and

long-term loans for establishing or operating industries in the country. It also provides loan for

purchase of land, equipment, machinery and construction of building etc. NIDC is the industrial

bank of Nepal.

d) Development Banks: - Development Banks are those banks whose aim is not to earn profit.

Development Banks are of two types. The first one is concerned with financing loan in agricultural

sectors for short, medium and longterm purposes and the second one are concerned with financing

in infrastructure development in the country. Nepal agricultural Development Bank and Western

Rural Development Bank are the example of two types of development bank.

e) Exchange Bank: - It is also called export-import bank. It deals in settlement of transaction

regarding foreign trade and foreign currency. It provides remittance facility also. They usually have

good connection through networking with different banks around the world. RBB is an exchange

bank of Nepal.

f) Rural Development Bank: - A Rural Development Bank is established with the objective of

uplifting the living standard of the people of rural areas by encouraging them to start the possible

income generating occupation, by providing loan without security and providing necessary training

and bank servicing. Till now, Eastern Rural Development Bank Ltd, Far Western Rural

Development Bank Ltd, Western Rural Development Bank Ltd, Mid Western Rural Development

Bank Ltd. And Multiple Rural Development Bank Ltd, are established in Nepal.

g) Saving Bank: - The objective of saving bank is to mobilize the small savings and to promote saving

in the country. In other words, saving banks are specialized institutions, which induce small income

groups to save something out of their incomes and pool such savings. They are entitled for

withdrawals also. The largest saving bank in the world is Criplo of Italy.

h) Co-operative Bank: - co-operative banks are those banks that operate on the principle of co-

operation. They collect small deposits, mobilize small savings and provide short term and medium

term loans to their members. There are number of co-operative banks operating in Nepal at present.

i) Merchant Bank:- Any person who is engaged in the business of issue management either by

making arrangement regarding selling, buying or subscribing to securities as manager, consultant,

advisor or rendering corporate advisory services in relation to such issue management. Merchant

banks also accept time deposit and finance in trade and industry. The main source of capital of

merchant banks are the time deposited and by the issue of securities. Nepal Sri Lanka merchant is an

example of merchant bank of Nepal.

j) Others: - Till now, the following banks are not opened in Nepal but this bank is formed in other

countries.

Mutual funds: - Mutual funds are also type of bank who collects money by selling its shares and

securities and invest the receipt in secured markets. It is very useful who do not want to bear

maximum risk in their investment.

Labour Bank: - It is the provision for labor of factories, industries. In developed countries,

government of the country established such kind of bank to uplift the labors and to provide

banking services to them.

Student Bank: - It is established with the objective of providing banking services to the student of

college and universities.

Pension funds: - It accepts legitimate deposit from employees of different organization. Employee’s

provident fund is a good example of pension fund in Nepal.

1.6. Commercial Bank

According to the American institute of Banking defines, “Banks as commercial bank is a corporation

which accepts demand deposit subject to check and makes short term loans to business enterprise

regarding of the scope of its other service”.

In Nepalese context, Nepal Commercial Bank Act 2031 (1974), section 2(a) defines “A commercial

bank is one which exchange money, deposit money, accepts deposit, grants loans and performs

commercial banking functions”.

As per U.S. Law “Any institution offering deposit subject to withdrawal on demand and making loans

of a commercial or business nature is a bank”.

According to Black’s Law Dictionary, “Commercial bank means a bank authorized to receive both

demand and time deposits, to engage in trust services, to issue letter of credit, to rent time deposit boxes,

and to provide similar services.”

The commercial bank are those banks which perform all kinds of banking functions as accepting

deposit, advancing loans, credit creation, and agency functions. They supply the financial needs of

modern business by various means. They accept deposits from public on the condition that they are

repayable on demand or on short notice. All the banks established under Commercial Bank Act 2031,

Company Act 2053 and Central Bank 2058 are termed as Commercial Banks.

The primary objective of Commercial bank is to maximize their profit. Beside it also focus on

accelerating common people’s economic welfare and facility, make loan available to agricultures,

industry and commerce and provide banking services to the public and the state.

Table 1: List of Licensed Commercial Banks

S.No Commercial Banks Establishmen

t Date

Head Office

1. Nepal Bank Ltd. 1937/11/15 Kathmandu

2. Nabil Bank Ltd. 1984/07/16 Kathmandu

3. Rastra Banijya Bank 1966/01/23 Kathmandu

4. Standard Chartered Bank 1987/01/30 Kathmandu

5. Agriculture Development Bank Ltd. 2005/07/14 Kathmandu

6. Everest Bank Ltd. 1994/10/18 Kathmandu

7. Himalayan Bank Ltd. 1993/01/18 Kathmandu

8. Nepal Investment Bank Ltd. 1986/02/27 Kathmandu

9. Bank of Kathmandu 1995/03/12 Kathmandu

10. Nepal SBI Bank 1993/07/07 Kathmandu

11. Nepal Bangladesh Bank Ltd. 1993/06/05 Kathmandu

12. Nepal Industrial and Commercial

Bank

1998/07/21 Biaratnagar,

Morang

13. Nepal Credit and Commerce Bank 1996/10/14 Siddharthanagar,

Rupendehi

14. Nepal Merchant Bank 1996/11/26 Kathmandu

15. Laxmi Bank 2002/04/03 Birgunj, Parsa

16. Kumari Bank 2001/04/03 Kathmandu

17. Machhapuchhare Bank 2000/10/03 Pokhara, Kaski

18. Global Bank 2007/01/02 Birgunj, Parsa

19. Citizens Bank International Ltd 2007/04/20 Kathmandu

20. Prime Bank 2007/09/24 Kathmandu

21. Sunrise Bank 2007/10/12 Kathmandu

22. Bank of Asia 2007/10/12 Kathmandu

23. Siddharth Bank 2002/12/24 Kathmandu

24. Lumbini Bank 1998/07/17 Narayangadh,

Chitawan

25. Development Credit Bank Ltd. 2008/05/25 Kathmandu

26. Kist Bank 2009/05/07 Kathmandu

All the above banks have their head office in Kathmandu spreading their branches to various

regions. But after 2052 Nepal Rastriya Bank allowed regional banks to be established.

FUNCTIONS OF COMMERCIAL BANK

The function of commercial banks is directly related with the people and institution.

To Accept Deposit

The commercial bank accepts the deposit of money from the public in three different types of

deposit accounts. They are Current, Saving, Fixed Deposit Account. The customer can withdraw

their money from the account according to their need and as per the rule of the bank. However, the

interest is provided only to the account holders of saving and fixed account. The commercial bank

performs the important function of accepting all sorts of deposit. It earns profit by investing the

money into profitable investment proposals.

To Provide Loan:

Commercial Banks provides loan to a person, company and institution for different purposes and

at various interest rates. A commercial bank is capable to gain benefit in its banking

development by receiving the interest as per law and its internal policies.

Agency Functions:

The commercial bank also acts as an agency. It carries out these works for its customers in the

following ways:

a) A bank makes payment for the cheque, draft, and bill of exchange presented by the customer

after taking commission.

b) On the request of its customers, a bank transfers money from one place to another place by

drafts, mail transfer or telegraphic transfer.

c) A bank collects the interest on governmental bond and the profit to the share of the company

for customers.

d) A bank buys and sells a company’s shares and governmental security bonds.

e) A bank also pays rent of the house, premium of the insurance and income tax etc on behalf

of its customers.

f) A bank provides letter of credit to its reliable customers.

General Utilities Functions:

A commercial bank discharges the following functions of general utility:

A bank issues traveler’s checks in the customer’s name and communicates the credit

information or notice for its customers.

Once the central bank has given the permission to carryout the transaction of foreign

currencies, the commercial bank exchanges the foreign currencies earned by its

customers.

A bank provides locker facility to its customers to keep valuable metals, ornaments and

documents safely.

A bank gives economic and professional advices to its customers

A bank collects important commercial information and data for its customers.

COMPANY BACKGROUND

Introduction

In an economy driven by appetite for success, Sunrise Bank Limited is "Rising to Serve" by defining new

levels of services and products. The bank is founded by reputed entrepreneurs, and it understands the needs

of a growing economy.

The team of seasoned banking and management professionals have dedicated themselves to establishing an

institution determined to cater to the needs of all, be it big or small. The bank believes that customers

aspirations are their benchmarks and they will always be "Rising to Serve".

Banks corporate slogan

“Rising to Serve”

Vision

To become a dominant player in the Nepalese Banking Industry by the year 2012 A.D.

Mission

Continuous Offering of tailor made banking services to all levels of society, with no constraint on time,

location, size of transaction and all aspirations.

Objectives

To continuously expand Bank's operation in systematic manner

To become a major innovative Bank and provide top of the line services

To build an HR team that continuously supplements the growth of the organization

To be vigilant to the evolving economy and align our operations accordingly

Focus

The main objective in the near term would be to protect revenue lines by providing solutions to the

customers through value added and structured products at competitive pricing. The bank focuses on the

following plans:

o The bank has a Vision – “Rising to Serve”.

o It focuses on product quality and service excellence which has helped it garner the appreciation

of national organizations.

o It focuses on ensuring that their corporate responsibility aspirations are aligned with their

business strategy.

o It is maintaining good credit quality portfolio for tourism related industries.

o It focuses on the Consumer Banking

o Attaining fairness for all stakeholders, as well as achieving organizational efficiency.

o Providing financial assistance to customers and functioning as the principal financial institution

and coordinating the working of institutions and public interest.

o Becoming nationally competitive banking organisation while improving its prime position in

niche area through qualitative and quantitative growth with generation of surplus in an

environment of growing professional and technological competence.

o Being a leading, global, client-focused, innovative and low-cost provider of financial services

through the distribution channels of the client’s preference in markets where Sunrise Bank can

create value.

BOARD OF DIRECTORS

CAPITAL STRUCTURE

Subscription % Holding

National Investment

Individual promoters 70%

CHAIRMAN(Mr. Tolaram Dugar)

DIRECTOR(Mr. Shrawan

Goyal)

DIRECTOR(Mr. Bachh Raj Tater)

DIRECTOR(Mr. Motilal

Dugar)

CHIEF EXECUTIVE OFFICER

(Mr. Kishore Maharjan)

DIRECTOR(Dr. Bhogendra

Guragain)

DIRECTOR(Mr. Shreeniwas

Sharada)

General Public 30%

TOTAL 100%

Capital Structure

Capital Amount in Rs.

Authorized Capital 2 Billion

Paid-up Capital 1 Billion

EQUITY PARTICIPATION OF SUNRISE BANK LTD

INDIVIDUAL PROMOTERS

70%

GENERAL PUBLIC30%

EQUITY PARTICIPATION

PRODUCTS/SERVICES

NORMAL SAVINGS

Minimum Balance-NRs. 0.00

Interest Scheme: Monthly Minimum

Balance

Current Interest Rate: 6.50 % p.a.

SUNRISE BAL BACHAT KOSH

Minimum Balance

Up to NRs 25,000.00 (5% p.a)

NRs 25,001.00 to NRs 100,000.00

(5.25% p.a)

NRs.100,001.00 to NRs.

200,000.00 (6.00% p.a)

Above NRs 200,001.00 (6.50%

p.a)

USD SAVINGS ACCOUNT

Minimum Balance: USD 10.00

Interest Rate: 0.25%

SUNRISE SUPER SAVING

Minimum Balance-NRs. 10,000.00

Interest Scheme: Daily Balance

Interest Rate

5.25 % interest on daily Minimum

Balance of NRs. 10,000.00

6.10 % interest on daily Balance

upto NRs. 500,000.00

6.35% interest on daily Balance

upto NRs. 5 Million

6.60% interest on daily Balance

above NRs. 5 Million

FIXED DEPOSITS

Minimum balance: NRs 10,000.00

Minimum Interest Rate

14 days 3%

1 month 3.50%

3 months 4.00%

6 months 4.50%

1 year 5.75%

13 - 24 Months 6.25%

LOANS AND ADVANCES

Demand Loan

Fixed Term Loan

Import Loan

Overdraft Loan

Short term pledge loan

Export Finance

Hire Purchase

Deprived Sector Loans

Consortium Loan

LOANS AND ADVANCES

Sunrise SME Loan

Sunrise Ghar Karja

Sunrise Sajilo Karja

Sunrise Educational Institute Loan

Loan against Bank Guarantee

Loan against Government Bonds

Loan against Shares

Loan against Fixed Deposits of other

Banks

Within the scope of above-mentioned products, bank also offers customized products and facilities in match

of the customers business needs.

CONTRIBUTION OF COMMERCIAL BANK TO ECONOMY

Bank plays a vital role in accelerating the economic development of a country. The commercial banking

system in Nepal is still in its infant stage as compared to other developed countries; however, the role of it in

economic as well as industrial development and promotion of agriculture industry trade and commerce is

immense. Bank is also playing a social role providing loans in priority sectors, cottage and small-scale

industries, production credit for rural women, deprived sector credit program, micro credit program, etc.

Beside this, it has been providing necessary financial and technical support to develop national economy.

Principal Factors Affecting Business of the Bank:

o Threats due to intense competition as result of increase in the number of financial institutions.

o The inherent risk associated with long – term loans, working capital loans as well as the non-fund

based services such as letters of credit / guarantees provided by the bank

o Probable risks arising from amendments in the directives of NRB relating to and changes in the

interest rates.

o Probable risks arising from changes in commercial banking policies implemented by NRB.

o Probable risks arising from unprecedented changes in the regulations issued by NRB, including

the changes in national monetary and fiscal policies.

o Risk inherent in foreign exchange transactions arising due to Volatility of foreign exchange rates

o Interest rate risk associated with deposit, lending and investments.

o Financial Risk arising from non-recovery of loans in times.

o Risks emanate from decrease in spread from credit and investment.

o Economic risks inherent with slackness in international market and its impact in Nepalese

market.

o Risks associated with fluctuations in the capital market.

o Risks associated with the volatility in the country’s economic condition.

Nepal Government has adopted liberal economic policy and allowed for the establishment of private as well

as joint venture banks under collaboration with different foreign banks. Since then the banking sector of

Nepal has developed a lot.

COMPETITIVE ENVIRONMENT ANALYSIS:AKASH

IN DEPTH DESCRIPTION OF JOB PERFORMED

We were asked to work in three departments in our 10 weeks internship period. Our job was rotated within

the business desk , credit department and remittance department as per required. The study was not detailed

but we gained general idea about the functioning of each department.

Details of work performed in the business desk

Interaction with customers about various products and schemes offered by the bank.

Handle the customer queries as effectively as possible.

Convince customers to go for high deposit schemes. Convice them to open an account with certain

minimum balance requirement rather than zero balance.

Learned to operate Pumori software

o Account opening

o Balance enquiry

o Printing account statements

o Printing cheque books

o Image scanning

o Activating SMS banking and internet banking

Filing and maintaining documents of the customers.

Learned to operate locker transactions and ATM transactions.

Details of work performed in Remittance Department

Assisted in making demand drafts , telegraphic transfers and letter of credit.

Transaction entries for cheque clearance.

Informed customers about receipt of their payments.

Details of work performed in Credit department

Learned about the documents required for meeting the loan criteria.

Acquired information on the types of loans and details about each loan category

Site visit for property valuation.

Assisted in evaluating the project to the credit department head.

Working as an intern undoubtedly helped us build our knowledge about the banking industry. It also

benefited the organisation as we assisted them in their daily work. It helped the employees manage the

customer queries more productively.

STRENGTH AND WEAKNESS WHILE CARRYING OUT WORK

SECTION II

Customer Preference

Background

Banking business in Nepal is growing rapidly. As we now that the main objective of any business

organization e.g. bank, is profit maximization, and knowing your customers, is a key factor to attain this

objective. Therefore, if the bank fails to understand the customer in a suitable way, it is not possible to

maximize profit. In order to be among the top banks, it must find out how customers perceive the

current services provided by the bank and the level of satisfaction with those services. Bank should also

find out the reason for customer dissatisfaction and measures to improve level of satisfaction. Further

bank should also find the need of the customer’s i.e. the gap between the services provided by the

existing banks and the need of customers. Bank should come up with new service to fill the gap. The

commercial Bank should have a good knowledge regarding the factors that influence the customers to

maintain an account in their banks. We plan to find out the factors shaping customer perception through

conducting a market research.

Specific Objective of Study

The major objective of this study is to identify the following:-

To find out whether customers are satisfied with the existing banking service or not.

To gain professional experience as an intern in one of the pioneer commercial banks in Nepal.

To find out the areas of improvement in the bank and provide achievable solution.

To analyse the practicability of the theoretical aspects and a better understanding of the subject

matter.

To analyse customers attitude toward banking service.

Scope of the study

This report will work as a useful source of information for those who are looking for a comprehensive

insight on overall banking scenario of Nepal. The scope of the study is to know how services are

provided to the customers and what customers perceive about the same. Bank always has a scope to

improve performance on current services by knowing customer response along with introducing new

products and services. Analysing customer’s attitude and perception towards existing banking service

and their demand will definitely facilitate the bank to take action to satisfy customers.

Limitation of the Study

Each and every study has some constraints and limitation. In this study, the main limitations are as

follows:

It was not possible to understand thoroughly about the different marketing aspects within 60 days.

Geographical limitations: All the work was limited in some limited areas of Kathmandu so the

findings should not be generalized. The area of research was Kathmandu and it was too vast an

area to cover within 60 days

Time and budgetary constraints that prohibited in conducting in-depth survey at different

geographical areas.

Sceptical attitude of the respondent to share their information.

Difficulty in analysing the information obtained from respondent due to the qualitative nature of

information.

Sample size for research is limited.

LITERATURE REVIEW

Theoretical concept of customer preference

Customer perception, no matter how difficult to be measured, can be improved via continuous practice.

Customer preference is the power or ability to choose one thing over another with the anticipation that the

choice will result in greater satisfaction, greater capability or improved performance. Preference has

demonstrated the ability to be effectively measured and to provide meaningful insight into the choices

consumers make when selecting one provider over another and when determining to continue a relationship

over time.

It's always pleasant and easy to pursuing customers' perception, though sometimes measuring it would be

relatively difficult. Constantly taking customers oriented and standing in their shoes to consider their

requirements, shall be the precondition of improving customers' perception. Furthermore the key method of

improving customers' perception is to fully understand, elaborately configure, effectively manage, and

exceed customers' expectations. "Total Customer Satisfaction" and "Service Creates Value" truly reflect the

truth of establishing and developing win-win partner relationships with customers.

Have you ever wondered why your company often loses relatively satisfied customers?

Why is it that customers will often indicate they are satisfied with how they have been treated but

then leave for a competitor at the first opportunity?

These questions can be answered by understanding customer preference.

The idea that customers prefer one product or one service over another is not new. The ability to identify

and measure the elements of such preference decisions has become a necessity in this competitive

environment.

In order to understand preference we need to determine the functional or performance demands involved in

the purchase, the desired emotive outcomes, and the subjective norms consumers use to determine their

desire for one product or service over another.

We prefer some product, someone, or some service because we determined the object was best aligned with

our performance and emotive requirements as judged through our comparative norms. We evaluate the

performance in light of how well the product, person or service meets our preference expectations.

Customer preference analysis is really a call to action. By understanding the preference formation

components and the preference expectation evaluations by group or segment of customers, companies can

design response strategies that are truly responsive to vital customer expectations and that differentiate in the

marketplace.

RESEARCH METHODOLOGY

Research methodology is concerned with various methods and techniques used in the process of

research studies. They include quantitative techniques for analyzing data and information collected.

Conviction that the choice leads to certain

desired functional outcomes Attitude toward the

behaviorEvaluation of the

outcomes

Conviction that the choice leads to certain

desired emotive outcomes

Preference Behavior

Intention

Conviction that the choice is considered

correct by othersSubjective comparison

normMotivation to comply

with the opinion of others

There fore, the selection and use of research methodology determines the reliability of the report. a

sound systematic methodology can expose the actual result of specific study. It refers to various

sequential steps that are adopted in this study.

Research Design

This study mainly involves use of primary data such as interviews and market research. Such data and

information has been processed through various process like tabulating, calculating and research have

been interpreted in the form of diagram for a clear view.

Table 2(Nature of Data Collected)

Primary Secondary

Q

ual

itat

ive

Dat

a

Unstructured interviews with the Executives

of SBL:

Mr. Pritam Lal Shrestha,Branch

manager, Newroad.

Ms Sadikshya Acharya,business desk

employee.

Mrs. Rabina Pradhan,Deputy Branch

Manager

(Internal Information)

Internal circular of SBL regarding

the various policies.

(Internal information)

Q

uan

tita

tive

Dat

a

Questionnaire Survey on the potential and

existing customers

(External Information)

Financial Statement and Annual

Reports of the Commercial Banks

chosen for the study

(External Information)

Annual Reports - SBL

(Internal Information)

SAMPLE SIZE:

Sample size for this project was 200 respondents. Since it was not possible to cover the whole universe in

the available time period, it was necessary for us to take a sample size of 200 respondents.

PRESENTATION AND ANALYSIS OF DATA

Presentation and analysis of data is done to analyze the data in a simple and understandable way.

Different tools like: histogram, pie-chart, circle, bar diagram etc were used to present data, which leave

an everlasting impression on the mind.

DATA ANALYSIS AND INTERPRETATION

Serial

No.

Target Group Number of

Respondents

Percentage

1 Service 50 25%

2 Business man 50 25%

3 Housewife’s 50 25%

4 Student 50 25%

Total 200 100%

Base 200 respondents

FACTORS CONSIDERED BY SERVICE MAN WHILE OPENING AN ACCOUNT

SATISFACTION LEVEL AND SWITCHING DECISION OF SERVICE MAN

YES60%

NO40%

Are you satisfied with your exist-

ing Bank ?

YES72%

NO28%

Would you switch if better

service provided ?

Customer service25%

Interest rate12%

Location16%

Reliability8%

ATM Card4%

Bank Commission/

charges35%

BUSINESSMAN

YES53%

NO47%

Are you satis-fied with your existing Bank ?

YES16%

NO84%

Would you switch if better

service provided ?

Cus-tomer service

16%

Interest rate42% Location

10% Reliabil-

ity3%

ATM Card27%

Bank Commission/charges2%

STUDENT

FINDINGS:

From the graph above it can be seen that students are more likely to be interested in interest while opening

an account in bank. 42% of respondents consider the higher interest rates while opening an account in bank.

It is then followed by the ATM facilities. With the change in trend among youths, it is been seen that use of

ATM facility is increasing more and more among students. 27% of respondents consider debit cards to be

their foremost reason to open an account. Free ATM card has been used by most of the banks in order to

attract youths. They are then influenced by the customer service. 16% of respondents regard service

provided by the bank as the major criteria while choosing a bank. It is then followed by location with 10%,

reliability by 3% and commission charges 2%. This shows that students do not believe the reliability and

commission charges as an important factor because their basic motive of opening account is savings than

any other reason.

INTERPRETATION

Banks should thus focus more on increasing their interest rates on deposits and offer free debit card as

students are more likely to be attracted with interest rates offered and ATM facilities. Students do not seem

much concerned with the reliability and location of Bank. So, new banks should try to target the youth

segment by offering better deposit schemes.

YES79%

NO21%

Are you satisfied with your exist-

ing Bank ?

YES88%

NO12%

Would you switch if better

service provided ?

FINDINGS

From the graph above,it can be seen that most of the students are satisfied with the existing bank. 79% of

respondents are satisfied with their existing bank while 21% still believe that they are not provided with

better customer service and so are not satisfied. Further, from the second graph it can be seen that if provided

with better service and schemes, 88% of respondents are likely to change their bank accounts while 12%

woud not switch their account. The reasons for not switching the account besides knowing the fact that

better service is provided, 62% of them believed that switching the account would cost them as closing

charges are high. 18% consider changing the account as time consuming and 17% of them consider it to be

troublesome while only 3% have considered banks reliability as a major factor of not switching to other

banks besides knowing the fact that better service could be provided by new banks.

INTERPRETATION

It can be clearly seen that students are satisfied with their existing bank but would switch to other banks if

provided by better service. While the major reason for not switching is the high closing charge. So,the new

banks should come up with new deposit schemes as students are more liekly to change their accounts from

time to time. On the other hand, established banks should come up with higher closing charge so that its

existing customers do not switch to other banks.

Customer service2%

Interest rate59%

Location26%

Reli-ability

7%

ATM Card6%

HOUSEWIVES

FINDINGS:

From the graph above it can be seen that housewives are more likely to be interested in interest rates while

opening an account in bank. 59% of respondents consider the higher interest rates while opening an account

in bank. It is then followed by the location. 26% of the respondents consider location as an important factor

while opening an account. It is been seen that housewives are likely to save more compared to men and they

would put their money where they would get higher rates and convenient for them to reach the location. 7%

of respondents consider reliability of bank to be their foremost reason to open an account. 6% of them regard

free ATM card as they are more into shopping and purchasing. They are then influenced by the customer

service. Only 2% of respondents regard service provided by the bank as the major criteria while choosing a

bank. Finally, it can be seen that housewives do not believe the commission charges as an important factor

because their main reason of opening account is savings and convenience. They are least bothered with

commission charges.

INTERPRETATION

New banks should thus focus more on increasing their interest rates on deposits and put on their ATM

outlets at most of the area. Opening outlets at many locations is not possible but the bank can come up with

schemes like collecting the money from home itself.

YES92%

NO8%

Are you satisfied with your existing

Bank ?

YES54%

NO46%

Would you switch if better

service provided ?

FINDINGS

From the graph above,it can be seen that most of the housewives are satisfied with the existing bank and few

are not. 92% of respondents are satisfied with their existing bank while 8% still believe that they are not

provided with better customer service and so are not satisfied. Further, from the second graph it can be seen

that if provided with better service and schemes, 54% of respondents are likely to change their bank

accounts while 46% woud not switch their account. The reasons for not switching the account besides

knowing the fact that better service is provided, 30% of them believed that switching the account is time

consuming. 25% consider banks credibility and 22% of them consider it to be troublesome. 13% do not

switch their account due to high closing charge while 10 % do not switch their account as they are loyal to

their existing bank.

INTERPRETATION

It can be clearly seen that housewives are satisfied with their existing bank . Some would switch to new bank

if provided better service while some would not. The major reason for not switching is time consuming and

troublesome factor. So,the new banks should avoid lots of documentation and long que people have to face

in order to attract housewives. Bank should come up with easy policies so that it becomes easier for them to

open an account.

Charge32%

Location41%

Size4%

Bank’s reliability17%

Key Deposit6%

Locker Preference

FINDINGS

From the graph above, it can be seen that 41% of respondents regard location as a very important factor

while taking lockers. It is then continued by the charge factor. 32% believe the locker charge as an important

factor while opting for lockers. It is then followed by reliability i.e. 17%. Further, 6% of respondents

consider key deposit while 4% of respondents consider the size while taking lockers.

INTERPRETATION

It is been seen that Banks while opening a branch do not take into consideration the lockers and open it in a

busy area .Banks should focus more on a security part.

Frequent failures of ATM

Excessive documentation

Limited counters

Delayed response

Unfriendly staff

0 5 10 15 20 25 30 35

Factors disappointing customers

Recommendation given by respondents

o Proper management of customer rush during busy hours by increasing the number of bank counters.

o Better customer service through addressing the complaints and queries of customers more effectively

and quickly.

o Frequent errors in ATM must be eliminated.

o High interest rates in deposits and lower interest rates on loans compared to other banks.

o Offer new products/services in regular interval.

o Good employee behaviour so that it becomes easier to communicate.

o Middle level clients should be given the same service as to bigger clients.

o Proper information about the hidden cost and other relevant charges, for ex: taxes, annual renewal

charge, maintenance charge etc. should be given to the customers.

o Most of the customers feel that getting an introducer for opening an account is very difficult .They

don’t find it necessary to have an introducer.

o Customers want bank to inform them a week before about their minimum balance fees that would be

deducted by the bank in case the balance goes below the minimum requirement.

o Credit facility should be made more flexible. The current system is such that the bank provides loan

to those who have surplus money. Priority should be given to the deficit unit with repayment

capability.

o Reduction in bank commission and other charges.

EXPERIENCE

Proshish Golyan

“Communication skills, Professionalism, Presentation abilities and Confidence, handling the stressful

situations, having an experience of a reputed organization has one huge advantage, it makes you more

professional and professionalism is the key to success”

Working with Sunrise Bank Ltd on outbound projects added a great value to my skills, knowledge and

abilities and hence gave me a chance to relate my studies in the practical working environments. My

communication skills improved and I feel more confident then I was. I learned an enormous amount about

specific software tools as well as about how to apply techniques in real-world development. I also learned a

good deal about marketing and operational activities. This experience has helped me broaden my vision and

be more practical.

Pragya Jain

“It is nice to have an end to a journey but it is the journey that matters in the end.”

It was a great opportunity for me to get a chance to work as an intern in Sunrise Bank Ltd. The supervisors,

mentors and all other members of the company helped me a lot to adapt to the work environment.

I got a chance to apply theoretical gained knowledge of Commercial banking in the practical working

environment. I could apply those skills practically and hence was able to better understand how things

actually worked. I was able to provide the company with some recommendations for further improvement in

the company. Interacting with customers was really fun. I learned how to influence and persuade customers

to buy the product.

Working as an intern in the company help me develop my confidence while talking and dealing with people.

I was able to fine- tune my skills while working in the professional ambience of the group. I am glad that I

could learn and contribute to the organization at the same time.

LEARNINGS

The major things we learned by working at Sunrise Bank Ltd were:

Respect each other and value people’s ideas.

Take pride in your work and your company.

Listen to our clients, customers and to each other

positive organizational behaviour

positive communication skills

dealing with the customers,

team work,

following the rules and creating self ethics for our own success,

motivation and self motivational techniques

fact based decision making

creating quality and customer satisfaction while exceeding the organizations expectations

commitment, loyalty and hard work are the key learning’s of our time we have spent working with

Sunrise Bank Ltd..

CONCLUSION

As per the requirement of course of study of BBA 8 th semester, we have completed our internship program

from Sunrise Bank Ltd, Newroad, Kathmandu. By far the BBA courses have provided us with the

theoretical knowledge but due to the internship we got an opportunity to match our theoretical knowledge

with the real life experiences. This internship program has helped us to enhance our communication skills

and interpersonal skills.

Having an experience of the practical life and to work with a lot of talented and experienced people always

adds some thing to your knowledge. It will be an unforgettable experience of our life where we learnt the

way to behave and polish our abilities at the organization level, had the experience and exposure of

performing and handling tasks

At Sunrise Bank Ltd, we also learned how to deal with customers, how to handle customer complaints.

That was to listen carefully to the customers, emphasis by feeling the pain of the customers, apologise the

customers, and react by deciding what to do in order to resolve the problem.

So we would like to conclude our report by thanking the organization for giving us a wonderful lifetime

experience.

QUESTIONNAIRE

Dear Respondents,

We are students of Kathmandu University conducting a survey for a bank, on people’s preference.

We request you to answer our questions here and help us in our study. We promise the information you

provide will be dealt with complete confidentiality and will not be disclosed to anyone.

1. What is your profession?

o Service

o Business man

o Student

o Housewife

o Others

2. Do you have any bank account?

o Yes ○ No

3. If yes, what are the factors you considered while opening an account in bank? (Please rank them from 1 to 5)

o Customer service ______

o Product/services offered ______

o Interest rate ______

o Location ______

o Reliability ______

o Others ______

4. Are you satisfied with your existing bank?

o Yes ○ No

5. If other bank provides you better service, would you switch to some other bank?

o Yes ○ No

6. If no, what is the reason?

o Bank’s credibility

o Time consuming

o Trouble in changing bank

o Closing charge

o Loyalty towards existing bank

o Others (Please specify) …………………

7. What are the factors disappointing you in the current banking service?

o Frequent failures of ATM

o Excessive documentation

o Limited counters

o Delayed response

o Unfriendly staff

8. Does your bank have locker facility?

o Yes ○ No

9. Rank the attributes as per your preference in lockers?

o Charge

o Location

o Size

o Bank’s reliability

o Key Deposit

10. If you would like to add/change something in bank services, what would it be?

…………………………………………………………………………………………………………………

…………………………………………………………………………………………………………………

Thank you for your time and co-operation