You are on page 1of 37

OVERALL BANKING ACTIVITIES

OF
EVEREST BANK LIMITED
An Internship Report
A Report Submitted To
Office of the Dean
Faculty of Management
Tribhuvan University
Kirtipur, Kathmandu
In the partial fulfillment of the requirement for the degree of

Bachelor in Business Administration (BBA)

Submitted By:
Amnshu Khanal
Everest College
Exam Roll no: 9244/11
TU registration no: 7-2-355-0004-2011
Thapathali, Kathmandu
August, 2015
1

ACKNOWLEDGEMENTS
It is an immense satisfaction to prepare this internship report, which is an impartial
requirement for Bachelors in Business Administration (BBA). As a BBA student of
Everest College, I have selected Everest Bank Ltd one of leading commercial bank of
Nepal for the completion of my internship.
I am thankful to our Program director Dr. Jitendra Upadhyay, for providing me valuable
ideas, opinions and knowledge to make my report more informational and on the format.
Besides this, I am very grateful to all the faculty members of BBA Everest College and
my friends for their help and support.
Further, I would like to express my gratitude to Mr. Ram Hari Acharya, Branch manager
of Everest Bank, Satungal for giving me chance to serve in his institution and for his
regular personal supervision throughout my internship period. I am also pleased towards
Mr. Amit Phuyal, Mrs. Anjana Shrestha, Mr. Manish Singh, Mr. Prakash Regmi,
Mr. Rajesh Adhikari and entire staffs of Everest Bank for their cooperation and kind
support. I feel lucky to get their time despite of busy schedule and to learn from each of
them. Their response and serious consideration has helped me to get knowledge about
banking sector. I am grateful to all of them.
Lastly, I would like to express heartfelt thankfulness to my family for providing me
support and motivation.

Amnshu Khanal
Everest College

Table of Contents
Approval Sheet
Recommendation Letter
Acknowledgement

List of Tables
Abbreviations
CHAPTER ONE
INTRODUCTION

1.1 Background of the study

1.2 Objectives of the study

1.3 Methodology of the study

1.4 Activities Performed in the Organization

CHAPTER TWO
INTRODUCTION TO THE BANKING INDUSTRY

2.1 Concept of Bank

2.2 History of Banking

CHAPTER THREE
INTRODUCTION TO THE ORGANIZATION

3.1 An Overview of Everest Bank Limited

3.2 Achievements

CHAPTER FOUR
ANALYSIS OF ACTIVITIES PERFORMED AND PROBLEM SOLVED 17
4.1 Background

15

4.2 Activities Performed Under Various Departments

15

4.4 Problems Solved

25

CHAPTER FIVE
CONCLUSION AND LESSON LEARNT

26

5.1Conclusion

26

5.2 Lesson Learnt

27

5.3 Observed Gap

29

LIST OF TABLES
List of Tables

Pages

Table No. 1.1: Representing no of weeks and activities performed

Table No. 2.2: Categories of banks in Nepal

Table No. 3.1: Share Ownership Capital of EBL

12

Table No. 3.2: Board of Directors of EBL

13

Table No. 3.3: Management Team of EBL

13

Table No. 3.4: Interest Rates on Deposit Accounts

14

ABBREVIATIONS
ABBS :

Any Branch Banking Service

AC

Account Checklist

ATM :

Automated Teller Machine

CSD

Customer Service Department

D/D

Demand Draft

EBL

Everest Bank Limited

KYC :

Know Your Customer

L/C

Letter of Credit

NRB :

Nepal Rastra Bank

PIN

Personal Identification Number

PNB

Punjab National Bank

SCT

Smart Choice Technology

SWIFT:

Society for Worldwide Interbank Fund Transfer

TU

Tribhuvan University

CHAPTER ONE
INTRODUCTION
1.1 Background of the study
Customer service is the process of ensuring customer satisfaction with a product or
service. Customer service is an extremely important part of maintaining ongoing client
relationships that are key to continuing revenue. Customer service department (CSD ) is
the first place a customer approaches after entering a bank. It is the place where
customers can place any queries related to the bank, place their problems related to
banks services and from where they can collect information about upcoming programs
and new schemes. It handles the concerns of customers. CSD should function effectively
in satisfying its customers as it is the first place where the customers come to seek for
help. This department performs regular and clerical nature of jobs and is the busiest
department in the bank. It deals with various activities like opening and closing of
accounts, issuing cheque books, providing bank statement, balance certificate, offering
initial customer counseling, etc.
Clearing is a process by which a banker exchanges cheques drawn against another bank
and deposited at their bank for collection or clearance from their customer at the clearing
house. Customers deposit cheque, drafts in their accounts, which are drawn on various
banks and bank serves their customers by helping them collect the fund in their account
through clearing function. As being the member of NRB, EBL accepts the cheque of
different banks. Until the cheques are handled to the respective bank, the payment is not
made to the customer. The respective of the bank visits the NRB daily to attend the
meeting of different bank to deal and adjust the transaction that has taken place.
Credit is an contractual agreement in which a borrower receives something of value now
and agrees to repay lender at some date in future, generally with interest. This term also
refers to the borrowing capacity of individual or company. Credit department provides

service to their customers analyzing new credit proposal and reviewing existing loan a\c
taking recovery action whenever necessary. EBL is providing different facilities
according to the need of the customers. It is responsible for approval and disbursement of
loans and advances. The activities of this department include managing the financial
books of the bank, checking all entries of the book according to standards, preparing
daily reports, revenue appropriations and calculations, etc. As loan is an asset to any
financial institutions, it is very necessary to ensure that it does not become bad. The first
step in ensuring that is to ask for proper documentation of the loan applicant.

1.2 Objectives of the study


The objectives of the study are summarized as follows:

To study about banking activities of Everest Bank Limited

To analyze the practical implication of the theoretical aspects learnt during the BBA
program

1.3 Methodology of the study


Completion of internship is a combination of the different types of activities. It starts
from the selection of the organization for the internship, placement at various
departments, duration of internship and performance of different kinds of activities.

1.3.1 Selection of the Organization


The most important and the initial part in the internship program is the selection of the
organization. It is the basis from which interns get the platform to learn something and
analyze the practical implication of the theoretical aspects learnt in the academic session.
There are a number of commercial banks. Intern selected Everest Bank as one of the
leading commercial bank of Nepal. Recommendation letter along with CV and other
required documents of the student was dropped in Human Resource Department of
Everest bank, Satungal. Positive response came from Everest bank and the intern finally
selected it for internship

1.3.3 Placement
Regarding placement, the internee was not placed in single department. The internee was
rotated in different departments according to the requirements. The specific departments
were Customer Service, Credit and Clearing Department at the EBL, Satungal branch.
The main reason of the rotation was to let the interns gain knowledge about the working
procedures and to let know the connections within the departments. The support and
cooperation the internee got in bank was instrumental.

1.3.4 Duration of Internship


The duration of internship period defined by Tribhuvan University is eight weeks. So, the
intern conducted the internship for two months, which started from 17th May, 2015 and
lasted till 17th July, 2015. During this period, the intern was allowed to work for various
periods in customer service, credit and clearance departments which helped her to
develop her knowledge regarding the functions and procedures of these departments.

Table No: 1.1 Representing number of weeks and activities


performed
Departments

1st

2nd

3rd

4rth

5th

6th

7th

8th

Customer Service

***

***

***

***

***

***

***

***

Department
Credit Department

***

***

***

***

***

***

***

Clearance Department

1.4 Activities Performed in the Organization


The summarized activities done in various departments are as follows:

a) Customer Service Department


Customer service department is the most important department of any bank. It deals with
various services offered by the bank and numbers of customers make face-to-face
interaction with staff of bank. The activities performed in this department are:

Account opening of the customers

Issuance of Debit card and cheque book

Account closing

Providing information about products to the customers

Assisting customers in filling withdrawal slips, forms ,deposit vouchers and cheques

Issuing of balance statements and balance certificate

Dealing and handling customer grievances

Handling incoming calls

Distribution of various forms

Updated the different manual files

Making phone calls to customers for various purposes

b) Clearing Department
The activities performed in this department are:

Outward bills collection(OBC)

Making daily OBC entries and return cheques entries

Solving the queries of the customers

Identifying standard and non-standard cheques

Scanning cheques

Entering the details of the cheques into the system. This includes cheque number,
account number, account name, pay bank, pay branch and the amount.

c) Credit Department
The activities perform in this department are:

Providing the required forms under the credit department to the customer

Providing the necessary information about the loans

Observation of Draft preparation

Photocopy

Filling of different L/Cs according to respective L/C number

Posting of L/C transactions on a manual register

Filling bank guarantee and performance guarantee documents according to their


respective numbers

Printing and filling necessary documents

CHAPTER TWO
INTRODUCTION TO THE BANKING INDUSTRY
2.1 Concept of Bank
A bank is an organization, the major function of which is to deal in money and credit.
Bank's main objective is to pool the scattered idle deposit in the public and channel it to
productive use. It collects deposits and lends or invests to those who stand in need to
money. Bank in other words is a custodian of money received from the depositors.
Hence, its responsibility towards the general public is pretty different than those involved
in other types of trades and services. Modern day banks exhibit the trait more of a
department store with a wide range of financial products to offer. Modern day bank's
business is not confined in borrowing deposits and lending advances only, it performs a
host of other financial activities which has immensely contributed to achieve industrial
and commercial progress of every country.
Following are some of the definitions of bank:
Bank is a financial institution, which provides financial services that may be in the form
of accepting deposits, advancing loan, providing necessary technical advices, dealing
over foreign currencies, remitting funds, etc.
-Nepal Rastra Bank Act 2002 B.S.
A commercial bank refers to such type of banks which deals in money exchange,
accepting deposits, advance in bonds and other commercial transaction there than some
special functions performed by specified banks such as co-operatives, agriculture and
industrial banks.
-Commercial Bank Act 2031 B.S.

2.2 History of Banking


The concept of banking is not a modern concept. This concept had started to evolve in the
brilliant human mind immediately after the humans were able to realize and develop
money. Though money had made the human life much easier than before but ancient
humans started to realize the complexities that evolution of money had created in their
life. So, in order to overcome these complexities and the difficulties that were attached
with the benefit of money the concept of banking emerged in the human mind. Earlier the
moneylenders and the landlords perform the banking activities as the informal banks but
later the activities of these people are formalized and the concept of bank as an institution
had emerged.
The word bank was originated from Germany. Before 1960 there was no such word as
banking. However, in the temple of Babylon the practices of safeguarding and saving
flourished as early as about 2000 B.C. Chanakya in his Arthasastra wrote in about 300
B.S. mentioning about the existence of powerful guilds of merchants bankers received
deposits, advance loans and hundies(letter of transfer). The origin of the bank is linked to
Latin word Bancus, Italian word Banco and French word Banque meaning a bench
or money changers table, i.e. the bench in which the bankers would keep money and its
records. . The Jews of Lambardy were thought to be the early bankers who transacted
third business at the benches in the marketplace and when they were unable to meet their
liabilities, the depositors used to break their benches and this tradition had given birth to a
banking term Bankrupt. The first ancient Bank of the world is supposed to be the Bank
of Venice which was established in 1157 A.D. Following the footsteps of this bank, other
two banks were established in 1401 and 1407 named Bank of Barcelona and Bank of
Geneva, respectively. The crucial breakthrough in the modern banking history was made
in 1694 A.D when the first modern bank The Bank of England was established. After
the establishment of this first English Bank, Banking sector had experienced various ups
and downs but still they persisted and because of that persistence they are now able to
exist in this 21st century world as one of the essential element of human life.
Presently, banks are not only the deposits collecting and loan lending institutions but also
the institutions which helps its customers from various ways as per their convenience and

ability with full security. They had been developed as the essential service providing
institutions in this rushing world. Hence, banking had become an important element of
the world economy in the present time.
The categories of banks in the context of Nepal are shown in the table.

Table No. 2.2: Categories of banks in Nepal


Category
KA
KHA
GA

Component

Minimum

paid

Commercial Banks
Development Banks
Finance Companies

capital requirement
2 billion
100 to 640 million
100 to 340 million

up Number
30
75
48

Since the intern had completed the internship in one of the commercial bank of Nepal, the
analysis is specifically focused on the KA category depository institutions i.e. the
Commercial Bank.

CHAPTER THREE
INTRODUCTION TO THE ORGANIZATION
3.1 An Overview of Everest Bank Limited
Everest Bank Limited (EBL) was registered on November 17, 1992 and came into
operation on October 18, 1994 (1st Kartik 2051 B.S.) with an objective of extending
professionalized and efficient banking services to various segments of the society. It is a
limited liability company and its registered office is presently located at Lazimpat, Nepal.
The bank is listed with Nepal Stock Exchange Ltd. and provides full commercial banking
services. The bank is promoted and managed by a team of experienced bankers and
professionals.
Punjab National Bank (PNB), the joint venture partner of Everest Bank (holding 20%
equity in the bank) is the largest Public Sector Bank of India having 118 years of banking
history and is known for its strong systems and procedures and a distinct work culture.
With its presence virtually in all the important centers at India, Punjab National Bank
offers a wide variety of banking services which include corporate and personal banking,
industrial finance, agricultural finance, financing of trade and international banking.
Among the clients of the Bank are Indian conglomerates, medium and small industrial
units, exporters, non-resident Indians and multinational companies. The large presence
and vast resource base have helped the Bank to build strong links with trade and industry.
The bank is providing customer-friendly services through its Branch Network. All the
branches of the bank are connected through Anywhere Branch Banking System (ABBS),
which enables customers for operational transactions from any branches. EBL was one of
the first banks to introduce Any Branch Banking System (ABBS) in Nepal. EBL has
introduce Bank of Wheel system, whereby the bank is installed in vehicle and moves
around to different places to serve the segment deprived of proper banking facilities
through its Birtamod Branch. EBL is the only bank having representative office in foreign
soil. The office facilities remittance and Nepalese working in India can even open

accounts through the office. EBL has set up its representative offices at New Delhi (India)
to support Nepalese citizens remitting money and advising banking related services.
The vision and mission of EBL are as follows:

3.1.1 Vision

To position it as a progressive & customer friendly bank providing financial and other
related services.

To cater to various segments of society using advanced technology.

To be committed to excellence in corporate values.

3.1.2 Mission Statement

To provide excellent professional services & improve its position as a leader in the
field of financial related services.

To build & maintain a team of motivated and committed workforce with high work
ethos.

To use the latest technology aimed at customer satisfaction & act as an effective
catalyst for socio-economic developments.

3.2 Achievements
The achievements can further be divided into:

3.2.1 Awards

The bank has been conferred with the "Best Managed Commercial Bank" by ASIAN
PAINT NEWBIZ Award 2013.

The bank adjudged as "Number 1 Bank" under CAMELS (along with Customer Base
& Branch Network) rating conducted by KAROBAR national daily (a leading
business media house of Nepal).

The bank has been conferred with Bank of the Year 2006, Nepal 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.

3.2.2 Pioneering Achievements

EBL was one of the first banks to introduce Any Branch Banking System (ABBS) in
Nepal.

EBL introduced Mobile Vehicle Banking system to serve the segment deprived of
proper banking facilities through its Birtamod Branch, which was the first of its kind.

EBL introduced branchless banking system first time in Nepal to cover unbanked
sector of Nepalese society through biometric machine.

EBL is first bank that has launched e-ticketing system in Nepal where customers can
buy yeti airlines ticket through internet.

EBL introduced online payment of Mobile/PSTN/ADSL/NCELL bill or from the


counter as well.

EBL is the first bank to introduce agro-specialized branch "KRISHI UDHYAM


BIKASH SAKHA" at Rajbiraj.

EBL introduced Cash Deposit Kiosk for the first time in Nepal through which the
Customers can deposit Cash conveniently.3.3

Shareholding Structure of

Everest Bank Limited


3.3.1 Share Ownership
Detail of share ownership is as follows:

Table 3.1: Ownership Structure of Everest Bank Limited


Particulars

Share capital

A. Local ownership

80

1440.091,251

10.86

195,595,100

69.14

1244,496,151

20.00
100.00

361,147,800
1801,239,051

1.1 Nepal government


1.2 'A' class licensed
institutions
1.3 Other licensed
institutions
1.4 Other institutions
1.4 Individuals
1.5 Others

B. Foreign ownership
Total

Source: 20th annual report of Everest bank limited (2013/2014)

3.4 Board of Directors


EBL has eight members of Board of Directors (BOD). Companys Board Committee
supervises different banking affairs. BODs are the leading personalities having qualified
experience in the respective sector. The Board of Directors of EBL consists of eight
directors among them three from EBL, two from PNB, two from Public shareholders, and
there is one independent director and chairman respectively as:

Table No. 3.2: Board of Directors of EBL


Name
Mr. B.K. Shrestha
Mr. Ved K. Shrestha
Mr. Arun Man Sherchan
Dr. Bal Gopal Vaidya
Mr. PK Mohapatra
Mr. Nabin Bhakta Shrestha
Mr. Mr. Shivasharan K.C
Dr. Rakesh Gupta

Position
Chairman and Promoter Director
Promoter Director
Promoter Director
Promoter Director
Director (PNB, India)
Director from General Public
Director from General Public
Director (PNB, India)

3.5 Management Team


There are total of five members in the Management Team of EBL. A complete list of
Management Team members and their designation in EBL are given in the table below:

Table No. 3.3: Management Team of EBL


Name

Designation

Mr. AK Ahluwalia

Chief Executive Officer

Mr. AK Bansal

Deputy General Manager

Mr. Rajesh Gautam


Mr. Pramod Raj Sharma

Deputy General Manager


Company Secretary

3.6 Products and services of Everest bank limited


EBL offers a wide variety of products and services, catering to wide range of customers
from individuals, to mid-market local corporate to multinationals and large public sector
companies, as well as embassies, aid agencies, airlines, hotels and government
corporations. Everest Banks policy is to extend quality services to its customer as
properly as possible.

3.6.1 Deposit Schemes


EBL offers a wide array of deposits schemes in both local and foreign currencies to help
one earn competitive interest rates in order maximize higher return on investments.
a) Current Account
b) Saving Account

c) Fixed Deposit Account


d) Recurring Deposit Account
e) FYC Deposit Account
f) Retirement Plan Account
The following table shows the interest rates on various deposit schemes:
Interest Rates on Deposit Accounts
Effective from 5th August, 2015 (Shrawan 20, 2072)

Table No. 3.4: Interest Rates on Deposit Accounts


S.N.
A
B
1
2
3
C
1

DEPOSIT ACCOUNTS
Saving Deposit
FCY Deposit account
US Dollar Savings
Euro Savings
GBP Savings
Fixed Deposit Account
1 month to less than 3 months

REVISED RATES PER ANNUM


1.75% - 3.75%
0.75%
0.50%
0.50%
Individual
2%

Institution
2%

3 months to less than 6 months

2.50%

2.50%

6 months to less than 1 year

3.50%

3.0%

1 year to less than 10 years

4.50%

4.00%

3.6.2 Loan Schemes


The act of giving money, property or other material goods to another party in exchange
for future repayment of the principal amount along with interest or other finance charges
is called loan. A loan may be for a specific, one-time amount or can be available as openended credit up to a specified ceiling amount.
EBL provides various two types of loan to its customer which is as follows:

Retail Loan
Corporate Loan
Retail Loan
The retail loan is provided to an individual for their personal use rather than to the
institutions or to firm for business purposes. There are different types of retail loan
services provided to the customer by EBL are home loan, vehicle loan, education loan,
bike loan, flexi loan, future lease rental, professional loan, loam against life insurance
policy, share loan and tractor and water pump finance.
Corporate Loan
A corporate loan is that which is given to the company or to a firm for business purposes,
rather than to a government organization or to an individual person. There are various
types of retail loan provided by EBL which are capital finance, working project finance,
trade finance and consortium finance.
Besides these EBL offers remittance facility, debit card and e-banking facilities. It also
provides locker facility to customer to keep their valuables like golds, diamonds, etc safe.
It provides foreign exchange facilities and 365 days banking facilities through New Road
branch.

CHAPTER FOUR
ANALYSIS OF ACTIVITIES DONE AND
PROBLEMS SOLVED
4.1 Background
An intern has to perform many activities as a temporary staff. The intern was rotated
through various departments of the bank, which exposed the internee to the real world of
the bank and observed the real operations of the bank. During the internship period, the
intern had performed activities mainly in Customer service department and also in
Clearing and Credit department. At EBL, intern had an opportunity to learn various new
things through observation, experience, action and enquiry on continuous basis.
Therefore, this internship report in detail highlights the various activities performed by
intern in these respective departments.

4.2 Activities Performed Under Various Departments


4.2.1 Customer Service Department
The customer service department is the most important department of any bank. It is a
place where the customers first come and make enquiry about the services provided by
the bank. Customer service in banking is one of the most important ways to retain
customers. It includes responding to customers questions and complaints in a thorough
and timely manner and interacting with customers through face-to-face meetings,
telephone, mail, fax and e-mail. (Dansereau, 2011). The CSD of EBL responds to
customers curiosity regarding the financial services offered by the bank, listens the
complaints of the customers regarding the quality of the services and efficiently solve
their queries and complaints.

The activities performed in this department are:

1. Account opening of the customers


During the internship period interns were placed in customer service department where
they provided following informations:

Provided the information on minimum balance requirement and the interest rate in
various schemes

Helped them to fill form on request

Verified the attached documents

Prepared the voucher for deposits

As mentioned earlier EBL offers wide range of deposit schemes like personal saving
account and corporate account. Various documents are required for opening different
types of accounts depending upon the nature of the account to be opened. The following
shows the different documents required for opening different types of EBL deposit
accounts:

a) Personal Saving Account


A personal account is an account which is mainly targeted towards individuals for their
own perosnal use. The term personal is used to differentiate it from corporate account
which is solely used for business purpose. Usually, commercial banks differentiate
personal account from corporate accounts by setting minimum balance requirements,
lower fees etc. This account is used for complete non-business use.
The personal account includes EBL Saving Account, Saving Premium Account, Sunaulo
Bhavibsya Yojana, Naari Bachat Khata, Baal Bachat Khata and Saugat Bachat Khata,
USD Account.
Basic requirements for opening of Personal Account:

Citizenship Certificate or Passport

PP size photos

Documents as: Family citizenship, Electricity/Water bills of their house

Basic requirements for opening of Joint Account:

Documents certified from concerned Embassy

All documents required for personal account are needed for all joint parties

Special instruction must be provided to the bank in the application form in case of
any one signature among the joint account holders

ATM/Debit Card is not provided to joint account holders

Basic requirements for opening Baal Bachat Khata are:

A photocopy of a Birth Certificate of a minor (child)

PP size photos of the child

A photocopy of Citizenship Certificate of a guardian

PP size photo of the guardian

b) Current Account
It is an account on which any amount deposited can be withdrawn through a cheque. It is
also known as checking account. It consists of:

Proprietorship Account
A business firm registered in the name of a person/proprietor is known as Sole
Proprietorship Firm. The proprietor bears all the profit or loss of the business.
Requirements for opening proprietorship account:

Registration Certificate

Tax Certificate

Citizenship Certificated Proprietor

2 PP size photos

Partnership Account
A firm registered in the name of more than one individual is known as Partnership firm.
The profit and loss from the business operation is shared by the partners. Requirements
for opening partnership account:
Partnership Agreement deed
Firm Registration Certificate
Tax Certificate
Citizenship Certificate of Partners
2 PP size photos of partners

Limited Company Account


Limited Company Account can be maintained by both private and public limited
companies. Requirement for opening proprietorship account are:

Registration Certificate

Memorandum & Articles of Association

Name, Address of directors & Office Bearers of the Limited Company with copy
Citizenship Certificate

Name & Signatures of the Persons Authorized to Operate an account

Operation Commencement Certificate (for Public Ltd. Co.)

Resolution of Board of Directors regarding opening & conduct of an account

Tax Certificate

Club Society & Association Account


Various clubs, social institutions, etc can also open accounts by fulfilling the
requirements. Requirements for opening this account:

Registration Certificate

List of Office Bearers

Resolution Regarding Opening & Conduct of Account.

Name & Signature of the persons authorized to operate the account

2. Issuance of Debit card and cheque book


The customers can enjoy the facility of ATM. Accountholders can obtain ATM cards by
paying a charge of Rs.200. However, for the Student Account, ATM card is freely
provided. Through ATM card, customers can withdraw their cash without entering into
bank premises from any ATM terminal. When customer wants ATM card immediately,
instant card is provided. Customer can also request for the Embossed Card i.e. name
printed card. The request will be sent to ATM Cell of Baneshwor Branch by the CS staff
immediately. The request will then be forwarded to SCT by Baneshwor Branch. The
cards are then sent by SCT network to the Baneshwor Branch and then forwarded to other
respective branch. Customers can collect cards within 15-20 days. Before issuing the
card, information of issue has to be entered into the system then the information is
entered in the Instant Card Register. It contains details like Serial No, Card Number,
Account Number, Issue Date, Signature of the Accountholder and authorized signature.
The card then needs to be activated. The activation of card is done by Operation Incharge.
The card can be used after 48 hours of activation. One copy of ATM letter is kept by bank
and it is filed for future reference.
The new accountholder receives the cheque book immediately after opening account and
depositing amount in the cash counter. The cheque book contains minimum of ten cheque
leaves with acquisition slip. The customers can request the number of cheque leaves as
per their requirement. One cheque book contains maximum of 50 cheque leaves and if
they require more than that then multiple number of cheque books are prepared.
Apart from the new issuance of cheque books and ATM cards to the new clients, the old
clients were also issued with cheque books and ATM cards. The clients whose cheque
books were out of stock and who lost their cheque books were issued with new cheque
books. Similarly, the clients who unfortunately lost their ATM cards, damage of ATM
cards and so on were also issued with new ATM cards. In case of damaged ATM card
,customer has to return it before taking a new one. If cheque book is lost by the customer,
he has to fill the form of issuance of new cheque book and pay Rs Five hundred charge

for issuing new one. The cheque books and ATM cards were issued to the customers only
after verifying their signatures from the system.

3. Account closing
As per the request of the customer, account closing is also performed. For this account
closing form should be filled by customer who is examined by staff and forwarded for
verification.
Following functions are performed for closing the account:

Provided the account closing form

Known the reason for closing the account

Verified the signature

Ensured the unused cheques, used ATM card are returned back to bank

Finally handled the documents to the authorized personnel

4. Providing information about products to the customers


In CSD, intern provided general information related to various products and services
offered by the bank such as account schemes, account opening, new products, debit card,
internet banking, locker facility, ABBS facility, charges of using various facility, utility
bill payments, etc. Various queries of customers were responded by the intern. However,
the intern directed the customers towards CS staffs if they were in need of detail and
technical information.

5. Dealing and Handling Customer Grievances


The overall functioning of this department is concerned with dealing with the customer
and handling their grievances. People with different queries and problems come in the
bank. Many customers approached CSD to get the knowledge regarding EBLs products
like different types of account, use of ATM cards, operation of e-banking, SMS recharge
etc. The intern attended the confused and information seeking customers by clearly
explaning the different types of deposit schemes of EBL along with their respective
interest rates, documents required for opening different types of accounts, minimum

balance required and so on. Likewise, the intern also clearly explained the process of
using e-banking and SMS recharge method with the help of brochures.

6. Handling incoming calls


Intern had to attend the incoming calls of customer and deal with their enquiries and
requests. Similarly, calls were transferred to the respective departments according to the
demand of customers. Intern also handled phone calls of staffs within office and outside
the office and transferred calls to the respective department and staff according to the
need of the staffs.

7. Distribution of various forms


Different customers with different needs approach CSD whether the need is opening only
personal saving or the need is related to remittance. Before taking any facility of EBL,
the client must undergo through certain formalities by filling up the required forms like
account opening form for those customers who want to open any types of account,
account closing form for those customers who want to close their existing accounts, ATM
card form for those customers who want to get new ATM card or for lost ATM, e-banking
from and pay bill form for those customers who want avail these facilities, remittance
form, TT(Telegraphic Transfer) and DD(Demand Draft) form for money transfer, deposit
voucher for cash/cheque deposit etc. The intern identified the needs of the customers and
provided them with the appropriate forms and also assisted them in filling out the forms.
of using ATM cards.

8. Updated the different manual registers


The intern also updated the manual files regulary after opening account, issue of cheque
books, ATM cards(Instant card), Name card(SCT+VISA), Fixed Deposit Receipt and
receipt of couriers(documents from various banks and from head office).

9. Filling of various forms

The intern was required to file various forms including account opening form, form for
ATM card, form for SMS, mobile and internet banking, form for term deposit,etc. Forms
were filled in respective files. Account opening forms were classified as saving account,
salary account , fixed deposit account ,narri baccat khata, bal baccat khata ,current
account (corporate and individual). Similarly, ATM card forms were classified as SCT
and VISA. Classified documents were filled into respective files.

10. Making phone calls to customers for various purposes


The intern was required to make phone calls to customers which includes:

To aware customers about their new cheques, new ATM cards, new pins of ATM
cards, e-banking passwords, etc.

4.2.2 Clearing Department


Clearing is a process by which a banker exchanges cheques drawn against another bank
and deposited at their bank for collection or clearance from their customer at the clearing
house. Customers deposit cheque, drafts in their accounts, which are drawn on various
banks and bank serves their customers by helping them collect the fund in their account
through clearing function. As being the member of NRB, EBL accepts the cheque of
different banks. Until the cheques are handled to the respective bank, the payment is not
made to the customer. The respective of the bank visits the NRB daily to attend the
meeting of different bank to deal and adjust the transaction that has taken place.
The activities perform on it are:

1. Outward bills collection(OBC)


Customer presents the clearing cheque and deposit voucher with the details of cheque
like account holders name, account number, date, amount in words and figure, name of
the bank on which cheque is drawn, cheque number and the signature. When such cheque
and voucher are received, the intern checked whether there was authorized signature and
stamp at the back side of the cheque. Then, the intern had to stamp (of EBL and Clearing
) in the counterfoil side of voucher including the signature of concerned staff that will be
returned to the customer and the other part of the voucher is kept for clearing stapled with
the cheque. Clearing cheques are collected up to 3 p.m. on weekdays and up to 1 p.m. on

Friday. Those cheques are then forwarded to the staff that makes entry in the system and
generates report. The cheques are then sorted on the basis of banks and attached together.
Those cheques along with the report are sent to Baneshwor Branch. The Baneshwor
Branch will send those cheques to NRB, the next day for clearing. The customer will
have his/her cheque cleared within one and half day.

2. Making daily OBC and return cheques entries


After 3.p.m on weekdays and after 1 p.m. on Friday, the intern had to make entry of the
OBC cheques in the OBC register. The information to be entered includes account
holders name, account number, cheque number, name of bank, amount of cheque,
currency and the date written. In OBC, cheques relating to NPR, INR, and other foreign
currencies are accepted.
The clearing cheque may be returned by NRB by sending a note containing the reason of
return.

3. Electronic Cheque Clearing


The intern was required to do electronic cheque clearing under the supervision of the
concerned staff. Firstly, intern identified standard and non-standard cheques and scanned
them using electronic scanner. Then details of the cheques including pay bank, pay
branch, amount, cheque number, cheque dates were entered into the system.

4.2.3 Credit Department


Credit department is to provide service to their customers analyzing new credit proposal
and reviewing existing loan a/c taking recovery action whenever necessary. EBL is
providing different facilities according to the need of the customers. It is responsible for
approval and disbursement of loans and advances.
The activities perform in this department are:

1. Providing the required forms under the credit department to the


customer

The various forms for the credit and loans tasks were provided by the intern to the
customers.

2. Providing the necessary information about the loans


The questions asked by the customers were dealt by the intern. They helped them by
providing information about the loans to the customers. For further dealings the
customers were to be forwarded to the head of the department or to the branch manager.

3. Observation of Draft preparation


The intern was not allowed to prepare drafts by themselves but they were allowed to
observe the procedures to prepare the draft and know about the draft in general.

4. Photocopy
Intern had to carry out the job of photocopying of important documents like citizenship
certificate, licenses, student ID card, other identification certificates and other documents
as per the requirement.

5. Filling documents
Intern was required to arrange various L/C documents and file them according to
respective L/C numbers. Intern also had to file different bank guarantee and performance
guarantee documents according to respective Bank guarantee (BG) and Performance
guarantee (PG) numbers.

6. Keeping record of L/C transactions in manual register


Intern was required to receive documents from various banks and head office. Record of
document from different banks were kept in a manual register. It included airway bill
number, L/C number, other bank reference number, our bank reference number and date
of presentation of the document. Documents included bill of exchange, commercial
invoice, packing list, certificate of origin ,custom transit declaration certificate(CTD)
form, insurance policy and airway bill or air consignment note.
L/C is a document or written instrument issued by the buyer's bank authorizing the seller
to draw a certain amount in accordance with certain terms and conditions stipulating in a

legal form that all such bills will be honored. In other words, a letter of credit is a
document from a bank guaranteeing that a seller will receive payment in full as long as
certain delivery conditions are met. In the event that the buyer is unable to make payment
on the purchase, the bank will cover the outstanding amount. For example, L/C document
is drawn between Sipradi trading and Tata motors India. For this purpose buyer should
have a L/C account in a bank. Parties involved in L/C transactions are: Opener,
Beneficiary, Opening bank and Closing bank. It can be of four types i.e. Confirmed L/C,
Revocable L/C, Irrevocable L/C and Transferable L/C.

4.4 Problems Solved


The problems solved by intern are as follows:

The intern clearly explained the customers about the different deposit schemes
provided by EBL and suggested the best one as per their needs and budget.

Helped the customers in filling out the entire form from the documents provided by
them to the bank.

Sorted out the problems of malfunctioning of e-banking and sms recharge by


providing step-wise instructions on the use of e-banking and sms recharge.

Intern assisted the staffs in filling. Rearrangement of files in the cabinet was made so
that files required could be easily located.

CHAPTER FIVE
CONCLUSION AND LESSON LEARNT
5.1 Conclusion
The bank are the institutions providing wide range of services for accepting and lending
money .They play vital role in channelizing the surplus amount from the depositor to the
deficit one. They are the major regulator of the economy of the country like Nepal which
is always helping people in upgrading their economic condition as well the economic
condition of the whole country. It provides the opportunities for the people as well as the
government to utilize the available funds that remain idle on them.
The Nepalese economy is filled with much of uncertainty and insecurity as due to the
political instability and the competition between the commercial banks that puts a big
question mark on the profitability of any business and banking organization. However in
such situation, EBL can be said to be playing a biggest role for the development of
economic sector through its services.
EBL is playing a pivotal role in facilitating services to and from across globe. Being the
first Nepalese bank to open a representative office in Delhi, India, the Nepalese in India
can open account in Nepal from designated branches of Punjab National Bank and remit
their saving economically through banking channels to Nepal.
EBL is one of the best banks for its service towards its clients since its establishment. So
this bank is awarded Bank of The Year-2006 for Nepal. This award is given by
international Bankers Association by valuation of service and works provided by this
bank. This bank is also fulfilling its social responsibility through building Public Parks,
and organizing Everest Game every year.
The whole internship period in EBL was a great experience where the time was spent
serving the customer in Customer Service, Credit and Clearing Department where intern
came up with new ideas and developed with skills to deal with the customers, so far to
cope with the real banking world situation. Working at EBL as an intern was a great
opportunity to develop conceptual and analytical knowledge about banking sector in
Nepal.

5.2 Lesson Learnt


Knowledge is nothing if cant be applied in practice. The 8 weeks internship periods have
become a great experience and a fruitful one where intern obtained insights into career
opportunities through interaction, observation and work experience in the organization. It
became a platform to be competent, confident and a skilled professional in the near
future. Working as an intern in different department of EBL at Satungal branch helped to
learn many things as:

To implement the things that has been studied throughout the whole life into practical
use.

To handle customer grievances and solve it out effectively.

The specific abilities like interpersonal skills, computer application skills, team work,
to be patience etc were enhanced during the internship period.

Learnt about the general banking transaction process and the entry procedures at
CSD.

Learned the process of account opening in the bank under different account schemes.

To maintain and handle the files, documents which might be helpful in the near
future.

Using different office equipments like fax, photocopy, cheque writer, printers and
scanner, etc.

5.3 Observed Gap


The theoretical knowledge we have gained while studying BBA for the last four years
was just a base to the practical life. The theoretical knowledge has helped me in many
ways to understand the actual working of the banking organization. Apart from the
theory, the internship program has totally given a different platform for us to prosper our
knowledge not just in using our mind in answering questions in exams but also to
formulate the operational activities of the bank. It is the bridge gap between the college
and the workplace.

BIBLIOGRAPHY
BOOKS
Shrestha, S.K (2011), Export Market Management in Nepal, Padma Educational
Enterprises, Kathmandu, Nepal
R.R Still, E.W. Cundiff and A.P. Govoni (1996), Sales Management, Prentice-Hall
of India, Private Limited

WEBSITES
www.nrb.org.np
www.everestbankltd.com
www.wikipedia.com
www.bankinginnepal.blogspot.com
www.imnepal.com

ANNUAL REPORTS
Everest Bank Limited, (2013/2014), 20th Annual Report

You might also like