Professional Documents
Culture Documents
Chapter-1 INTRODUCTION
1.1 BACKGROUND Education encompasses both the teaching and learning of knowledge, proper conduct, and technical competency. It thus focuses on the cultivation of skills, trades or professions, as well as mental, moral & aesthetic development. With the view to provide qualitative and proficient education in management, Tribhuvan University (TU) introduced Bachelor in Business Administration (BBA) in 2002 A.D. TU BBA, a four-year, one hundred and twenty credit hours, is a student-oriented program. BBA is a full time day program under Faculty of Management, TU with eight semesters. BBA aims at building self-confidence, self-discipline, and self-reliance of students by emphasizing on quality education, computer learning, social work and other curricular activities. The mission of BBA is to originate the competent professionals in the middle level managerial positions in the rapidly growing business sector. Further, BBA aims at students career building by obtaining hidden skills and sharpening students overall potentiality. Internship is the program that enables student to practically apply the theoretical knowledge in the field of business. Internship in BBA is conducted for the partial fulfillment of academic requirement of BBA eighth semester. Through internship program, students get acquainted with the outer world and learn to practically apply the subject matters gained from book knowledge. Internship helps one to recognize the real scenario of the organization by being the member of that same organization for a predetermined period. Furthermore, internship helps elicit the hidden capability of students and make them able to face the internal as well as external environment. Through the provision of the internship, interpersonal skills and communication skills are highly developed in students to sustain freely in todays world. Internship program builds self-confidence and self-reliance in students and assist in brightening the future of every student. Thus, the internship program is an integral part of BBA, which helps students in learning different skills and make them liable to confront the competitive business world.
1.2 OBJECTIVE OF THE STUDY Internship program is indispensable part of BBA program. It links student with the real world situation and offers opportunities to gain practical knowledge. The objective of this internship report is to present my experience on how Nabil Bank limited renders its services to its valued customers. Specifically, the objectives of this study are as follows: To interact with customers and answers their queries. To open or close customers account as per their requirements. To provide customers with debit card or ATM card after all the requirements are fulfilled. To obtain the knowledge about types of deposits maintained by banks. To provide the customers with the bank statement of their account as per their requirements. To supply customers the balance certificate form as per their need. To make available vouchers and forms to the customers.
1.3 METHODOLOGY
1.3.2 PLACEMENT
Throughout my internship period I was placed at Customer Service Department itself. Since Nabil Bank at Kantipath is one of the largest branches; I got overall knowledge in Customer Service Department alone. I was placed at counseling desk, account opening desk, statement print out, account closing desk and finally at check and debit card requisition desk.
1.3.3 DURATION
As per the requirement of BBA, affiliated to TU, the minimum period of internship assigned is of eight weeks. But I got opportunity to be part of Nabil Bank for ten weeks. I was appointed on June 5, 2008 as an intern and my internship ended on August 15, 2008.
4 1.4 LIMITATIONS
1. The period of eight weeks was very limited in order to gain sufficient knowledge about banking sectors. 2. The other major limitation of my study was I only got chance to get specialized knowledge i.e. only on CSD. 3. The banks policy in keeping some matters confidential prevented from analyzing the various critical facts and issues. 4. This report is mainly based on of the practical knowledge gained during the intern period and theoretical knowledge that has been previously studied.
1.5 OPPORTUNITIES
I got opportunities, which every intern doesnt get, by working in Nabil especially in Kantipath Branch. The opportunities that I got are as follows: 1. To work in such a friendly and cooperative environment at CSD. 2. To be a part of picnic organized by Kantipath branch in celebration of 25th Anniversary of Nabil Bank. 3. To participate in function organized by the staffs getting additional benefits.
1. The Merchants: 2. The Goldsmiths 3. The Money Lenders Despite strong criticism from the church regarding charging interest, modern banking sowed its seed in the medieval Italy. Bank of Venice, set up in 1157 in Venice, Italy is regarded as first modern bank. Subsequently, Bank of Barcelona (1401) and Bank of Genoa (1407) were established. These modern banks gradually replaced goldsmiths and moneylenders. Though Bank of England was established in 1694, the growth of banks accelerated only after the introduction of Banking Act- 1833 in United Kingdom as it allowed opening Joint Stock Company. Nowadays banks are getting so popular that the large number of financial transaction are performed daily such as accepting deposits, providing loans, providing securities, remittance facilities, taking guarantees, formulating capital, making regional balance, etc. In short, bank is an institution that deals with money and credits. It accepts deposits from the general public and advances it to those who really do need it. So, bank is financial institution established to serve the people in financial and other technical sector. Bank came into existence mainly with the objectives of collecting the idle funds, mobilizing them into productive sector and causing an overall economic development. It is intermediary between the deficits and surplus of financial resources. Hence, bank is a financial institution whose major task is to collect unused money of general public, investing it to the profitable sector from which bank can earn interest and make available the money for the depositors who wants to withdraw it. The bankers have the responsibility of safeguarding the interest of the depositors, the shareholders and the society they are serving.
7 purpose, customers demands and choices, and overall economic development of nation. Broadly, the banks can be classified into following types: 1. Central Bank: A central bank is established in every country with complete ownership of government. Its main objective is to issue currencies, look after the overall performance of other banks and financial institutions and aid government in formulating various policies. It does not focus on profit generation. This bank makes the monetary management of the country and implements the monetary policy of government. This bank is also called the Bank of Bankers. All the income and expenses of the government is carried out through this bank. This bank also provides loans as well as advices to government in formulation of economic policies. Nepal Rastra Bank is the central bank of Nepal, which was established in 2013 B.S. 2. Commercial Bank: The commercial bank is the oldest type of bank. The main objective of the commercial bank is to earn profit. Initially, this bank came into existence in order to provide the short-term loans to traders. The modern commercial bank collects deposits in current, saving and fixed accounts from general public as well as from the institutions. It then, distributes these collected deposits in the form of loans to agriculture, industry and service sectors as well as to the individuals. Although this bank concentrates itself in short-term loans, it also provides the medium and long-term loans to some extent. Nepal Bank Limited is the first commercial bank of Nepal, which was established in 1994 B.S. There are 25 commercial banks currently operating in Nepal. 3. Industrial Bank: The bank established for the development and gradual improvement of industrial sector of the country is known as the Industrial Bank. This bank provides long-term loans and industrial consultancy for the establishment, development and modernization of industries. It also purchases, sells and underwrites the shares and debentures of industries. It encourages industrial investment by providing information on industrial feasibility and by helping to raise loans from the market. Nepal Industrial Development Corporation (2016 B.S) is the oldest industrial bank of Nepal. 4. Agricultural Development Bank:
8 The bank established for the development and modernization of agricultural sector is known as Agricultural Bank. It makes available the short-term loans for the payment of wages and to buy manure, seeds and small implements necessary for agriculture and also the long term loans to purchase land, machinery and expensive equipments necessary for cultivation. It also provides knowledge and counseling to the farmers regarding the modern agricultural management techniques and technologies. The other types of Agriculture Bank are Mortgage bank and Co-operative Banks. In Nepal, the Agricultural Bank was established in 2024 B.S. 5. Rural Development Bank: The landless farmers and the very poor people in the rural areas cannot receive institutional loans due to the need of collateral. Hence, the Rural Development Bank is established to provide banking services to the rural areas. The poor people of rural areas deposit their savings in this bank both individually as well as collectively. They receive collective loan without collateral and the personal loan on the basis of personal collateral. In Nepal, Rural Development Bank was established in 2044 B.S. in Eastern and Far-Western development regions. 6. Saving Bank: The Saving Bank is established to collect the scattered savings of low-income people. On one hand, it increases the capital formation by mobilizing small savings and on the other hand, it encourages savings among low-income people. In reality, it is not a bank at all. The customer, who deposits money in the bank, can withdraw only a definite amount each week. In Nepal, there are more than 121 Postal Savings Banks in operation. It is to be noted that it is not a separate bank but the district branches of postal services department undertake this functions. 7. Exchange Banks: The bank established to deal with foreign currency is called Exchange Bank. Its objective is to help in international trade. This bank provides loans for foreign trade and helps in the settlement of debt between different countries. This bank provides loan to importers on discounting bills and remits the money of the importers to their parties. This task is undertaken either through its own branch in foreign countries or through correspondent banks. There is no separate Exchange Bank in Nepal. The foreign
9 exchange is controlled by Nepal Rastra Bank. With the permission of Nepal Rastra Bank, commercial bank also does foreign exchange transaction.
10 faced financial problems making it impossible to Carter to the credit and service need of the general population through out the country. After that again, for a long time, several unorganized bankers and indigenous moneylenders continued to flourish as the sole provider of the credit and service to the general public. At the same time, the government started trade with India and Tibet. The various indigenous bankers handled even the trade, because transfer of money could be safely made only through these bankers in the absence of modern banking institutions. Hence, the need of banking institution was realized. This was even strongly supported by the situation caused during 1934 earthquake where there was a need of finance for the reconstruction of works. Reviewing these situations, the Udhyog Parishad (Industrial Development Board) was constituted in 1936 A.D. One year from its formulation, it formulated the Company Act and Nepal Bank Act. In 1934 A.D. Nepal Bank Ltd was established as the first commercial bank of Nepal along with the Imperial Bank of India under Nepal Bank Act 1937. Rastriya Banijya Bank (RBB), the second commercial bank was established in the year 1965. RBB being the largest commercial bank plays a major role in the economy till date. The financial shapes of the two old banks have a tremendous impact on the economy. This is reason why these banks still exists in spite of their bad position. Thus, we can say that modern banking practice began only before the Second World War with the establishment of the first banking institute, Nepal Bank Limited, which was established as a joint venture of government and private sectors. Earlier banks were different from modern commercial banks in many aspects. The banks, which operated in the past, combined central banking functions such as an issue of currency, with commercial banking operations like accepting deposits and financing business. In course of time this practice was abandon and specialized institutions for the central banking functions were created. Now, a central bank can be easily distinguished from a commercial bank sue to their objectives and unique functions.
11 On the long run Commercial Bank Act was felt, accordingly it was established in 1974 A.D. According to section 2(a) of commercial banks are the hearts of the economic system. They hold the deposits of million of persons, government and business units. It exchanges money, accepts deposits, grants loans and operates commercial transactions. They make fund available through their lending and investing activities to borrowers, individuals, business firms and government. Thus, their task is to provide a collecting point for saving or relatively small average amount from large numbers of individual sources and invite them into a productive and needed sector of the country. In developing country like Nepal, there is always lack of financial resources not properly mobilized and are not fully utilized for the productive purpose, in this course the commercial banks are financial institute rather than banking institute. In modern times, commercial banks, which are facilitated, regulated and supervised by Central bank, confined them and concentrated in their activities of fulfilling the financial needs of their customers. With the opening of Nabil bank in 1985 the door of opening commercial banks was opened to the private sector. Then whole lot of commercial banks was opened in Nepal. Today all the banks expect Nepal Bank Limited and RBB are making profit. The inefficiency of these two banks has led to the success of private banks. As, the commercial banks grew hey stopped entertaining small projects. Thus, a scope for opening finance companies emerged. In 2042 B.S., Finance Company Act was passed but private sector kept stony silence till 2049 B.S. The first break came in the month of Shrawan of that year, when first company Nepal Housing and Development Finance Company came. The second came in the month of Poush of same year as Nepal Finance and Saving Company. The financial liberalization took place in Nepal in mid 1980s. The reform measures included deregulation in interest rate determination, portfolio management, market-based tenders for government securities sales, non-subsidized credit etc. the market would determine the cost of funds and the rate of lending. Banks must innovate to remain in the forefront. Better use of fund, easily availability of funds to the entrepreneurs, better returns to depositors, professional approach towards customer satisfaction.
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For any sector to function smoothly a well-defined law governing the organization in that sector should be there. Nepal has got acts guiding the different institutions falling in the financial sector. But there are many flaws in these laws giving opportunity for manipulation. No matter what name we give to banks, like Business banks, Retail banks, Clearing banks, Joint Venture banks, Merchant banks etc. they all perform same basic function. Like other organization, the main objective of the banking industry is the profit maximization and wealth maximization.
13 in the last year. On an average 10.98 percent annual growth rate was observed during the 2001 to 2007 period. During the first six months of 2007/08, the current, saving and fixed deposit were accelerated by higher rate of 13.0 percent, 10.24 percent and 6.63 percent compared to the respective percentage of 6.30, 6.59 and 6.55 in the same period of the last year. Of the components of total deposit, saving deposit constituted the highest share of 51.35 percent followed by fixed deposit 24.80 percent, current deposit 13.57 percent and call deposit 9.34 percent in the first six months of current fiscal year. In the last year the respective share of saving, fixed, current and call deposit were 51.77 percent, 13.34 percent and 7.99 percent. The borrowing constituted 3.09 percent of total liabilities in mid Jan 2008. It was 2.60 percent in the last year. During the first six months of 2007/08 the borrowing increased by higher rate of 35.03 percent over 10.26 percent in the same period of last year. By the end of mid Jan 2008 it reached to Rs. 17,216.6 million from Rs. 12,750.4 million in mid July 2007. As against the continued negative figure of capital fund of commercial banks, the remarkable achievement has been observed in the first six months of current fiscal year and turned to positive of Rs. 3,826.7 million. It was negative of Rs. 4149.5 million in mid July 2007. Loans and advances, the major components of uses of fund constituted the 48.86 percent in mid Jan 2008. Similarly, investment and liquid funds, another component of assets, registered the 18.10 percent and 8.12 percent in the same period. In the mid July 2007 the respective share of loan and advances, investment and liquid funds were 46.66 percent, 19.06 percent and 8.98 percent. During the first six months of current fiscal year, the loans and advances increased by slower rate of 17.51 percent compare to 21.35 percent in the last year. By the end of mid Jan 2008 the total outstanding amount of loans and advances of commercial bank reached to Rs. 272,364.0 million. It was Rs. 213,142.4 million in mid Jan 2007. The aggregate investment in the first six months of 2007/08 increased by higher rate of 7.84 percent compared to 1.13 percent in the same period of last year. At the end of mid Jan 2008, it reached to Rs. 100,860.5 million. It was Rs. 93,530.8 million in mid July 2007.
14 Liquid fund increased by 2.65 percent and reached to Rs. 45,258.1 million in mid Jan 2008 from Rs. 44,089.7 million in mid July 2007. The sector wise loans and advances of the commercial banks in the first six months of current fiscal year 2007/08 reached to Rs. 272,284.3 million. Out of these, the production sector constituted the higher share of 26.79 percent followed by wholesale & retailers 18.63 percent, construction 9.33 percent, service industries 7.66 percent, service industries 7.66 percent, finance, insurance and fixed assets 6.80 percent, agriculture 5.09 percent, transportation, communication & public services 5.35 percent and consumable loan 3.13 percent. In mid Jan 2008, the credit/deposit ratio of the commercial banks expanded by 3.95 point to 72.26 percent from 68.67 percent in mid July 2007. Higher growth rate of private sector credit compared to deposit collection contributed to increase in this ratio. In the first six months of current fiscal year, net profit of the commercial banks increased by 24.43 percent compared to same period of the last year. These banks earned 4,225.6 million during this period. In the last year it was 3,395.9 million. The proportion of non-performing loan to total gross loan of commercial banks declined by 5.14 point and remained to 8.94 percent in mid Jan 2008 over 14.08 percent in mid July 2007. At the end of mid Jan 2008, the total amount of NPL of commercial banks slightly inched up to Rs. 24,360.0 million compared to Rs. 24,215.85 million in mid July 2007.
15
16
10%
9.67%
0.33% 30%
N.B. INTERNATIONAL BANK, IRELAND NIDC RASTRIYA BEEMA SANSTHA NEPAL STOCK EXCHANGE
50%
GENERAL PUBLIC
Fig 3.1: Ownership Structure of Nabil INTERPRETATION: Nabil is 50% owned by N.B. International Limited, Ireland, 20% by local financial institutions and 30% by the Nepalese public.
Particulars 1. Share Capital 1.1 Authorized Share Capital (5,000,000 Ordinary Shares of Rs.100 Each) 1.2 Issued Capital (4,916,544 Ordinary Shares of Rs.100 Each)
1.3 Paid Up Capital 491,654,400 (4,916,544 Ordinary Shares of Rs.100 Each) Table 3.2: Capital Structure of Nabil INTERPRETATION:
Nabil Bank has maintained an authorized capital of Rs.500,000,000. It has issued 4,916,544 ordinary shares of Rs.100 each maintaining an issued capital of Rs.491,654,400. Similarly, the paid up capital of this bank is also Rs.491,654,400.
17
18 a) Trade Finance: Under trade finance following services and products are available. Import LC Export LC Forward Contract Bid Bond Performance Bond Counter Guarantee Advance Payment Guarantee Shipping Indemnity
b) Loans Business Bank of Nabil provides the following type of loans: Working Capital Fixed Capital Import Bills Discounting facility Under Suppliers Credit Export Loan Hire Purchase Project Finance Consortium / Syndication Loan Mortgage Loan
2. PRIVILEGE BANKING Privilege Banking at Nabil is for privileged customers or high valued customers. Privilege bank consists of separate cash counters for the customers so that they need not to queue in the counters. Every type of services is provided to the esteemed clients. Nabil Bank offers different privileges in the forms of personalized banking, discounts and lucky draw for high-value accounts. 3. PERSONAL LENDING Nabil Bank, at personal lending unit located at Lalitpur Branch, are committed to provide the customers with top-notch services when it comes to customers personal financial needs. Whether they need to buy their dream house or their fast car, need to mortgage their house for money for any reason or need funds for household items, customers are more than welcome at Nabil. Personal lending at Nabil includes following services: a) Housing Finance Housing finance is committed to provide finance for purchase or construction of land and house so that the customers have a shelter of their dream.
19 S.
1 2 3 4 5
Products
Land purchase Land & Building Purchase Construction Renovation/ Extension Refinancing (loan take over)
Loan Amount
5 lakhs to 80 lakhs 5 lakhs to 80 lakhs 5 lakhs to 80 lakhs 3 lakhs to 15 lakhs 5 lakhs to 80 lakhs
Loan Tenor
Up to 20 years Up to 20 years Up to 20 years Up to 20 years Up to 20 years
Financial Ratio
70% of distress value of property 70% of distress value of property 70% of construction cost 70% of renovation cost 70% of distress value of property
Table 3.3: Features of Housing Finance Other Features: Collateral for all above products required At least 8 feet wide, motor able access to the land Land to be free of guthi or mohi Land to be far from high tension line Third Party Collateral - not acceptable
Prepayment & Service Charges 2% of amount prepaid before 1 year 1% of amount prepaid after 1 year Partial payment allowed after 1 year only Service Charge: 1% of loan amount up front
Loan Documentation Fee NPR 1,500 up to NPR 1 million loan NPR 3,000 up to NPR 10 million loan NPR 5,000 above NPR 10 million loan
b) Auto Finance Auto finance is committed to provide finance for purchase of vehicles - be it for personal or commercial purpose.
20
S.
1 2 3 4
Products
Private Commercial Used Refinancing
Loan Amount
3 lakhs to 60 lakhs 3 lakhs to 60 lakhs 3 lakhs to 20 lakhs 3 lakhs to 25 lakhs
Loan Tenor
Up to 5 years to 7 years Up to 4 years Maximum 4 years Age of the vehicle should not exceed maximum 7 years at the time of loan maturity
Table 3.4: Features of Auto Finance Other features: Processing fee: 1% of the loan amount payable upfront. Prepayment: Allowed after 1 year only with prepayment fee (1% of the amount prepaid).
c) Nabil Property With Nabil Property, customer can mortgage their property and borrow from the bank to use the funds for any purpose. The following are the features of Nabil Property. Loan Amount
5 lakhs to 50 lakhs
Loan Tenor
Up to 10 years
Financial Ratio
70% of distress value of property
Age Criteria
25 to 65 years at loan maturity
Table 3.5: Features of Nabil Property Other features: Collateral required At least 8 feet wide, motor able access to the land Land to be free of guthi or mohi Land to be far from high tension line Third Party Collateral-not acceptable
Eligibility: Any individual having steady regular income source are eligible. Loan documentation fee: NPR 1,500 up to NPR 1 million loan
21 NPR 3,000 up to NPR 10 million loan NPR 5,000 above NPR 10 million loan
Prepayment fee: 2% of amount prepaid before 1 year. 1% of amount prepaid after 1 year. Partial payment allowed only after 1 year. Service charge: 1% of loan amount up front. Age criteria: Co-applicant must be 21 years at the time of application received and not older than 75 years at loan maturity. d) Personal Finance: With personal finance scheme, customers will be able to borrow money to purchase household items. The following are the features of personal finance scheme. Eligibility: Service holder having permanent service terms or contract basis at least covering the loan tenure and the employer should be in a position to provide an undertaking to transfer the fund to the Bank for EMI Loan Amount: 2 lakhs to 10 lakhs Loan Tenure: up to 3 years Purpose: For the purchase of household items Processing fee: 1% of the loan amount payable up front Prepayment Allowed: after 6 months 4. REMITTANCE The activities performed in remittance are as follows: a) SWIFT Transfer: Through the SWIFT transfer mechanism, we can transfer our fund to virtually anywhere in the world. Likewise we can receive the fund for our account with us from virtually any bank in the world. SWIFT stands for Society for Worldwide Inter-bank Financial Telecommunication System, which is a reliable communication network speeding up fund transfer and other financial messages. We do not need to have an account with Nabil Bank for fund transfers through SWIFT.
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b) Western Union: Through Western Union, we can receive the fund through thousands and thousands of agents located worldwide. It is the fastest and premium fund transfer system. We do not need to have an account with Nabil Bank. c) E-Remittance (Qatar, Doha): Any of the Nepali workers in Qatar can send the fund to their recipient / beneficiary through E-remittance. This product has been established in a tie-up with Doha Bank, Qatar to facilitate transfer of workers' funds into the country. d) Traveler's Check: We can purchase or sell traveler's checks at Nabil Bank. Instead of carrying cash, a lot of people prefer to carry traveler's checks for safety reason, while they travel. American Express Traveler's Checks are available for sale. e) Bank Draft: Nabil Bank can draw drafts on a number of its correspondent banks located all over the world. f) Mail Transfer: When there is no SWIFT transfer or draft arrangement, we may opt for mail transfer. As the name suggests, mail transfer is slow compared to other ways of fund transfer. g) Manager's Check: It is a check drawn by Nabil bank on itself, especially used for payments made by Nabil Bank. Beneficiary can send the check on collection or through clearing or can deposit it in his or her account with Nabil Bank itself. h) Anywhere Branch Banking: Nabil Bank uses state-of-art technology, software and hardware to provide the best services to its customers. All the branches are connected through VSAT link or Radio link, so that we can access our account from any of the branches located throughout the kingdom. All the branches of the bank serve us for deposit and withdrawal of cash, balance enquiry, statement, balance certificate etc.
23 5. CARDS AND ATMs Nabil Bank is the pioneer in introducing credit cards in Nepal. They are a principal member of Visa and MasterCard International since early 1990. Nabil Bank is proud to be the bank having the widest range of services in cards, which includes acquiring of all kinds of cards under Visa and MasterCard brands. They also acquire Diners Cards being a sole agent for the country and have arrangement of POS sharing with American Express Cards. Similarly, they issue the widest range of credit and debit cards under the brands of Visa and MasterCard to their account holders as well as non-account holders. Nabil Bank has the state of art technology in cards to provide online services. The different kinds of cards provided by Nabil are as follows: Credit Cards MasterCard Local MasterCard International VISA Local Diners Card Debit Cards VISA Electron/ATM Card NABILPREPAID/NABILKOOLCASH Card
6. E-BANKING E-Banking is the use of sophisticated technology in banking world. Nabil bank provides two services regarding e-banking which are mentioned below: NabilNet: Internet banking system (online banking) NabilTele: Telephone banking system
7. CLEAN BILLS Under this, the following services are available: Clearing of check Purchase of checks drawn on other banks.
8. OTHER SERVICES U.S. Visa Fee Safe Deposit Locker Balance Certificate Advance Payment of Certificate.
25 7. Western Union Money Transfer: Nabil has established a unique money remittance system with Western Union Financial Inc., USA where by money can be remitted from around 185,000 locations in more than 200 countries within few minutes. Nepalese wage earner abroad can send money to their nearest and dearest one in Nepal within very short time by using this service. 8. Automatic Teller Machine: Nabil has launched the ATM facility to its accountholder to enable fast withdrawal of funds. An accountholder need not to wait long hour for withdrawing money and sign check any more. A simple card with a unique PIN number known only to accountholder will suffice. Accountholder can withdraw up to Rs.35, 000 per day subject to the balance in the account. 9. Documentary Credits: Nabil bank handles both import and export documentary credits. Export documentary credits are carefully checked, authenticated and promptly advised. Confirmation wherever required is added at a competitive rate. Advising, negotiation and/or collection are handled by its professional staff to ensure protection of the beneficiaries. Worldwide correspondence relationship has enabled Nabil in establishing import L/C in any part of the world. Due to sound financials of Nabil, exporters normally do not ask confirmation on the Letters of Credit opened by it. Nevertheless, if confirmation is asked for on any L/C, Nabil Bank arranges the same from reputed international banks at a competitive rate. Nabil staff handle import LC in such a way that importers' interest is protected all the time subject to UCPDC. 10. Collections: Clean and Documentary collections both outward and inward are handled by Nabil Bank Limited. Acting as agent, Nabil handles the collection with the objective of protecting interest of its customers. Beside these services Nabil provide highly personalized service to its customers.
26
Excellent
services or products in a way that allows the customer to access them in the most efficient, fair, cost effective, and humanly satisfying and pleasurable manner possible. Here is the first point to remember: Customer service is a process, not a set of actions that might include greeting the customer, smiling, asking if you can help, etc. Customer service is about how your organization delivers its product or service. The part that sales people play in the customer service process is taking the customer through the process in order for him or her to receive the product they walked in the door to acquire. Furthermore, Customer service (also known as Client Service) is the provision of service to customers before, during and after a purchase. Customer service may be provided by a person (e.g., sales and service representative), or by automated means called self-service. Customer service is normally an integral part of a companys customer value proposition. The customer service process must be transparent. If an organization can practice full disclosure in an obvious way in their product information and their contracts, they are on the way to creating customer loyalty. If the customer experiences your organization as one where they were never surprised and never felt deceived, the organization will create a competitive edge in a world were there is precious little confidence in the customer service process.
27 possible through the efficient functioning of customer service department of any organization. It would then not be inappropriate to say that this department is the key to success of any organization. Therefore, the services delivered through CSD are as follows:
28 2. Normal Saving: The normal saving account is meant for the people interested to earn interest by maintaining the required balance with the bank. The bank charges Rs.250 every month if the minimum balance is not maintained. So this account is opened by the people having saving enough to maintain minimum balance. Minimum balance requirement is Rs.10000 and a 2% interest. Free e-banking services. Free check book.
3. Nabil Bachat: Nabil bachat is account opened by the individual interested to earn higher interest at higher minimum balance. The minimum balance required for opening this account is Rs.100000. Since the required balance is high, customers get additional facilities in this account such as free issuance of Visa electron debit card, free TC issuance, free good for payment and stop payment services, free any branch banking services, etc. the interest rate in this account varies with the amount deposited and the depicted interest rates are as follows: Interest for monthly balance of: Rs.100000-499999: 3% Rs.500000-999999: 3% Rs.1000000 and above: 4% Current Account: In current accounts, we may withdraw or deposit any amount of cash at least leaving the minimum balance of Rs.30000 from time to time. If the balance in current accounts falls below the minimum set by the bank, the bank will deduct a charge from the accounts. Individuals, profit-making business houses, international / national nongovernment organizations and others open current accounts. This account does not pay any interest to account holders. Call Account: Call deposit accounts are those accounts where we park high-volume short-term deposits. These accounts pay interest to account holders based on the rate negotiated
29 with the bank. Cheque books will be provided to the call account holders to withdraw cash. Provident Fund Account: This account is used for keeping provident funds of employees of corporate accounts. The bank pays interest in this account. Time/Fixed deposits: Time deposit accounts are meant for those individuals and corporate houses, which would like to earn interest on the fund not in use otherwise for a period of time. Time deposit accounts are opened for a fixed period of time ranging from 2 weeks to more than a year. These accounts pay interest to account holders at the rates agreed upon with customers at the time of opening time deposits. Furthermore, the interest rate and initial deposit will be fixed for the period as agreed with the bank. In case time deposit holders need fund from the time deposit account prior to its maturity, they can apply for a loan pledging the time deposit certificate on which the bank will have the lien. Another way of withdrawing money from a time deposit account prior to its maturity is to have it pre-maturely liquidated, in which case the time deposit holder will pay a charge to the bank or interest rate of the time deposit will be re-structured. Since interest is normally paid at fixed interval before maturity, the depositor is required to maintain another account, i.e. current or saving or call account. Retirement Fund: The Fund is an independent trust in accordance with the provision of Income Tax Act 2058 of Nepal, which is managed by a separate board and management team. Individual employee of corporate customer of Nabil Bank can open an account and deposit their retirement contribution with the NBLRF. Prior to this the corporate customers have to enter into an agreement with the Fund. The depositors is called beneficiary of the Fund.
30 opened. The knowledge about account opening is provided to the customers in following ways: 1. INDIVIDUAL ACCOUNT Any individual capable to enter into a contract can open accounts with the bank. Lunatics, insolvents, drunkards cannot enter into the contracts. Naturally, they cannot be the account holders. Illiterate person, blind, trustee can open accounts but special attention should be paid to such accounts. Likewise, bank open accounts in the name of minors but they have to be operated by guardians till minors turn into majors. There are various types of individual accounts such as: Personal NPR Account, Personal USD Account and can open account in all convertible currencies directed by NRB (For Nepalese and Foreign Citizen) Joint NPR Account and other currency account as of Personal Account (For Nepalese and Foreign Citizen) The basic requirements for opening Personal Account (Saving / Current) Fill in the application form Agree with the terms and conditions of the bank Sign the specimen cards Certified True Copy of Identification Document i.e. Citizenship or Passport One photograph of Account Holder Introduction by existing account holder Mandate form, No Objection Letter and Citizenship/Passport of Authorized Signatures if account is operated other than account holder In case of Foreign National: Certified true copy of Passport Documents should be certified from concerned Embassy Certified True copy of valid Visa
In case of Joint account (Saving / Current) Mandate form, No Objection Letter and Citizenship/Passport of Authorized Signatures if account is operated by other than account holder Citizenship/ Passport of all account holders Location Map Photograph(s) of Authorized Signatures
After ascertaining completion of above said documents, the concerned authority within CSD assigns an account number; bank accepts deposit in the deposit slip (voucher) and issues a checkbook and card to individual(s). In case of the illiterate, thumb impression is obtained in the specimen card. Moreover, s/he is required to furnish photograph as well. No checkbook is issued and the account holder is required to visit bank in person for withdrawal. Terms and conditions should be explained. 2. COMPANY ACCOUNT There are five types of corporate account and the additional documents required for each account other than Cover Letter, Citizenship / Passport of Authorized Signatures, Photograph(s) of Signatories and Location Map are as follows: 1. Proprietorship Account: A business firm registered in the name of a person/proprietor is known as sole proprietorship firm. The proprietor enjoys all the profit and bears all the loss from the operation of the business. Registration Certificate PAN Certificate Citizenship Certificate/Passport
2. Partnership Account:
32 A business firm registered in the name of more than one individual is known as a partnership firm. The proportion of the share of benefit and loss among the partners is mentioned in the partnership deed. Registration Certificate
3. Corporate Account (Private / Public Limited): Companies can be both private limited and public limited. They are called limited because their members are limited to the number of shares they hold in the company. Registration Certificate
Citizenship Certificate/Passport of Authorized Signatories PAN Certificate Memorandum and Articles of Association Board Resolution
4. Account of Institutions/Association/Societies: Various clubs, social institutions, NGOs, INGOs, projects, different bodies of governments also open accounts with the banks. Registration Certificate
Citizenship Certificate/Passport (of partners) PAN Certificate (if applicable) Constitution and By-Laws Citizenship/Passport of Authorized Signatories
5. Joint Venture Company: Registration Certificate of both companies (separate) MOA & AOA of both companies (separate) Joint PAN Certificate (Joint issued by NG with all the
33 Board Resolution of the partner companies authorizing opening and operation Board Resolution by the nominated members to open and operation of account OR Joint Board Resolution to open & operate JV account authorized by all The share holders (authorized) of all the companies Power of Attorney (Joint) to authorize the operators Identification documents & photos of the account operators Covering letter from JV Company to open account PAN certificates of all companies (separate) Photograph(s) of Authorized Signatures Location Map
Points to follow while opening Corporate account: Legal status of the account holder should be examined to Original documents should be checked and a certified copy Any blank space in the instruction and specimen card An account number is to be assigned. Deposit to be accepted in the deposit slip (voucher) and a open accounts. should be retained. column should be crossed.
copy to be returned to the account holder. For fixed deposit account, just an application form is to be filled out as the account holder must normally have any account maintained with bank. Bank issues a Fixed Deposit Receipt as a proof of having accepted fixed deposit.
34 Opening an account is a contract between the bank and the account holder while closing the account is termination of the contract. The account can be closed with mutual consent, with a notice by the account holder with or without assigning any reason, with prior notice by the bank with valid reason and at the instruction of legal authority. It is the duty of CSD to provide the account closing form as per the requirement of the customers. The bank can close the account of the customer in the following situations explained below: 1. At a request of the Customer: If the customer requests for the closure of the account, the bank closes the account after setting off any due to/from the customer. It is the normal practice to receive unused check leaves and cards and other facilities from the account holders. 2. At the initiative of bank: The bank can close the account with a prior notice to the account holder assigning valid reason. Bank blocks the operation in the account under following circumstances: In case of valid notice of lunacy or death of the account holder. In the event of insolvency/liquidation, the credit balance should be transferred to the official assignee. In case of receipt of assignment letter issued to the third party by the account holder. In case of the letter received from judicial authority or NRB
Fixed deposit account is automatically closed once the deposit matures. Interest is transferred to nominated accounts directly while principal is transferred on submission of original fixed deposit receipt. Points to ensure while closing the account: Account closure request has been signed by the authorized signatory (ies).
35 Any due to/from the customer has been set off. Cards (Credit, Debit, Smart, etc) and unused check leaves are received Reason for account closing is received. To the extent possible, authorized signatory(ies) should be asked to visit
the bank in person. Instead of closing the account, a customer can shift his/her account. Nabil Bank has a provision of shifting from one account to another account incase of saving account only. A customer can transfer his account to NabilLok Bachat from normal saving or Nabil Bachat. By shifting his/her account from Normal Saving to NabilLok Bachat, a customer can withdraw all his balance from his account and make it to zero since in NabilLok Bachat there is no requirement of minimum balance. The charge required for transference of account is Rs.500 same as account closing charge. But the choice is up to the customers.
36 Statement: We can view, download or print statement at our convenience. Access: We can access all our accounts under our ID for balance enquiry, fund transfer, statement, etc. Check Status: We can enquire/confirm which of the issued checks are paid by bank and which are not. E-mail: We can email to our relationship manager for banking services or follow-ups in a secure environment. 2. NabilTele: We can enquire about our balance through NabilTele (through telephone) and this facility is provided by CSD. All the enquiries regarding balance, deposits, accounts, etc are transferred to CSD.
37 Competitive interest, late fee and service charges No auto debit reversal fee No compulsion of maintaining account with Nabil Bank Flexibility of choosing convenient payment option Simplified assessment process Delivery of the card within 5 working days Validity of the card - 1 year Capability of same day card issuance in urgent cases
2. MasterCard International: Some of the features of MasterCard International are: Valid worldwide except in Nepal and India Can be used for purchases of merchandise / services or cash withdrawal Accepted in millions of POS terminal merchants and paper merchants Issued to USD account holders of Nabil Bank Competitive interest, late fee and service charges No auto debit reversal fee Payment of 100% of billed amount by due date Simplified assessment process Delivery of the card within 5 working days Validity of the card - 1 year Capability of same day card issuance in urgent cases
3. VISA Local: Its features are as follows: Valid in Nepal and India Can be used for purchases of merchandise / services or cash withdrawal Accepted in over 300,000 POS terminal merchants and paper merchants Accepted in over 5,000 ATMs Competitive interest, late fee and service charges No auto debit reversal fee No compulsion of maintaining account with Nabil Bank
38 Flexibility of choosing convenient payment option Simplified assessment process Delivery of the card within 5 working days Validity of the card 2 years Attractive scheme for reversal of card issuance fee
4. Diners Card for Travel(against the passport): Features are as follows: Valid worldwide except in Nepal and India Can be used for purchase of merchandise / services or cash withdrawal Accepted in millions of POS terminal merchants and paper merchants Easy to obtain being a pre-paid card Issued against the facility of passport by endorsing the air ticket and passport Simplified assessment process Delivery of the card within 2 working days Validity of the card - 1 year Capability of same day card issuance in urgent cases
Debit Cards: Debit Card is one of the highly acknowledged technologies in Nepal. In Nabil through CSD, we can get access to Debit Card by submitting the application form issued by the bank itself. We can get this card only if we have our account with the bank. The charge of Debit Card varies with the types of account opened. CSD is responsible for the issuance of Debit Card for the customers who are in need of the card. We can avail the card after three to four days of submission of form. We ought to bring our identification card in order to get the card. The pin code of the card comes along with the card and for the use of card we need to activate our card through card division and we can use the card as per our requirements. Debit card issued by Nabil bank is VISA Electron / ATM and the features of this card are as follows:
39 Valid in Nepal and India Can be used for purchases of merchandise / services or cash withdrawal Round the clock service Prompt service / No queue Accepted in over 100,000 POS terminal merchants Accepted in over 5,000 ATMs No interest, late fee or penalty No hassle of limit Secured transactions due to electronic environment Highly economical to obtain and use Added facility of balance inquiry and PIN change No service charge on use at Nabil ATMs and all POS terminals Can withdraw amount up to Rs.100000 a day Deduction of Rs.150 if money withdrawn from ATMs of other banks
Nabil Bank has the facility of ATMs within and outside the valley. There are five ATMs outside the valley and nine ATMs booth are available inside Kathmandu valley. The further information on ATMs can be gained through Annex NabilPrepaid Card / NabilKoolCash: NabilPrepaid/ NabilKoolCash is a prepaid card that can be availed by any person without having to open an account at Nabil. Nabil Prepaid is issued in international brand - Visa Electron as a numbered card and can be obtained instantly from any Nabil Bank. The Nabil Prepaid cards are valid in Nepal and India and can be used in more than 100,000 outlets with POS terminals and thousands of ATMs accepting Visa cards. The documents required for this card are duly filled up application form, photographs and citizenship / passport. Some additional features of this card are: Instant Issuance- Get into Nabil Branch and come out with a NABILPREPAID No need to maintain account nor credit risk analysis required Instant Recharge from any branch of Nabil Bank
40 Flexibility in Recharge amount to suit our requirement Image and status symbol No need to carry bulk cash Free from worry of cash being lost or stolen Simplicity and convenience in payment of goods and services Cash withdrawal facility Expenses tracking and monitoring
How Can We Get NABILPREPAID / NABILKOOLCASH Card? Visit any branch/counter of Nabil Bank Fill up and submit Nabil Prepaid/ Nabil Koolcash Card Application Deposit the amount we wish to load in the card Call Nabil Cards Division to activate the card Come out within 10 minutes with a ready to use Nabil Prepaid in hand Use at restaurants, hotels, department stores, clothing & foot-ware stores, travel agents and ATMs for cash withdrawal anywhere in Nepal & India Thus, we have access to all these cards from Nabil Bank. Nabil Bank has made the withdrawal of needed money at any time at any place much easier for us.
Benefits of Statement:
41 To help customer know about the use of fund in a chronological manner. To act as an evidence if any discrepancy occurs in the transaction. To assist customers in knowing different kind of charges charged by the bank.
Business / Transaction hours are as follow: Sunday to Thursday - 10:00 am to 3:00 pm Friday - 10:00 am to 1:00 pm
42 Nabil Bank provides any branch banking services where customers can conduct their business or make transaction from any of the branches of Nabil despite of where they have opened their account. There is no charge within the branches of Kathmandu valley but the bank takes certain amount of charge for the transaction outside valley. The ABBS charges are taken as per the amount of transaction. Customers can get access to the information about these charges through CSD. The ABBS charges are as follows: AMOUNT 0 - 50000 51000 - 300000 Above 300000 ABBS CHARGES Rs.100 Rs.150 0.05% of amount Table 4.1: ABBS Charges
Thus, the services provided by CSD are mentioned above. CSD is meant for customers. All the services provided under CSD are intended for the convenience of customers. CSD leaves everything apart in order satisfy their customers. Customers always come first for all the members of CSD at Nabil.
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5.2 Conclusion
Lastly, I have arrived to the conclusion that Nabil bank is outstanding in term of their services. Nabil Bank is one of the leading banks of Nepal and I had a great experience being a part of Nabil. CSD at Nabil is an integral part of bank because CSD is the department in which customers first get aware with. Nabil tries their level best to get their customers satisfied through CSD. It has lived upon to its motto Your Bank at Your Service by proving every service that a customer wants in every possible ways. Even though every aspect of Nabil regarding customer service is excellent, there is room for some improvements.
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1. Shrestha, Manohar K. and Dipak B. Bhandari (2007). Financial Markets & Institutions. Kathmandu: Asmita Publication. 2. Bhandari, Dilli R. (2003). Banking and Insurance. Kathmandu: Aayush Publication. 3. Dahal, Bhuvan and Sarita Dahal (2000). A Hand Book to Banking. Kathmandu: Asmita Publication. 4. Nepal Rastra Bank (NRB), Banking and Financial Statistics (No. 50). (Mid January 2008) 5. Websites: a. www.nabilbank.com b. www.nrb.org.np