CHAPTER I

INTRODUCTION
1.1. Background of the Study
Project study is an essential and mandatory part for graduation program in the discipline of
Bachelors of Business Administration (BBA). BBA is a four year program of management that is
aimed at producing a capable middle level manager, who is self motivated and capable to deliver
his/her knowledge at the workplace. The Internship in the final (8th) semester of the program gives
the way to practice what we have learnt. It enables students to apply their conceptual knowledge in
the practical situation and to learn the art of conducting study and presenting its findings in a
scientifically and systematic manner.
The report has been prepared in partial fulfillment of the requirement for the degree of Bachelors in
Business Administration (BBA) at Nepal Commerce Campus, one of the leading institutions of
Tribhuwan University. The present report has been prepared on the basis of experience obtained
throughout the internship period. Primary source of this report preparation is the observation and
personal experience in course of the involvement in the banking activities in the Maitidevi branch
of Citizens Bank International Limited (CBIL), as an intern.
The major part of this internship was spent in the Customer Service Department (CSD) of
Maitidevi branch and rest time in the other departments such as loan department. Customer service
is the front desk of any organization where the organization makes first contact with the client and
make sure the activities designed to satisfy the customers actually worked out or not. Loan
department, on the other hand, is the department that generates the revenue for the bank.

1.2 Objectives of the Study

The main objective of this internship program is to get a practical insight into the real-life activities
of the financial institutions such as banks and be prepared for the practical work experience in the
future by gaining practical knowledge and ideas about the banking operations from Nepalese
perspective. The main objectives are:

To make an analysis of the practical implementation of the theoretical knowledge gained

through the classroom study.

To be familiar with the various aspect of the banking firm and develop an understanding about
the actual activities of the banks.

To analyze the banking process of operations.

To enhance the communication, interpersonal and public relation skill through direct
interaction with the customer.

1.3 Limitations of the Study

It was a great opportunity to be an intern in the bank. The knowledge gained during the course of
internship was a rare feat. However the internship had some limitations. The main limitations of
internship are listed below:

Due to lack of time, study of each and every activities of the bank in depth was not possible.

Due to privacy policy maintained in an organization, unavailability of information created a

problem.

Interns were not allowed to use the system and entered the cash premises.

The prime source of information for report preparation was the informal questioning with the
CSD head and the observation of the activities as well as the active involvement in the
activities allowed to the interns.

1.4 Methodology of the Study

The report for the internship is based on the information and data gathered from the primary and
secondary sources as mentioned below. This report tries to present an analysis of the organization
(CBIL) along with the introduction of the banking industry, the bank itself and the activities
performed in the bank as an intern as well as the conclusions and recommendations to the bank.
The methodology is presented as follows:
1.4.1 Sources of Data
Primary Source of Data

Observation of working environment.

Direct interface with the walk-in customers.

Interaction with the staffs at different level of the bank.

2

Involvement in the activities in the bank within the limit of access allowed to the intern as
under the supervision of the supervisor.

Secondary Source

Annual General Report of CBIL.

Information and data from the website of the bank (www.ctznbank.com) and from the intranet
of the bank (Pumori Plus IV).

Publications and journals.

1.4.2 Organization Selection

Internship was completed from the Citizens Bank International Ltd (CBIL). It is an established
bank with the history of more than 5 successful years with a group of experienced, dynamic and
committed team. Maitidevi branch of the bank was the branch where the internship was completed,
the selection of which was primarily due to the proximity of the branch from the place of
residence. CBIL is a bank having a strong presence in the market and providing an excellent
banking service to the customers.
1.4.3 Placement
The starting of the internship was with the familiarizing of the Intern with the staffs and the
operational environment in the branch. The encouraging and cohesive environment made the
process of learning easier. During the eight weeks of internship, intern was mostly placed in
Customer Service Department (CSD). However, the opportunity of gaining knowledge about the
operational process and other activities of various departments, mostly the Credit Department,
within the branch was also provided in the bank.
Table Number 2.1:
Weeks Spent in Different Department

Weeks
Name of department

1st

2nd

3rd

4th

5th

Customer service

Credit

6th

7th

8th
*

Source: Field Survey, 2012

1.4.4 Duration of Internship

The duration of the internship as defined by the Tribhuvan University (TU) was of eight weeks. In
accordance with the defined duration the Internship lasted from 14th June, 2012 to 9th August, 2012
for the period of 8 weeks.
Despite of the time limitation, much knowledge has been obtained, a lot has been learned and
confidence has developed a lot. The way of communication with people and customer relationship
skill has been developed. Intern was placed at Customer Service Department (CSD) most of the
time and in the Credit Department with the placement to the other departments time and a/gain.
1.4.5 Activities Performed
The 8 weeks of internship was very important as per the activities performed. Every activities of
the CSD were preformed as a part of the CSD department in the Maitidevi branch of CBIL.
I was placed basically in the CSD. Here I performed some of the activities under the supervision of
my supervisor due the sensitivity of the issue and other activities on my own. Following are the
activities performed in the department during the period of internship
Activities performed in Customer Service Department (CSD)

Account Opening
Assist customers in the opening of accounts and open accounts through the Pumori after
receiving of all documents essential for the opening of accounts. The access to the system
was, of course, under the supervision of the staffs.

Cheque Printing
Printing the cheques and issue it as well as keeping the records of the cheques issued in the
register maintained for the purpose after getting the signature of the customers. The
customer was asked to fill up the Cheque Requisition Form (in case of cheques to be issued
for the very first time) or the Cheque Slip in the cheque book (for the new cheque book to
the customers to whom the cheques were issued previously).

Account Closing:
Customer was first encouraged not to close their accounts. On their request the CSD staff
would close the account. As an intern I had the following tasks done:

Provide customers the Account Closing form and help them fill up the form

After the inter-department ticket was given to the customer, take the form to the
Branch Manager for approval

Handling Telephone Calls

Telephone calls were handled to:

entertain the queries of the customers

give information to the customers about the maturity of the FD account, the arrival
of Visa Cards

transfer the incoming calls to the respective departments

Scanning and photocopy

The activity of making the photocopy of the documents such as the Citizenship Certificate
of the customers, the FD receipt and the other documents as asked by the staffs of the bank
was performed during the internship period.
The account opening forms of the customers (signatures of the accountholders and their
photos) and other documents were scanned during the period.

Filing and record Keeping:

Proper filing of the things like cheque requisition form, ATM Acknowledge form, account
opening form etc.
Updating of the account opening register for the new accounts opened and getting the
signature of the authority on the register was the job done.

Report Preparation
At the end of the day the following reports were prepared:
Report regarding the opening of the accounts
Report regarding the number of Visa Cards issued
This report prepared was checked and verified by the authorities concerned.

Relationship maintenance
Maintaining good customer relationship was another motto in the CSD. As an intern it was
always kept in mind that none of the activities done should affect the existing relationship

between the bank and customers. As an intern the focus was on the Walk-in customers as
wel l as the existing customers because they the walk-in customers were the potential
customers of the bank who would make the word-of- mouth advertisement of the bank and
the existing customers are the assets of the bank.

Dealing with the customers complaints

Along with the supervisor of the CSD I was also involved in dealing with the grievances of
the customers. The major grievance was related to the ATM machine. Customers made the
following types of complaints:

After they punched the amount and pin code in the ATM machine they received the
withdrawal slip but not the amount withdrawn.

They couldnt withdraw their money because the notice of transaction failure was
repeatedly displayed probably due to the network problem.

The branch dont have proper parking space for the customers.

The letters on the Display board of the branch wasnt properly visible to the
customer.

Assistance in various service delivery:

The CSD staff was helped in the delivery of the utility services to the customers. Assistance
was regarding the providing the information about the service to the customer and helping
the CSD staff deliver the services.
Miscellaneous Activities:
Several other miscellaneous activities were performed during the period of internship. The
activities performed in the CSD may be listed as follows:

Provide customer with balance certificates, statements, customer advices as per the
rules and regulation of the bank.

Provide debit cards

Arrange for the SMS banking and internet banking.

Market and promote the product of bank and convince the clients.

Maintain good relationship with customers

Writing the applications as instructed by the supervisor on behalf of the customers.

6
Activities performed in the Credit Department
Credit department is the department that generates income for the bank as the major source of
income is the interest income gained from the loans provided. Though the major activity is to
provide credit the following secondary activities are performed while providing loan to the
customers

Providing information to the customers regarding the features of the loan desired by the
customer.

Valuation of the property to be kept as security, through an independent valuator.

Site visit of the mortgage security.
Preparation of the Security documents for the purpose of loan and having the client sign the
documents.

Have a representative present in the Land Revenue Office where the land and/or building
are transferred under the ownership of the bank till the loan is fully paid by the client.
However, I was involved in the following activities:

Writing the security documents such as Mortgage Deed, Loan Deed and Promissory
Note under the supervision of ARO (Assistant Relationship Officer).

Observing the activities in the Land Revenue Office while visiting the office with the
ARO.

Scanning of the various documents in the Credit Department as instructed by the

Credit Officer of the department.

CHAPTER II
INTRODUCTION TO BANKING INDUSTRY
2.1 History of Banking Service
Right from the time mankind realized the necessity of living an organized life, it has always
searched for new ways to gain security of its life and property. The history of banking dates back to
the time when the first prototypes banks of merchants of the ancient world (Assyria and Babylonia
(currently Iraq), at around 2000 B.C., made grain loans to farmers and traders who carried goods
between cities The development of banking spread through Europe also and a number of
innovations took place in Amsterdam in the 16th century and in London in 17th Century. During the
20th Century, developments in the telecommunications and computing caused major changes to the
banks operation. The world banking industry witnessed further changes in the operational style,
services demanded and the innovations in service delivery.
The first bank to be established was The Bank of Venice in 1157 A.D. in the city of Venice, as an
improvement to the Chamber of Loans, an institution looking after the management of debt in the
city. The Medici Bank that was set up in Italy in 1397, the Bank of Barcelona in 1401 and the Bank
of Genoa in 1407 were some of the major notable banks to be established following the Bank of
Venice. The Bank of Venice and the Bank of Genoa continued to operate until the end of the
eighteenth century.
The Bank of England in 1694, the Bank of Scotland in 1695, and the Bank of North America in
1782, the Bank of France in 1800 were the other major establishments in the history of world
banking industry. And the introduction of banking Act in 1833 A.D in the United Kingdom, the
growth of the bank accelerated as bank could be established in the form of a joint stock company.
Historically, the primary purpose of a bank was to provide loans to trading companies. Banks
provided funds to allow businesses to purchase inventory, and collected those funds back with
interest when the goods were sold.

2.2 Evolution of Banking in Nepal

Banking industry is one of the oldest service industry in Nepal involved in lending and borrowing
activities that has gone through various stages of evolution and development since the Vedic times
(200 to 1400 B.C.). Towards the end of 8th century, Gunkam Dev had borrowed money to rebuild
the Kathmandu valley. Similarly Introduction of the Nepal Sambat by Shankadhar, a sudra
merchant of the Kantipur in 880 A.D; after having paid the full outstanding debts in the country
also gives evidence of the debt service existing in Nepal from the ancient times.
However the history of modern and formalized banking practice started from the time of Rana
Prime Minister Ranoddip Singh (1877B.S.- 1885 B.S.) who established the Tejarath AddaTo
overcome the drawback of the ancient way of banking. However, the Tejarath Adda did not accept
deposits from the public due to which the financial needs of common people were largely
unfulfilled. Hence the need of the financial institution performing the borrowing and lending
facility was felt.
Later on, in the year 1937 (30th Kartik, 1994 B.S.), Nepal Bank Limited was established for the
purpose of commencing a financial institution that can fulfill the void of banking institution in
Nepal. With this Nepal the modern banking era started in Nepal. Nepal Bank Ltd. limited came
into being in 1937 A.D as the first commercial bank in Nepal under the Nepal Bank Act 1936 A.D
replacing the older system of banking with the motive to develop the trade and industry in the
country. Having a primary objective to create an institution for issuing currency and ending the
dual currency system prevailing at that time Nepal Ratra Bank (NRB) was established in 1956 (14th
Baisakh 2013) under the Nepal Rastra Bank Act 1955. It is the Central Bank of Nepal responsible
for formulating monetary policy and the regulation of the banking industry of Nepal.
However, as the Central Bank, Nepal Rastra Bank had its own limitations and as a commercial
Bank, it was logical for Nepal Bank Ltd. to go to unprofitable sectors. So to catch up with these
problems, the government established Rastriya Banijya Bank in 2022 B.S (1965 A.D), under
Banijya Bank Act 1965 A.D. as a fully state owned commercial Bank. The establishment of
Industrial Development Bank (converted into Nepal Industrial Development Corporation 1959
A.D.) in 1957, Agriculture Development Bank in 1968 were the other major developments in the
history of Nepalese banking industry.

9
Only after 1984, Private Banks were allowed to operate with a license. With the introduction of
this licensing policy a number of joint venture commercial banks came into existence. The first of
those kinds are Nepal Arab Bank Ltd., Nepal Indosuez Bank Ltd. and Nepal Grind lays Bank Ltd.
With the aim to provide quality banking service, enhance the efficiency and healthy competition,
foreign investment and new technology in banking was introduced. NABIL is the first foreign bank
to be established in 2041 B. S. in Nepal. Initially, 50% of shares were owned by United Arab
Emirates Bank, 20% by the financial institutions and remaining 30% shares are owned by the
general public
Then, Nepal Indosuez Bank Limited was established as a second foreign bank in 2042 B. S. In this
bank, 50% share is held by Banque Indosuez, France, 15% share by Rastriya Banijya Bank, 15%
by Rastriya Beema Sansthan and 20% by the general public. It was established with the authorized
capital of Rs.120 million, issued of Rs.60 million and paid-up capital of Rs.30 million. Another
bank i.e., Nepal Grindlays Bank (now Standard Chartered Bank) was established as the third
foreign bank in 2043 B. S. In this bank also 50% share is held by ANZ Bank of Australia, 35% is
held by Nepal Bank Limited and remaining 15% share held by the general public.
There are 32 commercial banks, over 75 Development Banks and several fianc companies, microfinance institutions as well as Cooperatives performing limited banking activities. The banking
institutions in Nepal offer modern facilities and some of the international banks have tie-up with
some of the commercial banks and other financial institutions of Nepal. International banks can
also open their branches in Nepal under the commitment made by Nepal in the World Trade
Organization (WTO) to cater to the needs of foreign travelers. The banks in Nepal offer money
exchange value of almost all foreign currencies as well as profitable credit card facilities for
foreign travelers.

10

2.3 Role of Banking Industry in Economy

Banking industry is the backbone of an economy. It is the intermediary mechanism that is
primarily responsible for the transfer of the surplus funds from the surplus generating units in the
economy to the deficit facing units. Generally, the surplus generating units are the units such as
households and individuals that generate small amount of saving. The deficit facing units,
however, are the units such as businesses, institutions and the government which have a huge
appetite for funds. There comes the role of banking industry as an intermediary.
The banking industry then accumulates the small savings of the individuals and households,
transforms the savings into a huge amount of saving and transfer the amount to the units in the
economy that are in need of the fund. This role of intermediary is the key to the movement of funds
in the economy. The chain of earning, saving and spending, investing and again earning and saving
is the key to the growth of the economy.
The roles performed by the banking industry in an economy can be presented as follows
1) Credit Generation
Banking system and the financial institutions play very significant role in catering the credit
needs of the overall society. It generates credit to the credit deficit units of the economy
through the funds that comes to the banking mechanism. The credit thus generated is used
in the productive activities in the economy. Thus, the generation of credit is most efficiently
performed by the banking industry that helps in the growth of the economy as a whole.

2) Fund mobilization
Without the presence of an intermediary mechanism like the banking industry the funds
available to a unit of the economy remains immobilized. The transfer of this to be
stagnant fund is another major role played by the banking industry.

3) Credit availability
Banking system makes credit available to the needy unit of the economy so as to aid
various needs of the business sector, the government and individuals. This availability helps
in the movement and growth of the economy. It is also very vital in making the funds
available for the development of infrastructures in the economy.

11
4) Investment opportunity generation
Banking industry is a very potential investment opportunity as well as a very strong aid to
the other available investment opportunities in the economy. From the risk free investment
asset like the Treasury Bills to the riskier assets like stocks and bonds and to the more risky
assets like warrants an individual and the institutional investor gets the opportunity to
generate income from their resources.

5) Availing access to the resources

The opportunity to get access to the financial resource like the funds is possible with ease
only due to the banking industry and its mechanism. People get access to the financial
resource through the banking system and its mechanism.

6) Upliftment of the lower and marginalized people

The availability of the investment opportunities, the availability of the funds for the various
uses to the people at large and the chance to get the opportunity to generate returns to their
small saving helps in the uplifting of the living standard of the marginalized society with
the limited access to the funds.

12

CHAPTER III
INTRODUCTION OF ORGANIZATION

3.1. Introduction of Citizens Bank International Ltd

Citizen Bank international limited(CBIL) was established on June 21, 2007 and commenced is
commercial operation from 20th April 2007.The head office of the bank is located at Sharada
Sadan, Kamaladi. It is an A level financial institution as licenced by the Nepal Rastra Bank
(NRB) as well as a public limited company established under company act 2056. It is promoted by
eminent personalities/business and industrial houses and reputed individuals having high social
standing. It is promoted by prominent personalities business/industrial house and reputed
individuals having high social standings. It is managed by a team of experienced bankers and
professionals. With the increasing level of liberalization, privatization and globalization in this
sector the commercial bank such as Citizens bank international ltd., are established to aid the
economic growth and development of this nation. Todays bank plays a vital role for the economic
development of the country.
VISION
To be the leading bank known for its service excellence in the region.
MISSION
To be a trustworthy partner for the progress of individuals and institutions by designing, producing
and delivering the best financial solutions.

Corporate Values
The Bank will constantly strive to inculcate in its services five corporate values as follows:

Customer Focus

We are committed to meet the financial needs of our customers and exceed their
through innovative solutions.

expectations

Service Excellence

We promise to deliver customer centered products and services par excellence.

Human Resource

We employ bright, honest, helpful and pleasant people. We nurture and empower them to achieve
their full potential.

Corporate Governance

We believe in being accountable, conducting business ethically and maintaining transparency.

Social Responsibility

We are committed to take social initiatives for the development of the nation.

3.2 Financial description of CBIL

Authorized Capital: NRs.5, 000 million
Paid-up Capital: NPR 2101.84 million

Recent Financial Performance

Table no. 1:
Some Recent Indicators
S.N.

Particulars

1
2
3
4

Earnings Per Share

Price- Earnings Ratio (P/E Ratio)
Liquidity Ratio
Net Worth per Share

4th Quarter (F/Y

2068/69)
Rs.10.61
Rs 21.68
Rs 29.12
Rs 116.89

Table No. 2:
Unaudited Financial Results (Quarterly)
Ratios (%)
Capital Fund to RWA
Non-Performing Loan (NPL) to Total Loan
Total Loan Loss Provision to Total NPL
Cost of Funds
Credit and Capital to Deposit Ratio
(Source: Karobar National Daily)

4th Quarter (2069)

15.58%
2.01%
99.71%
7.74%
74.40%

3rd Quarter(2068)
16.33%
3.10
75.28%
8.62%
78.44%

14

3.3. Organization Structure

Organization Structure

15

3.4. Introduction of CBIL Maitidevi Branch

The maitidevi branch of Citizens Bank started its operation from 8th Bhadra 2066 B.S. as the 17th
branch of Citizens Bank. At the time of establishment there were 5 staffs in the branch and at

present the number of staffs has reached to 8 at present. The deposit in the branch has reached up
to Rs. 36 crores approximately and the loan portfolio of the branch has reached up to Rs. 16
Crores. The branch recently made the profit of nearly Rs. 22 lakhs in the past fiscal year.
At present Mr. Ashok Thapa is the Branch Manager and Ms. Rami Shakya is the Assistant Branch
Manager of Maitidevi branch of Citizens Bank Ltd.
The branch has a team of dedicated employees with a great level of cooperation among them. The
branch has been awarded as the Best branch of the year also. With a good growth rate of progress
in terms of loan portfolio and deposit it has also maintained good relationship with the customers.

3.5. DEPARTMENTS OF CBIL IN MAITIDEVI

3.5.1. Customer Service Department(CSD
Customer service is a series of activities designed to enhance the level of customer satisfaction
that is, the feeling that a product or service has met the customer expectation and the Customer
Service Department (CSD) means the front desk of any organization that enables face to face
interaction with the customers who visits the organization. For any organization it is the very place
which makes an early impression to the clients. The image and the reputation of bank depend upon
effective functioning of this department. The competence and attitude of the sales staff, complaints
handling, customer dealings, and after sales service are all areas that affect customers perception
of the company and also their loyalty to company. If they are unprofessional or make rude remarks
about or to customers, customers perception of the organization will suffer even though the
employee is not on duty. It is the first place where the customers first get the service.
Objectives of the Customer Service Department

The prime objective of the department is to provide competent and effective service to the
customers. Along with that the other major objectives of the department are as follows:
Disseminating information

16
Listening and handling customers grievances
Building good customer relationship
3.5.2 Credit Department

a) Corporate Banking
i.

Funded Facilities
Overdraft loan
Fixed term loan
Personal loan
Loan against fixed deposit
Loan against counter guarantee

ii.

Non-funded Facilities
Letter of credit
Bid Bond
Performance Bond
Advance payment Guarantee

b) Retail banking
i.

Hire purchase loan

ii.

House loan

CBIL has been introducing innovative products to fulfill the needs of the various segments of
borrowers. The bank primarily focuses on corporate lending .The auto loan schemes and home loan
scheme have been well received by the market.
3.5.3 Trade and Credit Operation:In this department L/C transaction takes Place, where Company or organization buys their
equipment through L/C department. This department also plays a vital for the customer to make
available their goods. In this department L/C transaction take place and loan transaction take place
such as auto loan, home loan, educational, margin loan etc in this department after the approval of

17
loan then this department does the rest of thing after the approval of loan whereas L/C transaction
take place from the beginning to the end of the transaction in this department. Due to the new bank
they have kept both of the department in same department.

In this department first step of loan transaction take place. In this department auto loan, home loan,
educational loan, margin loan etc take place. In this department they verified whether to passed the
loan or not to the customer. In this department bank staff evaluate the property and earning income
as per the bank rules and regulation. Marketing play a vital role in bank, in any organization, or in
any company without marketing it is impossible to face the competition in the present situation of
the market. Marketing helps to grow and extend the business.

3.5.4 Cash Department

This department is related to cash, cheque and draft .mostly they related with cash transaction. The
deposit and withdraw of cash is done in this department & the clearing of cheque is also done
through this department. The main function of clearing department:
Outward bills for collection (OBC)
OBCs are those bills which came from different client of different banks for collection. The
clearing officer collect the OBCs from dispatch at morning and enter them into the OBC register
after entering he make two vouchers- one contra voucher and one simple credit voucher. After this,
he enters these OBCs into the computer and logs them for clearing in clearing house in NRB. At
the end of the day, the OBCs come back from NRB. The OBCs which are realized the officer in
register write realized in front of it and which are return he write return in front of it. The bills
which are cleared the officer give credit to their account and the bills which are return due to any
reason are sent back to the branch where it came from and the owner of the cheques are informed
about their bounced cheque.

3.5.5 Remittance Department

This department helps to exchange the foreign currency with Nepalese currency. This department
also helps to make travel cheque those who travel outside the Nepal. The transactions performed
by this department are fax transfer, performing pay order, money transfer through Western Union
& City Express and it had network problem time to time & another is balance problem.

18

3.6. CBIL Products at Glance

Deposit Products

The bank has introduced various products recognizing the various categories of customers and their
needs. The customers are served through 33 branches and ATM outlets at major places as well as
through any Point of Sales (PoS) accepting the Visa Debit Card offered by the bank. Various
deposit products of the bank are as follows:

Citizens Super Savings Account(CSSA)

Citizens Euro Saving

Citizens Sharedhani Bachat Khata(CSBK)

Citizens GBP Saving

Senior Citizens Savings

Citizens Fixed Deposit

Citizens Matribhumi Bachat

Citizens Call Deposit (NPR)

Citizens Mahila Bachat

Citizens Current Deposit

Citizens Muna Bachat

Citizens Rastrasewak Saving

Citizens Recurring Deposit

Citizens Bidhyarthi Bachat

Citizens Zero Balance Account

Citizens Special savings

Citizens Saving

Citizens Mofasal Saving

Citizens Dollar Saving

Loans and Advances

Corporate Loan

Term Loan

Export Financing

Working Capital / Short term Loan

Consortium Financing

Overdraft

Other Loan

Trust Receipt Loan

19
Consumer Loan and Other Product
Citizens Equipment Loan

Other Loans

Citizens Home Loan

Citizens SME Loan

 Citizens Auto Loan

Citizens Margin Lending

Citizens Education Loan

Loan against first class bank guarantee

Citizens Mortgage Loan

Loan against Government Bond

Citizens Equipment Loan

Loan against Fixed Deposit Receipt

NPR loan against FCY(Foreign Currency)
FD receipt
Loan against Fixed Deposit Receipt of
other banks
Citizens Gold Loan

Other Products and Services / Facilities

Citizens Debit Card(Visa Card Network)

Cheque

payment

and

deposit

acceptance through network of

various other financial institutions
ATM Counter Service

Unlimited withdrawal(except in
evening counter) and deposit

Locker Facility

Trade Operations

365 days Banking Facility

Domestic

and

Overseas

Remittance facility
Evening Counter facility

INR Remittance facility

ABBS facility

Foreign Currency Drafts

Internet Banking facility

Travelers Cheque

SMS Banking facility

Clean Bill/Cheque Purchase

Nepal Telecom Prepaid and Post-Paid Bill

Documentary Draft

Payment
Nepal Telecom PSTN and ADSL Bill
Payment
Cheque book and ATM facility
SWIFT Service facility

20

CHAPTER IV
ANALYSIS OF ACTIVITIES DONE /PROBLEM SOLVED

4.1 Activities done / Problems Solved

The involvement as an intern in the CBIL, in Maitidevi branch, was very fruitful from the aspect of
gaining the practical exposure to the banking industry as well as to the corporate world. Facing the
various situations in the branch helped me develop a new insight of the works performed in the
banking industry. The analysis of the activities performed in the various departments in which I got
involved is given below:
4.1.1 Activities performed in Customer Service Department (CSD)
CSD is the front desk of an organization. When any customer visits the institution then the first
impression of the institution is given by the customer service department. As the name suggests
this department is primarily involved in providing services to the customers from answering the
queries of the customer to delivering the service of account opening and other auxiliary services.
The image and the reputation of bank depend upon effective functioning of this department. The
competence and attitude of the sales staff, complaints handling, customer dealings, and after sales
service are all areas that affect customers perception of the company and also their loyalty to
company. It is the first place where the customers first get the service.
I was placed basically in the CSD. Here I performed some of the activities under the supervision of
my supervisor due the sensitivity of the issue and other activities on my own. Following are the
activities performed in the department during the period of internship:

Account Opening

Cheque Printing

Account Closing

Handling Telephone Calls

Scanning and photocopy

Filing and record Keeping

Report Preparation

Relationship maintenance

Dealing with the customers complaints

Assist in various service delivery

Miscellaneous Activities

4.1.2 Activities in the Credit Department

Writing the security documents such as Mortgage Deed, Loan Deed and Promissory Note
under the supervision of ARO (Assistant Relationship Officer).
Observing the activities in the Land Revenue Office while visiting the office with the ARO.
Scanning of the various documents in the Credit Department as instructed by the Credit
Officer of the branch.

4.2 Analysis of activities performed

The activities performed in the branch were all new for this intern. Having the enthusiasm
to learn about the activities performed in the bank and participate in the activities performed a lot
was learned and many experiences were gained. The performing of these banking activities was
never an easy task though the learning of the activities and the performance was made easy due to
the effective teaching and training by the supervisor.
The analysis of the activities presented by this intern as given below is based on the experience
gained during the performance of the activities and the observations made during the period of
performance.
The analysis of the activities performed in the CSD is given as follows:

The task of dealing with the various natured people is indeed a very difficult task. There are
various types of customers to be dealt in. some customers are very well mannered and co-operate
with the persons in the CSD. They are easy to be dealt with. While some other are of irritating
nature and it seems that they are intentionally in mood to show such behavior. The employees in
the CSD need to be very patient in dealing with such variety of customers. Same rule applied to the
interns performing their job in the department. Regarding the activities performed as an intern the
tasks of CSD seemed to be repetitive in nature. Though at the beginning these activities seemed
interesting things start to become boring as time passes by. Many small things are to be kept in
mind along with the confidentiality of information of the customers. So, at the beginning interns

22
interns get confused easily and get track of the activities as they perform their task for some period
of time.

Regarding the complaints of the customers it seems to say a thing compulsorily. Some of the
complaints made by customers occur due to the fault of the system. For example, the complaint
regarding the ATM machines result due to the technical failure. Another example is the wrong
calculation of period of FD maturity for the interest to be provided to the customers.
So, in conclusion, it can be said that the activities in the CSD are simple yet challenging and
repetitive yet sensitive. These activities deserve proper attention of the employees along with the
satisfaction of demanding nature of the customers.

The analysis of the activities in the Credit Department is given as follows:

These activities are more complex than the activities in the Customer Service Department. The
intern find less tasks to be performed in the department by themselves as they need enough of the
time to know the technical and legal aspects of the tasks and its sensitivity.
This intern had the opportunity to observe the activities in the department and participate in some
of them.
The activities in this department demand the intern to have some basic knowledge about the legal
terminologies and concepts as well as some of the rules and regulations. The legality, sensitivity
and gravity of the activities as well as the security documents demand extra care from the side of
the concerned authority of the department.

23

CHAPTER V

CONCLUSION AND LESSONS LEARNT

5.1 Conclusion
This period of internship in Citizens Bank was a very fruitful experience. From this internship, the
knowledge about the working environment, the banking activities was gained and on-the-job
experience of bank was realized which shall prove to be a great experience. Due to the interaction
different people, variety of skills gained and the involvement in the activities of different
departments of a commercial bank the experience gained would be very helpful for future career
development.
The study refers to the Customer service Departments (CSD) that deals directly with the
customers enquiries, handling complaints and service distribution. CBIL is able to maintain strong
relationship with its customer through various customer oriented products and services. A large
part of this success is also attributed to the maintenance of relationship with the customer and other
corporate houses and financial institutions. CSD has been major source of attracting customers to
the bank. The politeness of the employee at CSD while handling the queries and complaints, the
way of receiving deposits by the tellers and the instant delivery if service plays great role of
importance in winning the heart of customer and drive them to be loyal to the bank and their
services.
On these 8 weeks of internship, an overview of the working procedure of the banking system of
Nepal was understood. Having gone through the systems of the bank, operation of system to some
extent was understood. The theoretical knowledge gained about the customer relation was actually
implemented in the practical banking settings. Internship has worked over the development of
communication and interpersonal skill of the intern. Interaction with different level officers of the
bank and informal discussions succeeded in improving the knowledge about the banking scenario
and different banking terms enhancing the decision making and problem solving skill.

5.2 Lessons Learnt

The involvement of the intern in the activities of Customer service Departments (CSD) provided a
lot of knowledge about the banking system, its working system, and communication and interpersonal skills to deal with customers, senior employees and co-workers. The study helped the
intern to draw the outline about the working activity of Customer service Departments (CSD) and
other departments as well.
From the internship the intern gained the following lessons:
For any organization customers are the crucial part that determines the success or failure of the
institution. Satisfied customers are the reason for any successful organization.
The working process of dealing with customers while providing service and handling
complaints and queries should be satisfactory enough to retain the existing customers and
attract new ones. Customers are ready to be linked to the branch if they get satisfactory service.
Time management skill and its importance were learnt. One has to deal with numbers of
customer at once, so everyone should be equally treated.
Role of communication and inter-personal skill while handling the customer is very crucial in
CSD to motivate the customers and maintain healthy relationship with them.
The employees in the CSD give first impression to the customers. So, they should have a good
level of self-confidence while dealing the customer along with the skill to deal with them
properly.
Patience is the key to handle the customers. One has to be calm in any kind of situations while
dealing to the customer.
Behavioral issues should be considered
Co-operation is the symbol of bank being customer-friendly. So the person at the CSD should
be as much helpful as she can be to make positive impact of the bank.
Proper documentation is helpful for the smooth flow of work as well as a good and efficient
means of reference in case of to the past cases and activities.
The intern learned to use the photocopy machine and scanner to copy and scan the documents
as the process of documentation in the bank.
The intern was also familiar to actual job stress.

25

5.3 Recommendations
The initial period of internship was spent in getting habituated to the environment of the Customer
Service Department.
On the basis of experience gained and observation made while working as intern, following are the
recommendations to the bank:
1. The ATM terminals placed in the various places has frequently created problems to the
customers while withdrawing their money. Customers complaints are very often related to
the ATM machines. This should be considered seriously enough as it might have a negative
impact on the goodwill of the branch as well as of the bank.
2. When the customers receive notice (through SMS) about the transactions of withdrawal and
deposit they do not receive the account number on which the transaction was carried out. If
a customer has multiple accounts then s/he finds it difficult to identify the account from
which the transaction occurred.
3. Bank should give its customers the notification regarding the changes in interest rates of
deposits and loan rates to the customers in their cell phones through the service similar to
SMS banking. It is found that many customers are surprised to find the interest rates
changed as the current means of information delivery seems less effective.
4. The space in the Cash department and CSD does not seem to be sufficient enough for the
staffs to perform their duties effectively and efficiently. As the branch has occupied two
flats the rearrangement of office layout must be considered.
5. The branch should consider the arrangement of parking space seriously as the customers are
facing the parking problem. Since the road extension is coming to the end the arrangement
of such parking space will be permanent.

26

BIBLIOGRAPHY

Acharya, Prajita. (2010). Internship Report. Customer Service Department of Citizens Bank
International Limited. Kathmandu.
Limited, C. B. (2012). Fifth Annual Report (Fiscal year 2067/2068). Kathmandu: Citizens Bank
Interantional Limited.
Prof. Manandhar, K.D. , & Pokhrel, S.B. (2009). Marketing Financial Services. Kathmandu:
Asmita Books Publishers & Distributors (P) Ltd.
Unaudited Financial Results (Quarterly). (2012, August 8). Karobar National Daily .
Zeithaml, V. A., & Bitner, M. J. (2006). Services Marketing. New Delhi: Tata McGraw-Hill
Publishing Company Limited.
www.ctznbank.com
www.nrb.org.np
www.wikipedia.org

APPENDICES
Appendix 1

Appendix 2
Management Team of CBIL
Name

Designation

Rajan Singh Bhandari

Chief Executive Officer (CEO)

Ganesh Raj Pokharel

Chief Administrative Officer (CAO)/ Company

Secretary

Raju Nepal

Chief Operations Officer (COO)

Bodh raj Devkota

Chief Credit Officer (CCO)

Ramdhan Shrestha

Chief Financial Officer (CFO)

Kamal Bikram Singh

Chief Manager- Deposit and Market

Appendix 3
Interest Rates of CBIL Deposit Products
S. N.
1
2
3
4
5
6
7
8
9
10
11
12
13

14

15
16

17

18

Deposits
Citizens Savings (NPR)
Citizens Rastrasewak Savings (NPR)
Citizens Bidhyarthi Bachat (NPR)
Citizens Zero Balance Savings (NPR)
Citizens Mahila Bachat (NPR)
Citizens Muna Bachat (NPR)
Citizens Matribhumi Bachat (NPR)
Citizens Senior Citizens Savings (NPR)
Citizens Special Savings (NPR)
Citizens Super Savings (NPR)
Citizens Sharedhani Bachat (NPR)
Citizens Mofasal Bachat Khata
Citizens Recurring Deposit
3 years
5 years
7 years
Citizens Fixed Deposit (NPR)
Below 3 months
3 months below 1 year
1 year and above
Citizens Kosheli Nichhep Yojana (7 years)
Citizens Call Deposit (NPR)
Citizens Savings Account (FCY)
GBP
EURO
USD
Citizens Call Deposit (FCY)
GBP
EURO
USD
Citizens Fixed deposit (FCY)

Interest Rates (p.a.)

4.00%
5.00%
4.5%
4.00%
5.00%
4.00%
4.50%
4.00%
5.00%
6.00%
5.00%
6.00%
7.50%
7.75%
8.00%
5.00%
6.00%
7.50%
Doubles in 84 months
Up to 11.50% p.a.
0.50%
0.50%
0.50%
0.25%
0.25%
0.25%
Negotiable

Appendix 4
Branches of CBIL
Serial No.

Branches

Corporate Office/Kamaladi Branch

Biratnagar Branch

New Road Branch

Kumaripati Branch

Koteshwor Branch

Bouddha Branch

Birgunj Branch

Pokhara Branch

Nepalgunj Branch

10

Narayanghat Branch

11

Butwal Branch

12

Dhangadhi Branch

13

Birtamod Branch

14

Kalanki Branch

15

Thahiti Branch

16

Nayabazar Branch

17

Maitidevi Branch

18

Beni Branch

19

Ghorahi Branch

20

Gaighat Branch

21

Kirtipur Branch

22

Narayan Gopal Chowk Branch

23

Mahendranagar Branch

24

Kapan Branch

25

Pathlaiya Branch

26

Madhyapur Thimi Branch

27

Humla Branch

28

Charikot Branch

29

Itahari Branch

30

Bhaktapur Branch

31

Janakpur Branch

32

Patandhoka Branch

33

Surkhet Branch