SPECIMEN

INTERNSHIP FINAL REPORT ON

SHOPPERS STOP & NEPAL SBI BANK

Submitted to
CHITKARA BUSINESS SCHOOL
In partial fulfillment of the requirements for the award of degree of

BACHELOR OF BUSINESS ADMINISTRATION 2012-15

Submitted by:

Supervised by:

Mallika Rajbhandary

Shivali Jindal

CUN120501115

Assistant Proffesor

CHITKARA BUSINESS SCHOOL

CHITKARA UNIVERSITY
2015

DECLARATION
I, " Mallika Rajbhandary, hereby declare that the work presented herein is genuine
work done originally by me and has not been published or submitted elsewhere. Any
literature, data or work done by others and cited in the report has been given due
acknowledgement and listed in the reference section.

Mallika Rajbhandary
CUN120501115
Date: 30th April 2015

ACKNOWLEDGMENT
A summer project is a golden opportunity for learning and self-development. I
consider myself very lucky and honored to have so many wonderful people lead me
through in completion of this project.
On the very outset of this report, I would like to extend my sincere & heartfelt
obligation towards all the personages who have helped me in this project. Without
their active guidance, help, cooperation & encouragement, I would not have made
headway in the project.
I am extremely thankful and pay my gratitude to my faculty Ms. Shivali Jindal and
Ms. Laveena Mehta for their valuable guidance and support on completion of this
project in its presently.
I extend my gratitude to Chitkara University for giving me this opportunity. I also
acknowledge with a deep sense of reverence, my gratitude towards my parents and
member of my family, who has always supported me morally as well as
economically.
At last but not least gratitude goes to all of my friends who directly or indirectly
helped me to complete this project report.
Any omission in this brief acknowledgement does not mean lack of gratitude.
Thanking You
Mallika Rajbhandary

PURPOSE
The purpose of this report is to document the learning, observations and
recommendations along with the data collected as part of the internship project. The
report primarily focuses on the activities performed, findings which were logged on a
daily basis and supporting data wherever applicable.

For this report I have done my training first in CCSRM in Chandigarh followed with
OJT in Shoppers stop from December 2014 till February 2015 as I could not continue
due to very long office hours due to sale period which was deteriorating my health.
Even though I enjoyed my 5 month training session with even OJT of 3 months. I
gained a huge knowledge about fashion retail marketing. I got to interact with many
heads of different Brands like Van Heusean, Arrow, Levis Only, Vero Moda, Zink,
Allen Solly, etc
In March 2015 I joined Nepal SBI Bank which was completely a different sector. In
this I got a chance to interact with customers and even know the work of remittance
an work and how the bank work. From banks vault till customer interaction I got to
gain a lot of knowledge about banking sector.

CONTENT
SHOPPERS STOP ......................................................................................................... 1
1.01 Executive Summary ........................................................................................... 1
1.02 CHITKARA SCHOOL OF SALES AND RETAIL MARKETING ................. 2
1.03 CHAPTER ONE ................................................................................................ 3
1.03. A Indian Retail Scenario ............................................................................... 3
1.03. B Historical Background............................................................................... 5
1.03.C Business Partners........................................................................................ 6
1.03.D Product & Services - An Overview............................................................ 8
1.03.E Use of CRM, ERP & SCM at Shoppers Stop: ........................................ 12
1.04 Chapter TWO ................................................................................................... 14
1.04.A Board Of Directors ................................................................................... 14
1.04.B Organization Structure ............................................................................. 15
1.04.C Customer Entry: ....................................................................................... 16
1.04.D Conversion Ratio: .................................................................................... 16
1.04.F Apparel & non- apparel ............................................................................ 17
1.04.G Controllable & Uncontrollable Factors .................................................... 18
1.04.H SWOT Analysis ....................................................................................... 20
1.05 CHAPTER THREE ......................................................................................... 21
1.05.A Financial Condition of Shoppers Stop: ................................................... 21
1.05.B Awards and Recognition .......................................................................... 22
1.06 CHAPTER FOUR ............................................................................................ 24
1.06.A Roles of Fashion Associates / Customer Care Associates (FA / CCA) ... 24
1.06.B Summary of the work in internship period............................................... 27
1.06.C suggestions ............................................................................................... 27
NEPAL SBI LTD. ........................................................................................................ 29
2.01 Executive Summary ......................................................................................... 29
2.02 CHAPTER ONE .............................................................................................. 30
2.02.A Introduction To Banking Industries ......................................................... 30
2.02.B Global Banking Scenario ......................................................................... 31
2.02.C History Of Nepal SBI ............................................................................... 31
2.02.D Business Partner ....................................................................................... 33
2.02.E Supporting Communities .......................................................................... 34

2.02.F Mission and Vision ................................................................................... 35

2.02.G products & services .................................................................................. 35
2.03 CHAPTER TWO ............................................................................................. 42
2.03.A Board Of Directors ................................................................................... 42
2.03.B Organizational Structure .......................................................................... 43
2.03. C Workflow for Information system in NEPAL SBI BANK ..................... 44
2.03.D COMPETITORS ...................................................................................... 45
2.03.E BCG MATRIX ......................................................................................... 45
203.F SWOT Analysis ......................................................................................... 46
2.03.G PORTERS FIVE FORCE THEORY NEPAL SBI................................. 48
2.04 CHAPTER THREE ......................................................................................... 49
2.04.A Financial Highlight .................................................................................. 49
2.04.B Five years Financial Highlight ................................................................. 51
2.04. C Balance Sheet .......................................................................................... 52
2.04. D Profit and Loss A/c ................................................................................. 53
2.04.E Cash Flow Statement ................................................................................ 54
2.04.F NEPAL SBI STRATEGIES FOR THE CURRENT YEAR .................... 55
2.04.G BUSINESS PERFORMANCE: 2013-14 ................................................ 56
2.05 CHAPTER FOUR ............................................................................................ 57
2.05.A role of customer service ........................................................................... 57
2.05.B Summary of Internship period.................................................................. 59
2.06 CHAPTER FIVE ............................................................................................. 60
2.06.A Research Methodology ............................................................................ 60
2.06. B ANALYSIS OF DATA ........................................................................... 61
2.06.C Suggestions given by the consumers at the time of survey: ..................... 66
2.06. D SUGGESTION & RECOMMENDATION ............................................ 66
2.06.E CONCLUSION ........................................................................................ 67
BIBLIOGRAPHY ........................................................................................................ 68

SHOPPERS STOP

1.01 Executive Summary

The Shoppers Stop limited (SSL) program was designed by Chitkara School of Sales
and Retail Marketing (CCSRM). Its an OJT program. We have given about 5 months
training in Chitkara head office sector 9 Chandigarh and after which we joined
Shoppers stop in Rajouri Garden, Delhi as trainee fashion associates. Our training
started on 14th June 2014. Throughout 5months we had various lecture classes on
sales and retail marketing in India. We had classes on the basis of gender smart
retailing, visual merchandising, store visit, communication and store layout. We had
studied about how Shoppers stop has affiliated all the parts and works as a brand. We
have comparisons of store on merchandises basis as well as according to brands and
competition.
Later after joining shoppers stop in December 2014 I along with friends were posted
in Delhi. I was posted in ladies western. And supervised under DM Ms. Swati Miglani
in Rajouri Garden, elhi I was in Austin Reed which is formal ladies wear brand. I got
to interact with customers. I even got a chance to receive stock, learn few tricks in
cash department gain knowledge about various different brands and also know about
sale procedure.

1.02 CHITKARA SCHOOL OF SALES AND RETAIL

MARKETING

Chitkara College of Sales and Retail Marketing is a Chitkara Education intiative.it

focus to train students for careers in sales and retail marketing. The CCSRM has been
under taking the shoppers stop limited program. It has been providing us the entire
lecturer for widen our knowledge on sales and retail industry. Many lecturers come
and share their experience with us. Mr. Vimal Sharma our program manager looks
after the program and has scheduled our program. Many other courses are also
running with shoppers stop like Metro Cash and Carry (MCC) and Decathlon. Many
activities like role plays and store visits are held for our practical knowledge. The
CCSRM program also conducted few extracurricular activities like ad-mad mobile
phone film making show, Vodafone Facebook photo competition, etc for fun as well
as for creativity of students.

1.03 CHAPTER ONE

1.03. A Indian Retail Scenario
The Indian retail industry has presently emerged as one of the most dynamic and fast
paced industries as several players have started to enter the market. It accounts for
over 10 per cent of the countrys gross domestic product (GDP) and around eight per
cent of the employment in India. The country is today the fifth largest global
destination in the world for retail.
Several corporates have planned to exploit the opportunities in the Indian retail space,
such as Reliance Industries Ltd (RIL), which has lined up capital expenditure of Rs
1.8 trillion (US$ 28.94 billion) for the next three years for its petrochemicals, telecom
and retail ventures.
With the growth in the retail industry, the corresponding demand for real estate is also
being created. Further, with the online medium of retail gaining more and more
acceptance, there is a tremendous growth opportunity for retail companies, both
domestic and international.
Market size of Indian retail industry
The total market size was US$ 490 billion in 2013, registering a CAGR of 6.1%since
1998.
According

to

2015

march

Mall space breakup in India

Hypermarkets would be the largest retail segment, accounting for 21 per cent of total
retail space by 2013-14.

Investment options in organized retail India

Real estate's retail component is an attractive opportunity, which is currently
attracting 29 per cent of total investment in real estate

SHOPPERS STOP
1.03. B Historical Background
The foundation of Shoppers' Stop was laid on October 27, 1991 by the K. Raheja
group of companies, one of India's biggest hospitality and real estate players. The
Group crossed yet another milestone with its lifestyle venture-Shoppers' Stop. With
its immense expertise in the service industry and creditability, Shoppers' Stop today
boasts of 27 retail outlets across the country and is planning to spread its wings with
futuristic expansion plans to meet the challenges of the retail industry. A benchmark
for the Indian retail industry to follow, Shoppers' Stop has progressed from a single
brand shop to a Fashion & Lifestyle store for the families. Shoppers' Stop is a
household name, known for its superior quality products, services and above all, a
complete shopping experience. Shoppers' Stop was the first to redefine shopping
experience and creating a niche for itself in the service industry. As India's first
specialty chain with outlets in Mumbai, Bangalore, Delhi, Hyderabad, Jaipur and
Chennai, Shoppers' Stop offers a complete range of garments and accessories for the
entire family. More than 25,000 customers walk into Shoppers Stop everyday to feel
the experience of shopping. Andheri was the first store to be opened in India. The
initiative of this store was taken by B.S.Nagesh at a time when the concept of retail
industry was just coming into the market. As on today, the current investors in
Shoppers Stop are ICICI, IL&FS Investments and Zodiac clothing. Their combined
shareholding in Shoppers Stop is 19% while 79% is held by Raheja Group & balance
2% is held by its employees.
Vision:
To be a global retailer in India & maintain no.1 position in Indian market in
Department Store Category.

Mission:
Nothing but the best To strive & achieve nothing but the best in terms of
processes, practices & deliverables.

Values:
The following values help Shoppers Stop in achieving its mission & vision:

We shall not take what is not ours

The Obligation to Dissent (against a viewpoint that is not acceptable)

We shall have an environment conducive to openness

We shall believe in innovation

We shall have an environment conducive to development

We shall have the willingness to apologize and/or forgive

We shall respect our customer's rights

1.03.C Business Partners

Launched as India's premier retail chain for branded apparel and accessories,
Shoppers' Stop has systematically progressed from only branded apparel to private
label garments to home furnishings, and finally into books and music - all focused on
our customers' lifestyle requirements and aspirations. In 2000, SSL diversified into
Bookstore Retailing by acquiring 51% stake in Crossword which it later increased to
100% in 2005. SSL has also ventured into various categories like cosmetics through
MAC, mother and infant care through Mothercare, home solutions through Home
Stop, food and beverages (F&B) through Brio and Desi Caf, gaming and
entertainment through Timezone, Ladies non-apparel and accessories through its
luxury format, Arcelia, and into airport retailing through its 50:50 joint venture (JV)
with the Nuance group. SSL also has 19% stake in the hyper-mart format of
HyperCity and has plans to increase it by 51% by end of June-2010. Shopperss
Stores sister store are:

Crossword Bookstores

Crossword Bookstores is a chain of largest bookstores in India with 52 branches.

Shoppers Stop acquired 100 per cent stake in bookstore chain Crossword. Crossword
is positioned as a lifestyle bookstore with their spacious, well laid out stores which
encourages customers ease in browsing through the merchandise of books, music,
stationary and toys.

Home Stop

HomeStop is premium home furnishings home concept store, which offers products in
home decor, furniture and accessories, bath accessories, bedroom furnishings,
mattresses, draperies, carpets, modular kitchens and health equipment.

Brio

Brio makes Shoppers Stop Ltd.'s foray into Food and Beverage which was a step
towards franchised coffee bars. Brio the caf bistro is designed provides
customers a place to relax, revive and reflect. It has a classic yet sophisticated
ambiance. Brio has 20 outlets in select cities. Cafe Coffee Day (CCD), the retail
division of Amalgamated Bean Coffee Trading (ABCTL), has signed an MoU with
Shoppers Stop to run its BRIO outlets.

Desi Cafe

Desi Caf and their operations have been taken over by Cafe Coffee Day (CCD), the
retail division of Amalgamated Bean Coffee Trading (ABCTL), has signed an MoU
with Shoppers Stop to run its Desi Cafe outlets.

Hyper City

HyperCity provides customers a wide variety of range of products for shopping in a

large and modern retail environment. It offers a contemporary range of products,
sourced from both local and international markets. The product range covers: Foods
and Grocery, Homeware, Home Entertainment, Hi-Tech, Appliances, Furniture,
Sports, Toys & Fashion.

M.A.C.

M.A.C. and Shoppers Stop Ltd. entered into a non exclusive retail agreement with
cosmetics major Estee Lauder to open up M.A.C. Cosmetics stores in India. M.A.C.
Makeup-Art Cosmetics - the professional brand of choice, is the first brand under the
Estee lauder Group of Companies portfolio to enter the Indian retail market. Currently
there are 9 M.A.C. stores operating

Arcelia

Arcelia is a new retail concept aiming at the growing accessories and cosmetics
segment, with a strong emphasis on experience and indulgence and primarily caters to
discerning women shoppers. It retails cosmetics, fragrances, fine jewelry, footwear,
handbags.

Mother Care

MotherCare and Shoppers Stop come together to introduce products for infant and
toddler care which stocks a variety of products for mother and babies, toddlers and
children till eight years of age with the focus being on style, function and safety.

Nuance Group

Nuance Group with Shoppers Stop makes an entry into airport retailing. The alliance
is marked with a joint venture with The Nuance Group AG of Switzerland, the
worlds leading airport retailer. Shopper's Stop Ltd. is handling the retail operations at
the duty free zones in international terminals. The joint venture company, called
Nuance Group (India) Private Limited. is operating outlets at the International airports
at Bengaluru and Hyderabad.

Hyper City-Argos

HyperCity-Argos and Shoppers Stop, the two retail ventures of K Raheja group had
signed a memorandum of understanding with UKs leading retail chain Home Retail
group to develop the Argos (retailer) retail format stores in India. Two years later,
Shoppers Stop Ltd has informed Bombay Stock Exchange shall wind down and
discontinue its catalogue retail operations under the Hypercity-Argos brand. Time
zone Shoppers Stop forayed into the Entertainment sector by acquiring 45% stake in
Timezone Entertainment Private Limited which is in the business of setting up and
operating Family Entertainment Centers (FECs). It has 5 outlets in Ahmedabad,
Hyderabad, Kolkata, Navi Mumbai and Mumbai.

1.03.D Product & Services - An Overview

Shoppers Stop has leveraged a keen customer insight and sharp market
understanding to build a multi-hued brand portfolio. The Company provides services
for everyone across various age group, price points and customer preferences. It offers
over 200 international and Indian brands.

In-house Brands:

STOP: Smart and comfortable clothing with a perfect mix of classic and
contemporary style.

LIFE: Trendy, energetic casual clothing and accessories based on global

fashion trends.

KASHISH: Elegant and exquisite traditional occasion wear for the ethnic chic.

ELLIZA DONATEIN: Fashion formals styled with elegance and feminine

touch for the modern working women.

HAUTE CURRY: Young and funky ethno fusion wear for todays young and
Trans global fashion divas.

I JEANS WEAR: Fashion denim wear created for the urban youth epitomizing
individuality.

INSENSE: Elegantly stylish, yet practical and comfortable women wear for
social occasions.

MARIO ZEGNOTI: Romantic fashion formals and smart casual clothing for
men with style and flamboyance.

ACROPOLIS: Basic, smart and comfortable value offerings.

INDI-VISUAL: India visualized in a T-shirt range. A shot of everything thats

inherently

Different brands offered under each category are given as billow:

APPARELS

JEWELLERY

Arrow

Facet

Louis Phillipie

Carbon

Park Avenue Parx

Sparkles

Van Heusen

Tanishq FQ

Zodiac

Swaroski

Stop

Gili

aliber
MUSIC

lackberries
Planet M

Music cullers
World

ivo

O
Home Dcor
yzsterbay

arvoski

stelle

Hair Styling

Fragrances

Habbibs

Watches

Casio

Esprit

Fossil

Titan

Christian Dior

Davidoff

Diesel

Lancaster

Calvin Klein

Yamini

Four SeasonsE

Viva

Welspun

Borosil

Corning Ware

olice

10

P
edrini
Shoes

yren
Lee
Cooper

Red Tape

Picasso
P
Stop

Life

Stores
Shoppers Stop is one of the leading retail stores in India. Shoppers Stop began by
operating a chain of department stores under the name Shoppers Stop in India.
Currently Shoppers Stop has seventy-four (74) stores across the country and three
stores under the name HomeStop. Shoppers Stop has also begun operating a number
of specialty stores, namely Crossword Bookstores, Mothercare, Brio, Desi Caf,
Arcelia. Shoppers Stop retails a range of branded apparel and private label under the
following categories of apparel, footwear, fashion jewellery, leather products,
accessories and home products. These are complemented by cafe, food, entertainment,
personal care and various beauty related services.

Customer Profile:
Shoppers Stops customers fall between the age group of 16 years to 35 years, the
majority of them being families and young couples with a monthly household income
above Rs. 20000 and an annual spend of Rs.15000. A large number of Non - Resident
Indians visit the shop for cultural clothes in the international environment they are
used to which means people from abroad are also interested in shopping in Shoppers
stop. Their target customers are upper middle class and upper class.

Customer Rewards:
Shoppers Stops customer loyalty program is called The First Citizen. The program
offers its members an opportunity to collect points and avail of special benefits.
Currently, Shoppers Stop has a database of over 2.5 lakh members who contribute to
nearly 65% of the total sales of Shoppers Stop. They also offer a co-branded credit
card with Citibank for their members.

11

International Affiliations
Shoppers Stop is the only retailer from India to become a member of the prestigious
Intercontinental Group of Departmental Stores (IGDS). The IGDS consists of 29
experienced retailers from all over the world, which include established stores like
Selfridges (England), Karstadt (Germany), Shanghai No. 1 (China), Matahari
(Indonesia), Takashimaya (Japan), C K Tang (Singapore), Manor (Switzerland) and
Lamcy Plaza (Dubai). This membership is restricted to one member organization per
country/region.

1.03.E Use of CRM, ERP & SCM at Shoppers Stop:

CRM:

Retail chain Shoppers Stop Ltd, is eyeing over 50 per cent sales this year from its
customer relationship management (CRM) initiatives. The company has also lined up
an aggressive expansion plan targeting smaller towns and cities in the country. BS
Nagesh, managing director and CEO of Shoppers Stop, told FE that the company has
given a new direction to its CRM initiatives after it acquired a business intelligence
software called Business Solutions about eight months ago. The new software helps
generate intelligent data from Shoppers Stop customer base of about 2,30,000. The
company then collects this data and touches base with customers via direct mailers
informing them of all new promotions that is currently on and also updates them
about the upcoming events. Shoppers Stop claims that it has taken its CRM initiatives
to a new height and now calls its loyalty programmes Customer Experience
Management. If we find from the data that a customer had bought a pair of trousers,
we tell him about a new range of shirts that we have just brought into our store, says
Mr Nagesh.

ERP:

Shoppers Stop was the first few retailers to use scanners and barcodes and completely
computerize its operations. Today it is one of the few stores in India to have retail
ERP (Enterprise resource planning) in place, which is the best retail planning system
in the world. With the help of the ERP, they are able to open new stores faster and get
information about merchandise and customers online, which reduces the time in
taking quick decision.

12

SCM:

Understanding the importance of distribution and logistics in ensuring that

merchandise is available on the shop floors has led Shoppers Stop to streamline its
supply chain. The company has developed process manuals for each part of the
logistics chain. These modules include vendor management, purchase order
management, stock receiving systems, purchase verification and inventory buildup,
fixing of price and store tags, dispatch of stocks to the retail floor and forwarding of
bills for payment. If we talk about various brands then the answer is that they have a
direct tie ups with different companies and companies deliver all the needed products
to their door-step means deliver all the goods to every shoppers stop showroom. But
there are some companies which do not provide them these services so for those they
have their own carrier.

13

1.04 Chapter TWO

1.04.A Board Of Directors

MR. CHANDRU L. RAHEJA

CHAIRMAN AND NON-EXECUTIVE DIRECTOR
MR. CHANDRU L. RAHEJA, 69, IS THE CHAIRMAN AND NON-EXECUTIVE
DIRECTOR OF OUR COMPANY. HE IS A LAW GRADUATE FROM MUMBAI.
MR. RAHEJA HAS EXTENSIVE EXPERIENCE WITH THE REAL ESTATE,
HOSPITALITY AND RETAIL INDUSTRIES ACROSS INDIA.

Mr. Ravi C. Raheja

Non-Executive Director
Mr. Ravi C. Raheja, 38, is the Non-Executive Director of our Company. He
is a management graduate from London Business School. Designated as
the Group President at the K. Raheja Corp, Mr. Raheja has over 18 years
industry experience with special focus on the groups Real Estate & Retail
arm.

Mr. Neel C. Raheja

Non-Executive Director
Mr. Neel Raheja, 36, is the Non-Executive Director of our
Company. He is an alumnus of Harvard Business School, Masters
in Commerce and Law Graduate from Mumbai University and has
over 15 years of experience in real estate development,
hospitality and retail.
Mr. B. S. Nagesh
Customer Care Associate, Vice Chairman and Non-Executive Director
Mr. B. S. Nagesh, 51, is the Vice Chairman and Non-Executive Director of
our Company. He holds a degree of Masters in Management Studies from
the Benares Hindu University. He has been with our Company since its
inception in 1991.

Mr. Gulu L. Mirchandani

Independent and Non-Executive Director
Mr. Gulu L. Mirchandani, 67, is the Independent and Non-Executive
Director of our Company. He is an alumnus of BITS, Pilani and holds a
degree in BE (Mechanical). Mr. Mirchandani presently serves as the
chairman and managing director of Mirc Electronics Limited.

14

Mr. Shahzaad Dalal

Independent and Non-Executive Director
Mr. Shahzaad Dalal, 51, is the Independent and Non-Executive Director of
our Company. He is a Management Graduate from Northeast Louisiana
University (USA). He is the Vice Chairman of IL&FS Investment Managers
Limited (IIML) one of Indias leading Private Equity Fund Managers.

Prof. Nitin J. Sanghavi

Independent and Non-Executive Director
Prof. Nitin J. Sanghavi, 61, is the Independent and Non-Executive Director
of our Company. He holds Bachelors in Science from Saurashtra
University, Masters in Science and PhD in Retail Franchising from The
University of Manchester. He is a professor of Retail Marketing and
Strategy, Manchester Business School, The University of Manchester.

Mr. Deepak Ghaisas

Independent and Non-Executive Director
Mr. Deepak Ghaisas, 52, is the Independent and Non-Executive Director
of our Company. He is a qualified Chartered Accountant, Cost Accountant
and Company Secretary. He leads strategy development, visioning and
conceptualisation of breakthrough business models for Gencoval Group,
his new venture in Healthcare and Bio Tech

1.04.B Organization Structure

UNIT HEAD

ROM

DM
LEATHER

CA/FA

DM
LADIES
ETHNIC

ROM

DM

DM

LADIES
WESTERN

PACJ

CA/FA

DM

CA/FA

15

KIDS AND
CASUAL

DM
MENS
CASUAL

CA/FA

DM
MENS
FORMAL

CA/FA

1.04.C Customer Entry:

Retailers measure entry as footfalls, which is the number of people entering the stores.
This is computed through manual count in all stores during trading hours.

1.04.D Conversion Ratio:

Conversion is the ratio of the number of transactions (Cash Memo) versus the total
customer entry into the stores. Tracking conversion helps the retailer understand the
productivity of his front-end store employees and the attractiveness of the
merchandise and services.

16

1.04.E Sales:
Gross Sales both at chain level and for Like-To-Like stores has grown against last
year. The growth was 17.7% in gross retail turnover of Shoppers Stop departmental
store business. The sales per sq. ft. has been computed on built-up area.

1.04.F Apparel & non- apparel

APPAREL: The Apparel contribution to total sales of the Shoppers stop Departmental
store business was 62.2% in 2013-14 as compared to 59.9% in 2012-13.
NON-APPARELThis category includes Cosmetics, Personal Accessories, Jewellery,
Leather goods, Home Wares, Electronics, Books and Music. These lifestyle products
have high aspiration value, and as the consuming class increases, there will be a big
surge in the demand for this category. The Non-Apparel contribution to total sales of
the Company was 37.8% in 2013-14.

Sales Mix (%)

(Departmental Stores)
Sales Mix (%)

120
100
80

40.5

42.2

41.3

40.1

38.8

59.5

58.8

58.7

59.9

62.2

2009-2010

2010-2011

2011-2012

2012-2013

2013-2014

60
40
20
0

Axis Title
apparel

non-apparel

17

Column2

1.04.G Controllable & Uncontrollable Factors

Controllable & Uncontrollable factors are those which are directly or indirectly affect
the retail outlet. The difference between these two factors is that one can be controlled
by the retailer and another cannot be controlled. The variables which are controllable
can be change according to the retailers but if we talk about uncontrollable factors
then the retailer have to change him/her according to those factors. There are various
Controllable &uncontrollable Factors. When we ask about these factors to the
employee of Shoppers Stop, he told us the following important things:

Controllable Factors of Shoppers Stop

Pricing

Store Location

Managing a business/workforce

PRICING
He told us that setting price of a product is in our hands. This is our decision that how
much profit we want to make by selling our products. Sometimes we have to set our
prices according to the competition.
STORE LOCATION
Selecting the location for the store is in the hands of retailers because before selecting
the location they have to check many factors like walking traffic, competitor, parking,
infrastructure, etc. They also have to decide that they want to buy the site or they will
take it on rent. So after deciding all these things they reach to the final decision.
MANAGING A BUSINESS/WORKFORCE
He told us that managing the workforce means a lot to them, because they have to
decide that what type of people they need what type of training our employees need,
and what will be the salary of our employees. All these things can be controlled by the
retailer.
Uncontrollable Factors of Shoppers Stop

Government Policies

Seasons

Inflation Rate

Technology

18

Infrastructure

GOVERNMENT POLICIES
Government policies or Legal Restriction cannot be controlled and the big example of
this is sealing of illegal shops. The taxes and duties which retailers have to pay to
the government.
SEASONS
He told us that natural climates cannot be controlled and they have to go according to
that like in winters they have to change their theme and products also. He also told us
that a sometimes season plays a negative role like in rainy season their sales goes
down. So these things cannot be controlled and they can only launch new marketing
strategies to attract the customers.
INFLATION RATE
He told us that as we all know that now inflation rate is more that 12% so it is creating
more problems for us because due to this people are getting more aware of saving
money and due to which our sales is also affected. If we analyze the global market
then we will see that every sector is going down except one or two. And retail sector
is also not doing well these days. Against this we cant do anything, we can only wait.
TECHNOLOGY
He told us that day by day the technology is upgrading and the problem is that the
new competitor comes with new technology because of which they also have to
upgrade their technology which results more expenditure, which is not good for any
business.
COMPETITORS ANALYSIS:
In India, as we analyzed we find only few competitors for Shoppers Stop & those are
mainly foreign players and also Individual stores. The name of few competitors is
given below:

Lifestyle

Pantaloons

Westside

19

1.04.H SWOT Analysis

STRENGTH
1. It has strong domestic presence with 50+ stores in India
2. Shoppers stop has become highest benchmark for retail industry
3. Loyal customer base with more than 750,000 first citizen members
4. Increasing footfalls and conversion rates
5. Management team is strongly established as well as skilled labor force
6. Fan base on social media has been increasing, with 5.3 million fans on our
Facebook page
WEAKNESS
1. It has lesser promotional strategies on both ATL and BTL level compared to global
leaders
2. It always follows low risk strategy in business or entering into new segment
3. Pressure on retail lease rentals
4. Retail is currently not viewed as an industry in India. Hence there are certain
levies/cascading effect of taxes on the business.

OPPORTUNITIES
1. Big opportunity to enter into new geographies nationally
2. Foreign players see it as preferred partner for making investment in India
3. It could enter into Hypercity -high retail value category
4. Format diversification and expansion
5. The Company has made focused investments in e-commerce and is looking to
profitably expand it in the years going forward.

THREATS
1. Due to global slowdown consumers purchase power has reduced for top high value
brands
2. Increasing brand awareness among consumers across all socio-economic classes
3. Threat of new entrants
4. Competitive rivalry in the industry
20

1.05 CHAPTER THREE

1.05.A Financial Condition of Shoppers Stop:

Operating Profit:
Operating Profit (without exceptional items) has increased by 18% to ` 15,366 lacs
from ` 13,073 lacs in the previous year. The Operating Profit Margin has degrown to
5.0% from 5.1% due to opening of large number of new stores during this year.

Net Interest:
Interest cost has increased to ` 2850.2 lacs as against ` 1898.7 lacs.
Profit after Tax:
The Company has achieved post tax profit of ` 3700.5 lacs, as against a post tax profit
of ` 3916.8 lacs last year.
Dividend:
The Company has proposed a dividend of 15% amounting to ` 730.19 lacs (Including
Corporate Dividend Tax).
Inventory:
The inventory as at the end of current year is ` 29,553 lacs as against ` 24,382 lacs as
at the end of the last year. Inventory holding period is 159 days during the current
fiscal against 140 days last year. The inventory has been valued at lower of cost or net
realizable value.

21

Liquidity:
The cash generated from operations was ` 12,532 lacs.

Performance Review
Shopper stop has opened 14 departmental stores i.e., one store each at Chandigarh,
Kalyan, Surat, Thane, Agra, Vadodara, Raipur,Hyderabad, Chennai, Ghaziabad,
Kolkata and Airports at Delhi, Jaipur and Raipur taking its chain of stores to 68 stores
(including five airport stores) spread across India. Further, the Company has also
opened 5 HomeStop stores at Chandigarh, Jaipur, Hyderabad and two at Bengaluru
taking its tally to 18 stores.
The revenue of the Company is ` 272,696.20 lacs (previous year ` 227,143.83 lacs),
registering a growth of 20.05% y-o-y basis. The net Profit achieved was ` 3,700.47
lacs (previous year ` 3,916.85 lacs).
Dividend
Your Directors are pleased to recommend a dividend of ` 0.75 per equity share of ` 5
each. (Previous year ` 0.75 per equity share of 5 each). The payment of dividend is
subject to approval of the members in the ensuing Annual General Meeting.

1.05.B Awards and Recognition

As in the past years, awards and recognitions were conferred on your Company by
leading organisations during the year under review:
Some of them are:
World HRD Congress has conferred the Company with following awards:
1. Excellence in Training & Development Award for Best Custom Built Content.
2. Excellence in Training & Development Award for Best Training Partnership with
External Vendors.
Indias Most Respected Retail Company and Top 50 Most Respected Companies of
India by BWI Business world Magazine.
Best Supply Chain Company in Retail vertical, Award at 7th Express, Logistics &
Supply Chain Leadership Awards 2013.
Best Anchor Store award, for Inorbit Mall, Vashi store.
GIA Award by International Home Ware Association (IHA), Chicago for Homestop.
A certificate for best practice of Innovative Eco Friendly Practices in Retail Qualifier Top 20 Best Practices at 5th Business Excellence
Global Conference and 8th International Benchmarking Conference, Singapore.
22

 Runner Up BestPrax Prize for the project Innovative Eco Friendly Practices at 25th
Qimpro Convention.
The Sliver Award for Viva City Store design at the Designomics Awards.
VM&RD Awards has conferred the Company with following awards:
1. Best Department Store - Thane Viviana Mall
2. Merit award - Best Visual Merchandising across India
3. Merit award - Best Window Display across India
Best Loyalty Program Award at the Loyalty Summit 2014.
Third position in great places to work in Retail Industry by Great Place to Work
Institute and Retailers Association of India.
Coaching Organisation of the Year and Best Organisational Leadership
Development Programme at Learning & Development WHRD
Awards 2014.
Best Green Energy Efficiency Initiative Award at Global Green Leadership Awards,
2014, by World CSR Congress.
3rd Asia Manufacturing Supply Chain Summit has conferred the Company with
following awards:
1. Manufacturing/Supply Chain Leadership and Strategy Award for ASN initiative
with Madura Garments.
2. Best Supply Chain Initiative of the Year Award for GS1 Initiative.
Best Green Energy Efficiency Initiative Award at Global Green Leadership Awards
2014 conducted by World CSR Congress.
Most Trusted Retailer - Popular choice award and Best Customer Loyalty Initiative
of the Year award at the ET Retail Awards ceremony.

23

1.06 CHAPTER FOUR

1.06.A Roles of Fashion Associates / Customer Care Associates (FA / CCA)

Along with the DM, the responsibility of store operation lies equally with FAs / CCAs
too. They handle the customer day in day out. They ensure that the customers are
satisfied and receive a great experience alongwith the desired products. It is also
important that even the co-shoppers need to go back with elated experiences. The
many activities that the FAs carry out meticulously in leading stores are depicted in
the figure below:

Merchandise Related:

Receive the merchandise in the department

Count them

Display them

Manage the Visual Merchandising

Ensure no defective merchandise on the floor

Return the defective merchandise

Report unsold merchandise and return them to the distribution centre

Ensure proper recording and delivery of alternation/replacements

requests

Customer Related:

Be present around the customers

Do not interfere the browsing process
Welcome the customer
Listen to them
Show the requested merchandise
Suggest accompaniments / variety
Ask whether a member of the loyalty programme
24

 Invite / request to fill the form

Check out points for redemption
Suggest merchandise
Guide them to other departments
Ask for alternation
Ensure proper deliveries as requested
Be ready to solve customer problem
Do anything possible to ensure customer delight

Store Related

Ensure that the store is always ready to receive and serve the customers

Check for neatness and cleanliness

Report discrepancies in terms of lighting, air-conditioning, bad odour

Follow all SOPs

Be alert to safety requirements

Ensure proper documentation

Attend preparation meeting

Self-Related

Always be presentable

Dress properly, in line with the store requirement

Attend to self grooming

Be ready to learn

Support team members, even those from other departments

Be aware of competition

Talk about store proudly to everyone, including friends and families

Perform as per the BSC

25

Participate in training and development programmes

Be a sport

Share your happiness as well as your worries

Think positively

A visual presentation of role of the FA has been provided in the attached file. (Area of
responsibility - FA.ppt)
The FA / CCA require contact attention to details. They are also evaluated for these
details. Most retailers would detail the key areas of responsibilities and develop
metric for measuring the performances. An FA / CCA has a similar set of
performance dimensions as given for DM. The major areas of measurements are
given below:

a. Sales

Increase conversion rate

Increase bill value

Increase number of items per bill

Sell more current products to current customers

Sell current product to new customer

Sell new product to current customer

Sell new product to new customer

b. Variance in Inventory

c. Loyalty Programme Enrolment

d. Customer Shopping Experience

Enhance Store Presentation (Silent Sellers)

Engage in Suggestive Selling

Keep the store ready for customer

Ensure high level of maintenance, neatness and cleanliness

26

e. Customer Feedback

f. KYBC (Know your Big Customers)

g. Standards to be abided for security tags, price tags, display, daily global count

h. Punctuality

i. Skill Development

j. Training Undertaken

Several tools are available for developing these measure and their measurements.
These metrics are developed in line with the store performance criteria and the
priority that the retailers would give to the. These priorities are likely to change with
chains, stores or even departments. FAs need to be conscious of these and perform in
accordance since progress in their careers is dependent heavily on these. A sample
Balance Score Card for FAs / CCAs is given as Annexure.

1.06.B Summary of the work in internship period

Store operation has always been a key to profitability of the store. The DMs and
FAs/CCAs have to understand the drivers of profitability and manage them well. The
resources available to a retailer include merchandise, space and people. The team
members lead by the Unit Head need to maximize the return on the investment on
these resources. Stores tend to use many tools, such as balanced score card, to this
effect.
FAs/CCAs play a very crucial role as they are the face of the store to the customer.
They have to be keen and ready to serve the customers as well as maintain the store
for the desired customer experience and hassle free service.

1.06.C suggestions

They should introduce more schemes, discounts, sales to increase the sales.

They should introduce Low rate Brands which will attract the middle class

27

customers also or brands for masses.

The stores becomes a bit messy because of a large footfall & small size of
stores so they Should have larger outlets

They offer parking space only for the first citizen card holders which acts
as a constraint for many first visitors to visit the malls.

Shoppers stops competitors used aggressive medium of advertisement like

television commercial ads, thus to gain a competitive advantage over the
competitors Shoppers Stop should also use such medium of marketing.

28

NEPAL SBI LTD.

2.01 Executive Summary
Nepal SBI Bank Ltd. (NEPAL SBI BANK) is the first Indo-Nepal joint venture in the
financial sector sponsored by three institutional promoters, namely State Bank Of
India (SBI), Employees Provident Fund and Agricultural Development Bank through
a Memorandum of Understanding signed on 17 July 1992 office at Durbar Marg,
Kathmandu with 18 staff members. Nepal Rastra Bank granted fresh license to
NEPAL SBI BANK classifying it as an "A" class licensed institution on 26 April
2006. The Authorized capital is Rs.300 crore and Paid up Capital is Rs.235 Crores.
The management team comprising the Managing Director, who is also the CEO of the
Bank, Chief Operating Officer (COO) and Chief financial officer are deputed by SBI.
SBI also provides management support as per the Technical Services Agreement.
55.28 percent of the total share capital of the Bank is held by the State Bank of India,
fifteen percent is held by the Employees Provident Fund and the balance is held by
the general public.
In terms of the Technical Services Agreement between SBI and the NEPAL SBI
BANK, the former provides management support to the bank through its expatriate
officers including Managing Director who is also the CEO of the Bank. The Bank was
established in July 1993 & is now having 538 Nepalese employees working in 56
branches, 6 extension counters, 3 Regional Offices & the Corporate Office.
State Bank of India (SBl), with a 200 year history, is the largest commercial bank in
India in terms of assets, deposits, profits, branches, customers and employees. The
Government of India is the single largest shareholder of this Fortune 500 entity with
61.58% ownership. SBl is ranked 60th in the list of Top 1000 Banks in the world by
The Banker in July 2012.
The SBI group, consists of SBl and five associate banks. The group has an extensive
network, with over 20000 plus branches in India and another 173 offices in 34
countries across the world.
SBl's non- banking subsidiaries / Joint ventures are market leaders in their respective
areas and provide wide ranging services, which include life insurance, merchant
banking, mutual funds, credit cards, factoring services, security trading and primary
dealership, making the SBl Group a truly large financial supermarket and India's
financial icon. SBI has arrangements with over 1500 various international / local
banks to exchange financial messages through SWIFT in all business centers of the
world to facilitate trade related banking business, reinforced by dedicated and highly
skilled teams of professionals.

29

2.02 CHAPTER ONE

2.02.A Introduction To Banking Industries
Bank may be defined as a financial institution which is engaged in the business of
keeping money for savings and checking accounts or for exchange or for issuing loans
and credit etc. A set of services intended for private customers and characterized by a
higher quality than the services offered to retail customers.
Based on the notion of tailor-made services, it aims to offer advice on investment,
inheritance plans and provide active support for general transactions and the
resolution of asset-related problems.
The essential function of a bank is to provide services related to the storing of
deposits and the extending of credit. Basic function may include Credit collection,
Issuer of banking notes, Depositor of money and lending loans.
Now a days banking is not in its traditional way, with the advancement of
technology its focusing on more comfort of customer providing services such as:

Online banking
Investment banking
Electronic banking
Internet banking
Pc banking /mobile banking
E-banking

The importance of banking sector is immense in the progress and prosperity of any
State or country.
The economic progress and prosperity comes from the well-rounded development and
an impeccable banking management. Banks in general, governmental and private,
have eased our financial transactions, security, and facilitated the funding for
establishing a business or industry.

30

2.02.B Global Banking Scenario

The world of commercial banking is undergoing a deep transformation as a result of

marketable instruments competing with loans and demand deposits. Because of this
strong competition, commercial banks are struggling to make acceptable margins
from their traditional business entering into investment banking.
Growth in the first half of 2014 has remained less than the levels projected in the
April 2014. However, the conditions continued to improve, with robust employment
growth in US, in particular. U.S. imports were stronger than expected during the first
half of the year, suggesting that spillovers from weaker U.S. activity through trade
channels turned limited. Latin America witnessed slower growth trends, particularly
in Brazil, where investment remained weak and GDP contracted in the first half of
2014. Weaker activity in Russia on account of sizable decline in investment and large
Capital outflows, following tensions in Ukraine, also caused spillovers from the
Russian slowdown to other countries. Euro area continued to confront with stagnant
growth contract on in Italy, no growth in France, and unexpected weakness in
Germany in the second quarter. Weaker-than expected GDP expansion, forced Japan
to introduce substantial quantitative easing (QE) measures, to avert ill Effects of
disinflation. Amidst lower activity during the initial period, China implemented
measures to buttress activity to support faster growth in the second quarter. Inflation
generally remains below central bank policy targets in advanced economies, an
indication that many of these economies have substantial output gaps. In the euro
area, inflation remained below expectations and declined further.
Inflation in the United States has risen modestly, but still remains below the Federal
Reserves longer-term objective of 2 percent. End of QE by US is expected to raise
asset values and increase the interest rate in the international financial markets.
Overall, the unfavorable effects of the financial crisis are waning out and, mainly
United States, China and India are expected to show some improvement in 20142015, despite challenges emanating out of imperatives of controlling spread of Ebola
crises and disturbances in Middle East. IMF expects world economy to grow by 3.3
percent in 2014 and 3.8 percent in 2015. Major neighboring economies, India and
China are expected to grow by 5.6 percent and 7.4 percent respectively in 2014.

2.02.C History Of Nepal SBI

The origin of the State Bank of India goes back to the first decade of the nineteenth
century with the establishment of the Bank of Calcutta in Calcutta on 2 June 1806.
Three years later the bank received its charter and was re-designed as the Bank of
Bengal (2 January 1809). A unique institution, it was the first joint-stock bank of
British India sponsored by the Government of Bengal. The Bank of Bombay (15 April
1840) and the Bank of Madras (1 July 1843) followed the Bank of
31

Bengal. These three banks remained at the apex of modern banking in India till their
amalgamation as the Imperial Bank of India on 27 January 1921.
Nepal SBI Bank Ltd.(NEPAL SBI BANK) is a subsidiary of State Bank of India
(SBI) having 55 percent of ownership. The local partner viz. Employee Provident
Fund holds 15% equity and General Public 30%. In terms of the Technical Services
Agreement between SBI and the NEPAL SBI BANK, the former provides
management support to the bank through its expatriate officers including Managing
Director who is also the CEO of the Bank. Central Management Committee
(CENMAC), consisting of the Managing Director & CEO, Chief Operating Officer &
Dy. CEO, Chief Financial Officer, Chief Risk Officer and Chief Credit Officer,
exercises overall control functions with the help of 3 Regional Offices, and oversee
the
overall
operations
of
the
Bank.
NEPAL SBI BANK was established in July 1993 and has emerged as one of the
leading banks of Nepal, with 596 skilled and dedicated Nepalese employees working
in 56 branches, 6 extension counters, 3 Regional Offices and Corporate Office. With
presence in 31 districts in Nepal, the Bank is providing value added services to its
customers through its wide network of 78 ATMs, internet banking, mobile wallet,
SMS banking, IRCTC Ticket Online Booking facility, etc. NEPAL SBI BANK is one
of the fastest growing Commercial Banks of Nepal with more than 5.5 lakhs satisfied
deposit customers and over 4.62 lakhs ATM/Debit cardholders. The Bank enjoys
leading position in the country in terms of penetration of technology products, viz.
Mobile Banking, Internet Banking and Card Services. The Bank is moving ahead in
the Nepalese Banking Industry with significant growth in Net Profit with very
nominal NPA. As of 31st March 2015, the Bank has deposits of Rs. 55.26 billion and
advances (net) of Rs. 39.59 billion, besides investment portfolio of Rs. 10.49 billion.

32

2.02.D Business Partner

State bank of India

Nepal SBI Bank Ltd.(NEPAL SBI BANK) is a subsidiary of State Bank of India
(SBI) having 55 percent of ownership. The local partner viz. Employee Provident
Fund holds 15% equity and General Public 30%. In terms of the Technical Services
Agreement between SBI and the NEPAL SBI BANK, the former provides
management support to the bank through its expatriate officers including Managing
Director who is also the CEO of the Bank. Central Management Committee
(CENMAC), consisting of the Managing Director & CEO, Chief Operating Officer &
Dy. CEO, Chief Financial Officer, Chief Risk Officer and Chief Credit Officer,
exercises overall control functions with the help of 3 Regional Offices, and oversee
the
overall
operations
of
the
Bank.

Nepal SBI partially sponsored a weeklong program on the ocassion of Olympic Day
2010 and 2011 organized by Nepal Olympic Committee in Dharan and Bhairahawa,
respectively.

We, in partnership with UNFPA Nepal, organized a walkathon program in

Kathmandu. The program was followed by a blood donation program and an
exhibition of various NGO working in the field of social awareness with especial
focus on women and youth.

33

2.02.E Supporting Communities

Nepal SBI Bank regards Corporate Social Responsibility (CSR) as an investment in

society and its own future. As a responsible corporate citizen, Corporate Social
Responsibility is an integral part of the way we do business. Our foremost social
responsibility is to be competitive nationally and internationally, to earn profits and to
grow as a company. We believe in giving back to the society by taking initiatives
with the intent to positively affect our stake holders, which include our customers,
sponsors, partners, employees, as well as our communities.
Even in difficult economic conditions, we have shown an unwavering commitment to
our role as a corporate citizen. That is why we once again invested in CSR relatedprograms and projects within our three areas of activity: Social Service, Education
and Sports, and Conservation of natural environment.
Social Service
Nepal SBI Bank has always tried to lend a helping hand to those who are less
fortunate and in need of assistance. The Bank actively works with and/or supports
various charities that work for the welfare of the society.
Education and Sports
In order to fulfill our CSR objectives, we attempt to promote public interest by
encouraging community growth and development through sponsoring sporting events
and supporting educational activities.
Environment Conservation
The Bank believes in the cause of a better environment and continually sponsors tree
plantations, flower festivals as well as other beautification projects for a greener and
cleaner
Country.

34

2.02.F Mission and Vision

To be a state of the art, customer centric, values driven and professionally managed
bank; committed to high standards of good corporate governance practices; perpetual
enhancement of the wealth of all stakeholders and the society.
Over the years, we have grown larger and stronger - in terms of business, geography
and resources. This has been achieved by relying on the fundamentals of customer
service of top order. Our achievements have come through quality, consistency and
transparency of capital base, sound liquidity, a robust risk management framework
coupled with the practice of good corporate governance and above all, the tireless
focus
on
customer
satisfaction.
The Banks mission is to provide one stop solution to all the banking needs for the
customer through a highly motivated professional and efficient human resource pool.
Promoting sustainable business growth by providing High quality customer service,
customer care and ensuring efficient use of Information Technology in a cost efficient
manner. Meeting the expectations of all stakeholders through transparent, true and fair
disclosures and responsive management, practices/principles. Strive to fulfill
corporate social responsibility in Nepal with emphasis to growth in business.

2.02.G products & services

DEPOSIT

LOANS

CARDS

DIFFERENT
CREDIT CARDS

Savings
Account

Home
Loans

Consumer
Cards

NEPAL SBI
BANK
International
cards

Life
Plus
Senior
Citizens
Savings
Account

Loan
Against
Property

Credit Card

NEPAL SBI
BANK Gold
cards

Fixed
Deposits

Personal
Loans

Travel Card

NEPAL SBI
BANK Gold
Master cards

Security
Deposits

Car Loan

Debit Cards

Your
City
Your Cards

35

Recurring
Deposits

Loans
against
Securities

Commercial
Cards

Tax-Saver
Fixed
Deposit

Two
Wheeler

Corporate
Cards

Salary
Account

Preapproved
Loans

Prepaid Card

Advantage
Woman
Savings
Account

Retail
Asset

Purchase
Card

Rural
Savings
Account

Farmer
Finance

Distribution
Cards

People's
Savings
Account

Business
Installmen
t
Loans

Business
Card

Freedom
Savings
Account

Flexi
Cash

Merchant
Services

Partnership
Cards

NEPAL SBI
BANK
Employee
Cards

NEPAL SBI
BANK
Advantage
Cards

PRODUCT AND SERVICES

Normal Savings Account
This scheme is designed to facilitate easy and regular deposit of funds as and when
required at zero balance. The account becomes eligible for earning interest income
when balance in the account reaches a threshold minimum balance.
SARAL BACHAT KHATA
The product with low minimum balance requirement is a popular deposit scheme
having customer base of 2.89 lacs. This scheme is targeted towards mid to low
income group of people.
INDRENI BACHAT KHATA
Under this scheme, customer gets the benefits of higher interest rate for maintaining
higher balance in the account. The scheme offers free internet banking,
any branch banking, concession on remittance facilities etc.

36

VISHESH BACHAT
Vishesh Bachat Scheme is offered with attractive interest rate and high balance
requirement targeted at High Net worth Individuals. The scheme offers bundle
of additional benefits like free internet banking, Visa debit card, any branch banking,
concession on remittance facilities and locker rental charge etc.
VARISTHA NAGARIK BACHAT
Individuals of 50 years and above are eligible to open account this scheme.
Customers are provided with added benefits like free any branch banking service,
Visa debit card, discount on locker rental charge and at the same time higher rate of
interest. Customers who open Fixed Deposit under Varistha Nagarik Scheme are paid
interest at monthly interval.
KARMACHARI BACHAT KHATA
This product is aimed at salaried employees from government and non-government
organizations including security personnel. Under the scheme, salaried employees
can open savings account with us and enjoy concessional benefits on various
services.
NEPAL ARMY, NEPAL POLICE AND ARMED POLICE FORCE SCHEME
This account is designed for serving personnel of Nepal Army, Nepal Police or Armed
Police Force. It has features like; Free Visa Debit Card, free ABBS, free stop payment
of cheques, free registration of Standing Instructions etc.
STUDENTS SAVINGS ACCOUNT
This scheme has been introduced with an objective to inculcate saving habits in the
students. Under this scheme any student can open savings account with zero
minimum balance.
SHAREHOLDERS ACCOUNT
Shareholders of our Bank are eligible to open account under this scheme. The
account does not have minimum balance requirement. Dividends paid by the
Bank can be credited to the account directly.
Apart from the savings schemes, the Bank offers Business Current Account and
Personal Current Account. Term deposits facilities like Recurring Deposit and Fixed
Deposit offer competitive interest rate. Provident fund account facility for
permanent staff of organizations is also available wherein the interest rate
is higher compared to savings account. Call deposit account facility is available with
attractive interest rates and unlimited withdrawal facility.

37

LOANS AND ADVANCES

To cater to the credit requirements of our large and diversified clientele base, we have
wide range of loan products. Working capital loan, term loan, personal loan, mortgage
loan, trade finance solutions etc. are available to fulfill the varied needs of the
customers. Some of our key loan products are:
CORPORATE AND BUSINESS LOANS
The Bank offers loans to large corporate and institutional customers including public
sector entities to meet funding requirements ranging from service related to strategic
expansions, project finance etc.

SME CONVENIENT LOAN

Small & medium Enterprises (SME) is vital to the economic growth of the country.
The sector not only generates employment but also stands auxiliary to big
industrial/corporate projects.SME Convenient loan is a customized loan product
designed to meet the financing needs of manufacturing, trading, business enterprise
and self-employed professionals in Small and Medium Enterprise (SME) sector.
MORTGAGE AND MORTGAGE PLUS
These products offer personal credit on easy terms to individuals on the basis of their
income level and value of mortgaged property. Simplified loan processes and quick
turn-around time ensures smooth delivery to the customer.
OTHER RETAIL LOANS
Other retail loans largely comprise of auto finance, home loan, education loan, credit
for consumer durables, loan for retired Nepalese pensioners of Indian Armed Forces
etc. Besides these, the Bank also provides Trust Receipt loans, Pre-shipment and Postshipment credit and non-fund based facilities like Letter of Credit and Bank
Guarantees.
REMITTANCE
The Bank offers easy, convenient and safe international and domestic money transfer
facilities. We have wide reach in the country through our extensive branch network
and more than 3500 instant payout location of Prabhu Money Transfer(our remittance
partner), which ensure delivery of remittance proceeds to beneficiary in quick time
and hassle-free manner. Some remittance products are:
SBI NEPAL EXPRESS REMIT
Remittance through Electronic Fund Transfer (EFT) mechanism provides money
transfer facility at minimal cost to Nepali migrant population residing and working in
India. Remittance can be originated through more than 17,500 branches of State Bank
of India located in various parts of India. We receive more than 450 remittances on an
average per working day.

38

INDO-NEPAL REMIT
The product was introduced by Reserve Bank of India in consultation with Nepal
Rastra Bank on Electronic Fund Transfer (EFT) platform for smooth and speedy
remittance from India to Nepal. Remittance can be originated through more than
117,000 NEFT enabled branches of various Banks in India.
NEPAL SBI REMIT
This is an online inward international remittance service which offers a formal
channel for Nepali community residing abroad to send money to Nepal.
SBI EXPRESS REMIT GULF-NEPAL (GLS)
A new remittance scheme has been introduced for providing easy, convenient and
safe international money transfer service from Exchange Houses in gulf countries to
our customers account on Straight Through Process(STP) enabled model.
RTGS
Real Time Gross Settlement is a product from which customers can send Remittance
to India at a real time in more than 75,000 branches of 106 banks in India.
DOMESTIC REMITTANCE SERVICE
Bank started domestic remittance service in partnership with Prabhu Money Transfer.
This product allows customers to send and receive money to and from any part within
the country.
CARD
NEPAL SBI CARD
This is ATM cum Debit card which can be used for cash withdrawal as well as for
merchandise payments at more than 6,00,000 merchant outlets in Nepal and India.
Presently, there are over 4.18 lakhs users of Nepal SBI Card.
BHARAT YATRA CARD
Popularly known as BYC, this is a Nepalese Rupees denominated pre-paid card suited
for Nepalese population visiting India for medical treatment, education, tours etc. The
card can be used for cash withdrawal at all Sate Bank ATMs and VISA enabled
ATMs in India. BYC was launched in November 2008 and is able to attract
substantial number of customers.
VISHWAYATRA CARD
Vishwa Yatra Card, a CHIP based EMV compliant card, is a USD denominated
international prepaid card which the customers can use for cash withdrawal in all the
ATM terminals under VISA network in any part of the world (except Nepal
and India) and also for merchandise payments. It provides safety, security and
convenience to overseas travelers.

39

ALTERNATIVE DELIVERY CHANNELS

MOBILE WALLET
NEPAL SBI BANK is the first leading Bank in the country to have received NRBs
approval for Mobile Wallet service. It is premium mobile banking service that can be
operated through mobile phone. The service will be instrumental not only in bringing
previously unbanked population into the formal banking channel but also to add
Convenience to serving existing customers. Nepal SBI Bank is among a few
commercial banks in Nepal which have come out with a complete range of services to
Mobile Banking and Mobile Wallet System.
40

MOBILE SAKHA
Mobile Sakha is mobile based banking service delivery channel which allows
customers access to various banking services like fund transfer, balance enquiry, bill
payments, statement request, alert services etc.
INTERNET BANKING
Internet Banking is available through www.nepalsbi.com.np for both retail and
corporate customer of the Bank. This online banking channel provides access to
banking services 24x7 from anywhere. Fund transfer, utility bill payments,
Ticket booking etc. are available on the internet banking platform.
IRCTC TICKET ONLINE BOOKING UTILITY
This product was launched in February 2014 with a view to facilitate hassle-free
booking of tickets of Indian Railways. NEPAL SBI BANK is the first and the only
Bank outside India to offer this facility. With this utility, NEPAL SBI BANK Internet
Banking users can book tickets through IRCTCs Online Passenger Reservation
System and can make payment through Nepal SBI Internet Banking.
AUTOMATED TELLER MACHINE
Nepal SBI Bank has one of the largest network of ATM terminals. Presently, the bank
has 75 ATM terminals around the country. Our ATMs can also be used by holders of
various International Cards.
AUXILIARY SERVICES
SAFE DEPOSIT LOCKER SERVICES
Customers can deposit their valuable items in their safe deposit lockers. This service
is available at 41 branches of Nepal SBI Bank Ltd.
UTILITY BILL PAYMENT
Customersboth accountholders and no accountholdersof the bank can pay their
telephone bills, at the banks branches free of charge.
FEES AND PREMIA COLLECTION
Customers of the bank can pay their insurance premia, school and college fees at the
banks branches, of the organizations having agreement with us, free of charge.

41

2.03 CHAPTER TWO

2.03.A Board Of Directors

Mrs. Hasana Sharma

Chairperson

Mr. Giridhara Kini

Mr. R karthikeyan

Director

Director

Representing State bank of India

Representing state bank of India

Mr Manoj Kumar Agrawal

Mr. Nirajan Tibrewala

Mr. Gokul Ram Thapa

Director

Director

Director

Representing Public
Shareholder

Representing Public
shareholder

Professional expert
Director

Mr. Alok Kumar Sharma

Managing Director (CEO)
Represting State Bank Of India

42

2.03.B Organizational Structure

43

2.03. C Workflow for Information system in NEPAL SBI BANK

44

2.03.D COMPETITORS

Competitors and other players in the field:Top Performing Private Sector Banks

Himalayan Bank Ltd

Nepal Investment Bank

Nabil Bank

Rastriya Banijya Bank

Nepal Bank ltd.

Top Performing Foreign Banks

Nepal SBI Bank

Everest Bank

Bank of Asia

Standard chattered Bank

2.03.E BCG MATRIX

Business growth rate
STARS

NEPAL
LTD

QUSESTION MARK
SBI

BANK

SIDDHARTHA BANK

CENTURY BANK

NABIL BANK LTD

CASH COWS

RASTRYA
BANK

DOGS
BANIJYA

HIMALAYAN
LTD

BANK

45

PRABHU BANK

MACHAPUCHRE
BANK

Relative
position
(Market
share)

203.F SWOT Analysis

Strength

Nepal SBI Bank has vast network system in the nation and India thus helping
customer to transact through bank from place to place. It has 42 branches
nation wide to help the customers.

Nepal SBI Bank is well known for providing highly personalized service like
ATM, ebanking, credit card, safe deposit locker etc. It has also introduced a
number of new product and services.

Human resources of Nepal SBI Bank are well trained and are dedicated toward
its bank. It is providing high remuneration and other benefit to its staff

Nepal SBI Bank is equipped with latest technology, computer does most of the
banking services. Thus the services of the bank are prompt and accurate.

Nepal SBI Bank has high profit and revenue

It is one of the top 10 bank in Nepal

Weakness

The increase of the branches increases the operation cost, administration

expenses, salary etc.

The political instability is another weakness that the bank is suffering.

Too much dependency in computer is not considered to be reliable.

Staffs are unwilling to give even required information. They dont want to
cooperate with the ones who are not its real customer.

Due to uncertain political stability tax structure may be effected.

Its has neck to neck competition with Himalayan bank ltd and Nepal
Bangladesh bank.

46

Opportunity

Many people deposit their funds in this bank due to its skill in attracting
people by adapting and attracting policies like interest rate, prompt services,
ATM, credit card services etc.

Staff can perform their work more efficiently with the computers. The
environment of the bank is sound which enhance its better performance.

People get employment opportunities since it has the highest number of

branches in the country.

The policies of HMG & NRB rules & regulation always give confidence to the
banking sectors to uplift the economy of the nation.

Many Indian National and even the citizen who have associate with india
preffer Nepal SBI.

Threats

Competitors are increasing.

The economic condition of the country is very poor.

Excess government pressure may create irregular banking transaction, which

leads to bad reputation of the bank.

The bank should be discouraged to open account for the individuals or firm
having bad name as well as illegal names which effects to society. It may be
threat, which can ruin the bank.

47

2.03.G PORTERS FIVE FORCE THEORY NEPAL SBI

1. Threat of competitors:

Nabil Bank

Standard Chattered bank

Himalayan bank ltd

Nepal Investment bank

Nepal Bangladesh bank

2.Threat of new entrance:

There have been many new entrance in industry like Global IME, Civil bank
and Centure bank.

3.Threat of subsidies:

Investors as a subsidies has always an option of investing into capital market

rather than depositing in the bank.

4.Buying power of the suppliers:

Changing policies and guideline of Nepal Rastra bank (central bank of Nepal).

Uncertain political status of the country makes the fluctuation in the bank.

5.Buying power of the customers:

Changing scenarios, increasing and decreasing disposable incomes, other

attractive option available to customers.

48

2.04 CHAPTER THREE

2.04.A Financial Highlight

TOTAL INCOME (IN BILLION)

Series 1
3.5
2.9

3
2.5

2.2

2
1.5

1.42

1.5

1.11

1
0.5
0
2066-2067

2067-2068

2068-2069

2069-2070

2070-2071

NET INTEREST INCOME

The bank earned a net interest income of Rs.174.50 crores in the FY 2070-71 as
against Rs.162.35 crores during the previous year. This shows a growth of 7.48%.

NON INTEREST INCOME

Non-interest income stood at Rs.64.55 crores in 2070-71 as against Rs. 57.34 crores
in 2069-70 registering an increase of 12.57%.

49

PROFIT
The Operating Profit of the Bank for 2070-71 stood at Rs. 135.85 crores as compared
to Rs. 117.51 crores in 2069-70 registering an increment of 15.61%. The Bank posted
Net Profi t of Rs. 92.29 crores for 2070-71 as compared to Rs. 77.15 crores in 206970 registering a growth of 19.62%

OPER ATING PR OFIT BEFOR E

PR OVISIONING (R S. IN MILLION)
Series 1

Column1

Column2

1600

1441.65

1400

1303

1200
1000
800

632.4

751.6

720.56

600
400
200
0
2066-2067

2067-2068

2068-2069

2069-2070

2070-2071

Net Profi t (Rs. in Million)

1000

922.98

900
771.47

800
700
600

500
400

480.11

464.56
391.74

300
200
100
0

2066-2067

2067-2068
Series 1

2068-2069
Column1

50

2069-2070
Column2

2070-2071

2.04.B Five years Financial Highlight

FIVE
Ashadh End
Protability
(Key Indicators)
Interest
Income
Interest
Expenditure
Fee,
Commission
and Exchange
income
Other
Operating
Income
Staff Expenses
Other
Operating
Expenses
Provision for
possible losses
Operating
Profit
Profit Before
Tax
Profit After Tax
Total
Capital
and Liabilities
Share Capital
Reserves
Liabilities
Deposits
Debenture
Bills Payable
Proposed
Dividend
Other Liabilities
Total Assets
Advances (Net)
Investments
Liquid Assets
Net
Fixed
Assets
Other Assets

YEARS
F/Y -09/10
2066/67

FINANCIAL
F/Y -10/11
2067/68

HIGHLIGHTS
FY 11/12
2068/69

FY 12/13
2069/70

NPRs.
in
Lacs
FY 13/14
2070/71

22,697.04

30,999.08

37,694.83

41,105.14

39,766.48

14,436.94

20,960.38

27,707.99

24,869.79

22,316.04

2,020.20

3,066.92

3564.90

4,156.12

4,282.32

787.97
1,303.37

951.73
2,554.30

1,417.62
2,891.53

1,577.56
4,165.60

2,172.67
4,430.78

3,438.50

4,297.43

4,561.26

4,772.47

5060.29

623.51

463.08

780.12

1,280.41

829.67

5,702.90

6,742.52

6,736.45

11,750.55

13,584.70

5,383.62
3,917.42

6,534.69
4,645.65

6,866.54
4,801.05

11,099.59
7,714.71

13,119.45
9,229.84

380,476.79
18,613.24
5,892.30
-348,964.24
2,000.00
723.68

460,882.33
21,029.66
7,763.27
424,154.43
2,000.00
806.85

580,597.07
23,557.39
8,417.20
533,372.64
6,000.00
786.16

647,961.53
26,502.06
11,487.52
591,257.29
8,000.00
1,653.55

610,829.72
3,0490.83
14,867.15
544,929.94
10,000.00
1,563.67

830.80
3,452.53
380,476.79
174,805.48
163,056.33
34,412.61

934.65
4,193.47
460,882.33
213,657.71
189,110.21
48,778.26

1,046.99
7,416.69
580,597.07
261,420.94
244,634.52
56,866.32

1,766.80
7,294.31
647,961.53
287,881.47
259,061.20
78,523.29

1,861.43
7,116.70
610,829.72
352,795.83
177,223.96
66,549.71

4,182.45
4,019.92

4,170.02
5,166.13

7,159.20
10,516.09

6,615.89
15,879.68

6,074.46
8,185.76

51

2.04. C Balance Sheet

BALANCE SHEET AS ON 32 ASHAD 2071 / 16 JULY 2014

CAPITAL & LIABILITIES

SCHEDULE

This Year Rs.

Previous Year Rs.

1. Share Capital

3,049,083,104

2,650,205,804

2. Reserves and Funds

1,486,715,566

1,148,751,613

3. Debentures & Bonds

1,000,000,000

800,000,000

4. Borrowings

5. Deposits

54,492,993,606

59,125,729,453

6. Bills Payable

156,366,610

165,354,686

7. Proposed Dividend

186,142,754

176,680,388

8. Income Tax Liabilities

711,670,715

729,430,878

61,082,972,355

64,796,152,822

9. Other Liabilities

Total Capital and Liabilities

ASSETS

SCHEDULE

This year Rs

Previous Year Rs.

1. Cash Balance

1,527,028,783

1,239,453,119

3,890,989,164

4,957,064,493

3.
Balance
with
Banks/Financial Institution
10

1,236,953,173

1,516,885,723

4. Money at Call and Short

Notice
11

138,925,434

5. Investment

12

17,722,395,654

25,906,119,814

6. Loans, Advances and Bills

Purchase
13

35,279,583,339

28,788,146,625

7. Fixed Assets

14

607,446,572

661,589,203

8. Non Banking Assets

15

9. Other Assets

16

818,575,670

1,587,968,411

61,082,972,355

64,796,152,822

2. Balance
Rastra Bank

Total Assets

with

Nepal

52

2.04. D Profit and Loss A/c

PROFIT AND LOSS ACCOUNT
FOR THE PERIOD FROM 1 SHRAWAN 2070 TO 32 ASHAD 2071 16 JULY
2013 TO 16 JULY 2014
Particulars
1. Interest Income
2. Interest Expenses
Net Interest Income
3. Commission and Discount
4. Other Operating Incomes
5. Exchange
Fluctation
Income
Total Operating Income
6. Staff
Expenses
7. Other Operating Expenses
8. Exchange Fluctuation Loss

Operating Profit
9. Provision for Possible
Losses
Operating Profit
10. Non-Operating Income
/(Expense)
11. Provision for Possible
Loss Written Back
Prot
from
Regular
Operations
12. Profit/(Loss) from extraordinary Activities
Net prot after considering
all activities
13. Provision for Staff Bonus
14. Provision for Income Tax

This Year Rs.

3,976,647,583
2,231,604,253
1,745,043,330
320,425,412
217,267,151

Previous Year
Rs.
4,110,514,126
2,486,978,979
1,623,535,147
313,696,555
157,755,684

107,806,967
2,390,542,860
443,077,803
506,028,826
-

101,915,128
2,196,902,514
416,560,412
477,246,891
-

1,441,436,231

1,303,095,211

25

82,966,699
1,358,469,532

128,040,596
1,175,054,615

26

8,728,276

(287,286)

27

71,810,082

43,861,090

1,439,007,890

1,218,628,419

4,131,237

2,326,357

1,443,139,127
131,194,466
388,960,654

1,220,954,776
110,995,889
338,487,758

406,083,233

363,530,553

565,456

(17,122,579)
922,984,007

(25,608,251)
771,471,129

Schedule
18
19
20
21
22
23
24
22
before
provision
for
Possible
loss

28

* Current
Years
*
Previous
Years
Deffered (Income)/
Tax
Expenses
Net Pro t/(Loss)

53

2.04.E Cash Flow Statement

CASH FLOW STATEMENT

FOR THE PERIOD OF 1 SHRAWAN 2070 TO 31 ASHAD 2071/16 JULY 2013 TO
16 JULY 2014

Particulars
(a) Cash Flow from Operating Activities
1. Cash Received
1.1 Interest Income
1.2 Commission and Discount Income
1.3 Income from Foreign Exchange
transaction
1.4 Recovery of loan written off
1.5 Other Incomes
2. Cash Payment
2.1 Interest Expenses
2.2 Staff Expenses
2.3 Office Operating Expenses
2.4 Income Tax Paid
2.5 Other Expenses
Cash Flow before changes in Working Capital
(Increase) /Decrease of Current Assets
1. (Increase)/Decrease in Money at Call and
Short Notice
2. (Increase)/Decrease in short term
Investment
3. (Increase)/Decrease in Loans, Advances
and Bills Purchase
4. (Increase)/Decrease in Other Assets
Increase /(Decrease) of Current Liabilities
1. Increase/(Decrease) in Deposits
2. Increase/(Decrease) in Certificates of
Deposits
3. Increase/(Decrease) in Short Term
Borrowings
4. Increase/(Decrease) in Other Liabilities
(b) Cash Flow from Investment Activities
1.
(Increase)/Decrease
in
Long-Term
Investment
2. (Increase)/Decrease in Fixed Assets
3. Interest income from Long Term
Investment
4. Dividend Income

54

This Year
(1,207,953,976)
5,574,509,043
4,854,337,254
320,425,412

Previous Year
2,060,734,242
4,087,296,346
3,516,708,507
313,696,555

103,092,746
649,465
296,004,166
3,648,076,504
2,206,380,761
402,263,543
398,222,896
427,048,139
214,161,165
1,926,432,539
1,760,144,207

101,915,128
2,326,357
152,649,799
3,671,509,128
2,470,114,436
330,010,367
366,114,793
396,600,000
108,669,532
415,787,218
(4,016,612,361)

138,925,434

39,324,566

8,195,303,103

(1,430,828,398)

(6,492,295,942)
(81,788,388)
(4,894,530,722)
(4,632,735,847)

(2,730,231,958)
105,123,429
5,661,559,385
5,583,191,463

(261,794,875)
(55,192,460)

78,367,922
(60,247,554)

(60,943,179)

(58,173,262)

3,328,073

(2,074,292)

5. Others
(c) Cash Flow from Financing Activities
1. Increase/(Decrease) in Long Term
Borrowings (Bonds,Debentures etc)
2.increase/(Decrease in Share Capital
3. Increase/(Decrease) in Other Liabilities
4. Increase/(Decrease) in Facilities /
Refinance received from NRB
(d) Income/Expenses from change in
exchange rate in Cash & bank balances
(e) Current Years Cash Flow from All
Activities
(f) Opening Balance of Cash and Bank
Balances
(g) Closing Balance of Cash and Bank
Balances

2,422,646
200,000,000

200,000,000

200,000,000
-

200,000,000
-

4,714,221

4,534,151

(1,058,432,215)

2,205,020,839

7,713,403,335

5,508,382,496

6,654,971,120

7,713,403,335

2.04.F NEPAL SBI STRATEGIES FOR THE CURRENT YEAR

Nepal SBI Bank has a network of 62 banking outlets, 607 employees and one of the
richest basket full of alternative delivery channels: Automated Teller Machines, SMS
Banking, Mobile Wallet, Internet Banking and now IRCTC Ticket Online Booking
Utility. The Bank has successfully tested and is in the process of introducing Global
Link Services (GLS) utility for remittance business, enabling linkages with all the
branches of SBI outside India and exchange houses, remittance companies having
arrangements with SBI group. Your bank proposes to approach the new businesses
with more tech savvy product ranges and integrated solutions to ensure hassle free,
high quality customer service.

Emphasis on stable and long term low-cost deposits

Expansion of retail advances to improve efficiency parameters and the market
share
Maintaining asset quality of high standard
Developing new products and improving delivery channels
Restructuring business processes in the techno driven environment
Further strengthening the sophisticated risk management systems
Ensuring high quality of customer service and adopting best corporate
governance practices
Would continue to remain guiding factors and strategy for your bank.

55

2.04.G BUSINESS PERFORMANCE: 2013-14

Nepal SBI Bank achieved a growth of 20.05 percentage in Domestic currency

deposits in the fiscal year.
The bank registered a gross growth of 22.33 percentage (excluding
provisioning), which was better than the industry growth rates.
The Bank continues to maintain its premier position in the country, as one of
the most efficient and financially robust Banks.
Your Bank posted a higher operating profit (before loan loss provisions) of Rs.
1441.44 million, as compared to Rs.1303.09 million in previous year and
achieved qualitative improvement in asset quality.
The gross NPA and net NPA levels at 0.26 percent and 0.04 percent
respectively are amongst the best indicators in the country.
The number of total deposit accounts registered reached to a level of 515,752
showing an increase of 12.36 percent over the previous year.
The borrowable accounts (net) increased by 1,259 reaching a level of 16,071
as at the end of the year.
The Bank maintained a strong capital base and significantly expanded
clientele base of deposits and advances.
Greater oversight and improvement in risk based supervision techniques and
structures helped your bank achieving higher trust and confidence of
stakeholders.
Nepal SBI Bank opened an extension counter at Pashupati Area for offering
quality customer service at the world heritage premises.

56

2.05 CHAPTER FOUR

2.05.A role of customer service
The activities performed by the intern in the CSD of the Nepal SBI, Jawlakhel branch
are all the activities the CSD officer there performs. The activities done are:
Customer Counseling
Customer counseling is most important functions of customer service department. The
efficiency of the customer service department or an organization is the outcome of the
quality of the customer counseling that it provides. There are various kinds
of products and services available in this organization. This department is alsorespons
ible for providing detail information regarding these different products and services.
Staffs in CSD should have information about the various products of the bank and
should have good communicating skills as to answer the queries of the customers
correctly, precisely and politely.
Account Opening
One of the major tasks performed in CSD desk is account opening. NEPAL SBI
BANK provides various schemes to attract customer to open the account to collect
deposits. To open a new account the form should be filled up and all the required
documents must be attached. With the form, deposit slip should be filled according to
the nature of the account. Applicants are provided with free ATM card, SMS
Banking, E-Banking facility along with the account opening form to those who needs
it.

Account Closing
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.

During the internship period, the CSD officer recognized that customer here came to
close their Bharat Yatra Account and open the simple saving account because of
additional charges in operating. To close the account, a customer has to fill up the
form and return the check book and ATM/ Bharat Yatra card. They have to mention
the reason for closure of the account. NEPAL SBI BANK charges certain closing
charge while closing the account.

57

Preparing and Issuing Check Book

In NEPAL SBI BANK, CSD officer is placed in preparing the check book, make
entry
in
the
check book register and provide the check book to the customer as per their request. N
ewcheck is issued only by verifying the signature of the account holder. The check
book is provided to the existing customers by verifying the signature in check
requisition slip with the signature in the check book register. NEPAL SBI BANK
provides 5 leaves check book for new account holder and after first issuance number
of leaves on check look are provided as per the demand of customers.

Distribution of ATM Card

In NEPAL SBI BANK, the CSD keeps the record of new ATM and pin in the register,
file the information slip and arrange ATM and Pin No in vault. ATM with Pin No. is
only provided to the account holders by verifying original signature of the applicant.
Customers are informed through phone calls to collect their ATM and Pin No.

Distribution of E-Banking (Username and password)

Internet banking facility of NEPAL SBI BANK is free of cost service provided to all
the a/c holders, where we can enjoy checking our balances, transferring money to our
friend/family or block some stopped check, view and print statement, etc

Handling Incoming Calls

Being the customer oriented department CSD handles numerous phone calls and
interns also play a crucial role in handling phone calls and solve the queries of the
customers.

Filling up the KYC Form and Follow Up

Know Your Customer (KYC) is detail information about the Customer. KYC is the
fundamental principles used in identifying who the customers are, their background
information and monitoring their transactions in order to mitigate the banking risk
arising out of these Customers. This KYC guideline is recently issued by NRB to
categorize the customer as high risk, medium risk and low risk customer. The CSD
Officer is responsible for filling up the KYC form to identify the customer. Apart
from it, existing customers are also informed and requested to fill up their respective
KYC form as an important update of their details.

58

Making Entries in Respective Register

The CSD officer maintains the register and makes the every entry of all documents in
their respective register. The entry of demand draft, TT, RTGS, SWIFT, BYC, EBanking, ATM etc are done by CSD officer after the office hour is over.

2.05.B Summary of Internship period

Knowledge is different while put through practice and its a totally different
environment at work. But the learning we had in the classes been certainly fruitful to
derive the necessary solutions for the problems at work. The management lessons we
had been learning may take a little higher level to utilize but we could sense
its presence at every moment of work. The gap between the theory and practice is
always there and we felt the very same difference while at work.
Throughout the internship period I gained what are are procedure that a bank operates
in day to day basis. I even got to know locker facilities of bank, how a bank starts by
opening the vault and ends by closing the vault, it also has taught how the business
transaction, personal transaction of Nepal and India take place.

59

2.06 CHAPTER FIVE

2.06.A Research Methodology
Research methodology is a methodology for collecting all sorts of information & data
pertaining to the subject in question. The objective is to examine all the issues
involved & conduct situational analysis. The methodology includes the overall
research design, sampling procedure & fieldwork done & finally the analysis
procedure. The methodology used in the study consistent of sample survey using both
primary & secondary data. The primary data has been collected with the help of
questionnaire as well as personal observation book, magazine; journals have been
referred for secondary data. The questionnaire has been drafted & presented by the
researcher himself.
Sample Size:
Sample of 100 people was taken into study, and their data was collected
Sampling Technique:
To study the Project, a Simple Random Sampling technique is used.
Data Collection:
Collection of data is done by Secondary Data & through
Questionnaire
i.e., Primary data was collected through Questionnaire.
Data Analysis:
After data collection, Im able to analyze customers views, ideas and opinions related
to Advance Product and about SBI Advance Product and from this, SBI will come to
know the customer requirements.
Data Interpretation:
Interpretation of data is done by using statistical tools like Pie diagrams, Bar graphs,
and also using quantitative techniques (by using these techniques) accurate
information is obtained.
Classification & tabulation of data:
The data thus collected were classified according to the categories, counting sheets &
the summary tables were prepared. The resultant tables were one dimensional, two
dimensional.
Statistical tools used for analysis:
Out of the total respondents, the respondents who responded logically were taken into
account while going into statistical details & analysis of data. The tools that have been
used for analyzing data & inference drawing are mainly statistical tools like

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percentage, ranking, averages, etc.

As per questionnaire and market surveys I have find out different responses from
different people. According to their responses I analyze the findings and draw certain
remarks.

2.06. B ANALYSIS OF DATA

GRAPHICAL REPRESENTATION OF DATA

1. On which bank you depend for your regular transaction?

Name Of bank
Nepal SBI Bank

Percentage (%)
37%

Nabil Bank

15%

Himalayan Bank

13%

Global IME

5%

Others

30%

total

100

% OF CUSTOMER RESPONSES%

30
37

nepal sbi
nabil bank

himalayan bank
global ime

13

15

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others

2. What is the attractive Features of Nepal SBI?

Features

Percentage (%)

India Remit

62%

Locker Facility

5%

Interest rate

16%

e-banking/ mobile banking

10%

Others

7%

total

100

% OF CUSTOMER RESPONSES%

10%

7%
India Remit

16%

Locker Facility
62%

5%

Interest rate
e-banking/ mobile banking
others

62

3. What different Feature would you wish to have in Nepal SBI?

Features

Percentage (%)

Merchant Baking

30%

CSR activity

15%

Online internet transaction

20%

No I am happy with what 15%

they are offering
20%

others

% OF CUSTOMER RESPONSES%

20
30

merchant banking
CSR activity

online internet transaction

15

no I am happy with what they are

offering
others
15

20

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4. What are your disappointments?

Percentage
38%
45 days for atm
Limited amount to be send in india for personal 25%
use
12%
Lot of paper work
Account deactivated in 6 month if cheque 15%
transaction does not take place
10%

others

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5. Which a/c are you currently using?

percentage
Saving a/c

65%

Bharat yatra card

17%

Fixed a/c

16%

Recurring a/c

2%

Others

0%

total

100

% OF CUSTOMER RESPONSES
0%
2%
16%

saving a/c
bharat yatra
fixed a/c
17%

recurring a/c

others
65%

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2.06.C Suggestions given by the consumers at the time of survey:

There is more time period for repayment of education loan.

( Namrata Das )
Education loan should be providing to private college also which is not under
AICTE or any kind of University.
( Pinaki Bal )
SBI should take steps to solve customer problems immediately.
( Gopinath Mahapatra )
Agents should be trained, well educated & proper trained to convince the
people about different advance product.
(P.Anish Nath)
Loan sanction date should be according to customer convenient.
(Akbar Miya)
A customer awareness programme should be taking place in rural area.
(aayush sah)

2.06. D SUGGESTION & RECOMMENDATION

Customer awareness programme is required so that more people should attract

towards advance product.
If there are any kind of hidden charges than that must disclose to customer
before giving loan to them.
NEPAL SBI BANK must take some steps so that customers can get their loan
in time. Like phone verification by customer care that one customer is got
their loan on time or not .It must be before a certain date so necessary steps
can be taken.
NEPAL SBI BANK should more concern about physical verification rather
than phone verification so it will avoid fraud or cheating.
Advance product selling agents must not give any type of wrong information
regarding advance product.
For the better service new offers would be require.
NEPAL SBI BANK customer care should more concern about the fastest
settlement of customer problems.
Before deducting or charging any monetary charge SBI must consult with customer.
Agents should be trained, well educated & proper trained to convince the
people about different advance product.
It is the duty of the bank to disclose all the material facts regarding advance
product, like interest charged, repayment period, other types of charges, etc.
Special scheme should be implemented to encourage both customer and
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agents.
The bank should increase the period for repayment of loan.
NEPAL SBI BANK should more focus on Retaining existing customers.
NEPAL SBI BANK must focus on Segmentation based on customer
knowledge Product offering based on customer demand.
NEPAL SBI BANK must take feedbacks of customers regarding features &
services.

2.06.E CONCLUSION

From the analysis part it can be conclude that customers have a good respond
towards NEPAL SBI BANK advance products in Patan. NEPAL SBI BANK
is in 1st position having large number of customers & providing good services
to them. The bank has a wide customer base, so the bank should concentrate
on this to retain these customers.
In present scenario NEPAL SBI BANK is the largest advance product issuer
in India. Within a very short period of time the achievement made by NEPAL
SBI BANK is excellent, what a normal bank cannot expect, but it is being
done by NEPAL SBI BANK. It happens due to employee dedication towards
the organization, fastest growing Indian economy, & brand image. To be the
largest advance product issuer, NEPAL SBI BANK should focus on-

Launch Innovative product

Customized advance products

Fastest customers problem solving techniques

Customer retention

Apart from all the above, NEPAL SBI BANK believe in providing good
customer services to their customers which is a key factor for success in
future.

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BIBLIOGRAPHY
Shopper stop

www.shopperstop.com
www.scribd.com
Annual report of shoppers stop
Investopidea.com
Documents provided by Chitkara college of sales and retail marketing
Wikipedia

Nepal SBI Bank Ltd

www.nepalsbi.com.np
www.sbi.in
www.wikipidea.com
Annual report of Nepal SBI

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Thank
YOu

69