CHAPTERI

INTRODUCTION

1.1 Background
Bank is defined as an institution, which deals in money and credit. A bank is a financial
institution and financial intermediary that accepts deposits and channels those deposits into
lending activities, either directly by loaning or indirectly through capital markets. A bank links
together customers that have capital deficits and customers with capital surpluses. A bank plays
intermediary role, which issue demand liabilities used as means of payment and at the same time
make loans to business in a tradition that goes back several hundred years ago. The
intermediation takes place when bank accepts deposits from general public, corporate bodies and
private organization and deploys these collections for profitable purpose in the terms of loan and
advance. Banks are highly leveraged institutions that heavily depend on attracting deposits as a
basis for their assets acquisition. Resources obtained from the depositors finance most part of the
asset required by commercial banks. Banking plays significant role in the economic development
of a country. Bank is a resource for the economic development, which maintains the selfconfidence of various segments of society and extends credit to the people. So, commercial
banks are those financial institutions mainly dealing with activities of the trade, commerce,
industry and agriculture that seek regular financial and other helps from them. For growing and
flourishing, the objectives of commercial banks are to mobilize idle resources into the most
profitable sector. After collecting them from scattered sources, commercial bank contributes
significantly the formation and mobilization of internal capital and development effort.

The concept of the banking has been developed from the ancient history with the effort of
ancient goldsmith who developed the practice of storing peoples gold and valuables. Under such
arrangement the depositors would leave their gold for safekeeping would get back their gold and
valuable after paying a small amount as fee for safekeeping and serving.

The role of money in an economy is very important. Proper and well planed management of
money directs, determines and enhances the health and productivity of total financial sector and
the performance of financial sector affect the growth of economy. Hence, money is the topic to
manage and banks are the manager. The existence of a bank is for the change in every aspect of
human being and its presence is for the upliftment of people. Banks is the backbone of the
economy. They act as intermediaries to channel funds to productive business companies and
projects.

The financial institutions are:

Commercial Banks
Development Banks
Finance Companies
Saving and Credit Associations
Mutual Saving Banks
Credit Unions
Insurance Companies
Pension Funds
Investment Companies
Investment Bankers
Securities Brokers and Dealers
Cooperative Bank Limited
Micro Financing

Bankingplaysasignificantroleintheeconomicdevelopmentofacountry.NepalBankLimited
(NBL) is the first commercial bank of the country. Commercial banks are the heart of the
financialinstitutions.Theyholdthedepositsofmanypersons,governmentestablishmentsand

business units. They made funds available through their lending and investing activities to
borrowers,individuals,businessfirmsandgovernmentestablishments.

Indoingsotheyassistboththeflowofgoodsandservicesfromtheprocedurestoconsumersand
financial activities of the government, they provide a large proportion of the medium of
exchangetheyarethemediathroughwhichmonetarypolicyaffected.Thesefactsshowthatthe
commercialbankingsystemofthenationisimportanttothefunctioningoftheeconomy

1.1.1 OriginoftheWordBank
The term Bank seems to have originated or derived from different sources like the Germanic
word Banck, the French word Banque and the Italian word Banco. The Germanic word
Banck which means a joint stock fund or heap. The Italian word Banco refers to a bench at
which money changers used to change one kind of money into another and transact their banking
business. Thus in olden days, banking was associated with the business of money changing and
lending.

In briefly, the early bankers, the Jews in Lombardy, transacted their business at benches in the
market. Thus in Thomsons Dictionary of Banking, word Bank is said to be derived from the
Italian word, Banco, a bench. When bankers failed, the people hence broke up his Banco on
word Bankrupt.

But some however do not agree with this view. They say that Germans were masters of a great
part of Italy and the word Bank is derived from the German word Banck, meaning joint stock
fundandtheGermanwordBankcametobeusedasitsItalianequivalentMonteandwas
ItalianizedintoBancoandtheloanswerecalledindifferentlyMontiorBanchi.

AlsothereisanotheropinionfromFrenchwriter, RevilPout,thattheuseofBankandBank
noteswerestartedinBabylonin600B.C.andtheBankofVeniceofItalywasestablishedin
middle ages. The use of it in India was started in ancient age. Kautaliyas economy also
describesBank.TheManuSmrititoohasexplainedthebankingsystemoftheancientage.
Hencewecanconcludethat,

BanckinGermanLanguage
BancoinItalian
BanqueinFrench
BankinEnglish,wasusedforthetermBank.

1.1.2 OriginofModernBanking

Thefirstbankswerethemerchantsoftheancientworldthatmadeloanstofarmersandtraders
thatcarriedgoodsbetweencities.Thefirstrecordsofsuchactivitydatesbacktoaround2000BC
inAssyriaandBabylonia.Later,inancientGreeceandduringtheRomanEmpire,lenderswho
werebasedintemplesmadeloansbutalsoaddedtwoimportantinnovations:acceptingdeposits
and changing money. During this period, there is similar evidence of the independent
developmentoflendingofmoneyinancientChinaandseparatelyinancientIndia.

Banking,inthemodernsenseoftheword,canbetracedtomedievalandearlyRenaissanceItaly,
to the rich cities in the north such asFlorence,VeniceandGenoa.
TheBardiandPeruzzifamilies dominated banking in 14th century Florence, establishing
branches in many other parts of Europe. Perhaps the most famous Italian bank was
theMedicibank,establishedbyGiovanniMediciin1397.

ThedevelopmentofbankingspreadthroughEuropealsoandanumberofimportantinnovations
tookplaceinAmsterdamduringtheDutchRepublicinthe16thcenturyandinLondoninthe
17th century. During the 20th century, developments in telecommunications and computing
resultinginmajorchangestothewaybanksoperatedandallowedthemtodramaticallyincrease
insizeandgeographicspread.TheLate2000sfinancialcrisissawsignificantnumberofbank
failures,includingsomeoftheworld'slargestbanks,andmuchdebateaboutbankregulation.

Thehistory of bankingis closely related to thehistory of moneybut banking transactions

probablypredatetheinventionofmoney.Depositsinitiallyconsistedofgrainandlaterother
goodsincludingcattle,agriculturalimplements,andeventuallypreciousmetalssuchasgold,in
the form of easytocarry compressed plates. In the times before the establishment of
Christianity,theeconomiclivesofthepeoplecirculatedaboutthehousesofthefamiliaregala
and theirpriesthood,wheresecuritywas affordedforstorage anddistributionprincipallyof
crops.Thusthebuildingsutilizedprimarilybythiselite,thepalacesandtemples,becamethe
location of the earliest of social exchange bearing some similarity to banking practices of
contemporaryculture,whereinthesafeguardingofthewealthofsocietywasassured.Temples
andpalaceswerethesafestplacestostorealsogold,astheywereconstantlyattendedandwell
built.Assacredplaces,templespresentedanextradeterrenttowouldbethieves.

Thehistoryofmodernbanksstartsfromtheestablishmentof

BankOfVenice,establishedinVenice,inItaly,in1157

LateronBankofBarcelonawasestablishedinSpainin1401

BankofGenoawasestablishedin1407

BankofAmsterdamin1607,
5

BankofHamburgin1619.

BankofEnglandwasestablishedin1694.

1.1.3 BankinNepal
ThehistoryofbankingsystemdevelopmentinNepalisnotsoold.Beforestartingthemodern
bankingsystemtherewastraditionalbankingsystem.FirstlythereappeartheGoldsmithswho
werethesourcesofdevelopmentofbankinNepal.Theyhadtotakethedepositsasmoney,gold,
ornamentsfromthepeopleandgavesecurityfromtheft.Merchantbankerwasthefirstbanker
whohasdevelopedthebankingintradingincommoditiesthanmoney.Theytransfermoney
fromoneplacetoanother,forthispurposetheyissuereceiptsordocumentsasmeresubstituteof
money called drafts in present days after merchant banker moneylender came in the field.
Moneylendergivesloantopublicandsomeinterest.Theyalsoacceptmoneyorvaluablethings
forsecurity.InMallastageTankadhariwasonetypeofcastwhowasespeciallyworkingfor
moneytransactionandalsogivesloantopublic,workingasabank.FinallyTejarathwas
establishedbyPrimeMinisterRanodipSinghRanain1933B.S(1876A.D).Itwasestablished
forprovidingloansforGovernmentemployeesbutitdidnotcollectdepositsfromthegeneral
public.

ThefirstmodernbanktobeestablishedwasaCommercialBank(NepalBankLimited).Nepal
BankLimitedwasestablishedin1994/07/30B.S(1937A.D)asthefirstBankinthehistoryof
Nepalwith51%ofGovernmentequityand49%ofgeneralpublicequity.NepalRastraBankwas
setuponB.S.2013/01/14asaCentralBankunderNepalRastraBankAct2012B.S.Sincethen,
ithasbeenfunctioningasthegovernmentsbankandhascontributedtothegrowthoffinancial
sector.In2016B.S,NepalIndustrialDevelopmentCorporation(NIDC)wasestablishedtolook
after the industrial development. Similarly in 2022/10/10 Nepal Rastiya Banijya Bank was
establishedasthesecondcommercialbankinNepalwith100%ofGovernmentsownership.In
6

2024 B.S Agricultural Development Bank of Nepal was established to provide finance for
agriculturalproducessothatagriculturalproductivitycouldbeenhancingbyintroducingmodern
agriculturetechniques.

Moreover, Security Exchange Center was established in 1976 to enhance capital market
activities.SecuritiesExchangeCenterwasrenamedNepalStockExchange(NEPSE)in1993
A.D.NEPSEopeneditstradingflooron13thJanuary1994.
In order to develop the economy other joint venture commercial banks and other financial
institutioncameintoexistence.Nepalalsoadoptedliberalfreeeconomicpolicy.Governmentof
Nepalpermittedtheestablishmentofdifferentjointventurebankswithforeigncollaboration.

ListofCommercialBanks
Table1.1:ListofCommercialBanks(DateinA.D)

S.

NameofCommercialBanks

No

Corporate

Operation

Office

Date(A.D.)

NepalBankLimited

Kathmandu

1994/07/30

RastriyaBankLimited

Kathmandu

1966/01/23

AgricultureDevelopmentBank

Kathmandu

1968/01/02

NabilBankLimited

Kathmandu

1984/07/16

NepalInvestmentBankLimited

Kathmandu

1986/02/27

StandardCharteredBankLimited

Kathmandu

1987/01/30

HimalayanBankLimited

Kathmandu

1993/01/18

NepalSBIBankLimited

Kathmandu

1993/07/07

NepalBangladeshBankLimited

Kathmandu

1993/06/05

10

EverestBankLimited

Kathmandu

1994/10/18

11

BankofKathmandu

Kathmandu

1995/03/12

12

NepalCredit&CommercialBankLimited

Rupandehi

1996/10/14

13

LumbiniBankLimited

Narayangadh

1998/07/17

14

MachhapuchhreBankLimited

Pokhara

2000/10/03

15

KumariBankLimited

Kathmandu

2001/04/03

16

LaxmiBankLimited

Birgunj

2002/04/03

17

SiddharthaBankLimited

Kathmandu

2002/12/24

18

GlobalIMEBankLimited

Birgunj

2007/01/02

19

CitizenInternationalBankLimited

Kathmandu

2007/06/21

20

PrimeBankLimited

Kathmandu

2007/09/24

21

SunriseBankLimited

Kathmandu

2007/10/12

22

NICAsiaNepalLimited

Kathmandu

2013/06/13

23

GrandBankNepalLimited

Kathmandu

2008/05/25

24

NMBBankLimited

Kathmandu

2008/05/01

25

KistBankLimited

Kathmandu

2009/05/07

26

JanataBankNepalLimited

Kathmandu

2010/04/05

27

MegaBankLimited

Kathmandu

2010/07/23

28

CommerzandTrustBankNepalLimited

Kathmandu

2010/09/20

29

CivilBankLimited

Kathmandu

2010/11/26

30

CenturyCommercialBankLimited 8

Kathmandu

2011/03/10

31

SanimaBankLimited

Kathmandu

2004/11/26

1.1.4 FunctionsofCommercialBanks
Thefunctionofcommercialbanksisbroadlyclassifiedintothreecategories,whicharebriefly
explainedbelow:

PrimaryFunction
Commercialbankshavetoperformprimaryfunctionsofacceptingdeposits,providingloanand
funds involvement in earnings assets to balance the portfolios of assets management. The
primaryfunctionofcommercialbanksisexplainedbelow:

AcceptingDeposits
Commercialbanksacceptdepositsfromindividuals,partnershipfirmsandcorporationsandalso
from center government and local government. It is the most important function of the
commercialbank.Differenttypesofdepositsacceptedbycommercialbanksareasfollows:

Current or Demand Deposit: often referred to as checking accounts are essentially

workingbalancesthatindividuals,business,financialinstitutions,andgovernmentalunits
usetomakepaymentswhentheyneedcash.Theamountdepositinthisaccountcanbe
withdrawn by drawing cheque without prior invest and no interest is offered in this

account.
SavingDeposits:Savingdepositsgenerallyareinsmallamount.Theybeararelatively
lowinterestratebutmaybewithdrawnbythedepositorwithnonotice.
FixedorTimeDeposits:Timedepositscarryafixedmaturity,apenaltyischargedfor
yearlywithdrawal.Thistypeofdepositusuallyoffersthehighestinterestratesabankcan
pay.However,thedepositorscantakeloanfromthebankagainstthesecurityoffixed
depositsreceipt.Timedepositsmaybedividedintononnegotiablecertificatesofdeposits
(CDs),whichareusuallysmall,consumertypeaccounts,negotiableCDsthatmaybe
tradedintheopenmarketinmillionofrupeesandarepurchasedmainlybycorporationall

overtheworld.
MarginDeposits:Thesearedepositsuseasmarginonlending.

CallDeposits:Thesearedepositsthatarecalledonshortnotice.Itisalsoknownas
moneyatcallandshortnotice.

ProvidingLoans
Thesecondimportantfunctionofabankistoprovidedifferenttypesofloans.Theprinciple
businessofcommercialbanksistomakeloanstoqualifiedborrower.Thecommercialbank
earnsprofitbygivingtheamountsdepositedwithitintheformofloans.Banksloansmaybe
classifiedas:loansandadvances,overdraft,cashcredit,discountingofabillsandsoon.The
bankchargesinterestonloans,whichareusuallyhigherthanthoseofferedonotherdeposits.
Since,thebanksinNepalarefreetofixinterestrates,therateofinterestonbothdepositsand
loansvariousfrombanktobank.

Investments
Commercialbanksalsoextendcreditwhentheypurchasesecurities;andthiscategoryofassets
maybeespeciallyattractivewhenloandemandisslack,asawayofemployingloanablefunds.
Averyhighpercentageoftheirsecuritiesrepresenttheobligationsofgovernmentunits.The
reminderiscorporatenotesandbonds.

SecondaryFunction
Thesecondaryfunctionsofcommercialbankarealsoknownasagencyfunctions.Thebank
chargesminimumfeesforundertakingthesefunctions.Thesecondaryofcommercialbankareas
follows:

Collections of credit instruments: Commercial banks receive and accept credit

instrumentssuchaschequebillsofexchangeandbankdraftsofcustomersandmake
paymentsagainstthem.

10

Income receiving and payments: Commercial banks receive dividend, interest on

debenturesandbondsofcustomers.Theyalsoreceiveandmakepaymentsofinsurance

premiums,rentandincomestaxesoftheircustomers.
Purchaseandsaleofsecurities:Commercialbankpurchaseandsalethesecuritieslike

shares,debenturesoftheircustomersinstockexchangeandothercapitalmarkets.
Remittanceofmoney:Commercialbanksremitthemoneyoftheircustomersfromone
placetoanotherontheirrequest.

ContingentFunction
Thecontingentfunctionsofcommercialbankareknownasgeneralutilityfunctions.Itperforms
thefollowingtypesofactivities:
Safetyofvaluablegoodsasgolddiamondsanddocuments.
Issueofcreditinstrumentssuchastravelerscheque,letterofcredit,drafts,mastercards,
etc.
ExchangeofforeigncurrencyunderthedirectionofNRB.
Publicationofmonthlyandannualjournals,bulletins,reportsetc.

1.2 IntroductiontotheOrganization
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Sunrise Bank Limited is Rising to Serve by defining new levels of services and products. It is
with an objective of establishing a tradition of best practices in corporate governance has a
policy directed not only towards the regulatory and legal requirements but also towards the
framework of best business practices, transparency and disclosure to the stakeholders. The
corporate governance framework in Sunrise Bank comprises of an effective independent Board,
separation of the Boards supervisory role from the executive management and the constitution
of Board Committees, comprising of independent directors to oversee critical areas.
Sunrise Bank has a Board of Directors, constituted as per the compliance of Banking and
Financial Institution Act, Company Act and other agreements with stock exchanges to meet the
criteria of best practices in corporate governance. The Board functions as a full Board and in
form of various committees constituted to address specific areas.
Sunrise Bank, within its relationships with its borrowers, depositors, agents, shareholders and
other stakeholders has always maintained its fundamental principles of corporate governance
that of integrity, transparency and fairness. For Sunrise Bank, corporate governance is a
continuous journey, seeking to provide an enabling environment to harmonize the goals of
maximizing shareholder value and maintaining a customer centric focus. Sunrise Bank corporate
governance encompasses its business practices, its values and personal beliefs, reflected in the
actions of each of its employees.
As a bank founded by reputed entrepreneurs, SrBL understand the needs of growing economy
and are well equipped serve them. Its team of seasoned banking and management professionals
have dedicated them to establishing an institution determined to cater to the needs of all be it big
or small. Aspirations of all are its benchmarks we always be Rising to Serve.
Capitalstructure:
PaidUPCapital:NRs2,015Million.
Initial Public Offering (IPO): NRs 375Million. The authorized capital of the bank is NRs
5000Million.

IndividualPromoters:70%
GeneralPublic:30%
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SrBLunderstandsthatbankingisnolongeranumbergame.SuccessforSrBLisnotjusttheir
profitmargin.Itunderstandsthatcustomerislookingforafriend.Afriend,whowillsafeguard
consumers savings and give all consumers the best value for Srbl. For SrBL success is
costumershandinfriendship.

Individual Prmoters

General Public

30%

70%

Figure1.1:ShareholdingPattern

1.2.1 ObjectivesofSrBL
13

InordertogetsuccessinitsbusinessandbecomeoneofthelendingbanksSrBLhasbeen
focusingonitssetobjectivesrightfromthebeginning.ObjectivesoftheSrBLarementioned
below:

To continuously expand Banks operation in systematic manner

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

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

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

1.2.2 VisionofSrBL
Sunrise Bank places great importance on the challenge of bringing satisfaction and excitement to
its customers. The Bank listens more intently to the costumers at all times and seek new ways to
enhance the quality of its product and services. Sunrise also believes that it is a
RELATIONSHIP BANK and that the customers would be provided with Personalized
Services through dedicated staff members to properly address their concerns

1.2.3 Mission of SrBL

Continuous offering of tailor made banking service to all levels of society, with no constraint on
time, location, size of transactions and all aspirations.

1.2.4 Board of Directors

Mr. Motilal Dugar

Chairman

14

Dr. Bhogendra Guragain

Director

Mr.ShriniwasSarda
Director

Mr. Hikmat Bahadur Mali

Director

Mr.MalchandDugar
Director

15

Mr.ShrawanKumarGoyal

Mr. Suresh Kumar

Director

Director

Basnet

Er.BachhRajTater

Director

1.2.5ManagementTeam
Mr. Surendra Man Pradhan
Chief Executive Officer
Mr. Bal Ram Bista

Ms. Asha Rana Adhikary

Deputy Chief Executive Officer

Deputy General Manager

Mr. Robin Nepal

Mr. Arun Prajuli

Assistant General ManagerFigure1.2:ManagementTeam.

1.2.6DepartmentHead

16

Chief Manager

Name

Section

Mr. Sanjaya Kumar Siddhi

Mr. Pritam Lal Shrestha
Mr. Manoj Neupane
Mr. Ishwar Kumar Pathak
Mr. Ritesh Aryal
Mr. Praveen Acharaya

Risk Management Department

Genera Service Department
Corporate Banking Department
Compliance Department
SME Banking Department
Correspondent Banking & Remittance Promotion
Team
Legal Department
Retail Banking Business Development Promotion &
Monitoring Department
Branch Support & Operational Control Department
Central Account & Treasury Back / Financial Planning
& Treasury Back Team
Information Technology and Swift
Human Resource Planning & Development
Department
In charge-Cards Center

Mr. Tika Bhattarai

Ms. Neema Pradhan
Mr. Nabin Sharma
Ms. Sweety Agrawal
Mr. Narayan Prasad Ghimire
Ms. Prabhavati Bista
Mr. Mandeep Bhattarai

Table1.2:DepartmentHead.

1.2.7OrganizationStructure

1.3OrganizationalStructureofSrBL

17

Figure1.3:OrganizationalChartofSrBL

1.4 Introduction of Business Desk Department And Credit Department

Business desk department is very important department of any bank in order to make first
impression.Firstly,customersenterintothebusinessdeskoftheSunriseBankandencounters
withstaff.IfcustomerssatisfiedfromBusinessDeskthens/hewillincreasehistransactioninthe
bankLiketheSame,Credit is the backbone of the any bank and without it: there is no meaning
of operating banks. The growth and existence of bank depends upon the amount of loan it
provides to general public, companies, etc. Banks have to follow the effective credit policy so
that bank can recover its loan on time.

1.4.1ProductandServices
SrBLisoneofthesuccessfulcommercialbank,whichoffersvariouskindsofproducttoits
costumerinorderfacilitateandfulfilltheneedofcustomers.Followingsaretheproductsand
servicesprovidedbySrBL.

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SavingDeposits
SunriseSeniorCitizenSavings:Sunrise Senior Citizen Deposit is meant for those
individual customers of 50 years or and above. This product is an endeavor by the Bank
to understand the senior citizen's need and facilitate them with banking services and
facilities to suit their requirements. With no limitation in deposit and withdrawals, the
product provides emphasis on personalized services to the customers.
Normal Saving: The Normal Savings Deposit is meant for those individuals and
households who have the habit of saving hard-earned money from their regular earnings
so that they can use it when they require. With no limitation in deposit and withdrawals,
the product provides emphasis on personalized services to the customers.
Pink Bachat Kata: Sunrise Pink Bachat Account (SrPBA) targets women customers
taking into account their unique banking habits that may help them increase their access
to productive resources.
Sunrise Fat Savings: Sunrise Fat Savings Deposit offers highest interest rates. The
product targets interest sensitive customers who also give priority to attractive features
that come along with the product.
Sunrise Super Saving: Sunrise Super Savings Account is a product targeted to
customers with high account turnover.
Sunrise Exclusive Bachhat Khata: Sunrise Exclusive Bachhat Khata- a special
savings deposit product has been designed to cater to the needs of Exclusive clients.
The product addresses the needs of those clients who wish to have comparatively higher
interest rates in any of the Savings Products.
Sunrise Krishi Karja Savings Account: Sunrise Krishi Karja Savings Account
is basically for lower and middle class individuals engaged in agricultural occupation.
Sunrise Bal Bachat Kosh: Sunrise Bal Bachat Savings Account enables parents who
wish to deposit amount in their children's account that could be useful later in their life
such as to meet educational expenses and others. As children grow older and reach age of
16, the deposited amount is allowed to withdraw. The product inculcates saving habits
among children.
Sunrise Disability Saving Account: Sunrise Disability Account is targeted to such
a group of customers who are physically impaired and or handicapped. The product is
newest of its kinds in the entire Banking industry.
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 Sunrise Share Dhani Khata: Sunrise Share Dhani Khata is developed for
shareholders of Sunrise Bank Limited targeting the share applicants of the bank who
have been allotted shares in the Initial Public Offering of the Bank. This product also
covers those shareholders who purchase shares from secondary market and become
shareholder of the bank.
Sunrise Share Lagaani Khata: Sunrise Bank's Share Lagani Khata is targeted to
the section of general public that seek to invest in shares of Sunrise Bank Limited or any
other Banks licensed by Nepal Rastra Bank.
Suryodaya Remit Bachat Khata: Suryodaya Remittance Bachat Khatta has been
designed to solicit deposit accounts of the Nepalese working abroad.
USD Savings Account: Sunrise Bank Limited has introduced the foreign currency
deposit feature to cater to the niche market of foreign workers currently working in
Nepal, Nepalese involved with foreign trade, Nepalese working for foreign
organizations.
EUR Savings Account: Sunrise Bank Limited has introduced the foreign currency
deposit feature to cater to the niche market of foreign workers currently working in
Nepal, Nepalese involved with foreign trade, Nepalese working for foreign
organizations.
GBP Savings Account: Sunrise Bank Limited has introduced the foreign currency
deposit feature to cater to the niche market of foreign workers currently working in
Nepal, Nepalese involved with foreign trade, Nepalese working for foreign
organizations.

1.4.2 Fixed Deposits:

Fixed Deposit Accounts are designed for individual and corporate houses who qualify for
interest earning on the idle funds for a period of time.
Fixed Deposit Accounts are opened for a fixed period of time. Fixed Accounts provide the
depositors with competitive interest at the rates agreed upon the time of opening the deposit.

1.4.3 Loans:

20

SrBL provides wide range of credit related to the corporate, small and medium enterprises, and
individuals. Lending terms are designed in such way that the customers can benefit the
maximum. Types personal solutions of loans, which are provided, are as follows:
Sunrise Ghar Karja: We offer you Sunrise Ghar Karja to help you achieve your
dream of owning your home. The interest rates are highly competitive and we offer both
short and long term loans as per your requirement duly supported by the customers'
income source.
Sunrise Sajilo Karja: Sunrise Sajilo Karja can be disbursed for social, personal,
business purposes. This flexible loan allows the borrower to fulfill all personal financial
requirements. We offer loans in line with the clients' repayment capacity and the usage
of the loan.
Term Loan: We will finance your requirements to acquire fixed assets or an existing
project. This is a long term loan and is generally available for acquiring or purchasing
machinery, equipment, land and building. The tenure of repayment of the loan is based
on the project's duration and the estimated/ existing cash flow.

1.4.4 Loans and Advances:

Sunrise Bank is committed to growing together with your business. Your new ventures and
business plans will be catered to as we help you realize your financial ambitions. We have
Relationship Managers who are dedicated to providing personalized services, and are
responsive to your every need. We offer business and personal loans to suit your need for
various occasions. Types of business solutions of loans and advances are as follows:
Krishi Karja: Sunrise Krishi Karja is one of its kinds in banking fraternity targeted
mainly to lower and middle class individuals engaged in agricultural occupation, based
on agro trading/ industries and other related to agricultural sectors.
Demand Loan: Demand loan to help you to build up your stock and receivables to a
desired level, against which the loan will be disbursed. Period of repayment will be at
the duration agreed by the borrower at the time of application justifiable by his/ her
business activities.
Fixed Term Loan: We will finance your requirements to acquire fixed assets or an
existing project. This is a long term loan and is generally available for acquiring or
21

purchasing machinery, equipment, land and building. The tenure of repayment of the
loan is based on the project's duration and the estimated/ existing cash flow.
Import Loan: We provide import loan to finance domestic and international trade
transactions through letter of credit. We will finance to import your goods in the form of
trust receipt up to a percentage of the total L/C amount as decided by the Management.
Overdraft Loan: We offer overdraft loan to finance your daily working capital
requirement and to support your stock build up.
Short Term Pledge Loan: We offer short term pledge loans against the stock after
verification of the same. The stock, however, is kept under lock and key of the Bank and
the loan disbursed and settled in pro rata basis with the stock pledged and sold.
Export Finance: We offer to finance various export requirements such as preshipment loan and post-shipment loan, documents negotiation / documentary bill
purchase etc.
Hire Purchase: We finance the purchase of vehicles used for both consumer and
commercial purposes. Used Vehicle -1 % higher than the published rates of New
Vehicle.
Deprived Sector Loans: As part of our Corporate Social responsibility, we offer
deprived sector loans to various organizations working for the upliftment of the poor,
especially in the rural areas.
Sunrise SME Loan: With the aim of meeting the financial ambitions of small and
medium businesses, we offer Sunrise SME loans to meet the working capital as well as
fixed term requirement of the applicant.
Loan Against Bank Guarantee: Sunrise Bank extends various loans, funded as
well as non-funded, against unconditional guarantees issued by First Class International
Banks.
Loan against Government Bond: The Bank can extend loans against various
Bonds / Stocks/ Promissory notes issued by the Government/ Nepal Rastra Bank.
Generally, upto 90% of the value of such Bonds will be disbursed as Loan. But no loans
shall be sanctioned against Government/ NRB Bonds which are specially marked as
ones against which loans cannot be granted. Similarly, the Bank can extend loans against
bonds issued by commercial Banks for fulfillment of their regulatory capital
requirement.

22

 Loan against Share: Sunrise Bank can advance loan against listed shares of Public
Ltd. companies. Sunrise Bank shall advance loan against listed shares of those
companies which are categorized under A and B by the Nepal Stock Exchange Ltd. The
Bank can finance up to 60% of the market value of the share, in case of A category
companies and only up to 50% in case of B category companies.
Loan against Fixed Deposits of Other Banks: The Bank can extend Loan
against Fixed Deposit Receipt issued by the Bank itself as well as by other Banks (in
Nepal). Generally upto 90% of the value of FDR will be disbursed as Loan. FDR may be
denominated in Nepalese Rupees or other convertible foreign currencies as per the list
provided by NRB. Whenever, there is significant exchange rate fluctuation, the loan
limit extended against the FDR in foreign currency shall be adjusted accordingly. Loan
against FDR can be of fixed nature or variable nature.
Consortium Loan: Fixed Term Loan as well as Working Capital Loan (Funded and
Non-funded). Consortium Loans are extended for the establishment, capacity addition,
up-gradation of existing facilitates as well as acquisition/ takeover of existing facilities.
The loan can be extended to manufacturing as well as service sector. The Bank shall
participate in consortium financing as a Lead Bank or a Joint /Co- Lead Bank.
Sunrise Gold Loan: Individuals and Institutions may conveniently get loan against
Gold for any purpose. Within the scope of above-mentioned products, we also offer
customized products and facilities in match your business needs.

1.4.5 International Trade:

SrBL also provides the facility of international trade in reasonable cost. Major products and
services in this regard are as follows:
Letter Of Credit (Import and Export)
Various types of bonds/guarantee (including counter guarantees and standby letter of
credit)
Short-term trade finance(trust receipt, packing credit and bills)

1.4.6 Remittance Services:

23

Remittance is basically is transferring of money from one place to another through telex, swift,
draft, wire, etc. Remittance is basically of two types:
i.
ii.

Incoming Remittance
Outgoing Remittance

SrBL offers variety of remittance services suiting different sevices needs of its customers. SrBL
remittance services covers:

SWIFT Transfers: SrBL offers fast, reliable remittance services in association with
correspondent banks through SWIFT, which is a secure mean of transfers commonly
used for inter-bank financial transactions. Customers can receive and send remittances

worldwide through the banks SWIFT transfer services.

Demand Draft: SrBL issues drafts payable in a range of currencies and at various
international banks. It also facilitates collection an encashment of demand drafts drawn

on other banks.
Travelers Cheque: SrBL is a prominent service provider for the buying and selling of
travelers cheque.

1.4.7 Other Services:

The Srbl bank provides the following services to the customer are as follows:

Locker: Sunrise Safe Deposit Locker is facility furnished to the individual and
institutional customers who prefer to safe deposit precious gems & jewelries and
important documents to evade the probability of increasing theft, burglary and fire. The
Safe Deposit Locker has been the first choice for the safest custody of the valuable goods
with flexibility of time to store and take away when required. The Bank has varied sizes of
Safe Deposit Locker to select from. Lockers facility can be availed from selective
Branches of the Bank.During the festive and wedding seasons, Sunrise Bank Ltd has been
offering discount on Safe Deposit Locker. This year also, we have offered discount up to
75% on Annual Rental Charge and Key Deposit. The discount scheme shall be valid from
the month of Shrawan Poush End 2070.

24

Table 1.3: Tariff on Annual Rental Charges and Key Deposit are as hereunder:
Locker Size

A
B
C
D
E

Existing Tariff

Key Deposit

Annual Rental

15,000.00
15,000.00
17,500.00
20,000.00
25,000.00

2,500.00
3,000.00
3,500.00
4,000.00
6,500.00

Sunrise Visa Debit Card: Sunrise Bank brings you a world of convenience by
offering Sunrise Visa Debit Cards

a. Sunrise Visa Debit Card Domestic (Valid in Nepal and India only): Customers can
now apply for Sunrise Visa Debit Cards Domestic from any of our branches. This card
can be used in any of the Visa ATMs and Visa Merchant locations, both in Nepal and
India.
1.
2.
3.
4.

Features:
Valid in Nepal and India only
Widely Acceptable and Secure
Signature based Debit Card. PIN entry required only in ATMs
Supplementary Card can be issued to your spouse, children or parents.

b. Sunrise Visa Debit Card International: Customers can now apply for Sunrise Visa
Debit Cards International from any of our branches. This card can be used in any of the
Visa ATMs and Visa Merchant locations worldwide. Customer applying for Sunrise Visa
Debit Card International must meet any of the below criteria:
i.
Must have convertible foreign currency account in any of our branches
ii.
Valid Visa and Confirmed Air Ticket for travelling abroad
iii.
Nepal Rastra Bank permit for foreign currency for travelling abroad

25

Features:

1. Valid Worldwide
2. Widely Acceptable and Secure
3. Signature based Debit Card. PIN entry required only in ATMs
Internet Banking: Internet banking service connects you safely to your bank account
anytime, anywhere. You may perform banking transactions electronically without visiting
the bank premises. Sunrise online banking inhabits many of the banking activities which
previously that could only be performed by visiting the bank.
We provide following Internet banking facilities:
i.
Balance Enquiry
ii.
Statement
iii.
Interest Statement

Suryodaya Remit: SURYODAYA REMIT - is a web-based online money transfer

product of the Bank designed to facilitate transfer of funds by Nepalese expatriates
working / living in foreign countries as well as for Domestic Transfer of funds.
SURYODAYA REMIT is secured by means of VeriSign and Digital Certificates mapped
to

each

user

separately.

It

is

fast,

affordable

and

secure.

Remittance Business arrangement with more than twelve Exchange Companies from
eleven different countries for international remittance business and a huge network of
more than 400 payout locations spread across the country for disbursement of remittance
payments are some of the prominent achievement made by the bank during a short span
of time.

Sunrise M-Banking: How easy your life would be when you can bank without going
to your bank. Make enquiries for your bank balance, or transfer funds to any accounts;
pay your utility bills, recharge your mobile phones and much more just by a click from
your Mobile Phone.

Any Branch Banking System (ABBS) : SrBL introduced Any Branch Banking
System with an objective to provide the customer with the most convenient service
possible. Customer can withdraw or deposit cash, receive information about the balance
in their A/C or obtain statements of accounts from SrBL any branch.

26

1.5 Area of Study

TheBachelorinBusinessAdministration(BBA)isbachelordegreeprogram,whichisaffiliated
byPurbanchalUniversityconsistingofeightsemesters of15credithours.Accordingtothe
designedprogram,studentsofeightsemestersshouldinvolveintheinternshipprogramofeight
weeksandfinallyshouldpreparereportrelatingtotheactivitiesdoneasbeingthepartofbank.
Thisinternshipprogramhasbeenveryfruitfulinprovidingthepracticalknowledgefromthe
workplace,whichhas beendesignedforthepartialfulfillmentofthedegreeofBachelorin
BusinessAdministration(BBA).Thisreport,hasbeenpreparedastherequirementofPurbanchal
UniversitysSyllabusoffouryearscourse.ThisinternshipprogramofBBAhelpstheinterneeto
applywhattheyhavelearntinclassroomonpracticallife.Thissupportstheinterneetoacquire
social,technicalandcommunicationskillstoworkeffectivelyandefficientlyatworkplace.
Internshipprogramshelpsinterneetoviewalltheactivitiesoftheorganizationclosely.Fromthe
internship, internee can acquire many thing i.e. can develop confidence level, can progress
communicationskillsandcangetideasabouthowtoenrolltheminworkingenvironment,how
todealwithdifferentkindsofpersonandsoon.Asawhole,theinternshipcanbedefinedasthe
practical application of techniques, which helps to use learned theories in classroom in to
practicethatenhancestheknowledgeandexperiencesofthestudent.Thus,thisstudyconsistsof
interneesworkingexperienceindifferentreputedorganizationfordurationofeightweek.
Banks are the financial institution, which plays the very significant role of intermediation
between investors and the users of the fund. Banks are intermediator which circulates the
funding,theeconomy.
Whiledoingtheseactivitiesbankfacesvariousriskelements.Inordertoeliminateormanagethe
riskuptocertainlevelNepalRastraBankcentralbankofNepalhascomeupwiththecapital
adequacyconceptonthebasisofBASELACCOORDII.

1.6ObjectivesoftheStudy

Themainobjectiveofthestudyistogainpracticalknowledgefromtheworkingplaceof
SunriseBank.However,followingsarethemainandspecificobjectives:
Toobtainpracticalideasandknowledgeoftheworkplace.
Tounderstandthebankingoperationsinthepracticalperspectives.
Toapplythetheoreticalknowledgeintherealenvironmentplace.
27

TocompletetherequirementforBBAsetbythePurbanchalUniversity.
Toidentifythedifferenttypesofservicesprovidedbybank.
Tolearnaboutprocessesrelatedtodifferentserviceespeciallyonbusinessdesk,
remittanceandcreditservice.

1.7ResearchMethodology
1.7.1 OrganizationSelection
Forastudentoffinancethenormaltypeoforganizationforinternshipiscommercialbank,inthe
firstplaceandthefinancialcompanies,inthesecondplaceandotherreputedorganizations
whichdealwithmarketingandaccountinginthethirdplace.Selectionofrightorganizationfor
internship is crucial decision. Every organization may not provide the goodenvironment of
acquiring knowledge for the internship student. Sunrise Bank has been selected for the
internship,whichhelpsinterneetolearndifferentsubjectmatter.

1.7.2 Placement
TheinterneewasplacedatGairidhara,MainBranch.Firsttwoweekstheinterneewasgiven
workrelatedtoRemittanceofOutwardClearance.
AfterCompletionofworktheinterneewasplacedatthebusinessdeskdepartmentfortwoweeks
inordertogivetheknowledgeabouthowtodealwithdifferentcustomersbecausebusinessdesk
isthefirstplacewherecustomersencountersinitially.Andknowledgeaboutinterestrateon
different kinds of saving products was given. After completion of four weeks internee was
rotatedtocreditdepartmentsforthreeweekstogaintheknowledgeabouthowtoperformthe
taskincreditdepartment.Inremainingoneweekinterneewasrotatedtocollectfeedbackof
bank,credit,clearing.

1.7.3 Duration

28

Thetotaldurationofinternshipwaseightweeks.InterneestartedinternshipfromAugust27,
2013andsuccessfullycompletedonOctober26,2013.
Completing,theinternshipatSunriseBankLimited,theinterneewasabletogainindepth
knowledgeregardingthefunctionsofthedifferentdepartmentofthebankthathelpedalotin
groomingtheinterpersonalskills,managerialskills.Duringthecourseofinternship,internee
wasabletolearnaboutthebanksculture,workingenvironmentandtheworkingprocedureofthe
variousdepartments.

Table1.4:DurationofInternshipinvariousdepartmentsatSunriseBankltd.
Departments

1st

2nd

3rd

Working
Remittance
BusinessDesk
CreditDepartment

1.7.4 Activities
Duringtheinternshipofeightweeks,interneeperformsvariousactivitiesinvariousdepartments
under the supervision of head of each department respectively. Internee performs various
activitiesinremittance,businessdeskdepartmentsandcreditdepartmentrespectively
.

1.7.5 SourcesofInformation
Bothprimaryaswellassecondarydataareusedinthisstudy.Primarydataareusedfromthe
observationandinquirytothestaffofthebankandfieldvisit.Secondarydataarecollectedfrom
29

annualreportofSunriseBank,www.sunrisebank.combrochureofthebankanddifferentbooks
andreport.

1.7.6 DataCollectionProcedure
Primarydataarecollectedfromtheinterviewtothestaffofthebankwhereasthesecondarydata
arecollectedfromtheannualreport,auditedfinancialstatements,websiteandbrochureetc.

CHAPTERII
LITERATUREREVIEW

30

Overview
Thisinternshipprogramhasbeenveryfruitfulinprovidingthepracticalknowledgefromthe
workplace,whichhas beendesignedforthepartialfulfillmentofthedegreeofBachelorin
BusinessAdministration(BBA).Thisreport,hasbeenpreparedastherequirementofPurbanchal
UniversitysSyllabusoffouryearscourse.ThisinternshipprogramofBBAhelpstheinterneeto
applywhattheyhavelearntinclassroomonpracticallife.Thissupportstheinterneetoacquire
social,technicalandcommunicationskillstoworkeffectivelyandefficientlyatworkplace.
Internshipprogramshelpsinterneetoviewalltheactivitiesoftheorganizationclosely.Fromthe
internship, internee can acquire many thing i.e. can develop confidence level, can progress
communicationskillsandcangetideasabouthowtoenrolltheminworkingenvironment,how
todealwithdifferentkindsofpersonandsoon.Asawhole,theinternshipcanbedefinedasthe
practical application of techniques, which helps to use learned theories in classroom in to
practicethatenhancestheknowledgeandexperiencesofthestudent.Thus,thisstudyconsistsof
internees working experience in different reputed organization for duration of eight week.
However,duringtheperiodofinternship,Interneegetsthefollowingopportunityforextending
theirKnowledgeintopracticesis:
Toobtainpracticalideasandknowledgeoftheworkplace.
Tounderstandthebankingoperationsinthepracticalperspectives.
Toapplythetheoreticalknowledgeintherealenvironmentplace.
TocompletetherequirementforBBAsetbythePurbanchalUniversity.
Toidentifythedifferenttypesofservicesprovidedbybank.
Tolearnaboutprocessesrelatedtodifferentserviceespeciallyonbusinessdesk,
remittanceandcreditservice.

CHAPTERIII

RESPONSIBILITYGIVENANDACTIVITIESCARRIEDOUT
Background
Theinternshipprogramisconductedinordertoenhancetheknowledgethatislearntinthe
classroom.Thetheoreticalknowledgebecomesthebasefordoingpracticaljobinfield.Thistype
ofproblemprovidesopportunitiestofacetheupsanddownsofthesituationduringthepractical.
31

Thishelpstogeneratetheproblemsolvingideaswithinoneselfbytakingintoaccountallthe
factorsinvolvedduringthework.Similarly,itsupportsthestudentstoacquiresocial,technical
andcommunicationskilltoworkeffectivelyinindustry.
AlthoughtherearevariousdepartmentsinSunriseBankbutinterneegottheopportunitytowork
especiallyinremittance,creditandbusinessdeskdepartment.Interneespendstwoweeksin
remittance department, two weeks in credit department, and two weeks in business desk
department,threeweeksincreditdepartmentandremainingoneweekareallottedinfeedback
collection,department.Duringthesetwomonthsinterneelearnedvariousthingaboutremittance
like Cheque outward clearance, making draft, keeping records in files, preparing mangers
cheque, fill up the Bi.Bi.Ni form, using cheque writer, doing photocopy, scanning, general
kwoledgeaboutTemenos(T24)etc.andbusinessdesklikedealingwithcustomers,documents
requireforaccountopening,accountchecking,throughtheuseofT24,ideasaboutthebalance
certificate,etc.Interneegotlittleideasaboutthecredit,andletterofcredit.

3.1 Analysis of Activities Done and Problem Solved in Business Desk

Department
Business desk department is very important department of any bank in order to make first
impression.Firstly,customersenterintothebusinessdeskoftheSunriseBankandencounters
withstaff.IfcustomerssatisfiedfromBusinessDeskthens/hewillincreasehistransactioninthe
bank.Astheinterneeworkedatbusinessdeskdepartment,theinterneelearneddifferentaspects
ofthisdepartmentsuchasdealingwithcustomers,differenttypesofaccountfacilityprovidedby
SrBL,accountopeningprocess,interestrate,closingofaccount,processofacquiringdebitcard
facility,accountcheckingandprintingstatementbyusingTemenos(T24)etc.
Intemeeopensvarioustypesofaccountofnumberofcustomers,whichareexplainedbelow:
32

CurrentAccount

Incurrentaccount,thebankundertakestheobligationofpayingallchequesdrawnagainstitby
the customer tillit has adequate funds ofthecustomerwithit.Itis a runningaccountand
therefore,itneverbecomestimebarred.Thebankdoesntallowanyinterestamountoncurrent
deposit.Thedepositorisfreetodepositandwithdrawmoneywheneverrequired.Theprimary
objectiveofcurrentaccountistosavecustomersorbusinessmanfromtheriskofhandlingcash
themselves.

Features:MinimumBalanceNPR1,000andunlimitedwithdrawalanddeposited.
Facilities:

AnywhereBranchBankingServices
ExtendedBankingHours
StandingInstructionisacceptedlookingatthefeasibilityoftherequest.
CashManagement
FreeChequebook

Documentation:
ForLimitedLiabilityCompany/SocialOrganizational/School

CompletedAccountOpeningForm
BoardResolutiontoOpenandOperatetheAccount
CertificateofRegistration/Incorporation
ArticlesofAssociation
MemorandumofAssociation
IncomeTaxCertificate(PANCard)
Evidence of Identification of Account Operator (Citizenship/Passport/Driving

License/VotersID)
TwoRecentPassportSizePhotographsofAccountOperators
33

ForPropritorship/PartnershipFirm

CompletedAccountOpeningForm
CertificateofRegistration/Incorporation
IncomeTaxCertificate(PANCard)
PartnershipDeed(IncaseofpartnershipFirm)
Evidence of Identification of Account Operator (Citizenship/Passport/ Driving

License/VotersID)
TwoRecentPassportSizePhotographsofAccountOperators

ForPersonal

CompletedAccountOpeningForm
EvidenceofIdentificationofAccountOperator(Citizenship/Passport/Driving

License/VotersID)
TwoRecentPassportSizephotographsofApplicant/AccountOperators
IntroductionbyanAccountholderofSunriseBank.

Sunrise Senior Citizen Savings

Introduction:
Sunrise Senior Citizen Deposit is meant for those individual customers of 50 years or and above.
This product is an endeavor by the Bank to understand the senior citizen's need and facilitate
them with banking services and facilities to suit their requirements. With no limitation in deposit
and withdrawals, the product provides emphasis on personalized services to the customers.
Product Description:

Interest Rate: 5.00 percent per annum

Interest Calculation: On Daily Basis, Monthly compounding
Minimum Balance: NPR 2,500.00

Product Facilities:

34

The account holders shall enjoy the discount in various sectors and outlets for which the
Bank shall provide the membership card
0.50 % discount on Loan Processing Fee
50% discount on issuance fee for International Visa Debit Card.
50% discount on processing charge of Travelers Cheque

Other Facilities:

Free -Account Statement, ABBS, Cheque Book and E-Banking Facility

8 am to 8 pm Banking & 365 Days Banking Service from Privileged Branches
50% Discount on Annual Rental Charges on Safe Deposit Locker for the first year
Insurance coverage for Accidental Death and incase of Permanent Disability

Product Membership:
Sunrise Senior Citizen Membership: Account Holders who posses Sunrise Senior Citizen
Savings Account shall be eligible for Sunrise Senior Citizen Membership Card for discount
provided in various sectors and outlets.
Documentation:

Two Recent Passport Size Photographs of Applicant/ Account Operator

Evidence of Identification of Account Operator(Citizenship/Passport/Driving

License/Voters ID)
Utility Bill Payment (If Possible)

NORMAL SAVING
Introduction:
The Normal Savings Deposit is meant for those individuals and households who have the habit
of saving hard-earned money from their regular earnings so that they can use it when they
require. With no limitation in deposit and withdrawals, the product provides emphasis on
personalized services to the customers.
Product Description:

35

 Interest Rate: 3.00 percent per annum

Interest Calculation: On Daily Basis, Quarterly compounding
Minimum Balance: NPR 100
Facilities:
Cheque Book
VISA Card
Insurance Coverage for Accidental Death and Permanent Disability
Documentation:

Two Recent Passport Size Photographs of Applicant/ Account Operator

Evidence of Identification of Account Operator(Citizenship/Passport/Driving

License/Voters ID)
Utility Bill Payment (If Possible)

PINK BACHAT KHATA

Introduction:
Sunrise Pink Bachat Account (SrPBA) targets women customers taking into account their unique
banking habits that may help them increase their access to productive resources.
Product Description:
Interest Rate: 4.00 percent per annum
Interest Calculation: On daily basis, Quarterly Compounding
Minimum Balance Required: NPR 100
Facilities:
Free Account Statement,
Free ABBS,
Free Cheque Book,
Free E-Banking Facility,
Free SMS Banking,

36

 Locker Discount,
Insurance Coverage for Accidental Death and Permanent Disability
Documentation:

Two Recent Passport Size Photographs of Applicant/ Account Operator

Evidence of Identification of Account Operator(Citizenship/Passport/Driving
License/Voters ID)
Utility Bill Payment (If Possible)

SUNRISE FAT SAVINGS

Introduction:
Sunrise Fat Savings Deposit offers highest interest rates. The product targets interest sensitive
customers who also give priority to attractive features that come along with the product.
Product Description:
Interest Rate: 5.00 percent per annum
Interest Calculation: On daily basis, Quarterly Compounding
Minimum Balance Required: NPR 10,000
Facilities:
Free Account Statement,
Free ABBS,
Free Cheque Book,
Free E-Banking Facility,
Free SMS Banking,
Locker discount and
Insurance Coverage for Accidental Death and Permanent Disability
Documentation:

Two Recent Passport Size Photographs of Applicant/ Account Operator

37

Evidence of Identification of Account Operator(Citizenship/Passport/Driving

License/Voters ID)
Utility Bill Payment (For Local People)
Introduction By an Accountholder of Sunrise Bank (If Possible)

SUNRISE SUPER SAVING

Introduction:
Sunrise Super Savings Account is a product targeted to customers with high account turnover.
Product Description:
Interest Rate: 3.25 percent per annum
Interest Calculation: On Daily basis & Quarterly compounding
Minimum Balance: NPR 2,500
Deposit/Withdrawal Limitation: No limitation on Deposit and Withdrawal
Facilities:
Free Cheque Book,
Free E-Banking
Free SMS Banking,
Insurance Coverage for Accidental Death and Permanent Disability
Documentation:

Two Recent Passport Size Photographs of Applicant/ Account Operator

Evidence of Identification of Account Operator(Citizenship/Passport/Driving

License/Voters ID)
Utility Bill Payment (For Local People)
Introduction By an Accountholder of Sunrise Bank (If Possible)

SUNRISE EXCLUSIVE BACHHAT KHATA

Introduction:
38

Sunrise Exclusive Bachhat Khata- a special savings deposit product has been designed to cater to
the needs of Exclusive clients. The product addresses the needs of those clients who wish to have
comparatively higher interest rates in any of the Savings Products.
Product Description:
Interest Rate: 4.75 percent per annum
Interest Calculation: On Daily Basis, Quarterly compounding
Minimum Balance: NPR 5,000
Facilities:
Free Account Statement
Free ABBS
Free Cheque Book
Free E-Banking Facility
Free SMS Banking
Insurance Coverage for Accidental Death and Permanent Disability
Documentation:

Two Recent Passport Size Photographs of Applicant/ Account Operator

Evidence of Identification of Account Operator(Citizenship/Passport/Driving
License/Voters ID)

Call Account
Features

Either current or saving account to be maintained

Interest Calculated on Daily Balance
Withdrawals from This account should be pre-informed.
Deposits will be accepted only during working hours only.
Chequebook will not be issued for this account.

Documentation Required For Applying New Credit Facilities:

39

Application Form/Letter
Completely Filled Basic Information Sheet
Company Registration Certificate
PAN/VAT Registration Certificate
Memorandum of Association / Articles of Association of the company.
Board Minutes.
List of Directors Certified by Company Registrar Office.
Copy of Citizenship of Directors and 2Passport Size Photo
Net Worth Declaration
Multiple Banking Declaration
Family Details
Current account to be opened at branch/bank.

Documents of Property

Lalpurja
Tiro Rasid
Charkilla
Blue Print
Trace
Map of Building
Building Approval/ Naksha Pass
Cost estimation (in case of new building construction)

Rates of Interest
Table 3.1: Rates of Interest

Deposits:
S.N

Products

A.
1.
2.
3.
4.

Saving Products
Normal Saving (LYC)
Sunrise Super Savings
Sunrise Exclusive Bachat
Khata
Sunrise Fat Savings Account

5.

Sunrise Bal Bachat Kosh

Minimum
Balance

Interest
(%p.a.)

NPR 100.00
NPR 2,500.00
NPR 5,000.00

3.00
3.25
4.75

NPR
10,000.00
NPR 100.00

5.00

40

3.50

Rate

6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
II
18.

Suryodaya Remit Bachat

Khata
Share Dhani Khata
Share Lagani Khata
Sunrise Disable Account
Sunrise
Pink
Savings
Account
Sunrise Lakhpati Bachat
Sunrise Krishi Karja Savings
Account
Sunrise
Senior
Citizen
Savings Account
USD Savings Account
EUR Savings Account
GBP Savings Account
Suryodaya Remit Bachat
Khata (FCY)
Fixed Deposit Products
a) Individual
FD-6 Months
FD-1Year
FD more than 1Year
Interest Payable on Quarterly
Basis
b) Institutional
FD-6 Months
FD-1Year
FD more than 1Year

NPR 100.00

3.75

NPR 1,000.00
NPR 1000.00
NPR 100.00
NPR 100.00

3.75
3.50
4.75
4.00

NPR 1000.00
NPR 1000.00

3.00
4.75

NPR 2500.00

5.00

USD 10.00
EUR 10.00
GBP 10.00
-

2.00
1.50
1.00
2.00

5.00
6.00
6.25

4.00
5.50
6.00

Interest Payable on Quarterly

basis
Loans And Advances
S.N
Products
Interest Rate (%p.a.)
1.
Loan against FDs of Other Coupon rate+ 2.00% or minimum
Commercial Banks
10%

3.2 Analysis of Activities Done and Problem Solved in Credit Department

Credit is the backbone of the any bank and without it: there is no meaning of operating banks.
The growth and existence of bank depends upon the amount of loan it provides to general public,

41

companies, etc. Banks have to follow the effective credit policy so that bank can recover its loan
on time.
Internee obtained an opportunity to spend three weeks in credit department. Within three weeks
internee got some ideas about credit and got chance to solve the problem of overdraft lending.
Department head assigned internee the task of SWOT analysis of customer in order to decide
whether to pass overdraft facility or not. From the credit department internee obtained the
information about types of loan provided by SrBL and things to be analyzed before providing
loan to the customer.

3.2.1 Procedure of Loan Disbursement

Procedures that SrBL is followed in the time of providing credit are explained below:

Counseling
Counseling is the first step of loan processing in which bank acknowledges the detail information
about the clients psychology and his business. In this step other things are discussed like about
interest rate, time period, loan limit interest and principle payment procedures, etc.

Application
After counseling, customers have to fill up the requested form provided by bank. Customers have
to disclose all the information and mentioned in the form, which are required.

Screening Process
Screening is the third process in which documents are evaluated to identify whether the customer
falls under the terms and condition of the back policy or not. Customers income statement and
balance sheet of past year, present year and forecasted year are checked in order to find out
capability of loan payment. Bank also collects the information from the Credit Information
Bureau (CIB) to find out character of customer and whether he took loan from other bank or not.

Site Visit

42

Customers are required to keep something as collateral like land and building etc so that bank
can be safe form default risk. In this step banks staff visit the position of the property and
visitors prepares a detail report on the findings and thereby makes a way for further processing.

Approval of the Proposal

If all the findings are positive then loan proposal is accepted and to applicant for further
processing. The proposal gradually passes through branch manager and general manager for the
approval. Once loan sanctioned, the CEO, the loan proposal is accepted and hence party is given
an offer letter.

Valuation
The property which is taken as collateral is evaluated properly in order to find out how much
loan to sanctioned.

Property Mortgaging
Once the loan is approved and valuation is completed, the bank mortgages the property put as
collateral. This enhances the security of loan and hence the bank would have a safer prospective
life. It ensures that the client will not default or will not able to apply for loan with same security.
In a way it is shift of loan away from the actual owner of the property.

Filing and Legal Consideration

Once the property is mortgaged, the documents are sent to legal department for the final check
up of the sufficient of the document and for other considerations. The department prepares final
checklist of the document and the file is returned to the respective branch. Before the loan is
finally disbursed, the client is required to do the insurance of land and building or other assets
which is taken as collateral.
The client should open a current or overdraft account in the ban, which will be credited at the
time of loan disbursement.

43

Loan Disbursement
After following all steps mentioned above, the loan is ready for use.

Follow Up
Performance of the assets is frequently analyzed through follow up and monitoring process. This
involves site visit of the property, counseling with the client, and requesting for the progress
report. However the performance can easily be evaluated on the basis of how punctual the client
is in repayment of loan.

Application

Site Visit

Screening

Property

Valuation

Approval of Project

Mortgaging

Filing and Legal

Counseling

Loan Disbursement

Figure no 3.1: Loan Disbursement Process

Work done by Internee

44

Follow Up

Internee was assigned the task of SWOT analyses of the customer in order to decide whether to
approve loan or not. Internee did the entire task assigned relating to SWOT analyses i.e. Industry
and business analyses that help them to identify the risk rating.
Interest Rate on Different Types of Loan
Table 3.2: Interest Rate on Different Types of Loan
Loan and Advances
S.
N
1.

2.
3.

4.

Products

Interest Rate (% p.a.)

SME Loan
Demand Loan
11.00-15.00
Export Finance
11.00-15.00
Overdraft
11.00-15.00
Term Loan
11.00-15.00
Importers Loan
11.00-15.00
Hire Purchase/ Auto Loan
a) Consumer
10.00-13.00
b) Commercial
12.00-14.50
Sunrise Ghar Karja Up to 10 million
Tenure up to 5 years
10.00-12.00
Tenure up to 10 years
10.50-12.50
Tenure up to 15 years
11.00-13.00
Tenure up to 20 years
12.00-14.00
*For loan amount greater than NPR 10.00Million. 0.50% higher on all
above rates shall be levied
Sunrise Sajilo Karja/ Personal Loan 12.50-14.50

3.3 Clearing Department

Internee spent two weeks in clearing department from where internee got general knowledge
about the cheque clearing. In Main branch, simply cheque of different banks are collected, they
are endorsed and recorded in ledger as well as T24 software. These collected cheques are sent to
the head office and further process is done by Head office i.e. going to NRB for collecting their
own cheque and giving others bank cheque. Finally customers account is credited by amount
specified in cheque.
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3.4 Felt/Observed Gaps

Internee got totally difference in what internee learnt in classroom and what internee observes at
workplace. Although there is totally difference or exit gap between practice and the literature,
they are base for each other because theory support for doing work practically. Without knowing
theory in advance people cant perform task practically. But in the real life, due to various factors
like culture-social factor, interpersonal relations and etc strictly prohibited what we learnt in the
theory and what we execute in practice. This is the main gap observed or felt by internee during
the period of internship at SrBL, Kathmandu.
The internship program has been able to bridge the gap between the classroom and the
workplace. It has led us to think as personnel in an organization. The internee is now not just a
student at college but a learner in the institutions and corporate houses. The internship program
will be guideline for the internees professional career.
The theoretical knowledge that the internee has gained while studying BBA for the last four
years was just a base to the practical life. Apart from the theory, the internship program has
totally giving a platform for us to prosper or increase our talent. It is not just using our mind in
answering questioning in exams but also helps him /her to formulate corporate level strategies
and business plans by using their own talent according to market in order to regulate and foster
the marketing activities of the business. It bridges the gap between college and the workplace.
Internship is the course of learning where one can use his/her theoretical knowledge into
practical base. This program will not only make his/her practical but also professional. This will
enhance the ability to cope the office environment without facing many problems.

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CHAPTERIV
CONCLUSIONANDLESSONLEARNT

4.1 Conclusion
Everyorganizationwantstohaveahighervolumeofprofitincomparisontootherorganization
butitisverydifficulttohavelargestprofitveryeasilybecauseofintensecompetitionamong
variousorganizations.SimilarlybankingindustriesofNepalisalsogrowingrapidlyintodays
scenarioinordertograbtheopportunityprovidedbyinternalaswellasexternalenvironment
andprovidebyinternalaswellasexternalenvironmentandtoprovidebetterservicetothe
customer.Thereexistcutthroatcompletionamongthenumberofbanksintheboundaryof
politicalinstabilityandpooreconomiccondition.Thus,inordertosurviveinthecompletion
environmentSrBLneedtocomeupwithdifferentproductsandservices,whichprovidesbetter
satisfactiontotheircustomers.Theyshouldproduceinnovativeideas,hireskillmanpowerand
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introduce latest competitive technology. Along with this bank should emphasis on social
responsibility that is very important in todays scenario because bank is existed in society.
Customersarethekingsforanybanksotoretainexistingcustomerforlongtimeandtoattract
newandpotentialcustomertheSrBLshouldunderstandtheneedsofcustomerandcustomer
shouldbetreatedlikeaGod.Banksshouldbeabletoanswerthequestionlikewhichcustomers
buystheproductsandhowtheyuseit,whereandwhenthecustomerbuytheproductsand
services, and how and which kinds of products the customer choose, why they prefer the
particularproducts,howtheyresponditandwilltheybuyrepeatedly?Bankshouldalsoadopt
knowyourcustomerstrategyinordertoidentifywhothecustomerare,theirbackground
information and monitoring their transaction to mitigate banking risk arises out of these
customer.Thustosurviveinthiscompetitiveenvironmentthebankneedstoadoptnewservices
thatareprovidedbyothercomparativebanksandmustmovethepresentscenarios.

4.2LessonLearnt

Thispart,conclusion,consistalltheactivitieslearntduringreportpreparationofSunriseBank.
Due to the support of Sunrise Bank, we got an opportunity to learn various things of the
employeesaswellasmanagersbehavioratthebankingsector.Weobservedtheactivitiesaswell
asthebehaviorofemployeestowardsthecustomer.Theywereverypolitetotheircustomer.We
knewthattheythinkcustomerastheirGoddessLaxmi.
Besidesthat,someofthebasicsweknewaboutSrBLaredescribedbelow:

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Allthedepartmentsinthebankingsectorsareequallyimportantaswellasriskiersothat
theyshouldlearnrulesandregulationbeforeworkingthere.Atthefirstdaystaffsare

taughttherethingsbythedepartmenthead.
Remittance,creditcash,LC,etcinvolvehighrisk,anditneedtrainedstaff.Foreffective
aswellasefficientperformancetrainingismostessential.SrBLprovidesvarioustraining

programtotheirstaffsbeforeworkingatrealworkplace.
StaffsofSrBLaresocooperativeinnature.Theyhelptoeachotheratthetime

difficulties.Cooperationisveryimportantforsolvinganykindofproblem.
Customersareveryimportantfortheserviceindustrylikebank.Theyarelikeagodso
bankshouldsatisfythembyprovidingeffectiveandefficientservicesthatarerequiredby

thecustomer.
Staffsusedtoaskvariousquerieswithcustomersrelatingtosatisfactionand
dissatisfactionwiththeservicesprovidedbytheSrBLandbehaviorofthestaff.Mostof
themweresatisfiedbutfewofthemareunhappy.Thishelpedstaffstodevelop

interpersonalskill.
Technologiesareveryimportantpartofthebankinordertoperformvarioustasks.Using
availabletechnologiesbankperformsmostofthetasks.Similarly,SrBLalsoused

differenttechnologiesforperformingtaskeffectivelyandefficiently.
NRBiscentralbank,whichcontrolsalltheactivitiesofthecommercialbanksoitis
necessarytoestablishcommunicationsandcoordination.
DifferentsetsofdocumentsaresenttothelikeBiBiNiform,foreignexchangeform,etc
aresenttotheNRB.Everydocumentinthebankiskeptinproperplaceatpropertime.
Staffsalsolearnttokeeprightthingsatrightplace.Inoverall,wespentonemonthto
preparethereports.Thisperiodwassointerestingandmemorable.Wegotcooperation
andsupportfromallthestaffsothatwespentonemontheasilyandhappily.Thus,this
internship report summarizes all those internship experiences. We hope this report
fulfilledtherequirementofPUandprovideresourcefulinformationtoallthereaders.

4.3Findings

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WhiledoingaworkinabankasaninterneeIhadobservedavariousthingswhichmay
helpinmyfuturecareeraswellasinallsuchtypesofprogramwhichiscomingthrough
inmyfurtherstudiesaccordingtotheuniversityprocedure.Thevariousfindingsaregiven
below:

Whiledoingaworkatbankwecanachieveapracticalideasandknowledgeaboutthe
workplaceandhowitisimportanttobeinasystemandhowitenhancesourbehaviorin

ourdailylifetoo.
Itsaprivilegetoworkinbankasinterneetounderstandthebankingoperationinthe

practicalperspectiveanditgivesawideknowledgethanthetheoreticalknowledge.
Its a perfect workplace to implement our theoretical knowledge into the real
environmentplacewithwidevarietyofdutiesandtheresponsibilitywhichisgrantedto

theinterneeduringtheperiodofworking.
Suchtypeofrequirementoftheuniversityshouldbeappreciatedandwhichcanbea
opportunitytothestudenttoportrayhis/herknowledgeinthefieldlikethisandalso

enhancetheperformanceinthefutureendeavorofthestudentsaswell.
Itprovidetheideasofserviceswhichisprovidedbythebankwithdifferentschemesand
with different interest rates according to product and services they provide to their
customer for their customer satisfaction and also to be in up to date for the new
technologiesandfacilitiesforthecustomerandalsoforthecountryaswell,astheyare

oneoftheintegralpartinthedevelopmentprocessofthenation.
Inbusinessdeskwefounddifferentpeoplewithvarietiesofattitudeandsowehaveto
dealwiththemanditenhancestocontrolourbehaviortowardsthemwithpolitelyand
calmlyinthedifferentsituationandalsotoprovideeffectiveandefficientinformationto

thecustomeraccordingtothebankschemesandprocedure.
Thoughbankisthebackboneofthecountryinthedevelopmentprocessitalsoprovides
the remittance facilities to the customer and also enhances the countrys economy
throughitawell.

4.4Recommendation
Thefollowingsuggestionsandrecommendationsofthisstudyareasfollows:
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 Customersatisfactionisthemostimportantthinginanyorganization.Therefore,more
employeesshouldbemobilizedtohavenecessarytransactionwithinshortperiod.
Higherpreferenceshouldbegiventocustomersandsothedepartmentshouldbequite
widerintermsofpaymentandcollectionbyaddingtheno.ofcomputerstocarryoutthe
transaction.
Documentsrequiredforthedifferentformsoftheremittancesectionmustbewrittenin
thenoticeboardasvisibleasitcouldbepossible.
Adoptingefficientmarketingstrategiestoencouragemoreofthecustomerstobenefit
fromthisremittancefacilityprovidedbySrBl.
Gaininggoodwillofthecustomersbyprovidingtheeffectiveandfasttransactionability
inremittancesection.

4.4.1RecommendationtotheOrganization

Thefollowingrecommendationsaretobemaderegardinghandlinginternship:
Placetherightnumberofinternsattherightplace.
Keeptrackofthebehaviorandattendanceoftheinternssothattheyareencouragedtobe
attheirbestandfeellikeapartoftheorganization.
Generatingalearningenvironmentwithintheorganizationsothatnotonlycanthe
internslearnfromtheorganizationbutalsotheorganizationcanusethecapabilitiesand
knowledgeoftheinterns.
Monitorandevaluatetheperformanceofeachinterntoascertainwhethertheyare
actuallylearningorjustgettingthroughtheprocess.
Appointaspecificsupervisorforeachinternwhoiswillingtoguideaswellascooperate
withtheinterns.

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 Haveaproperplacementscheduleforeachinternintermsofthedurationand
departmentstheywillworkinsothateveryapplicantcangetanopportunitytogetthe
internshipposition.

4.4.2 Recommendation to the University

Themajorproblemfacedbyapotentialinternisthefactthatgettinganinternshipposition
becameaverycumbersomeprocess.Evenwhenthebankofferedthepositionas anintern,
learningopportunitieswerelimited.Itcouldbebecausethenumberofinternsweremanyormay
bebecausethebanksthemselvesarenotfamiliarwiththeconceptofinternship.

Hence,thefollowingstepsaresuggestedtotheuniversitysfacilitiesofmanagementforthe
smoothandsuccessfuloperationofinternshipprocess:
Universitybeingasuperiorbodycanhavecontactswiththebanksinadvancesothatthe
bankscanplantheassignmentofinternsaccordingly.
Eachstudentshouldbeproperlybriefedinadvancetotheinternshipexperienceabout
whattoexpectasanintern.

The major objective of the internship as formulated by the university needs to be properly
conveyedtothestudents.Ifthestudentsareclearaboutthegoalsandobjectivesthentheycanbe
clearandprecise.

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