Professional Documents
Culture Documents
OF
EVEREST BANK LIMITED
An Internship Report
A Report Submitted To
Office of the Dean
Faculty of Management
Tribhuvan University
Kirtipur, Kathmandu
In the partial fulfillment of the requirement for the degree of
Submitted By:
Amnshu Khanal
Everest College
Exam Roll no: 9244/11
TU registration no: 7-2-355-0004-2011
Thapathali, Kathmandu
August, 2015
1
ACKNOWLEDGEMENTS
It is an immense satisfaction to prepare this internship report, which is an impartial
requirement for Bachelors in Business Administration (BBA). As a BBA student of
Everest College, I have selected Everest Bank Ltd one of leading commercial bank of
Nepal for the completion of my internship.
I am thankful to our Program director Dr. Jitendra Upadhyay, for providing me valuable
ideas, opinions and knowledge to make my report more informational and on the format.
Besides this, I am very grateful to all the faculty members of BBA Everest College and
my friends for their help and support.
Further, I would like to express my gratitude to Mr. Ram Hari Acharya, Branch manager
of Everest Bank, Satungal for giving me chance to serve in his institution and for his
regular personal supervision throughout my internship period. I am also pleased towards
Mr. Amit Phuyal, Mrs. Anjana Shrestha, Mr. Manish Singh, Mr. Prakash Regmi,
Mr. Rajesh Adhikari and entire staffs of Everest Bank for their cooperation and kind
support. I feel lucky to get their time despite of busy schedule and to learn from each of
them. Their response and serious consideration has helped me to get knowledge about
banking sector. I am grateful to all of them.
Lastly, I would like to express heartfelt thankfulness to my family for providing me
support and motivation.
Amnshu Khanal
Everest College
Table of Contents
Approval Sheet
Recommendation Letter
Acknowledgement
List of Tables
Abbreviations
CHAPTER ONE
INTRODUCTION
CHAPTER TWO
INTRODUCTION TO THE BANKING INDUSTRY
CHAPTER THREE
INTRODUCTION TO THE ORGANIZATION
3.2 Achievements
CHAPTER FOUR
ANALYSIS OF ACTIVITIES PERFORMED AND PROBLEM SOLVED 17
4.1 Background
15
15
25
CHAPTER FIVE
CONCLUSION AND LESSON LEARNT
26
5.1Conclusion
26
27
29
LIST OF TABLES
List of Tables
Pages
12
13
13
14
ABBREVIATIONS
ABBS :
AC
Account Checklist
ATM :
CSD
D/D
Demand Draft
EBL
KYC :
L/C
Letter of Credit
NRB :
PIN
PNB
SCT
SWIFT:
TU
Tribhuvan University
CHAPTER ONE
INTRODUCTION
1.1 Background of the study
Customer service is the process of ensuring customer satisfaction with a product or
service. Customer service is an extremely important part of maintaining ongoing client
relationships that are key to continuing revenue. Customer service department (CSD ) is
the first place a customer approaches after entering a bank. It is the place where
customers can place any queries related to the bank, place their problems related to
banks services and from where they can collect information about upcoming programs
and new schemes. It handles the concerns of customers. CSD should function effectively
in satisfying its customers as it is the first place where the customers come to seek for
help. This department performs regular and clerical nature of jobs and is the busiest
department in the bank. It deals with various activities like opening and closing of
accounts, issuing cheque books, providing bank statement, balance certificate, offering
initial customer counseling, etc.
Clearing is a process by which a banker exchanges cheques drawn against another bank
and deposited at their bank for collection or clearance from their customer at the clearing
house. Customers deposit cheque, drafts in their accounts, which are drawn on various
banks and bank serves their customers by helping them collect the fund in their account
through clearing function. As being the member of NRB, EBL accepts the cheque of
different banks. Until the cheques are handled to the respective bank, the payment is not
made to the customer. The respective of the bank visits the NRB daily to attend the
meeting of different bank to deal and adjust the transaction that has taken place.
Credit is an contractual agreement in which a borrower receives something of value now
and agrees to repay lender at some date in future, generally with interest. This term also
refers to the borrowing capacity of individual or company. Credit department provides
service to their customers analyzing new credit proposal and reviewing existing loan a\c
taking recovery action whenever necessary. EBL is providing different facilities
according to the need of the customers. It is responsible for approval and disbursement of
loans and advances. The activities of this department include managing the financial
books of the bank, checking all entries of the book according to standards, preparing
daily reports, revenue appropriations and calculations, etc. As loan is an asset to any
financial institutions, it is very necessary to ensure that it does not become bad. The first
step in ensuring that is to ask for proper documentation of the loan applicant.
To analyze the practical implication of the theoretical aspects learnt during the BBA
program
1.3.3 Placement
Regarding placement, the internee was not placed in single department. The internee was
rotated in different departments according to the requirements. The specific departments
were Customer Service, Credit and Clearing Department at the EBL, Satungal branch.
The main reason of the rotation was to let the interns gain knowledge about the working
procedures and to let know the connections within the departments. The support and
cooperation the internee got in bank was instrumental.
1st
2nd
3rd
4rth
5th
6th
7th
8th
Customer Service
***
***
***
***
***
***
***
***
Department
Credit Department
***
***
***
***
***
***
***
Clearance Department
Account closing
Assisting customers in filling withdrawal slips, forms ,deposit vouchers and cheques
b) Clearing Department
The activities performed in this department are:
Scanning cheques
Entering the details of the cheques into the system. This includes cheque number,
account number, account name, pay bank, pay branch and the amount.
c) Credit Department
The activities perform in this department are:
Providing the required forms under the credit department to the customer
Photocopy
CHAPTER TWO
INTRODUCTION TO THE BANKING INDUSTRY
2.1 Concept of Bank
A bank is an organization, the major function of which is to deal in money and credit.
Bank's main objective is to pool the scattered idle deposit in the public and channel it to
productive use. It collects deposits and lends or invests to those who stand in need to
money. Bank in other words is a custodian of money received from the depositors.
Hence, its responsibility towards the general public is pretty different than those involved
in other types of trades and services. Modern day banks exhibit the trait more of a
department store with a wide range of financial products to offer. Modern day bank's
business is not confined in borrowing deposits and lending advances only, it performs a
host of other financial activities which has immensely contributed to achieve industrial
and commercial progress of every country.
Following are some of the definitions of bank:
Bank is a financial institution, which provides financial services that may be in the form
of accepting deposits, advancing loan, providing necessary technical advices, dealing
over foreign currencies, remitting funds, etc.
-Nepal Rastra Bank Act 2002 B.S.
A commercial bank refers to such type of banks which deals in money exchange,
accepting deposits, advance in bonds and other commercial transaction there than some
special functions performed by specified banks such as co-operatives, agriculture and
industrial banks.
-Commercial Bank Act 2031 B.S.
ability with full security. They had been developed as the essential service providing
institutions in this rushing world. Hence, banking had become an important element of
the world economy in the present time.
The categories of banks in the context of Nepal are shown in the table.
Component
Minimum
paid
Commercial Banks
Development Banks
Finance Companies
capital requirement
2 billion
100 to 640 million
100 to 340 million
up Number
30
75
48
Since the intern had completed the internship in one of the commercial bank of Nepal, the
analysis is specifically focused on the KA category depository institutions i.e. the
Commercial Bank.
CHAPTER THREE
INTRODUCTION TO THE ORGANIZATION
3.1 An Overview of Everest Bank Limited
Everest Bank Limited (EBL) was registered on November 17, 1992 and came into
operation on October 18, 1994 (1st Kartik 2051 B.S.) with an objective of extending
professionalized and efficient banking services to various segments of the society. It is a
limited liability company and its registered office is presently located at Lazimpat, Nepal.
The bank is listed with Nepal Stock Exchange Ltd. and provides full commercial banking
services. The bank is promoted and managed by a team of experienced bankers and
professionals.
Punjab National Bank (PNB), the joint venture partner of Everest Bank (holding 20%
equity in the bank) is the largest Public Sector Bank of India having 118 years of banking
history and is known for its strong systems and procedures and a distinct work culture.
With its presence virtually in all the important centers at India, Punjab National Bank
offers a wide variety of banking services which include corporate and personal banking,
industrial finance, agricultural finance, financing of trade and international banking.
Among the clients of the Bank are Indian conglomerates, medium and small industrial
units, exporters, non-resident Indians and multinational companies. The large presence
and vast resource base have helped the Bank to build strong links with trade and industry.
The bank is providing customer-friendly services through its Branch Network. All the
branches of the bank are connected through Anywhere Branch Banking System (ABBS),
which enables customers for operational transactions from any branches. EBL was one of
the first banks to introduce Any Branch Banking System (ABBS) in Nepal. EBL has
introduce Bank of Wheel system, whereby the bank is installed in vehicle and moves
around to different places to serve the segment deprived of proper banking facilities
through its Birtamod Branch. EBL is the only bank having representative office in foreign
soil. The office facilities remittance and Nepalese working in India can even open
accounts through the office. EBL has set up its representative offices at New Delhi (India)
to support Nepalese citizens remitting money and advising banking related services.
The vision and mission of EBL are as follows:
3.1.1 Vision
To position it as a progressive & customer friendly bank providing financial and other
related services.
To provide excellent professional services & improve its position as a leader in the
field of financial related services.
To build & maintain a team of motivated and committed workforce with high work
ethos.
To use the latest technology aimed at customer satisfaction & act as an effective
catalyst for socio-economic developments.
3.2 Achievements
The achievements can further be divided into:
3.2.1 Awards
The bank has been conferred with the "Best Managed Commercial Bank" by ASIAN
PAINT NEWBIZ Award 2013.
The bank adjudged as "Number 1 Bank" under CAMELS (along with Customer Base
& Branch Network) rating conducted by KAROBAR national daily (a leading
business media house of Nepal).
The bank has been conferred with Bank of the Year 2006, Nepal by the Banker, a
publication of financial times, London.
The bank was bestowed with the NICCI Excellence award by Nepal India chamber
of commerce for its spectacular performance under finance sector.
EBL was one of the first banks to introduce Any Branch Banking System (ABBS) in
Nepal.
EBL introduced Mobile Vehicle Banking system to serve the segment deprived of
proper banking facilities through its Birtamod Branch, which was the first of its kind.
EBL introduced branchless banking system first time in Nepal to cover unbanked
sector of Nepalese society through biometric machine.
EBL is first bank that has launched e-ticketing system in Nepal where customers can
buy yeti airlines ticket through internet.
EBL introduced Cash Deposit Kiosk for the first time in Nepal through which the
Customers can deposit Cash conveniently.3.3
Shareholding Structure of
Share capital
A. Local ownership
80
1440.091,251
10.86
195,595,100
69.14
1244,496,151
20.00
100.00
361,147,800
1801,239,051
B. Foreign ownership
Total
Position
Chairman and Promoter Director
Promoter Director
Promoter Director
Promoter Director
Director (PNB, India)
Director from General Public
Director from General Public
Director (PNB, India)
Designation
Mr. AK Ahluwalia
Mr. AK Bansal
DEPOSIT ACCOUNTS
Saving Deposit
FCY Deposit account
US Dollar Savings
Euro Savings
GBP Savings
Fixed Deposit Account
1 month to less than 3 months
Institution
2%
2.50%
2.50%
3.50%
3.0%
4.50%
4.00%
Retail Loan
Corporate Loan
Retail Loan
The retail loan is provided to an individual for their personal use rather than to the
institutions or to firm for business purposes. There are different types of retail loan
services provided to the customer by EBL are home loan, vehicle loan, education loan,
bike loan, flexi loan, future lease rental, professional loan, loam against life insurance
policy, share loan and tractor and water pump finance.
Corporate Loan
A corporate loan is that which is given to the company or to a firm for business purposes,
rather than to a government organization or to an individual person. There are various
types of retail loan provided by EBL which are capital finance, working project finance,
trade finance and consortium finance.
Besides these EBL offers remittance facility, debit card and e-banking facilities. It also
provides locker facility to customer to keep their valuables like golds, diamonds, etc safe.
It provides foreign exchange facilities and 365 days banking facilities through New Road
branch.
CHAPTER FOUR
ANALYSIS OF ACTIVITIES DONE AND
PROBLEMS SOLVED
4.1 Background
An intern has to perform many activities as a temporary staff. The intern was rotated
through various departments of the bank, which exposed the internee to the real world of
the bank and observed the real operations of the bank. During the internship period, the
intern had performed activities mainly in Customer service department and also in
Clearing and Credit department. At EBL, intern had an opportunity to learn various new
things through observation, experience, action and enquiry on continuous basis.
Therefore, this internship report in detail highlights the various activities performed by
intern in these respective departments.
Provided the information on minimum balance requirement and the interest rate in
various schemes
As mentioned earlier EBL offers wide range of deposit schemes like personal saving
account and corporate account. Various documents are required for opening different
types of accounts depending upon the nature of the account to be opened. The following
shows the different documents required for opening different types of EBL deposit
accounts:
PP size photos
All documents required for personal account are needed for all joint parties
Special instruction must be provided to the bank in the application form in case of
any one signature among the joint account holders
b) Current Account
It is an account on which any amount deposited can be withdrawn through a cheque. It is
also known as checking account. It consists of:
Proprietorship Account
A business firm registered in the name of a person/proprietor is known as Sole
Proprietorship Firm. The proprietor bears all the profit or loss of the business.
Requirements for opening proprietorship account:
Registration Certificate
Tax Certificate
2 PP size photos
Partnership Account
A firm registered in the name of more than one individual is known as Partnership firm.
The profit and loss from the business operation is shared by the partners. Requirements
for opening partnership account:
Partnership Agreement deed
Firm Registration Certificate
Tax Certificate
Citizenship Certificate of Partners
2 PP size photos of partners
Registration Certificate
Name, Address of directors & Office Bearers of the Limited Company with copy
Citizenship Certificate
Tax Certificate
Registration Certificate
for issuing new one. The cheque books and ATM cards were issued to the customers only
after verifying their signatures from the system.
3. Account closing
As per the request of the customer, account closing is also performed. For this account
closing form should be filled by customer who is examined by staff and forwarded for
verification.
Following functions are performed for closing the account:
Ensured the unused cheques, used ATM card are returned back to bank
balance required and so on. Likewise, the intern also clearly explained the process of
using e-banking and SMS recharge method with the help of brochures.
The intern was required to file various forms including account opening form, form for
ATM card, form for SMS, mobile and internet banking, form for term deposit,etc. Forms
were filled in respective files. Account opening forms were classified as saving account,
salary account , fixed deposit account ,narri baccat khata, bal baccat khata ,current
account (corporate and individual). Similarly, ATM card forms were classified as SCT
and VISA. Classified documents were filled into respective files.
To aware customers about their new cheques, new ATM cards, new pins of ATM
cards, e-banking passwords, etc.
Friday. Those cheques are then forwarded to the staff that makes entry in the system and
generates report. The cheques are then sorted on the basis of banks and attached together.
Those cheques along with the report are sent to Baneshwor Branch. The Baneshwor
Branch will send those cheques to NRB, the next day for clearing. The customer will
have his/her cheque cleared within one and half day.
The various forms for the credit and loans tasks were provided by the intern to the
customers.
4. Photocopy
Intern had to carry out the job of photocopying of important documents like citizenship
certificate, licenses, student ID card, other identification certificates and other documents
as per the requirement.
5. Filling documents
Intern was required to arrange various L/C documents and file them according to
respective L/C numbers. Intern also had to file different bank guarantee and performance
guarantee documents according to respective Bank guarantee (BG) and Performance
guarantee (PG) numbers.
legal form that all such bills will be honored. In other words, a letter of credit is a
document from a bank guaranteeing that a seller will receive payment in full as long as
certain delivery conditions are met. In the event that the buyer is unable to make payment
on the purchase, the bank will cover the outstanding amount. For example, L/C document
is drawn between Sipradi trading and Tata motors India. For this purpose buyer should
have a L/C account in a bank. Parties involved in L/C transactions are: Opener,
Beneficiary, Opening bank and Closing bank. It can be of four types i.e. Confirmed L/C,
Revocable L/C, Irrevocable L/C and Transferable L/C.
The intern clearly explained the customers about the different deposit schemes
provided by EBL and suggested the best one as per their needs and budget.
Helped the customers in filling out the entire form from the documents provided by
them to the bank.
Intern assisted the staffs in filling. Rearrangement of files in the cabinet was made so
that files required could be easily located.
CHAPTER FIVE
CONCLUSION AND LESSON LEARNT
5.1 Conclusion
The bank are the institutions providing wide range of services for accepting and lending
money .They play vital role in channelizing the surplus amount from the depositor to the
deficit one. They are the major regulator of the economy of the country like Nepal which
is always helping people in upgrading their economic condition as well the economic
condition of the whole country. It provides the opportunities for the people as well as the
government to utilize the available funds that remain idle on them.
The Nepalese economy is filled with much of uncertainty and insecurity as due to the
political instability and the competition between the commercial banks that puts a big
question mark on the profitability of any business and banking organization. However in
such situation, EBL can be said to be playing a biggest role for the development of
economic sector through its services.
EBL is playing a pivotal role in facilitating services to and from across globe. Being the
first Nepalese bank to open a representative office in Delhi, India, the Nepalese in India
can open account in Nepal from designated branches of Punjab National Bank and remit
their saving economically through banking channels to Nepal.
EBL is one of the best banks for its service towards its clients since its establishment. So
this bank is awarded Bank of The Year-2006 for Nepal. This award is given by
international Bankers Association by valuation of service and works provided by this
bank. This bank is also fulfilling its social responsibility through building Public Parks,
and organizing Everest Game every year.
The whole internship period in EBL was a great experience where the time was spent
serving the customer in Customer Service, Credit and Clearing Department where intern
came up with new ideas and developed with skills to deal with the customers, so far to
cope with the real banking world situation. Working at EBL as an intern was a great
opportunity to develop conceptual and analytical knowledge about banking sector in
Nepal.
To implement the things that has been studied throughout the whole life into practical
use.
The specific abilities like interpersonal skills, computer application skills, team work,
to be patience etc were enhanced during the internship period.
Learnt about the general banking transaction process and the entry procedures at
CSD.
Learned the process of account opening in the bank under different account schemes.
To maintain and handle the files, documents which might be helpful in the near
future.
Using different office equipments like fax, photocopy, cheque writer, printers and
scanner, etc.
BIBLIOGRAPHY
BOOKS
Shrestha, S.K (2011), Export Market Management in Nepal, Padma Educational
Enterprises, Kathmandu, Nepal
R.R Still, E.W. Cundiff and A.P. Govoni (1996), Sales Management, Prentice-Hall
of India, Private Limited
WEBSITES
www.nrb.org.np
www.everestbankltd.com
www.wikipedia.com
www.bankinginnepal.blogspot.com
www.imnepal.com
ANNUAL REPORTS
Everest Bank Limited, (2013/2014), 20th Annual Report