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AN INTERNSHIP REPORT

ON
OM DEVELOPMENT BANK LIMITED

Submitted By :
Aashma Malla
Roll No.: 15031181
P.U. Regd. No. : 2014-2-03-1169

In partial fulfillment of the requirement for the degree of


Bachelor of Business Administration (BBA)

Submitted to:
Boston International College
Pokhara University
Bharatpur, Chitwan
May, 2018
ACKNOWLEDGEMENT
This report entitled “A Report on Internship in OM Development Bank Limited” has
been prepared for the partial fulfillment of bachelor in business administration (BBA)
seventh semester as prescribed by Pokhara University syllables for four-year academic
program. This report would not have been successfully completed without the help and
support of different individual who provide their valuable comments for preparation of
this report.

Thanks to the “OM Development Bank ltd, Tandi” and Mr. Jeevan Thapa branch
manager of the Tandi branch for providing me the data and information related to this
report.

Aashma Malla
BBA
Boston International College, Hakimchowk

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EXECUTIVE SUMMARY

This report is written as a part of the partial fulfillment of the degree of bachelor in
business administration course of Pokhara University. This report is all about my
experience, work performance and about the organization where I done my internship
program, that is OM Development Bank Limited, Tandi, Chitwan. The main objective
of the internship program is to build up the practical knowledge and to apply theoretical
knowledge in real business world.

Om Development is a certified development bank as per the Bank and Financial


Organization Act 2063 and Company Act 2063 from Nepal Rasta Bank as ‘Kha’
graded.
During my internship program, I mostly spent my time in customer services
department. In this department I got opportunities to gain various types of information
related to the customer services.
This report contains the performance and condition of the Om development Bank
during my internship program.

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ABBREVIATIONS

BBA = Bachelor of Business Administration

CSD = Customer Service Department

SWOT = Strengths, Weakness, Opportunities and Threat

ABBS = Any Branch Banking Service

% = Percentage

ATM = Automatic Teller Machine

CEO = Chief Executive Officer

KYC = Know Your Customer

DCEO = Deputy Chief Executive Officer

CMO = Chief Marketing Officer

CCO = Chief Credit Officer

COO = Chief Operating Officer

CGAO = Chief General Administration Officer

HR = Human Resources

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TABLE OF CONTENTS

ACKNOWLEDGEMENT .......................................................................................... II
EXECUTIVE SUMMARY ...................................................................................... III
ABBREVIATIONS ................................................................................................... IV
TABLE OF CONTENTS ........................................................................................... V
CHAPTER-ONE .......................................................................................................... 1
1.1 INTRODUCTION ............................................................................................ 1
1.2 OBJECTIVES OF STUDYING THE ORGANIZATION ............................... 2
1.3 OVERVIEW OF THE ORGANIZATION ...................................................... 2
1.4 ORGANIZATIONAL STRUCTURE .............................................................. 6
1.5 STRUCTURE OF MY DEPARTMENT ......................................................... 8
CHAPTER-TWO ....................................................................................................... 10
2.1 INTRODUCTION OF THE BRANCH ......................................................... 10
2.2 DEPARTMENT IN WHICH I WORKED DURING MY INTERNSHIP,
SUPERVISOR’S NAME AND JOB TITLE ................................................. 10
2.3 DESCRIPTION OF THE TASK/ PROJECTS WHICH WERE ASSIGNED
TO ME DURING MY INTERNSHIP ........................................................... 11
CHAPTER-THREE ................................................................................................... 13
3.1 CRITICAL ANALYSIS OF THE THEORETICAL CONCEPTS
RELATING TO PRACTICAL EXPERIENCE ............................................. 13
3.2 SUCCESS AND FAILURE OF DIFFERENT PRODUCTS OF THE
ORGANIZATION IN THE MARKET .......................................................... 13
3.3 MAJOR COMPETITORS OF THE ORGANIZATION ............................... 13
3.4 FUTURE PROSPECTS OF THE ORGANIZATION ................................... 14
3.5 CRITICAL ANALYSIS OF THE MANAGEMENT PATTERNS OF THE
ORGANIZATION WITH REFERENCE TO MY OPERATIONS SWOT
ANALYSIS .................................................................................................... 14
CHAPTER-FOUR ..................................................................................................... 16
4.1 CONCLUSION .............................................................................................. 16
4.2 RECOMMENDATION.................................................................................. 17
REFERENCES ........................................................................................................... 18

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CHAPTER-ONE

1.1 INTRODUCTION

In Nepal, the overall financial sector mainly comprises of two basic sectors, namely
banking sector and non-banking sector. Banking sector of Nepal consist Nepal Rastra
Bank (NRB), which is the Central bank of the country, and numerous commercial
banks. The non-banking sector on the other hand is made up of development banks,
financial consultancies, finance companies, co-operative organizations as well as
several Non-Government Organizations (NGOs) that render limited banking services.
Similarly, there are other several financial enterprises such as insurance companies,
employee's provident fund, citizen investment trust, postal saving offices and Nepal
stock exchange.

Being BBA student, we had to go through internship in any organization for a period
of 45 days, for partial fulfillment of Bachelors in business administration (BBA)
program as per the requirement of Pokhara University. For the internship I have chosen
OM Development Bank Limited. This project report is prepared being based on my
experience while working as an intern in the bank. I was appointed in Customer Service
Department during my internship period.

It was a wonderful experience to work as an intern at ODBL. This experience gave an


opportunity to gain practical experience on working in an organization and utilize
conceptual knowledge in specific area of the study as well as to widen the boundary of
my knowledge. ODBL’s culture is indeed soothing and supportive.

This report is written as a part of the partial fulfillment of the business administration
course of Pokhara university. This report is all about my experience in the internship
program which is done in the OM Development bank Ltd., Tandi, Chitwan.

I have done my internship in OM development bank ltd., Tandi . This bank is certified
by Nepal Rastra bank as a ‘B’ class bank. There are seven employee including one
branch manager, two credit head, one teller, one C.S and one security guard, one helper.
I had mostly work in customer service department.

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1.2 OBJECTIVES OF STUDYING THE ORGANIZATION

The objective of this report is to explain about the individual experience during the
entire internship period. The objectives of internship mainly comprise: enhancing
the conceptual as well as analytical knowledge related with Nepalese financial
institutions and their operating procedures, to obtain a practical knowledge about
various organizational procedures and policies regarding the banking sector, to
understand and experience banking ways with the help of participation, enquiry,
interaction, observation and working experience, to scrutinize the customer and
bank interrelation etc. The motives behind the report preparation are highlighted as
follows:

a) To understand the meaning of credit facility from the bank’s perspective.


b) To get familiar with several types of fund based credit facilities provided by
the ODBL.
c) To know about process of flow of credit facility to any eligible
customer/client by the bank.
d) To find out the existing as well as the possible problems associated with
fund based credit facility
e) To know about the change in customers’ preference regarding the various
available funds based credit facilities.
f) To know about the possible solutions as well as existing provisions
regarding the possible credit problems.

1.3 OVERVIEW OF THE ORGANIZATION


For the faculty of management, bachelor in business administration is best for
internship program. Being a student of BBA specialization in marketing has
selected the banking and finance sector like, OM development bank ltd, because
banks are the most prominent user of management and finance. In other words bank
is also known as financial institution.
Om Development is a certified development bank as per the Bank and Financial
Organization Act 2063 and Company Act 2063 from Nepal Rasta Bank as ‘Kha’
graded good organizational culture and it has also lots of respect for banking and

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its applications as well as it provides various types of services and facilities to its
customers.

1.3.1 BRIEF HISTORY

Om Development is a certified development bank as per the Bank and Financial


Organization Act 2063 and Company Act 2063 from Nepal Rasta Bank as ‘Kha’
graded.

People involved in industries, business, education, health, engineering, banking,


financial organization, British Gurkha, development project management and social
service are promoters of the bank. The bank is committed to fulfill all the financial
requirements of the people from different walk of lives very simply, fast and in a
straightforward manner.

Located in the financial hub of the iconic beauty, Pokhara City’s Chipledhunga, this
Bank is a combination of human skill and modern technologies which will provide
modern banking facilities in a safe and sound way.

All our services will be leading to satisfy customers and give them optimum
outcome. Therefore, our role will be focused on being a dependable and reliable
financial mediator to our customers on securing their capital and adding to their
wealth. It is our strong conviction that secures capital and productive use of it is the
way of creating wealthy society and supporting economic growth of the country.

1.3.2 NATURE OF THE ORGANIZATION

As we all know that a bank generally understood as an financial institution which


provides fundamental banking services such as, accepting deposits and providing loans.
Bank is a subset of the financial services industry as well as banks represent main pillar
of financial stability of any country. The nature of a bank is to normally perform certain
financial transactions. It performs the twin task of accepting deposits from general
public and lend to needy and worthy people from the society. When banks accept
deposits its liabilities increase and it becomes a debtor, but when it lends its assets
increases and it becomes a creditor. Banking transactions are socially and legally
approved. It is responsible in maintaining the deposits of its account holders. The Banks
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are the main participants of the financial system in any country. The Banking sector
offers several facilities and opportunities to their customers. All the banks safeguard
the money and valuables and provide loans, credit, and payment services, such as
checking accounts, money orders, and cashier's checks.

1.3.3 BUSINESS VOLUME

OM development bank ltd provides various types of banking services and facilities to
rural and urban areas of the country through its around 52 branches.

It has been providing Housing Loan, Hire purchase loan, Vehicle loan, Easy loan,
Education Loan, Demand loan, Gold loan, fixed deposit loan etc. It promotes the money
to national priorities sector i.e. development of Agriculture, Industry, service, Trade,
sector, Health and other potentials productive areas through support and assistance and
providing financial resources conducting under the prevailing rules and regulation of
economy. The Bank offers the full range of banking and investment services for
personal and corporate customers, backed by the team of highly motivated, young and
dynamic professionals. Personalized service, prompt transactions, wide networks,
mobile Banking and real-time account credit are few of the core strength of the bank.
It has been undertaking activities such as variety of deposit schemes, loans and
advances, Foreign exchange facilities, Trade financing, Inward/outward remittances,
market maker for government securities, Non-Fund based service like issuing
guarantees.

1.3.4 NUMBER OF EMPLOYEES


In this OM development bank ltd all the employees are highly qualified and have
banking skills to provide bank with effective plans and mandatory works. There are
altogether seven employees working in the Tandi Branch.
 Branch manager- 1
 Credit head -2
 Teller - 1
 Customer Service -1
 Security guard -1
 Helper- 1

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1.3.5 PRODUCT LINES

There are various types of products and services provide by the om development bank
ltd, which is given below:

1.3.5.1Fixed Account

1.3.5.2 3 month FD/ 6 month/ 9 month/ 1 years / above 5 year/ Special fixed deposit

 Can create Account with Minimum Charge Rs. 10,000


 Free SMS Banking Facility
 Free ATM Debit Card Facility
 Free ABBS Service

1.3.6 Saving Account

1.3.6.1Premium Saving Account

 Can create Account with Minimum Charge Rs. 25,000


 Free SMS Banking Facility
 Free ATM Debit Card Facility
 Free ABBS Service

1.3.6.2 Muskan saving/Normal saving/ Bir Gurkha saving/ jestha Nagarik saving/
Bal Bachat/ Payroll management.

 Can create Account with Minimum Charge Rs.100

 Free SMS Banking Facility


 Free ATM Debit Card Facility
 Free ABBS Service

Other services

 SWIFT, remittance, utility bill payment, foreign exchange, bank guarantee, any
branch banking services(ABBS).

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1.3.6 COMPETITORS

In this scenario there is various types of sectors that also providing the financial and
other kinds of services as like as banks are providing. Like corporative sectors, finance
company, insurance company and etc. In the market knowing who our competitors are,
and what they are offering, can help we to make our products, services and marketing
stand out. It will enable us to set our prices competitively and help us to respond to rival
marketing campaigns with our own initiatives. Major competitors of the OM
development bank are as follows:

 Sanima development bank limited


 Alpine development bank limited
 Global IME Bank Limited
 Standard Chartered Bank
 Siddhartha Bank Limited
 Bank of Kathmandu Bank Limited
 Himalayan Bank Limited
 Nepal Investment Bank limited
 Everest Bank Limited

1.4 ORGANIZATIONAL STRUCTURE

OM development bank ltd provides financial products and services to their


customers in exchange for earning interest and fees. Banking executives must
possess knowledge of complex monetary instruments in order to make sound
decisions based on capital adequacy, asset management and interest rate risks.A
strong organizational structure can help a bank thrive while offering a variety of
financial services.

1.4.1 MAIN OFFICE

The head office of OM development Bank Limited is located at Chippledhunga,


Pokhara. The main office handles and overviews the overall performance of the other

branches located at various parts of the country. There are around 53 branches that
are regulated by the head office

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1.4.2 ORGANIZATIONAL CHART

Compensation Recruitment
Committee BOD Committee

Audit Company
Committe CEO
secretary
e

Credit & HRM Finance Operation


marketing

Corporate
Branch
Banking Teller

Credit
Risk Administration CSD
Management & Trade
Remittance
Trade
IT
Finance
Department

Marketing &
Card Business
Research
& E-Banking

1.4.3 DEPARTMENTS NAME

There are various departments in an organization which are responsible to perform


their respective functions and duties. The different department names are given
below:

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 Customer Service Department (CSD)
 Administrative Department
 Loan Department
 Cashier Department

1.4.4 COMMENTS ON THE ORGANIZATIONAL STRUCTURE

The bank flow the information and command in hierarchical order, simply top level
to lower level. In the top level there is CEO and Board of Directors, and CEO
communicates or flow the information to different department heads and
department head finally to subordinate and employees.

1.5 STRUCTURE OF MY DEPARTMENT

I worked in Cash Counter and Customer Service Department (CSD). The structure
of my department is from top to bottom level. The information flows from branch
manager to operation head and our customer service department and credit
department.

There is not actually structure of the department where I worked. In CSD only one
staff is assigned to handle all types of works and in credit department there is two
staff along with credit head.

1.5.1 DEPARTMENT HIERARCHY

I mostly spend my time in customer service department. I had opportunity to deal with
customers to interact directly with them and I knew a lot of thing about bank facility
and the problem of customer.

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1.5.2 NUMBER OF EMPLOYEE IN MY DEPARTMENT

There are seven employees in tandi Branch. In credit department there are two
employees and one employees in teller, one in customer service department (CSD) with
one helper, security guard with Branch manager.

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CHAPTER-TWO

2.1 INTRODUCTION OF THE BRANCH

I had worked in the Tandi branch of OM development bank ltd. This branch provides
various type of services and facilities to its customers. In chitwan there are three branch
of Om development bank ltd, which is in Narayangarh, Bharatpur, Tandi. The Bank is
the pioneer in introducing the latest technology in the banking industry in the country.
Workers in the branch office, the management of the branch office always tries to
provide better service to its customers and behave well with them as a result they have
huge number of accounts in.

2.2 DEPARTMENT IN WHICH I WORKED DURING MY INTERNSHIP,


SUPERVISOR’S NAME AND JOB TITLE

I worked in the bank for 8 weeks and I mainly worked in the Customer Service
Department. In this department, I was allowed to perform the general tasks related to
the CSD such as opening account of new customer who want to open account in the
bank.

The customer Service Department helped to answers to the queries of the customers. In
this department, I learnt to fill up the account opening forms. Once the forms were
filled, we were taught to arrange the forms for the scanning process and fill in the KYC
forms for each customer. Opening an account was the main task to customer service,
so I was given an access to system just to learn how the accounts were opened. I learnt
how the different types of accounts were opened like fixed deposits, Saving Account,
Current account etc.

The Clearing Department maintains the cheque drawn on home or other bank for the
clearing purpose. The clearing of cheques from other banks take place at the central
bank (Nepal Rastra Bank) where separate body called “CLEARING HOUSE” has been
established.
The ATM department conducts all the activities related to the ATM machine like
sorting and arranging cash for the machine.

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I was supervised by the CSD head, Mrs. Manila Shrestha. I was assigned numerous
works. The credit head Mr. Parmod sir, also guided me with some information
regarding loan processing. The branch manager, Mr. Jeevan Thapa also provides me
proper guidance regarding operation of banking sector. I worked in cash counter and
remittance.

2.3 DESCRIPTION OF THE TASK/ PROJECTS WHICH WERE ASSIGNED


TO ME DURING MY INTERNSHIP

I spent most of the time in customer services department so I help the customer to fill
up the account opening form, to make the legal document of the client, giving
information about the company like as company facility, interest rate and not only that
I also involve in different kind of work which are as follows:

1. Account Opening

2. Statement Printing

3. Scanning and Photocopy Of Documents

4. Handling Customers Queries.

5. ATM Card Issue

6. Cheque Book Issue

7. Allotment of Account Number

8. Complain Handling

9. Phone Communication Handling

10. Signature Change

11. Receiving the Visitors

12. Updating the Records

13. Dealing with Different Customer problems

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14. Instructing To Fill Up Form for Different Reasons

15. Filing the Document

Hence all these activities are operated from Pumori software.

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CHAPTER-THREE

3.1 CRITICAL ANALYSIS OF THE THEORETICAL CONCEPTS RELATING


TO PRACTICAL EXPERIENCE

This is very difficult to apply our theoretical concept to the practical, because practical
knowledge assists us to attain the exact techniques that become the tools of our job.
Practical knowledge and application skills are essential to survive in this competitive
world today, whereas theoretical knowledge is the base of doing anything practically.
If we have theoretical knowledge about doing anything then our work is best or in other
practical experiences is good.

Real business world is very different from our world of book that I found during the
internship. It is very much difficult to convert my theoretical knowledge into practical.
Internship program helped me to find out the real world problems and helped me to
gain necessary skills to tackle with those problems.

3.2 SUCCESS AND FAILURE OF DIFFERENT PRODUCTS OF THE


ORGANIZATION IN THE MARKET

In the fierce competitive market, needs of customer keep changing. Hence, marketing
strategy must be dynamic and flexible to meet the changing customer need. I have
found that the OM development bank ltd is providing different kinds of products and
services and their all products and services are successes in the market because:

 They easily able to adjust with the new technologies.


 They promptly solve the customer’s complaints.
 They mainly focus on customer requirements.

3.3 MAJOR COMPETITORS OF THE ORGANIZATION

Major competitors of the tourism development bank are as follows:

 Sanima development bank limited


 Alpine development bank limited
 Global IME Bank Limited

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 Standard Chartered Bank
 Siddhartha Bank Limited
 Bank of Kathmandu Bank Limited
 Himalayan Bank Limited
 Nepal Investment Bank limited
 Everest Bank Limited

3.4 FUTURE PROSPECTS OF THE ORGANIZATION

 To be part of country’s future by creating business and employment


opportunities through banking activities in emerging sectors of the national
economy.
 To be recognized as an excellent development bank by offering innovative and
comprehensive product range.

3.5 CRITICAL ANALYSIS OF THE MANAGEMENT PATTERNS OF THE


ORGANIZATION WITH REFERENCE TO MY OPERATIONS SWOT
ANALYSIS

SWOT (strengths, weakness, opportunities, and threats) analysis is very important to


the success of any organization, because it provides the vital information about the
external and internal environment of the organization.

Strength and weakness from internal environment and opportunities and threats from
external environment. Such analysis helps managers in strategic planning. SWOT
analysis of om development bank is as follows:

Strengths
 Good reputation in the market.
 Dedicated, experienced and well trained employees.
 Up to date with the latest technology and information systems.
 Well qualified and professional management team.

Weakness

 Frequent problems in the ATM machines.


 Lack of advertisement.
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Opportunities

 It can establish links with the foreign banks to provide extra facilities.
 It can come up with new innovative products and services.
 Investment opportunities

Threats

 Instability of government
 Increasing competitors
 Technology and innovation

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CHAPTER-FOUR

4.1 CONCLUSION

During whole period of internship and the preparation of the report I learnt a lot about
the banking sector and banking operation. The internship has been fruitful in many
ways to me. I knew only little bit about the banking earlier, but internship has helped
me to know about the banks and its operation. The report in particular has made me
know about the various kinds of the deposits that the OM Development Bank Limited
has been offering.
The bank has focused in improvement of the information technology, venturing into
new areas of banking activities and has laid greater stress in improving the quality of
manpower. The bank has also emphasized to remain competitive in fast changing
environment and has adopted new marketing concepts. ODBL is in a process to create
a good name in market by providing highly personalized services to provide ultimate
satisfactions.
OM Development Bank Limited vision is to leading bank known for its services
excellence in the region and to upgrade in commercial bank. ODBL is committed to
meet the financial needs of our customers and exceed their expectations through
innovation solutions. Banks promises to deliver customer centered products and
services par excellence with the customer care and full satisfaction.
Lastly, I want to conclude that OM Development Bank Limited is excellent in term of
their services despite with some pros and cons with the issue related to customer
satisfaction.OM Development Bank Limited is indeed a wonderful banking institution
both from the aspects of services operation and customer satisfaction. It is one of the
emerging bank of today and have an opportunity to increase their market share by
improving their customer satisfaction by overcoming their weakness and doing their
best to retain quality services.

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4.2 RECOMMENDATION

There are various types of problems faced by every department of the bank. Thus those
problems should be solved as quickly as possible.After the careful observation and
internship experiences of two months as well as with reference to the findings and the
conclusion drawn out above following recommendations and suggestions to bank can
be sorted out.

 More focus on the customer requirements relationship with them.


 Promote remittance services effectively.
 Customer satisfaction
 Repairing the unstable computer system.
 Handling the documents of new account opening in a systematic way and filing
then in a proper way so that it can be easily available whenever needed.

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REFERENCES

 Questionnaire with Branch Manager of Tandi Branch


 Self experience in bank
 http://www.ombank.com.np/
 https://www.nrb.org.np/

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