ACKNOWLEDGEMENTS

My primary indebtness goes to the management of Citizens International

Bank Limited (CBIL) for giving me the opportunity to conduct my internship
program and work as an intern. I wish to extent my sincere gratitude to Mr.
Sikendar Thapa without whom doing internship in Citizen International Bank
Limited would not have been possible. Let me use this opportunity to say a word
of thanks to all those staff members of CBIL who gave me support, guidance and
encouraged me during the internship period.
I would also like to thank Mr. Mukti Timsina for giving me an opportunity
to work with his staff and share their knowledge and experience, which helped
me in preparing this internship report. My special thanks go to the supervisors of
various departments for providing valuable information and unlimited patience
in providing beneficial guidance. I sincerely like to thank Mukti Timsina (Branch
Manager) for giving me opportunity to work in various departments.
I would also like to thank internship report guide Mr. Shankar Neupane
and research committee Mr. Kedar Prasad Poudel and all the teachers of my
college, for their kind co-operation and perfect guidance to prepare this report
and for providing their guidance, suggestions and views about this report.
Further, I would like to thank my family members for their support, love,
encouragement and guidance. I would also like to thank all the friends who have
directly or indirectly supported me for the completion of this report.
Lastly, I would like to express my indebtness to my parents for their financial
help, inspiration and encouragement for the completion of this report.
Siwani Panchariya
BBA 8th Semester
Kasturi College
Itahari, Sunsari

EXECUTIVE SUMMARY
Commercial banks are the major component in the financial system. They work
as the intermediary between depositors and lenders and facilitate in overall
development of the economy, which major thrust in industrial development.
Commercial bank came into existence mainly with the objectives of collecting the idle
funds, mobilizing them into productive sector and causing and overall economic
development. The bankers have the responsibility of safeguarding the interest of the
depositors, the shareholders and the society they are serving. A sound banking system
is important because of the key roles it plays in the economy; intermediation, maturity
transformation, facilitating payments flows, credit allocation and maintaining financial
discipline among borrowers. Banks are the gathers of saving, the allocates of
resources providers of liquidity and payment services. There are more than 31
commercial banks in Nepal, Which were earning handsome profit since their
establishment.
Among the various commercial banks, I had got chance for doing internship as
part of partial fulfillment of the BBA program at Citizens International Bank Limited,
Itahari Branch. At the time of internship, many problems about banking systems are
encountered. Citizens Bank has been providing modern banking facilities using
modern banking facilities using modern tools and techniques. This internship report is
based on general banking operation (i.e. customer service department, teller cash
department and credit department) of Citizens International Bank Limited, Itahari
Branch.
Customer Service Department
When talking about this department only one personnel is being placed to cooperate with the clients. Overall banking facilities and products are informed through
this department to its customers. In the field of technology used the advanced
computer software for data processing is applied. The satisfactory from the customers
interviewed at the internship period is quite satisfactory. Although some changes
should be done to overcome the weakness and avoid the threats as hiring another
personnel making more competitive to the existing personnel for quick services which
makes customers more satisfied.

ii

Teller Cash Department

The function of this department is to handling cash and seals directly with
customer for accepting deposit/withdrawal of cash/cheques. Customer steps into the
bank and faces the teller at first. This is the most crucial time that of a bank personal
to impress the outsider with his/her hundred percent effort and skill. This department
represents the whole banks status and efficiency. In case of technology two counting
machines is used with modern Pentium 4 customer. Although than this the line or the
queue of the customers will be long in peak days of the week. From the interview with
the customers it is advised to install evening counter at the bank and the locker
facility, which lends to increase the customers satisfactions.
Credit Department
In talking about banks business loans are their primary of information. But the
small size customers are in huge no in developing countries like Nepal. By realizing
this Citizen International Bank Limited is responsible for granting loans to that
consumer groups to uplift the countries economy. This department is responsible for
collecting and granting loans and its timely collection. They provide as need of
consumer like education loan, home loans, vehicle loan etc. Prospective costumer are
need to provide supporting documents to the banks which is being sent to central
department in Kathmandu by whose the final approved for providing loan is taken.
When approval is received from the central departments only then loan are provided
on installment basis. Mortgage of asses are valued before providing loan by this
department in presence of engineer of the bank. Payment system is done by two
methods. Installment method and lump sum payment method.
As in a short period of its establishment time it has gave challenges to all other
banks by installing their braches in must of the country and the extension processes
underway, and by providing fruitful products using modern technology for the
beneficial of its costumers. Despite the weakness they have been perfect in achieving
opportunities and making won self strength. The timely correction of the weaknesses
recommended in this report would lead the bank towards asideing the threats and
achieving the strategic goal.

iii

TABLE OF CONTENTS
Title

Page No.

Title Page
Approval Sheet
Internship Certificate
Acknowledgements

Executive Summary

ii

Table of Contents

iv

List of Tables

vi

List of Figures

vii

Abbreviations

viii

CHAPTER-ONE: INTRODUCTION

1-17

1.1 Origin and Meaning of bank

1.1.1 Development of Banking in Nepal

1.1.2 Commercial Bank

1.1.3 Introduction of Citizen Bank International Limited, Nepal

1.1.4 Introduction of Citizen International Bank Limited, Itahari Branch

1.1.5 Capital Structure

1.1.6 Branches of CBIL

1.2 Conceptual Review of Banking Operation

10

1.3 Focus of the study

12

1.4 Purposes of the Internship Report

13

1.5 Statement of Problem

13

1.6 Importance of internship report

13

1.7 Methodology of Internship report

14

1.7.1 Internship Report Design

14

1.7.2. Population and Sample of Data

14

1.7.3 Data collection procedure

15

1.7.4 Nature of source of data

16

1.7.5 Data Analysis Tools & Techniques

17

1.8 Assumption and Limitation of the study

17

1.9 Organization of Internship report

17

iv

CHAPTER-TWO: PRESENTATION AND ANALYSIS OF DATA

2.1 Customer Service Department

18-56
18

2.1.1 Activities carried by this department

20

2.1.2 Activities Undertaken

31

2.1.3 Process of workflow of the Department

32

2.1.4 Handling official tasks

33

2.1.5 Merits of Customer Service Department

33

2.1.6 Problems of CSD

34

2.2 Remittance

34

2.2.1 Introduction

34

2.2.2 Activities earned at the Remittance

35

2.3 Teller-Cash Department

37

2.3.1 Introduction of the Department

37
2.3.2 Activities carried by the department
38
2.3.3 Merit of teller cash department
38
2.3.4 Problem of teller cash department
38
2.4 Credit department
41
2.4.1 Introduction of the Credit Department
41
2.4.2 Consumer Loans
41
2.4.3 Documentation for Education Loan
42
2.4.4 Documentation for Vehicle Loan
43
2.4.5 Documentation for Home Loan
44
2.4.6 Procedure of loan processing
46
2.4.7 Loan recovery procedure
53
2.4.8 Process of recovering expired / Problematic loan
54
2.4.9 Activities undertaker
56
2.4.10 Works flow of the department
56
CHAPTER-THREE:
MAJOR FINDINGS, CONCLUSIONS AND
RECOMMENDATIONS
57-60
3.1 Major Findings
57
3.2 Conclusions
58
3.3 Recommendations
59
BIBLIOGRAPHY
61
APPENDIX

LIST OF TABLES
Tables

Descriptions

Page No.

1.1

Capital Structure of CBIL (2068/2069)

1.2

Branches of CBIL

2.1

Service charge in Different Account

39

vi

LIST OF FIGURES
Figures

Descriptions

Page No.

2.1

Data flow Diagram for New Account Opening

21

2.2

Process flowchart of handling customers at customer service

32

2.3

Process Flow chart of handling official tasks at CSD

33

2.4

Flow chart of the OBC clearing undertaken by the bank

36

2.5

Flow Chart of Education Loan Sanctioning

43

2.6

Flow Chart of Vehicle Loan Sanctioning

44

2.7

Flow Chart of Vehicle Loan Sanctioning

45

2.8

Flow chart of loan procedure

52

vii

ABBREVIATONS
ABBS

Any Branch Banking System

AD

Anno Domini

ATM

Automatic Teller Machine

A/C

Account

BC

Before Christ

B/O

Branch Office

CBIL

Citizen Bank International Limited

CIB

Credit Information Bureau

DFD

Data Flow Diagram

EMI

Equal Monthly Installment

HR

Human Resource

H/O

Head Office

ICT

Information and Communication Technology

IRS

Indian Rupees

KYC

Know Your Customer

LRO

Land Revenue Office

NRBCH

Nepal Rastra Bank Clearing House

OBC

Outward Billing Collection

p.a

Per Annum

USD

United States Dollar

&

And

viii