DECLARATION

I hearby declare that the internship report entitled "operating Procedure of

customer service of Metro Development bank limited"submitted to Janapriya
Multiple Campus,faculty of management ,Tribhuvan University is my the original
work done in the form of partial fulfillment of the requirement for the degree of
bachelor in Business Administration(BBA)under the supervision of Mr.Krisna
Babu Baral.

Bimal Babu Neupane

BBA
8th semester
Janapriya Multiple Campus
Exam
Roll no_5447
T.U.Re
g No-3-1-45-266-2001

PREFACE

As a partial fulfillment of BBA program of Tribhuvan University, faculty of

Management, I was required to under go in internship for a period of eights weeks
from Asar 03 toBhadra 26, 2069 B .S.

I got a opportunity to work as an intern in very friendly and cooperative

enviroment of Metro Development Bank Limited, Newroad head office under the
guidence of Mr.Driga Prasad Adhikari, miss Kriti Rana magar and Miss
muktaKhati who helped me throughout the period of my internship .The subject for
my internship was "The Analysis of the Operating Procedure of Customer Services
of Metro Development Bank Limited".
The main purpose of the internship was to attain or gain practical knowledge
working as a intern as well as acquint myself with the world of bussiness where I
couldaply my theoritical concepts to real life situtions.it also granted me with an
opportunity to apply my theoritical knowledge to evaluate management
practices.During the internship,I learnt as well as developed my managerial and
analytical skill.
After completion of the internship , I feltthat internship is very important and
useful for us to gain practical knowledge and to grasp useful information in our
enrichment of knowledge and information for broadening our thiking.I believe that

the eight week BBA program internship will help me suceed in my future
endeavors.

ACKNOWLEDGEMENT
This internship report has been prepared for the partial fullment of the requirement
for the degree of Bachelor in Business Administration(BBA) under the Faculty of
Management , tribhuvan University ,Nepal.This report attempts to analyze the
operation department of Metro Development Bank Limited(MDBL),Newroad and
to conclude whether the departments are in their form.The report has been divided
in to five chapters:

Introduction ,Introduction of industry,Introduction of organization under

study,Analysis of Activities done and problem solved,and summary,conclusion and
Recommendation.

This report is an outcome of a great support of many people,it was impossible to

prepare the report in this shape without a kind support and advice of those people.I
benefited immeasurably from their knowledge ,idea and suggestions.It is hardly
possible to list the names of those pepole here but I would like to sincerely eapress
my gratitude towards each of them for their great support in providing valuable
information and in in responding to my queries.First af all I take this opportunity to
express my sincerest gratitude to my faculty for helping me to complete my
internship as partial fulfillment of BBA program in TU_FOM.It was indeed a great
new experience.
I am fortunate to acknowledge to Mr. Krisna Babu Baral, BBA program
coordinator,JMC,for his help in finding an appropriate organization (Metro
Development Bank Limited)for my internship and for his support and guidance in
making these study a learing experience.
I would like to express my gratitude to Mr.Krisna Babu Baral,Lecture in JMC,for
his invaluable support ,suggestions and guidence without which my report on
internship would not have been completed and his advice and suggestion were of
immense value in preparing my report.
At last but not the least,I expressmy affectionate credit to all teachers and my
friends who had provided me valueable suggestions,information and invalueable
support during internship and to complete the report.
Bimal Babu Neupane
List of Abbreviations

BBA

:Bachelor in Business Administration

NRB

:Nepal Rastra Bank

NBL

:Nepal Bank Limited

MDBL

:Metro Development Bank Limited

Ltd.

:Limited

Pvt.

: Private

CEO

Chief Executive Officer

BM

Branch Manager

CSD

Customer service Department

IT

Information Technology

R&D

Research and Development

NEPSE
B.S.

Nepal Stock Exchange

Bikram Sambat

A.D.

After Death

NRs.

Nepalese Rupees

A/C
CI

Account
Creditable Institution

TU

Tribhuvan University

FOM

Faculty of Management

OD

Over Draft

IME

Internation Money Exchange

List of Tables

Table1:Work Progress Chart

Table 2 :Intrest rate According to the Duration On Deposit
Table 3 : Intrest Rates on Loan and advances
Table 4 : Commission Rates on Guarantee
Table 5 : Board of directors of MDBL

List of Figures

Figure 1

Capital Structure of MDBL

Figure 2

account Oppenning Function

Figure 3

Account closing Function

Figure 4

Total Deposit of MDBL

Figure 5

comparision of Total Deposit and Tatal Lending of MDBL

TABLE OF CONTENTS

Recommendation
Declaration
Internship Completion letter
Preface
Ackknowledgement
List of abbreviation
List of Tables
List of Figures

CHAPTER I INTRODUCTION
1.1.1 Introduction to Faculty of Management
1.1.2 FOM's Goal
1.1.3 BBA program of TU
1.2 Objective of the study
1.3 Methodology
1.3.1 organition selection
1.3.2 placement
1.3.3 Duration of Internship
1.3.4 Activities Performed in the Organition
1.3.5 Work Progress
1.3.6 Data collection
1.3.7 Significnce of the study
1.3.8 Limitation of the study
1.3.9

CHAPTER I
INTRODUCTION
1.1 Background of the Study
Intern program as a new learning procedure simply can be defined as on the job
traning which provides practical implement of the oritical knowledge in real
world experience before actually steeping in to the real carrier.to gain practical
knowledge which specific objective intern program is there which have got its
own value in the real world practice.only gaining academic qualification is not
sufficient and productive ,they need to know the real scenario where they have
to work.Cooperation of both students and the orzanization is essential to make
intern productive.The organization should understand what the internship is and
should fully cooperate with intern to make them understand what exactly the
organization does.
Under the study of Tribhuvan University ,the student of Bachelor in Business
Administration (BBA) have to do the internship for eight weeks in any
orzanition recommended by the collage.During this short period experience of
intern an individual learn what type of task are solved,how the problems are
solved,how the decion are made by analyzing different activities/alternatives
behavioural aspect s like how to interact with other insid and outside staffs
working in and out the organization as well as with the visitors visiting in the
organization.For this organization should create an appropriate enviroment for
intern by giving a chance to gain knowledge based on different departments so
that intern can learn the basic function or what exactly the organization does.

1.1.1 Introduction to Faculty Of Management(FOM)

The Faculty Of Management (FOM),TU has its ultimate objective of educating
students of professional pursuit in business,industry, and government.it is further
divided to contribuiting for incresing the knowledge and understanding of business
and public administration.

1.1.2 FOM's Goals

The Objectives of the FOM are as follows:
-Prepare professional manager capable of handling business in dynamic
global enviroment.
-Produce socially responsible and creative enterpreneurs capale of
promoting business and industry for the socio economic development of
Nepal.
-Conduct research and management development programs for updating the
knowledge and skill base of academicss and practicing manager.
-Innovative and promote management programs creating to the various
social and economic of Nepal.
-Establish linkage with universities and management institution abroad and
collabrrate with them in program development and implementation.
1.1.3 BBA program of TU
Under the study of course of Tribhuvan University ,the students of Bachelor
In Business Administration(BBA)have to do the internship for eight week in
any organization recommended by the collage with students selection.The
primary reason behind the internship program is to make the students full
aware of the real world practices and to experience the theoritical knowledge
they learn in the collage in the real practical field.The eight weeks of intern
is not the sufficent time ton implement theoritical knowledge in practical
field,so considered as a short period experience.

Mission of BBA:
The mission of BBA is to develop socially responsible,creative and result oriented
management professional to fulfill the middle level managerial positions in the
rapidly growing business sectors in Nepal and abroad.
The specific Objectives of BBA Program are-Prepare the students to take up middle level position in the business sector.
-Develop student's skill in object oriented business management capable of
understanding and solving practical business problems creatively.
-Provide the proffessional management education with a blend of computer and
management information system courses.
-Prepare students to proceed onto post-graduate level study in business
administrtion.
-Build the conceptual and analytical framework for marketing decision.
1.2 Objectives of the Study
Intern program is itself a new learning procedure which provide practical
implement of theoritical knowledge.The primary objective of the study is to gain
practical knowledge and grasp the useful information on various aspects of
operation department of Metro Development Bank Limited for broadening as well
as enchriment of our knowledge of banking instition through
interaction,observation and work experience.
The basic Objectives of internship Program are Highlighted a follows-

-To examine the different types of deposit offered by the MDBL.

To analyse the procedure of oppening and closing the acount
-TO assess the total deposit and tolal lending of MDBL.

1.2 Methodology
This study is mainly conducted on the basis of the primary and secondary
soureces.Information quries and interview are taken with concerend
authority.Personal observation was also conducted in order to acquire various
information needeed to prepare this report and fullfill the objectives of the
study.the secondary data includes different types of product or service offer by
the organization,voucher and visiting website www..of the organization.

1.3 Methodology
This study is mainly conducted on the basis of the primary and secondary sources.
Informal queries and interview are taken with concerned authority. Personal
observation was also conducted in order to acquire various information needed to
prepare this report and fulfill the objective of study. The secondary data includes
different types of product/service offer by the organization voucher and visiting
website [www.metrodevebank.com.np]of the organization.

1.3.1 Organization Selection

For the purpose of gaining and experiencing the theoretical knowledge in real
practical field I choose development bank through which I can know about
banking sector and its needs in today's banking world. Metro Development Bank
Limited (MDBL) is Perfect for it. So I request my program coordinator Mr.
Krishna Babu Baral to provided recommendation later which I dropped in the and
of Mr. Surya Tiwari, CEO, Metro Development Bank Limited (MDBL).
Meanwhile due to lack of enough space in the MDBL (Head Office), I got adjusted

in branch office in Newroad. Finally on 3 Ashad 2069, I joined MDBL as an intern

for the period of 8 weeks lasted till 26 Shrawan 2069.
1.3.2 Placement
To perform the task we have to select or choose the department and I was so
excited to perform in the bank, the Manager of MDBL Mr. Dev Raj Poudel placed
me to look over Operation department, through which I can gather experience and
knowledge based on this department.

1.3.3 Duration of Internship

As per the requirement of BBA of TU, a student has to work as intern in any
organization for eight weeks. As the data managed by my campus, I started my
internship on 3 Ashad and end Sharwan 26.

1.3.4 Activities Performed in the Organization

It is well known that Operation Department as the backbone of each and every
bank and financial institution, during the eight weeks of my internship period I
worked in this department. The 8 week period is not enough time to know all the
things happen in these departments. During this period, I had gone through these
departments of MDBL:
a) Customer Service Department
b) Operation Department
c) Credit Department

1.35 Work Progress

Table 1
Work progress Chart
activities/ working period

preliminary Investigation

Environment
Analysis

Core Function Learning

Customer
Service
Department
Informatio
n
collection

1.3.6 Data Collection

Data collection is basic tool for making report effectively. This study is conducted
mainly on the basis of both primary and methods. Informal queries and interview
were taken with the concerned authority of the organization. The primary data has
been collected through observation, direct personal interview and on the job
training, beside the primary sources, secondary sources were also used to collect
the various information. The data relating to different types of products/services
offered by the organization were directly from different brochures and visiting the
website (www.metrodevbank.com.np) of the organization as well as form annual
report of MDBL and various other publication and journals. Sources of data for
report writing are as follows:

A. Primary Data
i. Observation
During my internship period, I observed the activities of personal of various
departments and their interaction with customers.

ii. Interview
During my internship period. I had also taken direct personal interview with
personal of various departments.
iii. On the Job Training:
During my internship period, I had also carried on some activities of various
departments in proper guidance of the personal.
B. Secondary Data
i. Annual report of MDBL
ii. Publication and Journals
iii. Data or information from Journals

1.3.7 Significance of the Study

This study is order to see the real world practices of the banking sector. This study
is also conducted to see and analyze the various services offered by the
organization. It is helpful for the people to know and understand about the products
and services of MDBL and will be ready to use and get financial products of this
organization.
Another significant point is that, it gives us to experience the real world banking
sector and also helpful for us to implement our theoretical knowledge we learn in
the university practically in the real banking sectors. Moreover, this study is very
important and useful for us to gain practical knowledge and grasp useful
information in their enrichment of knowledge and information for broadening their
thinking.

1.3.8 Limitations of the Study

The major limitation of the study is time duration. The eight weeks allocated for
our study was not enough time to know and learn the real banking practices indepth. So due to time limitation, the study could not be made in major department.

Since I have joined MDBL as an intern there is no authority to use the system. Due
to improper timing also I willingly could not place my queries with them.

CHAPTER II
BRIEF INTROUDUCTION OF THE BANKING INDUSTRY
Many of today's banking services were first practiced in ancient Lydia, Phoenicia,
China, and Greece, where trade and commerce flourished. The temple in Babylonia
made loans from their treasuries as early as 2000 BC. The temples of ancient
Greece served as safe-deposit vaults for the valuables of worshipers. The Greeks
also coined money and developed a system of credit. The Roman Empire had a
highly developed banking system, and its bankers accepted deposits of money,
made loans, and purchased mortgages. Shortly after the fall of Rome in AD 476,
banking declined in Europe.

The increase of trade in 13th century Italy prompted the revival of banking. The
moneychangers of the Italian states developed facilities for exchanging local and
foreign currency. Soon merchants demanded other services, such as lending
money, and gradually bank services were expanded.

The first bank to offer most of the basic banking function known today was the
Bank of Barcelona in Spain. Founded by merchants in 1401, this bank held
deposits. Exchanged currency, and carried out lending operations. It also is
believed to have introduced the bank check. There other early banks, each
managed by a committee of city officials, were the Bank of Amsterdam (1609), the
Bank of Venice (1587), and the Bank of Hamburg (1691). These institutions laid
the foundation for modern banks of deposit and transition.

For more than 300 years, banking on the European continent was in the hands of
powerful statesmen and wealthy private bankers, such as the Medici family in
Florence and the Fuggers in Germany. During the 19th century, members of the
Rothschild family became the most influential bankers in all Europe and probably
in the world. This international banking family was founded by German financier

Mayer Amschel Rothschild (1743-1812), but it soon spread to all the major
European financial capitals.

The Bank of France was organized in 1800 by Napoleon. The bank had become the
dominant financial institution in France by the mid-1800s. In Germany, banking
experienced a rapid development about the middle of the 19th century with the
establishment of several strong stock-issuing or publicly owned banks.

Banking in the British Isles originated with the London goldsmiths of the 16th
century. These men made loans and held valuables for safekeeping. By the 17th
century English goldsmiths created the model for today's modern fractional reserve
banking-that is, the practice of keeping a fraction of depositors' money in reserve
while extending the remainder to borrowers in the form of loans. Customers
deposited gold and silver with the goldsmiths for safekeeping and were given
deposit receipts verifying their ownership of the gold deposited with the goldsmith.
These receipts could be used as money because they were backed by gold. But the
goldsmiths soon discovered that they could take a chance and issue additional
receipts against the gold to other people who needed to borrow money. This
worked as long as the original depositors did not without all their gold at one time.
Hence, the amount of receipts or claims on the gold frequently exceeded the actual
amount of the gold, and the idea that bankers could create money was born.

2.1 Nature of Nepalese Banking Industry

An industry refers to group of companies of organization or institutions that
provide similar types of goods and services to its costumer. Bank safeguard money
and provide loans, credit and payment services. Bank is a financial institution
which deals with money and credit. Nepal Bank Limited (NBL) is the 1st bank to
provide banking service in Nepal. It is providing service to the customers of
various departments since its establishment in 1994 B.S. as a government bank.
The second bank established in Nepal is NRB which was established in 2022 B.S.
and providing services till now. Both of them are known as commercial bank at
this time.

2.2 Major Services Provided by Banking Sectors

The banks Nepal have to perform various functions. They are categorized into two
parts:
i. Primary Function:
Accepting Deposits
Providing loans
Investments
ii. Secondary Function:
Issue credit instrument provided other financial services like issue of
credit instruments to encourage further transactions.
Safety of valuable goods loans are given in the safety of valuable
goods pledged as security for loan.
Dealing with foreign exchange.
Work as referee provided needed information if someone wants to
take borrowers or clients having business with the banks.
Issue of guarantee - provide guarantee a contingent liability to
encourage foreign business of import and export.

2.3 Types of Banks

The main objective of the bank is to earn profit by satisfying its clients. The clients
may be various departments like credit, remittance, operation etc. Thus a single
bank can't satisfy all the customers at a time. Banks differs according to their
nature. The types of bank according to their natures are as:

Development Bank
Commercial Bank
Industrial Bank
Saving Bank
Exchange Bank
Merchant Bank

 Student Bank
Labor Bank and so on

2.3.1 Introduction of Development Bank

Many development banks have been established in Nepal after the enactment of
development bank Act 2052 (1995). The development bank is also a kind of bank
performing its function under the Development Bank Act 2058 (2002) and
Company Act 2053 (1996). These banks are helping people as well as nation in
economic development directly or indirectly. They give long term loan and provide
technical and other advices as well.

2.3.2 Category Of Development Bank

The prevailing Nepalese Banking Act 2063 divides Development Bank is term of
authorized capital as given below:
National Level:
A development bank is categorized into national level development bank if its
authorized capital is more than NRs.64,00,00,000.00. It can operate its function all
over the country.
Ten District Level:
A development bank whish can operate its function within ten district only is
categorized as ten district level development bank. Its authorized capital must not
be less than NRs. 20,00,000.00.
There District Level:
This is the smallest development bank which can operate its function within three
districts only. Its minimum authorized capital in NRs. 10,00,00,000.00.

CHAPTER III
INTRODUCTION OF THE ORGANIZATION UNDER
STUDY

3.1 Introduction of the Organization

Metro Develpment Bank Ltd. was dually registered on 01/09/2066 B.S with Office
of company as per Bank and Financial Ordiance-2061 B.S. It is in operation from
01/09/2066 after the license from Nepal Rastra Bank.
The company is promoted by renowned and established businessmen,
industrialists, bankers and retired civil servant etc. The company is headed by a
team of professionals having extensive banking exposure. It is 'B' grade
development bank which is categorized by NRB. MDBL is located in a business
centre Newroad as Head Office and have got its branches in Bhorletar, Ratna
Chowk. MDBL going to opening their branches at Hospital Chowk Pokhara and
Myagdi at near future. It aims to provide modern service to its clients in a secure
way by the financial intermediate by providing security of customers' fund growth
of their security.

3.1.1 Vision, Mission, Values and Objectives of MDBL

Vision:
To became an established and leading development bank of the country.
Mission:
To be a first choice of the customers by providing effective services, safety and
satisfaction.

Values:
MDBL always operate its function on the basis of following values:

Customer services, securities and respect

Transparency in operation
Professionalism in management
Corporate governance in organization

Capital Structure of HBBL

Capital Structure
1. Authorized Capital: Rs.20,00,00,000

2. Issued Capital : Rs.10,00,00,000

3. Paid Up Capital: Rs.7,00,00,000

Objectives:
To support socio-economic development of the country by extending
credit to productive for their financial benefits.
To ensure security and effective benefits to the depositors' deposit and
investors' capital
To ensure availability of fund to establish, develop, extend and
improve productivity by accepting deposits and providing loans.
To provide trustable banking service to the Industrialist, trader,
professionals, farmers, unions, organizations and whole citizens.
To develop industrial, tourism, trade and agriculture sectors of the
nation
To use the available labors and capital resources for the development
of local sector.
To work as a dutiful organizational citizen and to help in environment
conservation and social development.
Future Plan:
MDBL aims to expand its branches in order to facilitate customers. So it is going
to open its branches in different places in order to provide banking service to all
those who are deprived.

3.2 Services Provided by HBBL

Deposit:
The customers can open Current Account with NRs. 5000/- only
FREE Counseling for the service.
As per requirements of the customer, extra facilities will be provided.
Unlimited withdrawal.
Personalized service like telephone enquiry of balances by authorized
person.
Simplified Cheque Payments.

Call Deposit Account:

In order to make deposits of corporate bodies, productive call deposit account is
introduced. This scheme is mainly for the corporate deposits from which the
money can be withdrawn at any time. The interest rate also very negotiable.

Account can be opened with minimum NRs. 50,000/- balance.

4.5% interest on daily balance.
Unlimited withdrawal is possible.
As per requirement of the customer, extra facilities will be provided.

Fixed Deposit Account:

Account can be opened with minimum NRs. 5,000/- balance only for
minimum 1 month duration up to variable time period.
Negotiable & attractive interest rate.
Loan can be issued against the deposit receipt in case of cash required before
maturity with only extra 2% more.
Table.2
Interest rates
Interest Rates according to the duration on deposit
Duration
Interest Rate
1 Month
7.25%
3 Month
7.5%
6 Month
9.0%
9 Month
9.5%
1 Year
13.0%
2 Year
13.5%
3 Year and above
Negotiable
Normal Saving Account:

The customers open Saving Current Account with NRs. 1000/- only
Competitive return can be gained.
7.25% interest on monthly minimum balance.
Withdrawal of Rs. 5,00,000/- on a single day.
For withdrawal up to 10,00,000/-, 3 days prior notice is required.

 Rs 10,00,000/- withdrawal within a week.

Account can be opened with minimum NRs.25,000/- balance only.

8.5% interest on daily balance.
An accidental insurance coverage of NRs.2,00,000/Very useful for business oriented people to carry out daily transactions

as interest gain are possible on daily balance.

Attractive souvenir as present for the Account Holders, subject to
limited stock.
The customers can open Current Account with NRs. 500/- only. 8.5%
rate of interest daily.
Free Accidental Insurance up to 1,00,000 or four times of deposited
amount. 75% amount of account can be withdrawn freely.
Privileged Account Holder can be provided in the feature.
Only for the children below 16 years.

3.2.1 Loan and Advances

Corporate/Project Loan:
Metro

Development

Bank

Limited

will

provided

the

Corporate/Project Loan along with the counseling facilities to the

renowned organization for the upliftment and brooding the new
business with proper planning.
The variable length term loans are available according to the nature of
the project.
Reasonable interest Rate with contemporary market will be applied.
Working Capital Loan:
To fulfill the economic crisis during the daily transactions due to the
lack of working capital, Metro Development Bank Limited will

provide an easily accessible Working Capital Loan with minimum

Interest Rates.
The Interest Rates are decided according to the amount & duration.
Because of highly experienced management team, the need of
working capital to business community will be realized in no time and
action will be forwarded according.

Overdraft facility:
To fulfill economic crisis during daily transactions for business people
due to lack of working capital, Metro Development Bank Limited will
provide an Overdraft Facilities.
The money receipt daily by the business people can be deposited in
their accounts so that the Interest will decrease.
In case of term overdraft, the business people can reduce their loan
amount and can be secured for their business.
Different Types of Loan Provide by MDBL
Home Loan
Purpose: Purchase of land for construction of house/renovation of old
house/construction of house/purchase of house.
Eligibility Criteria: Those or member of joint family having proven income to
service the loan including those working abroad.
Age below 58 years.
Tenure of Loan: Up to maximum 15 years.
Interest Rate: 9% to 11% for 1 Year to 15 Years.
Service Charge: Minimum 1% upfront.
Security: Regular mortgage of the property itself under finance of decided by
insurance coverage for the building under finance.
Processing Time: Minimum 3 working days from the date of receipt of required
documents.
ii. Auto Loan
Purpose: Purchase of brand new or Secondhand Car or Jeep for private use.
Quantum of Loan: Minimum-Rs. 5 lakh.
Maximum-Rs. 35 lakh.

Eligibility Criteria: Individual having proven income to service the monthly

installment.
Tenure of Loan: Maximum -05 years
Minimum for upto 1 year.
Rate of Interest: Minimum 9% to 11%
Service Charge: Minimum 1% upfront.
Security: Registration of vehicle under Finance and/or as decided and insurance
coverage.
Mode of Disbursement: Directly to supplier of the vehicle.
iii. Education Loan
Purpose: To pursue higher degree of B.E/B.B.S or equivalent or more for deserving
student.
Eligibility: Those students who is enrolled for above course.
Quantum of Loan: 60% of total amount of full study or Rs. 1.00 million whichever
is lower.
Tenor of Loan: Maximum -07 years after completion of study.
Rate of Interest: 12% to 13%
Service Charge: Minimum 1% upfront.
Security: Registered land or property, wroth shall be at least 150% of loan amount.
Processing Time: Minimum 03 working days from the date of receipt of entire
doer.
Mode of Disbursement: Directly to applicant for payment to College/University.
iv. Foreign Employment Loan
Purpose: To meet the requirement of those seeking foreign employment.

Eligibility: Nepalese youth seeking foreign employment after obtaining VISA.

Quantum of Loan: Maximum -03 years.
Rate of Interest: 11% to 13%
Service Charge: 1% upfront.
Security:
o Mortgage of landed property.
o Personal Guarantee of 2nd party.
o Counter Guarantee of manpower Company.

Table 3
Interest rates on Loan and Advances
LOAN AND ADVANCES
Loans and Advances

Prime
per Others Per
annum
annum
10%
13%
11%
14%
11%
13%
12%
14%
11%
14%
As per consortium decision

Overdraft & Working Business

Others
Capital
Term Loan
Mfg. Companies
Others
Hire Purchase (Commercial)
Consortium Loan
Consumer Loan:Home Loan
10%
13%
Foreign Employment 11%
14%
Loan
Auto Loan
10%
13%
Education Loan
12%
14%
Travel Loan
12%
14%
Medical Loan
11%
14%
Social Loan
12%
14%
Retirement Loan
11%
14%
Loan Against NPR Fixed Deposit of HBBL
Plus 2%
Loan against NPR Fixed Deposit of other Banks & Financial Plus
2%
Institutions
(Min.9%)
Loan Against Govt. Guarantee
9.50%
Loan
against Bank
9.50%
Financial Institution
10%
Financial Guarantee
Contract Loan
12%
14%
Real Estate Loan
10%
14%
Himchuli Wealth Plus Loan
11%
14%
Deprived Sector Loan
12%
14%
Wholesale Lending (Deprived)
9%
Professional OD
10%
13%
Share Loan
12%-14%
Other Loan
14%

Other Service
Bank Guarantee
Table 4
Commission Rates on Guarantee
TYPES OF GUARANTEE
Bid Bond
Performance Bond
Advance Payment Guarantee
Other Guarantees

COMMISSION RATE (PER ANNUM)

1.00%
1.40%
1.80%
Negotiable

Remittance Service
Share Application Collection Services

3.3 Various Departments of MDBL

MDBL is small entity has got various departments under it. All energetic and
dedicated members of MDBL are involved to make the organization stronger. Each
member of various departments is cooperative and helpful. Even though it is small
organization it is able to provide more and more services to its customers.
Mainly the function of MDBL is divided into two major departments:
Credit Department
Operation Department

3.3.1 Credit Department

The main task of the bank is not only to collect the saving. If the collected money
of the bank is invested in a right way, than only the bank can survive more. The
credit department is also known as the back bone of the bank. Credit Department is
always ready to grant the loan to those customers who want to invest the money in
some responsible places. The bank should be very careful while granting the loan
because various type of risk involved in it. In order to minimize the risk the bank

keeps collateral in its favor, take guarantee of creditable institution (CI), also
taking the help of insurance company and consultancy.

3.3.2 Operation Department

Operation Department has its own important in all banks. It is also called as cash
maintenance department. The daily transaction of cash inflow and outflow is
recorded by this department. This is a very sensitive department in terms of cash.
The teller comes under it which involves in day to day transaction of cash.

Customer Service Department (CSD)

Customer service department is one of the most important departments of the bank.
This department plays vital role in attracting the customers. The entire customers'
relate work is done in this department, like opening account, counseling with
customers about the services provided by the bank, making statement, cheques,
receiving the phone and many more other task. Customers while enter into the
bank, the first place they visit will be CSD. This department must always be ready
to help the customers and convincing them to work with the bank. This department
also helps customers to fill up the cheques, deposit slips and other various forms.
The remittance service is also provided by this department. Under remittance
service is also provided by this department. Under remittance service it looks after
the codes brought by the customers, as remittance service provides benefits to the
bank.

Remittance Service
Remittance is transfer of money by foreign workers to their home country. It is the
major source of income for Nepal. It covers large percentage of its national
income. Remittance transfer can also promote access to financial and social
inclusion. As remittance receiver often have a higher prosperity to own a bank
account, remittance promote access to financial services for the sender and
recipient, an essential aspect of leveraging remittance to promote economic
development. Almost all the banks are providing the remittance services. In fact,
the real truth behind the success of banking industry is only remittance. The
number of people going outside is increasing day by day in search of opportunity.
Previously, people use to send money to home by Hundi or with other's hand which

was risky. There was chance of lost of money and there were many case of lost as
well. Now people are becoming aware about remittance services provided by
banking institutions and now they are using this services which lesson the chance
of lost and it increase the profit of the banking institution as well. The function of
this department is to remit and receive the fund. This department is one of the
income generating departments in the bank. MDBL is providing this service by
transferring fund via electronic media effectively and efficiently. It is servicing the
customers through the corporation of different money transferor such as IME and
different others.

3.4 Board of Directors of MDBL

Table 5
Board of Directors of MDBL
S.No
1
2

Name
Dr. Puspa Raj Sharma
Mr. Shiva Prasad Parajuli

Designation
Chairman
Director

Dr. Nanda Shrestha

Director

4
5
6
7

Mr. Narayan Baral

Mr. Kabiraj Poudel
Mr. Ashok Man Kapali
Mr. Surya Prasad Tiwari

Director
Director
Director
CEO

Group
Reader (Finance) TU
Business man and
social worker
Business man and
social worker
Social Worker
Social Worker
Business man

Table 6
Staff Detail
Staff Details : MDBL-Newroad Pokhara
S.No. Name
Designation
1.
Surya Prasad Tiwari
CEO
2.
Mr. Dev Raj Poudel
Deputy manager
3.
Mr. Sujan Parajuli
Assistant manager
4.
Mr. Dirga Prasad Adhikari
Assistant
5.
Mr. Kamal Poudel
Assistant

6.
7.
8.
9.
10.

Miss Mukta Khati

Mr. Kamal B.K
Miss Sharadha Poudel
Miss Kriti Rana Magar
Miss Yog Maya Gurung

Assistant
Jr. Assistant
Jr. Assistant
Jr. Assistant
Jr. Assistant

CHAPTER IV
BRIEF INTRODUCTION OF ACTIVITIES DONE

4.1 Introduction of Operation Department

Operation department is the heart of every banking institution. Operation
Department has vital role for financial institution to carry on daily transactions
effectively and efficiently. Operation department is also known as "Cash
Maintenance Department". The basic function of Operation Department is to keep
record of cash outflows and cash inflows of everyday. This department is also often
called as information desk as customers first contacts in this department for their
queries. Operation Department is lifeblood of the financial institution and can also
be considered as main door of organization through which you enters in and known
everything about the entire organization. Therefore the image and status of the
bank depends upon the effective functioning of this department.
Upon my arrival at MDBL, I was assigned to Operation Department by branch
manager. Operation department deals with various of activities such as dealing
with customers, answering their queries, marketing to various banks products,
issuing application firm for opening new accounts, responding to telephone calls,
providing information about money transfer (remittance services), providing
balance certificate, issuing bank statement, accepting cheque book, developing and
issuing cheque book, receiving mail and delivering it to concerned department and
so on.
Various information about the bank goes from his department to customers. As the
first information about the bank goes from this department the image and
reputation of the bank depends upon the effective functioning of this department.
Customer should be handled effectively as it is said "the first impression is the last
impression". This department is mainly responsible in assisting customers to
explore the services offered providing customer's services during and after the
purchase of the services and providing customer's services during and after the
purchase of the services or products. Finally, we can conclude that Operation
department has vital role in building good relationship with ultimate customers.

4.1.1 Activities carried out by the Operation Department

During the period of internship. I had performed different types of jobs in
Operation Department. They are as follows:
Providing information about the services offered by the MDBL.
Motivating customers for opening different types of account.
Fill up the for opening new account and deposit slip for cash deposit
and cheque deposit.
Providing various form and vouchers (i.e. withdrawal slips, opening
new account and closing the existing account and changing the
account).
Providing account statement as requested.
Cheque printing and binding and remittance.

4.1.2 Account Opening

For the purpose of collecting funds, MDBL have got account opening service as
accepting deposit from customers. Opening an account is entering into a kind of
contract with the bank. HBBL provide various information about the service and
terms and conditions before opening the account. Only then a customer is forced to
open an account.

4.1.3 Different Type of Accounts Requires Different Documents

Documents Required for Personal Account
a. Single Account:
Identification of account holders (2 copies of citizenship certificate)
b. Joint Account:
Identification of account holders
Photographs (2 copies)

c. Minor Account
Birth Certificate or school certificate or hospital or minor Identification of minor's
guardian (account operator)
Photographs of minor and account operator (2 copies of each)

Document Required for Company Accounts

a. Private Limited / Public Limited Company:
Company Registration
Income tax
Board resolution
Article of Association
Memorandum
Identification of account operator
Photographs (2 copies)
b. Partnership Firm:
Firm Registration
Income tax
Partnership deed
Identification of account operator (photographs of citizenship certificate)
Photograph of account operator (2 copies)
c. Joint Venture Company:
Photocopy of company Registration Certificate with pan number
Income tax
Board Resolution
Memorandum
Article of Association
Identification of account operator (photocopy of citizenship certificate)
Photographs of account operator (2 copies)

Joint Venture Agreement

4.1.4 Procedure of Opening New Account in MDBL

The first thing to be done is providing the information to customers about the
different account or deposit offered by the HBBL along with its feature and
prerequisite requirements. Second thing to be considered is that application form
should be filled by the applicant or by the help of CSD and the approved is done by
authorized staff.

Costumer should go through following procedure for opening a new account in

MDBL:
a. Application on a Prescribed Form
Each and every bank has prescribed form for opening different account. The
customer or application is required to maintain his/her name, full address,
occupation, specimen signature and photocopy and undertakes to comply with the
bank's rules time to time for conducting of the account .
b. Specimen Signature
After application on a prescribed form, next phase is specimen signature. Along
with the application on a prescribed form and proper introduction, the application
must also give his specimen signature to the bank in the prescribed form/card.
Specimen signature is kept in system of the bank scanning the specimen card
including signature of the account operator. The signature of the account holder on
cheque issued by him/her is compared with his/her specimen signature. If the
signature differs the banker rejects the cheque.
c. Tendering of Deposit of Money
This is the last step for opening new account. The application or ongoing account
holder should deposit some amount in cash or cheque at the time of opening new
account. After opening an account, customer must maintain a minimum balance,
for instance Rs. 5000 for current account, Rs.1000 for normal saving account and
like on.

4.1.5 Account Opening Function

Account Opening
Customer
Function
Receive
Cheque and compliance as per
Verify the attached document
CSD
Generate
the account number by registering in registering in register book
Prepare voucher and deposit the amount to related account

Forward the document to Head of the Department

Account opening function of head of the department

Reconfirmation of account opened
Verification of document
Approve the signature scanned
Filing the document properly

Fig.3 Account Opening Function

4.1.6 Account Closing Function

Account Closing Function

Customer
Receive application from
Verify the signature and other document (cheque, citizen certificate.)
CSD

Forward the document to Head of the Department

Account Closing Function of Head of the Department

Receive closing files
Check entire documents
Specify the closing charges
Circular related department of give instruction to CSD

Fig.4 Account Closing Function

As per the request of the customer the account opened with the bank is closed by
the bank. There is no certainty that the accounts opened remain in the bank all the
time. A situation may arise to close the accounts operated in the bank. In fact, there
is a contractual relation between two parties, customer and bank. So if one side
breaches tge contract the other party has a right to close the account. The current
and saving account have the same process of closing the account. For account
closing, the customer need to write an application in standard format specifying the
reason of closing the account and the application is forwarded for clearing (if the
account is company type) to head of the department. As per the remaining is refund
to the customer.

4.1.7 Procedure of Closing Fixed Deposit Account

The procedure of closing fixed deposit is quite different than that of closing other
deposit account. The fixed deposit account is opened for the fixed period of time so
after the expiry of the fixed period the relation between the bank and the customer
comes to an end automatically or the fixed deposit account end automatically. If
the customer with the receipt of the fixed deposit visit the bank after the fixed time
is over, can get the total amount of the capital with total interest of the period
which then close after its due. But if customer wants to keep it continue, he/she
may renew it. the deposit will transfer to the willed person on the death of the
account holder. If the willed person too is dead or he/she had co willed any one, the
person can claim the deposited amount under section 23 of the Commercial Bank
Act 2031 (1974). But without presenting the documents including the evidence of
the customer's death and other necessary documents one can't claim on the deposit.

4.1.8 Account Statement

Account statement is provided to the customer on the request of account holder. It
is recorded in the statement record book of the bank. For the corporate account
holders, statement is provided on monthly basis. Account statement is collected by
the account holder or agent of account holder in order to get inform about the
interest collected and tax paid on interest and for other different purpose. Bank

charges fee in case of printing duplicate statement. This all charges are charged in
order to protect from the misuse of statement and customer's safety as well.

4.1.9 Cheque Issuance

After opening an account, customer is provided cheque book according to the
account type and rules and regulation of the bank so that customer can withdraw
money as they needed.
Cheque Issuing Function
Cheques are the most important and valuable thing in the bank so
CSD operator is more careful while issuing cheques.
Customer fills the cheques requisitions slip (containing number of
cheque required along with his/her signature) and provide it to CSD.
CSD operator verifies the cheque slip and print the cheque book
through system as customer requirement.
Cheque book are recorded both in system as well as cheque record file
book so that it helps in maintaining cheque inventory.
Cheque book is provided to the account holder or their agent by
verifying the proper identification.

4.2 Financial Data Analysis

The main purpose of this section is to study and analyze the given data, which are
related to deposit of different types of account and total amount of lending in
different sector of HBBL.

4.2.1 Deposit Collected in Different Accounts

The following table and chart shows deposit collected in different types of account
from June 2010 to August 2010. It shows the deposit collected in different types of
account in previous month and during my intern period.

Table 7
Total Deposited of MDBL in Different Months
Types of Deposit
Current Account
Normal Saving
Metro Sunaulo Bachat
Special Saving Account
Metro Khutruke Bachat
Metro Nari Bachat
Call Deposit
Fixed Deposit
Total Deposited Amount

June
Amount (Rs.)
3,50,780
2,56,532
2,88,990
3,80,976
9,876
2,90,897
4,53,712
4,65,000
24,96,763

July
Amount (Rs.)
3,46,545
3,08,688
2,67,645
3,92,840
10,880
3,03,060
4,60,480
4,80,500
25,70,638

August
Amount (Rs.)
3,40,770
3,30,200
2,62,380
4,05,765
11,767
3,18,830
4,63,105
5,05,500
26,38,317

In the above figure and table, we can see that in the month of June, the amount
deposited in Current A/C was high as compared to other months. The amount
deposited in Current A/C is lower than in other months but it is in increasing trend
up to August and in June, the amount deposited in Normal Saving A/C is lower
than in other months but it is in increasing trend up to August. The amount
deposited and Fixed Deposit A/C is in increasing trend throughout the month.
Similarly, the amount deposited in Metro Sunaulo Bachat, Special A/C, Metro
Khutruke Bachat and Metro Nari Bachat is in increasing trend throughout the
month.
Lastly, we can conclude that the amount deposited in Current A/C and Metro
Sunaulo Bachat seems quite unsatisfactory as because it is in decreasing trend. The
amount deposited in Call Deposit, Special Saving A/C, Fixed Deposit, Normal
Saving, Metro Khutruke Bachat and Metro Nari Bachat is gradually increasing
throughout the months. The amount deposited in Normal Saving is very high as
compared with other deposits. Therefore, it seems much satisfactory than other.
Moreover, we can see that total deposited amount seems very satisfactory because
it is gradually increasing throughout the months.

4.2.2 Comparison of Total Deposit and Total Lending

The following table and graph shows total deposit and total lending of Metro
Development Bank Limited (MDBL).

Table 8
Comparison of Total Deposit and Total Lending of MDBL
S.No.
1
2

Particulars
June
July
Total Deposit
24,96,763
25,70,638
Total Lending
25,60,886
25,20,578
Comparison of Total Deposit and Total Lending

2700000
2650000
2600000
2550000
2500000
2450000
2400000
June

July

August

Month
s

August
26,38,317
25,89,784

Figure 6
Comparison of Total Deposit and Total Lending of MDBL

The above table and figure shows the total deposit and total lending of MDBL
during the period of three months. By comparing total deposit and total lending we
can see that the total deposited amount is higher than lending amount in July and
August but inverse in June. However both total deposit and total lending are in
increasing trend throughout the months. The increasing trend of total deposit seems
quite satisfactory that that of total lending. But, MDBL still should heavily focus
on the deposit to maintain the increasing trend by attracting more potential
customers through providing attractive schemes in deposits and should make a new
competitive as well as strategic plan to maintain or increase in the increasing trend
of lending by introducing or adding other additional new scheme in the existing
range of the loan services.

CHAPTER V
SUMMARY, CONCLUSION AND RECOMMENDATION

5.1 Summary
This study is completely focused towards the mode of operation of customer
service department of MDBL. The study aims at diagnosing the problem being
faced by the bank in CSD and to identity different types of deposit offered by
MDBL, procedure of opening new account, changing existing account and closing
the account and so on. This analysis will not only help to know the process of
operation functioning in HBBL but will also be a complete diagnosis regarding
other important related function performed by particular departments.

5.2 Conclusion
It was unforgettable experience of doing intern at Metro Development Bank
Limited (MDBL). It was a good opportunity to build up my exposure at MDBL.
During the internship period the real life job experience was achieved which is
very important for any outgoing students. They have to compete in competitive
market and should prove themselves. Internship program is a gateway for their
success. During my intern period, the theoretical knowledge which was learned in
the college was implemented practically.
The working environment of MDBL is quite satisfactory. MDBL with slogan
"Simply Trusted Banking Partner" has been trying its best to add milestone in
Nepalese Banking sectors. It has adopted many innovative plan and scheme to
serve its ultimate customers. MDBL has today become a landmark which is able to
generate healthy profit. It has good performance and image building in the
customers' mind though it is in growing phase. The reason behind its great success
is that all staffs in this bank are dedicated towards the customers' satisfaction and
all staffs are very sincere and loyal with their work.

Some of the finding of the study are:

MDBL accept deposits with various new schemes from the pubic giving
attractive rates.
MDBL also grant loan and advances to its customers charging reasonable
rates.
The customer inflow in MDBL is very high. Both cash deposit and cash
withdraw is done in continuous manner. The daily customer inflow for
opening new account is 8-10 people. The customer inflow in MDBL is
growing because of better services, dedicated staffs, wide range of services
with different scheme and evening counter services.
The inward remittance in MDBL is very high. Moreover, the remittance
comes mostly from Malaysia, Dubai, Qatar, Iraq, UK, Saudi Arabia, Israel,
USA and so on.
The amount deposited in Normal Saving Account seems quite satisfactory
because it is in increasing trend.
The total that of lending is in increasing trend but its increasing trend is quite
lower than that of total deposited amount. So, MDBL should focus on
lending with new future plan.
Overall, the study shows that the financial health of MDBL is quite satisfactory
and it is able to gain handsome return from its business by providing modern
banking services. Another significant thing is that the study shows tie importance
of the internship program. It will help the students to be full aware of the real
world practices before entering into the market as fresher and succeed in their
future endeavors.

5.3 Recommendation to the Organization (MDBL)

Some recommendation that could add strength to the bank core values are:

 Though the bank has categorized the function of different departments, there
is no separate department for amount and remittance service. Everything
about the remittance from the CSD is impossible. This creates the both the
customers and staff and it take enough time as well which hampers the
effectiveness of bank. The inward remittance in this bank is very high so to
maintain this, there should be separate department for remittance services.
Since most of the public have great on this bank, they have to have to retain
these faiths by providing better services such as minimizing their lengthy
procedures while taking deposits and granting loans and advances. The bank
should make plan about some potential schemes to motivate and attract the
potential customers.
The banking software (Pumori Plus) used by the MDBL is outdated. So the
latest banking software such as "Finacle" developed by Infosys, India should
be introduced so that the services can be provided in efficient and effective
manner to its customers.
The bank should conduct research and development program to study and
analyze about its product and another important thing is that bank should
formalize "Situational Analysis" that will help management team in
understanding the bank's current situation (Bank's Strength and Weaknesses)
or accurate picture of the bank i.e. how the bank is doing in comparison to
its competitors.
Marketing promotional tools of MDBL is not much satisfactory. Because of
lot of people are unaware of number of Deposit Scheme i.e. Metro Sunaulo
Bachat Youjana and Call Deposit and Credit Facilities i.e. Service
Retirement Loan. Contract Loan and Metro Wealth Plus provided by bank.
So frequent advertising in newspapers, FM radio and visual advertisement in
Television (T.V) etc. means should be considered to attract more customers.
HBBL sometimes should conduct market research with various new

marketing programs to get customers' view about its product and its position
in the current market.
In this way timely and effectively implementation of this corrective action would
lead the bank toward continue and future program.

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