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Organization Study Undertaken

At

Nepal SBI Bank Ltd.

Submitted in partial fulfillment of the requirements for the award of the


Degree of Bachelor of Business Administration
Of Christ University
By

Riwaj Chand

Reg. No. 1523630

Under the guidance of

Prof. Roy Mathew

Department of Management Studies


CHRIST UNIVERSITY
BENGALURU
2017
CERTIFICATE

This is to certify that Riwaj Chand, Reg. No. 1523630 is a bonafide student of Bachelor of
Business Administration of Christ University, Bangalore and he has prepared and submitted
the Internship report, titled An Organizational Study Undertaken at Nepal SBI Bank Ltd., in
partial fulfillment of the requirements for the award of the Degree of Bachelor of Business
Administration (Finance and International Business) of Christ University, Bangalore, for the
academic year 2016-2018.

Place: Bangalore Dr. Jyoti Kumar

Date: Associate Dean


School of Business Studies and Social Science
CERTIFICATE

This is to certify that the project report, titled An Organizational Study Undertaken at Nepal
SBI Bank Ltd., submitted to Christ University, in partial fulfillment of the requirements for
the award of the Degree of Bachelor of Business Administration is a record of original study
undertaken by Riwaj Chand, during the period 20162018 in the Department of Management
Studies at Christ University, Bangalore, under my supervision and guidance. The Internship
report has not formed the basis for the award of any Degree/ Diploma/ Associate ship/
Fellowship or other similar title of recognition to any candidate of any University.

Date: Prof. Roy Mathew


DECLARATION

I, Riwaj Chand, hereby declare that the project report, titled An Organizational Study
Undertaken at Nepal SBI Bank Ltd., submitted to Christ University, in partial fulfilment of
the requirements for the award of the Degree of Bachelor of Business Administration is a record
of original and independent study undertaken by me during 20162018 under the supervision
and guidance of Prof. Roy Mathew, Department of Management Studies and it has not formed
the basis for the award of any Degree/ Diploma/ Associate ship/ Fellowship or other similar
title of recognition to any candidate of any University.

Date: Riwaj Chand


ACKNOWLEDGEMENTS

First of all, I would like to thank Christ University Bannerghatta road campus for giving chance
to prepare this report for the partial fulfillment of BBA. I wish to express my cordial thanks to
the associate dean Dr. Jyoti Kumar. Also my thanks goes to Mr. Tej Bahadur Thapa, Branch
Manager of Nepal SBI Bank ltd. Gaushala for providing me an opportunity to do my internship
and Project work in Nepal SBI Bank ltd. I would like to thanks Usha Risal (Operation
Incharge), and all the team of the Nepal SBI Bank ltd. for their continuous helps and support
for the preparation of this report. I express my gratitude to Prof. Roy Mathew, for his patent
and continuous guidance with valuable comments and kind support to me all way through this
report.

Last but not least, my paramount dedication is to my parents who have been uninterrupted
sources of sustain for me. Likewise, special thanks to my friends and relatives for their support
and cooperation.

Riwaj Chand
List of Tables

Table No. Description Pg. No.

1 Table showing composition of deposits 14

2 Table showing management team 22

3 Table showing board of directors 23

4 Table showing earnings per share 34

5 Table showing dividend per share 34

6 Table showing net profit and advances 35

7 Table showing Net profit/total assets 35

8 Table showing return on assets 36

9 Table showing return on shareholder equity 37

10 Table showing Liquidity ratio 38

11 Table showing cost to income ratio 39


List of Figures

Fig. No. Description Pg. No.

1 Figure showing consolidated balance sheet 12

2 Figure showing composition of deposits 14

3 Figure showing organizational structure 21

4 Figure showing corporate governance structure 25

5 Figure showing risk structure 26

6 Figure showing earnings per share 34

7 Figure showing dividend per share 35

8 Figure showing net profit/loans and advances 35

9 Figure showing Net profit/total assets 36

36
10 Figure showing return on assets

37
11 Figure showing Return on shareholder equity

37
12 Figure showing liquidity ratio

38
13 Figure showing cost to income ratio
Table of content

S.No. Description Page No.

1 Introduction 1-20

1.1 Industry Profile (Banking and Finance)


1.2Company Background (Nepal SBI Bank Ltd)
1.3Vision, Mission and objectives
2 Organizational Structure and Design 21-33

3 Key Ratios 34-38

4 Functional areas 39-47

5 Problem Identified and Solved 48-50

6 SWOT Analysis and Challenges of NSBL 51-53

7 Recommendation 54-55

8 Conclusion 56

References 57
1. Introduction

1.1 Industry Profile (Banking and Finance)

In general, Bank is a financial institution which deals with the monetary


transaction. The major function of the bank is to accept deposits and providing
loans. The bank attract deposits from various investors by providing certain rate
of interest, and investing the accumulated funds as loans to others who are in need
of fund by charging slightly higher rate of interest than they provide to the
depositors. Bank acts as an intermediary who bridges the gap between the savers
of fund and the users of fund. Basically, banks are those financial services
especially credit, saving, and payment services and perform the widest range of
financial functions of any business firm in the economy.

In the broader sense, a bank is a financial intermediary that performs one or more
of the following functions. Safeguards and transfer fund lend or facilitates
lending, guarantees creditworthiness and exchange money. Such Institutions as
commercial banks, central banks, saving banks, trust companies, and life
insurance and investment bankers provide these services.

Banks are the most important pillars of an economy or economic system. They
actually do not create money but they mobilize money which might be termed
as capitalization of money. The ultimate source that creates money cannot be
other than employment. Banks derive profit mostly from the differential between
the level of interest it pays for deposits and other sources of funds, and the level
of interest it charges in its lending activities. This difference in referred to as the
spread between the cost of funds and the loan interest rate.

As pillars economic system, there are entities as a Central Bank, Commercial


Banks, Development Banks and other Financial Institutions.

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Definition of Bank

The definition of a bank varies from person to person and country to country.
Some of the definitions of the Bank are given below.

Bank is a financial institution, which provides financial services that may be in


the form of accepting deposits, advancing loan, providing necessary technical
advices, dealing over foreign currencies, remitting funds, etc. -Nepal Rastra
Bank Act

Any institution offering deposits subject to withdraw on demand and making


loans of commercial or business nature is a bank. -U.S.Law

Bank is an organization established for the purpose of exchange money deposit


lending money and participation in transactions. -Commercial Bank Act Nepal
(2031)

Evolution of Banking Industry

During the early period, private individuals mostly did the banking business. As
public enterprise, banking made its first appearance in Italy in 1157 when the
Bank of Venice was established. History shows the existence of a Monte in
Florence in 1336. The meaning of Monte is given in Italian Dictionary as a
standing bank.

As early, the banking business was carried out by the shopkeeper of Barcelona.
Meanwhile the local government restricted shopkeeper to operate this business
until they had given sufficient security. During 1401 a public bank was
established in Barcelona. It used to exchange money, receive deposits and
discount bills of exchange. When the word bank is used it is meant for
commercial bank. Actually word bank was originated from Germany though

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some people think it to be of French and Italic origin .Before 1960 there was no
such word as banking. However, in the temple of "Babylon" the practices of
safeguarding and saving flourished as early as 2000 B.S. Chanakya in his
Arthashastra written in about 300 B.C., mentioning about the existence of the
powerful guilds of merchants bankers received deposits, advance, loans and
hundies (letter of transfer).

Banking, subsequently, the establishment of The bank of England in 1694 AD


as the first central bank contributed a great deal to the history of the banking.
Many countries quickly followed England and established a central bank of their
own. But as the central bank is endowed with the special rights and authorized, it
lacked a direct interaction with the mass. Consequently, soon after, every country
felt a pressing need of the commercial bank. (Saunders and million, 2007)

History apart, it was the Merchant banks that first evolved the system by trading
in commodities than money. They used to do their trading activities by remitting
the money from one place to another place. For this they used Hundies. In India
such merchant bankers were known as seths. The next stage in the growth of
banking was goldsmith. His business was to take special precautions against theft
of gold and jewelry. He started valuables he issued a receipt, which in turn
became like a cheque as a mode of exchange.

Origin of Bank in Nepal

The modern history of banking in Nepal does not have a long history. It is still in
its infancy stage. It was flourished after financial liberalization policy adopted in
1980s. While talking about the actual history, it is assumed that the history of coin
age began from around 5th century A.D. Around the 12th century, silver coinage

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was in practice which made the scope of trade wider. At the end of 14th century,
the term Tanka Dhari meaning Money Dealer was used.

In 1877 AD, Prime Minister Ranoddip Singh introduced financial and economic
reforms. Tejarath Adda was established at that time to provide credit facilities
to the general public. Credit facility was given by Tejarath Adda on the basis of
collateral of gold and silver. Government employees would get credit at ease
because government would pay them less to deduct the credit amount. Chandra
Shamsher extended the services of Tejarath Adda outside valley. TejarathaAdda
extended credit facilities to more and more general public and did not accept
deposit from public. Due to this reason, TejarathaAdda finally faced a crisis.
People started borrowing from money lenders who charged a high interest rate
and other dues.

Although Kaushi Tosh Khana was established during the regime of Prithivi
Narayan Shah, Tejaratha Adda is regarded as the foundation of modern banking
in Nepal.

In 1937, Nepal Bank Limited (NBL) with the co-operation of Imperial Bank of
India came into existence. NBL played dual role of commercial bank as well as
central bank until 26th April, 1956, on which date, Nepal Rastra Bank (NRB) was
established. NBL was a semi government bank. Rastriya Banijya Bank (RBB)
was established in 23rd January, 1966. Nepal Industrial Development Bank
(NIDC) was established as development bank in 1959 and Agricultural
Development Bank (ADB) was established in 1968. Since in 1984 ADB has also
been allowed to do commercial banking in selected urban areas with the aim to
mobilize resources domestically and channel funds to the agriculture and rural
sector.

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Nepal adopted financial liberalization policy in 1984 by amending Commercial
Bank Act 1974. Liberalization was adopted to welcome private sector in banking
industry and to increase competition among them.

Present Scenario of Banking Industry in Nepal

Prior to liberalization, at the age of 47 (1937-1984) years of banking


industry, there were only four players in the industry. They were NBL,
RBB, NIDC, and ADB. Modern banking in Nepal started from the
establishment is Nepal bank limited. Under the supervision and regulation
of Nepal Rastra Bank, various banks and financial institutions have come
into existence. Nepal Rastra Bank's liberation of the Nepalese banking
industry leads to the establishment of joints venture banks in Nepal. The
status of the various financial institutions in Nepal is:

28 Commercial Banks (class A)

73 Development Banks (class B)

48 Financial companies (class C)

41 Micro Development Banks (class D)

The pace of financial liberalization actually started when the government allowed
the entry of commercial banks in joint venture with the foreign bank. As a reform
measure initiated in the year 1984, government allowed ADB branches to conduct
commercial banking business in the urban areas. A Credit Information Bureau
(CIB) was established in 1989 under the aegis of Nepal Bankers Association with
the objective of disseminating credit information among its member institutions.

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Nepal Arab Bank Limited (NABIL) was the first joint venture bank established in
1984 A.D. joint ventured with United Arab Emirates Bank. Then two other bank,
Nepal Indosuez Bank Ltd. (Present: Nepal Investment Bank) with the Indosuez
Bank of France and Nepal Grindlays Bank Ltd. (Present: Standard Chartered
Bank Nepal Ltd.) with Grindlays Bank of London were established in 1986 and
1987 respectively. Himalayan Bank Ltd. joint ventured with Habib Bank of
Pakistan and SBI Bank Ltd. with State Bank of India were established in 1993
A.D. Nepal Bangladesh Bank Ltd. with IFIC.

International Finance Investment and Commercial) bank of Bangladesh was


established in 1933 A.D. Bank of Kathmandu joint venture with SIAM
Commercial Bank Public Co., Thailand was established in 1995 A.D. Nepal Bank
of Ceylon (Present: Credit and Commerce Bank) joint ventured with Ceylon Bank
of Sri-Lanka was established in 1966 A.D. Everest Bank Ltd. joint venture with
Punjab National Bank in 1997 A.D.

Meaning of Commercial Bank

Commercial bank is the term used for a normal bank to distinguish it from an
investment bank. This is what people normally call a Bank. The term
commercial was used to distinguish it from an investment bank. The
commercial bank refers to bank which focus mainly on companies.

A commercial bank is a type of financial intermediaries and a type of bank.


Commercial banking is also known as Business Banking. It is a bank that
provides checking accounts, saving accounts, and money market accounts and
that accepts time deposits. Commercial bank is the term used for a normal bank to
distinguish it from an investment bank or the retail bank. It raises funds collecting

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deposits from business and consumers via checkable deposits, saving deposits,
and the term deposits. It makes loans to business and consumers. It also buys
corporate bonds and government bonds. Its primary liabilities are deposits and
primary assets are loans and bonds. Commercial bank is the oldest bank in the
banking history of the world. In Nepal too, commercial bank in current year
presents a new picture of wider horizons and of new enterprise.

In Nepalese context, Nepal Commercial Bank Act 2031 (1974), section 2(a)
defines A commercial bank is one which exchange money, deposit money,
accepts deposits, grants loans and performs commercial banking functions.

The commercial bank are those banks which perform all kinds of banking
functions as accepting deposit, advancing loans, credit creation, and agency
functions. They supply the financial needs of modern business by various means.
They accept deposits from public on the condition that they are repayable on
demand or on short notice. All that banks established under the Commercial Bank
Act 2031, Company Act 2053 and Central Bank Act 2058 are termed as
Commercial Bank.

Functions of Commercial Banks

The functions of Commercial banks are broadly classified into three types:

- Primary Functions

Collection of deposits under various accounts and issue of loan in different sector
are the primary function of Commercial Bank. The primary functions are based
on following categories:

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Accepting Deposits

The first and most important functions of commercial bank are to accept deposits
from customers under three different accounts. It maintains fixed at the time
account, saving account and current account to provide banking service to
customers. The amount deposited in bank for fixed period is known as fixed
account. The amount deposited under this type of account cannot be withdrawn
before maturity. The deposit in this account pays higher interest in comparison to
other accounts. Under savings, customers can deposits as well as withdraw money
at any time. This account also pays interest but less than that under fixed account.
Similarly, in current account, customers can draw money many times in a day
according to their necessities in which the bank does not pay any interest to the
amount deposited under this account.

Providing Loans

The second important function of commercial bank is to provide various types of


loans in the field of trade, commerce, and industry and even to agriculture sectors.
Commercial banks lend their money to needy borrower for short term, medium
term and long term by charging different rate of interest. Commercial bank issue
credit under the heading of cash, credit, overdraft, loan and discounting of bills of
exchange, etc.

- Secondary Functions

The secondary functions of commercial bank are also known as agency functions.
The bank charges minimum fees for undertaking these functions. The secondary
functions of commercial bank are as follows:

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Collections of Credit

Instruments Commercial banks accept credit instruments such as cheque, bills of


exchange and bank drafts of customers and make payments against them.

Income Receiving and Payment

Commercials banks receive dividend, interest on debentures and bonds of


customers. They also receive and make payments of insurance premiums, rent and
income taxes of their customers.

Purchase and Sale of Securities

Commercials bank purchase and sale the securities like share debentures of their
customers in stock exchange and other capitals markets.

Remittance of Money

Commercials banks remit the money of their customers from one place to another
on their request.

- Contingent Functions

The contingent functions of commercial bank are also known as general utility
functions. It performs the followings types of activities:

Safety of valuable goods as gold, diamonds and documents.

Issue of credit instruments such as travelers cheque, letter of credit, draft,


master cards etc.

Exchange of foreign currency under the direction of NRB.

Publication of monthly and annual journals, bulletins, reports.

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1.2Company Background (Nepal SBI Bank Ltd)

Nepal SBI Bank Ltd. (NSBL) is the first Indo-Nepal joint venture in the financial
sector sponsored by three institutional promoters, namely State Bank of India
(SBI), Employees Provident Fund (EPF) and Agricultural Development Bank Ltd.
(ADBL) through a Memorandum of Understanding signed on 17th July 1992.
NSBL was incorporated as a public limited company at the office of the Company
Registrar on April 28, 1993 under the registration. No.17-049/50 with an
Authorized Capital of Rs.12 Crore and was licensed by Nepal Rastra Bank on
July 6, 1993 under the license No. NRB/1.Pa./7/2049/50.

Nepal SBI Bank Ltd. (NSBL) is a subsidiary of State Bank of India (SBI) having
55 percent of ownership. The local partner viz. Employee Provident Fund holds
15% equity and General Public 30%. In terms of the Technical Services
Agreement between SBI and the NSBL, the former provides management support
to the bank through its expatriate officers including Managing Director who is
also the CEO of the Bank. Central Management Committee (CENMAC),
consisting of the Managing Director & CEO, Chief Operating Officer & Dy.
CEO, Chief Financial Officer, Chief Risk Officer and Chief Credit Officer,
exercises overall control functions with the help of 3 Regional Offices, and
oversee the overall operations of the Bank.

NSBL was established in July 1993 with one full-fledged office at Durbar Marg,
Ktm with 18 staff members and has emerged as one of the leading banks of
Nepal, with 679 skilled and dedicated Nepalese employees working in 62
branches, 7 extension counters, and 3 Regional Offices and Corporate Office.
With presence in 32 districts in Nepal, the Bank is providing value added services
to its customers through its wide network of 85 ATMs, internet banking, mobile
wallet, SMS banking, IRCTC Ticket Online Booking facility, etc. NSBL is one of

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the fastest growing Commercial Banks of Nepal with more than 6.22 lakhs
satisfied deposit customers and over 4.80 lakhs ATM/Debit cardholders. The
Bank enjoys leading position in the country in terms of penetration of technology
products, viz. Mobile Banking, Internet Banking and Card Services. The Bank is
moving ahead in the Nepalese Banking Industry with significant growth in Net
Profit with very nominal NPA. As of July 2016, the Bank has deposits of Rs.
65.21 billion and advances (net) of Rs. 47.54 billion, besides investment portfolio
of Rs.19.29billion. Under the Banks and Financial Institutions Act, 2063, Nepal
Rastra Bank granted fresh license to NSBL classifying it as an A class licensed
institution on April 26, 2006 under the license No. NRB/I.Pra.Ka.7/062/63. The
Authorized capital is Rs. 300 crore and Paid-up Capital is Rs. 235 Crores.

State Bank of India (SBI), with a 210 year history, is the largest commercial Bank
in India in terms of assets, deposits, profits, branches, customers and employees.
The Government of India is the majority stakeholder and has controlling stake in
SBI.
SBI's non- banking subsidiaries / Joint ventures are market leaders in their
respective areas and provide wide ranging services, which include life insurance,
merchant banking, mutual funds, credit cards, factoring services, security trading
and primary dealership, making the SBI Group a truly large financial supermarket
and India's financial icon. SBI has arrangements with over 1,600 various
international / local banks to exchange financial messages through SWIFT in all
business centers of the world to facilitate trade related banking business,
reinforced by dedicated and highly skilled teams of professionals.

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Figure 1: Consolidated Balance Sheet

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Products and Services of Nepal SBI Bank Limited

NSBL is growing up in terms of tenure of its operation. A lot of investment of


both time and capital has been put into bring innovative products and services that
caters the need of its customer. The product and services offered by the bank are
as follows:

Deposit products

NSBL has introduced various personalized products and services that harmonized
different banking requirements of its customers. Designed with arrays of features,
deposit products of NSBL are one of the best in the market. The deposit base
comprises of various types of depositors ranging from general public, business
houses to institutional depositors. NSBL tailor made and personalized deposit
products and services meet the needs in todays fast paced and competitive
business world. The services are characterized as being easy, secure and attractive
modern banking facilitates that provides high returns to the surplus fund, makes
personal banking convenient and efficient thus diversifying the portfolio to best
suit the investment plan. At present the following deposit services are provided by
NSBL:

Swarnim Bachat(Daily Balance Saving)

Ujjwal Bhavisya Bachat Yojan (Recurring Deposit)

Indreni Bachat

Provident Fund Account For Permanent Staff Of Organization

Simple Saving Account

Swastha Bachat Khata

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Baristha Nagarik Bachat Khata

Vishesh Khata

Karmachari Bachat Khata

Current Account

Mahatma Gandhi Scholarship Account

Fixed Deposit

S.No. Deposits F/Y 2014-15 F/Y 2015-16


1 Current Deposits 4.54 5.34
2 Saving Deposits 16.61 21.48
3 Fixed Deposits 28.57 19.14
4 Call Deposits 4.77 5.67
Total 54.59 51.63

Table 1: Composition of Deposits

Figure 2: composition of Deposits

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Loans and Advances

Education Loan

Auto Loan

Home Loan

Mortgage Loan

Mortgage Plus loan

Doctor Plus Loan

Teacher Plus Loan

SME loan for Small and Medium Enterprises

Cash credit

Project Term Loan

Demand Loan

Trust Receipt Loan

Pre shipment Loan

Other Commercial loan

Loan against FD

Other Services

a. Prepaid Card

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b. Online Banking System

E-banking

SMS banking

c. Utility Bill Payment Service

NTC Bill Payment

UTL Bill Payment

LIC Insurance Premium

d. Accounts Department

Clearing

Transfer

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1.3Vision, Mission and objectives

Vision

To be state of the art, customer centric, values driven and professionally managed
bank, committed to high standards of good corporate governance practices,
perpetual enhancement of the wealth of all stakeholders and the society.

Mission

To provide one stop solution to all the banking needs for the customer through a
highly motivated professional and efficient human resource pool. Promoting
Sustainable business growth by providing high quality service, customer care and
ensuring efficient use of Information Technology in a cost efficient manner.
Meeting the expectation of all stakeholders through transparent, true and fair
disclosures and responsive management practices/principles. Strive to fulfill
corporate social responsibility in Nepal with emphasis to growth in business.

Aspiration

To be the most trusted and preferred banking utility/financial service provider in


Nepal.

Objective

The overall strategic goal is to build an open and honest corporate culture and to
develop mutually beneficial relationship with all stakeholders and create value for
them. Nepal SBI bank ltd. Aim to reach strategic goals by:

Caring for customers evolving need and expectations by providing


suitable and tailor made products and services.

Creating a great environment to work in.

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Practicing exemplary governance and accountability

Working harmoniously and in mutual co-operation with the business


partners.

Ensuring reasonable returns on investment for the shareholders.

Investing in local communities in which the bank operates, for the benefit
of society at large.

To provide excellent service to the customer

Provide competitive returns to its shareholders by delivering modern


banking and financial service.

To become the leading bank.

Help in economic development of the country.

Providing employment opportunities.

To become a part of society development.

To provide non-funded and foreign currency transaction services.

To provide to build, operate and transfer (BOT) project.

To provide various schemes and incentives to small saver in various to


mobilize domestic saving.

To provide fund management services to the customers.

To provide banking service and facilities to attract foreign direct


investment in the country.

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To expand banking services in the international market though the branch
expansion and creation of agencies

Code of Ethics

Directors, India Based Officers and Employees shall conduct business


transactions fairly and equitably without being unduly influenced by
individual friendships and associations with the customers.

All the members of the Board, Management Committee and employees at


all levels shall maintain confidentiality of customer information and
transactions and even after vacating the office, continue to maintain
confidentiality or secrecy in regard to the copyright material or other
correspondences, accounts and dealings of the Bank and its customers.
However, providing any information related to financial transactions to the
third party as required by law shall not be construed as a breach of
confidentiality.

Chairman and/or any member of the board shall not interfere in the day-to-
day functioning of the management, except if he/she holds the position of
Managing Director or Executive Director.

No member of the Board, Management Committee and employees shall


engage directly or indirectly in any activities which are against the interest
of the Bank.

Members of the Board, Management Committee and employees shall not


accept any offer, payment promise to pay or authorization to pay any
money, gift, or any other valuables from customers, suppliers,
shareholders/stakeholders, etc. that is perceived as intended, directly or

19
indirectly, to influence any business decision, any act or failure to act, any
commission of fraud, or opportunity for the commission of any fraud.

Employees shall not take part in politics and shall with intention to satisfy
his/her political interests on the matters relating to his services exert or
attempt to exert any political or other undue influence upon any other
employee.

No one shall willfully destroy or damage any asset of the bank or carry it
outside the banks premises and use or allow unauthorized persons to use
such asset without obtaining prior permission from the authorized person
of the bank.

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2. Organizational Structure and Design

The Board of Directors (BOD) is composed of seven members consisting four


members nominated by SBI, two members elected as representative of general
public from Annual General Meeting (AGM) and a member nominated from EPF.
Besides the BOD, there is provision of Central Management Committee
(CENMAC) which consists of Managing Director (MD), also nominated Board
Member from SBI, Chief Operating Officer (COO), Chief Financial Officer
(CFO) and Chief Credit Officer (CCO). The overall management of the bank is
conducted by the BOD and CENMAC.

Figure 3: Organizational structure

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Branch Network of NSBL

The corporate office of NSBL is situated at Hattisar, Kathmandu. The bank has all
together 56 branches all over the capital and also all across the country and also in
India which makes the network of the bank its biggest strength. At present there
are 17 branches in the valley and 33 branches out of the valley.

Management Team

NSBL is under the management of pure professional. The team consists of


managers acting as head of different departments. In pursuing their own task they
supervise and coordinate all their subordinates. They mold the efforts of the team
on achieving the overall goal of the organization. Board of directors formulates
the vision, mission statement and objectives for the organization and the managers
on their part are engaged in devising an action plan to achieve those objectives.
NSBL have a centralized type of management because all the decisions are taken
by the top management.

Name Designation
Alok K Sharma Managing Director
Tulsi Ram Gautam Chief Credit Officer
V.K. Tyagi Chief Operating Officer
Anil K Singh Chief Finance Officer
Dev Raj Adhikari Regional Manager(Nepalgunj)
Table 2: Management Team

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Board of Directors

The Board of Directors of NSBL is listed in the table below

Position Name of position holder


Chairman Hasana Sharma
Director Hemanta G Contractor
Director Rajan Srinivasan
Director Vijay Jasuja
Director Manoj K Agrawal
Director Nirajan K Tibrewala
Director Keshav Raj Acharya
Managing Director Alok Kumar Sharma
Table 3: Board of Directors

Departments of the Organization

Customer Service Department (CSD)

Bills & Remittance Department (RMT)

Customers Relations Department (CRD)

Credit Control Department (CCD)

Credit Administration Department (CAD)

Trade Finance Center (TFC)

International Banking Department (IBD)

Administration Department

Legal Department

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Treasury Department

Human Resource Department

Reports & Reconciliation Department

General Service Department

Corporate Governance structure

The Bank uses the term "Corporate Governance" to refer to the governance
structure of organization and operational practices of its leadership and
management. Compliance with all applicable legislations, regulations, standards
and codes is an essential characteristic of organizational culture at Nepal SBI
Bank. The Board of Directors is the apex decision making body and has ultimate
responsibility for governance. The board monitors compliance with these means
of management reports, which include information on any significant interaction
with all key stakeholders.

The corporate governance framework of Nepal SBI Bank is designed to lead us


towards creating opportunity while protecting the interests of, as well as to create
value for, shareholders and other stakeholders including customers, employees
and communities and also to ensure transparency and integrity in communication
and to make available full, accurate and clear information to all concerned.

The bank is subject to and fully complies with, all but not limited only to, the
regulatory requirements of Banks and Financial Institutions Act-2063, Companies
Act-2063, various regulations issued by Security Exchange Board of Nepal
(SEBON), Directives and Circulars issued by Nepal Rastra bank--the central bank
of Nepal, various guidelines from Institute of Chartered Accountants of Nepal

24
(ICAN) and other national and international bodies devising policies on Corporate
Governance.

Figure 4: Corporate Governance Sturcture

25
Risk Governance Structure

In keeping with the need for a separate and independent Risk Governance
Structure, the following risk management structure is in place. The Board has the
ultimate responsibility for monitoring and managing the risk profile of the Bank.
For the purpose of convenience, the Board may delegate the responsibility to a
separate sub-committee viz. to the Risk Management.

Integrated Risk Management Department has been created for overall risk
management of the Bank which includes managing, assessing, identifying,
monitoring and reducing pertinent business risks that could interfere with the
Banks Objective and Goals. Chief Risk & Compliance Officer (CRCO) is
responsible for Enterprise Level Risk Management, Credit Risk Management,
Market Risk Management and Operational Risk Management.

Figure 5: Risk Structure

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Risk Management Committee

1. Risk Management Committee of the Board (RMCB)

The RMCB has the overall responsibility for overseeing the risk management
processes in the Bank. In the area of Risk, the RMCB shall:

Vetting of overall risk policies, provide necessary guidance and


direction and recommend the same to the Central Board for approval.
Establish a management structure capable of implementing the Bank's
Risk Management Framework.

Constantly review the level of risks associated with the business


activities, risks bearing capabilities, strategies that have been
formulated to manage the risks, policy arrangements and guidelines
and recommend to the Board as to the appropriateness and adequacy
thereof.

Review of risk profile the Bank.

Establish clear lines of management responsibility, accountability and


reporting. In addition, separate responsibilities and reporting lines
between risk control functions, business lines and support functions in
order to avoid conflicts of interest.

Ensure that the Bank has in place adequate internal audit coverage to
satisfy itself that, policies and procedures have been implemented
effectively.

Approve risk capital methodology and resulting attribution.

27
Set and approve the risk appetite of the Bank, within the overall
parameters set by the Board.

Analyze and reviews the Capital adequacy as per the risk assets,
Internal Capital Adequacy Assessment Process (ICAAP),
appropriateness of the policies as per the business strategy, maximum
level of risk that the organization may assume and submit necessary
recommendation, opinion to the Board.

Periodically review the risk framework.

Awareness of risk management throughout the organization.

2. Credit Risk Management Committee (CRMC)

Credit Risk is defined as the possibility of losses associated with the diminution in
the credit quality of borrowers or counterparties from outright default or from
reduction in portfolio value. Credit Risk emanates from a banks dealings with an
individual, non-corporate, corporate, Bank, financial institution or sovereign.

Credit Risk Management Committee (CRMC) of the Bank is headed by the


Managing Director with Chief Credit Officer as the functional head and CRCO as
a Member Secretary. The committee prepares policies and issues guidelines
relating to group exposure, credit concentration, sector wise flow of credit, period
wise assets mix, deprived sector lending, productive sector lending, Single
Obligor Limit etc.

CRMC meets at quarterly intervals. The role of the CRMC is:

Implementation of Credit Risk Policy/Strategy approved by the


Board.

28
Monitoring of Credit Risk on a Bank wide basis and ensuring
compliance.

Incorporation of Regulatory compliance in Banks Policies and


Guidelines in regard to Credit Risk.

Ensuring compliance with the Risk Parameters / Prudential Limits.

Monitoring of quality of Loan Portfolio on a periodical basis, identify


problems and correcting deficiencies.

Monitoring of Risk Concentrations

Bank has risk assessment practices in place for identification, measurement,


monitoring and control of the credit risk exposures. The Bank uses internal Credit
Risk Assessment Models and score cards for assessing credit risk under different
exposure segments.

3. Market Risk Management Committee (MRMC)

Market Risk is the possibility of loss a Bank may suffer on account of changes in
values of its trading portfolio, due to change in market variables, such as
exchange rates, interest rates and equity price, among others. Market Risk
Management Committee (MRMC) of the Bank is headed by the Managing
Director with Chief Financial Officer as the functional head and CRCO as the
member secretary. MRMC has the overall responsibility to monitor / manage
various market risk exposures of the Bank through Market Risk limits, stop loss
limits, etc., at a more granular level. It reviews the structured liquidity, interest
rate risk, open position of currencies and risk associated investment risk etc.

MRMC meets at quarterly intervals. The role of the MRMC is:

29
Identification, assessment, monitoring, reporting and analysis of
Market risks associated with Treasury Operations

Development of policies, setting of risk parameters, overseeing


compliance with risk parameters & developing hedging strategies.

Granular allocation for all categories of risk assets, of the overall risk
limits.

Putting up to RMCB, the risk profile, analysis of trends, etc.

Risk research and analysis, development of risk mitigation strategies

Identification, monitoring and measuring risk profile of the Bank.

Monitoring compliance by concerned departments of various market


risk parameters.

Ensure appropriate internal controls are in place;

4. Operational Risk Management Committee (ORMC)

Operational Risk is the risk of loss resulting from inadequate or failed internal
processes, people and systems or from external events.

The Operational Risk Management Committee (ORMC) of the Bank is headed by


Chief Operating Officer (COO) with CRCO as the member secretary. The ORMC
meets at quarterly interval and review the operational risks associated with
banking, system, employees, income, exchange fluctuation etc. The role of
ORMC is:

Review the risk profile, understand future changes and threats, and
concur on areas of highest priority and related mitigation strategy.

30
Assure that adequate resources are being assigned to mitigate risks as
needed.

Communicate with business units and staff about the importance of


operational risk and assure adequate participation and cooperation.

Review and approve the development and implementation of


operational risk methodologies and tools including assessments,
reporting, capital and loss event databases.

Receive and review reports/presentations from various business


groups, support departments (IT, HR etc.) and business units,
processing cells about their risk profiles and mitigation programs.

To discuss and recommend suitable controls/mitigations for managing


operational risk.

Analyze frauds, potential losses, non-compliance, breaches etc. and


recommend corrective measures to prevent recurrences.

Discuss any issues arising / directions in any one business


unit/product which may impact the risks of other business/products.

Continually promote risk awareness across all business units so that


complacency does not set in.

Monitor and ensure that appropriate ORM frameworks are in place.

Review the reports presented by Central Operations Department


(COD) with respect to operational risk profile of the Bank. Approve
policy-related mitigation plans.

31
Review roll-out plans for implementation of ORM initiatives.

Proactively review and manage potential risks which may arise from
regulatory changes/or changes in economic /political environment in
order to keep ahead.

5. ICAAP Review Committee

The committee is headed by the Managing Director with CFO as the functional
head. The ICAAP review process is intended to ensure that we have adequate
capital to support all the risks in business, to improve upon them over time and
achieve better risk management techniques in monitoring and managing risks.
ICAAP Committee meets at monthly intervals to review the internal capital
assessment commensurate with the risk profile and review the portfolios which
require capital charge. ICAAP Committee also reviews strengthening of risk
management, applying internal limits, strengthening the level of provisions and
reserves, and improving internal controls.

ICAAP Review Committee meets at monthly intervals. The Member secretary


and functional head will ensure regulatory compliances.

6. Assets Liabilities Management Committee (ALCO)

The committee is headed by the Managing Director. ALCO is responsible for


managing the on balance sheet, off balance sheet exposures and capital within the
performance and risk parameters laid down by the investment and other relevant
policies of the bank. It provides direction to the bank's treasury and other
businesses regarding short term business strategy taking into account market
variables in relation to the bank's exposure and the bank's corporate plan.

32
The committee approves the liquidity and funding plans of the bank and assesses
the liquidity risk facing the bank while articulating interest rate views. It also
monitors key market and operations risk indicators, reviews the potential impact
of concentrations and various scenarios on the bank's business and gives
directives to mitigate and manage the related risk while ensuring adherence to
tolerance/risk limits set by the board of directors.

33
3. Key Ratios

Mar '12 Mar '13 Mar '14 Mar '15 Mar '16
Earnings Per Share (Rs.) 22.93 32.75 34.83 34.84 34.29
Table 4: Earnings per share

Figure 6: earnings per share

Mar '12 Mar '13 Mar '14 Mar '15 Mar '16
Dividend Per Share (%) 17.5 20 22.07 28.42 29.53
Table 5: Dividend per share

34
Figure 7: Dividend per share

Mar '12 Mar '13 Mar '14 Mar '15 Mar '16
Net Profit/Loans & Advances (%) 1.81 2.64 2.58 2.63 2.8
Table 6: Net profit and advances

Figure 8: Net Profit/Loans & Advances (%)

Mar '12 Mar '13 Mar '14 Mar '15 Mar '16
Net Profit/ Total Assets (%) 0.83 1.19 1.51 1.8 1.7
Table 7: Net profit/total assets

35
Figure 9: Net profit/total assets

Mar '12 Mar '13 Mar '14 Mar '15 Mar '16
Return on Assets (%) 1.01 1.19 1.5 1.7 2
Table 8: return on assets

Figure 10: return on assets

36
Mar '12 Mar '13 Mar '14 Mar '15 Mar '16
Return on Shareholders Equity (%) 15.02 20.31 22.85 21.51 22.16
Table 9: return on shareholder equity

Figure 11: Return on shareholder equity

Mar '12 Mar '13 Mar '14 Mar '15 Mar '16
Liquidity ratio (%) 8.33 9.58 9.32 10.92 8.33
Table 10: Liquidity ratio

Figure 12: liquidity ratio

37
Mar '12 Mar '13 Mar '14 Mar '15 Mar '16
Cost to Income Ratio (%) 49.79 40.68 39.7 37.94 34.94
Table 11: cost to income ratio

Figure 13: cost to income ratio

38
4. Functional areas

Customer Service Department

Customer Service department is a primary level department that generally deals


with customers directly and regularly. This department is basically directed
towards providing the surface level assistance to the customers i.e., to provide
general information about banking system, product and services provided by the
bank. The department is responsible for providing the basic materials like deposit
vouchers, cheque book, bank statement, balance certificate, cards.

Customer Service department is the face of bank. Customer Service department is


the place where customer initially interacts with the bank. customer service
expands client focus to include everything that happens within and around the
bank, from the way staff greet clients, to the atmosphere in the waiting room, to
the matter in which clients complains are handled.

The very first thing that the people seek in the organization is the prompt service
and the person at the customer service desk properly handles them. The people at
the customer service desk must be ready to sort out every problem at any moment.
The customer service division can answer questions, resolve problems, and help
you establish new accounts and services, and providing information on products,
forms, and publications

The increasing competition in the banking sectors demands more service


proliferation, which would satisfy the demand of the customers. Banks and other
financial institution are introducing more and more innovative services such as
ATM, debit card, internet banking, locker services and various other services for
their customers to serve them more efficiently and effectively. Customers seek in
organization the prompt service and the person at the customer service desk

39
properly handled them. The people at the customer service desk must be ready to
sort out every problem at any moment. A customer is the most important visitor
on the business premises.

Customer Service Department or CSD is oriented towards handling customer


queries and grievances. Remaining in this department Intern tried to grab the
overall general information about different departments and procedures of
activities related to them. Actually, it is the most appropriate department for intern
because all the customers at first come to CSD to get the information of anything
they need to do with bank. Staffs who stays in the CSD need to have the general
information about all the departments and their procedures. The major and the
interesting task in CSD is dealing with customers. Different faces with different
quires, interest and perception makes the counseling more interesting and
challenging too. The important task the intern learnt at this department can be
described as below:

Account Opening process and requirements

Any individual capable to enter into a contract can open accounts with the bank.
Lunatics insolvents, drunkards cannot enter into the contracts. Naturally, they
cannot be the account holders. Illiterate persons, blind trustee can open a accounts
but special attention should be paid to customers. Likewise, bank open accounts
in the name of minors but they have to be operated by guardians till minors turn
into majors. There are various types of individual accounts such as: Personal
NPR Account, Personal USD account and can open a account in all convertibles
currencies directed by NRB (For Nepalese and Foreign Citizen) and Joint NPR
Account.

40
Basic requirement for opening the personal account

Customers name, gender, marital status, date of birth,


permanent and temporary address (phone number), fathers
name, grand fathers name or husbands name, and all other
relevant detail filled in the account opening form correctly by
the accountholder.

Agree with the terms and conditions of the bank.

Sign the specimen cards.

Certified true copy of identification document i.e. citizenship


or Passport and Birth Certificate in case of minor account, and
registration certificate as an Indian citizen for Indian.

Two photograph of account holder and if the account holder


wants the debit card then one extra photo for Debit Card.

Utility payment bills required (ie, NEA bill, drinking water


supply bill, Nepal telecom bill, etc).

Introducer required to the applicant.

In case of Joint Account

The account holder should present in the business desk during


the time of account opening.

Agree with the terms and conditions of the bank.

41
Fill in the applications form correctly by the customer.

The citizenship of the parties involved in the joint account must


be presented.

Two photographs of each party involve in joint account.

The account holder should decide on the signature that is either


one signature is acceptable or both signatures are compulsory.

In case of Foreign National

Certified true copy of Passport.

Documents should be certified from concerned Embassy.

Certified True copy or valid Visa.

All documents of personal account for all the joint parties.

After ascertaining completion of basic requirement, the bank assigns an account


holder, accepts deposit slip (voucher) and issues a cheque book.

In case of Limited Companies

Certified copy or exact of the Resolution of the Board of


Directors and authorized signature certified by chairperson or
secretary.

Copy of Memorandum of Association and Articles of


Association.

Copy of Certificate of Incorporation.

42
Document disclosing the name, surname, and address of the
members of Board of Directors.

Photographs of the members of Board of Directors.

In case of Proprietorship / Partnership accounts

Registration certificate

Tax registration certificate (PAN)

Copy of identification of all signatories

Document evidencing residential address of signatories, directors,


beneficial owners.

Passport size photos of signatories.

Resolution from board of trustee/ authorized personnel

Process of opening new account

After fulfilling the requirement of the issued account opening form and customer
information form by the customers, it is received by the CSD. Then, thorough
checking and verification are done to see any discrepancies. Once the verification
is done with the original documents, a stamp stating VERIFIED WITH
ORIGINAL is affixed on the photocopy of all the supporting documents. The
signature for the account operation and image of the accountholder is scanned and
kept along with the customers detail in the FINACLE software. Finally all these
details are taken to the operating head for verification and approval.

43
Account closing process and requirements

It is another important task done under account operation. It is very rare that you
encounter an account closing request at the customer desk at NSBL. People close
their accounts because of many reasons but the major reason that I got to know
was the customer is going somewhere out of the country and the increased
number of competitors in the area and sometimes due to their personal problems.

Procedures to close an account are given below

Step1. The customer is asked the reasons for closing the account and tries to
convince not to close the account by explaining the benefit of the account and the
charges taken for closing the account.

Step2. If the customers are willing to close the account must fill up the form
specifying the reason.

Step3. After submission of the form to CSD it is confirmed from the various
department that the customer is not enjoying and sort of facility from the bank at
present.

Step4. The client is then asked to return all his account related belongings like
ATM cards and the check book. These are received by the teller and are cancelled
or destroyed.

Step5. Then finally the account of the applicant is closed with certain charge

Preparing and distributing functions

Another activities performed in the customer service department is preparing and


distribution of various requested document to the clients. Various documents that
a client can get from this department on requested are:

44
a. Balance Certificate Distribution:

Mainly the balance certificate is demanded by the corporation to know the status
of their account and present to the Board of Directors meeting. The bank provides
the certificate to only the account holder after the request form has been filled up
and submitted to CSD. The bank provides the certificate to the corporation if the
letter about the request certificate presented in the letter head with the signatures
of the members and the stamp of the corporation. The statement can be issued to
an individual also by fulfilling the same process.

b. Cheque Book Distribution

Clients, especially the ones holding the account in the bank request for the cheque
book by filling the requisition slip which is in between the cheque. In case if it is
not there, customer has to write a written application regarding the issue of new
cheque and pay Rs.50 charges for it, bank will deliver cheque next day to
customer. For new customer account number and cheque should be distributed
next day after the opening of account.

The account holder should be presented for receiving the cheque otherwise
application should be written that on the behalves of my absence kindly handover
cheque to respected application bearer person attached with id proof of bearer.

c. ATM Distribution:

ATM card of NSBL is linked with the Visa Debit Card. They can use this card in
various ATM counters all over the country and in India as well to withdraw cash
and even for other activities like balance enquiry, pin number change, etc. The
process of distributing the ATM to the customer is as follows:

ATM should be provided within 45 days of application.

45
In case of Bharat Yatra card it should be provided on demand.

Account holders should be presented for collection otherwise application


should written same as cheque process.

Account holder should sign in the register of Issuance of ATM prepared


by internee at the time of delivering.

Internee should make entry on two register i.e. .one has to be signed by the
cards holder mentioning the name, address, account number, card
number, validity on it and another is to enter the code number for relative
ATM.

Before delivering ATM signed, should be verify as well as suggesting


him/her to sign at back side of ATM in between the white box for
verifying the belongings of ATM when it is trapped in near future of other
ATM.

d. E-banking user id Distribution:

The account holder can use the internet facility to know about the balance,
statement, fund transfer, etc. The official website of NSBL is
www.nepalsbi.com.np.The account holder must fill the form of internet banking
and request for the password, codes, etc.

e. SMS Banking Distribution:

The account holder can use the mobile facility to know about the balance,
statement etc. The account holder should go to their message box and write the
code given by the bank send it to four digits given by the bank itself. The account
holder must fill the form of sms banking and request for the codes.

46
Miscellaneous Functions:

Cheque book binding

Making entry on registers

Filing the documents

Complain handling

Updating the records

47
5. Problem Identified and Solved

During internship, the working environment was so friendly and familiar that the
staffs over there were always at there to help me to solve the problem. But some
of the problems aroused at that period are:

Language problems

Most of the customers in the NSBL were Indian. They were not so familiar with
the Nepali language and not able to fill detailed information in the form. In this
situation internee helped them to fill the detailed information in the form. And
also provide the detailed information about their account.

Convincing Customers

Sometimes the customers did not understand about NSBLs product and services
and it was difficult to convince them. There were even times when customers
behaved in a rude way. In spite of harsh behavior of the customers the intern
behaved properly and always tried to solve the situation.

Filing problem

While doing filing, the files were not properly kept in its place. So, it becomes
difficult for internee to find the related files when required. To solve this
problem, internee manages all the files as per the application of filing and
indexing and kept in proper place so that internee can provide at required time to
the customer or staff of the NSBL bank.

48
Savvy customers

Some customers were not sure about their decision i.e. they were in dilemma for
choosing the Products/Services. They tend to change their mind within very short
time. So it sometimes tends to be difficult to make their decision the final one.
Example: -Whether to take mobile service or not -Whether to take e-banking or
not. When the internee faced this type of situation, the customer was always
provided with the proper knowledge about various services of the bank which
helped then to take finally an appropriate decision.

Complaints regarding ATM service

There were lots of complaints regarding the ATM services at Gaushala branch.
The ATM machine would go blank when the customers did not use to insert the
card properly, the machine did not dispense any cash but the amount was
deducted from their account, the card stock and so on. And the customers used to
get very aggressive especially when they dont have cheque. In such conditions
the internee advice customer to fill required firm mentioning his/her problem and
submit to the concerned department for quick response.

Complaints regarding cheque printing

There were lots of complaints regarding cheque printing services at Gaushala


branch. Customer is not able to get the cheque whenever at required time. Cheque
printing machine at Gaushala branch also not work properly. In this situation
internee handle the situation in a proper manner by politely convincing to the
customer of NSBL. Giving them proper reasons for not being cheque print.

49
Dealing with Physically Disable customer:

In Gaushala branch, sometimes internee has to deal with physically disable


customer means dumb, deaf and illiterate at the same time. In such case internee
try to deals with such customer in sign language with the help of supervisor Mrs.
Usha Risal maam.

50
6. SWOT Analysis and Challenges of NSBL

SWOT analysis is one of the major tools for analyzing organizational internal as
well as external environment. The internal environment provides strength and
weakness whereas the external environment provides opportunity and threats to
the organization. Most of the organization uses this tool to formulate plan,
policies, and strategies for achieving goals. The SWOT analysis of NSBL are:

Strength

Use of Advance technology

Efficient Management system

Diversified product and service offered

highly experienced, efficient hardworking, Professional staffs

Quality work culture leading to superior and prompt customer service.

Better image and established brand name in the market

NSBL uses one of the latest banking software called FINACLE, which
makes its service more efficient and effective.

NSBL has banking network not only through the country but also in India
by which customer can easily access its services.

Weakness

Low interest rate on deposits

Late distribution of ATM cards

51
Less number of deposit services as compared to other banks

Opportunities

Raising awareness of general public towards modern banking products i.e.


ATMs, internet banking, etc.

Opportunity to enter into new and profitable segment of the market by


expanding its networks.

Opportunity to attract large number of customers by promoting its brand


name and goodwill in the market.

Increase in literacy and banking knowledge, to provide the banking


services to a wide range of customers.

Increase in population that will help to serve wide range customers.

Changing lifestyle, women empowerment has also created opportunity to


banks to provide various innovative products and services.

Increase in practice of saving money has helped the bank to attract the
customers.

Threats

Tough and unfair competition

Political instability

Changing rules and regulations of NRB.

Chances of losing customer because of the slow processing and long


queue banking system.

52
Always having problem on ATM service could make bank suffer on long
run Restriction on the withdrawal amount to the foreign nationalist could
be the opportunity for another bank to deal with foreign nationalist.

Challenges

International economic recession

Increasing inflation rate

Changing technology

Low interest return to depositors

Political instability of the country

Over saturation of financial sector

Intense competition among the banks providing same products and


services.

Changing rules and regulations of NRB.

53
7. Recommendation

During the study, some issues were observed which needed some improvements
for better acceptance of the bank towards its customers. Nothing in the earth is
perfect; there is always pace for improvement so to maintain the service standard
and improve customer satisfaction, some recommendations are as follows:

As per the customer feedback, the processing time of documents was


found to be very time consuming. So, the bank should provide prompt
services with latest technology and computerized equipment. The
customers should be served without making them to wait.

Improvements in IT system need to be made from time to time for the


smooth operating of the banking activities which will benefit the growth
of the bank.

There are many commercial bank and financial institutions as competitor


to NSBL bank. Hence the bank should introduce new products and
services for the customers to attract them.

Few departments like remittance and marketing suffers from the


understaffing, thus the bank should hire skilled manpower to increase the
efficiency of the bank. Though the bank has installed new software for
its operation, however, almost all department suffers from the sudden
breakdown of the software due to which the customer need to wait for
longer time to get their work done. Thus, the bank needs to properly
manage its software and other computer programs.

The rotation of work is very much important to create reduce monotonous


in the employee. It helps to reduce work load and monotonous even in

54
case of employee absent. In addition to this, employees will opportunity to
learn new things.

For the interns, there must be specification of jobs about what to do. Bank
should provide separate employee as a mentor to internee who will teach
them technical things.

55
8. Conclusion

NSBL is one of the leading banks in Nepalese financial industry. NSBL as a


pioneer in introducing many innovative products and marketing concepts in the
domestic banking sector represents a milestone in the banking history of Nepal as
it started in the era of modern banking either customer satisfaction measured as a
focal objective while doing business. Today NSBL holds one of the strongest
networks, network in and outside Nepal compared to other financial institution of
Nepal. NSBL has focus on customer satisfaction by providing highly acclaimed
services. NSBL has good cooperation within and outside organization. NSBL has
succeeded to maintain a good culture and discipline in organization.

The internship at NSBL helped internee to gain in depth knowledge about the real
working environment, interpersonal and communication skills, organizational
culture and behavior, professional qualities and building spirit as well as working
samples of commercial banks.

During internship, internee has learnt many aspects other than the banking as to
socialize make the working environment friendlier. The internee has also learnt
the importance of behavioral issues. The customers are to be treated properly and
friendly way for their full satisfaction. This will help the bank to achieve success
by creating loyal customers and retaining them.

Performing internship in NSBL helped internee a lot to gain knowledge about


systems, manual works and the working environment of different department of
the bank. NSBL tries its best to serve their customers fully. It is one of the most
promising banks today and have the opportunity to increase their market share by
improving their customer satisfaction by overcoming their weakness and doing
their best to retain quality services. Overall, the internship program has been
really very fruitful in enhancing the practical knowledge of the internee.

56
References

Nepal SBI Bank Ltd... (2017). Nepalsbi.com.np. Retrieved 4 June 2017, from
http://www.nepalsbi.com.np/

State Bank of India. (2017). Onlinesbi.com. Retrieved 4 June 2017, from


https://www.onlinesbi.com/

23rd annual report. (2016). Nepal SBI Bank Ltd, (23), 1-168.

22nd annual report. (2015). Nepal SBI Bank Ltd, (22), 20-136.

Annual Review of Nepal SBI Bank: NPA 0.26%, Net profit Rs 1.06 arba, 27%
bonus & Right shares up to Rs 2.6 arba sharesansar.com. (2017).
sharesansar.com. Retrieved 4 June 2017, from
http://www.sharesansar.com/c/annual-review-of-nepal-sbi-bank-npa-0-26-net-
profit-rs-1-06-arba-27-bonus-right-shares-up-to-rs-2-6-arba.html

Analysis of Nepal SBI Bank Ltd. (Based on 6 years data). (2015), 2-6.

57