CHAPTER I

INTRODUCTION

1.1. Background of the Study

Project study is an essential and mandatory part for graduation

program in the discipline of Bachelors of Business Administration

(BBA). BBA is a four year program of management that is aimed at

producing a capable middle level manager, who is self –motivated

and capable to deliver his/her knowledge at the workplace. The

Internship in the final (8th) semester of the program gives the way

to practice what we have learnt. It enables students to apply

their conceptual knowledge in the practical situation and to learn

the art of conducting study and presenting its findings in a

scientifically and systematic manner.

The report has been prepared in partial fulfillment of the

requirement for the degree of Bachelors in Business Administration

(BBA) at Nepal Commerce Campus, one of the leading institutions of

Tribhuwan University. The present report has been prepared on the

basis of experience obtained throughout the internship period.

Primary source of this report preparation is the observation and

personal experience in course of the involvement in the banking

activities in the Maitidevi branch of Citizens Bank International

Limited (CBIL), as an intern.

The major part of this internship was spent in the Customer

Service Department (CSD) of Maitidevi branch and rest time in the

other departments such as loan department. Customer service is the

front desk of any organization where the organization makes first

contact with the client and make sure the activities designed to

satisfy the customers actually worked out or not. Loan department,

on the other hand, is the department that generates the revenue

for the bank.

1.2 Objectives of the Study

The main objective of this internship program is to get a

practical insight into the real-life activities of the financial

institutions such as banks and be prepared for the practical work

experience in the future by gaining practical knowledge and ideas

about the banking operations from Nepalese perspective. The main

objectives are:

To make an analysis of the practical implementation of the

theoretical knowledge gained through the classroom study.

To be familiar with the various aspect of the banking firm and

develop an understanding about the actual activities of the

banks.

To analyze the banking process of operations.

To enhance the communication, interpersonal and public relation

skill through direct interaction with the customer.

1.3 Limitations of the StudyIt was a great opportunity to be an intern in the bank. The

knowledge gained during the course of internship was a rare feat.

However the internship had some limitations. The main limitations

of internship are listed below:

Due to lack of time, study of each and every activities of the

bank in depth was not possible.

Due to privacy policy maintained in an organization,

unavailability of information created a problem.

Interns were not allowed to use the system and entered the cash

premises.

The prime source of information for report preparation was the

informal questioning with the CSD head and the observation of

the activities as well as the active involvement in the

activities allowed to the interns.

1.4 Methodology of the Study

The report for the internship is based on the information and data

gathered from the primary and secondary sources as mentioned

below. This report tries to present an analysis of the

organization (CBIL) along with the introduction of the banking

industry, the bank itself and the activities performed in the bank

as an intern as well as the conclusions and recommendations to the

bank.

The methodology is presented as follows:

1.4.1 Sources of Data

Primary Source of Data

Observation of working environment.

Direct interface with the walk-in customers.

Interaction with the staffs at different level of the bank.

2

Involvement in the activities in the bank within the limit of

access allowed to the intern as under the supervision of the

supervisor.

Secondary Source

Annual General Report of CBIL.

Information and data from the website of the bank

(www.ctznbank.com) and from the intranet of the bank (Pumori

Plus IV).

Publications and journals.

1.4.2 Organization Selection

Internship was completed from the Citizens Bank International Ltd

(CBIL). It is an established bank with the history of more than 5

successful years with a group of experienced, dynamic and

committed team. Maitidevi branch of the bank was the branch where

the internship was completed, the selection of which was primarily

due to the proximity of the branch from the place of residence.

CBIL is a bank having a strong presence in the market and

providing an excellent banking service to the customers.

1.4.3 Placement

The starting of the internship was with the familiarizing of the

Intern with the staffs and the operational environment in the

branch. The encouraging and cohesive environment made the process

of learning easier. During the eight weeks of internship, intern

was mostly placed in Customer Service Department (CSD). However,

the opportunity of gaining knowledge about the operational process

and other activities of various departments, mostly the Credit

Department, within the branch was also provided in the bank.

Table Number 2.1:

Weeks Spent in Different Department

WeeksName of

department

1st 2nd 3rd 4th 5th 6th 7th 8th

Customer

service

* * * * * *

Credit * *Source: Field Survey, 2012

3

1.4.4 Duration of Internship

The duration of the internship as defined by the Tribhuvan

University (TU) was of eight weeks. In accordance with the defined

duration the Internship lasted from 14th June, 2012 to 9th August,

2012 for the period of 8 weeks.

Despite of the time limitation, much knowledge has been obtained,

a lot has been learned and confidence has developed a lot. The way

of communication with people and customer relationship skill has

been developed. Intern was placed at Customer Service Department

(CSD) most of the time and in the Credit Department with the

placement to the other departments time and a/gain.

1.4.5 Activities Performed

The 8 weeks of internship was very important as per the activities

performed. Every activities of the CSD were preformed as a part of

the CSD department in the Maitidevi branch of CBIL.

I was placed basically in the CSD. Here I performed some of the

activities under the supervision of my supervisor due the

sensitivity of the issue and other activities on my own. Following

are the activities performed in the department during the period

of internship

Activities performed in Customer Service Department (CSD)

Account Opening

Assist customers in the opening of accounts and open accounts

through the ‘Pumori’ after receiving of all documents

essential for the opening of accounts. The access to the

system was, of course, under the supervision of the staffs.

Cheque Printing

Printing the cheques and issue it as well as keeping the

records of the cheques issued in the register maintained for

the purpose after getting the signature of the customers. The

customer was asked to fill up the Cheque Requisition Form (in

case of cheques to be issued for the very first time) or the

Cheque Slip in the cheque book (for the new cheque book to

the customers to whom the cheques were issued previously).

Account Closing:

Customer was first encouraged not to close their accounts. On

their request the CSD staff would close the account. As an

intern I had the following tasks done:

Provide customers the Account Closing form and help

them fill up the form

4

After the inter-department ticket was given to the

customer, take the form to the Branch Manager for

approval

Handling Telephone Calls

Telephone calls were handled to:

entertain the queries of the customers

give information to the customers about the maturity of

the FD account, the arrival of Visa Cards

transfer the incoming calls to the respective

departments

Scanning and photocopy

The activity of making the photocopy of the documents such as

the Citizenship Certificate of the customers, the FD receipt

and the other documents as asked by the staffs of the bank

was performed during the internship period.

The account opening forms of the customers (signatures of the

accountholders and their photos) and other documents were

scanned during the period.

Filing and record Keeping:

Proper filing of the things like cheque requisition form, ATM

Acknowledge form, account opening form etc.

Updating of the account opening register for the new accounts

opened and getting the signature of the authority on the

register was the job done.

Report Preparation

At the end of the day the following reports were prepared:

Report regarding the opening of the accounts

Report regarding the number of Visa Cards issued

This report prepared was checked and verified by the

authorities concerned.

Relationship maintenance

Maintaining good customer relationship was another motto in

the CSD. As an intern it was always kept in mind that none of

the activities done should affect the existing relationship

5

between the bank and customers. As an intern the focus was on

the Walk-in customers as wel l as the existing customers

because they the walk-in customers were the potential

customers of the bank who would make the word-of- mouth

advertisement of the bank and the existing customers are the

assets of the bank.

Dealing with the customers’ complaints

Along with the supervisor of the CSD I was also involved in

dealing with the grievances of the customers. The major

grievance was related to the ATM machine. Customers made the

following types of complaints:

After they punched the amount and pin code in the ATM

machine they received the withdrawal slip but not the

amount withdrawn.

They couldn’t withdraw their money because the notice of

‘transaction failure’ was repeatedly displayed probably

due to the network problem.

The branch don’t have proper parking space for the

customers.

The letters on the Display board of the branch wasn’t

properly visible to the customer.

Assistance in various service delivery:

The CSD staff was helped in the delivery of the utility

services to the customers. Assistance was regarding the

providing the information about the service to the customer

and helping the CSD staff deliver the services.

Miscellaneous Activities:

Several other miscellaneous activities were performed during

the period of internship. The activities performed in the CSD

may be listed as follows:

Provide customer with balance certificates, statements,

customer advices as per the rules and regulation of the

bank.

Provide debit cards

Arrange for the SMS banking and internet banking.

Market and promote the product of bank and convince the

clients.

Maintain good relationship with customers

Writing the applications as instructed by the supervisor

on behalf of the customers.

6

Activities performed in the Credit Department

Credit department is the department that generates income for the

bank as the major source of income is the interest income gained

from the loans provided. Though the major activity is to provide

credit the following secondary activities are performed while

providing loan to the customers

Providing information to the customers regarding the features

of the loan desired by the customer.

Valuation of the property to be kept as security, through an

independent valuator.

Site visit of the mortgage security.

Preparation of the Security documents for the purpose of loan

and having the client sign the documents.

Have a representative present in the Land Revenue Office

where the land and/or building are transferred under the

ownership of the bank till the loan is fully paid by the

client.

However, I was involved in the following activities:

Writing the security documents such as Mortgage Deed, Loan

Deed and Promissory Note under the supervision of ARO

(Assistant Relationship Officer).

Observing the activities in the Land Revenue Office while

visiting the office with the ARO.

Scanning of the various documents in the Credit Department

as instructed by the Credit Officer of the department.

7

CHAPTER II

INTRODUCTION TO BANKING INDUSTRY

2.1 History of Banking Service

Right from the time mankind realized the necessity of living an

organized life, it has always searched for new ways to gain

security of its life and property. The history of banking dates

back to the time when the first prototypes banks of merchants of

the ancient world (Assyria and Babylonia (currently Iraq), at

around 2000 B.C., made grain loans to farmers and traders who

carried goods between cities The development of banking spread

through Europe also and a number of innovations took place in

Amsterdam in the 16th century and in London in 17th Century. During

the 20th Century, developments in the telecommunications and

computing caused major changes to the banks operation. The world

banking industry witnessed further changes in the operational

style, services demanded and the innovations in service delivery.

The first bank to be established was The Bank of Venice in 1157

A.D. in the city of Venice, as an improvement to the Chamber of

Loans, an institution looking after the management of debt in the

city. The Medici Bank that was set up in Italy in 1397, the Bank

of Barcelona in 1401 and the Bank of Genoa in 1407 were some of

the major notable banks to be established following the Bank of

Venice. The Bank of Venice and the Bank of Genoa continued to

operate until the end of the eighteenth century.

The Bank of England in 1694, the Bank of Scotland in 1695, and the

Bank of North America in 1782, the Bank of France in 1800 were the

other major establishments in the history of world banking

industry. And the introduction of banking Act in 1833 A.D in the

United Kingdom, the growth of the bank accelerated as bank could

be established in the form of a joint stock company.

Historically, the primary purpose of a bank was to provide loans

to trading companies. Banks provided funds to allow businesses to

purchase inventory, and collected those funds back with interest

when the goods were sold.

2.2 Evolution of Banking in Nepal

Banking industry is one of the oldest service industry in Nepal

involved in lending and borrowing activities that has gone through

various stages of evolution and development since the Vedic times

(200 to 1400 B.C.). Towards the end of 8th century, Gunkam Dev had

borrowed money to rebuild the Kathmandu valley. Similarly

Introduction of the Nepal Sambat by Shankadhar, a sudra merchant

of the Kantipur in 880 A.D; after having paid the full outstanding

debts in the country also gives evidence of the debt service

existing in Nepal from the ancient times.

However the history of modern and formalized banking practice

started from the time of Rana Prime Minister Ranoddip Singh

(1877B.S.- 1885 B.S.) who established the “Tejarath Adda”To

overcome the drawback of the ancient way of banking. However, the

Tejarath Adda did not accept deposits from the public due to which

the financial needs of common people were largely unfulfilled.

Hence the need of the financial institution performing the

borrowing and lending facility was felt.

Later on, in the year 1937 (30th Kartik, 1994 B.S.), Nepal Bank

Limited was established for the purpose of commencing a financial

institution that can fulfill the void of banking institution in

Nepal. With this Nepal the modern banking era started in Nepal.

Nepal Bank Ltd. limited came into being in 1937 A.D as the first

commercial bank in Nepal under the Nepal Bank Act 1936 A.D

replacing the older system of banking with the motive to develop

the trade and industry in the country. Having a primary objective

to create an institution for issuing currency and ending the dual

currency system prevailing at that time Nepal Ratra Bank (NRB) was

established in 1956 (14th Baisakh 2013) under the Nepal Rastra Bank

Act 1955. It is the Central Bank of Nepal responsible for

formulating monetary policy and the regulation of the banking

industry of Nepal.

However, as the Central Bank, Nepal Rastra Bank had its own

limitations and as a commercial Bank, it was logical for Nepal

Bank Ltd. to go to unprofitable sectors. So to catch up with these

problems, the government established Rastriya Banijya Bank in 2022

B.S (1965 A.D), under Banijya Bank Act 1965 A.D. as a fully state

owned commercial Bank. The establishment of Industrial Development

Bank (converted into Nepal Industrial Development Corporation 1959

A.D.) in 1957, Agriculture Development Bank in 1968 were the other

major developments in the history of Nepalese banking industry.

9

Only after 1984, Private Banks were allowed to operate with a

license. With the introduction of this licensing policy a number

of joint venture commercial banks came into existence. The first

of those kinds are Nepal Arab Bank Ltd., Nepal Indosuez Bank Ltd.

and Nepal Grind lays Bank Ltd.

With the aim to provide quality banking service, enhance the

efficiency and healthy competition, foreign investment and new

technology in banking was introduced. NABIL is the first foreign

bank to be established in 2041 B. S. in Nepal. Initially, 50% of

shares were owned by United Arab Emirates Bank, 20% by the

financial institutions and remaining 30% shares are owned by the

general public

Then, Nepal Indosuez Bank Limited was established as a second

foreign bank in 2042 B. S. In this bank, 50% share is held by

Banque Indosuez, France, 15% share by Rastriya Banijya Bank, 15%

by Rastriya Beema Sansthan and 20% by the general public. It was

established with the authorized capital of Rs.120 million, issued

of Rs.60 million and paid-up capital of Rs.30 million. Another

bank i.e., Nepal Grindlays Bank (now Standard Chartered Bank) was

established as the third foreign bank in 2043 B. S. In this bank

also 50% share is held by ANZ Bank of Australia, 35% is held by

Nepal Bank Limited and remaining 15% share held by the general

public.

There are 32 commercial banks, over 75 Development Banks and

several fiancé companies, micro-finance institutions as well as

Cooperatives performing limited banking activities. The banking

institutions in Nepal offer modern facilities and some of the

international banks have tie-up with some of the commercial banks

and other financial institutions of Nepal. International banks can

also open their branches in Nepal under the commitment made by

Nepal in the World Trade Organization (WTO) to cater to the needs

of foreign travelers. The banks in Nepal offer money exchange

value of almost all foreign currencies as well as profitable

credit card facilities for foreign travelers.

10

2.3 Role of Banking Industry in Economy

Banking industry is the backbone of an economy. It is the

intermediary mechanism that is primarily responsible for the

transfer of the surplus funds from the surplus generating units in

the economy to the deficit facing units. Generally, the surplus

generating units are the units such as households and individuals

that generate small amount of saving. The deficit facing units,

however, are the units such as businesses, institutions and the

government which have a huge appetite for funds. There comes the

role of banking industry as an intermediary.

The banking industry then accumulates the small savings of the

individuals and households, transforms the savings into a huge

amount of saving and transfer the amount to the units in the

economy that are in need of the fund. This role of intermediary is

the key to the movement of funds in the economy. The chain of

earning, saving and spending, investing and again earning and

saving is the key to the growth of the economy.

The roles performed by the banking industry in an economy can be

presented as follows

1) Credit Generation

Banking system and the financial institutions play very

significant role in catering the credit needs of the overall

society. It generates credit to the credit deficit units of

the economy through the funds that comes to the banking

mechanism. The credit thus generated is used in the

productive activities in the economy. Thus, the generation of

credit is most efficiently performed by the banking industry

that helps in the growth of the economy as a whole.

2) Fund mobilization

Without the presence of an intermediary mechanism like the

banking industry the funds available to a unit of the economy

remains immobilized. The transfer of this ‘to be’ stagnant

fund is another major role played by the banking industry.

3) Credit availability

Banking system makes credit available to the needy unit of

the economy so as to aid

various needs of the business sector, the government and

individuals. This availability helps in the movement and

growth of the economy. It is also very vital in making the

funds available for the development of infrastructures in the

economy.

11

4) Investment opportunity generation

Banking industry is a very potential investment opportunity

as well as a very strong aid to the other available

investment opportunities in the economy. From the risk free

investment asset like the Treasury Bills to the riskier

assets like stocks and bonds and to the more risky assets

like warrants an individual and the institutional investor

gets the opportunity to generate income from their resources.

5) Availing access to the resources

The opportunity to get access to the financial resource like

the funds is possible with ease only due to the banking

industry and its mechanism. People get access to the

financial resource through the banking system and its

mechanism.

6) Upliftment of the lower and marginalized people

The availability of the investment opportunities, the

availability of the funds for the various uses to the people

at large and the chance to get the opportunity to generate

returns to their small saving helps in the uplifting of the

living standard of the marginalized society with the limited

access to the funds.

12

CHAPTER III

INTRODUCTION OF ORGANIZATION

3.1. Introduction of Citizens Bank International Ltd

Citizen Bank international limited(CBIL) was established on June

21, 2007 and commenced is commercial operation from 20th April

2007.The head office of the bank is located at Sharada Sadan,

Kamaladi. It is an “A” level financial institution as licenced by

the Nepal Rastra Bank (NRB) as well as a public limited company

established under company act 2056. It is promoted by eminent

personalities/business and industrial houses and reputed

individuals having high social standing. It is promoted by

prominent personalities’ business/industrial house and reputed

individuals having high social standings. It is managed by a team

of experienced bankers and professionals. With the increasing

level of liberalization, privatization and globalization in this

sector the commercial bank such as “Citizens bank international

ltd.”, are established to aid the economic growth and development

of this nation. Today’s bank plays a vital role for the economic

development of the country.

VISION

“To be the leading bank known for its service excellence in the

region.”

MISSION

To be a trustworthy partner for the progress of individuals and

institutions by designing, producing and delivering the best

financial solutions.

Corporate Values

The Bank will constantly strive to inculcate in its services fivecorporate values as follows:

Customer Focus

We are committed to meet the financial needs of our customers and

exceed their expectations through innovative solutions.

Service Excellence

We promise to deliver customer centered products and services par

excellence.

Human Resource

We employ bright, honest, helpful and pleasant people. We nurture

and empower them to achieve their full potential.

Corporate Governance

We believe in being accountable, conducting business ethically and

maintaining transparency.

Social Responsibility

We are committed to take social initiatives for the development of

the nation.

3.2 Financial description of CBIL

Authorized Capital: NRs.5, 000 million

Paid-up Capital: NPR 2101.84 million

Recent Financial Performance

Table no. 1:

Some Recent Indicators

S.N. Particulars 4th Quarter(F/Y 2068/69)

1 Earnings Per Share Rs.10.612 Price- Earnings Ratio (P/E Ratio) Rs 21.683 Liquidity Ratio Rs 29.124 Net Worth per Share Rs 116.89

Table No. 2:

Unaudited Financial Results (Quarterly)

Ratios (%)4th Quarter(2069) 3rd Quarter(2068)

Capital Fund to RWA 15.58% 16.33%Non-Performing Loan (NPL) toTotal Loan 2.01% 3.10Total Loan Loss Provision toTotal NPL 99.71% 75.28%Cost of Funds 7.74% 8.62%Credit and Capital to DepositRatio 74.40% 78.44%

(Source: Karobar National Daily)

14

3.3. Organization Structure

Organization Structure

15

3.4. Introduction of CBIL Maitidevi Branch

The maitidevi branch of Citizens Bank started its operation from

8th Bhadra 2066 B.S. as the 17th branch of Citizens Bank. At the

time of establishment there were 5 staffs in the branch and at

present the number of staffs has reached to 8 at present. The

deposit in the branch has reached up to Rs. 36 crores

approximately and the loan portfolio of the branch has reached up

to Rs. 16 Crores. The branch recently made the profit of nearly

Rs. 22 lakhs in the past fiscal year.

At present Mr. Ashok Thapa is the Branch Manager and Ms. Rami

Shakya is the Assistant Branch Manager of Maitidevi branch of

Citizens Bank Ltd.

The branch has a team of dedicated employees with a great level of

cooperation among them. The branch has been awarded as the Best

branch of the year also. With a good growth rate of progress in

terms of loan portfolio and deposit it has also maintained good

relationship with the customers.

3.5.DEPARTMENTS OF CBIL IN MAITIDEVI3.5.1. Customer Service Department(CSD

Customer service is a series of activities designed to enhance the

level of customer satisfaction – that is, the feeling that a

product or service has met the customer expectation and the

Customer Service Department (CSD) means the front desk of any

organization that enables face to face interaction with the

customers who visits the organization. For any organization it is

the very place which makes an early impression to the clients. The

image and the reputation of bank depend upon effective functioning

of this department. The competence and attitude of the sales

staff, complaints handling, customer dealings, and after sales

service are all areas that affect customers’ perception of the

company and also their loyalty to company. If they are

unprofessional or make rude remarks about or to customers,

customers’ perception of the organization will suffer even though

the employee is not on duty. It is the first place where the

customers first get the service.

Objectives of the Customer Service Department

The prime objective of the department is to provide competent andeffective service to the customers. Along with that the othermajor objectives of the department are as follows:

Disseminating information

16 Listening and handling customers grievances

Building good customer relationship

3.5.2 Credit Department

a) Corporate Banking

i. Funded Facilities

Overdraft loan

Fixed term loan

Personal loan

Loan against fixed deposit

Loan against counter guarantee

ii. Non-funded Facilities

Letter of credit

Bid Bond

Performance Bond

Advance payment Guarantee

b) Retail banking

i. Hire purchase loan

ii. House loan

CBIL has been introducing innovative products to fulfill the needs

of the various segments of borrowers. The bank primarily focuses

on corporate lending .The auto loan schemes and home loan scheme

have been well received by the market.

3.5.3 Trade and Credit Operation:-

In this department L/C transaction takes Place, where Company or

organization buys their equipment through L/C department. This

department also plays a vital for the customer to make available

their goods. In this department L/C transaction take place and

loan transaction take place such as auto loan, home loan,

educational, margin loan etc in this department after the approval

of

17

loan then this department does the rest of thing after the

approval of loan whereas L/C transaction take place from the

beginning to the end of the transaction in this department. Due to

the new bank they have kept both of the department in same

department.

In this department first step of loan transaction take place. In

this department auto loan, home loan, educational loan, margin

loan etc take place. In this department they verified whether to

passed the loan or not to the customer. In this department bank

staff evaluate the property and earning income as per the bank

rules and regulation. Marketing play a vital role in bank, in any

organization, or in any company without marketing it is impossible

to face the competition in the present situation of the market.

Marketing helps to grow and extend the business.

3.5.4 Cash Department This department is related to cash, cheque and draft .mostly they

related with cash transaction. The deposit and withdraw of cash is

done in this department & the clearing of cheque is also done

through this department. The main function of clearing department:

Outward bills for collection (OBC)

OBCs are those bills which came from different client of different

banks for collection. The clearing officer collect the OBCs from

dispatch at morning and enter them into the OBC register after

entering he make two vouchers- one contra voucher and one simple

credit voucher. After this, he enters these OBCs into the computer

and logs them for clearing in clearing house in NRB. At the end of

the day, the OBCs come back from NRB. The OBCs which are realized

the officer in register write realized in front of it and which

are return he write return in front of it. The bills which are

cleared the officer give credit to their account and the bills

which are return due to any reason are sent back to the branch

where it came from and the owner of the cheques are informed about

their bounced cheque.

3.5.5 Remittance Department

This department helps to exchange the foreign currency with

Nepalese currency. This department also helps to make travel

cheque those who travel outside the Nepal. The transactions

performed by this department are fax transfer, performing pay

order, money transfer through Western Union & City Express and it

had network problem time to time & another is balance problem.

18

3.6. CBIL Products at Glance

Deposit Products

The bank has introduced various products recognizing the variouscategories of customers and their needs. The customers are servedthrough 33 branches and ATM outlets at major places as well asthrough any Point of Sales (PoS) accepting the Visa Debit Cardoffered by the bank. Various deposit products of the bank are asfollows:

Citizens Super Savings

Account(CSSA)

Citizens Euro Saving

Citizens Sharedhani Bachat

Khata(CSBK)

Citizens GBP Saving

Senior Citizens Savings Citizens Fixed Deposit

Citizens Matribhumi Bachat Citizens Call Deposit (NPR) Citizens Mahila Bachat Citizens Current Deposit Citizens Muna Bachat Citizens Rastrasewak Saving Citizens Recurring Deposit Citizens Bidhyarthi Bachat Citizens Zero Balance Account Citizens Special savings Citizens Saving Citizens Mofasal Saving Citizens Dollar Saving

Loans and Advances

Corporate Loan

Term Loan Export Financing Working Capital / Short term

Loan

Consortium

Financing Overdraft Other Loan Trust Receipt Loan

19

Consumer Loan and Other Product

Citizens Equipment Loan Other Loans Citizens Home Loan Citizens SME Loan Citizens Auto Loan Citizens Margin Lending Citizens Education Loan Loan against first class

bank guarantee Citizens Mortgage Loan Loan against Government Bond

Citizens Equipment Loan Loan against Fixed Deposit

Receipt NPR loan against FCY(Foreign

Currency) FD receipt Loan against Fixed Deposit

Receipt of other banks Citizens Gold Loan

Other Products and Services / Facilities

Citizens Debit Card(Visa

Card Network)

Cheque payment and

deposit acceptance

through network of

various other financial

institutions ATM Counter Service Unlimited

withdrawal(except in

evening counter) and

deposit Locker Facility Trade Operations 365 days Banking Facility Domestic and Overseas

Remittance facility Evening Counter facility INR Remittance facility ABBS facility Foreign Currency Drafts Internet Banking facility Traveler’s Cheque SMS Banking facility Clean Bill/Cheque

Purchase Nepal Telecom Prepaid and

Post-Paid Bill Payment

Documentary Draft

Nepal Telecom PSTN and ADSL

Bill Payment Cheque book and ATM facility SWIFT Service facility

20

CHAPTER IVANALYSIS OF ACTIVITIES DONE /PROBLEM SOLVED

4.1 Activities done / Problems Solved

The involvement as an intern in the CBIL, in Maitidevi branch, was

very fruitful from the aspect of gaining the practical exposure to

the banking industry as well as to the corporate world. Facing

the various situations in the branch helped me develop a new

insight of the works performed in the banking industry. The

analysis of the activities performed in the various departments in

which I got involved is given below:

4.1.1 Activities performed in Customer Service Department (CSD)

CSD is the front desk of an organization. When any customer visits

the institution then the first impression of the institution is

given by the customer service department. As the name suggests

this department is primarily involved in providing services to the

customers from answering the queries of the customer to delivering

the service of account opening and other auxiliary services.

The image and the reputation of bank depend upon effective

functioning of this department. The competence and attitude of the

sales staff, complaints handling, customer dealings, and after

sales service are all areas that affect customers’ perception of

the company and also their loyalty to company. It is the first

place where the customers first get the service.

I was placed basically in the CSD. Here I performed some of the

activities under the supervision of my supervisor due the

sensitivity of the issue and other activities on my own. Following

are the activities performed in the department during the period

of internship:

Account Opening

Cheque Printing

Account Closing

Handling Telephone Calls

Scanning and photocopy

Filing and record Keeping

Report Preparation

Relationship maintenance

Dealing with the customers’ complaints

Assist in various service delivery

Miscellaneous Activities

4.1.2 Activities in the Credit Department

Writing the security documents such as Mortgage Deed, Loan

Deed and Promissory Note under the supervision of ARO (Assistant

Relationship Officer).

Observing the activities in the Land Revenue Office while

visiting the office with the ARO.

Scanning of the various documents in the Credit Department as

instructed by the Credit Officer of the branch.

4.2 Analysis of activities performed

The activities performed in the branch were all new for this

intern. Having the enthusiasm to learn about the activities

performed in the bank and participate in the activities performed

a lot was learned and many experiences were gained. The performing

of these banking activities was never an easy task though the

learning of the activities and the performance was made easy due

to the effective teaching and training by the supervisor.

The analysis of the activities presented by this intern as given

below is based on the experience gained during the performance of

the activities and the observations made during the period of

performance.

The analysis of the activities performed in the CSD is given as

follows:

The task of dealing with the various natured people is indeed a

very difficult task. There are various types of customers to be

dealt in. some customers are very well mannered and co-operate

with the persons in the CSD. They are easy to be dealt with. While

some other are of irritating nature and it seems that they are

intentionally in mood to show such behavior. The employees in the

CSD need to be very patient in dealing with such variety of

customers. Same rule applied to the interns performing their job

in the department. Regarding the activities performed as an intern

the tasks of CSD seemed to be repetitive in nature. Though at the

beginning these activities seemed interesting things start to

become boring as time passes by. Many small things are to be kept

in mind along with the confidentiality of information of the

customers. So, at the beginning interns

22

interns get confused easily and get track of the activities as

they perform their task for some period of time.

Regarding the complaints of the customers it seems to say a thing

compulsorily. Some of the complaints made by customers occur due

to the fault of the system. For example, the complaint regarding

the ATM machines result due to the technical failure. Another

example is the wrong calculation of period of FD maturity for the

interest to be provided to the customers.

So, in conclusion, it can be said that the activities in the CSD

are simple yet challenging and repetitive yet sensitive. These

activities deserve proper attention of the employees along with

the satisfaction of demanding nature of the customers.

The analysis of the activities in the Credit Department is given

as follows:

These activities are more complex than the activities in the

Customer Service Department. The intern find less tasks to be

performed in the department by themselves as they need enough of

the time to know the technical and legal aspects of the tasks and

its sensitivity.

This intern had the opportunity to observe the activities in the

department and participate in some of them.

The activities in this department demand the intern to have some

basic knowledge about the legal terminologies and concepts as well

as some of the rules and regulations. The legality, sensitivity

and gravity of the activities as well as the security documents

demand extra care from the side of the concerned authority of the

department.

23

CHAPTER V

CONCLUSION AND LESSONS LEARNT

5.1 Conclusion

This period of internship in Citizens Bank was a very fruitful

experience. From this internship, the knowledge about the working

environment, the banking activities was gained and on-the-job

experience of bank was realized which shall prove to be a great

experience. Due to the interaction different people, variety of

skills gained and the involvement in the activities of different

departments of a commercial bank the experience gained would be

very helpful for future career development.

The study refers to the Customer service Departments (CSD) that

deals directly with the customer’s enquiries, handling complaints

and service distribution. CBIL is able to maintain strong

relationship with its customer through various customer oriented

products and services. A large part of this success is also

attributed to the maintenance of relationship with the customer

and other corporate houses and financial institutions. CSD has

been major source of attracting customers to the bank. The

politeness of the employee at CSD while handling the queries and

complaints, the way of receiving deposits by the tellers and the

instant delivery if service plays great role of importance in

winning the heart of customer and drive them to be loyal to the

bank and their services.

On these 8 weeks of internship, an overview of the working

procedure of the banking system of Nepal was understood. Having

gone through the systems of the bank, operation of system to some

extent was understood. The theoretical knowledge gained about the

customer relation was actually implemented in the practical

banking settings. Internship has worked over the development of

communication and interpersonal skill of the intern. Interaction

with different level officers of the bank and informal discussions

succeeded in improving the knowledge about the banking scenario

and different banking terms enhancing the decision making and

problem solving skill.

5.2 Lessons Learnt

The involvement of the intern in the activities of Customer

service Departments (CSD) provided a lot of knowledge about the

banking system, its working system, and communication and inter-

personal skills to deal with customers, senior employees and co-

workers. The study helped the intern to draw the outline about the

working activity of Customer service Departments (CSD) and other

departments as well.

From the internship the intern gained the following lessons:

For any organization customers are the crucial part that

determines the success or failure of the institution. Satisfied

customers are the reason for any successful organization.

The working process of dealing with customers while providing

service and handling complaints and queries should be

satisfactory enough to retain the existing customers and

attract new ones. Customers are ready to be linked to the

branch if they get satisfactory service.

Time management skill and its importance were learnt. One has

to deal with numbers of customer at once, so everyone should be

equally treated.

Role of communication and inter-personal skill while handling

the customer is very crucial in CSD to motivate the customers

and maintain healthy relationship with them.

The employees in the CSD give first impression to the

customers. So, they should have a good level of self-confidence

while dealing the customer along with the skill to deal with

them properly.

Patience is the key to handle the customers. One has to be calm

in any kind of situations while dealing to the customer.

Behavioral issues should be considered

Co-operation is the symbol of bank being customer-friendly. So

the person at the CSD should be as much helpful as she can be

to make positive impact of the bank.

Proper documentation is helpful for the smooth flow of work as

well as a good and efficient means of reference in case of to

the past cases and activities.

The intern learned to use the photocopy machine and scanner to

copy and scan the documents as the process of documentation in

the bank.

The intern was also familiar to actual job stress.

25

5.3 Recommendations

The initial period of internship was spent in getting habituated

to the environment of the Customer Service Department.

On the basis of experience gained and observation made while

working as intern, following are the recommendations to the bank:

1. The ATM terminals placed in the various places has frequently

created problems to the customers while withdrawing their

money. Customers’ complaints are very often related to the

ATM machines. This should be considered seriously enough as

it might have a negative impact on the goodwill of the branch

as well as of the bank.

2. When the customers receive notice (through SMS) about the

transactions of withdrawal and deposit they do not receive

the account number on which the transaction was carried out.

If a customer has multiple accounts then s/he finds it

difficult to identify the account from which the transaction

occurred.

3. Bank should give its customers the notification regarding the

changes in interest rates of deposits and loan rates to the

customers in their cell phones through the service similar to

SMS banking. It is found that many customers are surprised to

find the interest rates changed as the current means of

information delivery seems less effective.

4. The space in the Cash department and CSD does not seem to be

sufficient enough for the staffs to perform their duties

effectively and efficiently. As the branch has occupied two

flats the rearrangement of office layout must be considered.

5. The branch should consider the arrangement of parking space

seriously as the customers are facing the parking problem.

Since the road extension is coming to the end the arrangement

of such parking space will be permanent.

26

BIBLIOGRAPHY

Acharya, Prajita. (2010). Internship Report. Customer Service

Department of Citizens Bank International Limited. Kathmandu.

Limited, C. B. (2012). Fifth Annual Report (Fiscal year 2067/2068).

Kathmandu: Citizens Bank Interantional Limited.

Prof. Manandhar, K.D. , & Pokhrel, S.B. (2009). Marketing Financial

Services. Kathmandu: Asmita Books Publishers & Distributors (P) Ltd.

Unaudited Financial Results (Quarterly). (2012, August 8). Karobar

National Daily .

Zeithaml, V. A., & Bitner, M. J. (2006). Services Marketing. New

Delhi: Tata McGraw-Hill Publishing Company Limited.

www.ctznbank.com

www.nrb.org.np

www.wikipedia.org

APPENDICES

Appendix 1

Appendix 2

Management Team of CBIL

Name DesignationRajan Singh Bhandari Chief Executive Officer (CEO)Ganesh Raj Pokharel Chief Administrative Officer

(CAO)/ Company SecretaryRaju Nepal Chief Operations Officer (COO)

Bodh raj Devkota Chief Credit Officer (CCO)Ramdhan Shrestha Chief Financial Officer (CFO)

Kamal Bikram Singh Chief Manager- Deposit and

Market

Appendix 3

Interest Rates of CBIL Deposit Products

S.N.

Deposits Interest Rates (p.a.)

1 Citizens Savings (NPR) 4.00%2 Citizens Rastrasewak Savings (NPR) 5.00%3 Citizens Bidhyarthi Bachat (NPR) 4.5% 4 Citizens Zero Balance Savings (NPR) 4.00%5 Citizens Mahila Bachat (NPR) 5.00%

6 Citizens Muna Bachat (NPR) 4.00%7 Citizens Matribhumi Bachat (NPR) 4.50%8 Citizens Senior Citizens Savings (NPR) 4.00%9 Citizens Special Savings (NPR) 5.00%10 Citizens Super Savings (NPR) 6.00%11 Citizens Sharedhani Bachat (NPR) 5.00%12 Citizens Mofasal Bachat Khata 6.00%13 Citizens Recurring Deposit

3 years 7.50%5 years 7.75%7 years 8.00%

14 Citizens Fixed Deposit (NPR)Below 3 months 5.00%3 months below 1 year 6.00%1 year and above 7.50%Citizens Kosheli Nichhep Yojana (7 years)

Doubles in 84 months

15 Citizens Call Deposit (NPR) Up to 11.50% p.a.16 Citizens Savings Account (FCY)

GBP 0.50%EURO 0.50%USD 0.50%

17 Citizens Call Deposit (FCY)GBP 0.25%EURO 0.25%USD 0.25%

18 Citizens Fixed deposit (FCY) Negotiable

Appendix 4

Branches of CBIL

SerialNo.

Branches

1 Corporate Office/Kamaladi Branch

2 Biratnagar Branch

3 New Road Branch

4 Kumaripati Branch

5 Koteshwor Branch

6 Bouddha Branch

7 Birgunj Branch

8 Pokhara Branch

9 Nepalgunj Branch

10 Narayanghat Branch

11 Butwal Branch

12 Dhangadhi Branch

13 Birtamod Branch

14 Kalanki Branch

15 Thahiti Branch

16 Nayabazar Branch

17 Maitidevi Branch

18 Beni Branch

19 Ghorahi Branch

20 Gaighat Branch

21 Kirtipur Branch

22 Narayan Gopal Chowk Branch

23 Mahendranagar Branch

24 Kapan Branch

25 Pathlaiya Branch

26 Madhyapur Thimi Branch

27 Humla Branch

28 Charikot Branch

29 Itahari Branch

30 Bhaktapur Branch

31 Janakpur Branch

32 Patandhoka Branch

33 Surkhet Branch