1

TRAINING REPORT ON General Banking and Lending Policy of Shine Resunga Development Bank

Submitted to Maharishi Dayanand University, Rohtak Towards Partial Fulfillment of Requirement Of Two Year Full Time Master of Business Administration Degree Programme SUPERVISOR :
Mr. Ajay Kumar Patel

Submitted By: Name: Lok nath bhusal Roll No:

MBA 3rd SEM

Assistant Professor

Rawal Institutions of Management ( 2k13)

DECLARATION

I Lok nath bhusal, hereby declare that the training report titled General Banking Analysis is completed under the supervision of Rajesh Goutam at Shine Resunga Development Bank Ltd and Mr. Ajay Kumar Patel, Assistant Professor, Rawal Institute of management, Faridabad. I have also been in regular contact with my supervisors. The training report is an original work and the study in whole or part has been not presented/ published/ submitted for the award of any certificate/diploma/degree to any Organization/ Institute/ University to my best knowledge.

Signature of Student

ACKNOWLEDGEMENT
I owe my gratitude to my project guide for her guidance and support at each and every step. It would not have been possible to see through the undertaken project without her guidance. I would also like to thank all faculty members of my college. This is a humble effort to express my sincere gratitude towards those who have guided and helped me to complete this project, which is acumination of the Master of Business Administration degree being conferred by M.D. University. Last I would like to thank all the respondents for their co-operation.

( Student Name)

TABLE OF CONTENTS

s.no 1 2 3 4

Chapter Introduction Organization Profile SWOT Analysis Research Methodology 4.1 Objective of the study 4.2 Tools of the study 4.3 Literature review

Page Number 5-20 20-35 36-39 40-46

5 6 7 8

4.4 Limitation Of the study Current scenario of banking industry of Nepal Data Interpretation and Analysis Conclusion and Recommendation Bibliography

46-50 51-63 64-67 68

CHAPTER 1

INTRODUCTION

1. Introduction:
As my topic of report is General banking and lending policy so I would like to mention a brief theoretical concept about my topic . as we all know that, Bank is a authorized financial institutions and the business in which they engage, which encompasses the receipt of money for the deposit, to be payable according to the terms of the account; collection of cheques presented for payment; issuance of loans to individuals who meet the certain requirements; discount of commercial papers; and other money related functions. From the above definition of the bank and its fundamental functions all these above are also consider as the general banking system of a banking institution. Mostly general banking of a banking institution involves following: 1. Loan and Advances. 2. Deposits. 3. Remittance. 4. Other products and Service.

1) Loan and advances:

A loan is a type of debt. Like all debt instruments, a loan entails the redistribution of financial assets over time, between the lender and the borrower. In a loan, the borrower initially receives or borrows an amount of money, called the principal, from the lender, and is obligated to pay back or repay an equal amount of money to the lender at a later time. Typically, the money is paid back in regular installment, or partial repayments; in an annuity, each installment is the same amount. The loan is generally provided at a cost, referred to as interest on the debt, which provides an incentive for the lender to engage in the loan. In a legal loan, each of these obligations and restrictions is enforced by contract, which can also place the borrower under additional

6 restrictions known as loan covenants. Acting as a provider of loans is one of the principal tasks for financial institutions. The terms of a standardized loan are formally presented (usually in writing) to each party in the transaction before any money or property changes hands. If a lender requires any collateral, this will be stipulated in the loan documents as well. Most loans also have legal stipulations regarding the maximum amount of interest that can be charged, as well as other covenants such as the length of time before repayment is required. Loans can come from individuals, corporations, financial institutions and governments. They are a way to grow the overall money supply in an economy as well as open up competition, introduce new products and expand business operations. Loans are a primary source of revenue for many financial institutions such as banks, as well as some retailers through the use of credit facilities Loan and advances dominates the assets side of the balance sheet of any bank. Similarly, earnings from such loans and advances occupy a major space in income statement of the bank. It is very important to be reminded the most of bank failures in the words are due to shrinkage in the value of loan and advances. Hence, loan is known as risky assets. Risk of non-repayment of loan is known as credit risk or default risk, so before providing the loan bank need to analyze various factors related with the loans and borrowers. Such as loan purpose, loan amount, repayment-source, repayment schedule, history of the business etc. There are many types of loan that a banking institutions offered like: Agricultural loans. Industrial loans. Housing loans. Gold and silver loans. Personal term loans. Hire purchase loans ( vehicle loans). Education loans etc.

2) Deposits:
Deposits are the major source of fund for any banking institutions, generally deposit is a sum of money kept in a bank account by the general public, usually to gain interest. There are mainly four types of deposits, they are :

a) Saving Account:
These are the simplest of deposits. You deposit money into account and you can withdraw it anytime. There would be a small limitation on the number of times you can withdraw money from your account. The money in saving accounts earn an interest of around 3.5%.

b) Current Account:
These are similar to saving account with two small differences. One, is the money in current account does not earn interest two is, you any numbers can withdraw any numbers of times.

c) Fixed Deposit:
This is a deposit product where you deposit a certain sum of money with the bank for a specific duration of time. As per the deposit agreement you are expected to let the money be with the bank based on the deposit tenure. Hence the interest offered on such deposits is higher than normal deposits. Also you will attract a penalty charge for pre-closing such deposits.

d) Recurring Deposit:
These are similar to fixed deposits with a difference being, you deposit a small amount of money every month into this account for a specified duration of time and the bank would compound the interest every month and pay you in lump at the end of the tenure.

3) Remittances:
Generally remittance refers to the amount of money that is send from abroad. Under this service the bank provides the remittance received either from the abroad or from within Nepal. There are many remittance services available in context of banking institutions in Nepal, they are: Western Union Money Transfer. Money Gram. IME ( International Money Exchange). Prabhu Money Transfer. Laxmi remit. Nabil remit. Himal remit. City remit. BOK Money Transfer.

4) Other products and services:

The other product and services of the banking institutions are as follows :

a) Mobile Banking:

9 The bank has bunched many mobile services, a mobile banking solution for the first time in case of other development bank. Through this product our account holders can performed financial transaction, Non financial transaction and receive debit/credit almost without having to remember the SMS short code of the bank and memorizing cryptic command and syntax.

b) E- corporate:
E-corporate is an internet based software application where client can submit LC/ draft Application through interest for bank to process the transition.

c) Any Branch Banking Services(ABBS):

In todays world technology is paramount and its role in a service industry like banking is growing all the more in the twenty first centuries. SRDB, realizing this fact has made all its services and products and services are accessible to its customer no product are renowned care banking software. As all above discuss functions of banking institutions are fall in general banking system which I will be discuss in this report in a appropriate manner.

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2.

ORGANIZATION PROFILE :

2.1 Introduction:
Shine Development Bank limited was established in 22 February 2009. Shine Development Bank Ltd., a financial institution, provides financial products and services in Nepal. The company offers saving and fixed deposits; and cash remittance, any branch banking, ATM, and SMS and Internet banking services. It also provides hire purchase, business, real estate and housing, industrial, agricultural, educational, foreign employment, overdraft, personal, and other loans to meet the financial requirement of institutions and individuals; and deprived sector loans to the deprived groups to empower their financial status. The company is based in Rupandehi, Nepal with branches in Sandhikharka, Yogikuti, Mangalapur, and Rudrapur. Now this bank has been merged to Resunga Development Bank in 17 march 2013 and they are jointly running the bank as the name of Shine Resunga Development Bank Limited. so for my internship report purpose I would use the data of shine development bank for the sufficient data of at least five year. The Bank has been established solely with the aim of getting exclusive confidence of Nepalese market by rendering global standards of services through professional & quality management. SRDB has been promoted as a dedicated bank with a primary focus in the development of industrial trade and commercial in Nepal Besides debt financing, the bank also offers assistance to the clean and renewable energy projects by way of private equity and advisory and consulting services. The Bank which has been in profitable operation from its inception, has managed robust growths in its overall business and profitability during the recent years. The Bank offers a complete suite of banking products and services including transaction banking, business banking, project finance, corporate banking and consumer banking.

The Board, supported by the management team comprising of young, enthusiastic professionals, has successfully embarked on a multi-pronged strategy of consolidation, administrative streaming, human resource up-skilling, strategic cost management, focused non-performing assets management, balance sheet and treasury management and controlled asset growth in

11 tandem with strengthing the credit culture and strategic marketing and sales. The Bank is rated as "A" class financial institution by Nepal stock Exchange since listing of its public shares. SRDB is committed to provide superior banking products and financial to its customers through efficient and cost-effective service delivery; offering of new innovative products and friendly customer service; and at the same time maintaining confidentially, professionalism & good governance. It consistently upgrades its processing systems and technology support besides broadening its scope, range and quality of services. All its branches are interconnected through leased line/optical fiber back-ups and are capable of providing on-line real-time banking services. The Bank believes in continuously offering new and value added services to customers with commitment to quality and value to clients. Accordingly, the Bank has been in the forefront in launching Superior products with unique customer friendly features with immense success.

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2.2

Mission and Objective:

2.2.1 Mission Statement:

Its core mission is to collect the financial liquidity of the country in the form of deposit and to prop up the economic development of the country by investing on the locale like industry, business, agriculture and the other entire possible production sector which are fit in the outlook of business. It also tries to provide the international level of banking and financial service to its customers. SRDB aspires to be the best development bank in Nepal with global network. Every organization is established with some goal to be achieved. Some of the special features better we say quality about them that lead to the achievement of their goal are as follows: Provide soft interest rate. Provide fast service and cooperation. Provide maximum earning on different types of deposit schemes. Operate special program on different types of deposit schemes. Operate special program on selected poor and back ward society by utilizing unused labor and skill to increase productivity. Provide cooperate in social welfare. Provided reduced poverty from the concerned authority. Follows the computerized accounting interest rate on fixed deposit.

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2.2.2 Objective:
The main objectives of this bank is to serve the people and the nation providing world class banking products and services through professional and quality management. The main objectives of this bank are as follows: To provide standard and reliable financial services to the general public by protecting and promoting the rights and interest of the depositors, and shareholders of the bank.

To bring about such financial resources, from internal and external sources, as may be required for the establishment, development expansion and enhancement of capability and productivity of agriculture, industry, trade and other productive business which appears feasible from business viewpoint, and render support for bringing about dynamism in the development of industrial, trade and agricultural sectors of the country. To establish, operate, develop, expand and promote manufacturing and employment-oriented business in rural and urban areas. By properly utilizing the available skills, labor and capital, to provide such financial resources, technical and managerial consultancy service, training and technology as may be required for the same, and be actively engaged in, and thereby render support for, poverty alleviation.

To provide financial intermediary service through institutional investment by integrating the capital scattered in the country and fair competition.

To provide mid-term and long-term financial means and resources as may be required for investment to be made in the development of infrastructures of the country in a business like manner, while remaining vigilant towards the protection of environment.

14 To mobilize and provide such mid-term and long-term capital as may be required for the establishment, operation, protection and promotion renewable energy and other infrastructures and business related therewith, by the private sector.

2.3

Major Market and Customers of SRDB:

Shine Resunga Development bank now covered most of the geographical places of Nepal and the information about SRDBs head office and all its branches are given below:

Head Office Tamghas-01, Naya Bazar, Gulmi, Tel: 079-520715, 520995, 520996, 520997, Fax: 079-520248 Corporate Office Butwal-08, Siddhartha Road, Rupandehi, Tel: 071-551500, 551498, Fax: 071-551497, 544497 Branch Offices: 1. Sandhikharka, Arghakhanchi, Tel: 077-420727, 420738, Fax: 077-420728, Branch Manager: Dipak Pokharel. 2. Wami Taksar, Gulmi, Tel: 9747055795, 9747055796, Branch Manager: Krishna Hari Bhandari 3. Shantipur, Gulmi, Tel: 9757000923, 9757000995, Branch Manager: Thaman Bahadur Rana. 4. Khaireni, Gulmi, Tel: 9757001048, 993791030, Branch Manager: Prakash Shrestha. 5. Yogikuti, Rupandehi, Tel: 071-438657, Fax: 071-438658, Branch Manager: Rajesh Gautam. 6. Baletaksar, Gulmi, Tel: 071-620466, 620467, Branch Manager: Umesh Gyawali. 7. Majuwa, Gulmi, Tel: 9757001046, 993791144, Branch Manager: Krishna Prasad Aryal. 8. Simaltari, Gulmi, Tel: 9747061345, Branch Manager: Bhuwan Shrestha. 9. Manglapur, Rupandehi, Tel: 071-562720, Fax: 071-562719, Branch Manager: Rajendra Kumar Wagle.

15 10. Rudrapur, Rupandehi, Tel: 071-620480, Branch Manager: Lekhnath Poudel 11. Ramnagar, Bhumahi, Nawalparasi, Tel: 9757002346, Branch Manager: Narahari Poudel. 12. Thada Amarai, Arghakhanchi, Tel: 071-620485, Branch Manager: Baburam Panthi. Extension Counters: 1. Chutrabesi Extension Counter, Arghakhanchi, Tel: 077-420789, In-charge: Anjali K.C. 2. Jyoti Nagar, 4 No. Extension Counter, Karahiya, Tel: 071562721, In-charge: Ashok Pandey.

2.4

Major Customers Of SRDB:

The primary concern of Shine Resunga Bank Limited of Nepal remains to render their services to various sectors like the priority sector, the weaker sections of the society, small entrepreneur and to the individuals. It is known for the services provided in various forms of loans like the home loans, educations loans and others. There is also tale-banking facility at bank. The bank has earned a lot of honor by making its dedicated services available to the top export, import houses, business houses and it yet has a room for accommodating more clients. SRDB have its customer to the product area as well as in service area. The customers associated with this bank are mostly involved in the hotel business, restaurant, departmental store, educational institution, stationery business and transportation, wholesale shop and retail shop, small industries within the country and near districts as well as areas of yogikuti as well as Butwal city, husbandry business, forming, small shops and lubricant business. Customers related to deposit and remittances are included.

2.5

Members of Management Team:

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NAME
Mr. Prakash Poudel Mr. Sarjan Bhattarai Mr. Hum Nath Gyawali Mr. Bhuwan Prashad Panth Mr. Gopal Khanal Mr. Bhuddi Jeevan Bhusal Mss. Namrata Thapa Mr. Devi Prashad Poudel Mr. Lal Mani Panthi Mr. Dipak Pokhrel Mr. Regional Manager (Gulmi District)

DEGIGNATION
Chief Executive Officer Deputy General Manager Head: Credit Department Head: Account, Finance & General Administration Department Head: Legal Department Head: Human Resource & Reconciliation Department Head: Operation & Treasury Department Head:InformationTechnology Department Regional Manager (Gulmi District) Regional Manager (Gulmi District) Manager : Corporate Office

Table. No. 1.1

2.6

Major Services Provided By SRDB:

Shine Resunga Development Bank Limited of Nepal has provided many services under the guidance of its head office they are as follows: 1. Loan and Advances. 2. Deposits. 3. Remittances.

17 4. Other product and Services.

1. Loan and advances:

The financial institution has lunched various types of leading scheme to cater the needs of various groups of the segment of the society. Some of the leading products are enumerated in next page.

a . Agricultural Loans:
The Agriculture loans consists of loans from fisheries, animal, husbandries, vegetable and cash craps framing and poultry farming, bee farming etc. the loan is of seasonal well as long term depending on the basis of the cash flow of the concern loans. Cane farming is the growing sector in the district of Rupandehi, Gulmi and Arghakhanchi.

b . Industrial Loans:
Industrial loan are the other area where the Institution is giving emphasis, plastic pipes, electricity, utensils, dairy, confectionery, biscuits, bakery, handicraft rice and oil, fumitories, automobiles repairing and parse etc. are the potential industries where the institution will be opted for industrial loan are provided such as overdraft, project long term loans and working loans.

c . Housing Loan Schemes:

18 Housing is the cares are where banks are providing loans. The types of loans are becoming very popular amount the types of loans are as well as the client specially fixed income groups. The residential as well as the business complex are growing rapidly. The loan is granted of 70% percent of the total housing construction. Similarly business complex loans will be provided under consortium loan scheme.

d . Hypothecation Loans:
Hypothecation refers to the pledging of securities or other assets as collateral to secure a loan, such as a debit balance is a marginal account. It means to pledge an asset as collateral on loan without the lender taking possession of the collateral. It especially applies to mortgages: the burrower hypothecates when he/she pledges the house as collateral for payment for the mortgage, or he/she may hypothecate the mortgage in order to burrow against the value of the house. In both situations the burrower retains the house, but the lender has the right to take possession if the borrower does not service the debt.

d . Gold and Silver Loans:

It refers to the amount of loan provided to the customer by the bank by taking Gold and Silver as a collateral. It is the pledging of Gold and Silver to secure the loan. Currently, NBL has charged the Interest rate of 16 % on this type of loan. Loan amount is provided by determining the quality as well as grade of the Gold and Silver. Quantity also is the major considerations while providing the amount of loan. But nowadays, loan is provided by pledging gold but not silver by SRDB.

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e . Personal Term Loans:

Personal term loans are those types ofloan where bank provides loan for personal use to the customers. In personal term loan, customers can use loan amount anywhere, where they want. Customer can take the amount of loan at the range of Rs. 5 lakhs to Rs. 50 lakhs. The maturity of such loan in SRDB is 10 years. The customers having regular source of income only are capable to get such loan. The interest rate charged in such types of loan is 19 %. SRDB provides loan up to 60% of value estimated by valuator acceptable to the bank. The minimum tenure is 2 years and maximum up to 15 years. No pre-payment fee will be charged if paid after maturity of 1/3 of the loan period. 2% prepayment charge will be levied if prepayment is made within 1/3 of loan period.

The type of loans and their related interest rates are given below:

Types of Loan Hypothecation Gold & silver Personal term loan Housing loan Auto loan Agriculture loan

Interest Rates 15% 16% 19% 16% 18% 14.5%

20 Business O.D Table. No. 1.2 18%

2. Deposit:
Deposits are the major source of fund for any banking institutions, generally deposit is a sum of money kept in a bank account by the general public, usually to gain interest. This bank is targeting to develop various type of deposit scheme as market below.

i.

Current Deposit:
The current deposits have been the most lubricant deposit for the development banks. All those business institution current account will be transfer to those financial institutions. The institution will compare inside the Industrial area of Butwal to alternate current the current account. They aimed for provide a priority country service and overdraft facility.

ii.

Saving Deposit:
Saving deposit are the most lubricant deposit schemes for the most lubricant deposit scheme for the marginal saucers and fixed income group. The financial institution will launch Janata deposit scheme to be collected at each house holds and Interest will be calculated on minimum monthly balance amount. Other lunched program of SRDB are:

Woman Saving. Normal Saving. Special Saving. Nepalaxmi Saving.

21 Senior Citizen Saving, etc.

Types Of Saving Deposits Woman Saving. Normal Saving. Special Saving. Nepalaxmi Savinng. Senior Citizen Saving. Table. No. 1.3

Interest Rates 7% 6.5% 6.75% 7% 7.5%

iii.

Fixed Deposit:
This institution is giving a great emphasis on fixed deposits as this will be the back bone for long term leading. The target group is going to pension holders, students, self employed and business people. Various types of fixed deposits are introduction based on the maturity period and the amount to be deposit. There are various fixed deposit scheme are Education deposit, Recurring deposit scheme, Jestha Nagrik, Samman Fixed deposit, Mahila Samman Fixed deposit Scheme etc. the SRDB fixed deposit Scheme maturity period are:

Maturity Period 6 months 1 year Above 1 year

Interest Rates 7% 10% 10% to 12%

22 Table.No.1.4

3. Remittances:
Under this service the bank provides the remittance received either from the abroad or from within Nepal. The bank works as the agent of eleven remittance company bank can has lunched the other remittance service in recent year. The Shine Resunga Development Bank Limited with focus on effectively channeling financial resources, which come in private transfer agencies which are as follows: a. b. c. d. e. f. g. h. i. Western Union Money Transfer. Money Gram. IME (International Money Express). BOK Money Transfer. Prabhu Remit. Laxmi Remit. Nabil Remit. Himal Remit. City Remit.

4. Other products and Services:

a. Mobile banking: The bank has bunched many mobile services, a mobile banking solution for the first time in case of other development bank. Through this product our account holders can performed financial transaction, Non financial transaction and receive debit/credit almost without having to remember the SMS short code of the bank and memorizing cryptic command and syntax. b. E- Corporate:

23 E-corporate is an internet based software application where client can submit LC/ draft Application through interest for bank to process the transition. c. Any Branch Banking Services: In todays world technology is paramount and its role in a service industry like banking is growing all the more in the twenty first centuries. SRDB, realizing this fact has made all its services and products and services are accessible to its customer no product are renowned care banking software. d. Extended Banking Hours: To make possible flexible transition hours for those customers who are busy during office hours Nabil has extended 365 days of a year banking services and evening counter from some of its selected branches.

2.7

Organizational Design And Structure:

Shine Resunga Bank Limited is a loving wide regional of banking and providing service through a Network of 12 branches and 2 extension counters. Its head office is located at Gulmi. Head office can control of the over all branch office of SRDB. Each sub-branch manager is responsible for the activities held in his/her respected area and responsibility for the activities held in his/her respected area and responsible for head office. Head office can divided different authority and responsibility for each employee of an organization. The decision making process and the chain of authority follows top to bottom. Organizational Design and Structure Figure.no. 1

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aAAKSJA Branch Manager

Assistant Branch Manager

Cashier

Assistant

Assistant

Assistant

Assistant

Peers

Guards

2.8

Job Profile And Activities Performed By SRDB:

1.Activites Performed In The Bank:
Each employee performs his/ her own task assigned to their job on routine basis. They are responsible to their job on routine basis. They are assigned to their job on routine basis. They are responsible for their own performance. Activities performed in the organization depend upon the status, position and right acquired by them. The activities performed by several employees in the bank areas follows. Activities performed as an Intern: As an intern, I have performed several tasks in the bank with close cooperation and supervision of the field work. Accountant and loan department. They are as follows: To fill all the forms required for the formation of group.

25 To fill the loan application from and guarantee paper. To collect the amount of Installment on daily Interest rate basis. To make debt and credit voucher for each financial transaction. To daily and monthly income statement. To prepare general voucher and treasury report. The process of providing loan with the land as a security. The software is designed to operate or to provide all the services such as collection, record of savings for Insurance and for control purpose of DBMS. To record the file in the filling system. Behaviorally, I have leaned how to interact with how to interact with the staff members, the language they spoke, the altitude they show and the relation of the member with the manager. record of

2.Remmittance Department:

This department has the responsibility to deal with the transfer of funds from abroad especially from the Middle East countries. NBL is one of the formal banking channels which are helping to remit money back home safely and quickly from Nepalese workers from abroad. While performing the work in this department, I was able to get the basic concept of what remittance is, and the requirements and process of transferring money and its phenomena etc with the help of Miss Sumi. Under this department I had performed the followings activities: * Receive the pin code from the customer. A pin code was provided by money transfer for identification.

26 * Receive identity card e.g. citizenship, passport, license. * Obtain the form filled by the client and attach a copy of identity card in it. * Verify the transaction for payment & then provide a copy of payment to teller and file another copy of it. In order to provide the service throughout the zone, there are over 50 authorized subagents in different parts of the country. There are over 15 NBL REMIT location established in different parts of the country for rendering these services. It has established remittance relationship with a number of exchange companies and banks in Qatar, Kuwait and Saudi Arabia for rendering inward remittance services. To spend money in Nepal, the person of the foreign country has to go to the bank, then they have to fill the form with the details such as recipients full name and address, phone number, account number, name of remitted bank (e.g. NBL) etc. after this, when the foreign exchange teller accepts the remittance in local foreign currency along with a remittance transfer form and the remitter has to pay some amount for the service. Then NBL retrieves the transfer information using network password and file specific password supplied by the bank. After this process, when beneficiary comes to take the money by showing their ID or citizenship card, the bank has to distribute the remittance less (if any) to the beneficiary by making them fill form.

3.Marketing:
This is the most important and weighted department where we and opinions of people towards the bank were observed by me. Motivating people to open the account was also done by me, which helped me to increase my convincing power. I performed marketing of NBL bank about two hour a day for a week. During this time, I informed the people about the banking knowledge, importance and benefits of bank, product and services provided by the bank and the position of the bank. While marketing, I found very positive feedback about NBL and this made me so energetic and excited to provide the information and get the customers views towards the banks.

4.Problem Solved In The Bank:

27 Problems are inherently come at any stage of the business. Solving such problem need close supervision of the courses. Problems inventory analysis, brain strong reverse brain storming and the terms deliberate effect to overcome from the problems. Sometime it takes less time and effort to solve a problem while it takes to long and required large human resources according to the nature and the characteristics of the problem. As an interne I have encountered with so many problem during training session each and every problem solving activities helps me to take valuable knowledge about the way that bank performs. The key problem solving activities are as follows: Increasing the opening of account through words of mouth to my friends and relatives. Making customer aware about the problems they solved during their work time. Making customer aware about the banking services and facilities to make promotion about the bank. I used to solve the queries of people relating to different types of account. I used to solve the problems related to filling the forms and cheque if people wrongly.

5.Observation Of Key Services:

As a key observation of intern, I observed the way of doing task by the employers, their way of behaving to the co-workers, senior and juniors, satisfaction toward job by the employer, dedication toward the work, attitudes of the employer, behavior toward the customer, punctuality and discipline. As a whole I have observed all the members of NBL Bank from top to bottom are dedicated towards their organization. They all are committed and always try to give their best performances. Organization is also concerned about their employees. Fair and timely salary, equal treatment, participation, skill development trainings, bonus, favorable work environment,

28 benefits and perks, allowances, promotion, etc are given to employees on the basis of their job position and job performances. Internship in NBL also helps me to observe and study about organizational activities for the specific period of time and to gain first hand and actual knowledge about General Banking. It also helps the student like me in identifying and studying the problems and prospects of organization using the conceptual knowledge acquired by us the classroom. It also develops our initial research skill, problem finding and solving skill, and so on.

Work Flow Procedure Figure. no.2 step-1 Preliminary Discussion between banks ands client on business

Submission proper / necessary document

step-2

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Document inspection

step-3

Control inspection / project

step-4

Report

step-5

Report

step-6

Loan Approval or Modification

step-7

Reject

step-8

While providing loan to the clients some procedures may be flowed. Those produces which is followed by the bank is presented in the above diagram which has six steps. The first step is discussion between clients & bank. Second steps involve submission of necessary documents and there after the bank inspected the document. The next step is to control the project. Thereafter looking at report of clients banks approve loan or reject loan.

Loan Recovery Procedure Figure.no.3

30 1 General reminder notice telephone conversion 2 3 Re Flow Up

Client Visit Project Visit

Strict Flow

5 6

35 and 15 notice to pay the over due loan 15 days notice to pay the 0ver due

If Necessary 7 days notice to pay the due

2.9

Organization Performance: 1.Financial Aspect:

SDB has provided the better financial service to the customer every year, the financial transactions are increasing so, and some financial transactions are as follows: Deposit: Deposits are main source of funds for the every financial Institution. This bank is targeting to develop various type of deposit scheme as market. ( In Rs 000)

31 Fiscal Year 2009/10 2010/11 2011/12 2012/13 Table.no.1.5 Deposit Rs.12000 Rs.559231 Rs.1278749 Rs.1924737

Figure.no.4

In fiscal year this banks Deposit is Increase in every year. In 2009/10, the deposit is 1 millon 2 lakh only because it was its opening year but in 2010/11 Deposit is Increase to 55 crore 92 lakh and 31 thousand. Similarly this banks deposit scheme is increasing in every year. In 2011/12 deposit is rapidly increased and so on. In above figure denoted that this banks deposit transaction are increased in every year. So, SDBs deposit (borrowing) performance is very betters then comparison of other development bank. This bank has collected various funds and invests the different areas which help to increased per capital income to customer.

Loan:

32 The NBL has lunched various types of lending scheme to carter the needs of various group of this banks in lending product is increasing in every which shown in following figure. ( Rs. 000) Fiscal Year 2009/10 2010/11 2011/12 2012/13 Table.no.1.6 Loan Rs. 1000 Rs.45505 Rs.868398 Rs.1596711

33

Figure.no.5

In Fiscal year the SDBs lending product increasing in every year. In Fiscal year 2009/10 the loan service is Rs. one Thousands, but in fiscal year 2011/12, lending product increase above Rs. 8 lakhs. Similarly this banks lending service is increasing in every year. In economic year 2012/13 lending product has also rapidly increased by Rs. 15 lakhs. So, we calculated that the SDBs lending performance is better then other banks.

Operating and Net Profit :

Fiscal Year 2009/10 2010/11 2011/12 2012/13

Operating Profit 50000 160000 269510 467700 Table.no.1.7

(Rs.00) Net Profit 25000 100000 150000 275000

34

Figure.no.6

In Fiscal year 2009/10 the SDBs operating profit is Rs Fifty Thousands and net profit is twenty five Thousand. Similarly in economic year 2010/11 this banks operating and net profits is increased which operating profits amount is 1 lakh and 10 Thousands. Similarly in fiscal year 02011/12, this banks operating profit is rapidly increasing by Rs.4 lakh sixty seven thousand and net profit also increased Rs.2 Lakhs and 75 thosand. So we concluded that this banks operating and Net profit performance is very better which compassion of other financial institution. The banks operating and Net profit is very better. So bank decided to provide 10% Bonus shared and 16% cash dividend to its shareholders from the profit of fiscal years 2012/13.

35

36 3.

SWOT Analysis:
SWOT analysis is an important tools to identify or to evaluate the organizations internal strengths and weaknesses and also the external opportunities and threats. SWOT stand for : S= Strength W= Weaknesses O= Opportunities T= Threats SWOT analysis is one of the most applicable analysis which is held by the organizations also for study the environment of the organization. The SWOT analysis (alternatively SWOT Matrix) is a structured planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. A SWOT analysis can be carried out for a product, place, industry or person. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieving that objective Setting the objective should be done after the SWOT analysis has been performed. This would allow achievable goals or objectives to be set for the organization.

Strengths: characteristics of the business or project that give it an advantage over others Weaknesses: are characteristics that place the team at a disadvantage relative to others Opportunities: elements that the project could exploit to its advantage Threats: elements in the environment that could cause trouble for the business or project

Identification of SWOTs is important because they can inform later steps in planning to achieve the objective. First, the decision makers should consider whether the objective is attainable, given the SWOTs. If the objective is not attainable a different objective must be selected and the process repeated. Users of SWOT analysis need to ask and answer questions that generate meaningful information for each category (strengths, weaknesses, opportunities, and threats) to make the analysis useful and find their competitive advantage.

37

Strength:
1. Shine Resunga Development Bank has vast network system in the nation thus helping customer to transact through bank from place to place. It has 12 branches nation wide to help the customers. 2. Shine Resunga Development Bank is well known for providing highly personalized service like ATM, e- banking, credit card, etc. It has also introduced a number of new product and services. 3. Human resources of Shine Resunga Development Bank are well trained and are dedicated toward its bank. It is providing high remuneration and other benefit to its staff

4. Shine Resunga Development Bank is equipped with latest technology, computer does most of the banking services. Thus the services of the bank are prompt and accurate.

Weakness:
1. The increase of the branches increases the operation cost, administration expenses, salary etc. 2. The political instability is another weakness that the bank is suffering. 3. Too much dependency in computer is not considered to be reliable. 4. Staffs are unwilling to give even required information. They dont want to cooperate with the ones who are not its real customer.

Opportunity:
1. Many people deposit their funds in this bank due to its skill in attracting people by adapting and attracting policies like interest rate, prompt services, ATM, credit card services etc. 2. Staff can perform their work more efficiently with the computers. The environment of the bank is sound which enhance its better performance.

38 3. People get employment opportunities since it has the highest number of branches in the country. 4. The policies of HMG & NRB rules & regulation always give confidence to the banking sectors to uplift the economy of the nation.

Threats:
1. Competitors are increasing. 2. The economic condition of the country is very poor. 3. Excess government pressure may create irregular banking transaction, which leads to bad reputation of the bank.

4. The bank should be discouraged to open account for the individuals or firm having bad name as well as illegal names which effects to society. It may be threat, which can ruin the bank.

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40

CHAPTER-2

4.

RESEARCH METHODOLOGY
As we know that research methodology is play a huge and significant role while preparing

any report writing so we have to have knowledge about the research methodology. Research Methodology is a way to find out the result of a given problem on a specific matter or problem that is also referred as research problem. In Methodology, researcher uses different criteria for solving/searching the given research problem. Different sources use different type of methods for solving the problem. If we think about the word Methodology, it is the way of searching or solving the research problem. In research methodology, researcher always try to search the given questions systematically in our own way and find out all the answers till conclusion. If research does not work systematically on problem, there would be less possibility to find out the final result. For finding or exploring research questions, a researcher faces lot of problems that can be effectively resolved with using correct research methodology (Industrial Research Institute, 2010). Research Methodologys are of many type like: Quantitative, Qualitative, Descriptive etc. they give us the way to write and to present our report in a systematic way. For preparing this report, field work research method will be primarily used. It will also touch the area of description research because this report has been prepared on the basis of description given by the personnel of the firm and data provided by them. The following methodology has been adopted for the analysis. Method Of Data Collection: Data collection usually takes place early in the improvement projects, and is often formalized through a data collection plan, Which often contains the following: 1. Pre collection activity agree on goals, target data, definitions, methods.

41

2.Collection data collections. 3. Present Findings usually involves some form of sorting. There are mainly two important types of data collection method like: Primary Method And Secondary Method. When we collect the data with our own using survey, sample it is known as primary data, primary data are firsthand data. When data are sufficiently available than primary data collection method are effective. And when we used the data from other source for our requirement it is known as secondary data. When original data are not available than secondary data are effective. Data from literature review, magazine and from others report work are used as secondary data. Secondary data are second hand data.

During my study period, secondary data becomes a supportive source to conduct the result and analyze them. Thus, in the process of report writing, the various data was provided by the bank. Through magazines, bulletins and the annual reports, the required data were collected. After sorting these data, various statistical tools have been used to analyze and interpret the financial aspect of the bank. Therefore on overall context secondary data has been used in maximum number.

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4.1 Objective Of The Study :

The main objective of the study are as follows: To assess the overall general banking activity of the bank.

To assess how efficiently and effectively bank providing different services to its customers.

To assess amount of loan flowed by the branch unit of the bank.

To assess the receiving of principal and interest to the bank.

To assess the outstanding loan, overdue amount and interest received.

To provide the credit facilities to the clients.

To assess the clients in terms of technical support in various segments.

To assess overall progress of the bank. Thus, above are the objectives of the study of the topic General Banking And Lending Policy.

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4.2 Tools Of The Study :

Analysis of data is a process of inspecting, cleaning, transforming, and modeling data with the goal of discovering useful information, suggesting conclusions, and supporting decision making. Data analysis has multiple facets and approaches, encompassing diverse techniques under a variety of names, in different business, science, and social science domains. Data analysis tools are may be statistical or the financial tools which are used to analyzed the data in a presentable manner so, the everyone can be easily understand the idea or information which is required to convey through the report. For the data presentation and analysis, researcher, takes the help of different simple statistical and financial tools. The data presentation and analysis tools used in this report are as follows: Simple Tables. Pie Chart Multiple Bar Diagrams.

Trend Lines.

Percentage and Correlation Analysis. Thus, above are the brief explanation about the the tools of analysis that are used in this report writing.

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4.3 Review Of Literature :

A literature review is a text written by someone to consider the critical point of current knowledge including substantive findings, as well as theoretical and methodological contributions to a particular topic. Literature reviews are secondary sources, and as such, do not report any new or original experimental work. Also, a literature review can be interpreted as a review of an abstract accomplishment. Most often associated with academic oriented- literature, such as a thesis, a literature review usually precedes a research proposal and results section. Its main goals are to situate the current study within the body of literature and to provide context for the particular reader. Review of literature is the, thus an essential part of all research studies. It is a way to discover what other research in the areas of our problem has uncovered. A critical review of the literature helps us to know or develop through understanding and insight into previous research works that relates to our study. The literature survey also provides the foundation for developing a comprehensive theoretical framework from which hypothesis can also minimizes the risk of pursuing dead-ends in research. Advantages of reviewing the literature applies to the design phase of our project. Designing a study involves several decision as to what variables to include and how to measure them, what techniques to use and soon. To do this report work for the first time in our academic year it has been prepared by consulting various literature, sources written by previous students in BBA in the previous year on the related topic in the purpose of taking an idea, how to give a good shape to the report. So, the field work report written by different students and other literature ideas (books, journals) are consulted about the matters related to the field work report that helped me in the course of writing this report. Management is a set of activities (including planning, organizing, leading and controlling) directed at an organizations resources (human, financial, physical and information) with the aim

45 of achieving organizational goals effectively and efficiently in a changing environment. (Ricky.W.Griffin, 2000) Review of literature is the way to discover what other researcher in the area of our problem has been uncovered. On the other hand, literature survey is that descriptive analysis of any specific topic which is related only that topic and gives more essential information. Its purpose is to develop some expertise in ones area to see what new contribution can be made and to receive some ideas for developing a research design. For preparing this field work report, the researcher uses the different books, ideas which help to presenting clear objectives of the study. The review is made from the analysis of annual report; the prospective and the information play to related finance company. Literature survey is that descriptive analysis of specific topic, which is related only that topic & gives more essential information. For preparing this field work preparing this field work report, the researcher use the different ideas, which helps to presenting clear objective of the study. According to Cheney and Moses An investment is a commitment of found made in the exception of some positive rate of return. If the investment is properly under taken the return will be commensurate with the risk the investment is properly under taken the return will be commensurate with the risk the investor assumes. Investopedia explains Loan as the act of giving money, property or other material goods to another party in exchange for future repayment of the principal amount along with interest or other finance charges. A loan may be for a specific, one-time amount or can be available as open-ended credit up to a specified ceiling amount.

46

4.4 Limitation Of The Study :

The preparation of this report based on some limitations, They are given below: The data, information and facts related to the report are based on secondary sources rather than primary sources. Four years data is considered for the study, which may not be sufficient to draw a right conclusion.

This report submits the data available from the concerned authorities. So the accuracy of the data fully depends upon them.

This report is based on annual report of Shine Development Bank limited so this may not be applicable to other bank and financial institutions.

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5.

Current Scenario Of Banking Industry Of Nepal:

Now a days Nepal economy is doing well, the main reason behind it commercial banking. Banking sector is growing faster and faster because it provide quality service and reasonable lending capital to borrower. May be one reason is it provide reasonable interest rate to the public. There are many services which is provide by bank ,which is beneficial to general public. The main motive of commercial banking is to invest the capital and to gain the profit which is really vey helpful for development of economy. There are various scheme which really attract the customer such as opening the account in an minimum balance. Hence, there is a competition between the bank which enhance the better quality of services ,So i must say the banking sector is growing so fast and fast. Despite of growing fast by the banking sector in Nepal the proper management or the monitoring of the functions of the banking sector is not that much efficient which creat a major challenge for the RBN of Nepal. The present scenario of Nepalese financial sector is in a stage of deteteioation. The problem is mainly seen in the lower class financial institutions categorized as ''kha" or "Ga" by Nepal Rastra Bank. A series of incidents rocked Nepalese financial market where many bad practices were seen. Most of the development banks and financial instructions director or managerial level made bad practices with the peoples deposit. They had miss used the money for wrong purpose and in an unauthorized way. The victim of the bad practice resulting in insolvency was Gurkha Development Bank at first. The managerial persons at managerial level had misused the deposits. Similarly, samjhana finaoce , united finance, people's finance, Nepal share markets and financial institute recently vibor development bank and the I don't think the list will conclude here.

48

The main reason behind the banks going insolvency is considered to be its investment in Nepalese real state sector which is in zero level. At times real state sector had boomed at a peak level. People invested in it in large volume and so did the financial institutions but now the real state sector is at a low point. Nepal rastra bank failed in proper monitoring of the banking institutions. Financial institution is in big trouble and the monitoring institution should be effective enough to solve the liquidity crunch to solve this problem. Presently the Nepalese Banking sector is facing a huge problem and is in critical juncture. So, in order to cope with this problem Nepal Rastra Bank (NRB) has directed the banking sector to go in the process of Merger and Acquisition. NRB has provided several benefits to the merging institutions. Responding to the benefits presented by NRB, the banks and the financial institutions of the country are opting in the process of merger. Mergers and Acquisition (M&A) refers to the aspect of corporate strategy, corporate finance and management dealing with the buying, selling, dividing and combining of different companies and similar entities that can aid, finance, or help an enterprise grow rapidly in its sector or location of origin or a new field or new location without creating a subsidiary, other child entity or using a joint venture. In the present scenario, there are mainly three reasons that forced the nepali banking sector to go in the process of Merger and Acquisition, They are given below:

1) Liquidity Crunch:
Liquidity refers to the amount of money in the form of cash. The amount of deposit in the bank are very low and the rate of loan recovery rate is also very low. So, liquidity has been a major

49 problem in Nepalese banks. Hence, M&A is believed to solve the liquidity problem as the deposits of the two banking institutions are combined as one.

2) Capital Requirement:
The paid up capital requirement of Nepali banks is currently 2 billion. However, the Government is planning to raise the paid-up capital requirement from 2 Billion to 5 Billion. It may not be difficult for large banks to meet the requirement set by the government but for the middle and small scaled banks, it may be very hard and sometimes impossible. So, M&A can be a solution to this requirement.

3) Open Financial Market:

Nepals Financial market is opened for the international investment on January 2010. One foreign bank has already applied to start operation. If foreign banks do enter Nepal, it concerns about the capacity of local banks to compete with its foreign counterparts. Hence, M&A will minimize costs, increase the economies of scale, and increase institution's capacity, thus being able to compete at international level. Although there are several advantages of Merger and Acquisition, and Nepalese banks are interested in this process, they may not be fruitful in all the case. Study by Wharton, Harvard, and Morgan has shown that Merger and Acquisition around the world have a failure rate of 50%70%. And in the case of Nepalese banking industry, in last seven years, Success rate of merger is 15%. In addition, Nepalese banking sector lacks sufficient corporate experience in mergers and acquisitions. Merger and Acquisition do not always lead to success or always failure. Impact of M&A depends upon how well the vision, mission and objective of two organizations are well integrated. Moreover, it depends on how effective the management is and how the stakeholders perceive the M&A decision. So, the M&A of any business organization should be carried out with sufficient homework. So, before undergoing a process of merger, it is very crucial to be

50 determined for merger expansion strategy to be undertaken. Otherwise, it may jeopardize the present situation and even worsen the condition of Nepalese Banks.

We can not blindly agree that the Nepalese banking sectors problem will be best addressed by the M&A strategy. The government should just not rely on mergers and acquisitions for addressing the problem of banking sector. Rather, it should bring appropriate fiscal policies and monetary policies to settle the problem. Spending of the budget at the final months of fiscal year reduces the flow of money in the market. The government should introduce deficit budget financing and spend the allocated budget at the current time, so that the velocity of money circulation will increase, and the liquidity problem will be addressed. Government should encourage the investments in the productive sectors. Investments in productive sector increase the value of the capital and hence, increase the chances of repayment of loan. Finally, not relying solely in the merger and acquisition, the government should provide additional benefits to encourage Joint Venture, Licensing, Franchising, etc. as they hinder the direct foreign investment and strengthen the condition of Nepalese banks to compete with international banks.

CHAPTER-3 6.

DATA INTERPRETATION AND ANALYSIS

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6.1 Presentation of Loan Flowed (Outflow) in Different Year:

To know about the loan management of Shine Development Bank Limited of Butwal the researcher collect the related data and information. The collected data were in the in the raw form. So it was difficult to understand. Therefore, in this chapter such data were presented by the table, graphs, chart, trend etc. And also such data were analyzed by using various statistical and financial tools to draw right conclusion.

Table .no. 1.8 Loan followed in different years (in Rs 000) S/no 1 2 3 4 F/Y 2009/10 2010/11 2011/12 2012/13 Target Amount 1500 38560 501000 1250441 program amount 1000 45505 868398 1596711 % Achievement 67% 118% 173% 127%

X=2511624. Mean (X)= X / N =2511614/4 =627903.5

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Figure.no.7

In the above table 1.8, shown than program amount 2009/10 is less than of target i.e. 67% which cannot be considered an satisfactory result. But after the initial phase F/Y 2010/11, 2011/12 and 2012/13, % of achievement is more than the target i.e.118 %, 173% &125% respectively which can be considered as very satisfactory results.

6.2

Presentation of principal collections in different year:

53 Table.no.1.9 Principal Collection in different Year (Rs.'000') S/NO 1 2 3 4 F/Y 2009/10 2010/11 2011/12 2012/13 Principal Amount 41754 64461 91007 105652

X=302874.

Mean (X) = X / N = 302874 /4= 75718.5.

Analysis of Principal Collection by trend line

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Figure.no.8

In the above table and fig-8, shows that the amount of principal collection by Shine Development bank limited in different years is in increasing trend. It is clear that the program amount of principal collection continuously increases from F/Y 2009/10 to 2012/13 respectively. Table also shows that % of achievement during the year 2009/10, 2010/11, and 2012/13is very good ie. 144%, 109%, and 106% because it meets the target. But on F/Y 2011/12,the program amount of principal collection isn't satisfactory because it hasn't meet the target.

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6.3

Presentation of interest collection of different year:

Table.no.1.10 Interest Collection in Different Years (Rs.'000') S/NO 1 2 3 4 F/Y 2009/10 2010/11 2011/12 2012/13 Interest Amount 12396 16906 20377 23288

X=72967. Mean (X) =

X / N = 72967/4=18241.

Figure.no.9

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In the above table-1.10, shows that the program amount of interest collected in different years of Shine Development bank limited is in increasing trend from F/Y 2009/10 to 2012/13 respectively. Table shows that % of achievement on interest collection is satisfactory on F/Y 2009/10, 2010/11, 2012/13 respectively because it meets the target. But on 2011/12 the collection of interest isn't satisfactory because it hasn't meet the target. From this we can drive conclusion that Shine Development bank limited hasn't satisfactory result in interest collection.

6.4

Presentation of outstanding of different year:

Table.no.1.11 Outstanding amount in different year (Rs.000) S/NO 1 F/Y 2009/10 Amount Outstanding 86,929 % Change ..

57 2 3 4 2010/11 2011/12 2012/13 119,902 144,238 165,404 37.93% 20.29% 14.67%

X = 516473.

Mean (X)= X / N = 516473/4

= 129118.25

Analysis of % Change in Outstanding amount by trend line. Figure.no.10

In the above table 1.11, shows that the amount of outstanding in different years is in increasing trend whereas % change in outstanding amount is in decreasing trend. So, it is quite satisfactory.

58 As per the trend line, in the above fig-10, on F/Y 2009/10% change in outstanding amount is maximum, i.e. 37.93%. After that it decreases at decreasing trend 20.29%, satisfactory result for outstanding amount. & 14.67% respectively. From this we can drive conclusion that Shine Development bank limited has quite

6.5

Presentation of overdue amount in different year:

Table.no.1.12 Overdue Amount in Different Years (Rs.'000) S/NO 1 2 3 F/Y 2009/10 2010/11 2011/12 Overdue Amount 2447 3982 4682 % Change .. 62.73% 17.85%

2012/13

2726

-41.38%

X = 13837

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Mean (X)

X / N = 13837/4= 3459.25

Analysis of Overdue amount in different years by trend line

Figure.no.11 In the above table-1.12, clearly shows that the overdue amount from F/Y 2009/10 to 2011/12 is in increasing trend. After that on F/Y 2012/13 the overdue amount is in decreasing trend. Whereas % change in overdue amount is maximum on F/Y 2010/11 after that it is in

60 decreasing trend. But on F/Y 2012/13 % change in overdue amount is negative i.e. -41.78% and negative amounts regards very good results. From this we can drive conclusion that Shine Development bank limited has quite satisfactory result for outstanding amount.

6.6

Presentation of Profit( income-expense) in different year:

Table.no.1.13 Profit (Income-Expenses) in Different Year (in Rs. 000) S/NO 1 2 3 4 F/Y 2009/10 2010/11 2011/12 2012/13 Amount of Profit 2500 10000 15000 27500 % Change 300% 50% 83.33%

61 X = 55000

Mean (X)

X / N = 55000/4 = 13750.

Analysis of Profit (Income-Expenses) in different Year by trend line

Figure.no.12

62 In the above table -1.13 shows that profit of Shine Development bank limited is in increasing trend from F/Y 2009/10 to 2012/13 respectively. Whereas % change in profit is maximum on F/Y 2010/11 i.e. 300 % after that on F/Y 2011/12 it rapidly decreases to 50 %. But on F/Y 2012/13 it slightly increases to 83.33%.

6.7

Major Findings Of The Study:

From the design of expenditure presented in chapter - 3; Analysis of data, major findings has been noted as specified below: The average figure (i.e. arithmetic mean) found as: Loan flowed (outflow) Principal collection Interest Collection Outstanding Loan Overdue Loan Profit (Income-Expenses) Rs.627,903.5 Rs.75,718.5 Rs.18,241 Rs.129,118.25 Rs.3,459.25 Rs. 13,750

63 Shine Development bank limited has satisfactory result for loan flowed: It was found that progress can be grown in future. Principal collection has also satisfactory result. As comparison to loan investment, interest collection isn't satisfactory result, outstanding amount is quite satisfactory.

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CONCLUSION AND RECOMMENDATION

7.1 Conclusion:
Internship has been incorporated as an integral part of MBA program, which provides student an opportunity to familiarize with organizational culture and develop managerial skills exposing oneself to the real life functions of the business organization. The debit card market had grown exponentially in a short period of time in Nepal, rather than the credit card market because it restricts the number of a privileged section of the population. Nepalese consumers have slowly beginning to realize that carrying cash for the transaction is not always a pleasant experience, so the debit card is best option. Everything has both advantage and disadvantage, in order to safeguard the customer from the risk of improper use; Debit card consumers should be well familiar about the service and its benefits for its optimal appliance on day to day life. Personally, I think the internship period is an exciting phase of a student`s life. It is the grooming period every budding professional need and simply because one is not an actual member of an organization does not mean that one can ignore their duties. It is not just a requirement to pass one`s exams and get a degree, but it is a period where one builds professional contacts, learns the art of listening and observing. It was a great experience being an intern in SRDB. I had a lot of opportunities to learn about different aspects of the banking sector. The banking industry is one of the most important industries in the economy as it enhances the economic activities of the country. Today, it is the banking industry which is balancing the economy of Nepal. Bank is a financial intermediary whose primary function is to transfer the monetary resources from savers to the users. The main function of bank is accepting deposits and advancing loans. The basic services of bank are providing checking accounts, which can be used .

65 Lastly, I want to conclude that Shine Resunga Development bank Ltd is indeed an innovative banking institution. Its service quality is good and it has been able to maintain good relationship with both the customer and its stakeholders. I found staffs of Shine Resunga Development bank Ltd. are friendly, cooperative. And it was great experience to work with such a good institution and people. I hope it will continue to serve its valuable customer with more innovative services and products. 7.2

Key skills and Attitudes Learnt :

7.2.1

Key Skills: Skills are depends upon practice rather then practice makes man perfect. By realizing these statements I have worked so hard to get experienced in the all functional area of the bank. The all staffs of the NBL are very helpful and kind. They Hartley accept me as an interne. They cooperate with me in each and every stage of the learning process. Learning the skills is not an easy task it required the time and patient while learning. The skills that are learned in the training (Internship) program are briefly described below: Technical Skills. Managerial Skills. Behavioral Skills.

7.2.2

Attitude learnt: The attitudes are inner expression that can show in the performance of the employees. The attitudes max occur in the specific situation occurred in the daily performance the analysis of the attitudes is not an easy evaluation of the performance behavior the close supervision of the work in the office. The employee is to crate the virtual situation and analyze the employees behavior in that particular situation. As an interne I have developed the following attitudes in my behavior.

66 Accept mistake. Avoided data fabrication. Accept basic norms and principle. Maintain clean clothes. Maintain Personality. Show positive thinking. Be aware of responsibility. Self respect and self motive. Do right and be positive. Make regular appearance. Maintain confidentiality with outsiders. Responsible for the work done by myself. Receive suggestion and guidelines positively.

7.3

Recommendation :
The Shine Resunga Development Bank Limited is functions in micro financial area it covers all the people in the rural area, urban are and local community associated with the bank. The bank has control aim to pick up the economical and social position of the people. The potentiality of the growth of such type of the bank in the Nepalese community is very high. The experience that I have achieved by working in the SRDB is valuable and by fruitful to me and for my future. The SRDB has provided me the chance to got experience in each and every functional area of the bank. Following are the suggestions made by myself that may help the bank to improve its performance.

67 The bank should have use the control chart to control the bad debts control chart is one of the most effectiveness tools to control the defects (bad debts). The bank must provide the remuneration to those field workers who from then centers and groups. The bank must develop the carrier development plan for the employee to motivate the field staff and the other employee. The bank must formulate the various training program to improve the working performance of the employee. The bank must make the close supervision of all branches which come under the controls of the bank by developing the effective controls mechanism. The banking service of this bank should be the targeted areas not only in the local communities nearly the bank. The govt. must reduce the tax it promote the micro financial institution. The micro financial institution must put pressure on the government to reduce. The bank must remove its organizational weakness and have to maintain its pure organizational goal & mission.

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BIBLOGRAPHY

Agrawal, G.R (1993), Organization and management in Nepal: Kathmandu, M.K Publishers and Distribution. Dangol, Ratnaman (2059), Accounting for financial Analysis and planning, Teleju Prakashan. Kohan, Meri (2005), Financial Institution and Market, New Delhi: Taja Mc Graw It ill. Pant, P.R (2003), Field work Assignment and Internship report writing: Kathmandu Buddha Academic Enterprises Pvt. Ltd. Rana, Surya (2000, Financial management Kathmandu: Ratrice Pustak Bhandar. Shrestha, Manohar K. and Bhandari, Dipak B. (2062), Financial Market and Institution: Kathmandu, Asmita books Publishers and Distributors. Thapa, Kiran (2062), Fundamentals of Investment; Kathmandu: Astnita Publishers and Distributors Timilsina Yogendra (2053) Banking business in Nepal Kathmandu: Rastra Pustak Bhandar. (http://www.mbaknol.com/business-finance/definition-of-development-banks) (WWW.SRDB.COM.np) Kathmandu:

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