AN INTERNSHIP REPORT ON

MAHALAXMI BIKASH BANK LIMITED

TIKAPUR BRANCH

Submitted by:
Ranjana Rawal
FU Reg. No. MG-2020-1-02-0755
Symbol No. 8061147
Tikapur Multiple Campus

TITLE PAGE

Submitted to:
Faculty of Management
Far Western University
Mahendranagar, Kanchanpur

As per partial fulfillment for the requirement of Bachelor of Business

Administration (BBA)

Sixth semester

September, 2023

i
INFORMATION SHEET

Name of the firm: Mahalaxmi Bikas Bank limited

Address: Tikapur-01, Kailali
Phone Number: 091-560917,
Date of joining: 26-March-2023
Name of the firm guide: Sarita Kumari Swar
Designation Of the firm guide: Operation incharge
Student Name: Ranjana Rawal
Campus Name: Tikapur Multiple Campus
Faculty: Management
Level: Undergraduate
Program: BBA
Semester/ Part: Sixth (6th)
Examination Year: 2080 B.S
Contact Number: 9745628249
Student E-mail ID: [email protected]

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 DECLARATION

I, Ranjana Rawal hereby declare that this submission is my own work and
that, to the best of my knowledge and belief, conducted during my internship
at Mahalaxmi Bikas Bank Limited. All information and data presented in
this report are authentic and have been collected and analyzed in accordance
with the objectives and requirements of the internship.

Further I would like to declare that the report prepared by me is only for the
academic purpose. The contents included by me are taken from the
observations, secondary data, and internet sources.

Thank you.

…………………………

Ranjana Rawal

Symbol No.8061147

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 BONAFIDE CERTIFICATE

It is certified that this internship project report entitled “An Internship

Report On Mahalaxmi Bikas Bank Limited” is the Bonafide work of
Ranjana Rawal who carried out the project under my supervision. This
report is forwarded for examination.

…………………….. ………………………………

Umakant Bhandari Bharat Kumar Tiruwa

Assistant Lecturer Subject Committee Head

Tikapur Multiple Campus Faculty of Management

Tikapur, Kailali Tikapur Multiple Campus

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 ACKNOWLEDGEMENT

An internship report “AN INTERNSHIP REPORT ON MAHALAXMI

BIKAS BANK LIMITED” has been as a prerequisite for the Bachelor
Degree in business administration of Farwestern University. This report has
highly helped me to expand my knowledge on banking sectors and other
activities related to banking system of Nepal. I am indebted to my college
Tikapur Multiple Campus for the great opportunity to experience this type of
practical and necessary work which is very beneficial in my future career.I
would like to express my deep gratitude to all those who assisted with their
valuable suggestions and numerous ideas with valuable time while preparing
the project. We would like to extend our gratitude to extend our gratitude to
Mr. Padam kathayat Branch manager of Mahalaxmi Bikas Bank Limited.
We are also grateful to all staffs Mrs. Sarita Swar, Dwarika Adhikari, Dhana
Kathayat, Bishal Maduwa, Lal bahadur kadayat,Dharma Raj Rokaya for
their valuable co- operation, guidance, direction, and continuous support
throughout the internship period.

I would like to express my sincere thanks to HOD of management faculty

Mr. Bharat Kumar Tiruwa and Raju kandel lecture of Tikapur Multiple
Campus ,Tikapur kailali and the entire faculty members who have come
across me from the initial stage of my project work to the complete
execution of my project work.

Ranjana Rawal

Tikapur Multiple Campus

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Symbol No: 8061147

ABBREVIATIONS

ABBS: Any Branch Banking Service

ATM: Automatic Teller Machine

BOD: Board of Director

BBA: Bachelors of Business Administration

CSD: Customer Service Department

FU: Far-western University

IME: International Money Exchange

KYC: Society for worldwide Interbank Financial Transaction

NRB: Nepal Rastra Bank

PBL: Prabhu Bank Limited

SMS: Short Message Service

SWOT: Strengths Weakness Opportunities Threats

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 ABSTRACT

Customers are the important element of any kind of business and it is

important in banking too. Banking service is for the customer so customer
service department plays an important role for day to day operations of bank.
Main objectives of this report, is to understand various aspects of customer
service, MBBL reporting and overall operations of Customer Service
Department of MBBL.

Although this report is the outcome of 3-month experiences in CSD of

MBBL. I have mentioned all the important information as far as possible.
This report is basically based on secondary data also it’s an outcome of
various experience, interaction and analysis during internship periods.

Finally, this report is the short and sweet outcome of continuous effort of 3-
month program which will be beneficial for the understanding mechanism of
planning.

vii
 EXECUTIVE SUMMARY

As per the requirement of Far Western University course under BBA

program this report is designed according to the knowledge gained on field
base experiences. The main aim of the 3-month internship program is to
provide internee an opportunity to implement their theoretical knowledge
practically. Out of the various area or sector for internship, I choose banking
sector, more specifically customer service department of MAHALAXMI
BIKAS BANK LIMITED ,Tikapur ,Branch . This is the world of economy,
competitive service-oriented product. The world is getting smaller and
smaller in terms of globalization due to the development of technology.
Among the various business firms banking plays very important role in an
economy by providing various services like: payment system, deposit, loan
etc. But it is not easy to cope and function in the changing globalized
environment. This is only possible with the help of sound planning.

Finally, this report is the short and sweet outcome of continuous effort of 3-
month program which will be beneficial for the understanding mechanism of
planning.

viii
 TABLE OF CONTENTS

INFORMATION SHEET......................................................................................................................i
TITLE PAGE.......................................................................................................................................i
DECLARATION................................................................................................................................iii
BONAFIDE CERTIFICATE.................................................................................................................iv
ACKNOWLEDGEMENT.....................................................................................................................v
ABBREVIATIONS.............................................................................................................................vi
ABSTRACT.....................................................................................................................................vii
EXECUTIVE SUMMARY.................................................................................................................viii
TABLE OF CONTENTS......................................................................................................................ix
LIST OF TABLES...............................................................................................................................xi
LIST OF FIGURES............................................................................................................................xii
CHAPTER 1......................................................................................................................................1
INTRODUCTION..............................................................................................................................1
1.1 About Mahalaxmi Bikas Bank Limited...................................................................................1
1.2 Organization’s Mission, Vision and Objectives......................................................................1
1.3 Major Markets and Customers.............................................................................................2
1.4 Products and Services.........................................................................................................3

1.4.1. Products of MBBL.........................................................................................................3

1.4.2. Saving Deposit of MBBL................................................................................................4

1.4.3 Loans..............................................................................................................................5

1.4.4. Loan Facilities of MBBL.................................................................................................9

1.4.5 Services of MBBL............................................................................................................9

1.5 Organizational Design and Structure..................................................................................10

1.5.1 Organizational Structure of MBBL( Tikapur Branch....................................................11

1.5.2 Board of Directors........................................................................................................11

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 1.6 Financial Structure..............................................................................................................12
1.7. Ownership Structure..........................................................................................................12

1.7.1 Ownership Structure of MBBL.....................................................................................12

1.7.2: Shareholder Pattern ................................................................................................13

1.8 financial Achievements of MBBL.........................................................................................13
CHAPTER II....................................................................................................................................14
JOB PROFILE AND ACTIVITIES PERFORMED..................................................................................14
2.1 Activities Performed In The Organization...........................................................................14
2.2 Problem Identification........................................................................................................16
2.3 problem solved...................................................................................................................16
2.4 Intern’s Key Observation.....................................................................................................17

2.4.1: Know Your Customers (KYC).......................................................................................17

2.4.2: Information Technology (IT).......................................................................................18

2.4.3: Tools of Current Monetary Policy...............................................................................18

CHAPTER III...................................................................................................................................19
SUMMARY CONCLUSION AND RECOMMENDATION....................................................................19
3.1 SUMMARY..........................................................................................................................19
3.2 CONCLUSION......................................................................................................................20

3.2.1 SWOT Analysis.............................................................................................................20

3.3 RECOMMENDATION...........................................................................................................22
REFERENCE...................................................................................................................................23
QUESTIONAIRE.............................................................................................................................24
APPENDIX.....................................................................................................................................25

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 LIST OF TABLES

TABLES
1: Branches of Mahalaxmi Bikas Bank ltd
2: Products of MBBL
3: Saving deposit of MBBL
4: Loan of MBBL
5: Board of Directors
6: Management Committee
7: Core Capital and its components
8: Supplementary Capital and its component
9: Total Quality Capital
10: NRB policy of MBBL
11: Ownership Structure of MBBL
12: Financial Achievement of MBBL

xi
 LIST OF FIGURES

Fig1: Organizational Structure of MBBL

Fig2: Shareholding composition

xii
 CHAPTER 1
INTRODUCTION

1.1 About Mahalaxmi Bikas Bank Limited

Mahalaxmi Bikas Bank was established by renowned professionals with an accomplished
leadership on B.S. 2052 with the main theme of “Strong Bank Successful Co-
operation”. The bank is licensed by Central bank of Nepal as a “B” class national Level
Bank and it is the first development bank to raise the capital fund by 3.07 billion. The
bank has been offering banking services over 500 thousand customers through wide
range of 103 branches and 49 ATM. The head office of the bank is in Durbarmarg,
kathmandu.

The bank is moving ahead with the motto of “ service with Smile” to each and every
group of customers and their satisfaction is bank’s success. It has been focusing on
prolongation of digital banking to modernize banking services. The bank is always
committed to move forward by implementing prolong long term business practices,
accountable to it’s regulatory bodies and Corporate Governance.

Bank had been awarded with Best Presented Award(BPA)- 2018 from ICAN for
presenting best financial report among development banks. Similarly bank had also been
awarded with SAFA-2018 in bangladesh for being successful presenting best financial
report.

1.2 Organization’s Mission, Vision and Objectives

MISSION

MBBL mission is to offer safety of deposits and render best services to the customers,
build the best place to work with, provide best and perpetual returns to the stockholders
with the strict compliance to the regulations. The mission will be accomplished by
creating four pillars;INNOVATION,IMPROVEMENT, CORPORATE
GEOVERNANCE AND CULTURE.

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VISION

To become “The Most Trusted Bank” to the customers, to the employees, to the
stockholders and to the regulators through the process of continuous innovation and
improvement, strong corporate governance and professional work culture.

OBJECTIVES

The core values or the objectives of the organization mainly are to meet customer
satisfaction through easy and quality service and others are mentioned below;

i) Bringing innovations and customization to meet customer need and to hold

quality of service.
ii) Provide secured future for its internal employees.
iii) Attractive return to its investors.
iv) Lower rates for loan clients.
v) Upholding honesty and sincerity
vi) Strengthen the market shares.
vii) Engaged in various social activities fulfilling corporate social responsibilities.

1.3 Major Markets and Customers

Mahalaxmi Bikas Bank Limited(MBBL)with the main theme of “Strong Bank
Successful Co- operation” expands its services in Tikapur. It has been operating its
business in many places of Nepal since twenty three years. Its major market is viewed to
be every nook and comer of the country so it is extending further more branches in the
various cities in the near future. The various branches recently in operation by the branch
managers are: provides customer-friendly services through it’s the branches are
connected through Anywhere Branch banking System(ABBS), which enables customers
for operational transactions from any branches.

2
Table1.3.1: Number of customer Different a\c in the Bank

1.4 Products and Services

As a pioneer in introducing many innovative and marketing concepts in the domestic
banking sector it represents a milestone in the banking history of Nepal with customer
satisfaction considered as focus objective while doing business.

1.4.1. Products of MBBL

a) Mahalaxmi Baivab Bachat Khata :

Mahalaxmi Baivab Bachat Khata is designed to provide one step solution for your
convenience.

FEATURES:

i) Minimum Balance: Rs. 5000

ii) Interest rate: link
iii) Free DEMAT/ Meroshare Facility for the first year.
iv) Free Mobile Banking Facility for the First year.
v) 50% discount on safe deposit lockers

b) Mahalaxmi Maha Bachat Khata:

i) Mimimum Balance:RS. 500

ii) Free mobile banking for 1st year

iii) Free Debit card for 1styear

3
c) Mahalaxmi Bachat Briddhi Khata

i) Minimum balance:RS 51
ii) Interest Rate:link
iii) Free monile banking and DEMAT facility for the first year.
d) Mahalaxmi Grihalaxmi Bachat

i) Minimum balance: RS 100

ii) Interest rate: Link
iii) Locker facility
iv) ABBS
v) Discounted rates on loan facility

1.4.2. Saving Deposit of MBBL

4
1.4.3 Loans
The need for financing various short term and long term venture of both corporate and
retail clients has been best fulfilled by the bank with its large product portfolio. The
various kinds of loans provided by the bank are:
Mahalaxmi Udhamshil Loan

Mahalaxmi uddhyamshil karja is the loan product that is crafted to encourage youths to
actively involve in nation building through involvement in entrepreneurship.

i) Purposes of loan
ii) Asset financing
iii) NTA financing
iv) Advancing financing
v) Non-funded\ traded facilities
TERMS AND CONDITIONS

Special Offer: Administrative Fee Cash back

Eligibility: Eligibility shall be asper the provision of existing”Karja Tatha Sapat

Sambandhi Niti 2074” of the bank

Loan Amount : Minimum 500000 to maximum 30000000.

Interest rate : 8.94%

Loan tenure : Term Loan: In case of trading\ service sector business: maximum upto 10
years.

In case of Manufacturing unit: Maximum upto 15 years

Loan processing fee: 1 %

Bank Finance : Up To 80% of FMV of collateral security

Types of loan

Hire Purchase Loan :

5
Purchase of office equipment, vehicle, machinery etc is possible through our Hire
Purchase schemes.

b) Vehicle Loan

MBBL finance up to 80% of the cost of the vehicle that is new or will be less than 7 years old at
the time of final maturity of the loan. MBBL need is proof of income and reference\guarantee
from customer employer\individual acceptable to us.

Terms and Conditions

i) Registration of the vehicle will be in the bank’s name.

ii) Bank reserves the right to call for additional Registered Mortgage over land and
building.
iii) First Repayment Date is from the subsequent month of initial drawdown
iv) Repayment is to made in Equal Monthly Installments
Home Loan

MBBL finance up to 60% of the cost of the purchase\construction \renovation of land\

house within municipal boundaries. All MBBL need is proof of customer income and
reference\guarantee from customer employer\individual acceptable to MBBL.

Depending on customer income and customer need, a loan of NPR 500000 to 4000000
can be availed of at a very competitive rate of interest. Repayments are calculated on an
Equal Monthly Installment basis that goes easy on customer monthly budget.

Terms and conditions

i) Property being mortgaged should be located within municipal boundaries of
kathmandu valley and in other residential sector of developing areas within 40
kms from the heart of kathmandu .
ii) As security, the bank shall have the first legal mortage on freehold property
valued by bank’s approved value with extended value not less than the 100% of
financed amount.

6
iii) Bank reserves the right to call for additional registered mortgage over land and

building.

iv) Repayment is to be Equal Monthly Installments which will not exceed 50% of the

borrowers’ net monthly earnings.

v) Property being mortaged should be insured against fire, earthquake, flood, etc.
with a banker’s clause.
Education Loan

MBBL finance upto 60% of the cost of tuition and admission.all MBBL need is
proof of customer employer\individual acceptable to MBBL. Depending on
customer income and customer need, anloan of NPR 150000 to NPR 800000 can
be availed of at a very competitive rate of interest. Repayments are calculated on
an Equal Monthly Installment basis that goes easy on customer monthly budget.
And the tenor is kept flexible to suit customer need: customer can take a
minimum of 12 months or a maximum of 60 months to repay. Customer also have
an option of prepaying customer loan and all you will officers will be pleases to
provide further information.
TERMS AND CONDITIONS

i) Registered Mortgage over land and building within municipal boundaries.

ii) Property being mortgaged should be located within municipal boundaries and
must have a motor able access.
iii) Monthly net saving in case of self-employed individuals must be 5 times of EMI.
iv) Repayment period not to exceed borrower’s balance\tenor of service upto
retirement in case of employees\salaried employees.
v) Repayment is to be made in Equal Installments not to exceed 75% of borrowers’
net income in case salaried\self employem individuals.
vi) A processing fee of 1% will be charged on the Financial Amount.
Travel Loan

This service of MBBL is not available in Tikapur branch. MBBL finance up to 70% of the cost of
ticket and tour expenses. All MBBL need is proof of customer income and\or reference \

7
guarantee from customer employer\individual acceptable to us. Depending on customer income
and customer need, a loan of NPR 50000 to 300000 can be availed of at a very competitive rate
of interest. Repayments are calculated on an Equal Monthly Installment basis that goes easy on
customer monthly budget.

Agriculture Loan

Agriculture loan is targeted to lower and middle income bracket farmers and agriculture
entrepreneurs and firms and companies commercially involved in agriculture sectors to
fulfill their agriculture requirement.

Terms And Conditions

i) Loan limit: 400000 to 2500000.
ii) Agriculture Loan for registered business firms and companies:
iii) NPR 400000 to maximum as per business requirement and upon business analysis
within single obligor limit as per the provision of NRB Directives.
iv) Loan tenure:
a) For agriculture Overdraft loan or short-term loan, Demand loan, Business
Loan: maximum up to 1 year.
b) For Agriculture term loan for individual and business loan 3 to 5 years.

8
1.4.4. Loan Facilities of MBBL

1.4.5 Services of MBBL

“Need centered products are the MBBL product” is basic business philosophy. The bank
has been continuously identifying customer changing needs and preferences, designing
and offering need centered augmented product and services that has met or even
exceeded customer’s expectation. The innovative products of the bank has not only added
extra value and provided high level of satisfaction to the customers but also produced
desire on customer to be associated with the bank’s future innovation. The bank perceives
product differentiation and service excellence as an opportunity to prove superior to
competitors, and has been successful in the past and is the source of inspiration to go
ahead.

i) Cash withdrawal
ii) Mini transaction report
iii) Mini statement prints
iv) Balance enquiry
v) Payment for purchase of goods\services at the merchant locations (through
POS)
vi) Personal identification number(PIN) change

MMBL SERVICES
i) Access Customers accounts, 24\7 service
ii) Current Account Services
iii) Transfer funds within a group

9
 iv) Make payment of Nepal Telecom bills
v) Online shopping
vi) MMBL remit services
vii) MBBL Utility Payment
viii) Loan Services
ix) MBBL QR Merchant
x) MBBL Smart Banking
xi) ATM/ Debit Card
xii) MBBL Online Fixed
xiii) Mobile Banking Services
xiv) Mobile Banking Services

1.5 Organizational Design and Structure

This is Organizational structure of Mahalaxmi bikas bank limited, Tikapur branch.
Branch manager is head of the organization. He supervises the employees and takes
major decision. Credit head deals with the loan customers and do documentation. The
ready file is signed by credit officer and branch manager and send to the head office for
the approval. Operation department includes CSD and Teller department. CSD
department deals with the customers perform task of cheque clearing, remittance etc.
Teller department helps customer to deposit and withdraw cash from bank. Operation
head control and supervise CSD and Teller staffs of the organization. Since it is branch
office, all the staffs work with cooperation helping each other.

10
1.5.1 Organizational Structure of MBBL( Tikapur Branch)

1.5.2 Board of Directors

11
1.6 Financial Structure
Financial Structure refers to the way the firm’s assets are financial with. It refers to the
entire liabilities side of the balance sheet. So financial structure is the amount of total
current liabilities, long term debt, preferred stock, and the common equity used to finance
a firm. Bank’s activities are MBBL lighted in terms of risk and return in light of capital
requirement. Bank has established a culture whereby return on capital needs to be
justified in light of risk involved in each investing and operating activities. In order to
access the adequacy of capital, all major risks like credit, liquidity, etc. are identified,
measured and reported on periodic basis. These are monitored by the bank’s board and
senior management periodically in addition to the monthly review of annual audit of the
bank.

1.7. Ownership Structure

Ownership structure refers to the composition of the owner’s capital in the share capital.
It generally comprises of contribution from the promoter shareholders, general public,
institutional ownership and sometimes contribution from the government as MBBL. The
ownership contribution of the MBBL comprises contribution from the promoter
shareholders and the general public. Promoter shareholders hold 68% of the paid up
capital and the rest 38% is from the general public. The authorized capital of the MBBL
is Rs. 6 billion.

1.7.1 Ownership Structure of MBBL

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1.7.2: Shareholder Pattern

From Promotor

From Public

MBBL Annual Report 2080\81

The figure 1.7.2. shows the shareholding pattern of MBBL that states 68%promotors and
32% public. It means that the promotor have high authority and right the public. MBBL

can say that the promotor have the control over the management, they have right to
declare the B.O.D. and other decision.

1.8 financial Achievements of MBBL

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 CHAPTER II
JOB PROFILE AND ACTIVITIES PERFORMED

2.1 Activities Performed In The Organization

In MBBL worked in two different departments i.e. CSD and remittances. As a services
oriented company the major responsibilities MBBL to give better services to the clients
promptly on their demand. I was mainly given the responsibility of service related issues
under the supervision of the respective officers. In the period of my internship I helped
the organization by sharing the workload of the respective officers. The working
environment was very comfortable to work in with friendly staffs which made the work
easier. The major responsibilities given to me are as follows.
i) Opening an account
ii) Closing an account
iii) Issuance of cheque book and ATM
iv) Others
i) Opening An Account

The first I had to know was about the criteria of opening the account of a new customer.
The responsibility of the customer service starts with opening of new account of the new
customer informing them about the facilities available in the organization. I learnt about
the document required to open a new account. By opening an acoount bank bridge its
customers to avail the facilities provided by the bank.
ii) Remittance Department

Remittance can be defined as the transfer of money from one place to another that may be
from bank or from country to country. The department of remittance deals with the
management of the remitted money. Which is sent by the migrant workers from abroad or
within the country as well. MBBL receives remittance through swift code. MBBL is the
pioneer in the field of retail money transfer business with over 26 years customized
services delivery experience in the field.

14
iii) Clearing Department

In this department customers bring checks of different bank and they fill a voucher to
credit their account by the amount specified in the check and by debiting the amount in
the check of the specified bank. After receiving different checks they are given the
specific OBC number and recorded in the register and later they are recorded in the
computers as well and after all the checks are recorded the final print out is printed, 3
pages of each banks are printed and vouchers are attached with single page of the specific
bank and 2 pages are attached with the checks and the checks are passed to the next step
where they are checked that all the checks and vouchers are in order or not and then again
they are entered in the excel sheet in the next step and final print out is made.

iv) Closing an Account

I also had the responsibility to close the account of the customers who wants to close his\
her account in the bank following the procedure strictly. The procedure for it was:

i) Need of the within application by the account holder

ii) Return of the cheque book and the ATM provided to the customer
iii) Calculate the require charges according to the type of the account opened
iv) Return of the rest amount to the respective customer
v) Finally it is updated in the system and the form is filed in closed account file.
v) Issuance of cheque and ATM

The cheque book and ATM had its own respective register which was requires to be
mentioned along with the signature of the customer in the register. Before printing the
cheque book,requisition should be complete containing title of account type, a\c number,
number of leaves to be printed and signature of the a\c holder.
vi) Others activities and Performed

i) Helping customers to fill up the forms or vouchers

ii) Receiving phone calls
iii) Cheque, statement printing and scanning
iv) Answering to the customers queries

15
 v) Filing documents
vi) Updating KYC
vii) Preparing register of petty cash

2.2 Problem Identification

Problems and organization are non-detachable terms. In performing day to day activities
of the organization, one needs to tackle with various problems and challenges. While
dealing with such problems, appropriate managerial skills need to be used to solve the
problem in the effective and efficient way.

During the internship period, the following problems were identified:

i) problems related to the misunderstanding of the customers

ii) problems related to the change of rules and regulations
iii) Problems related to the mistakes due to the error in the system
iv) Problems related to the non functioning of various service

2.3 problem solved

The internship period I did was short which was not enough for learning everything we
need to. Though it was short but I tried my best to take the optimum advantage of this
period to know the things to its surface in every department. The staffs were not able to
guide sometimes as they used to get busy with their work and at those times I could not
get the answers of my queries that I had. Being the part of bank as intern I cannot open up
everything I know about the bank due to the oath of secrecy and confidentially. I was
given the chance to work in CSD and load department of the bank. I tried to solve the
basic problems of the customers and others as well when other staffs were busy,

Addressing the customer’s queries

i) Giving details of the available services to the consumer's for their
flexibility
ii) Filling up the account opening forms, vouchers or forms for remittance.
iii) Solving problems related to ATM or PIN
iv) Problems related to reconciliation
v) Handling the problems faced by customers.

16
2.4 Intern’s Key Observation
The things that I was able to observe in this bank are as mentioned below:
i) Laborious, helpful and cooperative member
ii) Most of the customers are satisfied with the services provided.
iii) Good return to the shareholders.
iv) On time disbursement of loan.
v) Involved in social activities.
vi) Quick remittance from any remit.

2.4.1: Know Your Customers (KYC)

Nepal Rastriya Bank(NRB) has advised banks to follow a ‘KYC guidelines’, wherein
certain personal information of the account- opening prospect or the customer is
obtained. The objective of obtaining KYC information is to enable the derived from
criminal activity or for financing terrorism. Identification of customers will also help to
control financial frauds, identify money laundering and suspicious activities, and for
scrutiny\ monitoring of large value cash transactions. Money laundering refers to
conversion of money illegally obtained to make it appear as if it was earned from a
legitimate source. Money laundering is being employed by launderers worldwide to
conceal criminal activity associated with it such as drugs\ arms trafficking, human
trafficking, terrorism. All crimes that produce a financial benefit give rise to money
laundering.

Bank have to true identification of its customers. This is also in the interest of customer
is a very critical process with a view to protect the customer interests by preventing from
fraudsters who may use the name, address and forgo signature to undertake illegal
business activities, encashment of stolen drafts, cheques, dividend warrants, etc. This also
helps to safeguard banks from being unsuspectingly used for the transfer of deposit of
funds derived from criminal activity or for financial terrorism. Identification of customers
will also help to control financial frauds, identify money laundering and suspicious
activities and for scrutiny\ monitoring of large value cash transactions.

17
2.4.2: Information Technology (IT)

It has helped the banking industry to deal with the challenges the new economy poses.
More than most other industries, financial institutions rely on gathering, processing,
analsing and providing information in order to meet the needs of customers. Given the
importance of information in banking, it is not surprising that banks were among the
eariest adopters of automated information processing technology. Technology has
opened up new markets, new products, new services and efficient delivery channels for
the banking industry

2.4.3: Tools of Current Monetary Policy

Monetary policy impacts the economy and the price level through various channels. The
process by which monetary policy decisions are transmitted to the real economy is called
the monetary policy transmission mechanism. This chain of cause and effect linking
monetary policy decisions with the price level starts with a change in the official interest
rates set by a central bank exercises major influence on the money market and may steer
the prevailing money market rates. Changes in these rates, in turn, impact on other
interest rates.

18
 CHAPTER III
SUMMARY CONCLUSION AND RECOMMENDATION

3.1 SUMMARY
The internship period was very fruitful which shows the face of real life job experience. I
felt it to be quite effective to enter in the world of banking institutions. The internship
period has taught me how MBBL can implement the theoretical knowledge in our
practical life. I too felt on-the-job training that MBBL faced more profitable and practical
rather than off-the-job training only which is monotonous and forgetful. MBBL learnt
interpersonal skill, communicational skill and technical skill that helped me to build my
knowledge in a broad way. The interpersonal skills helped us to interact with the various
types of customers and their various problems. The negotiation skills also got increased
developing the softness and being more formal while communicating with the people or
clients. The positive attitude also got developed while dealing with different nature of
customers.

The importance of a friendly environment that makes working place even better and
enjoyable giving all the members an opportunity to know each other and share the ideas
they might have despite a hierarchy. Learnt about general activities that are performed in
customer service department like opening of account, closing of account, issuing of
statements to the customer, filing, recording, etc. Able to handle problems and queries
related to walk-in and existing customers. Learnt how to deal with customers, senior staff
members and co-interness MBBL also learnt the technical skills to operate computer
system, ATM machine, photocopy machine, fax machine, scanner, printer, ECC scanner
and many more. There must be a two way effective communication with the customers so
as to satisfy them with the services.

Therefore all these skills are gained through internship which motivated for the better
performance with developed personality. Interns were told timely to manage resources as
much as they can because the more the resource saved the more efficient the organization
becomes. The birth of professional is directly proportioned to saving of resources and
energy which was yet another topic that was learnt during the time duration of internship.
Saving resources mot only means saving of physical properties but also saving of time.
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Communication with the related officer and customers was the major targeted but within
limited time but giving out the best information with positivity. Communication is the
major tool that make target come closer with more benefits during the journey. Not only
communication skills were learnt but the best communication means were used to flow
information within organization be it printing in a network or simple flow of information
within organization using telephones. From opening accounts of customers in different
schemes to providing information about different schemes and analytically determining
which scheme best matches their requirement, various skills were developed along with
feel of social responsibility were developed.

3.2 CONCLUSION
Mahalaxmi Bikas Bank Limited culture is built on a set of core values: client focus, teamwork,
meritocracy, ethic & integrity, pioneering. The company is committed to its clients' best interests
as well as preserving a good relationship by defining realistic objectives.

Since the establishment of Mahalaxmi Bikas Bank Limited, it has aimed to become the leading of
bank by that provides outstanding services to its customers.

The services that MBBL provides have a great market penetration not only because of their
features but also the profit and markup rates that they charge. Also, the products that MBBL
provides cater to sector of the economy.

Furthermore, as the bank is growing, new and more energetic employees are entering which is
sure to invigorate the performance of the bank.

Lastly, MBBL has to benchmark its services to its major competitors in the industry or the market
leader in the industry and provide a continuous mean of improvement in its existing products and
services, while introducing new ones to the industry.

3.2.1 SWOT Analysis

SWOT Analysis provides a comprehensive insight into the company. SWOT Analysis is a
useful technique for understanding company Strenghts and Weaknesses, and for
identifying both the Opportunities open to company and the Threats company face.

STRENGTH
i) innovation

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 ii) Loyal customers
iii) Reduced labor cost
iv) Existing distribution and sales neworks
v) High profitability and revenue

WEAKNESS
i) Future profitability
ii) Competitive market
iii) Changing strategy of stakeholder
iv) No advertisement on media

THREAT
i) Government regulations
ii) Tax changes
iii) Increasing costs
iv) External Business Risks
v) Increase in Micro Finance

OPPORTUNITY
i) New Acquisition
ii) Growing Economy
iii) New Markets
iv) Venture Capital

By analyzing the SWOT Analysis here is my some feedback towards the organization.
i) Increase the advertising media and change the holding board making it noticeable
and attractive.
ii) To extend its branches to the remote areas to mobilize the resources.
iii) Increasing investment towards the new emerging business as per the present
scenario of the state.
iv) Enhancing the ergonomics for the staffs and providing them better working
environment reducing the pressures.

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 i) Increasing effective trainings to the staffs for professional development so than
they can enhance their efficiency towards the customers and their works.
ii) Various programs to be conducted so as to attract more people towards the
banking services and its facilities.

3.3 RECOMMENDATION

i) MBBL should concentrate on better logistics like better maintenance of printer,

good paper quality for cheques, good UPS (Uninterruptible power supplies) etc.
ii) Information should be timely conveyed to customers regarding any change in
regulations.
iii) A SMS should be sent to the mobile number provided by customers that your
account has been opened and the account number is ****.
iv) Bank should provide a good remuneration to an intern for their work which make
them more motivated or energized to work in the banking environment or at least
bank should provide lunch expenses, as they work as much as the staff of the bank
even though they are intern
v) Training needs to be provided to employees regarding use of the system and
computer skills also needs to be brushed upon.
vi) Try to do better in giving services like instant ATM cards, etc. It will be better if
the bank follows new network that will also be used outside the country.
vii) The good communication flow between bottom to top as well as top to bottom
level, staffs etc.
viii) New products are necessary as there is growing competitive market.
ix) More number of computers are needed in the customer service department so that
there will be no rush inside the departments.

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 REFERENCE

Bank and Financial Act 2006.

Harrington, S. E., Niehaus, G. R., & Niehaus, G., Risk Management and Insurance, New

Delhi: Tata McGraw Hill.

Koch, W.T., & MacDonald, S. S., Bank Management, New Delhi: Cengage Learning.

Koirla, P., Essentials of Commercial Bank Management, Kathmandu: Ekta Books.

Websites:

Annual Report of Mahalakxmi Bank

https://www.mahalaxmibank.com/

https://www.mahalaxmibank.com/branches

https://www.facebook.com/mahalaxmibikasbank/

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 QUESTIONAIRE

Q.N.1 Does the bank provide services within the time promised?

Q.N.2 Do the employees gives appropriate solutions to problems?

Q.N.3 Does the bank errors and mistakes correct it's promptly?

Q.N.4 Does the employee give your prompt services?

Q.N.5 Are employee are always search for solution?

Q.N.6 Does the employee always search for solution?

Q.N.7 How is the friendliness and courtesy of employees?

Q.N.8 Do you feel safe in your transaction with Nepal Bank Limited?

Q.N.9 Does the employee of Nepal Bank Limited?

Q.N.10 Does the Nepal Bank Limited Have your best interest at hearts?

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APPENDIX

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