AN INTERNSHIP REPORT

ON
CUSTOMER SERVICE DEPARTMENT
OF
NIC ASIA BANK LTD
HAATKHOLA BRANCH
BIRATNAGAR, NEPAL

Submitted By:
AMARNATH MANDAL
P.U. Registration No. 126-2-2-02099-2020
Zenith International College

An internship report submitted to the

Purbanchal University, Faculty of Management
for the degree of
Bachelor of Business Administration

October, 2024
Biratnagar
 ACKNOWLEDGMENT

It has been a great experience working in NIC Asia bank ltd., Haatkhola chowk
branch, Biratnagar. And making a project under entitled as CSD of NIC Asia Bank
ltd. This project is dedicated to all the people who have helped directly or indirectly to
complete this project.

Firstly, I would like to thank Mr. Anurag Shrestha, supervisor of Zenith international
college for providing me an opportunity to use the theoretical knowledge in the
practical field in the course of my internship program of the 7 th semester under
Purbanchal University.

I am heartily thankful to Manager Mr. Bigyan Dahal for providing me the opportunity
to be an internee in NIC Asia bank limited and gain knowledge of the banking area.

I would also like to express my gratitude to the personnel of zenith international

college.

Amarnath Mandal
BBA VII semester
Zenith International College

i
 LIST OF CONTENTS

ACKNOWLEDGMENT.......................................................................................................i
LIST OF CONTENTS..........................................................................................................ii
LIST OF TABLES:..............................................................................................................iv
LIST OF FIGURES:............................................................................................................iv
LIST OF ABBREVIATIONS:.............................................................................................v
EXECUTIVE SUMMARY..................................................................................................vi
CHAPTER: 1
INTRODUCTION.................................................................................................................1
1.1 Overview of the organization:..............................................................................1
1.1.1 Concept and function of commercial Bank:......................................................2
1.1.2 Overview of NIC Asia Bank limited:................................................................3
1.1.3 History of Bank in Nepal:.................................................................................4
1.1.4 List of commercial Banks in Nepal:..................................................................5
1.2 Brief history of NIC Asia Bank limited:...............................................................6
1.3 Nature of Nic asia Bank limited:..........................................................................7
1.3.1 Vision of NIC Asia Bank limited.......................................................................8
1.3.2 Mission of NIC Asia Bank Limited:..................................................................8
1.3.3 Objectives of NIC Asia Bank Limited:..............................................................8
1.4 Business Volume of NIC Asia Bank Limited:......................................................9
1.4.1 Capital Composition:.........................................................................................9
1.4.2 Share Ownership:.............................................................................................10
1.5 Nature and Number of the Employees of NIC Asia Bank Limited:...................11
1.6 Product and services of Nic Asia Bank Limited:………………………………12
1.7 Organization strucrure of Nic Asia Bank Limited:.............................................17
1.8 Objective of study of Nic Asia Bank limited:
………………………………….17
CHAPTER: 2
OBSERVATION.................................................................................................................18
2.1 Introduction:........................................................................................................18
2.1.1 Functions of Customers Service Department:.................................................18
2.2 Details of Assignment Work and Responsibility:...............................................23
2.3 Problem encountered during fulfilling work responsibility:...............................24
2.4 Possible solution to the problem:………………………………………………26
CHAPTER: 3

ii
ANALYSIS AND REVIEW...............................................................................................26
3.1 Critical analysis of the theoretical concept relating to practical experience in the
department.................................................................................................................26
3.1.1 SWOT Analysis of NIC Asia Bank Limited:..................................................26
3.2 knowledge gained from the work assigned:........................................................27
CHAPTER: 4
CONCLUSION AND RECOMMENDATIONS..............................................................30
4.1 contribution of internship in knowledge gain:....................................................30
4.2 General comments and suggestions for nic asia bank limited:...........................30
4.3 Specific suggestion for NIC Asia Bank limited:.................................................31
REFERENCES....................................................................................................................32

iii
LIST OF TABLES:
Table 1: List of commercial Bank in Nepal……………………….. 5-6

Table 2: Capital Composition of NIC Asia bank limited…................ 9

Table 3: Share ownership…………………………………………... 10

Table 4: Staff members of NIC Asia bank Haatkhola Branch……... 12

Table 5: Board of Director of NIC Asia Bank limited……………... 13

Table 6: Detailed of assigned work and responsibility…………….. 25

LIST OF FIGURES:
Figure 1: share ownership of NIC Asia Bank limited……………... 11

Figure 2: Organizational structure of NIC Asia bank limited……... 17

iv
 LIST OF ABBREVIATIONS:

ABBS – Any Branch Banking System

ATM – Automated Teller Machine
B.S – Bikram Sambat
BBA – Bachelor of Business Administration
BOD – Board of Directors
BYC – Bharat Yatra Card
CDM – Cash Deposit Machine
CEO - Chief Executive Officer
CSD – Customer Service Department
EFT – Electronic Fund Transfer
KYC – Know Your Customer
MB - Mobile Banking
NRB – Nepal Rastra Bank
NSBL – Nepal SBI Bank Limited
PMT – Prabhu Money Transfer
PU – Purbanchal University
SMS – Short Message System
SWIFT – Society For Worldwide Inter-Banking Financial Telecommunication
WUMT – Western Union Money Transfer

v
 EXECUTIVE SUMMARY

This internship report is prepared in partial fulfillment for Bachelor of Business

Administration (BBA). The main purpose of this internship is to gain practical
knowledge in a real work setting. It has availed on opportunity to theoretical class
knowledge in real organization setting, i.e., NIC Asia Bank Limited Haatkhola
Branch, Biratnagar.

This report is based on 8-weeks long internship period provides by Bank. During this
period the internee work in different section in the Bank and more time they spend on
Customer Service Department (CSD) of the Bank and this provides observation of
real activities. Concerned superior also guided performing related activities.

During the internship period the internee found Customer Service Department
performing stationary in observing service. During the internship substantial work
was done which include Account Opening, Account Closing, Generating Bank
Balance Certificate and Account Statement, Cheque Book Processing, Mobile
Banking Registration, DEMAT Account Opening, Providing information to customer
as per needs etc. The involvement was for the period of 8 Weeks. Intern was
supervised by Prakriti Mathema Mam, and Branch Manager Bigyan Dahal Sir.

During the internee period of internship program, it was a great experience and
exposure to the real-world scenario. The data under which it contains the categories of
customer, activities performed on customer service department, problems of customer
service department, function of customer service department, knowledge gained and
critical analysis of theoretical concept is done.

There are enough opportunities to further improve the branch CSD function. In this
regard the branch is suggested to provide the regular orientation and training to the
staff for the improvement of efficiency and effectiveness of the performance of
employees.

vi
 CHAPTER: 1
INTRODUCTION

1.1 Overview of the organization:

The banking sector in Nepal encompasses the central Bank i.e. the inclusion of NRB
and the 20 commercial bank in Nepal along with 17 development banks and 57
finance companies. The Nepali financial system is composed of deposit – taking and
contractual saving institutions. The deposit taking financial institution include
commercial Bank development bank, micro-credit development Banks, finance
companies, financial cooperatives, and non-government organization (financial)
performing limited banking activities. Likewise, other contractual saving organization
comprise insurance company’s employee’s provident fund, citizen investment trust,
postal saving offices and the Nepal stock exchange.

BBA is four years of graduate level program offered by Purbanchal University,

faculty of management, whose mission is to establish as a leading university of
academic excellence. Purbanchal University provide both theoretical as well as
practical knowledge to its students. Under its practical knowledge provision we, the
student of BBA, are required to complete an internship for a period of 2 months in
any organization of our choice. To fulfill this daily purpose, an intern worked in NIC
Asia bank Haatkhola branch, Biratnagar from 12th may to 13th July 2024.

This report is prepared on the basis of careful studies and the work done in the bank
as internee refereed by the Purbanchal University. The report focuses on functioning
of bank and the use of information technology in the banking system. The major
function of these branch are deposit, withdrawn, account opening, clearance of
cheque, opening bank draft, remitting and collecting cash on behalf of its client, etc.

The entire major operations are performed using the software named FINACLE,
which is developed by INFOSYS technology ltd, India thus this intern has proved to
be wonderful and enlightening experience. Not only did the intern got the golden
opportunity to gain practical knowledge on the job experience but also got to utilize
conceptual knowledge enhance managerial skills.

1
1.1.1Concept and function of commercial bank:
A commercial bank is a financial institutions that provide range of banking service to
individual, businesses and government entities. The primary function of a commercial
bank revolved around financial intermediation, which involves channeling funds from
savers to borrowers to facilitate economic activities. Here are the key concepts and
functions of a commercial bank (Banking and Insurance 2010).

Commercial banks provide basic banking services and products to the general public,
both individual consumers and small to midsize business. These services include
checking and saving accounts; loans and mortgages basic investment services such as
and other services such as safe deposit boxes.

A. Functions of commercial bank

Primary functions:

 Accepting Deposits’ Commercial banks collect money from individual and

business in the form of deposits.
 Providing loans’ Banks lend money to individuals, businesses and other
institutions.

Secondary functions:

 Credit creation; Banks create credit by making loans, which contributes to the
money supply in the economy.
 Payment services; Facilitating payment and fund transfers through various
channels.
 Discounting of Bills of Exchange; Banks provide short-term finance by
discounting bills of exchange.
 Safe custody; Offering safe deposit boxes and custodial services for valuable
item.

Agency functions:

 Collections and payment of Credit and Debits; Banks act as agents for
collecting and paying on behalf of customers.

2
  Purchase and sale of securities; Banks buy and sell securities on behalf of
customers.
 Foreign exchange services providing services related to foreign exchange,
such as buying and selling currencies.

1.1.2 Overview of NIC ASIA Bank limited:

A bank is institution that deals with money and its substitutes and provide others
money related services. In its role as a financial intermediary, a bank accepts deposits
and makes loans. Its derives a profit from the difference between the costs (including
interest payment) of attracting and servicing deposits and the income it receives
through interest charged to borrowers or earned through securities. Many banks
provide related services such as mutual funds and credit cards.

Nowadays, Bank not confined to accepting deposit and distributing loans only. A
bank may be engaged in different types of functions such as remittance, exchange of
currency, underwriting, bank guarantee, discounting bills, etc. The main goal of
financial institutions is to mobilize the public, private and external financial resources
and transferring them into production areas such as short term loan and long term loan
indifferent commercial business activities with reasonable profit for the shareholders.

Bank is a financial intermediary, which creates the relationship with both the surplus
and deficit unit. To create the relationship with these units, banks offers financials
products and services. When business and consumer must make payment for purchase
of goods and services more often, they use bank provides cheques, credit or debit
cards or electronic accounts connected to a computer network. They refer most
frequently for advices and counseling when they need financial information for
financial planning to the banker. Without bank, it would be quite impossible for
industrialist and entrepreneurs to go direct to public for getting their saving or
investment. Bank is a financial intermediary accepting deposit and generating loans.
IT offers the widest menu of services of any financial institution. Nic Asia bank was
founded as Nepal Industrial and commercial Bank on 21 stJuly 1998. It was renamed
NIC Asia Bank on 30th June 2013 after it merged with bank of Asia. Nepal witnessed
the first merger of two commercial Bank in the history.

3
After the merger, Nic Asia was recognized as ‘’Bank of the year 2013’’ by the
Banker, Financial Times, UK. This is the second time that the bank was recognized
with this prestigious award, the precious occasions being in 2007.

1.1.3 History of Bank in Nepal:

The development of the commercial banks can be traced back to the 19 th century.
During this time, the banks turned their attention away from money changing
Business to many important jobs that come in the way of industrial progresses. The
modern economic system cannot function without the Bank. According to the modern
concept, Banking is a business that not only deals with borrowing leading and
remittance of funds, but it also the important instrument for instance, industrial bank,
commercial Bank, agriculture Bank, joint stock bank, cooperative Bank, and
development Bank with the different purpose.

The government owned as well as private baking ventures. The higher authority on
the pyramid is the Nepal Rastra Bank. This is the central bank of Nepal that decided
and makes various guidelines for the banking sectors of the country. The bank with
the largest network in Nepal is the Nepal Bank ltd. Rastriya Banijya bank closely
follow it.

Currently the banking system of Nepal functions under the overall supervision and
guidelines of Nepal Rastra Bank, which is the central bank in the country. The bank
was established in 1956 B.S under the Nepal Rastra bank ACT 1955. The new Nepal
Rastra bank act was brought out in 2002 B.S by replacing the east while act 1955. The
new act has provided operational autonomy and independence to the bank. Banks can
be classified into seven different categories based on their nature. They are central
bank, development bank, agricultural bank, industrial bank, rural bank, investment
bank and exchange bank. Today the Baking sector is more liberalized modernized and
systematic managed. The central bank, Nepal Rastra Bank has updated the paid up
every commercial bank must have and now for being a commercial bank there is rule
of reaching 8 billion paid up capital till Ashad 2074 B.S. In order to operate all
commercial Banks in corporate in Nepal, uniformity of laws and banking act, Nepal
‘’commercial Bank act 2031’’ was formulated. After that 2052 B.S. NRB gave

4
permission to establish other commercial Bank, finance companies, development
banks, Grameen Bikash bank as well as cooperative institutions.

1.1.4: List of commercial banks in Nepal:

Table 1.1.4: List of commercial banks in Nepal

S. No. Bank Name Head Office Operation

Date

1. Nepal Bank Ltd. Kathmandu 11/15/1937

2. Rastriya Banijya Bank Ltd. Kathmandu 23/01/1966

3. Agriculture Development Ltd. Kathmandu 01/21/1968

Bank

4. Nepal Investment Mega Ltd. Kathmandu 03/09/1986

Bank

5. Standard Chartered Bank Nepal Ltd. 02/28/1987

Kathmandu

6. Himalayan Bank Ltd. Kathmandu 01/18/1993

7. Nepal SBI Bank Ltd. Kathmandu 07/07/1993

8. Nabil Bank Ltd. Kathmandu 07/12/1984

9. Everest Bank Ltd. Kathmandu 10/18/1994

10. Kumari Bank Ltd. (NCC) Kathmandu 04/03/2001

11. Laxmi Sunrise Bank Ltd. Kathmandu 04/03/2002

12. Citizens Bank International Ltd.

Kathmandu 04/20/2007

13. Prime Commercial Bank Ltd. Kathmandu 09/24/2007

14. Siddhartha Bank Ltd. Kathmandu 07/21/2016

5
 15. Sanima Bank Ltd. Kathmandu 02/15/2012

16. Machhapuchhre Bank Ltd. Kathmandu 07/09/2012

17. NIC Asia Bank Ltd. Kathmandu 06/30/2013

18. Global IME Bank Ltd. Kathmandu 04/09/2014

19. NMB Bank Ltd. Kathmandu 10/18/2015

20. Prabhu Bank Ltd. Kathmandu 02/12/2016

(Source: https://www.nrb.com.np, Accessed on December,

2024)
The table 1.1.4 shows at present there are listed 20 ‘A’ class commercial banks in
Nepal as per the Nepal Rastra bank report. Nepal bank limited is the first commercial
bank of Nepal. Rastriya Banijya bank is second commercial bank of Nepal. Nabil
bank is first private sector bank. Preciously known as Nepal Arab Bank, Nabil bank is
the foreign joint venture of Nepal.

1.2 Brief history of NIC ASIA bank limited:

NIC Asia Bank limited was founded as Nepal industrial and commercial bank on 21
July 1998. It was renamed NIC Asia bank on 30 June 2013 after it merged with bank
of Asia. The merger was the first between tow commercial banks in the Nepalese
banking history. After the merger, NIC Asia bank was recognized as ‘’bank of the
year 2013-Nepal by the banker financial times UK. This the second time that the bank
was recognized wit this prestigious award, the previous occasion being in 2007. The
bank has successfully completed its 21 years of operation. The company has currently
the following wholly owned subsidiaries: Nic Asia capital limited and Nic Asia
Laghubittya Sansthat ltd.

The Banks, with its 359 branches, 473 ATMS, 104 extension counters and 81
branchless Banking service is the largest Bank in terms of footprint expansion,
customer base including balance sheet size. Currently bank is providing services to
more than 3 million customers.

6
The bank is headed by Tulsi Ram Agrawal as its chairman and Roshan Kumar
Neupane as chief executive officer (CEO). Roshan Kumar Neupane was appointed as
CEO of the bank on 2 December 2018 with four years tenure. The Bank strongly
believes in meritocracy, transparency, professionalism, team services excellence.
These core values are internalized by all function within the bank and are reflected in
all actions the bar takes during course of its business.

1.3 Nature of NIC ASIA Bank limited:

Nepal Industrial and Commercial (NIC) Bank and Bank of Asia Nepal (BOAN)
completed their merger process and commenced joint operation as NIC Asia Bank.
NIC Asia Bank has its antecedents in NIC Asia bank which was establishedon21stjuly
1998. The bank was rechristened as NIC bank with bank of Asia Nepal on30 thjune
2013. This was a history merger in the annals of Nepalese financial landscape as the
first of the kind merger between two successful commercial Bank in the country.
Today, NIC Asia has established itself as one of the most successful commercial
banks in Nepal. NIC Asia bank limited is an ‘’A’’ class financial bank as per banking
and financial institution act (BAFIA), 2063.

Banks are classified into various categories based on the function they perform in
Nepal. The banks are classified as a Centre bank, financial bank, development bank
and microfinance banks. There are four of financial institutions, which were classified
into A, B, C and D classes. In which commercial bank falls under ‘’A’’ category NIC
Asia as a commercial bank can perform various types of functions as prescribed in
BAFIA, 2036. Some of the major functions performed by NIC Asia Bank are as
follows:-
 Accepting deposits and refunds such deposit.
 Easily locate and navigated to your nearest, ATM or merchant store.
 Keep track of the transactions and securely manage your bank account through
internet even when you are abroad.
 Performs all function of the commercial banks.

1.3.1 Vision of NIC Asia bank limited

7
The vision of NIC Asia Bank is to be the most preferred provider of most integrated
financial services. The vision of NIC Asia Bank are as follows:
 Positioning as a progressive and customer-friendly bank offering financial and
other related services.
 Transportation of different social classes with advanced technology.
 To be committed to excellence in corporate values.

1.3.2 Mission of NIC Asia Bank Limited:

The following mission statement is a guide to meet the vision of the bank.
 NIC Asia bank limited aims to be one of the leading banks of the industry in
terms of profitability and innovation.
 NIC Asia aims to total customer satisfaction by rendering efficient and
diversified financial services through improved.
 Be the place of pride to all its stockholders.
 Build a higher motivated and committed term of staff by nurturing a good
work culture to achieve superior individual performance aiming to enhance
organization effectiveness.
 To develop a relationship with client and customer to achieve the objective.

1.3.3 Objectives of NIC Asia Bank Limited:

The main objectives of NIC Asia is to provide banking services to the people in
general of the country there by enhancing their economic interest and facility as well.
 To facilitate the reliable, prompt and high standard of banking service by
adopting the latest version of banking technology in compliance with the need
and demand of the market.
 To widespread its branch network in different part of the countries covering at
least one branch in one wards.
 Focus on increasing the customer base and market share.
 Maximize the potential/efficiency of bank’s staff.
 Focus on minimizing the risk associated with the business.
 Focus on providing the world-class business solution.

1.4 Business Volume of NIC Asia Bank Limited:

8
NIC Asia Bank Ltd. Is one of the consistently growing bank in Nepal. Within a short
span of time, NIC Asia Bank has been able come up with a wide range of product and
services that best suits its clients. NIC Asia bank has been posting growth in its
portfolio size and profitability consistently since the beginning of the operations.
The union Nepal Industrial and Commercial (NIC) Bank and Bank of Asia Nepal
(BOAN) has made NIC Asia, one of the top five banks of the country. The ownership
of the bank has been divided among four groups:
 A group of companies holding 50% of the capital
 Rastriya Banijya Bank 15% of the capital
 Rastriya Beema Sanstha 15% of the capital
 The remaining 20% being held by the general public (which mean that NIC Asia
is a company listed on the Nepal Stock Exchange)

1.4.1 Capital Composition:

Table 1.4.1: Capital Composition of NIC Asia Bank Ltd.

Authorized capital 11,564,005,400 100%

Issued capital 5,624,732,226 48.64

%

Paid up capital 5,624,732,226 48.64

%

Unpaid Capital 314,540,947 2.72%

(Source: https://www.nicasia.com, Accessed on December

2024)
The Table 1.4.1 shows the authorized capital of NIC Asia Bank. It has Authorized
Capital of Rs. 11.564,005,400 from which it has issued shares of Rs.
5,624,732.226from shareholders and received amount from shareholders. The
remaining amount of Rs. 5,624,732,226 is in the form of capital that is in the market
in form of loan and advances. The remaining 2.72% i.e. Rs. 314,540,947 is unpaid
capital.

9
1.4.2 Share Ownership:
Table 1.4.2: Share ownership

Group Categories No. of shareholders %of Holding

A Nepalese promoter’s ownership 9 50%

B General public 19428 30%

C Merge (BANK OF ASIA) 1 20%

Total 19438 100%

(Source: https://www.nicasia.com, Accessed on December 2024)

The Table 1.4.2 shows the share ownership pattern of NIC Asia Bank. Where A, Band
C is stand for group of Categories i.e. Nepalese promoters’ ownership, General
public, and Joint venture. And their Number of shareholders are 9, 19428, 1,
and19438 respectively and % of Holding is 50%, 30%, 20%, and 100%respectively.
The Table 1.4.2 is shown in the form of Figure 1.4.3:- Sale
60

50

40

nepalese
30
general
merger
20

10

10
 (Source: https://www.nicasia.com, Accessed on December
2024)
Figure 1.4.3: Share Ownership of NIC Asia Bank.
The Figure 1.4.3 shows that local Nepalese promoters hold 50%stake in the bank’s
equity, while 20% of the equity is contributed by joint venture partner bank of Asia
who has also undertaken management responsibility under a technical
service agreement (TSA). The remaining 30% is held by the general public.

1.5 Nature and Number of the Employees of NIC Asia Bank Limited:
The Bank has a concept that ‘’the employees are the internal customer and happy
employees bring happy customer, which leads to higher profit. Principles of ethical
work culture open communication, objective career development, and transparency in
remuneration and pay-performance correlation support HR practices employed within
the bank. As a well-established banking of Nepal, NIC Asia has served its customer
using qualified and well-trained employees. The works to be performed in this bank
are involved the hard and sincere working pattern of following appointed employees
in NIC Asia. The Haatkhola branch is equipped with all the modern facilities,
attentive staffs.

Table 1.5.1: Staff Member of NIC Asia Bank Haatkhola Branch, Biratnagar

Position of staff Members Male Female Total

Branch Manager 1 - 1

Experience Manager - 1 1

Officers 2 - 2

Assistance - 1 1

Trainee assistance - 2 2

Security guard 1 - 1

Intern 1 2 3

Total - - 11

11
(Source: Internal observation carried out on NIC Asia Bank HTK Branch,
Biratnagar) The Table 1.5.1 shows total number of Employee in NIC Asia Bank
Limited is 11.
There is one Branch Manager, one Experience Manager, two Officers, one Assistant,
two Trainee Assistance, one Security Guard, and three Interns.

Table 1.5.2: Board of Directors of NIC Asia Bank Limited

S. No Name Designation

1 Mr. Tulshi Ram Agrawal chairman

2 Mr. Trilok Chand Agrawal director

3 Mr. Ram Chandra Sanghai director

4 Mr. Keshav Prasad Lamsal director

5 Mr. Ganesh Man Shrestha Director

6 Mr. Aditya Kumar Agrawal Director

7 Mrs. Bijaya Swar Director

(Source: https://www.nicasia.com, Accessed on December 2024)

The Table 1.5.2 shows list of Board of Directors of NIC Asia Bank Limited. Mr.
Tulshi Ram Agrawal is Chairman, And Mr. Trilok Chand Agrawal, Mr. Ram Chandra
Sanghai, Mr. Keshav Prasad Lamsal, Mr. Ganesh Man Shrestha, Mr. Aditya Kumar
Agrawal, and Mrs. Bijaya Swar are the Directors of NIC Asia Bank.

1.6 Products and Services of NIC ASIA Bank Limited:

NIC ASIA Bank has never backed in providing the best products and services to meet
the requirement of its customers be that the existing ones or potential customers. NIC

12
Asia is indicating successful to provide these entire products through of the
customer feedback form. Customer’s satisfaction is the paramount driver at NIC Asia.
The products and services offered by NIC Asia Bank Limited are briefly described
below:

a) Deposits:
Deposits are one of the aspects of bank liability that management has been
influencing through deliberate action. NIC Asia Bank Limited offers a wide
range of deposit products that cater the requirement of customers. The various
deposit products are:

b) Current account:
NIC Asia Bank Limited current account saves the hassle of carrying around
cash every month. The account is non-interest bearing and it comes with a
cheque book, which facilities writing a check whenever and wherever it’s
convenient. Mostly Current account is opened for Loan.

c) Saving account:
With NIC Asia Bank’s saving accounts customer’s interest is calculated on
daily balance and credited to their accounts quarterly saving accounts offers
all facilities required for normal transactions like deposit, payments with
additional facility of debit cards, ABBS. There are various kinds of saving
premium like New premium super chamat kari Bachat khata, Jestha Nagarik
Bachat khata, Nari bachat khata, Babu Nani Bachat khata, Badeshi rojgari
Bachat khata, Swarojgar Bachat khata, and Masik Nichhep Bachat Khata.

d) Fixed account:
NIC ASIA Bank’s fixed deposit can be opened can be opened with minimum
balance which is payable on maturity. Penal interest is charged if FD is
withdrawn before maturity. Interest is paid quarterly and tax is deducted at
source from the interest on saving deposit as per the income Tax act, 2058
(2001). ii) Loan and Advances
NIC Asia Bank provides loan and advances to various customers who require
it and fulfill certain criteria. The various loans offered by NIC Asia are

13
 housing loan, vehicle loan, Education loan, and Professional loan, Loan
against mortgage, loan against future lease and rental, Business loan and loan
against shares.

e) Remit:
NIC Asia Remit, a remittance product of NIC ASIA Bank limited is a
premium online, customer-focused Money Transfer services designed to meet
the need of customers to send/receive remittance from various countries as
well as to facilities domestic fund transfer within the country. It is Web based
money transfer system which can be accessed from all the branches of the
bank, Extension counters,

Branchless Banking units, and the bank has appointed more than
10,000activepayout locations covering every prime and rural areas of the
country for the distribution of Nic Asia Remit.

The bank has a dedicated Remittance business unit, which comprises of an

experienced and energetic team of component staff to provide exceptional
customer services during remittance payments. Currently, NIC Asia Remit has
its presence in various countries including the US, UK, Australia, Japan, South
Korea, India, Canada, UAE, and Malaysia.

f) SMS Banking Services:

NIC ASIA Bank limited presents SMS (Short Message services) Banking
services to its valuable customers. In SMS Banking services, customers can
get their account information easily whenever the account debited and
credited.

g) E-Banking:
NIC Asia Bank is just a click away as wherever customers go; customers can
access their account in NIC ASIA Bank Limited on their desktop or laptop.
NICASIA Internet Banking provides wide coverage of services in order to
facilities valuable customers like balance check, check issue, statement print

14
 etc. from their home itself.

h) Any branch banking services (ABBS):

The account holder can deposit and withdraw cash for many of NIC ASIA
branches without any transaction charge. They are not restricted to a particular
branch to operate their account. However, customer must obtain cheque book
and ATM card from particular branch from where they open their account.

i) Debit card:
NIC ASIA debit card is a plastic card with which provides an alternative
payment method to cash when making purchase or cash withdrawal from
ATM centers. NIC ASIA Debit card having maturity of eight years is a key to
ultimate convenience regarding day to day monetary transaction providing
customers the power of real cash in form of card. The cards are available in
two types name printed card and name unprinted card which is also called
instant card provided to customer instantly when customer open their Bank
Account. The name of the account holder is mentioned in the card when the
customer demanded for the name printed card from the bank.

j) Cheque clearing:
NIC Asia Bank provides the cheque clearing service to its customers. There
are two type of cheque clearing services that inward cheque clearing and
outward cheque clearing. Inward cheque clearing refers to the process in
which the cheque of the other banks is received and the outward cheque
clearing means the cheque which is not sent for the collection.

k) Automated Teller Machine (ATM):

NIC Asia Bank is providing ATM service facilities in its corresponding
branches and in various outlays. It has now 464 ATM centers, which run 24
hours. Any Nepali or foreign citizens who have maintained personal savings
and or current account with NIC Asia is eligible to apply for the card.
L) Loans:
Nic asia bank providing loans such as personal loans, home loans, agriculture,
educational loans, business loans, term loans, specialized loans, microfinance

15
 loans.

1.7 Organization Structure of NIC Asia Bank Ltd:

Every organization has certain structure on the basis of the smooth flow of command
and flowing authority. The structure is build in order to make the activities can be
operated with ease and convenience.

Board of Directors

Executive Director

DGM DGM AGM Company AGM

(Marketing) (Credit) (Planning Secretary (Operation)

&Developmen

Legal Retail Corporate

Finance/Tax/Inspection, Reconciliation
A/C, NRB/Budget

IT MKT HRD Treasury Security Guard

FOREX Domestic

(Source: https://www.nicasia.com, Accessed on December 2024)

Figure1.7: Organizational Structure of NIC Asia Bank Limited
The Figure1.7 describes the organizational structure of NIC Asia Bank. Structure is
the reason why we refer to businesses as “organizations.” There’s an organized flow
of leadership and authority in which every individual is supposed to have a clear idea
of what they do, whom they supervise, and whom they ultimately report too.

16
1.8 Objectives of Study of NIC Asia Bank:
The primary goal of the internship program for the intern was to experience the
banking industry of Nepal and to experience how much this industry involved from
the traditional banking practices of loans and deposit various objectives are fulfilled
during internship period such as understanding organization practice and policies,
gaining conceptual and analytical knowledge about banking industry. Being the
student of management, intern should be good at the art of managing and networking
people, building contacts and using contacts as and when needed. The specific
objectives during the internship program with the view point of the subject matter are
mentioned below:
 To know how to deal with customer.
 To understand the working procedures of cash Department.
 To know the basic activities and operations of CSD (Customer service
department).

17
 CHAPTER: 2
OBSERVATION

2.1 Introduction:
A company’s Customers service department handles the concerns of customers. The
department answers Customers questions, attempts to resolve customers’ complaints
and tries to sell new services to them. Most companies have a separate customer
service department; although in some cases are receptionist may function as a
customer service representative. In addition to resolving customers’ complaints and
answering their questions, the customer service department also takes suggestions
from customers who have new ideas that may improve the image of a company and
attract new Customers.

The customer service process must be transparent. IF an organization can practice full
disclosure in an obvious way in their product information and their contracts, they are
on the way to create customer loyalty. IF the customer experiences your organization
as one they were never surprised and never deceived, the organization will create a
competitive edge. Good customer service is all about bringing customers back. And
about sending them away happy-happy enough to pass positive feedback about the
business along to others, who may then try the product or service the bank offer for
themselves and in their turn become repeat customers.

An intern was assigned the works starting from account opening to account closing in
CSD including cheques book issue, ATM ISSUE, FIXED DEPOSIT OPENING,
SCANNING AND many others. The main responsibility intern was assigned to was

18
to make people known about the Demat account and dematerialization and influence
more people to open saving as well as demat account. This report basically focuses on
CSD of Nic Asia Bank.

2.1.1 Functions of Customers Service Department:

The customer service department at NIC Aisa bank especially Biratnagar branch
perform the following activities and provides the following service to its customers.
a) Account opening procedure:
Bank accounts can be opened by both individual and a joint a/c as well as a
corporate firm. Basically a bank account is a unique computer-generated
customer code that allows customers to deposit and withdraw fund. The
account opening procedure is explained as follows:

At first, on the visit of the customer in the bank, the customer is asked to fill
an AOF and signature card which contains the personal details of the
customers
 The CSD staff then certifies all the document, details and signature and
feeds them in the FINACLE along with the specific a/c, introducer’s
name (if any)
 The system then automatically generates the account number, which is
a 16digit code where the first 4 digit represents the branch code.
 CSD staff will create the customer id of a/c holders and then forward
to operation manager to verify. Once the customer id is verified,
operation manager return it to CSD for scanning.
 After form scanning, The CSD staff will prepare the ATM card and
cheque on customer request.

b) Account closing procedure:

An account is closed only upon receiving a written request from the customer
a/c holder. At first, the a/c holder fills up the ‘’ account closing request’’ form
and submits it to CSD.

The customer has to return ATM card and cheque which are unused to the

19
 bank. The bank closed the account and returned all the remaining balance to
the customer. After the completion of filling up the form, it is verified and
signature by operation manager and branch manager. Thus finally customer
account is closed.

c) Cheque Issuance procedure:

Cheque printing and issuance is the very sensitive task. It is the most regular
activity of CSD. Multiple Cheque books are printed daily in CSD. The cheque
printing and issuance procedure is explained as follows:
 For new account holder, bank provides the cheque without any cost.
 If customer has to print the cheque for the second time, then customer
has to fill up the requisition slip that contains the date, number of
required cheque leaves, valid signature.
 After that, CSD staff will issue the cheque and operation manager
verifies it and gives permission to print the cheque.
 The next step after printing of cheque is to enter the record on cheque
registered which is signed by customer and operation manager.

d) ATM card handling procedure:

The ATM card at Nic Asia Bank is debit card under the smart card technology
network. Nic Aisa Bank takes no charge for issuance of ATM card. The issued
atm card is valid for 1 years and customer can withdraw Rs. 100000 in one
day using debit card. They can use this card in various ATM counters all over
the country as well as some other countries. While issuing ATM card the
concerned person come to receive it his/her signature is verified by the CSD
staff.

e) Statement printing procedure:

It is the procedure to print out the bank statement asked by client which gives
detail regarding available balance, amount debited and credited, etc.

f) Balance Enquiry handling:

During internship intern learnt that Nic Aisa Bank takes special caution in Dis
closing the balance in any account, which intern found very impressive.

20
 Customers often come to CSD for balance enquiry but it is only entertained
after establishing the identity of the a/c holder by checking the photo or
signature in the system. Telephonic balance enquiries are not entertained as far
as possible. Only to some highly regular customers whom the staffs know very
well, are given the privilege of balance enquiry via phone.

g) E-banking:
E-banking is a free service that allows customers to avail online banking
transaction wherever and whenever required. To use this service the customer
has to submit a duly signed and filled up ‘’ Application for internet banking ‘’
form to CSD. Then CSD forwards the request to operation manager desk.
Then the very next day, the bank provides the user code and password to the
customer. The customers can then full control over their accounts after
collecting the user code and password. The services available include: Balance
query, check transactions, send and receive messages and bank statement.

h) SMS-banking:
SMS-banking is a system where customers are facilitated to access their
account status and retrieve general information regarding their account and
other banking transaction through their mobile phone. Customers perform the
following task such as balance enquiry , downloading transaction , view
opinion statement , change PIN code , etc the only work that CSD does in case
of SMS-banking is to collect the ‘’application for banking ‘’ form from the
interested account holder, send it to the concerned department .

i) customer query handling;

As a CSD staff during internship, all of intern’s time was spent in handling the
numerous queries of various walk-in customer. Intern gave the information
that they wanted. Many customers were interested to learn about that product,
which intern happily obliged. In addition to that, intern answered queries
about our other products, services, transaction hours, etc.

j) scanning and photocopy:

The activity of making the photocopy of the document such as the citizenship

21
 certificate, driving license, passport, FD receipt, AOF form, demat form, KYC
update, signature change card and other documents as asked by the staffs of
the bank was performed by intern during internship period.

k) Dealing with customer complaints:

Along with the supervision of CSD intern was also involved in dealing with
the grievance of the customer. The major grievances was related to ATM
machine, visa debit card and cheque book.

l) Balance certificate printing and issuance:

Balance certificate is a document issued by a bank stating the amount of
balance/funds maintained by an account holder in its bank; usually a balance
certificate also contains a statement from the bank mentioning that the account
holder has maintained satisfactory level of transactions with the bank, but this
is only mentioned in the case of satisfactory customers.
The balance amount mentioned in the certificate can be either in NPR or in
customer preferred FCY equivalent amount as per the FYC rate on that date.
Customers often visit the bank to issue balance certificate. Usually students
who are going abroad for studies come for it. In order to issue the certificate
the customer has to open an account with the bank. First of all the customers
fills up the ‘’request for balance certificate form. Then the CSD staff issues the
certificate in the requested currency upon obtaining signature in proper
register.

m) Fixed deposit renewal / settlement:

During my internship intern observed that an important task and somewhat
complex and of CSD to open and the renewal or settlement of it. Fixed deposit
is an important account for a bank so FD a/c holders are given special
attention. One need to have saving account in order to open FD account and
bank makes a call to remind that their time is going to expire in certain date
and if they are willing to renew it they have to visit nearby NIC Asia bank
branch. After the FD expires the entire amount gets transferred to their saving
account.

22
 n) KYC update:
KYC is an acronym for ‘’know your customer, a term used for customer
identification process. It involves making reasonable efforts to determine true
identify and beneficial ownership of accounts, source of funds, the nature of
customer’s business, reasonableness of operation in the account in relation to
the customer’s balance etc. which in turn helps the banks to manage their risks
prudently.

The objective of the KYC guideline is to prevent banks being used,

intentionally or unintentionally by criminal element for money laundering.
KYC has two components- identity and address. While identity remains the
same, the address may change and hence the banks are required to periodically
update their records.

o) Making entries in respective register

The CSD officer maintains the register and makes the every entry of all
documents in their respective register. The entry of demand draft, cheque book
stock, FD stock, TT, RTGS, BYC, e-banking, ATM, etc. are done by CSD
officer after the office hour is over.

p) Handling incoming calls:

Being the customer oriented department CSD handles numerous calls and
interns also plays crucial role in handling phone calls and solve the queries of
the customers.

2.2 Details of Assignment Work and Responsibility:

During the internship intern got the opportunity to perform different activities of the
department. The first 2-3 days intern spent gaining information from the staffs of
Haatkhola branch, Biratnagar and then after knowing that, intern spent in the
information counter where intern had to serve the customers with various related
closing and many others forms like demand draft, speed remit form, deposit voucher
of customer etc. intern was placed in the customer service section where following
task were performed.

23
 Table 2.2.1: Detailed of assigned work and responsibility
Name of the department Types of activities performed
Customer service department  Proper counseling to the customer
with politeness.
 Informing customer about
different types of account and
other queries they have about the
operation of a bank.
 Opening all types of account like
saving, fixed, current etc.
 Uploading the scanned photo and
signature into the FINACLE
system as well.
 Timely issuance of cheque book
to customers.
 Maintaining proper records for
cheque register.
 Informing the customers if their
cheques has been returned.
 Provide information about the
interest rate in all accounts.

24
  Distribution of various forms such
as e-banking, SMS banking,
KYC, etc. checking customer’s
transaction and balance on
request.

(Source: https://www.nicasia.com, Accessed on December

2024)
The table 2.2.1 shows the detailed assigned work and responsibility of customer
department service of NIC Asia bank ltd. It content Name of department and their
types of activities performed are opening all types of accounts like saving, fixed,
current, etc., maintaining proper records of cheque register.
2.3 Problem encountered during fulfilling work responsibility:
During 8week internship, intern got the opportunity to understand, identify the
problem faced by the bank. Here are some problems and difficulties that exist in the
CSD of the bank.
 The CSD at Haatkhola branch in understaffed. Too much responsibility lies on
the single person who faces a lot of problems during high traffic hours at the
bank.
 There was lack of adequate follow ups with the customer regarding matters
such as informing them to collect their ATMs, cheque books, etc.
 There is a frequent technical problem in the ATM machines which has led to
multiple ATM complaints.
 The software used FINACLE did not function smoothly as the server slows
down maximum number of time causing in deletion of work.
 Some employees were overload and some were free and cooperation between
employees seems to be very low.
 The rules related to the operation of the banks, the interest rates, the charges
are revised time to cope with the dynamic environment but the customer do
not easily accept the change which creates problem for CDS staff.

2.4 Possible solution to the problems:

After analyzing the problems intern tried to solve some of the issues. In addition to

25
those, here are the possible solution to those problems which could be solved from
intern’s level. The CSD at Haatkhola branch needs to recruit additional staff to handle
the workload of the department. So intern has brought this matter to the attention of
the operation manager who has assured to do something about it soon. Intern also
took the initiative to take frequent ATM complainers to the operation in charge, and
as a result of which, the Haatkhola branch contacted the IT department at the head
office and had them solve this problem.

CHAPTER: 3
ANALYSIS AND REVIEW

3.1 Critical analysis of the theoretical concept relating to practical

experience in the department;
An internship is and extensive program through which and intern can learn the
practical aspect of what is taught between the walls of classroom. IT provides
practical exposure and helps the student to understand corporate social responsibility,
develop corporate attitude and venture entrepreneurship.
Before going to internship, interns have just understand, what is bank? What are the
types of bank? In 6 Semester they have learned about banking and insurance subject.
They do not learn properly how banking activities can be done in that subject. But by
going to the internship, they come to know many things about bank. How banking
activities can be done, how many types of account are there, how to handle the
customer in different situations. Different things can be learned there which cannot be
learn in theoretical subject. It helps them know practically about the bank and the
environment of a bank.
The theoretical knowledge of a person after internship programmed broadens as intern

26
had gain various lectures and training regarding banks and its departments, he
working condition is similar but while gaining theoretical concept one never used to
know how the decision are taken how the works are done, what is the process of
doing work.

3.1.1 SWOT Analysis of NIC Asia Bank Limited:

A SWOT analysis of a bank formally evaluates the financial institution’s strength,
weakness, opportunities and threats, this analysis identifies these four main elements
to help upper management better leverage its strength to take advantage of future
business operation while better understanding its operational weakness to combat
threats to potential growth.

Strength:
Organizational strength are usually derived from its financial, human and other
resources that enable and organization to conceive and implement its strengths.
Weakness:
The weakness of banks SWOT analysis should list areas where the bank is falling
short of reaching its goal.

Opportunities:
The opportunities section in banks SWOT analysis should list areas where the bank
has the room for growth and take advantage of opportunities in the market place.

Threats:
This threat sector in bank’s SWOT analysis should the area where the bank has the
potential to decline or to be harmed by other factor in the market place.

3.2 knowledge gained from the work assigned:

The most important knowledge that the intern has gained during the internship period
is how to perform various task sin Nepal organization environment, which is the basic
lesson for the carrier development. Besides this, the intern could also learn the
working of the general banking transaction as we all know that there is huge
difference between theoretical and practical knowledge, the intern got a chance to

27
know many things about bank and its periphery.

During internship period, the intern felt the importance of the time management and
need of goo communication skills. Since the customers are the main drivers of any
financial institution, they should be pleased by offering the quality services which
basically depends on the quick services and the pleasing personality of the staffs
because most the services provided by the different commercial banks are same in
nature and customer have different choice to make in the market. Besides the above
mentioned details, few things are noted below which makes an intern full of
knowledge and practical experience:
 How to deals with different customers, how to open account, update the
information on the system, to check the balance of the customers, issuing the
cheque, attending the phone calls and follow up the customer.
 Using office equipment like fax, cheque writer, printer, scanner, etc.
 Gained the knowledge regarding day to day operation of bank.
 Importance of time management, good communication and punctuality was
realized.
 Gained knowledge regarding the banking practices, rules, regulation and
function of the bank in Nepal.
 Finally gained the knowledge regarding a very positive concept that internship
in banks boosts up the future prospects of an intern in the banking sectors.

28
 CHAPTER: 4
CONCLUSION AND RECOMMENDATIONS

4.1 contribution of internship in knowledge gain:

Form the above analysis, it seemed that Nic Asia Bank is one of the hardest working
commercial bank that is dedicated in serving their valued customers with excellence.
Internship has broadened intern’s knowledge, vision, ability, management skill and
confidence to perform in real working environment. It was a great chance to gain
practical knowledge of banking sector for intern. The practical cases are rather
different from that they study in theory further intern has also become versed to get
socialize with diversified people, to deal with senior staffs, and to deal with the intern
colleges so as to make the working environment cheerful, pleasant and friendlier.
Besides this, the supervisors were extremely helpful in guiding on their internship
program.

It was the great experience working as an intern in Nic Asia Bank. The operational

29
environment was benevolent there was good communication, healthy competition and
healthy relationship in between the personnel of Nic Asia Bank. Each and every staff
of Nic Asia Bank were totally professional but still there was a family environment
making overall internal working environment delightful to work with. Working at Nic
Asia Bank as an intern was a great opportunity to develop conceptual and analytical
knowledge about banking sectors in Nepal. Thus the knowledge and experience
endowed with this study will surely be constructive towards that payment of intern’s
career and professional life.

During internship what intern analyzed was that the bank is food in providing a good
customer service. Customers always seek quality service at their convenience.
Customers have preferred Nic Asia Bank mainly due to its brand image, branch
facilities and services quality. They accept this bank to rise even more to become
leading bank in service quality. Mostly the customers of Nic Asia Bank are satisfied
with what they are receiving but there are also some issues regarding changing
interest rate on deposits and also the factors or room for improvement for the bank in
order to excel even more and be a top banking industry in years to years Improvement
have to be made from time to time in order to sustain the satisfaction level of
customers and push the bank to a continuous growing path.

4.2 General comments and suggestions for Nic Asia Bank limited:
The internship really provided that intern with the great deal of knowledge which can
prove fruitful for future prospects. The experience that the intern gained at the bank
by working in real field was instrumented. The objective and outcome of the field was
more than it was expected.

During the internship period intern learn about the banking operation and
development of skills required for different department. Additionally, the intern also
learns about the corporate culture, and values within organization. The overall
experience was very fruitful and will be very useful in future career.

The procedure of debit and credit were well known to the intern through the working
experience in the respective department. Besides gathering working experience in

30
these section, the intern also got opportunity to get knowledge about the working
procedure of other sections.
After the 8 weeks of intern and observed at the branch of Nic Asia Bank limited
located at Haatkhola, I have following comments to the banks.
 The machines like photocopy and printer are not supported for effective
works.
 The bank should increase the number of staffs at CSD, as sometimes, it is
unable to handle a large mass of customers.
 Related to the ATM machines. This should be considered seriously enough as
it might have a negative impact on the goodwill of the branch as well as of the
bank.
 Bank should give its customers the notification regarding the changes in
interest rates of the deposits and loan rates to the customers in their cell
phones through the services similar SMS banking.
 It is suggestion to increase the number of branch and ATM to access the
services to customers. Bank has provided many facilities to the customers.
Like free ATM cards e-banking, but only this is not enough. So it is
recommended for the bank to ensure smooth flow of service without any
complaints from the customers.

4.3 Specific suggestion for NIC Asia Bank limited:

 Maintain an agile organization structure to adapt to market changes quickly.
 Socialization is the main factors for working happily in any organization
means adapting the work environment.
 Sincerity, punctuality, and confidentiality are important factors while working
under pressure. Implement environment friendly practices and promote
sustainability.
 Consider offering green financial products and supporting eco-friendly
initiatives.

31
 REFERENCES
Agrawal, Govind Ram (2015) ,Principal of management in Nepal, Kathmandu MK,
publisher
Bhandari D.R (2003), banking and insurance in Nepal, Kathmandu, Aayush
publication
Thapa kiran and B.Parajuli (2013), Financial and institution and
Market,kathmandu, Januka publication
Thomas L Wheelen and J.david Hunger, Strategic Management and Business of
policy,pearson publication
Websites

<https://www.nicasia.com.np.
<https://www.commercialbank.com,
<https://www.investopedia.com
<https://www.nepalstock.com

32
33