INTERNSHIP REPORT

ON

RASTRIYA BANIJAYA BANK LIMITED

Submitted By

Srijana Bhusal
Symbol no: 17031158
P.U. Registered Number-: 2016-2-03-1592

Submitted to

The Faculty of Management

In partial fulfillment of the requirements for the degree of

Date: 20 march 2020

Satdobato, Lalitpur

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 ACKNOWLEDGEMENT

This project report is prepared in the form as required by the Faculty of Management,

Pokhara University, for the fulfliment of Bachelor of Business Administration (BBA).

I would like to thank Pokhara University for designing the practical based Internship

program giving the opportunity for the students to explore the real life situation of the

banking sector as well as to insight the theoretical learning in the practical field.

This internship opportunity I had with Rastriya Banijay Bank was a great chance for

learning and professional development. Therefore, I consider myself as a lucky

individual as I was provided an opportunity to be a part of it. I am also lucky having

to meet so many professional individuals who guided me throughout my internship

period.

I would like to thank Bank Limited for giving me an opportunity to work as an intern

in the organization.

Finally, I would like to thank Sunil Pokhrel supervisor for guiding me and providing

the motivation throughout the project. Last but not the least I would like to thank all

the individuals who directly & indirectly helped me to prepare this report.

Signature:

Name of Student: Srijana Bhusal

Date: 20 march 2020

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 DECLARATION

This Internship Project Report entitled “Internship On Rastriya Banijay Bank” which
is submitted by me in partial fulfillment of the requirement for the award of BBA
degree of Pokhara University comprises only original work and due
acknowledgements have been made to materials used in the report.

Signature:

Name of Student: SrijanaBhusal

PU Reg .no: 2016-2-03-1592

Symbol no: 17031158

Date: 20 march 2020

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iv
 LIST OF ABBREVIATION

ABBS Any Branch Business Service

BOD Board of Directors

CSD Customer Service Department

ECC Electronic Cheque Clearing

KYC Know your customer

MICR Magnetic Ink Character Recognition

NRP Nepali Rupee

NRB Nepal Rastra Bank

OBC Outward Bill Collection/ Other bank Cheque

PIN Personal Identification Number

RBB RastriyaBanijya Bank

SWIFT Society for Worldwide Interbank Financial

Telecommunication

PU Pokhara University

A/C Account

Ltd. Limited

L/C Letter of credit

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 Table of Contents

Letter of approval………………………………………………………………………………………..…….....

Internship certificate issued by the organization……………………………………………………

Acknowledgement…………………………………………………………………………………….…...ii

Deciaration ...................................................................................................................iii

Executive summary ………………………………………………………………………………………….........iv

Abbreviation..................................................................................................................iv

List of tables and figures ……………………………………………………………………….....................v

table of contents………………………………………………………………………………….....................vii

CHAPTER I...................................................................................................................1

ORGANIZATION PROFILE........................................................................................1

1.1 Organization's background (Rastriya Banijya Bank)………………………………………1

1.2 Organization's mission, vision and objectives………………………………………………..3

1.3 Major markets and customers…………………………………………………………………..4-5

1.4 products and services……………………………………………………………………………….4-22

1.5 organization design and structure………………………………………………………….22-23

1.6 financial structure…………………………………………………………………………………23-26

1.7 organization performance …………………………………………………………………….26-27

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CHAPTERII...............................................................................................................29

JOB PROFILE AND ACTIVITIES PERFORMED……………………………………………………………29

2.1 Activities performed in the organization………………………………………………….....29

2.1.1 customer service department……………………………………………………….………28-31

2.1.2 loan and administration……………………………………………………………………..…32-33

CHAPTERIII………………………………………………………………………………………………………….....34

LESSONS LEARNT AND FEEDBACK………………………………………………………………………….34

3.1 key skills and attitude learnt………………………………………………………………….34-35

3.2 feedback to the organization…………………………………………………………….….35-36

3.3 feedback to the college/ university……………………………………………………….36-37

REFERENCE……………………………………………………………………………………………………………..38
 List of Tables

Table1.1 Financial structure of RBBL balance sheet ……………………………………………23-24

Table 1.2 income statement …………………………………………………………………………………….25

Table1.3 financial ratios of RBBL for 5 year …………………………………………………………….27

List of Figures

Figure 1.1 Organization chart………………………………………………………...22

ORGANIZATION PROFILE
1.1. Organization's background

In the banking history of Nepal, Rastriya Banijya Bank (RBB) is the second pioneer

bank of the country that provide an exceptional and competitive banking services to

the Nepali market. Rastriya Banijya Bank (RBB) limited is fully government owned,

and the largest commercial bank in Nepal. RBB was established on January 23, 1966

(Magh 10, 2022 BS) under the RBB Act 2021 with an initial authorized capital of 1

crore. It was inaugurated by late king His majesty Mahendra BirBikram Shah Dev.

The bank has been running under Bank and Financial Institute Act (BAFIA) and

Company Act (CA) 2063 at present. It was a synonymous of stable and people's bank

in Nepal and one of the pioneer’s bank in the country with the history of nearly a half

century.

The Bank licensed by NRB as a 'A' class commercial Bank of the country, has grown

up as an indispensable component of the Nepalese economy. It started its banking

operation through 7 branches covering 7 districts and 7 zones. With its head office

located at Singhadurbar, Kathmandu, RBB has been a pioneer in Nepalese banking

sector for more than 55 years. With its line ‘Yours Own Bank’, RBB is one of the

market leaders and the largest banking sector of Nepal.

The Bank has currently entered into 51 years of service. RBB provides various

banking services to a wide range of customers they include elite to poor individuals,

institutional customers, and the customers from industry / business communities. RBB

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has been contributing to socio economic development of the country for the last four

and half decades.

The Bank with 2600 hands has expanded its wings in the most part of the country

through multiple distribution outlets of 160 branches, 17 counters, 28 branch less

banking (BLB) and 72 ATMs. Through its widest branch and ABBS network RBB

has been catering modern Banking services to millions of customers. RBB has many

correspondent arrangements with major international banks all over the world that

facilitate trade finance, bank-originated personal funds transfers and interbank funds

transfer via SWIFT. In a bid to promote remittance business, RBB works with CG

money remit. Prabhu Money Transfer, Express Money Services Limited, Instant Cash

Global Money Transfer, EzRemit, Western Union and International Money Express.

The bank has played crucial role for the development of financial sector i.e. bank,

insurance companies through its promoter’s role. As a second commercial bank of the

country, the bank has been contributing in the trade, industry, hydropower and

agricultural sector of the country. Health and Education sector are also benefitted

through its disbursement. The bank is also in the frontline towards fulfilling corporate

social responsibility. The bank has been working as a development partner by acting

as a fund administrator of Poverty Alleviation Fund (PAF). The bank has made

significant contribution in the development of private sector either by loan

disbursement or by active participation in the fairs organized by industrial and

business communities.

1.2. Organization’s Missions, Vision and Objectives

Mission is the organizations reason for its existence. Vision represents where the

organization wants to be in future and objectives are short term operating goals.

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Vision:

To provide innovative banking services to everyone, every time and everywhere for

the economic development of the nation."

Mission:

 To provide easy and innovative banking products and services for our customers by

implementing one stop service concept from our wide network using our modern

technology qualified human resources in competitive environment. We always look

for the benefit of the local communities supporting entrepreneurship, social

responsibility and economic prosperity of the nation."

1.2.1. Major objectives of organization

The main objective of RBB is to provide banking services to the people in general of

the country thereby enhancing their economic interest and facility as well   and

contributing in the socio economic development of the country.

The objectives of the RBB are as follows:-

i. Focus on providing innovative financial services.

ii. Increase in capital base of the bank by meeting the minimum capital

requirement.

iii. Business growth and increase in market share.

iv. Enhance operational efficiency.

v. Sustainable increase in profits.

vi. Focus on empowerment of deprived class.

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vii. To facilitate lending at productive sectors.

1.3. Major markets and customers

The banking Industry has been providing various services and facilities to various

types of customers. It provides services such as accepting deposits, providing loans,

corporate banking, short term financing, medium term financing, long term financing,

corporate lending etc. Likewise, Rastriya Banijya Bank provides banking services to

banks, insurance companies, industrial trading houses, airlines, and hotels in Nepal. It

offers corporate lending products, such as funded facilities, including overdraft loans,

hypothecation loans, structured overdrafts, loans against government bonds, pledge

loans, priority/deprived sector loans, trust receipt loans, term loans, packing credit

loans, margin lending against shares, loans against first class bank guarantee, hire

purchase loans, and consortium lending; and non-funded facilities, such as letter of

credit, bid bond, performance bonds, financial guarantee, and advance payment

guarantee services. Furthermore, it also helps the customers in providing various

services such as mobile banking, e-banking, SMS banking, ABBS etc.

Major customers of RBB

Customers are one of the important players in any businesses whether be it a bank or

any other organizations. They are the one who demand the services and consume the

products created and produced by the firms or the organizations. The bank has deposit

base of with more than 1.3 million depositors. The depositors are individuals,

institutions, private organizations, business houses, non-profit organizations, social

organizations, industries, finance companies, co-operatives, etc. The bank has more

than 500,000 clients who have used the bank’s resources for their business and

development activities. They vary from big business houses to public sector
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enterprise, medium and small-scale industries to farmers and individuals. The major

customers of the bank include:

i. Nepal Oil Corporation (NOC)

ii. Reliance Spinning Mills (RSM)

iii. Nepal Airlines Corporation (NAC)

iv. Daily Development Corporation (DDC)

v. Fulbari Resort and Spa

vi. Himalayan White House International College (HWIC)

vii. Himalayan Bank

viii. Nabil Bank

ix. Standard Charted Bank

x. Chaudhary Group Finance Company

xi. Bishal Bazar Complex

xii. Nepal Army

1.4. Products and Services

Products and services are the tangible and intangible goods that can be taken and

consumed. They are created by the firms and are consumed by the ultimate customers.

RBB’s major commercial banking product and services include

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1.4.1. Deposits

Deposits are the kind of products or services that the bank provides to the customers.

In fact it is the money kept by the customers in the bank with some interest to be

received in near future. The deposit also plays a role of guard by safeguarding the

customers’ money and providing them in time of money as per the rules and

regulations of the bank.

Current Deposit

Every business has banking needs and RBB rightly meets the needs in today's fast-

paced business. The networked branches of RBB give the power to transfer funds in

and across cities (where RastriyaBanijya Bank has its offices/branches) in a flash.

Features:

i. Withdrawal below Minimum Balance

ii. Extended Banking Hours in Kathmandu Valley Branches

iii. Standing Instruction

iv. Cash Management

v. Free Cheque book

Documentations:

In case of limited liability company/ social organization / school

i. Completed account opening form

ii. Board Resolution to open and operate the account

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 iii. Certificate of Registration/ Incorporation

iv. Article of Association

v. Memorandum of Association

vi. Evidence of Identification of account operator

vii. (Citizenship, Passport, Driving License/Voter's Id)

viii. Two recent passport size photograph of account operators

In case of proprietorship/ partnership firm

ix. Completed account opening form

x. Certificate of Registration/ Incorporation

xi. Income Tax Certificate ( PAN Card)

xii. Partnership Deed ( In case of partnership firm)

xiii. Evidence of Identification of account operator

xiv. (Citizenship, Passport, Driving License/Voter's Id)

xv. Two recent passport size photograph of account operators

Saving Deposit

Saving deposit account at RBB is designed with array of features which not only

ensures attractive returns to idle money but also makes personal banking convenient

and efficient. It is basically focused towards encouraging small savings.

The savings accounts provided by the bank are:

i. Normal Saving Account

iii. Karmayogi Saving Account

iv. Mahalaxmi Saving Account

v. Chunamuna Saving Account

vi. RBB Special Saving Account

vii. RBB Sunaulo Saving Account

viii. Teachers BachatKhata

Features:

i. Attractive Interest Rate.

ii. Affordable Balance

iii. Unlimited Withdrawals/Deposits

iv. Extended Banking Hours in Kathmandu Valley Branches

v. Free Cheque book

Documentations:

vi. Completed account opening form

vii. Power of attorney (if the account operator is other than the account

holder/applicant)

viii. Evidence of Identification of account operator

ix. (Citizenship, Passport, Driving License/Voter's Id)

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 x. Two recent passport size photograph of account operators

Fixed deposit

RBB’s fixed deposit account ensures safe custody of customer’s fund along with

attractive interest rates. Fixed deposits are the deposits with tenure ranging from

seven days to over two years. Fixed/Call deposit at RastriyaBanijya Bank allows

diversifying customer’s portfolio to best suit their investment plans. Some of the

products of RBB’s fixed deposit accounts are as follows:

i. Normal fixed deposit

ii. RBB special fixed deposit

iii. RBB corporate fixed deposit

iv. Corporate bulk deposit

v. Diamond fixed deposit

Features

vi. Attractive Interest Rate

vii. Wide Options of Tenure

viii. Convenient Account Opening

ix. Auto Renewal Possible

x. Loan Facility up to 90% of Deposit Amount

Documentations

xi. Completed account opening form

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xii. Power of attorney (if the account operator is other than the account

holder/applicant)

xiii. Evidence of Identification of account operator

xiv. (Citizenship, Passport, Driving License/Voter's Id)

xv. Two recent passport size photograph of account operators

Call deposit

Call deposit is of fixed deposit nature however the tenure is quite less ranging from

seven days to one-month Attractive interest rates with additionally facility of that of

fixed deposit account. Different type of call deposit accounts is:

a. Normal Call Deposit

b. Institutional or Corporate Call Deposit

c. RBB special Call Deposit

1.4.2. Loans and advances

Loans are one of the most important factors for generating revenue. The main source

of income of the bank is the difference between the loan it provides to the customers

and the deposit (loan to the bank) it receives from the customers i.e. spread. So

RastriyaBanijya Bank also provides loan to various customers to help them finance

their short term, medium term as well as long term financial needs.The bank provide a

full range of solutions including short to medium - term commercial lending,

structured finance and transaction banking to meet banking requirements of customer.

Besides traditional lending, it also engineer tailor – made solution to meet constantly

changing needs. RBB provide different loan and these loans are:-
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 i. Business loan

The business loan provides finance to support or expand customer’s existing

business and also to start up their new business.  RBB provides two type of

business loan as:

ii. Funded loans

The bank provides funding and assistance to actually purchase business assets or to

meet business expenses.

i. Overdraft Loan: It is financing to meet company’s working capital

requirements, starting from the purchase of raw materials to the financing of

receivables. This facility can be provided as an overdraft with tenures up to

365 days.

ii. Hypothecation Loan: It is loan against hypothecation of current assets

(stocks and account receivables) to meet short- term cash requirement in the

form of revolving

iii. Hypothecation loans for tenure up to 365 days.

iv. Structured Overdraft Secured against Government Bonds: Financing

current cash flow needs at concessional rates against security of government

bonds.

v. Loan against RBB’s Fixed Deposit: Concessional short term loans

provided against security of fixed deposit.

vi. Term Loan: Financing the capital expenditure of businesses in the form of

term loan for periods of two to seven years. Term loan are generally secured

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 by first charge on fixed assets. Generally, this is a long term loan for acquiring

or purchasing machinery, equipment and land & building.

vii. Margin Lending: Loan provided against collateral of shares and other

securities. This scheme guarantees instant liquidity against securities.

viii. Loan against First Class Bank Guarantee: Loans for varying tenures

against guarantee of first class global banks.

ix. Hire Purchase Loan: Loans for purchase of office equipment, vehicles,

machinery during which title to the asset is held by bank until the full

installment is paid off.

x. Consortium Lending: It is syndicated loans for bigger projects like

hydropower, transmission lines, cable cars etc. Under this service RBB along

with other banks provide large amount of credit.

xi. Pledge Loan: Short term loans for up to six months against pledge of

inventory.

xii. Priority / Deprived Sector Loan: RBB offers loans to priority / deprived

sectors to fulfill its mission of sustainable development. The bank strives to

balance current and long term financial goals with the economic,

environmental and social needs of future generations. The bank believes

priority / deprived sector finance is very powerful tool that can be used

effectively to address poverty, empower the socially marginalized poor and

strengthen the social fabric.

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xiii. Trust Receipt Loan: Import Credit facility is offered to importers to meet

funding requirement from the port of discharge to either a custom point of

warehouse of the importer.

xiv. Packing Credit (Exporter) Loan: Packing credits provide an exporter

with finance purchase / importer of raw materials, processing and packing of

the goods meant for exports. This smoothen the exporter’s cash flow while the

goods are being packed and waiting for shipment. The advance is repaid when

the goods are shipped.

xv. Loan for Infrastructure based Industries: Bank extends both fixed term

loan and Working Capital Loan. Loans are provided for the establishment,

capacity addition, up-gradation of existing facilitates as well as acquisition of

existing facilities. The loan is extended to infrastructure based industries such

as:

i. Hydropower

ii. Hotel

iii. Cablecar

iv. road and more

Non funded facility:

The bank can issue letter of credit or can give a guarantee on behalf of the customer to

the supplier. Some of the non-funded credit products are:

a. Letter of Credit

b. Bid bond
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 c. Performance bond

d. Advance payment guarantee

e. Bank Guarantee.

Retail loan

Retail loan provides finance to fulfill the customer personal needs. Some of the retail

lending products of RBB are:-

i. Housing Loan: RBB understands the need for buying a home. Providing a

home loan is a long-term financial commitment. RBB Home Loan is a simple

way to use the savings smartly, by deciding how much interest to pay.

Structure your EMI (Equated Monthly Investments) over a period of 5 – 15

years as per the repayment capacity. The bank provides the housing loan

facilities for the construction of house for both residential and commercial

purpose and also for the repair, extension, renovation of existing building.

ii. Vehicle Loan: The bank provides the vehicle loan facilities for the purchase

of new vehicle for both commercial and residential purpose. It also provides

finance for purchased of used vehicle for both commercial and residential

purpose. 

iii. Auto Loan: It enables customers to purchase automobiles or brand new car.

RBB provides auto loan for getting a new car for self, for their spouse and

even for the company. The Car loan scheme can be structured over 5 -15 years

at flexible EMI (Equated Monthly Installments).

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 iv. Educational Loan: Education is the most important investment one makes

in life. Higher studies and specialization in certain fields call for additional

financial support from time to time. Whether pursuing a graduate or post-

graduate degree, the RBB Education Loans, can help finance in achieving the

ambitions and goals.

v. Loan against Gold: This product is designed to meet the financial needs

during festivals, marriages, personal contingencies and other social

commitments. Loans against gold / silver just meet that requirement by

offering fast credit for up to one year.

vi. Foreign Employment Loan: It is flexible loans for financing the cost to

take up the dream job abroad.

vii. Agriculture Loan: RBB, with great pleasure, announces the restarting of

agriculture lending to its Clients considering the due importance of developing

agriculture sector as it is a predominant contributors of Nepalese economy

providing employment to 66% of active population and contributing 38% in

GDP. This venture of RBB is crucial in commercialization of agriculture

sector as Government of Nepal has been providing prime focus on raising

agriculture production through commercialization involving the grower

farmers, processors, traders/marketers and consumers in a commercially viable

value chain.

viii. Apartment loan: The bank provided finance for the purchase of the

apartment.

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 ix. Loan against fixed deposit receipt: The bank provides the loan to the

customers against the fixed deposit receipt issued by the bank itself. The loan

amount is provided to the maximum of 95% of face value of the receipt and

additional 2% interest is levied on coupon rate.

x. Loan against the government Bond: The bank provides the loan to the

customers against the bonds, debentures, promissory notes issued by the

government/Nepal Rastra Bank. The loan amount is provided to the maximum

of 100% of face value of the receipt.

xi. Loan against the shares: The bank provides loan against the listed shares

of public companies. The loan amount is subject to maximum of 70% of

market value of shares.

xii. Rastra Sewak Loan: This is the special product of RBBL which has been

tailored to meet the banking needs of employees of the government, partly

owned by government, Nepal police, armed police force, Nepal Army, local

authorities owned wholly or partly by government and corporations. The loan

is advanced up to Rs. 10 lakhs or 70% of 5 years gross salary (whichever is

less).The lending is made at the attractive interest rate of 10% net p.a.

xiii. Personal Loan: The bank provides both revolving (OD) and fixed tenure

long term loan (term loan) to fulfill the various personal needs of the

customers. The nature of personal loan depends upon the requirement of the

customers.

xiv. Teachers Loan: This is the special product of RBBL tailored to meet the

banking needs of permanent teachers working in government schools and

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 universities. The loan is advanced up to Rs. 5 lakhs or 70% of 5 years gross

salary (whichever is less).

1.4.3. Other Services provided by RBB

Remittance

This special feature helps the tourists and especially the Nepalese workers abroad to

transfer funds to Nepal as and when required the receiver can get the transferred

money upon the completion of a simple form requirement without any hassles and

within no time. Remittance service is provided through draft, SWIFT and telegraphic

transfer, mail transfer, fax transfer. Rastriya Banijya Bank (RBB) has operated online

web based remittance system, where by money can be sent to Nepal from Worldwide.

Payments can be collected from more than 156 branch offices of the RBB

Remitters from any part of the world can send money from any bank to an account at

RBB. The originating bank will send the money through one of RBB's correspondent

banks (listed below).

The remitter must provide the following to the sending bank:

i. Beneficiary's name

ii. Beneficiary's bank account number

iii. Beneficiary's branch name or address, and

iv. RBB primarily processes foreign remittance via SWIFT (The Society for

Worldwide Interbank Financial Telecommunication) and Telex no: 2591 NP

through the following correspondent banks.

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Parties involved in remittance

i. Remitter: Person or organization who sends money.

ii. Remitting bank: Remitter’s bank which receives fund from the remitter and

sends fund.

iii. Paying bank: Bank which receives message from remitting banks and pay to

the beneficiary.

iv. Beneficiary: A person who is intended to receive money.

Modes of remittance

There are various instrument used for fund transfer service in RBB. Normal

consideration for choice of one particular instrument against other will be based on

factors such as speed, cost, purpose etc.

The service of remittance are provided via various way:

i. Demand Draft.

ii. RBB remit online

iii. RBB Korea Remit

iv. Mail Transfer

v. Pay Order

vi. SWIFT Transfer

vii. Telex/Fax Transfer

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Apart from RBB Remit, RBB provide online foreign remittance through the following

international services:

CG money remit- Malaysia, UK , USA , Japan , UAE services

Prabhu Money Transfer- Worldwide service

Express Money Services Limited- Worldwide service

Instant Cash Global Money Transfer- Worldwide service

Ez Remit - Worldwide service

Western Union – Worldwide service

International Money Express- Worldwide service

Electronic Banking

Rastriya Banijya Bank facilitate banking with a click of a mouse and where people

can keep track of the account from anywhere in the world. RBB has robust, instant,

secure and reliable banking solution for its clients. Following services can be enjoyed

by customers:

i. General Information: Information about customer

ii. Account Information: Information about selected customers

iii. Account Statement: Account Statement of the specified period

iv. Interest Statement: Statement of calculated and posted interest

v. L / C List : List of L/C’s outstanding

vi. G/T List: Outstanding guarantee list

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vii. TR Loan List: Details of TR

viii. Customer Details: Detail information of customer

ix. Obligor Report: Obligor report of the customer

x. User History: Detail login history

Any branch banking system

RBB has been providing Any Branch Banking Service to the all branches across the

country to help the customers get the amount from anywhere and any place within

Nepal. In this kind of facility, the sender can send the money from any branch within

Nepal and the receiver can receive the money from anywhere within loan.

SMS Banking Service

RBB has started SMS Banking service. Now your bank balance is at your finger tips.

This service is available from all branches. . Basic services provided by SMS banking

are:

i. Current balance inquiry

ii. Last transaction inquiry

RBB ATM / Debit Card Service

RBB is visa associate member bank. Bank has launched Debit card services for all the

branches with in Kathmandu valley and the service has been extending to the other

branches out of Kathmandu valley.

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Functions offered at our ATMs

i. Fast Cash

ii. Cash Withdrawal

iii. Enquiry (Balance Enquiry & Statement Enquiry)

iv. PIN Change

RBB is issuing three category of Visa Debit Card:

i. Visa Domestic: Valid in Nepal and India

ii. Visa International: Valid Worldwide

iii. Visa Travel Quota: Valid worldwide issued against travelers ’cheque

Electronic Cheque Clearing(ECC)

Rastriya Banijya Bank facilitates Electronic Cheque Clearing system in this branch.

The operating rules will help the members to perform their daily cheque clearing

operation using ECC safely and efficiently, the operating rules in this document are

based in the rule book issued by the NRB. Modernizing the banking sector in Nepal is

an essential strategic objective that NRB seeks to realize by implementing an

advanced cheque clearing solution that manages the daily cheque clearing cycle

electronically. ECC is the state-of –the art interbank cheque clearing solution that has

replaced the manual cheque clearing solution in Nepal. It is an image – based, cost –

effective, cheque clearing and settlement solution, where the original paper cheque

are transferred to scanned images in order to be presented electronically through the

secured communication channels from the member in which they are deposited to the

member on which they are drawn resulting in a faster access to funds, lower
21
transportation expenses and increased cheque trust. ECC calculates the multilateral

net clearing position and sends to the settlement system of NRB for settlement of the

net clearing position of the direct member. The Central System of the clearing

mechanism lies at Nepal Clearing House Ltd.

1.5. Organization design and structure

An organizational structure is a formal, guided process for integrating the people,

information and technology of the bank. It is used to match the form of the bank as

closely as possible to the purpose(s) the bank seeks to achieve. It consists of activities

such as task allocation, coordination and supervision which are directed towards the

achievement of bank’s aims. It can also be considered as the viewing glass or

perspective through which individuals see the bank and its environment.

The Board of Directors (BOD) is the head of the Rastriya Banijya Bank. They are

responsible for policy making and guidance to the management. The government

nominates all board members including the chairman. The executive power is vested

in the Chief Executive Officer (CEO). CEO is the highest-ranking corporate officer

or administrator in charge of total management of the bank. An individual appointed

as CEO reports to the BOD. He/she has the responsibility to act as a communicator,

decision maker, leader, manager and executor. He/she advises the Board of Directors,

motivates employees, and drives changes within the bank. As a manager, the CEO

presides over the bank’s day-to-day, month-to-month, and year-to-year operations.

RBB has 19 departments in its head office that are operating under the Deputy

General Manager. There are 5 regional offices across the five development regions of

the country. The Branch Operation Department is responsible for supervising the 160

22
branch networks. The Internal Audit Department monitors the work of the branches

and regional offices.

structure describes the hierarchy and position within an organization. The

organizational structure of RBB is presented below :

Figure 1.1Main Branch Organization Structure

Branch Manager

Assistant Manager

CSD Teller IT Credit Remit Administration

1.6 Financial structure

Financial structure is the way in which a company’s assets are financed, such as short-

term borrowings, long-term debt and owner’s equity. Financial structure differs from

capital structure in that capital structure accounts for share of the bank are held by

government. However, the bank’s financial structure and its components can be

Table No 1.1: Financial Structure of RBBL

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 Balance sheet of RBBL

Particular Amount(RS)

Assets

Cash and hand 27,036,016,075

Due from Nepal Rastra bank 15,772,406,399

Placement with bank and financial _

institutions

Derivative financial _

Other trading assets 4,554,435,600

Loan and advance to customer 144,454,644,531

Investment securities 21,214,307,480

Current tax assets 1,882,578,003

Investment on subsidiaries _

Investment on associates 202,005,888

Investment property 114,812,505

Property and equipment 1,073,142,416

Goodwill 53,851,103

Tax assets 341,100,032

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Other assets 13,712,326,457

Total assets 230,411,626,338

Liabilities

Due to bank and financial institution 7,953,348,884

Due to Nepal Rastra bank 352,044,206

Financial institutions _

Deposits from customer 189,916,989,951

Borrowing 60,490,140

Tax and liabilities _

Provision _

Deferred tax liabilities _

Other liabilities 8,579,732,671

Total liabilities 230,411,626,338

Total equity 23,545,029,852

Retained earning 807,497,781

total liabilities and equity 120,795,154,596

Source: Annual report of RBB

The bank initially recognized a financial assets or a financial liabilities in its statement

of financial position when, and only when, it because contractual of the instrument.

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The bank recognize loans and advances, deposits and debt securities/ liabilities issued

on the date that they are originated which is the date that the bank became the party

to the contractual provisions of the instruments.

Table 1.2 Income statement of RBB

Particular Amount(RS)

Interest income 4,355,075,814

Interest expense 1,501,567,820

Net trading income 16,345,192

Other operative income 24,283,784

Loan and other loss 428,941,709

Operating expenses 2,070,626,886

Profit before tax 2,084,623,591

Net profit /(loss) 2,070,262,886

Source: Annual report of RBB

The income statement of RBB bank is positive of last year. The RBB cover the loan

and other expenses over on this year. The bank is profit amount is 2,070,262,886

1.7 Organization performance

Rastriya Banijya bank is doing well in recent years. The core capital ratio of

rastriyabanijya bank is 9.19% and the total capital adequacy ratio is 10.57%. The core

capital ratio is above the regulatory requirements of Nepal Rastra Bank whereas the

capital adequacy ratio is below the regulatory requirements. i.e 11%. The leverage

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ratio of this bank is good i.e. 4.68% which is also above the regulatory requirements

of 3%. But the retained earnings is not good. Retained earnings is negative by Rs

6255739602.68. At fiscal year of 2072/73 the non-performing loan of second quarter

is NPR 3851800816. It has been increased by NPR 423741423.05 in this quarter as

compared to last year.

Table 1.3: Performance Ratios of RBBL for 5 years

Ratios 2071/72 2072/7 2073/7 2074/75 2075/76(2n

3 4 d
quarter)

Capital adequacy ratio -9.35 3.33 5.60 10.34 10.57

Nonperforming loan 7.27 5.32 3.95 3.74 3.40

Loan loss provision 119.34 132.01 140.88 127.07 146.75

Cost of capital 4.79 3.61 2.95 2.40 1.93

Credit deposit ratio 64.26 60.11

Loan/Domestic deposit 48.71 53.31 55.37 60.40 56.91

and core capital

Base rate 6.460 6.765 6.321 4.890 6.705

Net profit margin 38.29 38.27 39.02 80.78 37.38

At fiscal year 2071/72, the capital adequacy ratio of this bank is negative i.e. (9.35%).

because of negative retained earnings in this fiscal year. After that the capital

adequacy ratio is positive in all years which are in increasing trend. Nepal Rastra

Bank. But in fiscal year 2074/75 the CAR is 10.34% which meets the regulatory

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requirements of 10 %. At second quarter of fiscal year 2075/76 The CAR of this bank

is 10.57%. The non-performing loan is in decreasing trend of this bank.

In fiscal year 2071/72 The NPL is 7.27% and it is decreasing into 3.40% in second

quarter of fiscal year 2072/73.The loan loss provision of this bank in fiscal year is

119.34% which is in decreasing trend in fiscal year 2072/73 and 2073/74. In fiscal

year 2073/74 the loan loss provision is 127.07% and in second quarter of fiscal year it

is 146.75%. The cost of capital is also in decreasing trend. In fiscal year 2071/72 the

cost of capital is 4.79% and it is decreasing in coming years and it reached into 1.93%

in second quarter of fiscal year 2075/76.

The base rate of this bank is similar in all years except in fiscal year 2073/74. In this

year the base rate is 4.89%.The Net profit Margin is somehow similar in all years

except in fiscal years 2073/74. In this year the net profit margin is 80.78%. At fiscal

year 2072/73 of second quarter The Net profit margin is 37.38%.

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 CHAPTER II

JOB PROFILE AND ACTIVITIES PERFORMED

2.1. Activities Performed in the Organization

During my intern in Rastriya Banijya Bank (RBB)at I have worked in different

departments. They are customer service department, Loan and Administration, cash

section, EEC, ATM service. In all the departments I worked carefully and achieved

inevitable knowledge that will be beneficial in my future. With the keen support of

bank staff, I was able to use my theoretical knowledge in actual field and got to know

about the practical aspect of the job and real time job situation. The employees were

highly supportive and responded the queries patiently. It was their kind feedback and

response through which assigned task were completed properly and efficiently.

In every Department, way of dealing with the customer was different. Customer

service department involves more dealing with customer than other department. My

contribution and learning while working at different departments is mentioned below:

2.1.1. Customer Service Department

Customers are heart of any business. As an intern it is very important to know the

customer of the business. After all customer matters a lot for any kind of business be

it large or small. In customer service department, I got to know various aspects of

customer service in typical banking sector. I learned there to address customer’s

complaints and queries and many more tips on handling customers of the bank.

Customer service acts as bridge between the customer and the company that the

customer is buying or getting a service from. Customer expects the customer service

department to be helpful, friendly and efficient. Customer service is a series of

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activities designed to enhance the level of customer satisfaction – that is, the feeling

that a product or service has met the customer expectation. Good customer service

helps in retaining loyal customers and reaping long term profitability to organization.

Activities Performed in the Customer Service Department:

i. Attending the customers

As customer service department is directly related with the interaction with the

customers. Customers come here to solve any queries. Intern welcomed those

customers and greeted them. Customers were made comfortable so that they

can easily open up with their query.

ii. Provide general information

Customer service department deals with providing information to its

customers. Intern provided information about account opening procedure,

remittance, debit card, different deposits etc. and other information as asked

by the customers.

iii. Account opening

Intern was also involved in opening various types of account such as current

account, saving account and fixed account. Firstly, intern needed to know

what type account the customer wants to open. Account may be opened by

individuals, sole proprietorship firm as well as partnership firms. For opening

personal account, intern asked customers to fill the specimen card, provide

original citizenship card as well as photocopy of it, and two pp size photo.

Interest is different for different kinds of account.

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 iv. Account closing

During account closing, intern helped customer to fill account closing form

and submitted to CSD along with unused check books and debit cards. The

account closing form includes account number, account holders name and

reason for closing the account to be filled and submitted to the department.

The documents are then transferred to concerned department and authority and

the account and then account were closed.

v. Issue check on demand

Customers in CSD came along with their demand slip along with their finished

check book and intern issued the new check and entered it in the register.

vi. Distribution of various forms and vouchers

Different kinds of forms were also distributed such as account opening forms,

journal vouchers, debit card form, deposit vouchers as asked by the customers.

vii. Filling of forms and vouchers

Intern also filed different forms and vouchers to their respective registers such

as new account opening vouchers, demand slips etc.

viii. Provide account statement

Customers came to ask for their bank statement and interns were to provide

the statement of the customers as asked by them. The statement was provided

only to concerned account holder.

ix. Checking balance

Intern also checked the balance of the customers. The account balance was not

provided to others except the account holder. After verifying name and photo

in specimen card information about balance amount was given.

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 x. Issuing of debit card

First of all interns are informed for customers to come to take their debit card.

When customers came, debit card was distributed after verifying their

signature.

xi. Record keeping

Record keeping is another important activity performed in customer service

department. Intern recorded different things. Intern made record about account

opening form, account closing form, applications subject to new check, etc.

xii. Verification

Customer service deals with verification of account before opening it. Intern

verified the signature before issuing check on demand, debit cards, bank

statement etc.

2.1.2 Loan and Administration

The major activity performed by a commercial is to make loan to people or

their new customer. Thus the key activity of today’s modern bank is lending.it

is the of the major objectives of RBB to create credit to the productive sector

and help in boosting the notional economy. The lending activity comes under

the credit department of bank. Since bank focus clear monitoring at all time,

credit department is critical to the bank. RBB has full -fledged credit

department which is in fact most important department for every bank. The

consumer credit deals with personal loan like housing loan, auto loan and

education loan etc. whereas the corporate credit deals with working capital

nature of loan.

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As per my duty, I studied or reviewed the bank’s CPG or written loan policy

which was content of our subject bank lending. Since it is a critical department

so all the work is performed by all loan staff. The staff only solved our queries

about the type of loan which RBB provide and required rate of that loan. As an

intern we were allowed to manage the customer file, managing of loan file and

filling the new customer details. By doing filling job I as an intern knew about

the document required in the loan processing and procedure of lending in

RBB. As per my learning I was able to serve the quires of customer about

home loan, education loan etc. customer’s form for the loan were filled. Intern

were given opportunity to practice with Bank staffs in interviewing loan

application to access the character and sincerity of loan purpose. With the help

loan department of RBB CPG report and credit appraisal report was prepared.

In loan department intern can also review the previous payment history and

event of default to know the problem loan situation.

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 CHAPTER III

LESSONS LEARNT AND FEEDBACK

As the internship program provides an opportunity to provide practical knowledge

along with academic program. During the internship period, I got an opportunity to

explore the theoretical knowledge into the real working environment. As an intern I

was assigned in various departments for various tasks in the department like Customer

service, MIS and Loan and Administration. Internship is a golden opportunity for the

students to learn in country like ours where people hardly get an access to the

practical field while studying. The main purpose of the internship program is to help

the students by allowing them to be practically involved in the activities carried out by

the bank on daily basis.

Internship has served as a guide to the management of banks, financial institutions,

related parties, shareholders, general public, etc. It has provided us an opportunity to

gain practical exposure in the real banking world and obtain some experience that acts

as a stepping stone before entering into professional world hence, enhancing our

personal skill and capacity and developing managerial skills and behavior. It has

helped in improving the people skills, human skills and analytical skills. It has also

helped in developing the ability to work under pressure, to know about how to handle

the customers of different nature and how to work in a team.

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 3.1. Key Skills and Attitude Learnt

i. Working in the bank has helped to develop a learning habit to a great extent.

ii. Improved communication skills which helped to communicate effectively.

iii. Developed inter-personal skill which will enhance interaction ability.

iv. During internship, computer software and other devices were handled that

enhance practical skills.

v. Dealing with various types of customers has improved mass facing ability.

vi. Having taken the responsibility has helped and given the time has increased the

time management ability.

vii. Handling the work pressure was one of the important attitudes developed while

working in the bank.

viii. Being a partial employee, punctuality was one of the attitudes developed while

working in the bank.

ix. During the work period in the bank, it has helped to work in team work and

coordinate with other employees.

x. Became more socialize while dealing and interacting with many people.

3.2. Feedback to the Organization

On the basis of the analysis and findings, the following suggestions can be

recommended to overcome the weaknesses and inefficiency and to bring the

satisfactory improvement to the existing situation.

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 i. The employees should be motivated so that they can be more productive and

customer centric which helps in providing reliable and effective services to the

customers.

ii. Customer’s queries and complaints should be handled properly and patiently

as some of them were responded with inadequate information.

iii. The bank should expand area of cash department so that it will be easier for

both customers and staffs as well.

iv. Proper training to all the staff about the entire department should be provided

so that when one staff become absent of one department, work on that

department would be carried out.

v. Staffs are not cooperative and helpful to the customer. They are rude

sometime; it may damage the reputation of the bank and reduce the customer.

vi. Most of the tasks are still done manually and it affects the performance of the

bank. So entire system of the bank should be computerized in order to perform

the work promptly and efficiently.

vii. ATM machines do not function sometimes which creates problem to the

customers who are in immediate need of money. So, withdrawal slip should be

made available in the bank.

viii. Interest rate offered on the deposit products should be raised.

ix. Necessary actions should be taken against the staffs arriving late.

x. Security system must be tightened up and CCTV should be installed in all

department.

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3.3. Feedback to the College/ University

i. Internship program should be made more systematic and efficient so that the

students feel that they have achieved something.

ii. Regular and proper assessment of the intern student should be made to ensure

that the students are serious and regular.

iii. Timely feedback about the intern should be taken from the supervisor to know

about the progress report and their job status.

iv. The college should encourage banks and other institutions to provide more

challenging tasks to the intern so that they can be more challenging and

competitive.

v. Proper communication should be done between college and bank.

vi. The college should organize an interactive program to deal with the queries of

the students regarding the internship program before they enter into any

organization for internship.

vii. The proper guidance and supervision should be provided to the students

before, during and after the completion of the internship program.

viii. The college should make frequent visit to the organization or be in contact

with the supervisor under whom the students are working in the organization

to know about the regularity and performance of the students.

ix. The college should request the concerned organization to create a favorable

learning environment for the students if they are not getting an opportunity to

learn.

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 REFERENCE

Bhandari,D.R. (2004). Banking and insurance, 3rd edition, Aayush Publication

NRB (2014). Baking and Financial Statistics. Nepal RastraBnakBaluwatar:

NRB (2014) “Bnaking And Statistics” Nepal Rastra Bank ,Baluwatar:

Rastariya Banijya Bank .(2012-2013) Annual Report. Kathmandu

RastariyaBanijyaBank .(2013-2014) Annual Report. Kathmandu

RastariyaBanijyaBank .(2014-2015) Annual Report. Kathmandu

Web Consulted:

Retrieved from www.nrb.com.np

Retrieved from www.rbb.com.np

Retrieved from www.google.com

Retrieved fromwww.wikipedia.org

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