DEPOSIT MANAGEMENT

OF
CIVIL BANK LIMITED

AN INTERNSHIP REPORT

Submitted To:
Office of Dean
Faculty of Business and Accountancy
Lincoln University College, Malaysia

Submitted By:
Suprasha Bajracharya
LC No. LC00015000857
Lincoln International College of Management & IT
Dhobidhara, Kathmandu
Nepal

In the partial fulfillment of the requirement for the degree of

Masters of Business Administration (MBA)

Kathmandu, Nepal
June, 2021
CERTIFICATE FROM INDUSTRY

ii
APPROVAL LETTER

iii
 DECLARATION

I hereby declare that the internship report entitled “Deposit Management of Civil Bank
Limited” submitted to Lincoln International College, Faculty of Management, Lincoln
University in partial fulfillment of the requirements for the degree of Masters in Business
Administration (MBA), is an original piece of work done under the supervision of Mr.
Satyendra Upreti, coordinator of Lincoln International College This is my original work
and I have not submitted it earlier elsewhere.

……………………
Suprasha Bajracharya
LC No. LC00015000857

iv
 ACKNOWLEDGEMENTS

This Internship report is the partial fulfillment of the requirement of MBA. The main target
of this report is to be acquainted with the banking scenario of Nepal with reference to Civil
Bank Limited. The internship has been a wonderful and knowledgeable experience. Many
people have devoted their precious time and effort in the course of preparing this report. I
would like to take this opportunity to acknowledge all of them who helped me directly or
indirectly.

Firstly, I would like to express my profound gratitude and deep regards to Mr. Sabindra
Maharjan, Principal of Lincoln International College, who gave me an opportunity to get a
live exposure to the banking industry. I would like to thank my report supervisor, Mr.
Satyendra Upreti, for his exemplary guidance, monitoring, and constant encouragement
throughout the course of this report. Without his support and encouragement, this report
would not have been successful.

I would like to express a deep sense of gratitude to Mr. Bhola Bahadur Bista, Country Head
Deposit and Transaction Banking of Civil Bank Limited, for his valuable information related
to the bank which has helped in completion of this task. I would like to extend my heartfelt
appreciation to Mrs. Ritika Dahal, Relationship Manager of the Department, for her
coordinal support, and guidance throughout my internship.

Finally, I would like to offer my profound gratitude to my family members, my friends,

seniors, and well wishers for their encouragement and support throughout the period of
learning who directly or indirectly helped me in the report writing.

……………………
Suprasha Bajracharya
LC No. LC00015000857

v
 TABLE OF CONTENTS

COVER PAGE ................................................................................................................................ i

CERTIFICATE FROM INDUSTRY.............................................................................................. ii

APPROVAL LETTER ................................................................................................................... iii

DECLARATION ............................................................................................................................ iv

ACKNOWLEDGEMENTS.............................................................................................................. v

TABLE OF CONTENTS................................................................................................................ vi

LIST OF TABLES .......................................................................................................................viii

LIST OF FIGURES ...................................................................................................................... ix

ABBREVIATIONS..........................................................................................................................x

EXECUTIVE SUMMARY ........................................................................................................... xii

CHAPTER ONE: INTRODUCTION

1.1 Background of the Report........................................................................................................... 2

1.2 Objectives of the Internship ........................................................................................................ 2
1.3 Methodology .............................................................................................................................. 3
1.3.1 Organization Selection ......................................................................................................... 4
1.3.2 Placement ............................................................................................................................ 4
1.3.3 Duration in the Organization ................................................................................................ 5
1.3.4 Activities Performed ............................................................................................................ 5
1.4 Limitations of the Internship....................................................................................................... 6

CHAPTER TWO: INTRODUCTION OF BANKING INDUSTRY

2.1 The Context of Banking Industry ................................................................................................ 8

2.1.1 History of Banking Industry ................................................................................................. 8
2.1.2 History of Modern Banking in Nepal .................................................................................... 9
2.1.3 Concept of Commercial Banks ........................................................................................... 11
2.1.4 Functions of Commercial Banks ......................................................................................... 12
2.2 Present Situation of Banking Industry....................................................................................... 13
2.3 Challenges and Opportunities of Banking Industry ................................................................... 16

CHAPTER THREE: INTRODUCTION OF CIVIL BANK LTD

3.1 The Context of Civil Bank Ltd ................................................................................................. 21

3.1.1 Vision, Mission, Goal and Objectives of Civil Bank Ltd ..................................................... 22

vi
 3.1.2 Shareholding Structure of Civil Bank Ltd ........................................................................... 22
3.1.3 Organization Structure of Civil Bank Ltd ........................................................................... 23
3.1.4 Board of Directors .............................................................................................................. 24
3.1.5 Executive Team ................................................................................................................. 24
3.1.6 Department Heads .............................................................................................................. 25
3.1.7 Financial Description of Civil bank Ltd .............................................................................. 25
3.1.8 Key Financial Performance ................................................................................................ 26
3.2 Present Situation of Civil Bank Ltd .......................................................................................... 26
3.2.1 Product and Services of Civil Bank Limited ....................................................................... 27
3.3 Challenges and Opportunity of Civil Bank Ltd ......................................................................... 30

CHAPTER FOUR: ANALYSIS OF ACTIVITIES DONE/ PROBLEM SOLVED

4.1 Introduction of the Deposit and Transaction Department .......................................................... 34

4.1.1 Task-Setting ....................................................................................................................... 34
4.1.2 Functions of the Deposit and Transaction Department ........................................................ 35
4.1.3 Product, Pricing and Distribution Planning ......................................................................... 36
4.1.4 Customer Service ............................................................................................................... 36
4.1.5 Promotions ........................................................................................................................ 37
4.1.6 Deposit Product.................................................................................................................. 37
4.2 Role of Intern and Fitting in the Organization Structure ............................................................ 38
4.3 Experience in the Internship Including Understanding of System, Processes and Rationale ....... 40
4.4 Emergence/Occurrence of Issues, Problem or Challenges and how these Problems were
Solved/Addressed ......................................................................................................................... 41
4.4.1 Problem/ Challenges Encountered ...................................................................................... 41
4.4.2 Solution of the Problems .................................................................................................... 42
4.5 Observed Gaps ......................................................................................................................... 43

CHAPTER FIVE: CONCLUSION/ LESSON LEARNT AND RECOMMENDATIONS

5.1 Inferences Drawn ..................................................................................................................... 46

5.2 Overall Experience, Learning and Knowledge Gained .............................................................. 46
5.3 Recommendations .................................................................................................................... 49

REFERENCE ............................................................................................................................... 51

vii
 LIST OF TABLES

Page No.

Table No. 1.1 : Placement Details 4

Table No. 1.2 : Duration of Internship 5
Table No. 2.1 : Classification of Banks 11
Table No. 2.2 : List of Commercial Banks in Nepal 15
Table No. 3.1 : Board of Directors 24
Table No. 3.2 : Executive Team Member of Civil Bank Limited 24
Table No. 3.3 : Head of Department 25
Table No. 3.4 : Key Financial Indicators of Civil Bank Limited 26
Table No. 3.5 : Unaudited Financial Results of Civil Bank Limited 26
(Quarterly)
Table No. 3.6 : Civil Banks Saving Products and Interest Rates 27
Table No. 3.7 : Civil Bank Fixed Deposit Interest Rate for Ashad, 2078 28

viii
 LIST OF FIGURES

Page No.

Figure No. 3.1 : Shareholding Structure of Civil Bank Limited 22

Figure No. 3.2 : Organization Structure of Civil Bank Limited 23
Figure No. 4.1 : Divisions of DTB Department of Civil Bank Limited 34

ix
 ABBREVIATIONS

ADSL : Asymmetric Digital Subscriber Line

AML : Anti-money Laundering
ATM : Automated Teller Machine
BFI : Bank and Financial Institution
CBL : Civil Bank Limited
CCD : Credit to Core Capital Plus Deposit
CD : Certificates of Deposit
CEO : Chief Executive Officer
CFT : Combating the Financing of Terrorism
CRR : Cash Reserve Ratio
CSR : Corporate Social Responsibility
CTC : Civil Trade Center
DCEO : Deputy Chief Executive Officer
DTB : Deposit and Transaction Banking
EMI : Equated Monthly Installment
FD : Fixed Deposit
FPO : Follow on Public Offer
GDP : Gross Domestic Product
GON : Government of Nepal
HR : Human Resource
INGO : International Non-Governmental Organization
IPO : Initial Public Offering
IPS : Interbank Payment System
IT : Information Technology
KYC : Know Your Customer
LTD : Limited
MBA : Masters in Business Administration
MIS : Management Information Systems
NCHL : Nepal Clearing House Limited
NFO : New Fund Offer
NGO : Non- Governmental Organization

x
NIDC : Nepal Industrial Development Corporation
NPA : Non-Performing Asset
NPL : Non-Performing Loan
NRB : Nepal Rastra Bank
OD : Overdraft
PE : Price-to-Earning
PVT : Private
QR : Quick Response
RM : Relationship Manager
RTGS : Real Time Gross Settlement
SMS : Short Message Service
TB : Transaction Banking
TT : Travelling Ticket

xi
 EXECUTIVE SUMMARY

The Masters in Business Administration (MBA) program of Lincoln International College

affiliated to Lincoln University requires students to undertake an internship in the 3th
semester. The internship report requires students to undergo an extensive internship program
in an organization, which should provide an opportunity to integrate and apply theory with
management practice.

This internship report entitled “Deposit Management of Civil Bank Limited” has been
prepared to fulfill the partial requirement of the program of MBA of Lincoln University.
This report consists of the work experience gained during the 8 weeks of internship at Civil
Bank Limited. It was such a great pleasure to work at Civil Bank Limited. This experience
gave me countless opportunities to gain practical knowledge about banking functions and
utilize conceptual knowledge in specific areas of Deposit Management.

The internship was done at the Deposit and Transaction Banking Department of Civil Bank
Limited, Sundhara Kathmandu. Internship program was supervised by Mr. Satyendra Upreti,
college coordinator and Mrs. Ritika Dahal, Relationship Manager, Civil Bank Limited and
the internship supervisors. The major objective of the internship was work exposure to gain
practical knowledge and experience. The eight weeks internship at Civil Bank Limited
provided opportunities to analyze and solve real life problems in the banking industry. In the
short period, the internee learnt lots of new things and gained experiences that will be
applicable in the career path in the banking sector. The internee received experience and
knowledge, means of interaction, observation, and work experience at Civil Bank Ltd. Here,
the internee got a wonderful opportunity to enhance managerial and interpersonal skills to
tackle real life problems arising in organization and to apply theoretical knowledge in the
practical environment. The internship was very productive and boosted the confidence level
and interpersonal skills of the internee as a whole. Internship also helped in developing
contacts with different personnel of the banking sector and with high value customers.

xii
CHAPTER ONE

Bajracharya, 1
 INTRODUCTION

1.1 Background of the Report

Our economy is very dynamic and thus, it keeps changing every moment. With the change
in economy, the talents, skills, and experience needed to be a part of that growth cycle
change too. The job market is very competitive nowadays, and often that is a tough
learning curve for recent graduates. This is a big reason behind the growth of applied
learning and internship opportunities becoming a key part of the college experience for all
students.

An internship is defined as any official or formal program to provide practical experience

for beginners in an occupation or profession. It is any period of time during which a
beginner acquires experience in an occupation, profession, or pursuit.
(https://www.dictionary.com/). Internship programs are undertaken by students and
graduates who are looking to gain relevant skills and experience in a particular field of
interest to become more competent.

The person who is willing to gain practical experience and goes for an internship in any
organization is called internee. Typically, an internship consists of an exchange of services
for experience between the internee and the organization. The most important element of
internships is that they integrate classroom knowledge and theory with practical application
and skills developed in professional or community settings. They also bring a wealth of
benefits to students, both while completing a degree and when seeking a career path post-
graduation.

Internships can be of various types such as part-time, full time, paid, unpaid, partially paid,
etc based on the need of the organization and the internee. Under paid internship, the
student gets regular pay during his/her internship period in the organization on a daily,
weekly or monthly basis.

1.2 Objectives of the Internship

The major objective of the internship program is to expose oneself to a particular job and a
profession or industry and gain real world practical experience in a particular field.

Bajracharya, 2
The general objectives of this internship are:
 For the partial fulfillment of the requirements for the degree of Masters in Business
Administration (MBA).
 To gain practical insight of the real working conditions and better understanding of
the real life corporate problems/practices.
 To understand the differences between theoretical knowledge and practical
practices.
 To develop and enhance skill requires to solve real life business issues and for an
overall competitive business environment.
 To build and expand personal networking in the corporate sector.

The specific objectives of this internship are as follows:

 To know about various financial products and services provided by the bank.
 To know the functions and activities involved in Deposit Management (Deposit and
Transaction Banking Department) of Civil Bank Ltd.
 To understand how existing deposits are being tracked and retained by the bank.
 To know how prospect clients are identified and approached.
 To identify the different strategies of Civil Bank Limited developed for soliciting
deposits.
 To become familiar with the market practices, rules and regulations related to
deposits.

1.3 Methodology

Methodology refers to the various sequential steps to be adopted in studying a problem

with certain objectives in view. This section focuses and deals with the different methods
used for data collection and analysis. This study is conducted under descriptive design
where the facts and findings are prescribed in a systematic manner. The information
required for the preparation of the report has been collected from following sources:
 Primary Source:
 Observing the working desk of different staffs in the department,
 Direct involvement in various activities of the department.
 Personal interview, informal discussions and consultation with the staffs
involved in different activities of the department.

Bajracharya, 3
  Secondary Source:
 Bank’s website
 Product papers of the bank
 Annual report
 NRB’s circular and directives
 Publications, Journals and books.

1.3.1 Organization Selection

Selection of organization is a very important part of an internship program. The beginning

phase of an internship program starts with a selection of suitable organization by the
internee as per the requirement. The knowledge of real world scenarios is obtained from the
organization. For selecting the organization, curriculum vitae, citizenship and
recommendation letter from college were dropped in the Human Resource Department of
various Banks. As Civil Bank Limited is a young growing commercial bank of Nepal and
the bank was highly recommended by my seniors and relatives, required documents were
dropped at the HR Department of Civil Bank Limited. The bank accepted the request and I
was provided the opportunity to work as an internee and learn in the bank.

1.3.2 Placement

Regarding the placement, I was placed in Deposit and Transaction Banking Department
(Marketing Department) for the period of 8weeks under the supervision of department head
and relationship manager. This placement helped me understand the workflow system to
get more deposits and create a customer base in the field of banking.
Table No.: 1.1 Placement Details
Name of the Organization Civil Bank Limited (CBL)
Address CTC Mall Sundhara, Kathmandu
Working Hour 9.30 am to 5.30 pm
Starting Date 7th February, 2021
Ending Date 2nd April, 2021
Internship Duration 8 weeks
Internship Supervisor Mrs. Ritika Dahal (RM- Deposit)

(Source: Based on activities performed)

Bajracharya, 4
 1.3.3 Duration in the Organization

The duration of internship has been defined as eight weeks by Lincoln University.
Regarding the placement during the internship period, I was placed in Deposit unit of
Deposit and Transaction Banking Department (Marketing Department) under the
supervision of the department head and relationship manager. However, I also got the
opportunity to gain insight about other units of the department like QR registration, QR
dispatch, branding and promotion, filing and documentation and various operational
processes. The encouraging and cohesive environment made the process of learning easier.
The placement during my internship can be shown through the following chart.

Table No.1.2: Duration of Internship

Department Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8

Deposit & Transaction
Banking Department
(Marketing Department)

(Source: Based on activities performed)

1.3.4 Activities Performed

During the internship period, the internee got opportunities to get involved in various
activities of the department. The major activities performed by the internee in the
internship period are listed below:
i. Daily search for deposit bid information from newspapers and websites.
ii. Preparation of daily deposit details.
iii. Identification and reporting daily deposit variance in country level to the
department heads.
iv. Tracking fixed deposit maturity of customers.
v. Informing customers about their fixed deposit maturity and convincing them to
renew their fixed deposit in the bank.
vi. Preparation of offer letters and Memo writing.
vii. Conduct courtesy visits to valued customers.
viii. Study the market trends and communicate it to the supervisor.
ix. Search for new potential customers and conduct meetings with them for
deposits.

Bajracharya, 5
 x. Regularly communicate with branches to get deposit updates of their respective
branches.
xi. Customer handling.
xii. Documentation and Filing, etc.

1.4 Limitations of the Internship

Though the internship was very fruitful to gain meaningful career-related experience in a
real organization, the study involves certain limitations. They are as follows:

 The time period of 8 weeks was not enough for a comprehensive study of the bank.
So, this report only focuses on a particular unit of a department.
 Due to privacy policy of the bank, many internal MIS were not accessible to the
internee and thus unavailability of adequate information created a problem.
 Internees were not allowed to work in the different departments at the same
time.etc.
 The prime source of information for report preparation was the informal
questioning with the head employees of the bank and the observation of the
activities as well as the active involvement in the activities allowed to the internees.
Thus, the report covers only limited aspects of the total system.
 Due to the busy work schedule of the bank’s staff, it was difficult for them to share
the overall knowledge they have.
 The report is based on individual understanding during the internship program
which may differ from person to person.

Bajracharya, 6
CHAPTER TWO

Bajracharya, 7
 INTRODUCTION OF BANKING INDUSTRY

2.1 The Context of Banking Industry

Banks as financial intermediaries are the parties to a transfer of funds from the ultimate
saver to the ultimate user of funds. Banks are the depository financial institutions that
purchase money and sell money for money i.e. they collect deposits from the general
public, corporate bodies and private organizations providing them the certain percent of
interest, mobilize the collected fund to productive sectors and distribute the accumulated
fund to those in need of money by charging the certain percent of interest. The primary
operating activity of any bank is to collect funds in the form of deposits from the surplus
sector of the economy and transfer the collected fund to the deficit unit of the economy in
the form of loans. Bank is, therefore, known as a dealer of money that bridges the gap
between the savers of the fund and users of the fund. In this way, a bank is a sensitive
sector of the industry because it plays with the public money.

According to the Nepal Rastra Bank Act 2002, “Bank is a financial institution, which
provides financial services that may be in the form of accepting deposits, advancing loans,
providing necessary technical advice, dealing over foreign currencies, remitting funds,
etc.”

According to the Bank and Financial Institution Act 2073, “Bank” means a corporate
body incorporated to carry on banking and financial transactions as referred to by law.”

In simple terms, a bank is an institution which deals with money and credit. A bank is
a financial institution that serves as a financial intermediary, who bridges gap between the
savers of the fund and users of the fund. Banks exist in the economy to perform the
function of the intermediary. They are the organizations that channel the savings of
government, businesses, individuals and foreigners into loans or investments. Bank
intermediates not only the surplus and deficit units but also perform various management
activities to create a balance in the economy.

2.1.1 History of Banking Industry

The word “Bank” has been derived from the Italian word ‘Banco’, Latin word "Bancus"
and the French word "Banquet” which means a place for keeping, lending and exchanging
money in the market place by money lenders. The concept of banking is not a modern

Bajracharya, 8
concept; rather it started to evolve after humans were able to realize and develop money.
Though money had made human life much easier than before, ancient humans started to
realize the complexities of evolution of money in their life. So, in order to overcome these
complexities and the difficulties that were attached with the benefit of money, the concept
of banking emerged in the human mind. Earlier the moneylenders and the landlords
perform the banking activities as the informal banks but later the activities of these people
are formalized and the concept of bank as an institution has emerged.

The first ancient Bank of the world, the Bank of Venice, was established in Italy in 1157
A.D. Following the footsteps of this bank, two other banks were established in 1401 and
1407 named Bank of Barcelona and Bank of Geneva, respectively. The crucial
breakthrough in modern banking history was made in 1694 A.D. when the first modern
bank “The Bank of England” was established. After the establishment of this first English
Bank, the Banking sector had experienced various ups and downs but still they persisted
and because of that persistence they are now able to exist in this 21st century world as one
of the essential elements of human life. (www.wikipedia.org)

Presently, banks are not only the deposit collecting and loan lending institutions but also
the institutions which help its customers in various ways as per their convenience and
ability with full security. They had been developed as the essential service providing
institutions in this rushing world. There is increasing competition among banks to better
serve the people through their financial assistance. Hence, banking had become an
important element of the world economy in the present time

Banking history began in1764 A.D. Since then banking has begun to prosper. His
Majesty’s government in Nepal adopted a liberal open economy after restoration of
democracy in the country. As a result several commercial banks were established and came
up to operation.

2.1.2 History of Modern Banking in Nepal

Nepal's formal financial system had a late start and began less than one and a half centuries
ago. The history of banking in Nepal is believed to have started from the time of Prime
Minister Ranoddip Singh in 1877 A.D. He introduced many financial and economic
reforms. The establishment of Tejarath Adda in 1880 can be conceived as the beginning of
the process of credit mobilization in Nepal. However, this institution, although formally

Bajracharya, 9
established, was not allowed to take public deposits and provide credit to the public. The
fund had been provided by the government for credit to their staff and landlords only. Even
the urban people in need of financial support had to rely on Shahus (merchants) and
landlords because of the limited activities of Tejarath Adda.

During the time of Chandra Shamsher (1901-1929), credit facilities of “Tejarath” were
extended by opening its branches and later it was replaced by the first bank of Nepal.
Modern banking in Nepal started only with the establishment of the first bank of Nepal,
Nepal Bank Limited (NBL) in 1937 A.D. that made the financial services available to the
general public. It was formed as a joint venture between the government and the private
sector. Later on, Nepal Rastra Bank, the Central Bank of Nepal, was established in 1956
AD under the NRB Act 1955, and the process was made easier for establishment of banks
and financial institutions in the country. It was established with an objective of supervising,
protecting and directing the functions of commercial banking activities.

Three institutions of diverse nature were established under the full ownership of the
Government of Nepal (GON); (i) Nepal Industrial Development Corporation (NIDC in
1959); (ii) Rastriya Banijya Bank (RBB in 1966); and (iii) Agriculture Development Bank,
Nepal (in 1968). The entry of other development banks, finance companies, micro-credit
development banks, savings and credit cooperatives and Non-government organizations
(NGOs) for limited banking transactions started after 1992 under three major acts namely
Finance Company Act 1985, Company Act 1964 and Development Bank Act 1996.

After the restoration of democracy in Nepal, there has been tremendous development in the
banking sector. The economic and financial reform policies undertaken by the government
have increased both the number of banks and the types of services offered. The NRB has
classified the institutions into “A” “B” “C” “D” groups on the basis of the minimum paid-
up capital and provide the suitable license to the bank or financial institution. Group ‘A’ is
for commercial banks, ‘B’ for the development banks, ‘C’ for the financial institutions and
‘D’ for the Micro Finance Development Banks. These commercial banks and financial
institutions have played significant roles in creating banking habits among the people,
widening area and business communities and the government in various ways. (Thapa;
2017:2-4).

Bajracharya, 10
According to Nepal Rastra Bank’s Banks & Financial Institution Regulation Department
Statistics Division, there are 137 financial institutions till Baishak, 2078.
Table No. 2.1: Classification of Banks
Class Types of Banks No. of Banks in Nepal (as of
Baishak, 2078)
“A” Class Commercial Bank 27
“B” Class Development Bank 18
“C” Class Finance Companies 20
“D” Class Micro Credits 72
(Source: www.nrb.org.np)

2.1.3 Concept of Commercial Banks

The Central Bank of Nepal classifies the licensed financial institutions into Class “A”,
Class “B”, Class “C” and Class “D” on the basis of the minimum paid up capital required.
A commercial bank is an A Class financial institution with paid up capital minimum 8
billion.

A commercial bank is an institution that provides services such as accepting deposits,

providing business loans, and offering basic investment products. Commercial bank can
also refer to a bank, or a division of a large bank, which more specifically deals with
deposit and loan services provided to corporations or large/middle-sized business - as
opposed to individual members of the public/small business - retail banking, or merchant
banks (www. wikipedia.org.com).

It accepts deposits, offers checking account services, makes various loans, and offers basic
financial products like certificates of deposit (CDs) and savings accounts to individuals and
small businesses. A commercial bank is where most people do their banking, as opposed to
an investment bank. Commercial banks make money by providing loans and earning
interest income from those loans. The types of loans a commercial bank can issue vary and
may include mortgages, auto loans, business loans, and personal loans. A commercial bank
may specialize in just one or a few types of loans.

Commercial banks attract large amounts of capital from investors and are crucial for small
businesses for loans and credit to help their businesses thrive. Businesses can also get other
various financial services such as online financial transactions, financial transaction

Bajracharya, 11
tracking etc. Commercial banks are very important for the development of the national
economy.

2.1.4 Functions of Commercial Banks

The major functions of commercial banks are:

a) Accepting deposits:
Commercial banks accept deposits from individuals, partnerships firms and
corporations and also from central government and local governments. Banks
attract idle savings of people in the form of deposits. These deposits may be of any
of current account/ demand deposits, saving account and fixed/time account.

b) Advancing loans and advances:

.

Loans and advances are the secured and constitute main sources of a bank’s assets.
The deposits received by commercial banks are lent to individuals, companies and
other BFIs for short, medium and long term loan to some extent. The banks advance
loans in forms of overdraft, by creating deposits and discounting bills.

c) Remitting funds:
Commercial banks remit funds for their customers through bank drafts from one
place to another. It facilitates electronic funds transfers which are a quick and
effective method of transferring money.

d) Agency function:
The commercial bank works as an agent of their customers by receiving the rent,
dividend, interest of shares and debentures, distributing salary, etc. Similarly, it also
receives and makes payments of insurance premium, income tax, electricity fee, etc
on behalf of its customers. It acts as an agent on carrying governmental and other
transactions on the behalf of the Government of Nepal.

e) Credit creation:
This is a unique function of a commercial bank. Commercial banks enhance the
fresh credit in lump sum or by installment against securities of the same movable or
immovable assets. When a bank advances a loan to its customers, it doesn’t lend all
cash but opens an account in the name of the borrower and deposits only the
required amount. Creation of such deposits is called credit creation by which there
increases money stock in an economy.

Bajracharya, 12
 f) Issue credit instruments:
The bank issues the letter of credit, travelers’ cheque, draft, and MasterCard to the
customers that facilitate easy financial transactions.

g) General utility functions:

In addition to agency services, the modern banks provide many general utility
services, which are given below:
 Purchase and sale of securities.
 Providing valuable advisory service to its customers.
 Exchanging the foreign currency of its customers.
 Trading of Assets.
 Providing various economic and statistical information for research and
development.
 Helps the central bank to implement various fiscal and monetary policies.

(Shrestha, et.al; 2015:263-266)

2.2 Present Situation of Banking Industry

The burning issue all around the globe in 2020-2021 is the outbreak of Corona Virus. The
virus first started in China and is gradually travelling to almost all the nations of the globe.
The virus not only hit the lives of millions of people but also drastically affected the global
economy. Financial sector, which is one of the most sensitive sectors of the economy, has
been drastically affected by this pandemic.

Aryal (2020) in her article entitled “Current Situation of the Banking Sector in Nepal
2020” said that the pandemic has led banks and financial institutions of Nepal to a critical
condition. Most of them have gone into loss while a few others have made very less profit
compared to last year. Nepal Rastra Bank has asked all the commercial banks to keep the
spread rate at a maximum of 4.5 percent by the end of the current fiscal year. The nation-
wide lockdown due to covid-19 resulted in the financial struggle of the banking sector.
Increase in unemployment rate due to lockdown caused loss of source of income, closure of
businesses. Cash withdrawal increased from the banking sector immensely. The
government provided relief for people but they lacked homework to maintain economic
sustainability by the government which added financial pressure on the banking sector of
Nepal.

Bajracharya, 13
This situation created hurdles to spur growth. But as things will not remain the same, the
situation started to become normal in a new way. Banks and financial institutions started
operating normally after several months of lockdown in Nepal. Despite all the losses in the
performance of Banks, they started to grow gradually. However, the second phase virus
currently going on has brought that situation again. Loan disbursement has become very
tight because of low investment. Loan recovery has become difficult for banks because of
low/no income of people. There is high liquidity in the market. Banks are offering loans at
high cost. The economic loss followed by the fall in demand has led to a negative economic
growth rate this year.

Other than the pandemic effects, the present scenario of Nepalese banking industry can be
explained under below point:

 Non-performing Loan (NPL)

The current crisis with irregular cash flow for businesses has caused banks to
generate a new generation of non-performing loans (NPLs) especially representing
the key sectors of our economy such as; tourism, transportation, retail &
manufacturing and the agriculture sector. As a contingency plan, the government
has started to provide some form of subsidy or support to pay back interest to the
banks for those businesses that have the capacity to pay back and have been
stressed by the pandemic.

 Liquidity
Before the pandemic, the banking industry of Nepal was facing a shortage of
investable funds. As a pandemic starts to rise, banks face excess liquidity because
of low investment. Loan disbursement is low in pandemic. Banks are offering loans
at reasonably lower rates.

 Interest rates
Banks are decreasing the interest rate on both savings and fixed deposit accounts. In
addition, bankers also agreed to decrease the premium over the base rate by 1%.
The change is expected to decrease bank’s cost of funds to lower their base rate,
thus banks will be able to minimize interest rates on its credit products. These
provisions are expected to be short-lived and thus not a sustainable solution.

Bajracharya, 14
  Competition
More than 25 “A” class commercial banks are operating more than 100 branches
throughout the country and BFIs are expanding their business rapidly. This actually
shows that the banks are facing real competition from those of competitors.

 Policies of Regulating body

It is mandatory for all the banks to operate their business in the rural sector of the
country, which is challenging for any corporate sector. Lack of infrastructure in the
rural sector poses various difficulties to open branches and to deploy staff. To ease
liquidity in the banking channel, the central bank has planned to provide some
additional ease in the existing Cash Reserve Ratio (CRR) ratio and CCD ratio
requirement that could also help the matter up to some extent in the present
situation.

Table No. 2.2: List of Commercial Banks in Nepal

S.N Date of
Name of Banks Head office
. Operation
1 Global IME Bank Ltd. 2019/09/04* Kamaladi, Kathmandu
2 Agriculture Development Bank Ltd. 1968/1/21 Ramshahpath, Kathmandu
3 NMB Bank Ltd. 2019/09/28* Babarmahal, Kathmandu
4 Nepal Investment Bank Ltd. 1986/3/9 Durbarmarg, Kathmandu
5 Prime Commercial Bank Ltd. 2007/9/24 Kamalpokhari, Kathmandu
6 Mega Bank Nepal Ltd. 2018/05/13* Kamaladi, Kathmandu
7 Kumari Bank Ltd. 2001/4/3 Tangal, Kathmandu
8 Nabil Bank Ltd. 1984/7/12 Beena Marg, Kathmandu
9 Nepal Bank Ltd. 1937/11/15 Dharmapath,Kathmandu
10 Citizens Bank International Ltd. 2007/4/20 Narayanhitipath, Kathmandu
11 NIC Asia Bank Ltd. 2013/06/30* Thapathali, Kathmandu
12 Prabhu Bank Ltd. 2016/02/12* Babarmahal, Kathmandu
13 Siddhartha Bank Ltd. 2016/07/21* Hattisar, Kathmandu
14 Laxmi Bank Ltd. 2002/4/1 Hattisar, Kathmandu
15 Himalayan Bank Ltd. 1993/1/18 Kamaladi, Kathmandu
16 Nepal Credit & Commerce Bank Ltd. 2017/01/01* Bagbazar, Kathmandu
17 Sanima Bank Ltd. 2012/2/15 Nagpokhari, Kathmandu
18 Bank of Kathmandu Ltd. 2016/07/14* Kamaladi, Kathmandu
19 Nepal SBI Bank Ltd. 1993/7/7 Kesharmahal, Kathmandu
20 Sunrise Bank Ltd. 2007/10/12 Gairidhara, Kathmandu
21 Rastriya Banijya Bank Ltd. 2018/05/02* Singha Durbar, Kathmandu
22 Machhapuchhre Bank Ltd. 2012/07/09* Lazimpat, Kathmandu

Bajracharya, 15
 23 Century Commercial Bank Ltd. 2011/3/10 Putalisadak, Kathmandu
24 Nepal Bangladesh Bank Ltd. 1994/6/6 Kamaladi, Kathmandu
25 Everest Bank Ltd. 1994/10/18 Lazimpat, Kathmandu
26 Civil Bank Ltd. 2016/10/17* Sundhara, Kathmandu
27 Standard Chartered Bank Ltd. 1987/2/28 Naya Baneshwor, Kathmandu
*Joint operation date after merger/(s) and acquisition/(s).

(Source: NRB Mid May, 2021 Report).

2.3 Challenges and Opportunities of Banking Industry

The banking sector of Nepal is facing its ultimate test amidst political instability, liquidity
crisis, and unfavorable policies of the regulating body, sluggish economy and various
macro and micro economic factors. Further, the global outbreak of Covid 19 has hit
Nepalese banking sector badly. By strengthening the regulatory system and improving the
implementation of new standards on quality and quantity of capital and liquidity and risk
management, opportunit ies can be created for the banking sector such as branch
outreach to rural areas, developing hydro power and tourism etc. But there are certain
challenges that hinder the smooth operation and development of Nepalese banking sector.

The major challenges of banking industry of Nepal are as follows:

1) Investment in unproductive sectors

Banks face liquidity crunch because they invest more than the required percentage
in unproductive sectors, such as land, housing and motor vehicles. Nepal has ample
opportunities for investments. Hydroelectricity, tourism and services are three
prominent sectors that investors like. And thus, Banks can contribute to economic
growth and play a positive role in mobilizing financial resources. But commercial
banks and other financial institutions prefer medium and small projects, even
though there are some examples of consortium financing.

2) Cybercrime in banking industry

The banking industry has enjoyed the ride of emerging technology to undergo
significant changes. Banks are among the biggest beneficiaries of the IT revolution
and have largely adopted Information Technology solutions for rendering the
banking services to their customers. With the swift expansion of computer and
internet technologies, new forms of worldwide crimes known as “Cyber Crimes”
have evolved in the scene. Banks and Financial Institutions remain the unabated

Bajracharya, 16
 targets of cyber criminals in the last decade. Before, it was limited to data piracy,
email blackmail, SMS blackmail, etc. whereas today it has reached a wide variety
such as phishing, unauthorized access, online fraud, online illegal activities, etc.

3) Banking fraud
The most common incidence of bank fraud is stolen checks. There is a risk that
people open bank accounts under false identities and then acquire blank checks
from an entity, organization, or individual. Often, employees abuse their access to
sensitive financial information at their workplace and steal confidential information
and transfer it to outsiders. Other wrongdoers attempt to make forged or altered
checks in an attempt to deposit it in their own account or cash it. Forged signatures
are another common instance of bank fraud. Mainly banking fraud occurs in terms
of electronic fraud, identity theft, Credit/Debit card fraud, cheque fraud.

4) Competition
There is high competition among the commercial banks of Nepal. There are
altogether 27 commercial banks competing with each other to win deposits and
loans. There is unhealthy competition among banks to woo deposits by offering
high interest rates on deposits. Due to strong market competitors, commercial banks
have to make changes quickly not only in technology, but also in operations,
culture, and other facets of the industry which is challenging for traditional banks.

5) Non-Performing Assets (NPA)

Non-Performing Assets do not yield any income, and reduce profits and thus,
higher the level of non-performing loans, lower the profit. The existing level of
Non-Performing Assets in the current banking environment is not a good sign for
smooth growth of the banking sector. The time has come to properly implement a
prudent strategy for reducing NPAs which is a challenging task in this pandemic
situation. Increasing flow of credit to unproductive sectors increases risk and level
of NPA and thus poses a challenge in maintaining financial sector stability.

6) Innovative product
With the change in time and demand, banks need to develop new innovative
banking products and services to enhance their market share. They should be less
costly and time saving to potential customers that satisfies additional desires of the
customers. But innovative banking services are usually modern technology based.

Bajracharya, 17
 The digital revolution is transforming consumer expectations, making the customer
experience a central focus of institutions’ distribution and marketing efforts.
Designing appropriate products to satisfy customers’ changing desires and
encourage savings by the use of advanced technologies has been a challenge in
Nepalese banking sector.

Though there are a lot of challenges in the banking sector, many opportunities still exist
which are yet to be exploited to their potential for the benefit of the Nepalese. The
opportunities of banking industry of Nepal are as follows:

1) Remittance
Remittance through foreign employment is one of the significant contributors on
saving and the country’s economy. Banks make transfer of funds for customers
from one place to another easier through bank drafts. The development of the
banking industry in Nepal has facilitated electronic funds transfers which are a
quick and effective method of transferring money through bank draft, letter of
credit, telegraphic transfer (TT), credit cards, etc.

2) Technology
The banking sector has embraced the use of technology to serve its customers faster
and also to do more with less. Today all banks have e-banking and mobile banking
facilities for easy access to their bank account and its service. Customers are
notified about each and every transaction in their account. Thus, with the
development of the banking industry, people can get access to new technology and
digitized banking services.

3) Investment
Nepal has ample opportunities for investments. Hydroelectricity, tourism and
service are three prominent sectors the investors are willing to make their
investments. Not only these sectors, other categories like mega infrastructure
development projects specially, construction of bridges, dams, roads, tunnel
highway, railways, airport; manufacturing projects like cement, steel and other
production units; extraction and exploration of minerals, mines, etc are priority
sector investments for investors which requires a considerable amount of capital
investment. Bank loans are the major sources of investment. Thus the banking
industry provides opportunities for investment in various projects.

Bajracharya, 18
4) Merger and Acquisition
There is intense competition in Nepalese banking industry. Banks need to
strengthen and increase capital to compete. Merger leads to synergy effect and
strengthens banks position and brings economies of scale and cost saving. NRB
keeps suggesting merger and acquisition of banks and financial institutions to make
few but strong institutions. Thus, there is an opportunity in the current banking
environment to merge or acquire financial institutions and strengthen their position
and make few but stronger institutions than many weak institutions.

5) Economic development
Banking industry plays an important role in flourishing country’s economy. It
contributes to a country’s GDP. It leads to capital formation by collecting deposits
from surplus units and converting these deposits into loans advances. Development
of the banking industry also helps in the development of trade and commerce
through fast and smooth flow to funds anywhere. It provides opportunities to
generate employment and promotes industries. Thus, banking sectors directly or
indirectly provide opportunities for economic development.

Bajracharya, 19
CHAPTER THREE

Bajracharya, 20
 INTRODUCTION OF CIVIL BANK LTD

3.1 The Context of Civil Bank Ltd

Civil Bank Limited is a full-fledged commercial bank incorporated with the vision of
becoming the most trusted bank by providing dedicated service to all the clients/ customers
through thick and thin. Bank has commenced its operation on November 26, 2010 (Mangsir
10, 2067). Founded by promoters coming from diverse professional backgrounds (such as
manufacturing, trading, financial industry & real estate), Civil Bank envisions becoming a
dominant player in the banking industry of Nepal and firmly believes in contributing to its
economic growth by empowering our rendering services to all classes and sectors of
society.

Civil Bank is a policy driven Bank which functions with the principle of "zero tolerance" in
terms of compliance with all regulations, policies, manuals/ guidelines and prudential
banking norms, and always believes and functions with ethical business values. Driven by a
customer-centered philosophy, Civil Bank Limited always endeavors to provide essential
banking services and access to finance to Nepali denizens from all strata across the country
through support of sophisticated technology. It has been consciously integrating social
responsibilities together with its corporate strategies, resultantly gaining ground in terms of
recognition. (https://www.civilbank.com.np/)

At present, the Bank has an Authorized Capital of NPR 10.00 Billion and Paid up Capital
of NPR 8.64 Billion. The management team consists of dedicated and competent
professionals with considerable banking experience. The Bank has one of the most
stringent risk management frameworks to monitor and manage all types of risks viz. market
risk, operational risk and credit risk, and also a strict AML (Anti Money Laundering)/ KYC
(Know Your Customer) policy and procedures in place that pervades through entire
operations of the Bank. The Corporate Office and Main Branch are centrally located at
CTC Mall, Sundhara, Kathmandu, Nepal. At present, the Bank has expanded its network to
114 different locations, 89 ATMs and 6 Extension Counters. The Bank is soon expanding
its branch network to numerous other locations within this year.

Bajracharya, 21
3.1.1 Vision, Mission, Goal and Objectives of Civil Bank Ltd

a) Vision
Civil Bank Limited is a full-fledged commercial bank incorporated with the vision
“To become the most trusted bank”.
a) Mission
 Ensure excellence in customer service.
 Offer best Return on Investment to shareholders.
 Be the best employer who treats its employee as a valuable asset.
 Effectively implement good governance and compliance.
 Be a responsible corporate citizen
 Uphold brand equity.
b) Goal
Civil Bank has a goal to contribute directly or indirectly in the economic growth of
the country by being a prominent player in the banking and financial sector.
c) Objectives
 Prudent Expansion
 Innovation and Digitization
 Dedicated Customer Service
 Competitive Human Resource
 Vigilance

3.1.2 Shareholding Structure of Civil Bank Ltd

The shareholding structure of banks is 51% by promoter groups and 49% by the general
public.
Figure No. 3.1: Shareholding Structure of Civil Bank Ltd

49%
51%

Promoter Group General Public

(Source: CBL Annual Report 2076-77)

Bajracharya, 22
3.1.3 Organization Structure of Civil Bank Ltd

Figure No.3.2: Organization Structure of Civil Bank Ltd

BOARD OF DIRECTORS

CHIEF EXECUTIVE
OFFICER

DEPUTY CEO

CHIEF CREDIT CHIEF OPERATING CHIEF CREDIT

OFFICER OFFICER BUSINESS OFFICER

DEPARTEMENT
HEADS

PROVINCE HEADS

BRANCH
MANAGERS

ASSISTANT MANAGERS/
SUBORDINATES

SUPPORTING
STAFFS

(Source: CBL Annual Report 2076-77)

Bajracharya, 23
3.1.4 Board of Directors

The board of directors of Civil Bank Ltd is guided by Er. Ichchha Raj Tamang, the
chairman of the bank. The list of Board of Directors of Civil Bank Ltd is as follows,

Table No. 3.1: Board of Directors

S.N. Name of Directors Designation
1. Er. Ichchha Raj Tamang Chairman
2. Mr. Ambir Bogati Director
3. Mr. Prakash Tayal Director
4. Mr. Pratap Jung Pandey Director
5. Mr. Bhimananda Dhungana Independent Director
6. Mr. Yugesh Bahadur Malla Director
7. Mr. Shambhu Prasad Panta Director
(Source: https://www.civilbank.com.np/board-of-directors)
The Board of Directors is responsible for policy making & guidance to the management.
The government nominates all board members including the Chairman. The executive
power is vested in the Chief Executive Officer (CEO). The board of directors includes
seven members including Directors and Chairman.

3.1.5 Executive Team

Recently, Sunil Kumar Pokhrel, DCEO of Civil Bank Limited, has been appointed as
acting CEO of the bank. Govinda Gurung was the CEO of the bank before. The other
executive’s team members which are listed in the following table,
Table No. 3.2: Executive Team Members of Civil Bank Ltd
Acting Chief Executive Officer Sunil Kumar Pokhrel
Chief Credit Officer/ Chief Operating Officer Sachin Jung Rayamajhi
Chief Credit Business Officer Suman Acharya
(Source: https://www.civilbank.com.np/senior-executives)

Bajracharya, 24
3.1.6 Department Heads

There are different department heads in Civil Bank Ltd. The details are listed below:

Table No. 3.3: Head of Department

Head- IT Sagar Poudyal
Country Head- Deposit and Transaction Banking Bhola Bahadur Bista
Country Head- SME Banking Kiran Khadka
Head- Credit Control Prakash Raj Pant
Head- Human Resource Shilu Aryal
Country Head- Micro/DSC Yub Raj Guragain
Head- Integrated Risk Management Department Upendra Manandhar
Head- Branch Operations Govardhan Adhikari
Head- Research and Development Sudip Shrestha
Head Central Operations/ International Banking
Anija Tuladhar
Department
Head- Finance Sachin Newa
Head Recovery and Collection Bishnu Pandey
Country Head- Retail Credit Aanchal Dhakal
Head- Accounts Pabitra Man Shrestrha
Head- Compliance and AML/CFT Shashi Nepal
Head- Branding and Corporate Communications Bijaya Ram Kasajoo
Head- Internal Audit Sunil Maharjan
Head Credit Administration Manoj Basnet
Head- Legal Binu Kumar Shrestha
Head- Credit Monitoring and Inspection Pravin Ghimire
(Source: https://www.civilbank.com.np/head-of-department)

3.1.7 Financial Description of Civil bank Ltd

 Authorized Capital: NRs. 10 billion

 Paid-up Capital: NPR 8 .64 billion

Bajracharya, 25
 3.1.8 Key Financial Performance

Table No. 3.4: Key Financial Indicators of Civil Bank Ltd

SN Particulars FY 76/77

1 Earnings Per Share Rs.6.94

2 Price- Earnings Ratio (P/E Ratio) 20.04%

3 Liquidity Ratio 25.17%

4 Net Worth per Share Rs. 127.07

5 Non Performing Loan (NPL) 1.90%

(Source: CBL Annual Report 2076-77)

Table No. 3.5: Unaudited Financial Results of Civil Bank Ltd (Quarterly)
1st Quarter 2nd Quarter 3rd Quarter
Ratios (%)
(2077/78) (2077/78) (2077/78)
Capital Fund to RWA 14.72% 13.73% 11.43%
Non-Performing Loan (NPL) to Total
1.50% 1.70% 1.13%
Loan
Total Loan Loss Provision to Total NPL 176.58% 141.99% 177.77%
Cost of Funds 7.06% 6.87% 6.61%
Credit and Capital to Deposit Ratio 69.28% 75.32% 80.30%
(Source: Karobar National Daily)

3.2 Present Situation of Civil Bank Ltd

Civil bank Ltd acquired a unique finance, Axis Development Bank, ILFC which made the
bank stronger. After merger the bank’s authorized capital has reached to NPR 10 Billion
and its current paid up capital is NPR 8.64 billion. Civil Bank has been achieving all the
targets and expanding its branches rapidly. The Bank is running in its 11th year in
operation. Currently, it has a total 114 branches, 89 ATMs and 6 extension counters all
over the country providing great financial service to its targeted customers. Civil Bank is
more focused into the rural areas where there is no banking knowledge, for those areas the
bank wants to spread the banking importance and its impact on day to day life basis to
those people which is a very interesting and great part of Civil Bank Ltd. The bank is

Bajracharya, 26
becoming stronger in terms of every aspect. Even during the pandemic situation, the bank
did not fail to provide services to its customers. Digital platforms were provided to take
services from the bank during the outbreak.

3.2.1 Product and Services of Civil Bank Limited

 Deposits Products
Civil Bank Ltd has been providing following various saving deposit products:

Table No. 3.6: Civil Banks Saving Products and Interest Rates
Local Currency Savings (NPR) Min. Balance (NPR) Interest Rate (%)*
Mero Bachat Khata 500 3.55%
Super Premium Saving Account 25,000 5.55%
Premium Saving Account 10,000 4.75%
Silver Savings 10,000 3.55%
Gold Savings 25,000 3.55%
Kishor Bachat Khata 1,000 3.55%
Naya Bachat Khata 75,000 3.55%
Nari Bachat Khata 1,000 3.55%
Salary Plus Deposit 0 3.55%
Ama Buwa Bachat Khata 10,000 3.55%
Civil Bank Remit Saving 1,000 3.55%
Civil Laganikartako Khata 1,000 3.55%
Sansthapak Bachat Khata 10,000 3.55%
Sagarmatha Bachat Khata 1,000 3.55%
Chandra Surya Bachat Khata 10,000 3.55%
Platinum Savings A/c 50,000 3.55%
Civil Nepali Bachat Khata 0 3.55%
Samman Bachat Khata 0 3.55%
Online Savings Account 0 3.55%
Samriddhi Bachat Khata 100 3.55%
Hamro Bachat Khata 1,000 3.55%
Surakshya Bachat Khata 5,000 3.55%
*Interest rate published for the month of Ashad, 2078.
(Source: https://www.civilbank.com.np/financial-information/schedule-of-interest-rate)

Bajracharya, 27
The bank has published following interest rates in fixed deposit to various categories of
customers:

Table No. 3.7: Civil Banks Fixed Deposit Interest Rates for Ashad, 2078

Non-Institutional Interest Rates

3 months - below 6 months 7.01%
6 month- below 1 year 7.51%
1 year and below 2 years 8.05%
2 years and above 8.55%
Non-Institutional Annuity Deposit 8.55%
Institutional Deposit: Interest Rates
3 months 7.15%
6 months - below 1 year 7.51%
1 year and above 7.75%
(Source: https://www.civilbank.com.np/financial-information/schedule-of-interest-rate)

 Loan Products

1) Home Loan
 Land or House Purchase.
 Reconstruction.
 Minimum tenure of 5 years and maximum tenure of 35 years or age of 70 years.
 Loan Limit: NPR 3,00,000 to NPR 80,000,000
 Up to 50% Income to EMI ratio.

2) Auto Loan
 Tenure up to 7 years and facilitation.
 Loan Limit: NPR 3,00,000 to NPR 20,000,000.
 Refinancing and Sweep Facility.
 Up to 45% Income to EMI ratio.

3) Gold Loan (New Road and Surya Binayak Branch)

 Both OD nature and Demand nature loans can be provided.
 Loan Limit: NPR 1,00,000 to NPR 30,000,000.
 Instant Processing and hassle free documentation.
 Maximum tenure of 1 year for OD loan and Demand Loan.

Bajracharya, 28
4) Share Loan
 Instant processing.
 Minimum NPR 5,00,000 and maximum as required
 Up to 65% of Market Value of Shares.

5) Personal Loan
 Minimum NPR 3,00,000
 Maximum tenure of 5 years or age of borrower should not exceed 58 years upon the
last installment(EMI basis)

Other loan services of Civil Bank provided in competitive rates are as follows:
 Personal Mortgage Loan
 Loan Against FD
 Education Loan
 Civil Bank Overdraft Card
 SME Loan
 Corporate Loan, etc.

 Civil Internet Banking and Mobile Banking

 Easy to carry/execute various kinds of banking transactions using secured &

convenient online platforms from around the world.
 Create multiple internet banking users and assign desired rights to such created
users in case of payroll accounts.
 Access for balance inquiry, fund transfer, account statement etc.
 Account to account fund transfer system within the bank.
 Utility bill payments - Telephone & mobile, internet - ADSL, balance top up in
eSewa account etc.

 NCHL/IPS

 Allows transfer of funds to any BFIs of Nepal within the counter of Civil Bank.

 ASBA (Application Supported by Blocked Amount)

This is a facility provided by banks to investors in Initial Public Offerings (IPOs),

Follow-on Public Offers (FPOs) and New Fund Offers (NFOs) of mutual funds.

Bajracharya, 29
 Besides, Civil Bank is the first bank to provide ASBA service in regard to providing
Right Shares to all of its customers and promoters.

 MasterCard Debit Card:

Civil Bank MasterCard Debit card of Civil Bank which can be availed instantly at
any of its branches is accepted over millions of merchant outlets and ATMs
worldwide.

 Remittance

The Bank is an authorized pay-out agent of different national and international

remittance companies which enables its customers to receive money from different
countries like UK, USA, Malaysia, UAE, Kuwait, Dubai, India and many other
countries around the world. Civil Remit is one of the proprietary remittance
subsidiary companies of Civil Bank.

3.3 Challenges and Opportunity of Civil Bank Ltd

The key challenges for Civil Bank Ltd are as follows:

1) High Employees Turnover

At present the staff turnover rate of the bank is high. Many of the old staff are
resigning from the bank but at the same time new ones are joining the bank to lead
the bank to a new and more profitable direction.

2) Young Commercial Bank

Civil Bank is a young commercial bank established in 2010 i.e. with only 10 years
history. Thus, it has low exposure in banking industry as compared to other
commercial banks which might affect the customers trust and their overall
performance

3) Competition
One of the major challenges for the bank is to enhance its performance and compete
with other BFIs in the industry. Civil Bank is one of the commercial banks with low
profit. In the present market scenario the interest rates offered by other commercial
banks are similar, so it has been a challenge to solicit new deposits, sell loan
products and be at the level of other banks.

Bajracharya, 30
4) Customer retention
Customer retention has been difficult for the bank because of changing needs of
people. The latest technology has made shifting from one bank to another cost
effective and time saving. Thus, retention of customers for a long time has been a
challenging job.

5) Regulatory Policies
The regulatory policies for banks and financial institutions keep changing which
brings challenges to smooth operation of banks. NRB keeps bringing new rules and
regulations with the change in various external environments and most of the time
brings new restrictions and ceilings on the activities of Banks.

The major opportunities of Civil Bank Ltd are as follows:

1) Business Expansion
Though Civil Bank is a young bank, we cannot ignore that it is also a growing bank.
It has yet to expand its business. It has opportunities to increase branches in many
areas, develop new products and enhance its profitability.

2) Corporate Social Responsibilities

The current pandemic has provided the banks opportunities to invest their CSR
budget in the right thing. By involving in helping families with zero income during
pandemic, Civil Bank has been able to enhance its image in the society which shall
directly affect its performance in near future.

3) Digitization
Development of technology has provided opportunities to banks to use them
effectively to serve their customers in many ways. Due to technology, bank
customers are able to perform financial transactions without visiting the bank’s
premises. The development of mobile banking, internet banking, debit card, credit
card, IPS, RTGS, QR Payment, etc are results of digitization. This further provides
greater opportunities to banks to come up with more digital services like these.

4) Balanced Development
NRB has directed banks and financial institutions to open more branches in rural
areas to facilitate backwarded regions with financial services. Thus, Civil Bank has
the opportunity to serve people of rural parts of the country and utilize the resources

Bajracharya, 31
 for the growth of the bank and the country. Similarly, NRB also directs banks to
mandatorily provide a certain percent of loan to specific sectors which provides
banks to support in the development of the country.

5) Global Transaction
Technology has enabled financial transactions throughout the globe. Remittance
service provided by banks has offered further opportunities to enhance global
trading and financial transactions and increase sources of income of the bank and
country as well.

6) Utilization of human resource

Today’s generation is smarter and more efficient. Civil Bank is a growing bank
which requires more knowledgeable human resources in every step to move
forward. It offers employment opportunities to skilled people and also to freshers
who are willing to contribute their effort to the banking industry. Hence, Civil Bank
has opportunities to utilize the young generation to work smartly and gain profit
through it.

Bajracharya, 32
CHAPTER FOUR

Bajracharya, 33
 ANALYSIS OF ACTIVITIES DONE/ PROBLEM SOLVED

4.1 Introduction of the Deposit and Transaction Department

Deposit and Transaction Banking (DTB) department of Civil Bank looks after the overall
country level deposit of the bank in different accounts types i.e. deposit mix, transaction
banking business at country level and providing excellent customer service, handling
customer grievances. Transaction banking business involves internet banking, mobile
banking, QR business, debit/credit, POS and other various types of digital transaction
product businesses.

4.1.1 Task-Setting

Deposit and Transaction Banking comprises three units: 1) Deposit, 2) Transaction

Banking and 3) Service Excellence. Deposit unit is further divided into two subdivisions:
i) Individual Deposit and ii) Institutional Deposit. Individual deposit team is responsible to
develop products for natural persons (Individuals), monitor, and solicit deposits from
individual customers. Institutional deposit team is responsible to initiate new relations and
maintain existing relations with various governmental institutions, companies, etc., solicit
deposits from them, product development, and maintain long term business relationships
with institutional clients.

Figure No. 4.1: Divisions of DTB Department of Civil Bank Ltd

Deposit and Transaction Banking Department

Transaction Service
Deposit Banking Excellence

Institutional Individual
Deposit Deposit

Bajracharya, 34
Each unit has its own sets of tasks to perform and goals to achieve. However, the ultimate
goal should be achieving the bank’s goal.

4.1.2 Functions of the Deposit and Transaction Department

Deposit Management in Civil Bank Limited is looked after by the DTB department at Head
Office. The department is provided with resourceful human skills and competencies in
order to handle overall country level business. They are involved in developing unique
strategies to solicit deposits from the market, achieve the target as given by Management
and enhance business and profitability of the bank in the long run.

Below are the key functions performed by the department:

1) Deposit
 Conduct market research to know about market condition, competitors data and
propose market updates and essentials.
 Identify possible new market segments for new services and growth.
 Initiate and maintain long term business relation with public, Government, Semi-
Government, NGO/INGO, Company Ltd, and Pvt. Ltd Companies etc.
 Maintain regular customer visits to enhance relationships in order to maximize
utilization of granted facilities.
 Cross selling of complementary banking services and increase banks revenue and
profitability.
 Regularly monitor and interact with branches and provide support, feedback,
suggestions and respond quickly to smoothen their activities.
 Retention of existing deposit of both Institutional and Individual clients developing
appropriate strategy and action plans with close coordination with Treasury/Finance.
 Manage deposit portfolio of the bank under the guidelines/ directives of NRB.
 Business promotion and client entertainment.

2) Transaction Banking (TB)

 Market research for innovative transaction banking platforms.
 Develop strategies to increase complementary banking services.
 Ensure secure digital transactions.
 Train branches regarding new transaction banking facilities.

Bajracharya, 35
  Ensure regular updates in TB applications like mobile banking apps, digital
payments, ATMs, fonepay, etc.
 Tie ups with different merchants to enhance TB business.

3) Service Excellence
 Empower and train front line staff.
 Ensure best quality services to customers in the industry.
 Priority banking facilities to high value customers.
 Timely handling of customer grievances.
 ISO certification and renewal.
 Collect and communicate customer’s feedback to concerned authorities and work
on it.

4.1.3 Product, Pricing and Distribution Planning

The DTB Department is responsible for new product development, set price (charges,
minimum balance requirement, etc) and delivery of the product and services to the right
group of customers at the right time.

Deposit relationships managers are fully dedicated towards accomplishment of bulk deposit
at the same time ensure stable nature of deposit. Most of the time they dealt with the
customer by providing maximum services and optimum return of their amount. The main
target of deposit RM is to solicit a good volume of deposit offering banking services to
customers as per their requirement. The interest rates shall be determined as per the market
scenario. Banks are providing competitive interest rates to the customer so that they can
attract the new customers, retain existing customers and attract competitors’ customers.

4.1.4 Customer Service

Customer service is a major part of the Deposit and Transaction Department of Civil Bank.
If a bank does not provide good services and fulfill the requirements of customers, they
might switch banks which is not acceptable for a bank. Customer base is a fundamental
part of the bank. Every bank aims at increasing the number of customers which is basic for
deposit growth and of the bank. Civil Bank precisely monitors its customer service part.
The service excellent unit handles entire customer’s problems, their suggestions and deals
with customers.

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4.1.5 Promotions

In deposit management the essential part would be the promotion of the product.
Promotional activities are one of the fundamental parts for the marketing of a product.
There should be aggressive promotional activities to grab the attention of the customer.
Since there are so many competitions in the banking industry, each and every bank is
particularly focused on their business and promotional activities.

Civil Bank has been involved in presenting and promoting ideas, product, or services by an
identified sponsor in a mass medium. The bank has been aggressively following
promotional activities such as print ads, radio, television, brochures and catalogs, posters,
mobile apps, web pages, banner ads. It totally enhances the bank’s profile and its product
and services.

Civil Bank is very much concerned regarding their corporate brand image; they keep
spreading their brand image through various CSR activities. In such a way, the bank holds
the attention of the public.

4.1.6 Deposit Product

 Saving Products
Saving products of banks are mostly focused on individual deposits. Civil
Bank has been frequently updating its saving products list that offers varieties
of services to customers. Some of the new saving products of the bank are
Annuity Deposit scheme, premium saving, super premium saving, structured
USD saving accounts. Every saving product of Civil Bank targets a particular
group of customers which has made its product more attractive.

 Current Deposit
Current deposit account is a non interest bearing account mostly for corporate
clients to facilitate their regular business transaction. For interest purposes,
customers can open a call account which offers interest on the deposit and is
linked with the current account. It means Current Deposit accounts generally
only earn demand deposit interest.

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  Fixed Deposit
A fixed deposit (FD) is a financial instrument provided by banks which
provides investors with a higher rate of interest than a regular savings account,
until the given maturity date. It is also known as a term deposit or time deposit.
As per the Nepal Rastra Bank fixed deposit cannot be liquidated before its
maturity time period. Fixed deposit is the main source of long term deposits in
every BFI which are invested in different areas such as loans and make profit
to the bank.

4.2 Role of Intern and Fitting in the Organization Structure

During this internship period, the internee was placed in the Deposit and Transaction
Banking Department (Marketing Department) for 8 weeks. The internee got opportunities
to work on following activities and become responsible for:

i. Search for deposit bid information.

Different governmental and non-governmental organizations invest their funds
in fixed deposit accounts, call deposit accounts and other interest bearing
products by publishing bid notices in daily newspapers, websites or through
email. They ask banks to quote competitive interest rates in the fund and submit
the proposal through sealed bids. The organization evaluates and compares the
interest rates along with the performance of the banks and decides on which
bank to select. Thus, such bid notices are very important to be tracked for BFI to
solicit huge deposits. If we miss out, we lose the opportunity to compete and
competitors get deposits. The internee was responsible to daily monitor
fixed/call deposits bids published in various portals like website, daily
newspaper, emails etc.

ii. Prepare Offer letters/ Proposal letters

The internee was responsible for preparing various offer letters to new corporate
clients to initiate business relations and also to existing clients for additional
deposits. Many organizations have their own format for proposals which
requires financial details, CSR budget details, etc. The internee needed to get
the asked financial and other details by contacting the concerned department.

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iii. Memo Writings
For every special offer made to clients, approvals should be taken from higher
authorities. In banks, approvals are initiated through memorandum writing and
circulated to concerned departments for information. The internee was also
responsible to write necessary proposals made to clients for approval.

iv. Track MIS related to Institutional Deposit

The internee was placed in the Institutional Deposit unit of the department for
internship. She was taught to generate various reports on Institutional Deposit
and communicate the same to higher authority. The MIS included data related to
No. of Fixed deposits opened, amount of Fixed deposit, Fixed deposit maturities
details, deposit portfolio, etc. The internee was responsible for conveying the
right information to the right authority for decision making.

v. Market analysis
The internee, during the internship period, was involved in market analysis
which involved analysis of competitor’s target market, new product, interest
rate promotion strategy, etc. Weekly basis the internee had to visit websites of
other banks, track competitors’ moves and communicate the same to the
supervisor so that the bank could also bring new activities to compete with
them.

vi. Search for new potential customers.

New customers are a gem to every business. The internee was utilized to search
for new customers either individual or institutional. The internee was also
assigned targets of number of new customers and deposits. For this, the internee
contacted her family members, relatives, friends, searched the internet and
conducted meetings with them for deposits.

vii. Courtesy visits to valued customers.

Regular courtesy visits are important for business organizations to retain
existing customers for the long run. Courtesy visits in banks are very fruitful as
customers feel valuable. The internee in the beginning of the internship made
few courtesy visits with her supervisor. Later, she visited clients alone on
various occasions and convinced clients for deposits.

Bajracharya, 39
 viii. Branch Co-ordination
The internee not only had to communicate with clients but also had to support
branches of the bank with information. The internee coordinated with the
branch for renewal of the institutional fixed deposits, provided offer letter
formats for their reference, provided information about their deposit portfolio,
etc. The internee called poor performing branches every week and asked about
their plans to improve their deposit portfolio and also suggested ways to
improve their performance.

ix. Documentation and Filing

There are so many files and paperwork in banks; in such work flow all the
documents should be maintained very properly in order to record day to day
data. The file has to be in the right place so that if there are any documents
required urgently then it will be easy to have it. The internee handled
documentation and filing work of the department.

4.3 Experience in the Internship Including Understanding of System, Processes and

Rationale

The eight weeks internship in Deposit and Transaction Banking (Marketing) Department at
Civil Bank Ltd, Head Office was an extremely informative and delightful experience in
every aspect. It got to know many internal activities of banks. It gave me a better
understanding of how members of a particular department perform as a team to fulfill goals
through strategy formulation and execution. Most importantly, in the present market
scenario there is a liquidity crisis and the fund generation part is so crucial, at that point I
am very fortunate to work in the Deposit section and get so much knowledge about how the
bank manages the fund in such a scenario.

Some of the major things, I got to experience and learn from this internship
program are as follows:

 Got to know about the market conditions in the banking sector.

 Learn to deal with customers and handle their issues.
 Enhanced communication skills.
 Build negotiation skills.

Bajracharya, 40
  Learn about the Core Banking System (Temenos T24).
 Learnt strategy formulation technique.
 Personality Development and learning it’s important at work.
 Get to know impact of positive attitude in workplace
 Learn different techniques to build public relations and its value to achieve goals.
 Learn to prioritize and coordinate activities.
 Time management.
 Got a chance to work with people with different personalities.
 Got to know about compliance and NRB guidelines, circulars.

4.4 Emergence/Occurrence of Issues, Problem or Challenges and how these Problems

were Solved/Addressed

4.4.1 Problem/ Challenges Encountered

During the internship period, various problems or challenges were encountered by the
internee. Among all, some of the major issues have been mentioned below:

 The target for institutional deposits in Civil Bank is assigned only to the RMs of the
Central Deposit team, Head Office. It means overall deposit management of
Institutional clients is handled solely by the Head Office not by branch level.
 Most of the time report generation is time consuming because of poor system and
frequent server crashes.
 There was no proper tracking system of funds in and out from inward/outward
clearings, and various interbank transactions which made deposit tracking
somewhat difficult.
 Due to relatively higher Non Performing Loan (NPL), it was difficult to convince
clients and solicit a good volume of deposit from big organizations.
 Other key financial highlights of Civil Bank are also not good as compared to other
commercial banks which directly impact customers’ view toward the bank’s
performance.
 The number of branches of Civil Bank is lower than competitors. Thus, this has led
to narrow reach of the bank to customers and thus low deposit collection.
 Few branches of Civil Bank are found to be inactive which affects profitability,
performance of the overall bank and optimum mobilization of branches.

Bajracharya, 41
  The chain of authority seems lengthy which makes implementation of activities
late. It means prompt decision and action is difficult.
 The operation department of the bank is very strict regarding documentation so
sometimes quick processing of clients requests is obstructed even if a single least
important document is missing.
 Staff turnover is very high in Civil Bank.
 As compared to other departments, Deposit and Transaction Banking of Civil Bank
has fewer no. of mid level staff.

4.4.2 Solution of the Problems

The major problems/ challenges encountered by the internee were solved by

following ways:

 The internee, during the department meeting, suggested that institutional deposit
targets should be assigned to branch level as well in order to collect more deposits
from small and large organizations that are in contact with branch level staff.
 Whenever report generation took time, the internee immediately contacted the IT
department to resolve the issue as soon as possible. The internee also shared her
knowledge on various functions of Ms Excel to fasten report preparation.
 For the tracking of inflow and out of funds through clearing and other fund transfer,
the internee regularly asked the details from the Clearing and operation department
and kept the record on a daily basis.
 For the challenges due to financial highlights of the bank, the internee
communicated about the better performance of the bank every year i.e. growing
status of the bank year to year rather than comparing with other banks while
convincing clients to provide deposit.
 The internee regularly followed up inactive branches about their current activities
and future plans so that they feel that the Head Office is monitoring their activities.
This develops a sense of fear and responsibilities within themselves and feel
motivated to work better.
 The internee made the memo and offer letter always ready beforehand so that it can
be forwarded quickly for approval. The internee from time to time followed up with
the concern department for the approval.

Bajracharya, 42
  The internee took approval from higher authority to process the request of high
value customers with pending documents and ensured that the pending documents
were received on time.
 Being a part of the Deposit and Transaction Banking team for 8 weeks, the internee
somewhat eases the challenge of lack of staff. The internee assisted other unit
members of the department to smoothen their work.
 The internee provided few leads to branches to contact and open accounts and to
solicit deposits from them.

4.5 Observed Gaps

The internship program made the internee realize that knowledge gained from the academic
courses is totally different in practice. There is a huge gap between theoretical knowledge
and practical life. Despite the gap, it is essential to gain conceptual knowledge in order to
work effectively in practical life. Concept is the base to perform any task in the working
environment. The knowledge gained from academic courses is not easy to implement in
real life situations. For example, interpersonal relationships seem to be simple in theory but
in practice maintaining interpersonal relationships with others is not an easy task. Depth
knowledge from course books about customer relationships cannot be as effective as
practicing in real life.

Few major gaps that the internee observed during internship are as follows:

 Before joining the internship, the internee used to think that heads only instruct
subordinates. But the internee found that heads not only instruct but also
support in various activities such as providing ideas for strategy, help in
following up higher authorities to get approvals, etc.
 People said that a bank job is very hectic; no personal time; no time for lunch,
late hour work. But the internee found that the more we focus on pressure, the
more it affects our efficiency. It is all about time management. Management of
short personal times can keep us fresh and make us focused on work and get it
done on time.
 Banking is perceived as a 9 to 5 job. But after internship, the internee found
that as per the need, staff need to come earlier or leave late or both.

Bajracharya, 43
  It is believed that interns are like free servants who are given lots of work to do
and pressure during the internship. But, the gap that was observed is that
interns are students of every staff of an organization to whom different works
are taught by involving themselves in that particular work i.e. through
experience.
 The internee, before joining internship, used to think that people working in an
organization should be strictly formal in every aspect such as greeting each
other with “Sir” and “Madam” only, not to have lunch with supervisors, not to
share personal feelings, only job related talks, etc. But the internee found that
informal relationships among staff are also encouraged in organizations for
motivation and a better performance environment. Informal relationships
include birthday celebrations, department outings and dinners, shopping
together, invitation to family parties, etc.

These are the few major gaps observed by the internee during the internship program which
helped to develop an even more positive attitude towards the banking work environment
and motivated me to make a career in this field.

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CHAPTER FIVE

Bajracharya, 45
 CONCLUSION/ LESSON LEARNT AND RECOMMENDATIONS

5.1 Inferences Drawn

The prime objectives of the internship are to fulfill the requirements for the degree of
Masters in Business Administration (MBA) and to obtain the professional experience by
exposing to the corporate culture and implementing the knowledge that has been learnt.
The internship at Civil Bank has helped the internee to extend knowledge about the
banking industry and thrive in the practical working environment. It has provided
opportunities to gain practical exposure in the real banking world and obtain some
experience that acts as a stepping stone before entering into the professional world.

In the course of the internship, the internee worked in Deposit and Transaction Banking
Departments which mainly emphasizes enhancing the customer base and deposit status of
the bank by maintaining a good relationship with the clients. Though the internee didn’t get
a chance to spend time in other departments, the supervisor did share the conceptual
knowledge about other departments with the internee. The internee got to know about the
various activities performed under DTB department of Civil Bank Limited. The internee
got the opportunities to analyze and solve real life problems. In the short period, the
internee learnt lots of new things and gained experiences that will be applicable in the
career path in the banking sector. The internship served to enhance personal, human,
analytical and managerial skills and capacity. The overall experience of internship was very
beneficial and constructive towards the pavement of the internee’s professional life. It
provided a great source of learning and experiences. Dealing with the customers and
making them convinced to have business relationships with the bank was something very
interesting and useful for my future perspective. The internship at CBL was very
productive and boosted the confidence level and interpersonal skills of the internee. It has
also developed the problem solving and decision making ability.

5.2 Overall Experience, Learning and Knowledge Gained

The most important lesson learnt during this internship period was the understanding of the
whole working procedure of the banking system and the workflow pattern in the banking
sector. The exposure to the real work scenario, which the internee got from the internship,
was truly precious. The internship contributed a lot to expand the knowledge on general

Bajracharya, 46
banking, organizations norms, values, culture, and policies. It has helped to enhance key
skills within oneself. However, the eight week period of internship was not sufficient to
deeply understand every aspect of the overall banking system. Below are the major lesson
learnt and knowledge gained during internship period:

 Banking Practices and Corporate Culture

Eight weeks working experience in DTB department of Civil Bank has provided
insights on various banking practices and corporate culture. How does the
department react to a particular event? What decision making procedures are used?
How corporate cultures impact their actions? Answers of these questions have been
understood by the internee from the internship.

 Communication Skill
Communication skill is the most demanding skill of today’s competitive world. The
internship at CBL has enhanced my communication skill to the next level. Direct
dealing with clients of different nature has helped the internee find different ways to
communicate and convince people. The internee learnt new ways of written and
oral interpersonal communication to satisfy the needs of different people.

 Relationship Management
Another major learning from internship is relationship building and management. It
is very difficult to manage relationships with others with different needs and
desires. Relationship management not only includes relationships with customers
but includes relationships with supervisors and other personnel within the
organization. Relationship management is a key strategy to solicit deposits. Banks
have included Relationship Manager (RM) as an important functional title in their
structure. By assisting Deposit RM of Civil Bank for 8 weeks, the internee learnt
about various strategies to manage long term relationships with customers which
will be fruitful for career development.

 Positive Attitude
During the internship time period, the internee practically experienced that positive
attitude has a direct impact on the day to day activities and can change the working
environment of any organization. The time spent on CBL made the internee realize
that a positive mindset is key to success which leads towards the great achievements
in life whichever sector we go.
Bajracharya, 47
 Personality Development
Individual personality can impact on attitude towards their job, people around them
and also about oneself. In the workplace, a good personality can create a huge
impact. Especially while in meeting with customers, the personality of the presenter
can make customers feel positive towards the product and services. The internee has
learnt the essence of self confidence to pursue others. Internee has learnt that while
presenting products and services to customers, one should show a strong and
confident personality so that customers can have full trust in you and your service.

 Network Building
The internee gained valuable contacts not only with prime banking customers but
also with key personalities of the banking industry such as department heads of
Civil Bank, executive members, etc. While working in a team, relationships with
different staff members of the bank were established. Such networking can be
beneficial for career references in the banking industry.

 Creative Problem Solving Skill

One of the most important outcomes that the internee got from internship is
enhancement in problem solving skill with creativity. The internee on a weekly
basis was involved in analyzing the market. Market research helped to find new
trends and problems in the market. Viewing the trends and events from different
perspectives helped in finding creative alternatives to deal with such events.

 Time Management
Time management is a key skill one must learn to be efficient in the banking
industry. Prompt actions are expected by supervisors and customers. The internship
taught me to prioritize all the work tasks and achieve goals effectively and
efficiently even in a pressurized atmosphere. It taught me to be punctual on the job
so that work can be initiated and completed on time without being in a rush.

 Negotiation Skills
During the eight months of internship period, the internee had to deal with different
types of customers, convince them to open an account and collect a good volume of
deposit from them; in such a process the internee developed negotiation skills in the
form of providing a minimum interest rate for their deposits. Since the internee can
give the highest interest rates in fixed and the savings account and attract customers

Bajracharya, 48
 but by convincing the customer and avail them of other facilities, she succeeded to
get a good volume of deposit at lower cost. Such negotiation skills and technique
shall help the internee for future growth.

 NRB Regulations
BFIs are regulated by the Central Bank i.e. NRB in Nepal. NRB issues different
circulars and guidelines from time to time to regulate the activities of BFIs.
Through internship, I gained knowledge about NRB Directives, its impact on
performance of banks, and the importance of understanding every component of
directives.

5.3 Recommendations

Civil Bank is a growing Commercial bank with 10 years of experience, established in

the year 2010. The eight week internship in Civil Bank provided me the opportunity to
explore the real working environment of the banking industry. It has helped to develop
new knowledge and enhance skill. During the internship, I felt the need for some
improvements in certain procedures and systems of the bank. Some of the
recommendations for the organization are as follows:

 It was found that many of the web portals/ websites are not accessible through the
internet of the bank as it is believed that if full access is given to staff, they might
misuse it in office hours or waste time on the internet. However, I would like to
recommend that full internet access with traceable mechanisms should be
implemented by the IT department of the bank so that day to day work of the staff
can become smooth and free from distraction.

 The CBS of the bank seems to be poor. The server frequently goes down which
impacts day to day operation of the bank especially teller’s work. Thus, I
recommend maintaining a strong IT team and system to regularly monitor the CBS
so that no interruption occurs.

 Proper training should be provided to branches regarding new products and services
as it was found that many staff are unaware of the actual benefit of the product
creating value to customers.

Bajracharya, 49
 The deposit report is circulated only within department heads and executives in
head office. It should be circulated to all of the branches so that they have
information regarding the deposit status of the bank.

 Most of the branch level staff are found less motivated to perform better. Different
kinds of incentive programs, campaigns should be organized time and again to keep
staff motivated.

 Newly joined staff should be provided adequate training of the CBS, work
procedure, daily tasks to be done, etc before deputing them to a particular branch or
department.

Bajracharya, 50
 REFERENCE

Aryal, M. (2020). Current Situation of the Banking Sector in Nepal 2020. Retrieved from:
https://ictframe.com/situation-of-banking-sector-nepal-2020/.

Civil Bank Limited (2021). Introduction of Civil Bank Limited. Retrieved From:
https://www.civilbank.com.np/about-us/about-civil-bank/introduction.

Civil Bank Limited (2021). CBL Annual Report. Kathmandu: Civil Bank Limited.

Civil Bank Limited (2021). Schedule of Interest Rate. Retrieved from:

https://www.civilbank.com.np/financial-information/schedule-of-interest-

Dictionary. (n.d.). Retrieved from dictionary.cambridge.org:

https://dictionary.cambridge.org/dictionary/english/internship.

Nepal Rastra Bank. (2017, April 23). Bank and Financial Institution Act. Kathmandu:
Nepal Rasta Bank.
Nepal Rastra Bank. (2020, September 13). NRB Unified Directive. Kathmandu: Nepal
Rastra bank.

Nepal Rastra Bank. (2021, June 8). Retrieved from NRB Mid report , Mid May 2021:
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Paudel, R.B., Baral, K.J., Gautam, R.R. & Rana, S.B. (2015). Financial Institutions &
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Shrestha, M., Bhandari, D. & Joshi, P. (2015). Foundation of Financial Institutions &
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Wikipedia. (n.d.). Retrieved from en.wikipedia.org:

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https://en.wikipedia.org/wiki/History_of_banking.

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