AN INTERNSHIP REPORT ON CUSTOMER SERVICE

DEPARTMENT OF NIC ASIA BANK LIMITED,

SURUNGA BRANCH

Submitted by

Sameekshya Prasai

TU Reg. No. 7-2-0221-2017

Exam Roll No. 19214/17

An Internship Report

Submitted to

Faculty of Management

Tribhuvan University

In the partial fulfilment of the requirement for the degree of

Bachelor of Business Administration

Mechi Multiple Campus

Bhadrapur, Jhapa

August, 2022
 Student's Declaration

Report on Customer Service Department of NIC ASIA Bank Limited, Surunga

Branch” under the guidance of “Mr. Rajesh Subedi” in the partial fulfilment of the

requirement This is to certify that I have completed the internship report entitled, “An

Internship for the degree of Bachelor of Business Administration at Faculty of

Management, Tribhuvan University. This is my original work and I have not

submitted it earlier elsewhere.

Date: August, 2022

Name: Sameekshya Prasai

ii
Certificate from organization

iii
 Certificate from the Supervisor

This is certify that the summer project entitled, “An Internship Report on Customer

Service Department of NIC ASIA Bank Limited, Surunga Branch” is an academic

work done by “Sameekshya Prasai” in the partial fulfilment of the requirements for

the degree of Bachelor of Business Administration at Faculty of Management,

Tribhuvan University under my guidance and supervision. To the best of my

knowledge, the information by her in the internship report has not been submitted

earlier.

___________________

Name: Rajesh Subedi

Designation: Lecturer

Date: August, 2022

iv
Certificate from BBA Department

v
 Acknowledgements

The research project entitled “AN INTERNSHIP REPORT ON CUSTOMER

SERVICE DEPARTMENT OF NIC ASIA BANK LIMITED SURUNGA

BRANCH” has been prepared to fulfil the partial requirement for the BBA degree of

Tribhuvan University. This report would not have been possible without the help and

dedication of few people to whom I must extend my sincere gratitude. So I would like

to extend my sincere gratitude to all those who have contributed directly and

indirectly to complete this report. I am grateful to my supervisor, Mr. Rajesh Subedi,

whose expertise, understanding, generous guidance and support made it possible for

me to work on a topic that was of great interest to me. It was really a pleasure working

with him. I am hugely indebted to Mr. Jivan Pokhrel, the campus chief of MMC and

Mr. Netra Prasad Nepal, director of BBA for the glorious opportunity of conducting

this research. Lastly, I am thankful to all my teachers, families and friends who

guided me all the time about this research.

August, 2022

Sameekshya Prasai

vi
 Table of Content

Student's Declaration......................................................................................................ii

Certificate from organization........................................................................................iii

Certificate from the Supervisor.....................................................................................iv

Certificate from BBA Department.................................................................................v

Acknowledgements.......................................................................................................vi

Table of Content...........................................................................................................vii

List of Table..................................................................................................................ix

List of Figure..................................................................................................................x

List of Abbreviation......................................................................................................xi

Chapter 1: Introduction...............................................................................................1

1.1 Background of the Study...................................................................................1

1.2 Objective of the Report.....................................................................................2

1.3 Methodology.....................................................................................................2

1.3.1 Organization selection............................................................................2

1.3.2 Placement................................................................................................3

1.3.3 Duration of internship.............................................................................3

1.3.4 Activities performed in the bank customer service department. ...........3

1.3.5 Sources of data........................................................................................4

1.4 Limitation of the Study.....................................................................................4

Chapter 2: Introduction to the Industry....................................................................5

2.1 Industry Analysis..............................................................................................5

Chapter 3: Introduction of the Organization............................................................8

3.1 Introduction of the Organization.......................................................................8

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 3.2 Product or services offered by NIC ASIA........................................................9

3.3 Capital Structure.............................................................................................14

3.4 Organizational Structure.................................................................................15

3.4.1 Organizational structure at branch level......................................................16

3.5 Departmental Function....................................................................................17

3.5.1 Credit department.................................................................................17

3.5.2 Operation department...........................................................................18

3.6 SWOT Analysis..............................................................................................20

Chapter 4: Analysis of Activities Done and Problem Solved.................................24

4.1 Analysis of Activities Done............................................................................24

4.2 Problem identified and solved.........................................................................28

4.3 Observed Gap..................................................................................................29

Chapter 5: Conclusion and Lesson Learnt..............................................................31

5.1 Conclusion......................................................................................................31

5.2 Lesson Learnt..................................................................................................32

5.3 Recommendation............................................................................................32

References...................................................................................................................34

viii
 List of Table

Table 1 Capital Structure of NIC ASIA Bank Limited........................................15

Table 2 SWOT Analysis………………………………………………………..21

ix
 List of Figure

Figure 1 Porter's Five Forces Framework…………….………………………………5

Figure 2 Organizational Structure of NIC ASIA Bank Limited…………………….16

Figure 3 Organizational Structure of NIC ASIA, Surunga Branch………………….17

x
 List of Abbreviation

ABBS Any Branch Banking Service

ATM Automated Teller Machine

CASBA C-Application Supported by Blocked Amount

CRN Customer Reference Number

CSD Customer Service Department

FY Fiscal Year

IPS Internal Payment System

KYC Know your Customer

MICR Magnetic Ink Character Recognition

NRB Nepal Rastra Bank

OI Operational In-charge

POS Point of Sale

SME Small and Medium Enterprise

SWOT Strength Weakness Opportunities Threats

xi
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Chapter 1: Introduction

1.1 Background of the Study

Bachelor in Business Administration (BBA) program is the undergraduate

level program of Tribhuvan University (T.U). It is a four year course with 120 credit

hours comprehensive bachelor degree program. It is further divided into eight

semesters (two semester in each year).It is mainly practical oriented which

emphasizes to provide student a practical knowledge. It aims to prepare students to

become competent, confident, skilled and socially responsive professional who can

effectively support managerial, entrepreneurial and leadership role in business and

social organization. It is student oriented course where students should be actively

participated. Its syllabus has been designed in such a way that it has tried to give

student knowledge from almost every field like psychology, sociology, business law,

Information Technology(IT) etc. It has got grade system of marking in GPA. Due to

this distinctiveness BBA program is getting popular among the students and is

becoming the first choice of every students of management field.

In the course study of BBA program students are required to do the internship

in their specialized field. Internship is simply the applied form of knowledge. It is

relatively short term in nature with the primary focus on getting some on the job

training and taking what’s learned in the classroom and applying it to the real world.

In the beginning of 7th semester students are provided an opportunity to choose one

special field for the purpose of specialization. Finally in 8th semester they have to

work minimum 8 weeks in that specialized field which is called internship. This is a

report on the Customer Service Department of NICASIA Bank as one of the leading

Commercial Bank of Nepal, as mentioned earlier, and since I had completed my

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internship from the Surunga, branch office all the details related to the Customer

Service is based on that branch.

1.2 Objective of the Report

The general objective of the study is to fulfil the requirement for the degree if

Bachelor in Business Administration. The major objective is to make the BBA student

relevant in the real world situation. Besides this, the specific objectives are as follows:

i. To examine the practical insights about the banking activities.

ii. To analyze the various activities done under Customer Service

1.3 Methodology

Completion of internship is a combination of the different types of activities.

It starts from the selection of the organization for the internship, performance of

different kinds of activities and placement in different parts of the organization and at

last collection of various primary and secondary data for the preparation of the report.

In terms of data collection both primary as well as secondary source had been used. In

case of primary source, observation and personal interview with the staffs are used

and in case of secondary source, the brochures, published reports and documents,

website of the bank and other related websites had been used. Following

methodologies are used to study the organization:

1.3.1 Organization selection. The most important and the initial part in the

internship program is the selection of the organization. It is the basis from which

interns get the platform to learn something and analyze the practical implication of the

theoretical aspects learnt in the academic session.

In this competitive market it is not an easy task to find intern in the reputed

organization. Campus provided recommendation letter which internee dropped in the

Human Resource Department (HRD) of NIC ASIA Bank along with the CV. There
 3

were other numerous applicants applying for their internship. So it was a tough job for

HRD Head to select few amongst all. There was regular follow up calls to the HRD

which revealed interest and enthusiasm to work in NIC ASIA. After a week internee

was informed that internee was selected and could start internship period. Finally,

internee joined the bank as an intern from March, 2022.

1.3.2 Placement. On April 18, 2022, internee was placed to NIC ASIA Bank,

Branch office to start her internship. There, the internee met branch manager and was

asked to meet Officer In charge and as per her order internee was placed in customer

service department for eight weeks under the supervision of CSD supervisor.

1.3.3 Duration of internship. The duration of internship period has been

defined for 8 weeks by Tribhuvan University, so as per the specified period, intern

worked NIC ASIA Bank Limited branch from April 18, 2022 to June 18, 2021.

Internee thought those eight weeks were really fruitful and it will definitely help in

upcoming days. It was the internship program that helps to internee to be familiar

with the organization culture, working environment and working procedure of the

NIC ASIA Bank.

1.3.4 Activities performed in the bank customer service department.

Activities that are performed in customer service department are,

i. Opening bank account of individual, firms and cooperatives.

ii. Issuance of cheque book.

iii. Account closing.

iv. Issuance of debit card.

v. Provide information about different products to the customers.

vi. Balance inquiry and other information about the bank service.

vii. Solve the queries of the customers.

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viii. Make and receive various calls from both inside and outside the bank.

ix. Maintain good relationship with the customers.

1.3.5 Sources of data. The following sources have been used to collect the

necessary data:

1.3.5.1 Primary source of data. The required information was collected

through the discussion and information provided by the officials of NIC ASIA Bank.

1.3.5.2 Secondary source of data. The secondary data was collected from the

secondary sources like: annual report, official website and other publication.

1.4 Limitation of the Study

Every field of study has some or the other limitations and so in the case of

internship report as well .There is some limitations that are faced at the time of my

report preparation and they are as follows:

i. The study is limited to only one financial institution.

ii. It does not give detail view of overall functioning of the bank.

iii. The study was limited only with Customer Service Department.

iv. Lack of adequate time with staff to guide intern.

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Chapter 2: Introduction to the Industry

2.1 Industry Analysis

An industry is a group of firms producing products that are close substitutes.

Industry analysis is a tool that many businesses use to assess the market. It is used by

market analysts, as well as by business owners, to figure out how

the industry dynamics work for the specific industry studied. Industry analysis helps

the analyst develop strong sense of what is going on in the industry.

The industry environment is the set of factors that directly influences a firm

and its competitive actions and competitive responses. According to Porter, an

industry environment is composed of the threat of new entrants, power of suppliers,

power of buyers, threat of product substitutes, and rivalry among competitors. The

interactions among these five factors determine an industry's potential that eventually

determines the strategic options of the firms. The five forces are also called porter's

diamond. Threat of substitutes

Bargaining Power of Suppliers Competitive Rivalry Bargaining Power of Customers

Threat of New Entrants

Figure 1. Porter's Five Forces Framework

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Threats of New Entrants. The threat of new entrants can be determined by

the entry barrier of the market. The competitive pressure on existing enterprise

increases with low barriers. In such a situation important elements of the market can

change due to the entry of new market participants. With so many new banks entering

in the market each year the threat of new entrant is extremely high. Ultimately the

barriers to entry are relatively low for the banking industry. While it is nearly

impossible for new banks to enter the industry offering trust and full range of services

as a major bank, it is fairly easy to open up a smaller bank operating on the regional

level rather than in national level.

Threats of substitutes. A threat of substitute product or services exists in

particular if cheaper or higher quality products and services are able to reduce existing

sales volume of a market or an enterprise. There are number of banks in the industry

at present which are offering wide variety of products and services. Due to this

reason, several factors such as close member relationship, customer loyalty, risk

taking attitude of the members etc. highly affect the banks and pose threats of

substitutes, potential of existing enterprises becomes limited and industry competition

increases. Some of the banking indstry’s largest threat of substitution are no from

rival banks but from non-financial competitors. If customer are dissatisfied with the

service delivered by the bank than they easily switch to the another bank as most of

the banks provides same services to the customers.

Bargaining power of suppliers. The bargaining power of suppliers in bank

is comparatively lower due to the presence of huge number of banks. One dissatisfied

member of a bank can be satisfied with other banks. Several factors such as

availability of huge number of service providers, variety in deposit and loan products,
 7

loan from other financial institutions, interest rates, etc. affects the bargaining power

of suppliers.

Bargaining power of customers. The bargaining power of the customers

largely affects the industry attractiveness. The bargaining power of customers is

comparatively high in banking industry due to the factors such as less customer

loyalty, low switching costs, huge variety of services offered by several financial

institutions, intense competition among co-operatives, multiple options, etc.

In banking industry, there are large numbers of banks offering similar types of

products and services, so the bargaining power of customer is quite high as compared

to other industries.

Competitive rivalry within an industry. Rivalry among the competitors is

high in the banking industry and the competition among them is very intense. The

factors affecting competitive rivalry are huge number of players in the industry with

similar strategies, less product differentiation, price competition, low market growth

rate, etc. Banks targets same customers with similar types of products and services,

and there exists competitive rivalry within a banking industry.

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Chapter 3: Introduction of the Organization

3.1 Introduction of the Organization

NIC ASIA Bank was established on 21st July, 1998. The bank was

rechristened as NIC ASIA Bank after the merger of NIC Bank with Bank of Asia

Nepal on 30th June 2013. This was a historic merger between two successful

commercial banks in the country. Today, NIC ASIA has established itself as one of

the most successful commercial banks in Nepal.

During the post-merger integration phase, NIC ASIA managed the transaction

very smoothly receiving accolades from the regulators as well as the stakeholders,

paying the way for the other mergers and consolidation in the Nepalese financial

sector. After the merger, NIC ASIA was recognized as "Bank of the year, 2013-

Nepal" by The banker, Financial Times, UK. This is the second time that the bank

was recognized with the prestigious award, the previous occasion being in 2007.

NIC ASIA bank is now, one of the largest private sectors commercial banks

the country in terms of capital base, balance-sheet size, number of branches, ATM

network and customer base. The Bank has 352 branches, 75 extension counters, 80

branch less banking and 471 ATMs across Nepal with a network covering all major

financial centres of the country. The bank strongly believes in Meritocracy,

Transparency, Professionalism, Team spirit and service excellence. These core values

are internalized by all the functions within the bank and are reflected in all actions the

bank takes during the course of its business. The bank is headed by Mr. Tulsi Ram

Agrawal as its chairman and Mr. Roshan Kumar Neupane as chief Executive officer.

Mr Neupane was appointed as CEO of the bank on 2 December 2018 with 4 years

tenure. Mr. Neupane is believed to be youngest CEO in Nepalese Commercial Banks.

 9

Vision

i. To evolve and position the bank as a progressive, cost effective and customer

friendly institution providing comprehensive financial and related services.

ii. To integrate the frontiers of technology and serving the various segments of

society.

iii. To be committed to excellence in corporate values.

Mission

i. To provide excellent professional service and improve its position as a leader

in the field of finance related services.

ii. To build and maintain a team of motivated and committed workforce with

high work ethos.

iii. To use the latest technology aimed at customer satisfaction and act as an

effective catalyst for socio-economic developments.

Objectives

i. To provide safe Deposit to the customers.

ii. To provide various type of Credit Facilities like Home, Education Loan etc.

iii. To develop lifelong relationship with clients and achieve profitability through

customer oriented service and customer satisfaction.

iv. To become the bank of first choice.

v. To bridge the gap between saver and borrowers efficiently and effectively.

vi. To provide the higher expected rate of return on investment.

3.2 Product or services offered by NIC ASIA

Various types of product and services provided by NIC ASIA Bank Limited can be

discussed as below.
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3.2.1 Deposits. Deposits are the major sources of fund in NIC ASIA. Deposit

is the amount placed by individuals and corporate groups in the bank for safekeeping

and is subject to withdrawal on the demand of the depositor or at the time of maturity

of stated period. Deposits are the major liability for any banks and in case of

liquidation, deposits are settled first and foremost. Deposits are facilitated through

variety of accounts and they are:

3.2.1.1 Fixed account. A fixed account requires the depositor to deposit a

fixed sum of money for a fixed period of time. A penal interest is charged in case of

withdrawal of fixed deposit prior maturity. The interest is paid on quarterly basis.

Fixed account can be opened by individuals, minors, clubs, societies, associations

and trusts.

3.2.1.2 Saving account. A saving account is an interest bearing account. In

NIC ASIA, interest is calculated on daily balance and credited to the account on

quarterly basis. The minimum balance for saving account depends on the nature of

saving account. Such balance is subject to any incidental charges that NIC ASIA

specifies during the period. To keep the records of savings and transactions as well as

to be updated with the status of the account, a passbook is provided to the depositor.

The types of saving account in NIC ASIA are:

i. New Premium Super Chamatkarik Bachat Khata

ii. New Premium Super Chamatkarik Jestha Nagarik Bachat Khata

iii. New Premium Super Chamatkarik Nari Bachat Khata

iv. New Premium Super Chamatkarik Babu Nani Bachat Khata

v. New Premium Super Chamatkarik Talab Bachat Khata

vi. New Premium Super Chamatkarik Bidhyarthi Bachat Khata

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vii. New Premium Super Chamatkarik Baideshik Rojgar Bachat Khata

viii. New Premium Super Chamatkarik Fixed Deposit

ix. New Premium Super Chamatkarik Sworojgar Bachat Khata

x. New Premium Super Chamatkarik Masik Nichhep Bachat Khata

xi. New Premium Super Chamatkarik Sahaj Bachat Khata

3.2.1.3 Current account. A current account is non-interest bearing account.

Only the corporate bodies can open a current account. It is especially designed for

corporate bodies that are indulged in frequent transactions. SBL provides the current

account holder with cheque book. A semi annual statement is sent to keep track of the

transactions carried out by the account holder. Additionally, the bank may provide the

statement daily, weekly or monthly as per the request made.

3.2.2 Loans and Advances. NIC ASIA provides wide range of loan products

for both individual and corporate. It is the major source for income earning of the

bank. Dome of the loan products are

3.2.2.1 Term loan. NIC ASIA bank term loan is a long term loan and is

generally available for acquiring or purchasing machinery, equipment, land and

building. The tenure of repayment of the loan is based on the project's duration and

the estimated/ existing cash flow.

3.2.2.2 Overdraft loan. NIC ASIA offers overdraft loan to finance your daily

working capital requirement and to support your stock build up.

3.2.2.3 Home loan. This loan is basically focused for those who dreams to

own their home. The interest rates are highly competitive. The interest rate ranges

from 8.50% to 13%.

3.2.2.4 Personal loan. Personal loan can be disbursed for social, personal,

business purposes. This flexible loan allows the borrower to fulfil all personal
 12

financial requirements. We offer loans in line with the clients' repayment capacity

and the usage of the loan.

3.2.2.5 SME Loan. NIC ASIA also provides loan to Small and Medium

Enterprise to various parties to support small and medium scale business. NIC ASIA

Bank Limited provides the facilities of other various loans to its customer. . They are

Export Finance Deprived Sector Loans, Loan Against Bank Guarantee, Loan against

shares, Consortium Loan, Demand Loan, Import Loan, Short Term Pledge Loan, Hire

Purchase, Loan Against Government Bonds, loan Against Fixed Deposits Of Other

Commercial Banks.

3.2.3 NIC ASIA Remit. It is an electronic online cash exchange result of the

bank intended to encourage exchange of assets by Nepalese exiles working/living in

remote nations and in addition for residential exchange of assets. NIC Remit transmit

is secured by method for VeriSign and computerized authentications mapped to every

client independently. It is quick, moderate and secure.

3.2.4 Locker. NIC Safe Deposit Locker is facility furnished to the individual

and institutional customers who prefer to safe deposit precious gems & jewelries and

important documents to evade the probability of increasing theft, burglary and fire.

The Safe Deposit Locker has been the first choice for the safest custody of the

valuable goods with flexibility of time to store and take away when required. The

Bank has varied sizes of Safe Deposit Locker to select from. Lockers facility can be

availed from selective Branches of the Bank.

3.2.5 Branchless banking. Branchless saving money is a practical channel for

conveying budgetary administrations without depending on the customary bank

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branches. Branchless managing an account gives essential keeping money benefits

through NIBL specialists having Bio-metric POS devices (with unique mark scanner).

3.2.6 Internet banking. Web based keeping money otherwise called web

saving money e-managing an account or virtual banking, E-saving money or virtual

saving money, is an electronic instalment framework that empowers clients of bank or

other monetary organization to lead a scope of budgetary exchanges through the

monetary institution’s site.

3.2.7 Mobile banking. Mobile banking is a service provided by a bank or

other financial institution that allows its customers to conduct a range of financial

transactions remotely using a mobile device such as a mobile phone or tablet, and

using software usually called an app, provided by the financial institutions for the

purpose. Mobile banking is usually available on 24 hour basis. Some financial

institutions have restrictions on which accounts may be accessed through mobile

banking as well as a limit on the amount that can be transacted.

3.2.8 Extension counter. There are no inflexible rules, but banks for the most

part open augmentation counters in spots like colleges, large government or private

foundations and so on with the end goal of conveying fundamental saving money

administrations at their doorstep, even however opening a branch may not be a

feasible proposition. Therefore, the expansion counters would by and large capacity

from littler premises and with less number of representatives, for rendering just

essential keeping money services. So, as a rule the accompanying administrations for

the most part would not be accessible.

3.2.9 NIC ASIA Branches and Networks. NIC ASIA bank is now, one of the

largest private sectors commercial banks the country in terms of capital base, balance-
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sheet size, number of branches, ATM network and customer base. The Bank has 352

branches, 75 extension counters, 80 branch less banking and 471 ATMs across Nepal

with a network covering all major financial centres of the country.

3.2.10 Debit Card. NIC ASIA Debit card is a plastic card which provides an

alternative payment method to cash when making purchase or cash withdrawal from

ATM centres. NIC ASIA Debit Card having maturity of eight years is a key to

ultimate convenience regarding day to day monetary transactions providing customers

the power of real cash in form of card. Associated with smart choice technology

(SCT), it facilitates wide sharing of ATMs under SCT network from more than 650

locations throughout Nepal. It has recently launched VISA Debit card to facilitate

customers.

3.3 Capital Structure

The Authorized Capital of the bank is Rupees 11 billion five hundred

seventy million. The Issued and Paid-up Capital of the bank is Rupees 11 billion five

hundred sixty four million five thousand three hundred and sixty six. The table

presented above shows that Authorized capital, Issued capital and Paid-up Capital for

the NIC ASIA Bank Limited as on Fiscal Year 2077/78.

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Table 1
Capital Structure of NIC ASIA Bank Limited
Authorized Capital 11,570,000,000

Issued Capital 11,564,005,366

Paid up Capital 11,564,005,366

Source: Annual Report of NIC ASIA 2078

3.4 Organizational Structure

Organization structure defines how job tasks are formally divided, grouped

and coordinated. Organization structure aims to proper coordination among the

various resource and technologies for the effective functioning of the organization. It

is the specified path through which the formal command of authority and

responsibility flows. The organization structure of overall NIC ASIA Bank Limited is

presented in the following diagram.

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Board of
Directors

Sampati Karmachar
Risk i Sewa Audit
Sudhikana
Managemen Suvida Committee
n Samiti
t Committee Samiti
CEO

Strategy, Strategy Transform

Tntegrated BPR and and ative Internal audit
Risk Think transformat Action Department
Management Tank ion Research
Department Ecosystem Ecosystem Ecosystem

Figure 2. Organizational Structure of NIC ASIA Bank Limited

3.4.1 Organizational structure at branch level

NIC ASIA has flat and horizontal organizational structure in different

department. Each plays an effective role in day to day operation and decision making

easy and effective. Each department is well planned so as to perform several

departments' works. Basically, there are two departments in NIC ASIA (Surunga

Branch) credit department and operation department. Within the operation

department, there are three sections such as teller (cash), customer service, remittance

and clearing. And within the credit department there are two department, loan
 17

department and recovery department. The bank's organizational structure is presented

in the following diagram.

Branch
Manager

Operational Credit
In-charge Administrator

Customer Loan Recovery

Teller(Cash) Remittance
Service Department Department

Figure 3. Organizational Structure of NIC ASIA, Surunga Branch

3.5 Departmental Function

There are all together two major departments in this branch office. They are: Credit

Department and Operation Department.

3.5.1 Credit department. Financial institution tends to be the leading actors

in the economic growth and prosperity of the nation. We generally find two types of

people in this world. They are savers and borrowers. Savers are people who have

enough surpluses but no productive ideas and borrowers are those with innovative

ideas but shortage of surplus. Financial institutions collect the scattered money from

the 1st type of people and lend to the 2nd types. In banking sectors credit department

have sole authority to perform the transfer of money from savers to borrowers. This

helps to meet the financial requirement for productive investment.

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The credit department is further divided into two parts:

3.5.1.1 Loan department. The principle reason banks are chartered by state

and federal authority is to make loans to their customers. And this bank does so by

granting loan to general public and to trading and industrial organizations against the

securities like shares, bonds, land and building, fixed assets and so forth. The credit

department is also responsible for maintaining the files in prescribed consumer’s

format in chronological order that must be updated periodically. Banks are expected

to support their local communities with an adequate supply of credit for all legitimate

business and consumer financial needs rates. NIC ASIA provides various types of

loans to its clients.

3.5.1.2 Recovery department. Bank grants loans and advances in various

heads and to various numbers of people. It is not always the case that everyone pays

their loan interest and clear their debt on time, in such situation recovery department

handles the account of such customers. It is the department regular phone calls are

made to the customers informing their due date to pay interest and if necessary visits

are made by the recovery staffs. In the worst case scenario letter is send to the

customer from the recovery department.

3.5.2 Operation department. Operation department, also known as Cash

department, handles all the activities relating to cash like receiving cash as deposits,

giving out cash after the loan has been sanctioned, issuing cash for all sort of

company’s expenses and payments, issuance of ATM Cards. This department is also

responsible for entering all the records of the company’s transaction. Despite serving

all the above mentioned functions, it still manages to provide prompt services keeping

customer’s satisfaction in mind, all paper works regarding deposit and loans are done
 19

on spot. So in general I can say that this department is the end point of all services,

handling all technical works except decision making. Operation department include

the following departments.

3.5.2.1 Teller. Teller department is one of the important and risky department

in the finance institution as the transaction are directly associated with real cash. In

this bank, there is one clerk to handle this department he serve one customer at a time

so as to reduce the chance of any default or errors while making transaction. The head

of this department is Operation In-charge. Before issuing any payment against cheque

the teller must concern with operation department. Cash department is all about cash

inflow and outflow. The tellers are responsible for the cash deposits and payments.

They make payment against cheques, withdrawal slip, manager cheque, draft and

other payable instrument by verifying the signatures of the concerned person or party.

Cash Department has other functions like sorting, counting cash properly and

bundling cash deposits according to demonstrations and currency. The important

function of cash department is to monitor cash position in view of issuance coverage,

maintaining cash transaction and register and verifying daily transaction list at the end

of the day.

3.5.2.2 Customer service department (CSD). It is one of the major

departments of every organization. This department is also known as the front office,

which is always concern with providing service to the customer. With the help of this

department, bank creates positive vibes for customers about their services as it is the

first place visited by the customers. This department focuses on giving quality

services to its customers in order to facilitate organization goodwill, image and

reputation. It deals with various services like account opening, account closing,

cheque book issue, balance inquiry, providing bank statement and bank balance
 20

certificate on customers request, etc. They directly deal with the customers, solving

different queries of the consumer and giving various information regarding account

opening, balance checking, issuing of cheque book and many more. The main

objective of this department is to serve the customers and provide them with

maximum satisfaction.

3.5.2.3 Remittance. In this department, the remitted money is provided to the

beneficiary person. People of Nepal working at different parts of the world can

transfer their saving amount to their family, friends etc. The major task of this

department is the verification of the customers for the both inward and outward

remittance and providing the customers with the facilities to transfer and payment of

transferred amount from other places.

3.6 SWOT Analysis

SWOT (strengths, weaknesses, opportunities, and threats) analysis is a

framework used to evaluate a company's competitive position and to develop strategic

planning. It is a strategic planning technique used to help a person or organization to

identify strengths, weakness, opportunities and threats related to business competition

or project planning. SWOT analysis assesses internal and external factors, as well as

current and future potential. The SWOT analysis of NIC ASIA Bank Limited can be

shown below.
 21

Table 2

SWOT Analysis

Strength Weakness

 Joint venture partner with Bank of  Limited employees.

Asia.  Break down of the system.

 Goodwill of the bank.  Insufficient marketing.

 Proper strategy, planning and  Unsystematic division of work.

preparation.

 Effective inter-departmental

communication.

Opportunities Threats

 Growing international trade.  Political instability.

 New investment Opportunities.  Changing customer preferences.

 Installation of updated  Intense competition.

technology.

Strength. Strengths arise due to the internal factors in the organization. They

are the attributes that give power to the organization. Being a joint venture with Bank

of Asia, NIC ASIA Bank Limited has access to greater resources as compared to other

banks in Nepal. They also possess more capital and more knowledge.

Goodwill of the bank can be regarded as its strength because goodwill creates brand

and brand attracts customers. Any bank with greater goodwill tends to survive in a

long run.
 22

NIC ASIA is better known for its proper strategy, planning and preparation. With the

proper implementation of its plans, policies and strategies, NIC ASIA is able to gain

large numbers of customers within a very short period of time.

Effective Inter-departmental communication can be kept as strength of NIC

ASIA as every department works together to obtain mission, vision, goals and

objectives of the bank.

Weakness. Weaknesses are the internal attributes that pose challenges and are

harmful to the company. One of the major weakness of NIC ASIA is that it does not

have the required numbers of staff to carry out the daily transactions smoothly. There

are no sufficient staffs to meet the requirements of the large number of customers.

The system of NIC ASIA breaks down time and again causing inefficiency in work

and customer dissatisfaction. The working procedure is way to long with slow system

which leads to incontinency in the work system.

NIC ASIA is focusing on increasing its customers, but it is not paying more

attention on marketing its product and services. Until and unless marketing is done in

strong phase, bank cannot achieve its desired results.

There is unsystematic division of work in NIC ASIA, which leads to

inefficiency in the work done and ultimately leads to the failure of the organization to

achieve its end results.

Opportunities. Opportunities refer to favourable external factors that could

give an organization a competitive advantage. One of the greatest opportunities for

NIC ASIA Bank is the growth of international trade. With the growth of globalization
 23

and international trade the bank and banking activities can flourish well as bank acts

as an intermediate and facilitator among various parties involved in the trade.

With the growth of investment opportunities, NIC ASIA can use its surplus

money to invest on various heads and earn maximum return from there to support its

other activities.

NIC ASIA can install the new and updated technology to bring efficiency and

effectiveness in its performance and provide their customers with maximum level of

satisfaction, and earn huge amount of from there.

Threats. Threats refer to factors that have the potential to harm an

organization. Political instability is regarded as one of the biggest threat for NIC

ASIA. It is so because with the change in government, the rules and regulations

regarding banks and financial institution also changes creating lots of problem to the

bank.

Customers are the main target of any banks. Change in customer preferences

possesses threats to NIC ASIA as today's loyal customers may not be loyal tomorrow.

They may choose another bank if they are not satisfied with the services provided by

the current bank. Customers are totally unpredictable.

Intense competition can be regarded as another threat to NIC ASIA. There is

high competition in the market to gain same customers by providing similar products

and services. It is the great challenge for NIC ASIA to survive in this competition.
 24

Chapter 4: Analysis of Activities Done and Problem Solved

4.1 Analysis of Activities Done

In a bank there are several departments each with their own functions. Every

department is equally important for operation of day to day activities. Having several

departments the intern was placed to CSD as per their requirement. CSD is the most

important department in the bank as customer first contact in this department for their

queries. NIC ASIA bank as pioneer in banking product and services is regarded as the

best in matter of customer services, to hold grievances and to answer customer queries

in a most effective manner. Every customer who visits bank don't come to open the

account at first, they want to know about the product and services offered by the bank.

During customer visits its CSD staff responsibility to tell, convince and encourage the

customer to buy their product and services by telling them about the product and

services and procedures that they have to follow to get the desirable product and

services. Many customers feel difficult to follow the lengthy procedure and they go in

search of alternative one and to stop from it, its CSD staff responsibility to make them

easy while availing their product and services. The success of any bank depends upon

how fast their customer service is and how CSD staff speak with customer. Today,

many banks have made the slogan serve and speak customer with smiley face and

make your customer happy. The primary objectives of CSD are to disseminate the

information, listen and handle customer grievances and build customer relationship.

The major activities performed at CSD are as follow.

4.1.1 Account opening. The intern was assigned to assist the CSD staff in the

process of account operation. Any types of account whether savings or current,

corporate or individual or joint account are opened. For opening different types of

account different types of document are needed which customer has to submit. In NIC
 25

ASIA bank for opening personal account, an account opening form is provided to

customer which he or she has to fill him/ herself, if s/he is uneducated CSD member

assist them to fill the forms. While opening account one should bring original

citizenship along with citizenship of the nominee with his/her two passport sized

photographs. Customers need not deposit any amount as ATM cards and mobile

banking are totally free for the first year of service. In account opening form one

should do same signature in every pages and in term and condition which s/he has

done specimen signature. After filling the form by customer CSD staff views the form

and enters it in the FINACLE and form is forwarded to manager or OI for approval.

4.1.2 Account closing. Account closing is another activity of CSD. For

closing account, account holder have to fill account closing form along with

application by requesting for closing all the services that s/he is using. S/he has to

return back the cheque book and debit card to bank. After application is received by

the bank, bank issues circular to its all department asking does accountholder has any

liability towards banks and not to perform any activities from all account from vary

day. On receiving no objection from all department account closing process starts and

branch request CPC to close the account.

4.1.3 Handling customer queries and calls. Customers are the main target of

any firm. Success of any firm depends upon how they handle their customer queries.

Customers of different age, sex, perception and from different background visit the

bank. All customers cannot be treated as one so handling customer is major function

of CSD staff. Sometime mystery customer also visits the bank and asks different

queries like of general customer for evaluating the staff performance and branch

performance. Mystery customer cannot be identified by the CSD staff as bank select

one customer or its staff and tell him/her to ask different queries. Likewise handing
 26

calls is another important task of CSD staff. Handling calls is the activities of

receiving and calling customers via telephone and transferring phone calls to the

respected departments. Handling telephone calls is to be performed by the staff of

customer service department in a polite, respectful manner and tactfully. Customer

may inquiry for balance and other queries.

4.1.4 Documentation and record keeping of the document. Documentation

and record keeping of different forms is another task at CSD. Documentation of

different forms like statement request forms, debit card request forms, cheques

request form etc is the task at CSD. Likewise record keeping of delivered debit card,

cheques book, withdrawal slip, locker visitor and record keeping of outgoing items is

another task. Documentation and record keeping should be done carefully as one

mistake on this can create a problem as there is no back up record for this. Outgoing

register should be maintained carefully as it has all record of send items and it works

as proof of send if concerned person doesn't receive goods.

4.1.5 Issuing and delivering cheque books and debit cards. Cheques are

issued after the request of customer. For issuing cheque FINACLE and MICR web is

used. Cheques are split through FINACLE by using different command like HACLI,

ICHB and in MICR there are two part checker and maker, checker checks the cheques

if it is 33 issued rightly or not and sends it to maker and maker prints the print. While

printing cheques if mistake is done then that cheques should be destroyed. Printed

cheques are then binding and entered in cheques book register. While delivering

cheque book account holder should be presented, in case if account holder cant

present in such case identification document is kept of person referred by account

holder and signature of receiver is kept in cheque requisition and in cheque book

register and delivered date is also written in cheque book register. Debit card are
 27

issued on request of account holder by taking certain charges as per bank rule. Cards

are sending by card division to respective branch from where it has been requested.

While delivering debit card account holder should present in bank. With debit card

pin are also issued which should be changed by customer when they use the card.

Card and pin are always sending on two person custody in branch because of its risk

and sensitivity.

4.1.6 Balance inquiry and bank statement dispatching. Customer visit bank

for inquiring the balance in his/ her account or in the account of person who have

issued the cheque so, that s/he can make confirmation of sufficient balance

availability for presenting the cheque. While telling the balance of account holder also

CSD staff makes confirmation is that real account holder or not by checking

signature, asking contact number, family details etc. Account holder sometime

requires bank statement also which is issued by the CSD staff. The bank statement is

provided of last six months only as per the rule of bank.

4.1.7 Providing different forms and information. Expect account opening

form different types of forms are provided to the customer. CASBA form is provided

for customer for CRN registration and ASBA form is provided to customer for filling

up initial public offering, right shares, mutual fund and other types of shares.

Meroshare form is provided to one who wants meroshare account. Internet banking

forms, NIC ASIA Smart forms, debit card, reissuance of pin, signature card and form

for signature change, locker opening forms, account activation from, Know Your

Customer (KYC) forms etc are provided through CSD. If person do not know how to

fill form CSD staff assists to fill the form.

4.1.8 Photocopy, scanning and updating the different form. In working

process photocopy of original document is necessary in different work of bank so

 28

CSD staff take copy of document him/herself. Scanning of document is another

important work in CSD. Various documents are scanned for backup purposes and to

mail in respective department. At first scanning of account opening document is also

necessary to upload it in WDMS. Later on CPC replaced this system. Scanning of

signature change document and KYC is also necessary to upload it in WDMS.

Signature card should not be folded as it affects the specimen signature.

4.1.9 Customer counselling. CSD is also known as help desk. So, customers

can ask anything related to the bank and its functions. Answers were provided to the

customers properly and politely. Information related to opening of an account, interest

rates, loan procedures, etc. were given to the customers.

4.1.10 Balance inquiry. The client sometime may need to know his/her

remaining balance in order to withdraw money urgently. So in this, the intern

provided the balance information.

4.2 Problem identified and solved

CSD and problems are not- detachable terms. One of the main functions of

CSD is to solve the problems. During the internship period, the following problems

were solved.

Problem-related to the change of rules and regulations. The rules related to

the operation of the banks, the interest rates, the charges are revised time to time to

cope with the dynamic environment but the customers don’t easily accept the change.

Hence the CSD staff should inform the customer about the change, its need and

relevance to the organization which is really a hard and tedious job to perform.

Problems related to the malfunctioning of the ATM machines. Another

problem that the CSD staff should face daily is to manage the angry customer who

had to face problems due to malfunctioning of the ATM machine. The CSD officer
 29

clarifies the actual scenario and apologizes if it is due to the fault of the machine

otherwise pointed out the fault of the customer.

Problems related to the mistakes due to the error in the system.

Sometimes due to various reasons, the customer’s account would be debited twice for

the same charge or something similar to this occurs. Also, sometimes the ATM

Machine doesn’t provide the cash but the account is debited. This and other these

kinds of system errors makes the customer dissatisfied and hence the dissatisfied

customer arrives at the CSD and this kind of problems are to be handled by the CSD

officer.

Problems related to the non functioning of various services. The CSD staff

should face difficult situation due to the malfunctioning of the SMS services as well

as the e-banking services. Customers do not know how to reset their device when they

forgot pin or password after requesting bank to reset it. So, CSD staffs have to solve

that problem by seeing the device themselves or by telling to the concerned

department.

Problems related to incomplete documents provided by the customers.

Documents were incomplete for various transactions, intern had to inform the

customers and ask them to present the complete documents. For instance, intern had

to inform the customers to bring the missing documents while they request to open an

account and perform the transactions.

4.3 Observed Gap

During 8 weeks of internship in NIC ASIA Bank Limited Internee has

experienced what real working environment looks like and how banking related

transactions are occurred in bank. Moreover Internee found various differences and
 30

gap during intern period which changed my previous perception on working in real

field.

Internee found a major gap between my theoretical knowledge and practical

knowledge. What Internee was taught in my classroom from course book only

matched 50% of content at real working environment. The systems and procedures for

various banking products and services were not exactly similar to the content of the

course book.

Internee was not treated similar to staffs and was not included at various

decision making procedure. Internee was not authorized and taught about the various

important departments documentation such as loan and credit department and was

only provided minor paper works mostly as a assistance to the permanent staffs.

At bank there was difference between customers’ expectation and their

experiences. Customers wanted to gain multiple of services easily from bank but the

customers need to go through various procedures for simple tasks also. Internee found

those procedures time consuming and unsystematic which made the customers to wait

for long time for a single work. Customers were not getting the exact services as

promised, sometimes there would be problems of ATM’s, and sometimes they had to

wait a long hour due to software crash and system busyness.

Internee did not find that bank is not adopting new technology at its place.

KYC system was introduced not long ago. There is frequent crash of software which

caused poor delivery of service.

 31

Chapter 5: Conclusion and Lesson Learnt

5.1 Conclusion

Commercial Bank in Nepal could be viable only if they could provide

maximum qualitative services to the customer of the bank who is the main source of

income for the banks. Without the customer no bank can fulfil its objectives. To

maintain the standard of the bank it should always look for measure to adapt to

changes to a better level.

This report has been prepared as the partial fulfilment of eighth semester of BBA

under TU. NIC bank limited proved to be a strong mainstay for building up

professional career. The internship gave the perfect opening to plant my acquaintance

in the appropriate field. It helped internee to apply the year’s long theoretical lessons

into practical area. Further, in past 8 weeks, internee learned to work under pressure

and broadened my knowledge, vision, ability and confidence to perform in real

working upbringing. It was a great chance to gain practical knowledge of banking

sector. Beside this, the supervisors were extremely helpful in guiding on our

internship program.

It was the great experience working as an intern in NIC ASIA bank limited.

The operational environment was friendly. There was good communication and

healthy relationship in between the different levels of staffs. The internee was able to

find out various services offered and facilities provided by NIC ASIA bank limited.

Working as an intern mainly provided us an opportunity to learn about practical

implication in our career building hence it is a significant platform for our future

career.
 32

5.2 Lesson Learnt

“Practice makes a human practical and perfect”. The eight weeks internship period in

NIC ASIA has taught internee many lessons. Internee have learnt different skill and

obtained a variety of knowledge during the internship period.

Internee learned to tackle various problems and issues by communicating with

customers and staffs at working environment and developed the interpersonal skill

and communicational skill as well. Internee had also learned about the corporate

culture of the organization including punctuality, togetherness, discipline and work

ethics. Internee learned a lot about time management and its importance in life.

Internee adapted to new environment and learned to be positive and motivated by

controlling own attitudes and beliefs.

Internee had developed technical skills by learning how to operate printer,

scanner and photocopy machines. Internee had also learned to prepare and issue

cheque books and activate the debit card. Internee got familiar with different types of

stamps and learned where they are used and for what purpose. In the same way,

Internee got chance to use the FINACLE software and learn about the system of NIC

ASIA bank.

Throughout the internship period internee learnt to use theoretical knowledge

in the practical business world. Hence, internship in NIC ASIA not only gives an

insight to learn about how the bank performs interbank transactions in Nepal, but also

boosts the future prospects in the banking sector as well.

5.3 Recommendation

During 8 weeks of internship, intern experienced banking sector from close

eye. Working with on the job employee tended to be great practical learning for the
 33

intern. Based on the analysis and finding of the study, the following recommendations

can be made as suggestions to make financial performance of the NIC ASIA effective

and efficient.

It is observed that the employees were over burdened of heavy workload. So

they have to stay at office till late at night. Though they are remunerated their

efficiency is affected. Proper time management or hiring more employees can reduce

their work. All the staffs should be properly trained in the use of banking service.

Customer counselling facility is lacked by NIC ASIA bank. Employee of the

bank does not have enough time to concern about services to customers. Due to which

bank loses existing customer. So there should be availability of counselling

department as well. A customer must be kept at the first priority and they should be

given more attention and complaints of the customer should be properly responded.

NIC ASIA should try to increase their profitability by investing in more profitable

sectors, and by increasing the quality of their extended credits. They should have to

investigate thoroughly the wide range of investment opportunities in the market in

order to improve their profitability situation.

Future ahead, NIC ASIA should improve its weaknesses by adopting the

innovative approach to marketing. In the light of growing competition in the banking

sector, the business of the bank should be customer oriented. It should strengthen and

activate its marketing function as it is an effective tool to attract and retain the

customers. For the purpose, the bank should develop an innovative approach to bank

marketing and formulate new strategies of serving customers in a more convenient

and satisfactory way by optimally utilizing the modern technology and offering new

facilities.
 34

References

Crowther, G. (1941). An Outline of Money

Manandar, K.D & Pokhrel, S.B, (2012). Marketing Financial Services. Kathmandu:

Buddha Publication.

Thapa, K & D.K., Nepuane (2010). Banking & Insurance, Kathmandu: Asmita

Publication.

Thapa, Kiran (2069). Financial Institutions & Markets, Kathmandu: Asmita

Publicatione

Tiwari, Saroj (2009). Evolution of Banking Sector in Nepal. Retrieved August 23, 2016,

from http://sarojtiwari.blogspot.com/2009/09/evolution-of-bankingsector-in-nepal

Websites visited

https://www.nicasiabank.com/reports

https://www.newbusinessage.com/Articles/view/1222

https://www.investopaper.com/news/financial-access-in-nepal/