A STUDY ON THE ROLE OF CUSTOMER SERVICE

DEPARTMENT AT NABIL BANK LIMITED

AN INTERNSHIP REPORT

Submitted To:

Office of Dean

Faculty of Business and Accounting

Lincoln University College, Malaysia

Submitted By:

Mausham Timsina

LUC Registration No.: LC00022000400

Balmiki Lincoln College

in the partial fulfillment of the requirement for the degree of

Bachelor of Business Administration (BBA)

Jhapa, Nepal

May 2025
CERTIFICATE FROM THE INDUSTRY

II
LETTER FROM THE COLLEGE

III
 RECOMMENDATION LETTER

This is to certify that Graduation Internship Report

Submitted by:

MAUSHAM TIMSINA

Balmiki Lincoln College, Birtamode

LUC. Regd. No. LC00022000400

Entitled

“A STUDY ON THE ROLE OF CUSTOMER SERVICE DEPARTMENT AT NABIL

BANK LIMITED”

has been prepared as approved by this program in the prescribed format of the Faculty of
Business and Accountancy, Lincoln University College. This internship project report is
forwarded for examination.

_______________________

Supervisor

Mr. Nilam Sangroula

IV
 CERTIFICATE OF APPROVAL FROM COLLEGE

We, the undersigned, certify that we have read and hereby recommend for acceptance by the
Balmiki Lincoln College, Lincoln University College, an internship report submitted by
Mausham Timsina entitled “A STUDY ON THE ROLE OF CUSTOMER SERVICE
DEPARTMENT AT NABIL BANK LIMITED” in partial fulfilment of the requirements of
the award of the degree of Bachelor in Business Administration of Lincoln University
College.

………………………………….

Supervisor

Mr. NILAM SANGROULA

…………………………………..

External Examiner

Mr. __________________________

……………………………………..

Director, Balmiki Lincoln College

Mr. KISHOR BASNET

V
 LETTER OF DECLARATION

I hereby declare that the internship report entitled, “A STUDY ON THE ROLE OF
CUSTOMER SERVICE DEPARTMENT AT NABIL BANK LIMITED” submitted to
the Faculty of Business and Accountancy, Lincoln University, is an original work of
internship under the supervision of Mr. Nilam Sangroula, faculty member of Balmiki Lincoln
College, Birtamode and is submitted in partial fulfilment of the requirements for the award of
the degree of Bachelor of Business Administration (BBA).

……………………………………..

Mausham Timsina

VI
 ACKNOWLEDGEMENTS

The report titled ‘A STUDY ON THE ROLE OF CUSTOMER SERVICE DEPARTMENT

AT NABIL BANK LIMITED’ is prepared for the partial fulfillment of the requirement for
the degree of Bachelor of Business Administration provided by Lincoln University, based on
the functions and activities carried out and experienced during the internship period. I would
like to express my sincerest gratitude to Lincoln University, for enabling me to have such a
great opportunity to foster my educational knowledge and develop my practical work-settings
skills.

First and foremost, I would like to express my sincere thanks to my supervisor, Mr. Neelam
Sangroula, for the guidance, continuous encouragement and feedback. Secondly, I am
extremely grateful to the program director, Mr. Kishor Basnet, and the college management
for providing assistance and other required documents during my internship period. I would
also like to express my sincere appreciation to the Branch Manager at Surunga Branch Mrs.
Archana Dahal, Operation In-charge, Mrs Anu Karki and the CSD Head Ms. Anisha Adhikari
for their proper guidance and continuous support to help me learn.

Mausham Timsina,

LC00022000400

VII
 TABLE OF CONTENTS

CERTIFICATE FROM THE INDUSTRY .......................................................................... II

LETTER FROM THE COLLEGE ..................................................................................... III

RECOMMENDATION LETTER....................................................................................... IV

CERTIFICATE OF APPROVAL FROM COLLEGE ....................................................... V

LETTER OF DECLARATION ........................................................................................... VI

ACKNOWLEDGEMENTS ................................................................................................ VII

TABLE OF CONTENTS .................................................................................................. VIII

ABBREVIATION .............................................................................................................. XIII

TABLE OF FIGURES ............................................ERROR! BOOKMARK NOT DEFINED.

EXECUTIVE SUMMARY ................................................................................................XVI

1. INTRODUCTION............................................................................................................ 2

1.1 BACKGROUND ............................................................................................................. 2

1.2 OBJECTIVES OF INTERNSHIP ........................................................................................ 3

1.3 METHODOLOGY .......................................................................................................... 4

1.3.1 Sources of Data ...................................................................................................... 4

1.3.2 Organization selection ........................................................................................... 4

1.3.3 Placement ............................................................................................................... 5

1.3.4 Duration ................................................................................................................. 5

1.3.5 Activities ................................................................................................................. 5

1.4 LIMITATIONS OF INTERNSHIP ...................................................................................... 6

2. BRIEF INTRODUCTION OF THE INDUSTRY ........................................................ 8

2.1 MEANING AND DEFINITION OF BANK .......................................................................... 8

2.2 HISTORICAL DEVELOPMENT OF BANKS ...................................................................... 9

VIII
 2.2.1 Ancient Origins of Banking .................................................................................... 9

2.2.2 Medieval Banking and the Emergence of Merchant Banks ................................... 9

2.2.3 Early Modern Banking and Central Banks .......................................................... 10

2.2.4 Modern Banking and Globalization..................................................................... 11

2.3 HISTORY OF BANKING IN NEPAL ............................................................................... 11

2.3.1 First Phase: Before 1993 B.S. (Pre-1936 A.D.) .................................................. 12

2.3.2 Second Phase: 1994 B.S. to 2012 B.S. (1937–1955 A.D.) ................................... 12

2.3.3 Phase Three: 2013 B.S. to 2058 B.S. (1956-2002 A.D.) ...................................... 13

2.3.4 Fourth Phase: 2058 B.S. to Present (2002 A.D. Onward) .................................. 14

2.3.5 Market Trends and Developments ....................................................................... 14

2.3.6 Major Players and Competitors........................................................................... 15

2.4 TYPES OF BANKS IN NEPAL ....................................................................................... 16

2.5 INTRODUCTION TO COMMERCIAL BANKS ................................................................. 17

2.5.1 Functions of commercial bank ............................................................................. 17

2.6 PESTLE ANALYSIS OF BANKING SECTOR IN NEPAL ................................................ 18

2.6.1 Political Factors .................................................................................................. 18

2.6.2 Economic Factors ................................................................................................ 19

2.6.3 Social Factors ...................................................................................................... 19

2.6.4 Technological Factors ......................................................................................... 20

2.6.5 Legal Factors ....................................................................................................... 21

2.6.6 Environmental Factors ........................................................................................ 21

3. BRIEF INTRODUCTION TO THE INDUSTRY ...................................................... 24

3.1 INTRODUCTION TO NABIL BANK ............................................................................... 24

3.2 VISION AND MISSION ................................................................................................ 24

IX
3.3 CORE VALUES ........................................................................................................... 25

3.4 ORGANIZATIONAL STRUCTURE ................................................................................. 26

3.5 PRODUCTS AND SERVICES ......................................................................................... 26

3.5.1 Deposit ................................................................................................................. 27

3.5.1.1 Saving account deposits ............................................................................... 27

3.5.1.2 Current account deposit ............................................................................... 28

3.5.1.3 Fixed Account .............................................................................................. 28

3.5.1.4 Call deposit .................................................................................................. 28

3.5.1.5 Locker facility .............................................................................................. 29

3.5.2 Bancassurance ..................................................................................................... 29

3.5.3 Lending services................................................................................................... 29

3.5.4 Debit cards and Credit Cards .............................................................................. 30

3.5.5 Remittance Services ............................................................................................. 30

3.5.6 Miscellaneous products and services................................................................... 31

3.5.6.1 Any Branch Banking Services ..................................................................... 31

3.5.6.2 Online account opening ............................................................................... 31

3.5.7 Financial Status Report of Nabil Bank Limited ................................................... 31

3.5.7.1 Financial Position......................................................................................... 31

3.5.7.2 Profitability and Income Performance ......................................................... 32

3.5.7.3 Capital Adequacy and Risk Management .................................................... 32

3.6 SWOT ANALYSIS OF NABIL BANK, SURUNGA BRANCH ........................................... 33

3.6.1 Strengths .............................................................................................................. 33

3.6.2 Weaknesses .......................................................................................................... 33

3.6.3 Opportunities ....................................................................................................... 33

X
 3.6.4 Threats ................................................................................................................. 33

4. ANALYSIS OF ACTIVITIES DONE.......................................................................... 35

4.1 BACKGROUND ........................................................................................................... 35

4.2 ROLE OF THE INTERN................................................................................................. 35

4.2.1 Account Management........................................................................................... 35

4.2.2 Account closing .................................................................................................... 36

4.2.3 Attending customer queries and calls .................................................................. 36

4.2.4 Documentation and filing .................................................................................... 37

4.2.5 Issuing cheque books and debit cards ................................................................. 37

4.2.6 Balance Inquiry and Issuance of Bank Statement................................................ 37

4.2.7 Photocopying and scanning documents ............................................................... 38

4.2.8 Preparing debit cards and cheque books exhibit ................................................. 38

4.3 FITTING IN THE ORGANIZATION STRUCTURE.............................................................. 38

4.4 EXPERIENCES IN THE INTERNSHIP INCLUDING UNDERSTANDING OF SYSTEM,

PROCESSES AND RATIONALE.................................................................................................. 39

4.4.1 Comprehending the system .................................................................................. 39

4.4.2 Processes of the banking ...................................................................................... 39

4.4.3 Rationale .............................................................................................................. 40

4.5 ISSUES ENCOUNTERED AND MEASURES TO SOLVE THESE PROBLEMS ......................... 40

4.5.1 Changing rules and regulations........................................................................... 41

4.5.2 Issues due to ATMs malfunctioning ..................................................................... 41

4.5.3 System malfunctioning or non-functioning .......................................................... 41

4.6 OBSERVED GAPS ....................................................................................................... 41

4.6.1 Limited system access to interns .......................................................................... 42

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 4.6.2 ATM and service non-functioning issues ............................................................. 42

4.6.3 Short duration of internship ................................................................................. 42

4.6.4 Limited tasks assigned ......................................................................................... 42

5. CONCLUSION .............................................................................................................. 44

5.1 INFERENCES DRAWN ................................................................................................. 44

5.2 OVERALL EXPERIENCES ............................................................................................ 44

5.3 LEARNING AND KNOWLEDGE LEARNT ....................................................................... 45

5.3.1 Punctuality ........................................................................................................... 45

5.3.2 Accountability and Responsibility........................................................................ 46

5.3.3 Standards rules and regulations in banking ........................................................ 46

5.3.4 Customer-centered strategy ................................................................................. 46

5.3.5 Team work ............................................................................................................ 46

5.4 CONCLUSION............................................................................................................. 46

BIBLIOGRAPHY .................................................................................................................. 48

ANNEXURE ........................................................................................................................... 50

ANNEXURE I: INTERNSHIP TOPIC PERFORMA ........................................................................ 50

ANNEXURE II: FORTNIGHTLY PROGRESS REPORT ................................................................. 51

ANNEXURE III: FORTNIGHTLY PROGRESS REPORT ............................................................... 52

ANNEXURE IV: FORTNIGHTLY PROGRESS REPORT ............................................................... 53

ANNEXURE V: FORTNIGHTLY PROGRESS REPORT................................................................. 54

XII
 TABLE OF FIGURES

Table 2.1. Types of banks and the minimum paid up capital with their numbers…………...16

Table 3.1. Board Members of Nabil Bank Limited…………………………………………..26

Table 3.2. Interest rate of Saving Account…………………………………………………...27

Table 4.1. Organization Hierarchy of Nabil Bank Limited, Surunga Branch………………..38

XIII
 ABBREVIATION

AD Anno Domini

AOF Account Opening Form

ABBS Any Branch Banking Service

AML Anti Money Laundering

ATM Automated Teller Machine

BAFIA Banking and Financial Institutions Act

BBA Bachelor of Business Administration

BC Before Christ

BCE Before Common Era

BOD Board of Directors

BS Bikram Sambar

COVID Corona Virus Disease

CPC Central Processing Centre

CSD Customer Service Department

GDP Gross Domestic Product

IMF International Monetary Fund

KYC Know Your Customer

KYCMS Know Your Customer Management System

LUCAN Lincoln University College Association of Nepal

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NPR Nepalese Rupee

NPL Non-Performing Loan

NRB Nepal Rastra Bank

QR Quick Response

SME Small and Medium-Sized Enterprises

SMS Short Message Service

SWIFT Society for Worldwide Interbank Financial

Telecommunications

SWOT Strength, Weakness, Opportunities and Threat

UAE United Arab Emirates

WDMS Web Based Data Management System

XV
 EXECUTIVE SUMMARY

This report is produced related to internship at Nabil Bank Limited about operational
dynamics and the significant role of the Customer Service Department (CSD) in the Surunga
Branch. This was the first joint venture bank established in Nepal in 1984. This internship
was implemented as a part of the BBA Program between November 14, 2024, and January
14, 2025. The main purpose of this work is to bridge the gap that exists between theoretical
expertise and practical application with more focused insight into the structure of the CSD,
service delivery, and how it contributes toward the achievement of organizational goals.

Background and Objectives: Nabil Bank is one of the customer-centric banks, and it is
identified with innovative banking solutions. Because of this, the working motto has been
"Together Ahead," with core values in CRISP -Customer Focused, Result Oriented,
Innovative, Synergistic, Professionalism. Internship objectives were for students to grasp the
operative environment of CSD, hone interaction with the customer, understand the product
basket of Nabil, help in the digital banking adoption, if possible, and also identify areas for
service improvement from the customer feedback. This service point deals with customer
complaints and inquires while managing their accounts and access to the services that are
delivered, and therefore is a point in the front line in building the image and operation
efficiency of the bank.

Methodology: This study took a descriptive research approach through the mixed methods
used in the data collection process. The data was mostly primary in nature, collected through
direct interaction with customers, observations from workflows, and interviewing staff
members and official website reports. Data collected was also majorly secondary, mostly
coming from official reports and websites of Nabil Bank and industry-related publications.
The intern was placed in the CSD under the supervision of Ms. Anisha Adhikari and involved
in activities, including account opening and closing processes, KYC up-dation, dispatching
checkbooks, and debit card issuance, along with addressing issues and queries from
customers in an eight weeks long period.

Key Activities and Findings: These involve account operations, documentation for customer
queries, and issues related to banking instruments. Banking operations mainly involve getting
the inside of Nabil Investments and KYCMS systems, programmed to comply with
XVI
regulations set forward for KYC and AML requirements. The functioning of the CSD in
reducing complexities and ensuring customers had faith and trust in them was quite clear,
though the interns had to cope with problems such as no system access, frequent breakdowns
in ATMs, and changes in regulatory compliances.

While an SWOT analysis of the Surunga Branch has revealed that Nabil has a good
reputation, and that they have implemented state-of-the-art technology, it is identified that the
bank has a small customer base as its main weakness. It was also analyzed that rural
expansion is possible; although this brings competitive and regulatory pressure.

Industry Context: Since a long time back, the banking sector of Nepal has been regulated by
the central bank of the country, the Nepal Rastra Bank. It has gone through different stages,
from its inception with Nepal Bank Limited in 1937 and subsequent establishment of Nabil
Bank in 1984. The sector is quite pressurized with high non-performing loans and still
remains mostly urban-centric at large. However, the country is moving to pursue digitization
and reforms in the regulatory framework. PESTLE analysis identified some critical factors
affecting bank operations by political instability, economic constraints, and technological
development.

Internship: The internship provided practical exposure to the operations of a bank and
improved understanding regarding customer relationship management, teamwork, and
compliance. There are the most crucial points—in my opinion—that I have come to learn
from the experience: that is an understanding of punctuality, accounting, application of
customer-customer centric strategies, and most importantly, adhering to bank regulations.

Experiences and Learnings: The internship offered practical insights to banking processes,
enhancing understanding of customer relationship management, teamwork, and compliance.
Key learnings included the importance of punctuality, accountability, customer-centric
strategies, and adherence to banking regulations. However, gaps such as restricted system
access, short internship duration, and repetitive tasks limited deeper engagement with
complex banking functions like loan processing.

Conclusion and Recommendations: The internship underscored the CSD’s integral role in
driving customer satisfaction and operational efficiency at Nabil Bank. The experience

XVII
refined academic concepts while cultivating essential soft skills like communication and
problem-solving. To enhance future internships, Nabil Bank could extend internship
durations, provide broader task exposure, and improve system access for interns while
addressing technological reliability issues. This study establishes Nabil Bank’s commitment
to excellence and its pivotal role in shaping Nepal’s financial landscape, equipping the intern
with valuable skills for a professional banking career.

XVIII
 1

CHAPTER ONE
 2

1. INTRODUCTION
1.1 Background

Lincoln University College Association of Nepal (LUCAN), one of the pioneer

academic institutions in Nepal, is a joint body of educational institutions affiliated to
the Lincoln University in Malaysia. Since 2013, LUCAN has been offering
undergraduate programmes and postgraduate programmes in the faculties of
management, hotel management, computer science, and information technology with
the objective of enabling students to pursue professional domains in various fields
such as business, industries, government and more.

The Lincoln University aims to boost the business and industry by creating skilled,
creative and capable professionals offering academic as well as practical based
knowledge. Preparing students who are capable in running business operations,
encouraging entrepreneurship, fostering innovation and creativity, emphasizing
research and development and enabling effective problem-solving skills to tailor to
the social, economic and technological dimensions of the nation. According to
Lincoln University (n.d.), its main mission is to lead towards quality education for
the personal and professional development of an individual. LUC has always been
dedicated to the promotion of academic excellence, and this is evidenced by the fact
that this has been followed through with top faculty and strategic staff who have
held the baby in efforts to embrace many-cultured diversity. This goes with the
promotion of values that are somehow humane, professional, and crucially soft-
skilled in communication, leadership, and problem-solving. Needless to say, the
institution places a strong emphasis on student satisfaction through the provision of
an ideal learning environment. Further, it gives life-widening learning opportunities
through continuous academic development available to the world at large. LUC is
distinctive in its mission to develop not just professionals but whole graduates with
the right turn of managerial and entrepreneurial skills so apt in today's highly
competitive, techno-savvy world.

To foster in the professional field, it is necessary to gain relevant skills and

background knowledge via academic sources as well as practical experience. A
degree helps in achieving academic excellence and theoretical knowledge of how
 3

things are performed and the modus operandi of an organization. Considering this, it
enables the student to gain practical experiences, relevant skills, and real-world
observation via an internship. According to the National Association of Colleges and
Employers (n.d.),

“An internship is a form of experiential learning that integrates knowledge and

theory learned in the classroom with practical application and skills development in
a professional setting. Internships give students the opportunity to gain valuable
applied experience and make connections in professional fields they are considering
for career paths; and give employers the opportunity to guide and evaluate talent.”

Hence, internship is extremely significant for students seeking real world work
experience. Considering the requirements of the coursework and aiming to gain
practical experience and real-world insights, the intern of this report opts to work
with the first venture bank of Nepal, Nabil Bank. As the prospects of the service
industry in Nepal are booming, the intern prioritized working in this sector,
especially the banking sector. Hence, this internship report is based on the internship
done in the Nabil Bank Surunga Branch. The report explores the experiences and
learnings of the intern placed at the Customer Service Department (CSD) at Surunga
Branch.

1.2 Objectives of Internship

The internship allows students to practically explore theoretical insights gained in

the academic institutions. With its primary intention being facilitating students to
apply their academic knowledge in the real-world work setting, it aims to teach
students about the functioning of the organization, organizational structure, chain of
command, organizational behavior, and culture, along with the risks and
complexities it needs to address to streamline operations and ensure organizational
effectiveness and efficiency. Moreover, the objectives of internship include:

• To understand the customer service department's structure, procedures, and

service delivery systems.
• To develop practical skills in handling diverse customer interactions, from basic
inquiries to complex complaint resolution.
 4

• To guide customers through digital banking adoption, including onboarding and

troubleshooting.
• To master knowledge of Nabil Bank's complete product and service portfolio.
• To contribute to service improvement by gathering customer feedback and
proposing practical solutions.

1.3 Methodology

This internship report employs a descriptive research methodology that encompasses

multiple data collection approaches to develop all-around understanding and analysis
of Nabil Bank’s Surunga Branch operations within the Customer Service
Department. The study follows a systematic approach beginning with organization
selection, placement in the functional unit of the bank, the tenure of the internship,
activities performed within the tenure as well as the limitations witnessed regarding
the internship.

1.3.1 Sources of Data

To facilitate report writing, the data collection method includes mixed approach of
primary and secondary sources of data.

Primary Data

The primary sources include observations of routine operational workflows,

direct interactions with the customers, structured and informal interviews with
the bank staff across hierarchical levels, and first-hand operational experience.

Secondary Data

Secondary sources of data such as Nabil Bank’s annual reports, official

brochures, and the official website of the bank along with industry
publications and banking journals are used.

1.3.2 Organization selection

As a final semester BBA student specializing in finance, selecting the right

organizations for internship is critical to leverage the academic knowledge and gain
 5

practical industry exposure. The complex operations and central role banks play in
the economy have raised my interest towards the banking sector and narrowed down
my primary focus for internship placement. Upon evaluation of multiple factors, I
chose Nabil Bank for the internship for its pioneering status as Nepal’s first joint
venture bank and its commitment for excellence and professional development.
Following the due procedures, an application requesting for internship position, the
recommendation letter provided by the college, a copy of citizenship, CV, and other
academic certificates were submitted to the Surunga Branch of the bank. After
screening of documents by the Human Resources Department, an appointment letter
was provided to assign the internship at the CSD of Surunga Branch. The internship
period begins from 14th November and ends on 14th January, 2025.

1.3.3 Placement

Beginning on 14th November, 2024, the Operation In-Charge placed the intern at the
CSD under the supervision of CSD Head, Ms Anisha Adhikari. The activities and
responsibilities were supervised by the CSD Head. The responsibilities include
assisting customer queries and handling routine tasks. I learned essential banking
procedures including account opening, KYC documentation, balance inquiries,
cheque book and debit cards issuance, etc. The cooperative nature of the
organization enabled me to learn technical as well as interpersonal skills which are
significant for professional and personal development.

1.3.4 Duration

The duration of the internship defined by the university must be more than 45
working days or 8 weeks. The working hours began from 9:30 am to 5:30 pm, while
it began from 9:30 am to 1:30 pm.

1.3.5 Activities

During the internship period, there were multiple activities performed by the intern.
Such activities include attending to customer queries and issues. The main aim was
to address the customer’s issues and assist them in filing forms, maintaining
standards procedures of account creation, etc. The bank has provided limited access
 6

to its system. Hence, the activities of the intern revolved around clerical tasks. These
activities include:

a. Account onboarding and other necessary documents.

b. Demat account creation.
c. Updating KYC information in its system.
d. Scanning required documents.
e. Attending customer queries and handling calls.
f. Preparing cheque and ATM card logs.
g. Issuing cheque books and debit cards.
h. Signatories update.

1.4 Limitations of Internship

Despite having multiple advantages in learning and exploring practical experiences,

there are various limitations from the intern’s perspective. The limited
responsibilities and decision-making authority necessitate approvals from the senior
management. Even for small initiatives, the approval from the senior management
was necessary. Another limitation of the internship is its short duration. The time
constraints of the internship period may not yield expected results for the intern. The
short duration further limits the learning period to understand organizational culture
and procedures. Financial constraints, limited mentorship, etc are a few limitations
witnessed by the intern during this period.
 7

CHAPTER TWO
 8

2. BRIEF INTRODUCTION OF THE INDUSTRY

2.1 Meaning and Definition of Bank

A bank is a financial institution which serves an underlying function of the modern

economy by rendering essential services such as accepting deposits, advancing
loans, and enabling various financial transactions. According to Britannica (2025), a
bank is defined as

"an institution that deals in money and its substitutes and provides
other money-related services. In its role as a financial intermediary, a bank accepts
deposits and makes loans. It derives a profit from the difference between the costs
(including interest payments) of attracting and servicing deposits and the income it
receives through interest charged to borrowers or earned through securities."

This definition of bank underscores its core functions such as acting intermediaries
between depositors and borrowers along with offering additional services like
investment products, payment systems, and wealth management. The term "bank"
has a profound etymological history which can be traced back to the Italian
Renaissance. The word "bank" is derived from the Italian words "banca" or "banco",
which means "bench" or "counter". Italian merchants and moneylenders set up
counters or benches in the public areas to conduct their business such as currency
exchange and loans advancements. If the moneylender failed to complete the
obligations, their benches would be destroyed by the public, which derived the term
"bankrupt" which originally translated into "banca rotta". The above etymology
shows an early development in banking that was essentially localized activity
dependent on trust and physical presence.

Banks, subsequently, have undergone tremendous change from mere acceptance of

deposits and lending money to an array of functions. Today, they are into providing
a huge range of services related to account creation, credit instruments, wealth
management, investment advisory services, financing international trade, etc. Such
functions play a very important role in facilitating economic activity by providing
liquidity, credit, and efficient payment systems. Secondly, as an intermediary, banks
help to allocate capital from savers to borrowers and underpin economic growth and
stability in the process.
 9

2.2 Historical Development of Banks

The evolution of banks has intricated history of economic, social and technological
advancements across nations of the world. From ancient systems of credit to modern
financial institutions, banks have played a crucial role in shaping global economic
landscape.

2.2.1 Ancient Origins of Banking

Banking is one of the oldest professions, going back to very roots that stretch far into
the ancient civilizations where rudimentary forms of financial intermediation
became apparent. According to Naik (2014), in Mesopotamia, around 2000 BCE,
temples and palaces acted as proto-banks: they made loans and stored such value
commodities as grain and silver. Mostly run by religious or royal entities, these
institutions facilitated trade by offering credit and a secure storage facility. In ancient
Egypt, grain banks allowed farmers to deposit their grain upon harvesting and
withdraw it back when needed. In essence, this was the precursor of a savings
institution (Davies & Connors, 2016).

By the 5th century BCE, in ancient Greece, there were private moneylenders and
bankers in the various city-states, of which Athens was to be most important. These
took deposits, tested the money supplied into exchange, and granted loans for a great
part used by the maritime trade. The Roman banks further developed this technique
by using argentarii (money-changers) and nummularii (loan brokers) to exchange
money and provide banking services as money changers. It is even known that in the
Roman banks, letters of credit were issued facilitating commerce over long distances
within the empire (Andreau, 1999). Though set in motion was the process of banking
dynamics with such early systems allowing for trust platforms in financial
relationships, it was without the institutional complexity as seen in modern-day
banks.

2.2.2 Medieval Banking and the Emergence of Merchant Banks

The Middle age witnessed significant progresses in banking, driven by the

resurgence of trade and urbanization in Europe. Most of these advancements were
 10

apparent in the Italian city-states of Florence, Venice, and Genoa, which were
considered as the capital of financial innovation. By the 14th century, merchant
families like Medici started operating as bankers, accepting deposits, advancing
loans and facilitating international trade via bills of exchange. These instruments
enabled merchants to transfer funds without physically moving gold or silver and
minimizing risks and costs (de Roover, 1946).

A medieval religious order, the Knights Templar, was also doing a great deal for the
banking sector. Between the twelfth and thirteenth centuries, they had developed a
network of preceptories in every part of Europe. If taken by the travellers, these
facilities could safely hold their wealth while allowing them to issue letters of credit
exchangeable at a distant location. This system is, therefore, considered to be an
early mimicry of the modern banking network. During the medieval period,
however, banking was plagued with various hurdles. The very first, and perhaps
most significant, was the usury laws set up by the Catholic Church in order to avoid
charging interest on loans. This, some young men thought, can be worked around
'with great ease,' assured Kohn (1999). In fact, by the end of the Late Middle Ages,
banking had already become an intricate connection between the banks of Italy and
the finances of monarchs, merchants, and even wars.

2.2.3 Early Modern Banking and Central Banks

Banking was institutionalized during a modern epoch, spurred by factors such as the
expansion of global trade and the formation of states. It is in the 16th century that the
idea of public banks was born, with the Banco della Piazza di Rialto in Venice,
founded in 1587 and the Amsterdam Wisselbank, also established in 1609.
According to de Vries & Van der Woude (1997) these banks had stable currencies,
cleared payments, and in fact were handling commerce in a mercantile economy
ready to explode (de Vries & Van der Woude, 1997).

The 17th century was the century of central banks; it changed the face of banking.
The epoch-making institution was the Bank of England, established in 1694.
Founded to finance government debt during wartime, it then issued banknotes,
managed public funds, and in time of peace administered the economy under control
of monetary policy. Its success inspired the many other central banks that followed,
 11

such as the Banque de France, established in 1800 (Britannica, n.d.). Private banking
also thrived during this period. For instance, goldsmiths in London began issuing
receipts against deposited gold, which circulated as paper money. Such practices set
the stage for fractional reserve banking, where a bank can lend more than its
reserves, thus multiplying credit creation (Richards, 2012).

2.2.4 Modern Banking and Globalization

During the 19th century, the banking landscape became modernized, powered by the
Industrial Revolution and colonial expansion. The development of joint-stock
banking led to the ability of banks to pool capital from shareholders, thereby making
them more stable and capable of expanding (Cassis, 1994). Major changes were
introduced in the 20th century. The vulnerabilities exposed by the Great Depression
in the financial-banking system were eliminated, which was the basis for regulatory
reform. The U.S. Glass-Steagall Act of 1933 distinguished the commercial and
investment banking under these reforms. The IMF and the World Bank as well as the
technological development largely contributed in shaping today’s banking scenario
Moreover, followed by the emergence of digital banking and financial globalization
in the 21st century. Deregulation, especially the repeal of Glass-Steagall in 1999,
means that banks can branch out into far more complex products. All pre-crisis
reforms, such as the Dodd-Frank Act, have been focused on ensuring stability
(Varoufakis, 2018). Today, the banking business is undergoing tremendous changes
due to new products and services in fintech, particularly with mobile banking and
cryptocurrencies, which are prompting traditional banks to reinvent themselves.

2.3 History of Banking in Nepal

In Nepal, the development of banking concept has evolved across distinct historical
phases, each put forth by significant milestones in monetary practices, institutional
establishments, and legislatives formulation. According to Kalika (2019), the
emergence of banking can be divided into four phases like Before 1993, 1994 B.S. to
2012 B.S, 2013 B.S. to 2058 B.S. and 2058 B.S. to present days.
 12

2.3.1 First Phase: Before 1993 B.S. (Pre-1936 A.D.)

Monetary and banking practices in Nepal have their origin in remote antiquity.
Ancient financial transaction evidences appear deeply ingrained in Hindu scriptures
like Manusmriti, Kautilya's Arthashastra (300 BC), Mahabharata, and Ramayana.
These texts are talking about money lending against interest-bearing loans way back
to the centuries. The first recorded financial practice in Nepal goes back to the
Lichchhavi period in 521 B.S. (circa. 464 A.D.), when the king issued the name of
the coin he minted as "Mananka." The similar tradition of minting coins was carried
forward by the succeeding kings—first Gunakamadeva in 780 B.S. with the
"Gunanka" coins and then Mahindra Malla in 1561 B.S. with the "Mahindra Malli"
coins made from materials like gold, silver, copper, aluminum, and leather. The third
era of Malla saw copper coins issued by King Ratna Malla in 1484 B.S., while a
businessman named Shankhadhara Shakhwa cleared the national debts in 937 B.S.,
signifying a major financial reform. By the 9th century of the Vikram era, an
institution known as "Taksali"—that is, money management—had commenced in
Kantipur. During the Shahs' period, it was King Prithvi Narayan Shah who initiated
the activities of minting coins through "Taksar" in 1889 B.S. and established 'Kausi
Tosha Khana' as a banking agency (Kalika, 2019).

The first such formal banking structure was marked by the establishment of
'Tejaratha Adda,' with the primary objective of giving loans to government servants
at an interest rate of 5%, in 1934 B.S. during the prime ministership of Ranoddip
Singh, though without collection of public deposits (Kalika, 2019; Shrestha,
2054).This period was devoid of centralized banking, and monetary practices
revolved around minting of coins and indigenous lending mechanisms, such as that
of tankadhari, who were basically goldsmiths dealing with currency and offering
credit. These developments laid the foundation for organized banking in the later
period.

2.3.2 Second Phase: 1994 B.S. to 2012 B.S. (1937–1955 A.D.)

The second phase began with the initiation of the Nepal Bank Limited in 1994 B.S.
(1937 A.D.), established as per the Nepal Bank Kanoon, 1994, during the regime of
Rana Prime Minister Juddha Shumsher; First Modern Organized Bank in Nepal—
 13

Nepal Bank LTD; not only worked as a commercial bank but was also working as a
Central Bank or government bank without explicit designation by law to a Central
Bank—Kalika, 2019, p. 114. This was the period when early industrialization also
started after the Company Kanoon, 1993. Up to 1994 B.S., such functions of central
banking operations were meagerly and haphazardly done by Sadar Muluki Khana in
1999 B.S. and Tejarabittha Adda. Banknotes were issued first in 2002 B.S. and 2009
B.S. by Sadar Muluki Khana, a treasury department, which had been issuing coins.
These notes had the treasurers' signatures unauthorized, like that of Narendra Raj
Pandit (Kalika, 2019). No central bank was established; hence, banknotes printed in
India lacked modern security features—named "MoKu" (Mohur Rupee). These
years indeed marked the movement from coins to paper currency and the birth of
formal banking institutions.

2.3.3 Phase Three: 2013 B.S. to 2058 B.S. (1956-2002 A.D.)

The third phase was exactly marked by the creation of the Nepal Rastra Bank on
Baisakh 14, 2013 B.S. corresponding to April 26, 1956 A.D., under the Nepal
Rastra Bank Act, 2012 through which the underlying objective of the ordinance
passed was: to arrest the monetary instability that had begun erupting with twin-
currency circuits in Nepal and India and, hence, stabilize foreign exchange rates. The
NRB was to work toward broadening home currency circulation and expanding the
banking network so that exchange rates could be stabilized, apart from developing
monetary policy instruments (Kalika, 2019).

The NRB formed immediately after the implementation of the Act but went into
operation only on Poush 1, 2012 B.S. per the Nepal Rastra Bank Act, 2012 (B.S.
2012). This provided it with legal status to be a body corporate and have a separate
existence from that of the Government of Nepal. The Act provided that it shall
perform exclusively the most modern and advanced central banking functions that
had been, up to then, loosely and partly executed by the previous managers, namely
the Nepal Bank Limited and other government agencies, including issuing currency,
formulating and implementing monetary policy, and banking supervision.
 14

2.3.4 Fourth Phase: 2058 B.S. to Present (2002 A.D. Onward)

The enactment of the Nepal Rastra Bank Act, 2058, in 2002 A.D., and the repealing
of the 2012 Act and the Currencies Act, 2040, typifies the current phase. The new
Act bestowed operational autonomy to the NRB by defining its objectives as
formulating the monetary and foreign exchange policies to maintain price stability, a
sustainable balance of payments, regulating banks, and financial institutions to
enhance public trust in the financial system. It was amended in 2063 B.S. (2006) and
again in 2073 B.S. (2016) to improve its provisions (Kalika, 2019). It further
emphasized regulatory oversight of the NRB in the area of corporate governance,
protection of depositors, and competitive banking services, with the enactment of the
Banks and Financial Institutions Act, 2073 (BAFIA). Enacted on Poush 26, 2073
B.S., effected from Baisakh 10, 2074, this Act replaced the existing BAFIA, 2063. It
would have undergone several pressures from the public's quarters due to the
probability of potential conflict of interests among the lawmakers. These are the
international relations of NRB under Nepal Rastra Bank Act, 2058 and Bretton
Woods Agreement Act, 2078 that have enabled working relationships to be effective
and good with institutions such as the IMF, World Bank, and SEACEN; this acts to
raise the stature of a country in the world community according to Kalika (2019).
However, it is not of independent nature because of government ownership, and
there are calls for legal reforms to empower it pass further autonomous status that
will shield it from any political pressure. (Kalika, 2019, p. 118; Goodhart, 1995, p.
60.).

2.3.5 Market Trends and Developments

Nepal's banking industry in 2021 was confronted with a transforming landscape

characterized by regulatory reforms, digitalization, and post-pandemic recovery. The
Nepal Rastra Bank (NRB) continued to enforce tighter monetary policy actions like
higher capital adequacy ratios and liquidity management to ensure financial stability.
A trend which gained momentum was the rapid development of digital banking on
the back of rising smartphone penetration and internet connectivity. Banks invested
heavily in mobile banking applications, online payment portals, and QR-code-based
payments in tandem with the NRB's push towards rural financial inclusion. Fintech
developments, such as digital wallets (e.g., eSewa, Khalti), accelerated, pushing
 15

traditional banks to level up their digital platform. Green finance also picked up
momentum within the industry as banks financed green initiatives due to global ESG
movements. In spite of this, problems like high non-performing loans (NPLs) due to
COVID-19 pandemic-related economic shocks that prolonged credit growth existed.
Interest rate hikes and competition for deposits rose as banks attempted to
implement NRB's guidelines on the credit-deposit ratio. Mergers and acquisitions
surged, encouraged by the NRB for consolidation of small banks and strengthening
balance sheets. Remittance inflows, a key source of liquidity, were robust, fueling
deposit growth but exposing banks to external economic factors. On balance, the
industry was balancing innovation and risk, aiming to open up access to finance
without destabilizing the system in a recovery economy.

2.3.6 Major Players and Competitors

Nepal's banking sector in 2021 was a commercial bank-dominated one, led by Class
A institutions due to their extensive networks and market share. Key among them
were Nepal Investment Bank Limited, Nabil Bank Limited, Himalayan Bank
Limited, Standard Chartered Bank Nepal, and Global IME Bank Limited, which
collectively owned significant assets and customer bases. Nabil Bank, being a
leader, was known for its prudent financial operations and digital banking. Global
IME Bank emerged as a major player through mergers with smaller banks,
expanding its rural presence. Himalayan Bank maintained a competitive position
through its focus on corporate banking and foreign alliances. Development banks
(Class B) like Muktinath Bikas Bank and microfinance institutions also played an
important role, catering to the poor. The NRB consolidation drive reduced the
number of specialty players, enhancing competition among the big banks to vie for
credit portfolios and deposits. Foreign players such as Standard Chartered pushed
high-value-added services and trade finance to set themselves apart from local
players. The entrance of online payment platforms such as eSewa and Khalti
introduced non-bank competition, which resulted in compelling the banks to become
innovative.
 16

2.4 Types of Banks in Nepal

The banking and finance system in Nepal is managed and ordered by the functions
and operational scopes as stated in the Nepal Rastra Bank Act, 2058, and the Banks
and Financial Institutions Act, 2073, passed by the state. Thereby, classifying major
categories under it involves the central bank, commercial banks, development banks,
finance companies, microfinance institutions, and infrastructure development banks.
Nepal Rastra Bank functions as a central bank that is in charge of the formulation of
monetary policies, issue of currency, and supervision of the entire financial sector.
Commercial banks (Class A) are those larger ones dealing in almost all kinds of
services—deposits, loans, and facilitating international trade. Development banks
(Class B) are 17 institutions focusing mainly on providing finance to agriculture,
SMEs, and infrastructure development for rural and regional development. It fills in
the gaps of finance left by commercial banks, which are engaged in consumer
financing with hire-purchase financing facilities and housing loans. The finance
company in Nepal are classified as Class C institutions and their total number adds
up to 17. Microfinance institutions have very significantly helped in raising financial
inclusion and have provided microcredit and savings service to the low-income and
rural communities at large. There are 52 institutions under that regime. Among the
more specialized categories are infrastructural banks, which are created to invest in
long-term finance for big hydropower projects and road projects.

Table 2.1.

Types of banks and the minimum paid up capital with their numbers

Class Types of banks Minimum paid up Total

capital requirements Number
A Commercial banks NPR 8 billion 20
B Development banks NPR 2.5 billion 17
C Finance Company NPR 800 million 17
D Microfinance NPR 100 million 52

Source: Nepal Rastra Bank (2024)

 17

2.5 Introduction to Commercial Banks

A commercial bank is the cornerstone financial institution that serves the nation’s
economy by facilitating financial transactions, accepting deposits, extending loans to
individuals, businesses and organizations. In Nepal, there are 20 commercial banks,
classified as ‘Class A’ being operated under the Nepal Rastra Bank Act, 2058. These
profit-oriented entities accept deposits from the public and provide a wide array of
services, including loans, credit facilities, and wealth management, distinguishing
them from investment banks, which focus on underwriting and securities issuance.
As of January 2025, Nepal hosts 20 commercial banks, with pioneers like Nepal
Bank Limited, established in 1937, marking the formal inception of the banking
system in the country. These institutions play a critical role in supporting economic
growth, fostering financial inclusion, and maintaining systemic stability.

2.5.1 Functions of commercial bank

The key functions of commercial banks include:

• Deposit Mobilization
Commercial banks accept deposits from the public through various accounts like
savings, current, fixed, and recurring deposit accounts. This function encourages
savings, provides customers with secure storage and interest earnings, and supplies
banks with funds for lending, forming the foundation of their operations.
• Lending and Credit Services
Banks provide loans such as home, personal, business, and education loans, along
with credit cards and overdraft facilities. By extending credit, they enable
individuals and businesses to meet financial needs, stimulate economic activity, and
support entrepreneurial and developmental initiatives.
• Money Transfer and Remittance Services
They facilitate domestic and international money transfers through wire transfers,
electronic fund transfers, and remittance services. In Nepal, where remittances are a
major economic driver, this function ensures efficient and secure movement of funds
for individuals and businesses.
• Wealth Management and Investment Services
 18

Banks offer wealth management, investment products, and advisory services to help
clients grow their assets. These services cater to both retail and corporate clients,
supporting financial planning and investment in securities or other instruments.
• Trade Finance
Commercial banks provide services like letters of credit and guarantee to facilitate
international and domestic trade. This function supports businesses by ensuring
secure and efficient transactions, particularly for importers and exporters.
• Digital Banking Services
Through mobile banking, internet banking, and ATMs, banks offer convenient
access to financial services. Digital platforms allow customers to perform
transactions, check balances, and manage accounts anytime, enhancing accessibility
and efficiency.
• Payment and Settlement Services
Banks enable payments for utilities, taxes, and other services, acting as
intermediaries in financial transactions. They ensure smooth settlement of payments,
supporting the operational needs of individuals and businesses.
• Foreign Exchange Services
They provide currency exchange and foreign exchange services for international
transactions. This function is crucial for businesses engaged in global trade and
individuals traveling or sending money abroad.

2.6 PESTLE Analysis of Banking Sector in Nepal

2.6.1 Political Factors

The political environment in Nepal significantly impacts the commercial banking

sector due to its regulatory oversight and policy frameworks (Dahal & Mukherjee,
2015).

• Regulatory Oversight
The Nepal Rastra Bank (NRB), the central bank, plays a critical role in regulating
commercial banks. Policies such as capital adequacy requirements, interest rate
controls, and merger mandates shape banking operations.
• Political Instability
 19

Nepal’s history of political instability, and ongoing political scandals, creates

uncertainty for banks. This affects investor confidence and long-term lending
decisions.
• Decentralization
The deployment of authority to provincial and local bodies has eased some business
processes but introduced complexities due to lack of synchronization, impacting
banking operations.
• Government Debt Concerns
Nepal’s costly constitutional arrangements raise concerns about rising national debt,
which could pressure banks to finance government borrowing, potentially increasing
risk exposure.

2.6.2 Economic Factors

Nepal’s economic conditions directly affect the banking sector’s performance, given
its role in financial intermediation.

• Economic Growth
Nepal’s GDP growth is closely tied to commercial banking activities, with banks
holding approximately 65% of total deposits and credit in the economy.
• Low Income and Unemployment
With a GDP of $18.96 billion in 2012 and a low-income status, Nepal faces high
unemployment (approximately 40%) and declining agricultural productivity,
limiting credit demand in rural areas.
• Interest Rate Volatility
Fluctuations in interest rates, controlled by the NRB, impact lending and borrowing.
Competitive interest rate wars among banks have strained profitability.
• Urban-Centric Banking
Banking services are concentrated in urban areas, limiting financial inclusion in rural
regions, which hampers overall economic development

2.6.3 Social Factors

Social trends and demographics influence banking operations and customer

engagement in Nepal.
 20

• Entrepreneurial Trends
Rising entrepreneurship, particularly among youth and women, is driving demand
for banking services. Sectors like agribusiness, tourism, and online businesses are
gaining traction, increasing the need for credit and digital banking solutions.
• Financial Literacy
Growing awareness of financial services, coupled with increasing literacy rates, has
boosted banking adoption. However, rural populations still lack access to financial
education.
• Changing Demographics
Youth are more inclined toward productive sectors and digital transactions,
influencing banks to prioritize innovative financial products.
• Workforce Diversity
The rise of women in business and a tech-savvy younger population are reshaping
banking customer profiles, requiring tailored services.

2.6.4 Technological Factors

Technology is transforming the Nepalese banking industry, driven by digitalization

and customer expectations.

• Mobile Banking and Digital Transactions

High mobile phone penetration has fueled the adoption of mobile banking apps and
digital payment systems. Youth preference for digital transactions is pushing banks
to invest in technology.
• Operational Efficiency
Banks face pressure to adopt advanced technologies to reduce costs and improve
customer service. Technologies like ATMs, internet banking, and automated systems
are becoming standard.
• Cybersecurity Risks
Increased digitalization exposes banks to cybersecurity threats, necessitating robust
measures to protect customer data and comply with regulations.
• Fintech Growth
The rise of fintech in Nepal, supported by NRB’s push for digital payments, is
encouraging banks to collaborate with fintech firms or develop their own solutions.
 21

2.6.5 Legal Factors

The legal framework governs banking operations, ensuring compliance and

consumer protection.

• Compliance Requirement
Banks must adhere to NRB regulations, including capital requirements, anti-money
laundering (AML) laws, and reporting standards. Non-compliance can lead to
penalties and reputational damage.
• Consumer Protection Laws
Laws ensuring fair lending practices and transparency in fees protect customers but
increase compliance costs for banks.
• Labor Laws
Regulations governing employment practices affect hiring, wages, and working
conditions in banks, requiring adherence to avoid disputes.
• Merger and Acquisition Policies
NRB’s policies promoting consolidation have improved financial metrics like
liquidity and leverage ratios post-merger, but they also impose restructuring
challenges.

2.6.6 Environmental Factors

Environmental considerations are increasingly relevant to banking operations,

especially in a country vulnerable to climate change like Nepal.

• Climate Change Risks

Banks are assessing climate-related risks to their loan portfolios, particularly in
agriculture and real estate, which are vulnerable to natural disasters like floods and
landslides.
• Sustainable Banking
Growing emphasis on environmental, social, and governance (ESG) factors
encourages banks to invest in sustainable projects and report on carbon footprint
reductions.
• Paperless Banking
 22

Digital banking reduces paper usage and the need for physical branch visits,
lowering environmental impact.
• Regulatory Pressure
While Nepal’s banking sector is not a heavy polluter, environmental laws scrutinize
lending to high-impact industries like mining, pushing banks toward greener
practices.
 23

CHAPTER THREE
 24

3. BRIEF INTRODUCTION TO THE INDUSTRY

3.1 Introduction to Nabil Bank

Nabil Bank Limited was established in July, 1984, making it as the first joint venture
bank. It was founded with the objective of enabling international standard modern
banking services and facilities to varied sectors of Nepalese society. The bank is
headquartered at Durbar Marg in Kathmandu. The bank currently boasts 268
branches and 321 ATMs across the country during the internship period. Earlier, it
was known as Nepal Arab Bank.

Nabil Bank has been a cornerstone in the Nepalese banking sector that not only
began operating as a private entity, it also helps in expanding the sectors by
introducing modern technology, innovative products and services, streamlining
processes. In the earlier phase of development of banking in Nepal, banks were
government owned, flawed structure, covered with administrative delays which
harmed the customer's experiences and could not deliver standard services. With the
aim of addressing these issues, Nabil catered to diverse ranges of customers such as
individual, business, organizations, community-groups, etc.

Nabil Bank, one of Nepal's first and most respected commercial banks, has brought
many new products and marketing ideas to banking in Nepal. The bank started a new
age of modern banking in Nepal's history, focusing on enhancing customer
satisfaction while delivering banking services. The bank's daily operations and risk
management are handled by highly qualified and experienced managers. The bank
uses modern technology, including international-level banking software that
supports online banking and transactions. Nabil wants to provide the best for
everyone involved with the bank in many different ways, not just focusing on profits
or market share. This is shown in their motto "Together Ahead." The bank follows
values called C.R.I.S.P. (Customer Focused, Result Oriented, Innovative,
Synergistic and Professional) in its everyday business operations.

3.2 Vision and Mission

Being Nepal's first joint venture bank, it is committed to moving forward together by
offering a complete range of financial services to people from all walks of life across
 25

every region of the country by continuously improving to provide better service to

everyone connected with this esteemed institution.

The mission of Nabil Bank is to be the 'Bank of 1st choice' of its stakeholders (Nabil
Bank, n.d.). It aims to be Nepal's leading financial institution by delivering
outstanding value for all stakeholders in its ecosystem. The bank's commitment is to
provide complete financial solutions that make the bank customers' first and best
option regardless of their economic status in the country. Its mission includes further
building consistently higher returns for its shareholders in a way that makes the bank
a blue-chip investment destination. Nabil upholds the ultimate in governance,
transparency, and professionalism in its regulatory compliance and is a model
banking institution in this regard. The bank exercises good corporate citizenship by
reaching out to communities and being responsible for the environment in every
location where it has a presence. Central to achieving these goals is Nabil's valuing
of its employees as fundamental assets, with a work environment that searches out
and rewards excellence and attracts and retains the top industry talent. In this end-to-
end stakeholder value model, Nabil Bank remains committed to its core mission of
shaping Nepal's financial economy.

3.3 Core values

According to Nabil Bank (n.d.), the bank has embedded CRISP core values in its
services and shape institutional identity. As a ‘Customer Focused’ institution, the
bank builds long-term client relationships through personalized financial solutions
with the belief that client success begets prosperity for all. Being ‘Result Oriented’
makes every effort count to attain financial strength to enable growth across various
time frames to usher in institutional stability. The Innovative culture of the bank
fosters continuous enhancement of internal processes and customer products,
positioning the bank as an industry leader, rather than a follower. A Synergetic
culture of the workplace builds teamwork as a competitive advantage, with staff
celebrating collective success over individual success. The ‘Professional’ culture of
the bank emphasizes ethical conduct, expertise, and commitment, honoring process
integrity as highly as outcomes. These five values of Customer Focus, Result
Orientation, Innovation, Synergy, and Professionalism are embedded in Nabil Bank's
culture such that the employees are able to provide excellence in service, promote
 26

progress, and maintain the bank's reputation as a sound financial institution. This
day-to-day commitment to core values ensures long-term growth, customer
satisfaction, and progressive banking practices.

3.4 Organizational Structure

The structure of the organization enables the smooth flow of activities to achieve the
goals of an organization. It determines how the organization communicates and the
levels within the organization. At Nabil Bank, the functions are divided into
different departments such as Operation Department, Credit Department, etc.
Branches across the nation are headed by each branch manager. The Board of
Directors remain at the top level of the bank. BODs consist of seven members with
the Chairman leading the BODs. This is the board of members of Nabil Bank
Limited:

Table: 3.1.

Board Members of Nabil Bank Limited

S.N. Name of Directors Represented Class Position in Board

1. Mr. Gyanendra Prasad Dhungana Promoters Shareholders Chairman
2. Mr. Nirvana Chaudhary Promoters Shareholders Board Member
3. Mr. Malay Mukherjee Promoters Shareholders Board Member
4. Ananta Poudyal Public Shareholders Board Member
5. Pravin Tibrewala Public Shareholders Board Member
6. Syed Mansur Mustafa Promoter Shareholders Board Member
7. Sarita Bhatta Adhikari Independent Director Board Member
3.5 Products and Services

Nabil Bank Limited offers a comprehensive range of products and services, catering
to a wide range of customers from individuals to mid-market local corporate to
multinationals and large public sector corporations, embassies, aid agencies, airlines,
hotels, and government corporations. Nabil Bank's policy is to render quality
services to its customer as well as possible. Bank's policy is to render quality
services to its customers as well as possible. Individualized services are provided to
all the clients. To render more effective services to its customer, Nabil has
 27

introduced innovated and latest banking technology and personalizes the facilities
provided to its clients, based on their need and requirement, apart from the standard
services, Nabil has been providing the following services to their customers.

3.5.1 Deposit

Nabil bank offers a diverse deposit scheme in both local and foreign currencies to
enable customer achieve competitive interest rates to optimize investment returns.
Among the deposit schemes, it offers saving account, current and term account.

3.5.1.1 Saving account deposits

A savings account is a normal day-to-day banking account that allows account

holder to deposit money in, keep it safe, and earn interest on the sum over time.
Unlike checking accounts for normal day-to-day transactions, savings accounts earn
more interest but may limit withdrawals and transfers. They serve as an easy way to
save for the future need, emergency fund, or financial goal and also provide some
security. Savings accounts are among the safest to invest and still earn a return on
money, though rates of interest are typically small compared to other investments.
Catering to the diverse range of accountholders, Nabil Bank offers saving account
under different schemes with a reasonable interest rate. The given schemes and
interest were availed during the internship period.

Table: 3.2

Interest rates on saving account

S.N. Saving Account Schemes % per annum

1 Nabil General Savings Account 3.00
2 Nabil Premium Nari Bachat Khata 3.00
3 Nabil Corporate Staff Savings Account 3.00
4 Nabil Jestha Bachat Khata 3.00
5 Nabil Bal Bachat Khata 3.00
6 Nabil Karmashil Bachat Khata 3.00
7 Nabil Social Security Savings Account 3.00
8 Nabil Gen N Account 3.00
 28

9 Nabil Sahuliyat Khata 3.00

10 Corporate General Savings 3.00
11 Nabil Gen Alpha Account 3.00
12 Nabil Shareholders Savings Account 3.50
13 Nabil Premium Payroll Savings Account 3.50
14 Corporate Premium Savings 4.00
15 Nabil Gold Savings Account 5.00
16 Corporate Super Savings 5.00
17 Nabil Gold Payroll Savings 5.00
18 Nabil Dhukka Bachat Khata 5.00
19 Nabil Premium Remittance Savings Account 6.00

3.5.1.2 Current account deposit

Current account is mostly concerned with liquid deposits, this characteristic of

account enables withdrawal of cheques and drawings against the balance and does
not limit the number of transactions per day.

3.5.1.3 Fixed Account

Nabil's extensive range of fixed deposit schemes provide one with an additional
income with the benefit of credit facility up to ninety percentage of their fixed
deposit to fulfill their short term financial needs. Save for fixed duration and be sure
of the attractive return on money. Nabil offers extensive range of fixed deposit
scheme that provides customers with a good return on their hard-earned money with
high sense of security.

3.5.1.4 Call deposit

It is that combination of saving and current accounts with interest on top. Nabil
offers call deposit account that is basically a demand deposit account with wide list
of benefits; earning interest and ease of unrestricted deposits and withdrawals being
the very essence of this account.
 29

3.5.1.5 Locker facility

It is designed to safeguard customer valuables. Safe deposit lockers offer individual

security and safety of your valuables. A safe deposit locker in Nabil Bank is a
solution to individual concern. Nabil offers customer access to safe deposit lockers
at a maximum location. However, the locker facility was not available at Surunga
Branch.

3.5.2 Bancassurance

Bancassurance is a newly defined product in which the bank offers insurance service
to customers for the protection of property and life under agency arrangements with
leading insurers in Nepal. Credit customers are offered the facility to freely choose a
policy for covering the bank-mortgaged property risk. Likewise, all the customers
can opt to choose a range of different life insurance policies according to their need
and investment approach. The collaboration among the Bank and insurance firms for
selling insurance products to the customers of the Bank offers mutual advantages to
insurer's customer, Bank, and clients at the same time.

3.5.3 Lending services

Nabil Bank has become among the leading banks in Nepal through offering a great
variety of tailor-made lending solutions to cater to diverse customer demands at each
stage of their life. With a focus on simple processes and fair rates of interest, Nabil
facilitates affordable financial options at all branches. The bank's lending portfolio
comprises seven schemes: Nabil Housing for property acquisition and development;
Nabil Properties for mortgage against property credit; Nabil Auto to fund cars for
personal and commercial use; Nabil Sikshya, the biggest international education loan
scheme of Nepal for Nepalese studying abroad; Nabil Share Loan to lend against
demat shares; Nabil Personal Loan with non-collateral facilities for special
customers; and Personal Overdraft for immediate finance solution. What
differentiates Nabil from others is its strategic partnerships, such as arrangements
with car dealerships for expedited processing and accreditation by institutions such
as the Australian High Commission for lending credibility on education loans. By
carefully crafting these financial products to address different life milestones from
 30

home buying and education to business investing and personal needs, Nabil Bank
comes out as a one-stop financial companion committed to being with customers
through each stage of their financial life with flexibility, accessibility, and
competitive pricing.

3.5.4 Debit cards and Credit Cards

Nabil Bank pioneered credit card introduction in Nepal with agreements from Visa
Worldwide Inc. and MasterCard Worldwide Inc. in the early 1990s and subsequently
from Union Pay International and Smart Choice 24 Technologies. The bank offers a
comprehensive range of card services through issuing Visa and MasterCard products
and acquiring Visa, MasterCard, China Union Pay, and Smart Choice Technology
card payments. Nabil utilizes advanced technology for its online banking, mobile
banking, and other card products for both account and non-account holders. Their
Visa Debit Card and local credit cards (Visa and MasterCard) are honored by over
2.8 million merchants and 215,000 ATMs in Nepal and India. Bank debit cards have
no limits, interest charges, or late charges. Nabil also provides international dollar
cards like MasterCard International Credit Card and Visa International Pre-paid card
with global acceptance. Nabil has recently enhanced its technology to enhance
electronic banking services, providing products like Nabil Installment, Esecure,
Mobile Commerce, Nabil Net, ATM services, Viber Banking, and Electronic
Payment Gateway.

3.5.5 Remittance Services

Nabil Bank provides c remittance services at competitive rates to help Nepalese

workers abroad transfer money home. Their services include Western Union, which
allows recipients to collect funds through over 500,000 agent locations worldwide
without needing a Nabil account. For domestic transfers, they offer Nabil Remit, a
web-based system with more than 1,500 locations across Nepal. The bank facilitates
global fund transfers through drafts and SWIFT (code: NARBNPKA), supported by
extensive correspondent banking relationships that handle individual transfers,
international trade, and treasury operations. Additionally, Nabil has established
remittance partnerships with exchange houses, remittance companies, and banks in
Qatar, UAE, Kuwait, Saudi Arabia, India, South Korea, Australia, and Japan to
 31

enable efficient international money transfers to Nepal, making it easier for Nepalese
workers to send money home.

3.5.6 Miscellaneous products and services

3.5.6.1 Any Branch Banking Services

Nabil Bank has leveraged its technology infrastructure to provide seamless banking
services through its vast network of branches, ATMs, and point-of-sale terminals.
The bank focuses to easy access to all products and services regardless of customer
location. The customers have the advantage of conducting transactions without any
hassle at any branch within the network, eliminating the traditional constraint of
being confined to their original account-opening location.

3.5.6.2 Online account opening

At Nabil Bank, customers can open an account in their preferrable branch by filling
an online from via designated sites or n-bank app. It enables customers far and near
to avail the services of the bank.

3.5.7 Financial Status Report of Nabil Bank Limited

Nabil Bank Limited, one of the leading financial institutions of Nepal, has posted a
strong financial performance the 2nd quarter of FY 2024-25 (2081-82) ending Poush
2081. This report by Abhiyan Daily (2024) highlights the bank's financial position,
profitability, and overall stability, showcasing its strength and expansion in the
competitive banking industry.

3.5.7.1 Financial Position

As of the end of quarter Poush 2081, Nabil Bank's total assets stood at NPR
586,346,033 thousand, a commendable increase from NPR 557,079,784 thousand in
the corresponding period of the previous year. The increase was driven largely by a
rise in loans and advances to customers, which stood at NPR 391,671,166 thousand
as compared to NPR 372,475,389 thousand. Investment securities also rose
significantly to NPR 124,241,978 thousand from NPR 109,420,781 thousand last
year. The cash and cash equivalents of the bank also rose to NPR 25,526,795
 32

thousand, offering liquidity for meeting operational needs. On the liabilities front,
the total liabilities were at NPR 526,717,733 thousand, with customer deposits
forming the largest segment at NPR 479,369,835 thousand, up from NPR
461,263,087 thousand. Such growth in deposits reflects the customers' confidence
and trust in Nabil Bank. Equity attributable to equity holders of total equity
amounted to NPR 59,628,835 thousand, as compared to NPR 56,679,854 thousand,
reflecting a more robust capital base.

3.5.7.2 Profitability and Income Performance

Net profit of Nabil Bank amounted to NPR 3,247,977 thousand for the quarter, an
increase from NPR 3,206,799 thousand in the corresponding quarter of the previous
year. This rise in profitability was supported by a net interest income of NPR
5,753,340 thousand, up from NPR 5,648,344 thousand, driven by the bank's ability
to manage its interest-earning assets. Operating income during the period amounted
to NPR 7,879,940 thousand, slightly above NPR 7,818,190 thousand, with fee and
commission income (NPR 1,080,208 thousand) and other operating income (NPR
1,106,392 thousand) contributing. However, impairment charges were faced by the
bank, which increased to NPR 893,282 thousand from NPR 834,687 thousand,
reflecting prudent provisioning for potential loan losses. After provisioning for
operating expenses of NPR 2,387,896 thousand and tax of NPR 1,787,801 thousand,
the bank recorded a satisfactory margin between profits, reflecting operational
efficiency.

3.5.7.3 Capital Adequacy and Risk Management

The risk-weighted assets capital ratio of Nabil Bank stood at 13.28%, far above the
regulatory requirement, reflecting a comfortable cushion to absorb potential risks.
Tier 1 capital ratio stood at 12.11%, which further Reflects the financial strength of
the bank. The bank's annualized return on equity stood at 11.03%, and return on
assets stood at 1.14%, both reflecting efficient utilization of resources. Non-
performing loans were minimal at 1.96%, reflecting effective credit risk
management.
 33

3.6 SWOT Analysis of Nabil Bank, Surunga Branch

SWOT analysis is a powerful tool to assess the status of an organization. It helps to

identify the strengths, weaknesses, opportunities and threats. Via this tool, the
organization leverage its core competencies in achieving competetive edge and
minimize potential risks and threats. Given below is the swot analysis of Nabil Bank,
Surunga Branch.

3.6.1 Strengths

• Part of Nabil Bank's extensive network and reputation along with access to vast
resources.
• Emphasis on quality services.
• Competent, experienced and highly qualified human resources.
• Access to advanced technology.

3.6.2 Weaknesses

• Less customer base due to its late entry in Surunga as compared to other banks.
• Congestion and overcrowding due to lack of space.
• Due to low customer base, the deposits are also lower.

3.6.3 Opportunities

• Potential to expand services in rural part of areas Shivasatakshi Rural

Municipality, Kanakai Municipality and Jhapa Rural Municipality.
• Rise of financial literacy among people in rural areas.
• Growing trade and financing activities in the region.

3.6.4 Threats

• Extensive competition from commercial banks as well as local microfinances

and cooperatives.
• Changing rules and regulations of NRB.
• Changes in customer preferences such as cardless ATM withdrawl could pose
risk for Surunga Branch.
 34

CHAPTER FOUR
 35

4. ANALYSIS OF ACTIVITIES DONE

4.1 Background

A bank is divided into several functional departments to ensure it runs smoothly.

The collaborative functioning of each department such as Credit, Operation, CSD,
etc. is critical for the bank. To achieve my academic requirements and explore the
real-world context of banking services, the intern was placed at CSD as it plays a
vital role in the bank as the first point of contact for customer inquiries. As a leader
in banking products and services, Nabil Bank has built its reputation on excellent
customer service, effectively addressing concerns and inquiries. When customers
first visit the bank, they typically seek information rather than immediately opening
accounts. CSD staff are responsible for informing, persuading, and motivating
customers to use the bank's offerings by explaining available products, services, and
required procedures. Many customers find lengthy procedures challenging and may
look elsewhere; CSD staff must simplify these processes to retain potential clients.

A bank's success largely depends on service speed and how staff communicate with
customers. Many banks now emphasize serving customers with a friendly attitude to
ensure customer satisfaction. Nabil Bank operates under the customer-focused
motto: "Your bank at your service." During the internship period, the intern
performed several activities, experienced how the banking procedures flow,
addressed various challenges and observed gaps.

4.2 Role of the intern

4.2.1 Account Management

During the internship period, the intern was involved in account onboarding activity
in the bank's system. Such accounts were saving account under different schemes,
corporate account and current account. Moreover, the intern also onboarded Demat
Account for customers willing to invest in shares and funds. When opening an
account at Nabil Bank—whether savings, current, individual, joint, or corporate—
customers must submit specific documentation based on the account type. For
personal accounts, customers complete an application form (with assistance
available for those who need it). Required documents include original citizenship
certificate, supporting identification (voting card, PAN card, passport, or utility
 36

bills), and a passport-sized photo. After submission, bank staff review the form,
enter it into the WDMS system, and forward it to a manager for approval. The
Central Processing Centre (CPC) typically opens the account within one day,
sending the account number to the customer's registered mobile number. Corporate
account applications require different documentation: company registration
documents, meeting minutes authorizing the account opening, memorandum and
articles of association, plus citizenship certificates and photographs of all titled
owners. The specific document requirements vary depending on the type of
company. For demat account, the customer must have a bank account and need to
fill up the application form as well as required documents such as citizenship, two
passport sized photo and utility bills for address proof. If the applicant is minor, two
photos of guardian is also needed.

4.2.2 Account closing

One of the activities, the intern carried out in the internship period include closing
account of customer. If a customer request to close the account filling the application
form, s/he needs to return the chequebook, ATM Cards or other instruments issued
by the bank. Upon receiving this closure request, the bank circulates an internal
notice to all departments asking them to verify if the account holder has any
outstanding liabilities and instructing them to suspend all activities on that account
effective immediately. After receiving clearance from all departments confirming no
objections, the branch proceeds with the account closing process by formally
requesting the Central Processing Centre (CPC) to finalize the account closure.

4.2.3 Attending customer queries and calls

As an intern in Nabil Bank’s Customer Service Department, handling customer

queries and calls is a core responsibility that involves delivering prompt, accurate,
and professional assistance. This includes addressing inquiries about account
balances, transaction processes, ATM card issues, and bank products. Hence, it is
necessary to answer phone calls, transfer them to relevant departments when needed,
and resolve customer concerns, such as clarifying form requirements or guiding
users through digital banking platforms. By maintaining polite tone, actively
listening, and providing clear solutions, interns ensure customer satisfaction while
 37

adhering to the bank’s service standards and compliance protocols, all under the
supervision of senior staff.

4.2.4 Documentation and filing

During the internship at Nabil Bank Limited, the intern was responsible for
organizing and maintaining customer documentation files. This involved properly
classifying documents like account opening forms, KYC papers, cheque requisition
slip, mobile banking update form, etc. according to the bank's filing system ensuring
all papers were properly labeled, placed in their respective folders, and stored
securely in designated cabinets. This meticulous organization helped bank staff
quickly retrieve customer information when needed, enhancing operational
efficiency. The intern alos involved assisted in digitizing physical documents by
scanning them and uploading them to the bank's document management system,
ensuring backup of important customer records and simplifying the retrieval process.

4.2.5 Issuing cheque books and debit cards

One of my key responsibilities was handling the distribution of cheque books and
debit cards to customers. When new cheque books or debit cards arrived at the
branch, I would record them in the respective books and inform customers via phone
or SMS to inform them their items were ready for collection. During distribution it is
significant to follow strict verification protocols to confirm customer identities
through photo ID and signature verification. The intern maintained the
acknowledgment register to document when these items were issued, requiring
customers to sign for their receipt. This process ensured secure handling of these
sensitive banking instruments while providing prompt service to customers.

4.2.6 Balance Inquiry and Issuance of Bank Statement

Customers visit the bank to check their account balance or verify the balance of
someone who has issued them a cheque, ensuring sufficient funds before presenting
it. Customer Service Department (CSD) staff verify the identity of account holders
through signature verification, contact number confirmation, and family detail
 38

checks. Account holders may also request bank statements, which CSD staff can
provide.

4.2.7 Photocopying and scanning documents

Photocopies of the original documents are needed in various banking procedures,

which are processed by the CSD personnel themselves. Document scanning is
another crucial activity of CSD, carried out for backup and intra-department sharing.
Scanning account opening documents for uploading to WDMS was first required,
though that system was replaced by CPC. Scanning change of signature documents
and KYC information for WDMS upload is still required. Signature cards must be
kept flat to assist in preserving the specimen signature integrity.

4.2.8 Preparing debit cards and cheque books exhibit

The uncollected debit cards and cheque books are destroyed if the account holders
do not collect these instruments. Debit cards must be collected within a year of
issuance whereas cheque books need to be collected within two months. If expired,
an exhibit for each of these uncollected instruments is prepared to request for their
destruction. A certain charge is incurred from the customer’s account due to lack of
acknowledgment.

4.3 Fitting in the organization structure

Table 4.1.

Organization Hierarchy at Nabil Bank Limited, Surunga Branch

Branch Manager

Credit Head Operation Incharge

CSD Head

Intern
 39

4.4 Experiences in the internship including understanding of system,

processes and rationale

As an intern at Nabil Bank Limited in the CSD, my experience provided valuable

insights into the banking sector’s operations, systems and procedures. As I was
placed in the CSD, these insights are mostly derived from the tasks related to the
concerned department. These insights enriched my knowledge on account opening
procedures, requirements of valid documents, significance of verification, strict
adherence to the protocols, etc.

4.4.1 Comprehending the system

The organizational culture of Nabil Bank's Surunga Branch was highly structured
and customer-focused, giving a solid foundation to learn modern banking systems.
Being an intern in the Customer Service Department (CSD), I was introduced to the
bank's operational system, which was completely reliant on sophisticated software
like KYCMS (Know Your Customer Management System) for account on boarding,
and Nabil Invest for investment services such as demat opening, renewing demat
account and Meroshare. Use of KYCMS was instrumental in verification of
customer identities as well as regulatory compliance, while Nabil Invest facilitated
efficient processing of investment products. The environment of sharing, and the
guidance provided by the experienced personnel members, helped me realize how
much these systems fit together and thereby value the enabling technology
infrastructure underlying precision and effectiveness of banking operations.

4.4.2 Processes of the banking

The operational processes at Nabil Bank's Surunga Branch were systematic, with a
clear work flow employed to ensure customer satisfaction and compliance. My
principal responsibilities included account opening and closing, documentation and
filing, preparation of cheque book and ATM card exhibit, distributing ATM card and
cheque book, and assisting customers with form filling. Opening of accounts
involved gathering documents such as certificates of citizenship, entering data into
 40

KYCMS, and forwarding them for authorization. Cheque books and ATM cards
were printed with specific modules in KYCMS, with due verification to avoid errors,
and issued only after authenticating the identity of the account holder. Documents
required strict filing and scanning for record-keeping, ensuring all records were
updated in the system. Customer inquiries were handled quickly, frequently
involving coordination with other departments. This efficient workflow, facilitated
by frequent monitoring by the CSD head, helped to ensure seamless operations and
compliance with banking regulations.

4.4.3 Rationale

The internship at Nabil Bank's Surunga Branch served as a crucial bridge between
my theoretical knowledge acquired through the Bachelor of Business Administration
(BBA) program and practice in a live bank environment. Such principles as financial
intermediation, customer relationship management, and compliance with
regulations, which I had learned in class, became concrete reality as I performed
activities such as operations of accounts and documentation. With KYCMS and
Nabil Invest providing practical exposure to banking software, I was provided with
valuable insights for a better understanding of how technology enables financial
services. The internship also curated such soft skills as interpersonal communication,
problem-solving, and time management, as I involved in addressing with different
customers and performed several tasks under stringent time limits. This experience
not only validated my academic knowledge but also improved confidence in
applying theoretical principles to operational issues, preparing me for a professional
career in banking.

4.5 Issues encountered and measures to solve these problems

During the internship period, multiple issues and challenges were encountered.
Working under CSD, the customer concerns and challenges are inherent to the CSD.
Hence, as a part of CSD, it was a major role to address the following encountered
problems:
 41

4.5.1 Changing rules and regulations

Banking regulations, interest rates, service fees, banks products and services, etc
were periodically updated to adapt towards the dynamic landscape of banking sector.
As customers are usually unaware of these changes, it was a prime role of CSD
staffs to ensure customers are updated. This led to a significant challenge in
explaining the need for changes and why these changes were relevant to customers
wellbeing. This process demanded patience and effective communication skills to
maintain customer trust.

4.5.2 Issues due to ATMs malfunctioning

A frequent challenge the intern addressed with included handling customers

complaint regarding the malfunctioning of ATM machines. During the
malfunctioning period, it is necessary to clarify the causes of technical issues, offer
alternative solutions for money withdrawal process and extend apologies to the
inconvenience caused. Hence, it was quite a challenging task to deescalate tension
and restore customer trust.

4.5.3 System malfunctioning or non-functioning

CSD personnel typically deal with issues resultant from failure of services like SMS
alerting or electronic banking facilities. The customers usually struggle with device
restoration when they forget PINs or passwords even after they ask the bank about
this problem. Staff address such issues through a direct provision of guidance to
customers, performing diagnostic tasks on a customer's computer, or reference to a
related department to seek solutions to this.

4.6 Observed gaps

As an intern at Nabil Bank Limited, Surunga Branch working under the CSD,
several gaps were encountered during this period. These gaps are observed based on
the internship experiences over the eight-week time period.
 42

4.6.1 Limited system access to interns

Interns were restricted from accessing basic banking systems like Finacle or the
Web-Based Data Management System (WDMS). Although this allows for security
and regulatory compliance, this cut short the experiential learning aspect, confining
the interns to mere clerical activities like photocopying, scanning, and manual
record-keeping. This restriction lessened exposure to online banking procedures that
are necessary nowadays.

4.6.2 ATM and service non-functioning issues

Frequent ATM breakdowns and non-functional services like SMS alert and
electronic banking were cited as chronic complaints. Such technological loopholes
irked customers and increased the burden of CSD staff in resolving grievances,
indicating a requirement for more efficient maintenance and computer support
mechanisms.

4.6.3 Short duration of internship

The duration of the internship was deemed insufficient to fully comprehend the
operations of banking services. By the time the intern became accustomed to
procedures, the duration came to end limiting the extent in which the intern could
apply those learnings practically.

4.6.4 Limited tasks assigned

The intern was assigned repetitive clerical tasks such as filling up AOF, cheque book
issuing and recording, handling simple queries, guiding customers on how to use
ATMs, etc. instead of more diversified tasks. Due to being placed at CSD, there
were several shortcomings on learning loan processing, risk management, etc. which
are necessary for a comprehensive knowledge building.
 43

CHAPTER FIVE
 44

5. CONCLUSION
5.1 Inferences drawn

The internship at Nabil Bank Limited’s Surunga Branch offers several key
inferences about the banking industry and the role of the Customer Service
Department (CSD). Firstly, the banking system is highly dependent on structured
processes and advanced technology, such as the Web Based Data Management
System (WDMS) and centralized account processing, to ensure efficiency,
compliance, and customer satisfaction. The CSD is the initial point of contact and,
therefore, the personnel must be competent in handling diverse customer queries and
maintaining proper records to prevent errors. Secondly, the internship showcased the
necessity of flexibility in the face of an evolving regulatory environment because
changes in rules or system failures typically lead to customer complaints, which are
handled by the CSD in a timely manner. Additionally, it highlights the need for
interpersonal skills and teamwork in managing customer relations as well as
relations with other departments. Finally, the internship program itself constitutes a
significant component of the BBA course, with the objective of connecting
theoretical foundations with practical exposure, thereby enhancing employability
and job readiness. These inferences collectively highlight the complexity of banking
operations and how field exposure is critically essential to familiarize students with
the intricacies of corporate work.

5.2 Overall experiences

The internship was a profoundly enriching experience with both positive and
challenging aspects. On the positive side, the internship provided unparalleled
exposure to real-world banking operations, with the intern having the opportunity to
deal directly with customers and learn the intricacies of account management,
documentation, and service delivery. The friendly environment, with mentoring
support from the head of CSD, Mrs Anisha Adhikari, and encouragement from the
rest of the staff, was like a family and facilitated learning. The practical experience
with advanced systems like KYCMS and the customer-centric philosophy of the
bank were particularly enriching. However, constraints included the limited
accessibility of system functions through security clearances, which sometimes
 45

relegated the intern to clerical tasks, and the short duration of the eight-week
internship, which limited hands-on participation in-depth. Occasional customer
complaints due to system malfunctions or ATM breakdowns were also difficult and
required instant troubleshooting. Overall, the experience was highly valuable in
providing a realistic context of the operational and interpersonal challenges of the
banking sector but one that would have been enhanced by a longer timescale and
broader exposure to tasks.

5.3 Learning and knowledge learnt

Practical experience cannot be compared to theoretical knowledge, in any way.

Internship proved to be an amazing platform to learn things which are not only
worth exploring in corporate life, but also in real life. Its much more difficult to
work practically than it appears, needing massive dedication, commitment, and
discipline. This internship program aided me in developing as an individual in the
correct direction. I learned a lot about banking by observing, listening, and gaining
hands-on experience. Having the ability to learn and implement new skills at Nabil
was truly satisfying. Day- to-day tasks such as handling customers, performing
different tasks, interacting with colleagues and higher-level authorities, etc. taught
me about the most critical elements involved in delivering quality services and
building a spirit of togetherness at work.

Following is some of the most important lessons and learnings that I gained during
this internship.

5.3.1 Punctuality

Time is a valuable resource that helps an individual and an organization grow when
used wisely. Punctuality in an organization is required to attain the established meets
goals on time. Similarly, delivering to valued customers on time delights customers
and creates a good impression. Time management and punctuality is also equally
important for a person to succeed in his/her goals. In Nabil intern or employee all
have to reach office at 9.30 am in office wear for staffs and formal wear for interns.
 46

5.3.2 Accountability and Responsibility

A sense of responsibility and accountability is a must in any organization, with some

tasks being assigned to employees in accordance with their position and role. Each
employee is meant to be well aware of his or her duties and act accordingly to
execute them. At Nabil, I was assigned certain tasks to do under the supervision of
staff members, for which they have to take charge and be responsible. This
contribute me to be accountable and responsible towards the tasks I was assigned.

5.3.3 Standards rules and regulations in banking

As an intern, I learned the importance of strictly following the bank’s policies and
industry regulations, such as anti-money laundering (AML) and know your customer
(KYC) requirements. This ensures that all transactions and customer interactions are
conducted legally and ethically, protecting both the bank and its customers. It taught
me the value of compliance in maintaining trust and integrity in the financial sector.

5.3.4 Customer-centered strategy

During my internship, I realized that customer’s queries need to be prioritized in

banking. By listening well to customers and being aware of their goals, personalized
services were delivered. This strategy not only enhances customer satisfaction but
also fosters long-term relations, which are vital for bank success.

5.3.5 Team work

The internship taught the significance of teamwork. It is necessary to adapt toward

the team instead of pursuing goals and objectives that don't align with team's
objectives. Moreover, it was highly observed that being a part of a team and working
as team provide better results.

5.4 Conclusion

Summing up, the internship done at Nabil Bank Ltd. was full of practical learning
and skills that acted as a call for both personal and professional development. An
intern, by working in the Customer Service Department on a day-to-day basis, learns
 47

the way operations related to banking are conducted and effective interaction with
customers in processing things smoothly and quickly. Such skills are extremely
important and definitely helpful in future growth for a person who needs to work in a
customer-oriented department. Colleagues were always willing to help, making the
process of learning enjoyable and rewarding. This experience has provided that vital
boost to my confidence level and interaction skills, which would be helpful in
performing any further job more competently. Lessons learnt like customer
satisfaction and ethical banking practices, are going to be very valuable in
overcoming the professional challenges ahead. Besides, the bank's commitment to
stakeholders and its brand promise of "Together Ahead" rightly synchronized with
my core values and, hence, added immensely to the experience. This internship was
a learning experience that transformed me into a professional with all the tools and
the right mindset to succeed in the banking sector and beyond.
 48

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 50

Annexure

Annexure I: Internship Topic Performa

LINCOLN UNIVERSITY COLLEGE

FACULTY OF BUSINESS AND ACCOUNTING

Name of The Student : Mausham Timsina

LUC Reg. No. : LC00022000400
College & Address : Balmiki Lincoln College, Birtamode-01, Jhapa
Class, Section (Optional) : BBA 8th Semester, Section A
Mobile No. : 9825912089
E-mail : timsinamausham@gmail.com
Name of the Organization : Nabil Bank Limited, Surunga Branch
(Address) : Kanakai Municipality-03, Jhapa
Date of Joining : 2024 November 14
Internship Topic : A Study on the Role of Customer Service
Department at Nabil Bank Limited
Location : Kanakai Municipality-03, Jhapa
Other Responsibilities : Carrying out customer service-related tasks and
facilitating customers to have quality services.

Company’s Designated Supervising Authority*

Name& Designation : Mrs. Archana Dahal, Branch Manager
Phone No (O) : 023-552680
Mobile : 9862675213
E-Mail : Archana.dahal@nabilbank.com
Signature of Authority :
(with stamp)

To be Sent to: the faculty guide through email.

❖ Change of Topic shall not be allowed later on.

This information is required to keep track of student’s performance during internship
through telephonic calls and surprise visits.
 51

Annexure II: Fortnightly Progress Report

College Name : Balmiki Lincoln College

Name of the Student : Mausham Timsina

LUC Reg. No. : LC00022000400

Section, Class : BBA 8th Semester, Section A
(Optional)

Period of Internship : From: 2024-Nov-14 To: 2025-Jan-14

Name and address of the Organization: Nabil Bank Limited, Surunga Branch,

Kanakai Municipality-03, Jhapa

Phone No. : 023-552680 Fax:

E-mail : customercare@nabilbank.com

1. Name and Designation of the Internship Incharge in the organization

Name : Mrs. Anu Karki

Designation : Operation In-charge

Phone No. : 023-552680 E-mail: anu.karki@nabilbank.com

2. Internship Title: A Study on the Role of Customer Service Department at Nabil Bank
Limited
Progress during the fortnight (From: 11-15-2024 To: 11-28-2024)

During the first 15 days, I was involved in clerical tasks such as issuing chequebooks and
ATM Cards, filing voucher, preparing pre-numbering, attending customer queries and
account onboarding etc. The significant lesson in this period was how critical it is to verify
and authenicate the customer. Over the end of first fortnight, the progresses were remarkable
as I learned authenication, verification and compliance are highly essential to ensure
qualitative services.

Signature of the Student:

Name of Student : Mausham Timsina

LUC Reg. No. : LC00022000400

 52

Annexure III: Fortnightly Progress Report

College Name : Balmiki Lincoln College

Name of the Student : Mausham Timsina

LUC Reg. No. : LC00022000400

Section, Class : BBA 8th Semester, Section A
(Optional)

Period of Internship : From: 2024-Nov-14 To: 2025-Jan-14

Name and address of the Organization: Nabil Bank Limited, Surunga Branch,

Kanakai Municipality-03, Jhapa

Phone No. : 023-552680 Fax:

E-mail : Archana.dahal@nabilbank.com

1. Name and Designation of the Internship Incharge in the organization

Name : Mrs. Anu Karki

Designation : Operation In-charge

Phone No. : 023-552680 E-mail: anu.karki@nabilbank.com

2. Internship Title: A Study on the Role of Customer Service Department at Nabil Bank
Limited
Progress during the fortnight (From: 11-29-2024 To: 12-12-2024)

During the second fortnight period, tasks like account onboarding, customer followup,
currency exchange, creating demat account, etc were carried. This phase provided crucial
insights on foreign currency exchange, in-person presence of customers for ATM cards, etc.
This measures are taken to ensure security of financial instruments and legal
acknowledgment of foreign currency.

Signature of the Student:

Name of Student : Mausham Timsina

LUC Reg. No. : LC00022000400

 53

Annexure IV: Fortnightly Progress Report

College Name : Balmiki Lincoln College

Name of the Student : Mausham Timsina

LUC Reg. No. : LC00022000400

Section, Class : BBA 8th Semester, Section A
(Optional)

Period of Internship : From: 2024-Nov-14 To: 2025-Jan-14

Name and address of the Organization: Nabil Bank Limited, Surunga Branch,

Kanakai Municipality-03, Jhapa

Phone No. : 023-552680 Fax:

E-mail :

1. Name and Designation of the Internship Incharge in the organization

Name : Mrs. Anu Karki

Designation : Operation In-charge

Phone No. : 023-552680 E-mail: anu.karki@nabilbank.com

2. Internship Title: A Study on the Role of Customer Service Department at Nabil Bank
Limited
Progress during the fortnight (From: 12-13-2024 To: 12-26-2024)

The thirssd phase of internship explored tasks such as account creation including corporate
account as well as individual account. The major progress achieved during this fortnight was
timely creation of accounts and proper compliance needed for creating. Problem-solving
skills were also enhanced due to regularly following up customers and addressing their
issues.

Signature of the Student:

Name of Student : Mausham Timsina

LUC Reg. No. : LC00022000400

 54

Annexure V: Fortnightly Progress Report

College Name : Balmiki Lincoln College

Name of the Student : Mausham Timsina

LUC Reg. No. : LC00022000400

Section, Class : BBA 8th Semester, Section A
(Optional)

Period of Internship : From: 2024-Nov-14 To: 2025-Jan-14

Name and address of the Organization: Nabil Bank Limited, Surunga Branch,

Kanakai Municipality-03, Jhapa

Phone No. : 023-552680 Fax:

E-mail : customercare@nabilbank.com

1. Name and Designation of the Internship Incharge in the organization

Name : Mrs. Anu Karki

Designation : Operation In-charge

Phone No. : 023-552680 E-mail: anu.karki@nabilbank.com

2. Internship Title: A Study on the Role of Customer Service Department at Nabil Bank
Limited
Progress during the fortnight (From: 12-27-2024 To: 01-13-2025)

During the last fortnight, various tasks such as record keeping, KYC update, C-ASBA
registration, prenumbering cheques, etc were carried. These activities were carried to ensure
files are kept at their respective place for easy retrieval in future. As customers' information
might change, it is necessary to ensure their up-to-date information are recorded in the
system. Overall, these activities further enlightened my knowledge on importance of proper
record keeping, tallying chequebooks and their alloted cheque number.

Signature of the Student:

Name of Student : Mausham Timsina

LUC Reg. No. : LC00022000400