AN INTERNSHIP REPORT ONHIMALAYAN BANK LIMITED (HBL)

Submitted By:Ravi ShresthaTU Registration No.: 7-2-388-81-2009Exam Roll No.: 6770/09

Submitted To:Office of the DeanFaculty of ManagementTribhuwan University

in partial fulfilment of the requirement for degree ofBachelor of Business Administration (BBA)

Old Baneshwor, KathmanduAugust, 2013

RECOMMENDATION

This is to certify that the fieldwork assignment report

SUBMITTED BY:

RAVI SHRESTHA

Exam Roll No: 6770-09

T.U. Registration No: 7-2-388-81-2009

Entitled:An Internship Report on Himalayan Bank Limited

has been approved by the Kantipur College of Management & Information Technology.This field work assignment report is forwarded for examination/evaluation.

_____________________ MR. Sharad Sigdel

Internship Report Supervisor

DECLARATION

I hereby declare that the Internship report entitled An Internship report on Himalayan Bank Limited submitted to Office of the Dean, Faculty of Management, Tribhuvan University is my original work, done in the partial fulfilment of the requirement of Bachelor in Business Administration (BBA)

__________________RAVI SHRESTHABBA 2009-2013Roll No.: 6770/09TU Reg. No.: 7-2-388-81-2009

ACKNOWLEDGEMENTFirst of all, I would like to express my deep gratitude to Tribhuvan University for including such a wonderful program as part of the curriculum for Bachelor in Business Administration. This opportunity helps to extend my theoretical knowledge to the real world. I also would like to thank management of Kantipur College of Management and Information Technology for the guidance in the preparation of this report. My Appreciation also goes to the Himalayan Bank Limited for providing me with the opportunity of doing internship in their renowned organization. The whole family of Himalayan Bank has supported me in coping with the surroundings and helped me to learn various things during the duration of Internship. I would like to offer my heartfelt appreciation to my report supervisors Mr. Sharad Sigdel and Mr. Aman K.C. for their entire guidance, valuable suggestions, encouragements and support throughout this report.My Appreciation also goes to the Himalayan Bank Limited for providing me with the opportunity of doing internship in their renowned organization. The whole family of Himalayan Bank has supported me in coping with the surroundings and helped me to learn various things during the duration of Internship. Lastly, I would like to give gratitude to my family members and friends for their moral support throughout the report. Without their support, I never would have completed my report so effectively.

Ravi Shrestha

TABLE OF CONTENTSTitlePage No. Cover PageRecommendation LetterInternship Completion Letter DeclarationAcknowledgementList of TablesList of FiguresAbbreviationsChapter One: Introduction1-31.1 Background of the Study11.2 Objectives of the Study11.3 Methodology 21.3.1 Organization Selection21.3.2 Placement21.3.3 Duration21.3.4 Nature & Source of Data31.4 Limitations of the Study3Chapter Two: Introduction of Banking Industry4-82.1 Introduction of Banking Industry42.2 Evolution of Banking Industry42.3 Evolution of Banking Industry in Nepal52.4 Overview of Nepalese Financial Market62.5 Types of Bank 72.5.1 Commercial Bank8Chapter Three: Introduction of Organization9-153.1 Introduction of Himalayan Bank Limited93.2 Vision, Mission & Objectives103.3 Capital Structure103.4 Organization Structure of HBL (New Road Branch)113.5 Products & Services Offered113.5.1 Products123.5.2 Services133.6 Financial Analysis of HBL143.7 SWOT Analysis15Chapter 4: Analysis of Activities Done 16-344.1 Customer Service Department (CSD)164.1.1 Activities done in Customer Service Department164.1.2 Problems Identified in Customer Service Department204.1.3 Problems Solved in Customer Service Department214.1.4 Analysis of Customer Service Department214.2 International Banking Department224.2.1 Activities Done in the International Banking Department224.2.2 Problem Identified in International Banking Department254.2.3 Problems Solved in International Banking Department264.2.4 Analysis of International Banking Department264.3 Credit Department274.3.1 Activities Done in the Credit Department274.3.2 Problem Identified in Credit Department294.3.3 Problems Solved in Credit Department304.3.4 Analysis of Credit Department304.4 Remittance / Bills Department 314.3.1 Activities Done in the Remittance / Bills Department314.3.2 Problem Identified in Remittance / Bills Department334.3.3 Problems Solved in Remittance / Bills Department344.3.4 Analysis of Remittance / Bills Department34Chapter Five: Conclusion and Lessons Learnt35-365.1 Conclusion355.2 Lesson Learnt36BibliographyAnnex

LIST OF TABLESTableTitlePage No.2.1Growth of Financial Institution73.1Share Ownership114.1Number of Data Entry Done by Intern in International Banking24

LIST OF FIGURESFigureTitlePage No.1.1 Gantt Chart of Duration of Internship23.1Deposit Products of HBL123.2Loan Products of HBL133.3Services of HBL13

ABBREVIATIONA.D.Anno DominiATMAutomated Teller MachineBBABachelor in Business AdministrationBi. Bi. Ni.Bideshi Binimaye NiyemawaliB.S.Bikram SambatCAPCredit Approval PackageCEOChief Executive Officer CIB Credit Information BureauCLR Credit Liability ReportCSDCustomer Service Department DAP Document Against PaymentDept. DepartmentECCElectronic Cheque Clearing etc.EtceteraFOMFaculty of Management GDPGross Domestic ProductHBLHimalayan Bank Limited HMG/N His Majestys Government of NepalIntl Internationali.e.That isKYCKnow Your Customer LCLetter of Credit NGONon Government OrganizationNRBNepal Rastra BankROAReturn on AssetsROE Return on EquityRMRelation ManagersSMSShort Message ServiceSWIFTSociety of Worldwide International Financial TelecommunicationTUTribhuvan University

CHAPTER ONE INTRODUCTION1.5 Background of the Study Internship program has been designed for the partial fulfilment of the degree of Bachelor in Business Administration (BBA). BBA is a program launched by Tribhuvan University (TU) under the Faculty of Management (FOM), with eight semester's provision covering an international standard period of four years. It covers class lectures, group discussions, case studies, seminar, practical exercises, project work, term paper and internship. BBA is a broad education program to prepare the students for much advanced middle level leadership in both private and public sector. The purpose of the program is to develop and strengthen the students knowledge and skills. With regard to this, FOM has combined internship with the course and make it compulsory for the time period of two months. An internship is a directed, practical learning experience, outside of the normal classroom setting, in which students sharpen skills, gain experience through work on advanced productions, apply classroom learning to professional settings or projects, and learn firsthand how professional companies or organizations operate. The internship exposes the students interpersonal relationships that a job requires. This report is based on the two month internship experience and knowledge gained on the internship time duration. It mainly focuses on the job done by the intern and experienced gained. It also includes the things which intern has seen during the period. 1.6 Objectives of the StudyThe general objective of this study is to fulfil the requirements of the degree of BBA. The main objective of this study is to explain the experience of the intern during the internship period. The other specific reasons are as follows: To know about the banking sector. To know about the institution where the internship is done. To get the knowledge about the process of different work. To know the activities done by the intern. To analyze different departments of the bank.1.7 Methodology Methodology is the description of the procedure followed while collecting the necessary data and information needed for research work and report preparation. Various data were collected by observation, different websites, annual report of Himalayan Bank Limited (HBL), etc.1.3.1 Organization SelectionFor the internship, intern had selected the Himalayan Bank Limited, New Road branch. HBL has been one of the successful commercial banks in Nepal for al long period of time. It had been a great opportunity for intern to acquire knowledge and skills during the internship period. The selection of the organization has been possible through the personal references and with few other documents. After the few follow-up, HBL provided the internship during the interval of 15th May to 14th June 2013. 1.3.2 PlacementIntern had been placed in the different departments during the duration of the internship as per the culture of Himalayan Bank Limited. Intern had worked for the time interval of two months and spent different time periods in different departments like customer service, remittance, international banking and credit. Intern had worked with full enthusiasm and confidence in the entire department.1.3.3 Duration The duration of internship period has been defined for 8 weeks or 6 credit hours (i.e. 96 hours of working time at any financial institution for finance specialization students) by FOM, TU. Intern had the opportunity to work for two months starting from 15th of May to 14th of July. The intern had been placed in various departments and the duration of time interval in those departments are shown in the following figure:Figure 1.1: Gantt Chart of Duration of Internship

Department< ----------------------- 15th May to 14th July -------------------------- >

Customer Service15th May- 1st June

Intl Banking2nd June 20th June

Credit21st June 7th July

Remittance8th July 14th July

1.3.4 Nature & Source of DataPrimary and secondary data has been used during the preparation of the report, and below is the brief description about the nature and sources of data: Primary DataThe primary data were collected from day to day activities, discussion and information provided by the different officials of various departments.Secondary DataThe secondary data were collected from the various sources like annual report, broachers, official websites and other publications.1.8 Limitations of the StudyThere have been some limitations on the report despite the hard work to make it fully approved. Some of the limitations are described below: The analysis is only based on the New Road branch. The whole department analysis and information are not included in this report. The information collected is not sufficient due to the short period of time interval. The interpretations are made under personal judgment, which is not guided by the experts and professionals. The study may not be applicable to other organizations of similar nature.

CHAPTER TWO INTRODUCTION OF BANKING INDUSTRY2.1 Introduction of Banking IndustryA bank is a financial institution which deals with deposits and advances and other related services. It receives money from those who want to save in the form of deposits and it lends money to those who need it. In other words, the bank is the institution that makes money in terms of receipt of income and payment of expenditures and deposits. So, the bank creates credit by providing loans to individual, traders and businessman. The bank also receipt deposits from the customer to safeguard it and promise to repay at the time of their need. Interest is provided for the money deposited and taken on the loan provided by the bank. The function of the bank is changing day by day. The development of new services by the banks around the world is changing the definition along with it. Initially, the banks are considered as the institution that only takes deposit and lends money to the needed persons. But, the services have been innovated to the whole new level. Now-a-days, the bank provides an easy way to pay bills through the maintained account. Not only that, they provide many services such as accepting various deposits, making different kinds of loans, providing means of payment, electronic banking, and other services such as travellers cheques and money orders. An establishment authorized by a government to accept deposits, pay interest, clear checks, make loans, act as an intermediary in financial transactions, and provide other financial services to its customers. Business Dictionary So, the bank can be described as the financial institution whose major function is to provide the loan and to deposit the money from the people along with providing the various financial services to their customers.2.2 Evolution of Banking IndustryHistory of Banking begins with the first prototype banks of merchants in the ancient world, which made grain loans to farmers and traders who carried goods between cities. This began around 2000 BC in Assyria and Babylonia. Later, in ancient Greece and during the Roman Empire, lenders based in temples made loans and added two important innovations: they accepted deposits and changed money.Banking, in the modern sense of the word, can be traced to medieval and early Renaissance Italy, to the rich cities in the north such as Florence, Venice and Genoa. The Bardi and Peruzzi families dominated banking in 14th century Florence, establishing branches in many other parts of Europe. The oldest bank still in existence is Monte dei Paschi di Siena, headquartered in Siena, Italy, which has been operating continuously since 1472.The development of banking spread from northern Italy through Europe and a number of important innovations took place in Amsterdam during the Dutch Republic in the 17th century and in London in the 18th century. During the late 18th century, J.P. Morgan and Company emerged at the head of the merchant banks and nearly created the monopoly in the market. Later, the panic in the collapse of the share end that era. Then, the struggle continues until the World War II as it saved the banking industry from complete destruction. It lifted the downward spiral of the banking sector as the billions of dollar is needed for the war. Later the 2007-08 financial crisis caused many bank failures, including some of the world's largest banks, and provoked much debate about bank regulation.Although history has altered the fine points of the business model with the modern telecommunications and computing mechanism, the banks will never stop to perform this primary function.2.3 Evolution of Banking Industry in NepalThe history of banking in Nepal is believed to be started from the time of Prime Minister Ranoddip Singh in 1877 A.D. he introduced many financial and economic reforms. The Tejaratha Adda was established at that time and its basic purpose was to provide credit facilities to the general public at a very concessional interest rate. The Tejarath Adda disbursed credit to the people on the basis of collateral of gold and silver. All employees of government were also eligible for this type of loan, which was settled by deducting from their salary. Tejaratha Adda extended credit only; it did not accept deposits from the public.In 1937 A.D. Nepal Bank Act was formulated which established the Nepal Bank Limited; the first commercial bank in Nepal which was founded by Judda Samsher. Later, the countrys central bank, Nepal Rastra Bank (NRB) was established in 1956 by Nepal Rastriya Bank Act of 1955, after two decades of Nepal Bank Limited having been in existence. The need of the central bank emerges due to the Sadar Mulukikhana Adda (local treasury of the government) which issued currency notes. At that time, the foreign exchange reserves of Nepal were maintained by Reserve Bank of India who circulated the Nepalese currency as well as Indian currency in the Nepalese economy. A decade after the establishment of NRB, Rastriya Banijya Bank (RBB), a commercial bank under the ownership of His Majestys Government of Nepal (HMG/N) was established. Thereafter, HMG/N adopted open and liberalized policies in the mid 1980s reflected by the structural adjustment process, which included privatization, tariff adjustments, liberalization of industrial licensing, easing of terms of foreign investment and more liberal trade and foreign exchange regime was initiated. With the adoption of liberalization policy, there has been rapid development of the domestic financial system both in terms of number of financial institutions and as ratio of financial assets to the GDP.2.4 Overview of Nepalese Financial MarketAs the statistics of NRB, by the end of mid July 2012, altogether 265 banks and non- bank financial institutions licensed by NRB are in operation. Out of them, 32 are A class commercial banks, 88 B class development banks, 69 C class finance companies, 24 D class micro-credit development banks, 16 saving and credit co-operatives and 36 NGOs. In mid- July 2011, the commercial banks branches reached to 1425 with the population of nineteen thousand per branch. Present development of financial institutions in Nepal is reflected in table below:In the Nepalese financial market, the total capital fund in the 2012 A.D. is Rs 117,979.6 million among which commercial banks covers 65.4% of it. During the year, the total borrowing reaches to Rs 34,392.3 million along with the deposits of Rs 1,076,629.3 million. In 2012, the other liabilities and liquid fund of the institutions reaches to Rs 126,163.1 million and Rs 241,900.3 million respectively. Besides these, the total investment equals to Rs 209,934.4 million; loan and advances reaches to Rs 807,579.3 million and other assets is only Rs 94,913.2 million.Table 2.1: Growth of Financial InstitutionTypes of FinancialInstitutionsMid July 2011

19851990199520002005201020112012

Commercial Banks35101317273132

Development Banks223726798788

Finance Companies214560797969

Micro-credit Development Banks4711182124

Saving & credit co-operatives61920151616

NGOs (Financial Intermediary)747453836

Total574498181263272265

(Source: Bank and Financial Institutions Regulation Department, NRB)2.5 Types of Bank Different types of bank still exist in the world and they are differentiated by their nature of function. Generally, people perceive the commercial bank as the general bank but their perception is wrong as there are many other types of bank. Some of them are as follows: Central Bank Commercial Bank Development Bank Exchange Bank Saving Bank EXIM Bank (Export & Import Bank) Co-Operative Bank Other Labour Bank Regional Bank2.5.1 Commercial BankCommercial Bank is a financial institution that provides services, such as accepting deposits, giving business loans and auto loans, mortgage lending, and basic investment products like savings accounts and certificates of deposit. The traditional commercial bank is a brick and mortar institution with tellers, safe deposit boxes, vaults and ATMs. For the development of the commercial sector it provides different facilities like capital, information supply, etc. Commercial bank means a bank which operates currency exchange transactions, accepts deposits, provide loan; performs, dealing, relating to commerce except the banks which have been specified for the co-operative, agricultural, industry of similar other specific objective. Section 2 (a) of Commercial Bank Act 2013 B.S.There are some functions of commercial bank and they are: Accepting various types of deposits Lending money to needed sectors Letter of credit i.e. credit creation Issue of guarantee Agency function General utility function Money remittance Bills acceptance and othersThere are currently 31 commercial banks licensed by NRB in Nepal. The detail of their establishment date and paid up capital are given in Annex I.

CHAPTER THREE INTRODUCTION OF ORGANIZATION3.1 Introduction of Himalayan Bank LimitedHimalayan Bank Limited (HBL) is one of the largest and reputed private sector banks of Nepal. The Bank was incorporated in 1992 by a few eminent individuals of Nepal in partnership with the Employees Provident Fund and Habib Bank Limited of Pakistan. The bank commenced its operations in January 1993. Himalayan Bank is also the first commercial bank of Nepal with most of its shares held by the private sector of Nepal. Besides commercial banking services, the bank also offers industrial and merchant banking service. Despite the cut-throat competition in the Nepalese Banking sector, HBL has been able to maintain a lead in the primary banking activities- Loans and Deposits.Legacy of Himalayan lives on in an institution that's known throughout Nepal for its innovative approaches to merchandising and customer service. Products such as Premium Savings Account, HBL Proprietary Card and Millionaire Deposit Scheme besides services such as ATMs and Tele-banking were first introduced by HBL. Other financial institutions in the country have been following HBL lead by introducing similar products and services. Therefore, HBL stand for the innovations that it brings about in this country to help its Customers besides modernizing the banking sector. With the highest deposit base and loan portfolio amongst private sector banks and extending guarantees to correspondent banks covering exposure of other local banks under credit standing with foreign correspondent banks.All Branches of HBL are integrated into Globus (developed by Temenos), the single Banking software where the Bank has made substantial investments. This has helped the Bank provide services like Any Branch Banking Facility, Internet Banking and SMS Banking. Living up to the expectations and aspirations of the Customers and other stakeholders of being innovative, HBL very recently introduced several new products and services. Millionaire Deposit Scheme, Small Business Enterprises Loan, Pre-paid Visa Card, International Travel Quota Credit Card and Consumer Finance through Credit Card are some of the products and services. HBL also has a dedicated offsite Disaster Recovery Management System. Looking at the number of Nepalese workers abroad and their need for formal money transfer channel; HBL has developed exclusive and proprietary online money transfer software- HimalRemitTM. By deputing HBL staff with technical tie-ups with local exchange houses and banks, in the Middle East and Gulf region, HBL is the biggest inward remittance handling Bank in Nepal. It shows that HBL has an outside-in rather than inside-out approach where Customers needs and wants stand first.HBL has established a strong network over the country by using its branches. HBL is aiming for increasing its perimeter by covering area as much as possible. Every year, HBL is increasing its branches and moving towards its aim. Currently there are 41 branches altogether in and outside the valley. The detail list of branches is shown in Annex III.3.2 Vision, Mission & ObjectivesHimalayan Bank Limited holds of a vision to become a Leading Bank of the country by providing premium products and services to the customers, thus ensuring attractive and substantial returns to the stakeholders of the Bank. The Banks mission is to become preferred provider of quality financial services in the country. There are two components in the mission of the Bank; Preferred Provider and Quality Financial Services; therefore HBL believe that the mission will be accomplished only by satisfying these two important components with the Customer at focus. The Bank always strives positioning itself in the hearts and minds of the customers.To become the Bank of first choice is the main objective of the Bank.3.3 Capital StructureThe total authorized share capital of HBL is Rs. 3 billion among which Rs. 2.4 billion shares have been issued. Last year, HBL distributed the bonus share of Rs. 400 million and this year HBL is planning to distribute 360 million rupee worth of shares in bonus to its shareholders. The share ownership of the HBL is shown in the following table:

Table 3.1: Share OwnershipParticularsAs on July, 2012

%Share Capital

1. Domestic Ownership80.001,920,000,000

1.1 Nepal Government --

1.2 "A" Class Licensed Institutions--

1.3 Other Licensed Institutions --

1.4 Other Entities 65.001 ,560,000,000

1.5 General Public 15.003 60,000,000

1.6 Others--

2. Foreign Ownership 20.00480,000,000

Total 100.002,400,000,000

(Source: 20th Annual Report, HBL)3.4 Organization Structure of HBL (New Road Branch) Himalayan bank limited has proper structure from top to bottom. The corporate office controls all the branches, and the corporate office is governed by CEO of the bank under the supervision of Board of Directors (details of BOD is given in Annex IV). New Road branch is handled by the branch manager and a structural hierarchy follows through the top. The detail of organization structure of HBL, New Road Branch is shown in Annex II. 3.5 Products & Services OfferedHimalayan bank offers various kinds of products and services to its customers to fulfil their demand. The bank is providing its services through a wide network of 41 branches throughout the nation; 17 of them located inside the Kathmandu valley and other 24 are located around the country. All the branches of the bank are connected through Anywhere Branch Banking System (ABBS), a facility which enables a customer to do banking transactions from any of the branches irrespective of having account in any branch. Products such as Premium Savings Account, Super Premium Saving Account, Himal Saving Account (Zero Balance Account), HBL Proprietary Card and Millionaire Deposit Scheme are being provided by HBL. Besides these, ATMs services, Internet banking and SMS banking are some of its services along with HimalRemit services are being provided to its customers. Small Business Enterprises Loan, Pre-paid Visa Card, International Travel Quota Credit Card and Consumer Finance through Credit Card are some of the other products and services.3.5.1 ProductsFigure 3.1: Deposit Products of HBL

Figure 3.2: Loan Products of HBL

3.5.2 ServicesFigure 3.3: Services of HBL

3.6 Financial Analysis of HBLFinancial situation of Himalayan bank is currently very good. According to its fiscal year statement as on July, 2012 the bank has maintained its capital adequacy ratio above the required limit. The tier I capital ratio of the bank is 9.60% while the total capital ratio is being maintained at 11.02%. HBL earned the net profit of about Rs. 958.6 billion in the same fiscal year; which was more by 7.33% from the last years net profit. The accumulated profit was Rs. 72.9 million during the last year. The Himalayan bank has been planning for the any contingencies that might come its way; so the bank has been keeping reserves and funds which now has reached to the amount of Rs. 1.87 billion. During the same fiscal year, HBL accepted the total deposits of Rs. 47.73 billion in interest bearing account and about Rs. 5.56 billion in non-interest bearing account. The bank held the total cash balance of Rs. 951.3 billion at the end of same fiscal year including both local and foreign currency. The bank also believed that it has the balance of Rs. 3.98 billion in the NRB while the NRB statement shows the amount of Rs. 4.05 billion. The Himalayan bank has the net loan total of Rs. 34.97 billion at the end of the fiscal year. The net loan of HBL was increased by 10.77% from the last year. From the loan, HBL has earned the interest total to Rs. 4.72 billion. The bank has invested in other securities up about Rs. 1.26 billion among the total of Rs. 10.03 billion in fiscal year 2011/12.

3.7 SWOT AnalysisStrength Qualified employees Good organization culture Proper internal communication Computerized system using latest technology Branch Coverage Innovation Remittance serviceWeakness Policy making ATM service Extra Charges Less use of marketing strategy

Opportunity Favourable law for the banking sector Increasing remittance market Increasing knowledge of banking sector to general publicThreats Political instability Domestic conflict Limited resources Threats of new entrance Threat of substitute Rivalry among existing firm

CHAPTER FOUR ANALYSIS OF ACTIVITIES DONE 4.1 Customer Service Department (CSD)Customer service department is most important department to develop the good impression to the customer. CSD also known as the front desk helps the customer to solve their query. Customer Service is the commitment to providing services to external and internal customers, including providing information, technical support and quality of services in a timely manner.Customers are the main wealth of the organization. A loyal customer always uses the product and services of the bank without looking into the other alternatives. Thats why loyal customers are the main source of success of the organization. Its the duty of the CSD to maintain the relationship with the customers and make them loyal to the organization.CSD performs various tasks in day to day operation. The basic tasks of CSD are account opening, account closing / transfer, ATM card issue, cheque issuing, bank statement issue, balance certificate issue, and many more. 4.1.1 Activities done in Customer Service DepartmentIntern had to perform various activities in CSD and some of them are described below:Providing general informationCustomer service department is the place where many people come to get information regularly. It is the duty of an intern to provide information that is required by them. Generally the intern had to provide information about the product and services of HBL, their queries, regulations and documents required in various cases, the exact place to consult for their requirement, etc. Opening an AccountAccount opening is very important thing in the organization. It not only helps to increase the number of customer in the bank, it also helps to expand its business. The more customers the organization has, the more success it can get. Intern had huge responsibility in the opening an account. Firstly intern had to provide the information regarding the various accounts that HBL have with all the benefits and features of the accounts. Then intern had to tell about the necessary documents that are required to open an account. If the person is satisfied with the product and have all the documents then inter had to provide the required forms necessary to open an account. The next thing intern had to do is to check all the documents are valid or not and the data in the forms are correctly written or not. Then intern had to place all the document copy in an order and pass it to the office for further process. After the process, inter had to bring the document to CSD department head and operation in charge to get sign and officially open an account.Making New Account FileIntern had to make the file for the new account opening. According to the nature of the account, the file is selected. Intern had to specify the name and the customer identification number in front of the file clearly. Intern also had to put the letter of opening in the file and in the box containing all the letter of opening.Closing or Transfer an AccountCustomers sometimes have to close their account or to transfer it to another branch. Its the duty of an intern to provide the necessary form to the customer and tell them about the procedure and charge of Rs. 500 for closing an account. After the submission of form along with the cheque slips (if any) by the customer, the intern had to write the information on the register about the customer and reasons to close or transfer the account. These reasons help the bank to improve their services in future. Then the intern had to put cancellation stamp on those cheque slips and register it into different register. The further process is done by the officer to close or transfer an account and then inter had to visit different departments (cash, remittance, letter of credit, credit and locker) to make sure everything is clear to close or transfer that account. Preparing Cheque book Intern had to prepare the cheque book according to the request of the customer. The responsibility of the intern is to fill up the new cheque requisition slip and tear the cheque slips from the printer. Then intern had to make sure that the number in the cheque requisition slip and the cheque slip are same. After that, intern had to place the cheque slip in order and bind it with the cheque cover. During the process, the new requisition slip must be placed carefully between the cheque slips and intern had to remember the total number of cheque slips and had to calculate where to put that requisition slip. Intern also had to search the cheque book from the box at the time of issuing the cheque book. ATM Card DistributionATM card distribution is one of the day to day activities that an intern had to do in CSD. The intern searches the ATM card of the customer who asks for it. If the card is found then the intern had to search the document related to the card. Then its the duty of inter to request the customer to fill out form of acknowledgement of card receipt. The intern had to check if there is copy of identification or not; if not, then the intern had to ask for it and have to photocopy it to attach with the form. The intern also had to check if the customer is taking new card or replacing old with new; if the customer is replacing then the inter also had to ask for the old card and then punch the hole after the process. After that, inter had to enter the data in the register and pass it to the officer for the further process. ATM Pin DistributionDue to the system change, HBL had updated the pin number of all the ATM card holders who had the expiry date above June 2016. Below that date, the customers have to replace the card. So due to this reason, the customer regularly comes in the HBL New Road branch to ask for their pin number. And it is the intern who had to provide them the pin number after searching the pin in the pin collection box. The intern requests the customer to fill out the form of acknowledgement of pin receipt and asks for their identification to attach along with the form after the copy. Then, the intern had to register the data in the pin register and pass it to the officer to issue it. Printing Bank StatementBank statement is the list of transaction that has been occurred during the certain period of time. Intern had to request the customers who are interested in printing out their bank statement to write their account number, date from which the statement is required and their signature. Intern first had to check their account number and their signature because the statement is only provided to the account holder. Then, intern should the print the statement from the date they have asked for using the T24 software. Balance CheckMany customers frequently ask for the balance in their account and the amount in the cheques they are holding. So, intern had to check the balance by entering the account number in the respective search heading of the software. Intern can tell the amount to the account holder. Intern cant tell the amount of the account to the person holding the cheque but can tell if there is sufficient amount in the account or not to withdraw the cheque. Signature VerificationSometimes intern had to check the signature in the different forms. Intern also had to check the signature of the cheque on the request of the customer and sometime when the customer forgets their signature. Handling Phone CallsHandling phone calls are as important as handling the customers face to face. Through phone calls, the customers ask many different questions and require different information. Intern had the responsibility to handle the phone calls and solve the query of the customers. If intern doesnt know the answer then intern had to pass the call to the officer. Making Phone Calls to CustomersIntern had to call the customer and inform them about their ATM cards which have arrived in the bank. Intern also had to contact the customer regarding different issues like asking for the different document, to fill out the Know Your Customer (KYC) form, etc. Filing Intern had to update the file of different customers on day to day basis. The transaction that occurred in the CSD must be placed in the file for the future reference. The transaction includes issuing of ATM card or pin number, change of signature, request of the customer on various matters, change in nominee, etc. Intern had to put the documents by checking the customer identification number which is provided at the time of opening an account. PhotocopyPhotocopy is done in the CSD on a regular basis. Important documents are needed for future reference if in case any misunderstanding happens. So, its the duty of intern to photocopy the document and place where it belongs. 4.1.2 Problems Identified in Customer Service DepartmentDuring the internship period, intern had identified few problems in CSD and they are mentioned below:Workload ProblemWorkload problem arises when the employees are unable to meet the need of the customers. During the internship period, intern had seen that many customers were unsatisfied by the services provided due to the long waiting time. Workload problem is caused by the insufficient number of employees in the CSD. Problem in Grievance Handling Intern had identified that the method of handling the grievances are improper. Grievance handling problem is occurred due to the lack of defined procedure and inflexible rules towards small issues. Problem in Filling FormsDifferent forms are filled everyday in the CSD and many people finds many terms difficult to understand while filling the form. The intern had identified that some of the forms contain the technical words and terms which causes confusion in customers mind. ATM ProblemDuring the internship period, intern had identified that large number of customer complained about the ATM service. The customers main complaint is about the ATM card process during the transaction. The other problems related to ATM are time duration to get new card, lack of information on card receiving and time period to collect the card. Lack of BrochureMany customers want the brochure during their visit in the CSD to know about the different accounts, there features and the interest rates provided in them. But, due to the regular change in the banks interest policy, intern had identified that there is lack of proper updated brochure in the department. 4.1.3 Problems Solved in Customer Service DepartmentIntern had solved few problems during the period of internship in CSD and they are described below: Helping the customer to fill out the different forms and describing the complicated terminologies. Describing different accounts along with its features and interest due to the lack of brochure. Dealing different customers who have different attitude accordingly. Finding the missing documents. Informing the problem that raise during the interaction with customers to the authorized person for the solution. 4.1.4 Analysis of Customer Service DepartmentThere are lots of work that intern is not allowed to do during the internship period in CSD. However, intern had analyzed the work done by employees and department head to some extent and from that intern had learnt and realized many things. First of all, intern had seen the difference in the work done by the experienced employee and the inexperienced intern. Intern generally handles the entire customer with the same magnitude and style despite the difference in the attitude of the customer; while, employee handles the customer differently every time according to the attitude and behaviour of the customer. Intern had analyzed that how difficult it is to do the simplest of thing when the pressure of the workload increases. Intern had also seen that the software layout that uses in the bank is different according to the position of the employee. Intern had learnt that due to the simplest of mistakes there can be huge problem during the operation. Intern had also recognized the importance of the hierarchy in order to work and solve the problem. During the internship period, the intern had seen huge difference in number of employees in the CSD and the changes that occurred due to that fluctuation in number. The bad impact due to the crowded CSD and the lack of employees in some period had been seen by the intern and recognized the importance the need of the best number of employees that works efficiently. 4.4 International Banking DepartmentThe international banking department of a bank is primarily responsible for financing foreign customers or domestic clients involved in foreign dealings. Its the place where the bank provides the services to the international level. Its the important part of the bank as it helps to gain the reputation outside the country. The services provided in the international banking department are generally non-funded. Non-funded facilities are those facilities where the cash transfer in not done to the customer by the bank. Since, cash are not used by the bank; these services can prove the good profitable services to the bank. Its basically triggers the off-balance sheet risk to the organization. International banking department includes the services of import letter of credit (LC), export letter of credit, bank guarantee and money transfer services like draft and SWIFT. The general activities that are performed in the international banking department are opening of LC, fund transfer, issuing bank guarantee, LC amendments, and so on. 4.4.1 Activities Done in the International Banking DepartmentIntern had to perform various activities in international banking dept. and some of them are described below:Opening Letter of Credit Letter of credit it an important function of the bank as it links with the international banks. A small mistake can cause huge loss for the bank financially and image wise also, so the task performed in the LC is handled by competent official. Opening LC is the huge job because the every corner of the information has to be analyzed carefully. It is the duty of an intern to provide the necessary forms to the applicant. Intern had to check the forms and document that are submitted by the applicant. Intern had to make sure the forms like LC opening form and Bi. Bi. Ni. form no. 3 are submitted along with the Performa invoice.Intern also had to check the required information (i.e. product list, price, quantity, harmonic code, terms and condition, beneficiarys bank, etc) are present in the Performa invoice or not. Then intern had to check if the forms are correctly filled or not. If everything is alright then the forms and documents are submitted to the official for further process. Checking Approval Sheet After scrutiny of the application form and verification of applicants signature and completing checklist, the approval sheet for opening of LC is completed. Basically details of the applicant or customers outstanding liabilities towards the bank are mentioned in the approval sheet. The details of the customers credit line (for funded and non-funded) and customers current liability are obtained from the Credit Liability Report (CLR) by the competent employee. Intern then had to check the approval using the same CLR and if everything is alright then intern submits the approval sheet to the other employee for further checking and process. Preparing New LC FileAfter LC is approved by all the necessary departments and personnel, the head office sends the original copy of LC and LC opening advice in the branch. Then intern had to do photocopy the documents. After that, intern had to prepare new LC file. While preparing the LC intern had to identify the information like corresponding bank, beneficiary name, applicant name, currency, amount, merchandise, date of shipment, LC number and type of LC (i.e. sight LC or usance LC). Intern then also had to record the data on the register. Providing LC to ApplicantAfter the arrival of original copy of LC, its the duty of intern to provide the duplicate copy of LC and the original LC opening advice. First, intern had to check the terms and condition of the LC to know if insurance copy is necessary or not from the applicant. If yes, then intern had to ask for the insurance copy and check the information with the LC. If everything is correct or insurance is not needed, then the documents are provided to the customer under the supervision of the officer in charge of document of LC.

FilingIntern had to do the filing job on a day-to-day basis. Intern had to store and retrieve different type of files according to the requirement of the employees. The files are stored on the basis of LC numbers which are provided according to the nature of transaction and the currency used for transaction. Data EntryIntern had to enter the different types of data on the different register. While opening the LC intern had to enter the record of new LC opening in the register according to its country of business and currency. Intern also had to enter the data of the documents arrived in the department. The information of the LC is written in the two different registers specifying its main points. The documents that are known as document against payment (DAP) and DAP are also registered in the same register but after registering the document the new file is created for those transactions. During the time of internship, the number of data entered by the intern in different register is given below: Table 4.1: Number of Data Entry Done by Intern in International BankingRegister forNumber

Document Received90

LC Opening for Nepal3

LC Opening for India with Indian Currency14

LC Opening for India with USD8

LC Opening for 3rd Country (Except Nepal & India)33

Total148

(Source: HBL)PhotocopyingIntern had to do photocopy of different types of document. The documents like original copy of LC, LC opening advice, Bi. Bi. Ni. Form number 4, and few other have to be photocopied during the internship period of intern. Handling Phone Calls & FaxThis dept. is the first place where all the calls of the bank arrive and then the calls are transferred to their specific places. Intern had the responsibility of handling the phone calls in the absence of the employee or if employee is busy doing their task. Intern first had to ask about the nature of the call and then transfer it the necessary place. Intern also had to handle the fax machine. Inter had to handle every incoming fax and transfer it the necessary problem. ScanningIntern also had to scan the documents and then had to send it to the necessary person through the mail. 4.2.2 Problem Identified in International Banking DepartmentDuring the internship period, intern had identified few problems in international banking department and they are mentioned below:Problem in Communicating with Beneficiarys BankIntern had identified that due to the international boundary it is quite hard to communicate with the beneficiarys bank. And the more trouble occurs when the beneficiarys bank is not the corresponding bank. Intern had found that the difference in the rules and regulation between the banks causes the communication problem.Workload ProblemIntern had identified that in certain time the workload had been high. Due to this, the employees were not able to work properly and the possibility of the quality of work was low. Improper Filing SystemIntern had found that the filing system by the employee had been a serious problem as the required document takes a lot of time to discover. Intern had realized that this problem arises due to the low space for the filing system.Problems in Electronic InstrumentIntern had identified that there had been regular problem in the electronic instruments that are placed in the international banking department. The main problem occurred in the photocopy machine and the printer.

4.2.3 Problems Solved in International Banking DepartmentIntern had solved few problems during the period of internship in international banking department and they are described below: Finding the missing files. Helping employees during the time of workload. Placing files in proper order. Informing the administration dept. about the problems in the electronic instrument. Informing about the lack of new files in the dept. to the concerned person. 4.2.4 Analysis of International Banking DepartmentDuring the internship period, the intern had the opportunity of observing many things in the international banking department. There are only few things that intern can learn by doing the regular work, but the intern can really enlarge the knowledge by analyzing the environment around the department. Intern had found that the LC is very complicated thing and the process of it can be very lengthy. Intern had realized that the LC can enhance the reputation of the bank in international level. During the internship, the intern had the chance of knowing all the code of the LC and the materials that should be included in it. Intern had also got the opportunity of analyzing the different types of bank guarantee and the process of issuing the guarantee. Intern had realized that the bank takes high charges and the commission in these types of facilities. Intern had also analyzed about the draft and SWIFT functioning for the international countries. Intern had realized the difference between the draft and SWIFT. Intern had analyzed about the different rates that are charged by the NRB in transacting the LC. Intern had also got the opportunity to analyze the forward rates. Inter found that the bank doesnt calculate any rates before issuing the forward rates and there is the difference between the book knowledge and the real world functioning in doing the forward rates.

4.5 Credit DepartmentCredit department is the main source of the income of any bank. The main objective of the bank is to provide the credit facility to the people who need the money. Credit is the amount available to a company or individual from the banking system. It is the aggregate of the amount of funds financial institutions are willing to provide to an individual or organization on receiving of the interest. Credit department provides different types of products and services to the customers. Some of the products and services are credit card, corporate loan, small and medium enterprise (SME) loan, and retail / consumer loan. Under these headings, there are different types of loan that are sub-classified. Credit department holds the key to success as it is also the main reason for the organization to go out of the business. So, the credit department should be handled very delicately. Credit department performs various tasks and some of them are preparing the Credit Approval Package (CAP), issuing credit to the customer, issuing credit card, site visits, interest deduction, relationship management, etc.4.5.1 Activities Done in Credit DepartmentIntern had to perform various activities in credit dept. and some of them are described below:Filling Credit Information Bureau (CIB) FormCredit Information Bureau is the agency that collects the information of all the credit information of the different financial institution and stores in its database. The main function of CIB is to provide the liability report of a person or a firm to the financial institution if any of them wants the credit facility. For that purpose the financial institution has to fill up the form provided by CIB to update their database on a quarterly basis. Intern had been provided with the responsibility of filling up the CIB form. While filling up the form intern had to search the whole file to extract the information. The general information that it asks is about the personal information (like 3 generation info, citizenship number, etc.) of loan holder in case of personal loan and in case of a firm the information like Pan Number, Registration Number, shareholders information, etc. Intern had to search the Credit Approval Package (CAP), the offer letter and the valuation report to know about the loan and the security provided by the loan holder. Preparing AdviceAdvice is the bill drawn under the name of the account holder to specify them about the charges and fees that are charged by the bank against them. Intern had to prepare the advice under the name of different account holder according to the charge taken by the bank. Generally, interests charged are specified in the advice. Intern had to specify the account holder name, account number, amount charged, reason, etc. Preparing Balance Sheet and Income StatementBalance sheet and income statement are important in the credit department because it shows how the firms are operating and are competent to repay the loan amount with interest or not. Intern had to enter the data on the software according to the information provided by the customer. Inter faces some problem due to the terminologies used by the customer. After entering all the data, the software provides the total of balance sheet and shows if the assets and liability and equity are equal or not. If everything is correct then the software automatically prepares the financial highlights that include the different ratios, Altman Z model, ROE, ROA and few others. Updating Insurance DataBanks asks insurance for all those things that are security of the loan and have possibility of risk of any damage. Insurance ensures the bank in case the security is damaged or stolen or so on. Intern had to update the time interval of the insurance after loan holder provides the new insurance with new maturity period. Intern had to use the software of the bank to perform this task. Intern also had to check how much time is remaining until the expiry of insurance of different loan holder. Update Values of SharesValues of shares are important for the bank when the bank provides the loan against shares. Thats means customer deposits the share as collateral in the bank to receive the loan. The bank only provides the 50% of the value of total stock. The duty of the intern is to check the average stock prices of past 180 days and the closing price of last day and then calculate the total value of the stock that are provided by the customer. Intern had to remember that during calculation the average stock price of past 180 days or closing price whichever is lower had to be used. Filing Filing is the tough job to do in the credit department; not because of the volume of work but because of the size of file of loan. Intern had to do filing job on a regular basis as many documents are updated time and again. PhotocopyingIntern had to know the photocopy machines function very well to complete the task of photocopy in the credit department. Many documents that have to be photocopied are in huge size, so the functions like ratios have to be known by the intern. Intern had to photocopy many documents on a regular basis in the credit department. 4.3.2 Problem Identified in Credit DepartmentDuring the internship period, intern had identified few problems in credit dept. and they are mentioned below:Mistakes in DocumentsDuring the internship period, intern had found many mistakes in the document of the loan file. Intern had found that the problems in the document can lead to the serious problem. Intern had informed the officer about the mistakes.Lack of Insurance UpdateInsurance are necessary to safeguard the position of the bank during any solvency of the customer. Intern had identified that the insurance are not up to date and the amount of the insurance are not same as identified in the offer letter. Improper FilingIntern had identified that the documents in the loan file are not properly placed i.e. the documents are in not their column as they should be. Intern had faced problem in finding the information due to this problem. Last Minute Job DoneIntern had also identified that the employees had completed their job by rushing in the last moment. For e.g. the interest rate that has to be taken at the end of the Ashad month by debiting the account of customer were not deposited by the customer. On the last day, employee contacted many of the customers for the deposit of the interest rate. 4.3.3 Problem Solved in Credit DepartmentIntern had solved few problems during the period of internship in credit dept. and they are described below: Informed about the mistakes in the document to the employee. Rectification of the mistakes in the document. Properly placing the document in the file. Informed about the insurance that have been expired and not updated. Helping the employee in problem solving. 4.3.4 Analysis of Credit DepartmentDuring the internship period in the credit dept. intern had analyzed the work done by the officers, relation managers (RM) and the dept. head. Intern got the opportunity to analyze the process of doing the work in the real field. During the time, intern had analyzed the how the loans are provided to the firms and individuals. Intern had the chance of studying the different manuals of the credit department. Intern had compared the steps in the manual and the real process done by the employees; intern found that there is not much of a difference in them. Intern also had the opportunity of analyzing the process of making CAP and the way of interpreting the financial highlights of firms by the employee in the CAP. CAP is an important document of the loan process as the authorities approves the loan on analyzing the CAP. Intern had also realized how challenging job it is in the credit department because of regular monitoring of all the loans and documents time and again. Intern had observed the process of providing the credit cards to the customer and had realized the importance of the process in the delicate matter. Intern had analyzed the work of the RM and observed how to maintain a good relationship with the customer. Intern had analyzed that the credit department holds the high ratio of profitability of the bank and is critical role for the success of the bank. Intern had observed that there is quite regular and close monitoring from the branch manager in the credit dept. than other departments. 4.4 Remittance / Bills Department Remittance department is the place where the bank performs the transfer of funds. Remittance dept. is important in running the bank successfully as it directly handles the monetary transactions. Remittance dept. provides various products and services to the customers of the bank. Some of the functions are Electronic Cheque Clearing (ECC), HimalRemit, Moneygram, telex / SWIFT transfer and draft and term deposits. Remittance department is another department from where the bank can gain the revenue. The bank generally earns from the fees and commissions on providing various product and services. The transfer of funds from the Middle East Asia is successful service operated by HBL. Remittance department performs different tasks during the day to day transaction and some of them are entering data for ECC, providing money, performing telex / SWIFT transfer and draft, cheque receipt, account to account transfer, cheque booking, etc. 4.4.1 Activities Done in Remittance / Bills DepartmentIntern had to perform various activities in remittance / bills dept. and some of them are described below: Putting Stamps The flow of cheques in the remittance / bills dept. is huge as the function of Electronic Cheque Clearing (ECC) is done in this department. To perform this task, intern had to collect the cheques and cheques deposit voucher. Then intern had to put the stamp of date received and signature on the copy voucher before returning it to the customer. After that, intern had to put the stamp of endorsement and date on the back side of the cheque. Before the change in the policy by NRB, intern had to put the stamp of bank name in the front side of the cheque. Account to Account Transfer & Cheque BookingThe cheques that the customer deposits should be record in the system for the process of transferring the amount in the customer account from corresponding bank. The cheques that are presented before 11 a.m. are cleared on the same day (except Friday); that means the amount is credited on the same date in the customers account. The cheques that are presented after 11 a.m. are cleared on the next day. Intern had to enter some specific data (like corresponding bank short form, cheque number, amount, etc.) into the system for account to account transfer i.e. to clear on the same date. Intern had to enter some specific data (like code of the corresponding bank, cheque number, amount, etc,) into the system for cheque booking i.e. to clear the cheque on the next day. Checking and Calculating the AmountIntern had to check the document of Performa invoice and match the information with the form for Draft or SWIFT transaction. Then intern had to calculate the amount of the entire document including the fees and commission. Intern also had to remember that the commission are charged according to the banks pre-defined rate. Providing InformationIntern had to provide the information regarding the different functions done in the remittance / bills dept. Intern had to provide information about the different rates on the term deposits. Intern also had to tell the customer about the different vouchers according to their need. Intern also had to inform about the change in regulation in the process of ECC by NRB. Intern specifically had to clarify the customer about not putting any stamp on the front side of the cheque as it would not be processed further. Performing Moneygram Transaction Intern had to perform the transaction of Moneygram (money transfer service). Intern had to enter the data which are provided on the voucher. The system shows the balance with respect to that data and if there is the positive balance then intern had to further enter the information related to the person who provided the voucher. After that, intern had to print the document and submitted it to the officer for further process. Printing DocumentIntern had to print the document of those cheques that are not cleared which are processed on that day before 11 a.m. and the day before that. The document includes the cheque information and the reason for not clearing the cheque. Then intern had do attach those documents with the original cheque. Making Phone Calls to CustomerIntern had to call the customer to make them inform about the cheques that has not been cleared and its reason.

Filling FormsIntern had to fill the different forms in this department. Intern had to fill the forms like cheque deposit vouchers, term deposit form, HimalRemit voucher, Bi. Bi. Ni. form number 4 ka and few others. PhotocopyingIntern had to photocopy the different documents on a regular basis. Intern also had to photocopy the customer identity cards which are used in different transactions.4.4.2 Problem Identified in Remittance / Bills DepartmentDuring the internship period, intern had identified few problems in remittance bills dept. and they are mentioned below:Workload ProblemIntern had found that in the remittance / bills dept. the workload is very high during the opening and closing time; especially due to the ECC. Intern had identified that the workload problem rose due to the customer trying to clear their cheques on the same date. System ProblemIntern had identified that the system of the remittance / bills dept. has problem. Intern had found that the system crashed many times during the internship period. Problem in Filling FormsIntern had found that the customer had problem in filling the forms in the remittance / bills department. Due to the different terminologies, the customer had problem in filling the form. Intern had to help the customer on that. Lack of BroachersIntern had found that in the remittance / bills dept. the number of broachers for the term deposit is very low and those broachers are even out of date. The customer had problem in finding the term deposit rates due to this problem. The intern had to tell the customer about the current interest rates in the term deposit.

4.4.3 Problem Solved in Remittance / Bills DepartmentIntern had solved few problems during the internship period in remittance / bills dept. and some of them are described below: Helping the customer to fill out the different forms and describing the complicated terminologies. Finding the missing documents. Informing the problem that raise during the interaction with customers to the authorized person for the solution. Describing different interest rates of term deposit due to the lack of broachers.

4.4.4 Analysis of Remittance / Bills DepartmentIntern had been placed in the remittance / bills department for short period of time on comparison to other department. However, intern had analyzed some of the works done by the employee and the environment of the department. Intern had analyzed that the job of ECC is critical as every failure of cheque clearance cost Rs. 250 to the bank. So, intern had observed that the employee had to conscious for any mistakes in cheques during the process of ECC and employee also had to be quick due to the pressure of large volume of cheque. Intern had analyzed that the process of providing the remittance money to the customer. Intern had also analyzed that the interest rates can be managed to increase in case of large deposits. Intern had also analyzed the draft and SWIFT differences and the process of doing it. Intern had observed the problems occurred in remittance / bills dept. and how the employee solved that problem.

CHAPTER FIVECONCLUSION AND LESSON LEARNT5.1 ConclusionFinancial institution in Nepal is in emerging stage. The commercial banks are dominating through their products and services; however, the other financial institutions are on the verge of the huge competition. The rules and regulation are matching the international standard while the foreign investments are in the right track for the financial institutions. The internship is done for the two month period in Himalayan Bank Limited. HBL is one of the successful banks in the Nepalese banking industry for quite a long time. HBL is known for their innovations in the financial sector. It has been quite a journey in the field of finance for the intern. Intern had the opportunity to learn so many things during the internship period. Internship had transformed the mindset towards the banking industry. Intern had learnt various skills regarding the different departments along with the knowledge of functioning of the bank. Though the time period of the internship is short to acquire any depth knowledge, intern had understood the mechanism of the different departments. Intern realized that the success of the any institution lies in its customer and the loyalty from the customer is more valuable than the number of customer. Intern had found that doing the same thing with same person is simple, but doing the same thing with different person is difficult. Intern had learnt how to use the theoretical knowledge in the practical field but also found that every time the theoretical knowledge is impossible to apply. Intern had learnt to cope with the different situation and learnt to bond with the new surroundings. The study has its vital significance to the intern and overall the intern found the internship training at HBL, New Road Branch to be a very rewarding experience.

5.2 Lesson LearntIntern had learnt various things during the internship period. Some of the lessons learnt from different departments are as follows: Intern learnt about the different functioning of the bank. Intern learnt how to use the theoretical knowledge and about some differences between theoretical knowledge and real world practice. Intern got the opportunity to learn about the KYC Policy. Learnt general background of different departments like customer service, international banking, credit and remittance. Learnt how to keep the customers loyal. Learnt about the general documents requirement in the various departments. The importance of good working environment and the relation between the employees.

BibliographyBooksShrestha, M.k. &. Bhandari. D.B. (2008). Financial Markets & Institutions, Asmita Books Publishers and Distrbutors., Kathmandu.Saunders, A & Cornett, M.M. (2010) Financial Markets And Institutions, Tata McGraw Hill Company Ltd., India.Gautam R., Gurung, R., Pokharel, J., Kadel,R. & Sigdel, S. (2011) Foundation of Financial Instiutions and Markets. (2nded.) Ayam Publication Pvt. Ltd ,Kathmandu.Brigham, E.F. & Houston, J.F. (2004). Fundamentals of Financial Management, Thompson Asia Pvt. Ltd., Singapore.Websiteshttp://www.himalayanbank.com/http://en.wikipedia.org/wiki/Bank http://www.duhaime.org/LegalDictionary/B/Bank.aspxhttp://www.businessdictionary.com/definition/bank.htmlhttp://www.investopedia.com/terms/c/commercialbank.asphttp://www.investopedia.com/university/banking/http://finmanep.blogspot.com/2010/07/financial-market-general-background.htmlhttp://nepalibankingsector.blogspot.com/2011/04/history-of-banking-in-nepal.htmlhttp://en.wikipedia.org/wiki/History_of_bankinghttp://econkancha.blogspot.com/2007/07/history-of-financial-market-in-nepal.htmlhttp://anju.page.tl/Commercial-Banking.htmhttp://imnepal.com/banking-in-nepal-a-history-of-banking-system-in-nepal/http://www.investopedia.com/articles/07/banking.asphttp://www.bfr.nrb.org.np/statistics/bank_fina_statistics/Banking_and_Financial_Statistics--No_58%20July%202012.pdfhttp://www.businessdictionary.com/definition/bank.html

ANNEX IList of Commercial Banks in Nepal(Amount in Millions)S.N.Name of BanksOperation Date (A.D.)Paid up Capital

1Nepal Bank Ltd.1937/11/151772.83

2Rastriya Banijya Bank Ltd.1966/01/231172.30

3Nabil Bank Ltd.1984/07/122435.72

4Nepal Investment Bank Ltd.1986/03/093012.92

5Standard Chartered Bank Nepal Ltd.1987/02/281610.17

6Himalayan Bank Ltd.1993/01/182400.00

7Nepal SBI Bank Ltd.1993/07/072093.99

8Nepal Bangladesh Bank Ltd.1994/06/062009.40

9Everest Bank Ltd.1994/10/181391.64

10Bank of Kathmandu Ltd.1995/03/121604.19

11Nepal Credit and Commerce Bank Ltd.1996/10/141400.00

12Lumbini Bank Ltd.1998/07/171430.00

13Nepal Industrial & Commercial Bank Ltd.1998/07/211311.55

14Machhapuchhre Bank Ltd. 2000/10/032478.79

15Kumari Bank Ltd.2001/04/031603.80

16Laxmi Bank Ltd.2002/04/031694.08

17Siddhartha Bank Ltd.2002/12/241619.24

18Agriculture Development Bank Ltd.1968/01/219474.30

19Global IME Bank Ltd. 2007/01/022184.86

20Citizens Bank International Ltd.2007/04/202101.84

21Prime Commercial Bank Ltd2007/09/242245.75

22Sunrise Bank Ltd.2007/10/122015.00

23Grand Bank Nepal Ltd.2008/05/252000.00

24NMB Bank Ltd.2008/06/022000.00

25Kist Bank Ltd.2009/05/072000.00

26Janata Bank Nepal Ltd.2010/04/052000.00

27Mega Bank Nepal Ltd.2010/07/231631.00

28Commerz & Trust Bank Nepal Ltd.2010/09/201400.00

29Civil Bank Ltd. 2010/11/261200.00

30Century Commercial Bank Ltd. 2011/03/101080.00

31Sanima Bank Ltd.2012/02/152016.00

(Source: NRB)ANNEX IIOrganizational Structure of HBL (New Road Branch)

ANNEX IIIList of Branches of Himalayan Bank LimitedInside Valley BranchesOutside Valley Branches

1. Battisputali Branch2. Bhaktapur Branch3. Card Center4. Chabahil Branch5. Corporate Office6. Dilli Bazar Branch7. Kalanki Branch8. Kaushaltar Branch9. Maharajgunj Branch10. New Baneshwor Branch11. New Road Branch12. Patan Branch13. Satdobato Branch14. Sorahkhutte Branch15. Swoyambhu Branch16. Teku Branch17. Thamel Branch

1. Baglung Branch2. Banepa Branch3. Barahabise Branch4. Bhairahawa Branch5. Bharatpur Branch6. Biratnagar Branch7. Birgunj Branch8. Butwal Branch9. Damak Branch10. Dhading Branch11. Dhangadi Branch12. Dharan Branch13. Ghorahi Branch14. Gorkha Branch15. Hetauda Branch16. Itahari Branch17. Kawasoti Branch18. Nepalgunj Branch19. Palpa Branch20. Parsa Branch21. Pokhara Branch22. Ram Bazaar Branch23. Tandi Branch24. Trishuli Branch

ANNEX IVMembers of Boards of DirectorsName Designation

Mr. Manoj B. ShresthaChairman

Mr. Salim AmlaniFirst Vice Chairman

Mr. Prem P.KhetanSecond Vice Chairman

Mr. Prachanda B. ShresthaDirector

Mr. Bijay B. ShresthaDirector

Mr. Radha Krishna PoteDirector

Mr. Sushil Bikram ThapaDirector

Mr. Upendra Keshari PoudyalProfessional Director

Mrs. Ranjana ShresthaAlternate Director

Mr. Surendra SilwalAlternate Director

Ms. Menuka ShresthaAlternate Director

Mr. Sunil Bahadur ThapaAlternate Director

Mr. Himalaya Prasad SiwakotiAlternate Director

Mr. Himalaya S. RanaChief Advisor to the Board