CHAPTER ONE

INTRODUCTION

1.1. Background of the study

Internship can be classified as one of the methods of on the job training. It provides real

work experience to those looking to explore or gain the relevant knowledge and skills

required to enter into a particular career field. It is relatively short term in nature with the

primary focus on transferring what has been learned in the classroom by applying it to the

real working environment. Moreover, internship is an excellent way to begin building

those all important connections that are invaluable in developing and maintaining a

strong professional network for the future.

Interns generally have a supervisor who assigns specific tasks and evaluates the interns

overall work. The tasks assigned are generally focused on educating the intern about the

various procedures and policies of the organization’s respective departments in which the

intern is placed. In addition the minor level works may be assigned in order to make the

intern familiar with the working environment. On the other hand, evaluation may be

carried out daily, weekly or monthly by the supervisor and this evaluation may be

reflected in the performance report of the intern. And generally the students who work as

an intern receive academic credit for work experiences.

Thus, internship is a process of education where educational institutions and the business

organizations come together to offer meaningful, career-related work experience to

students, while simultaneously providing an excellent source of highly-motivated, career-

minded individuals for employers.

This internship program was carried out for the partial fulfilment of BBA-BI program

conducted by Pokhara University. It is of three credit hours and is to be carried out for the

duration of six to eight weeks. This project was mainly assigned to enable the students to

gain an understanding of the practical implication of the academic knowledge learnt

through various courses in college.

1.2. Purpose of internship

Internship helps to strengthen the students' personal values and career objectives

through an improved understanding of themselves and the work environment.

To assist students in identifying and acquiring the skills needed to enter a chosen

field.

To provide the student an opportunity to apply his/ her theoretical understanding

and knowledge gained in college to the real working environment.

To provide practical knowledge about the working procedures of the organization

and enable the intern to reconcile the differences in theoretical knowledge and

practical environment.

To allow students to meet and learn from professionals in the field and develop a

network of contacts.

1.3. Objective of the study

The major objective of the internship program was to expose intern to the practical

working environment and help him/her in understanding how can the theoretical

knowledge gained thorough years of studies be applied to the real world and also

reconciling any discrepancies between the two extremes. In addition, since banking

institution was chosen, the another main objective was to get familiar with the working of

such rapidly growing industry of Nepal. The other objectives were:

To broaden the understanding of banking activities and its various procedures.

To link the various financial and accounting concepts and theories learnt with the

standard operating procedures of various functional departments.

To understand how day to day activities and transactions are properly managed by

the authority in charge leading to smooth function of every department in a bank.

1.4. Organisation selection

For the purpose of fulfillment of academic requirement for the degree of Bachelor in

Business Administration in Banking and Insurance, the internee has selected banking

institution as this institution seemed more relevant for the internee, having major

concentration on banking and finance sector, for increasing his/ her knowledge and

understanding of the subject matter. Thus, NDEP Development Bank Limited was

selected, as this bank is a perfect platform for the carrier growth and development. It also

facilitates every kinds of knowledge about the corporate world and the internee could

also know about the core functioning of development bank.

1.5. Placement

As a part of the internship program, the intern was assigned to the various functional

department of the bank so that a complete understanding could be gained. Thus, the

intern was placed in card department, cash and remittance department, customer service

department, credit department, accounts and treasury department and administration

department.

1.6. Duration of internship

As per the requirement set by the faculty of management, Pokhara University, for the

partial fulfillment of Bachelor in Business Administration in Banking and Insurance

degree, students were required to perform as an intern in an organization for a period of

six to eight weeks. However, due to time limitation, the intern conducted the internship

program for six weeks only. The time duration for which the intern been placed in

various departments of NDEP Development Bank can be detailed out as follows:

Table 1.1: Duration of internship

Name of the department Time duration

Card department 1 week

Cash and remittance department 1 week

Customer service department 1 week

Credit department 1 week

Accounts and treasury department 1 week

Administration department 1 week

1.7. Limitation of the study

The internship report has been prepared on the basis of observation and practical

exposure to the real working environment. Although this report aims to best describe the

working situations in which the internee has performed his/ her duties, there are various

limitations:

The time period of one week per department, assigned by the supervisor, during which

the internee was placed in various departments of the bank one after another was not

sufficient to understand the functioning of the department on a full basis.

As a part of the bank’s policy, the interns were not allowed to access the system which

limited the analysis that could be carried out. Thus basing the most part of the study on

observation only.

This study is solely based on personal observation, judgment and analytical abilities of

the internee so the context of study may differ from similar studies conducted.

CHAPTER TWO

INTRODUCTION OF THE ORGANISATION

2.1. Introduction of bank industry in Nepal

A bank is a financial institution and a financial intermediary that accepts deposits and

channels those deposits into lending activities, either directly or through capital markets.

In Nepal, banks and financial institutions are established as a public limited company

under Company’s Act and are operated as per Bank and Financial Institution Act 2063.

Furthermore, they are regulated by Nepal Rastra Bank.

The categorization of banks and financial institutions in Nepal are as follows:

Class: "A" (Commercial Banks)

Class: "B" (Development Banks)

Class: "C" (Finance Companies)

Class: "D" (Micro Finance Development Banks)

Non-Government Organizations (NGOs) ( Licensed by NRB)

Saving and Credit Co-operatives(Limited Banking) (Licensed by NRB)

2.2. Definition of development bank

Development bank is an institution that provides financing and advice for development

purposes in the country. It is dedicated to fund new and upcoming businesses

and economic development projects by providing  capital. Thus, development bank is a

national or regional level financial institution designed to provide medium- and long-term

capital for productive investment in an economy.

2.3. Introduction of NDEP Development Bank limited

NDEP Development Bank is a national level development bank established as national

level "B" category financial institution under Bank and Financial Institution Act, 2063

and started its banking operation from Ashad 32, 2063. The Bank has its Registered

Office at NDEP Building, Bina Marg, Lal Darbar, Kathmandu, Nepal and providing

modern banking services from 22 point of representation and 8 ATM counters.

2.3.1. Mission of the bank

NDEP Development Bank aims facilitates financial support for the promotion,

development and growth of agriculture, industries, services, trading, natural resources,

hydropower etc. in both rural as well as urban areas that creates employment and

contribute in nation’s development.

2.3.2. Main objectives of the bank

NDEP Bank tends to promote national economy, society and individuals.

Increase market share by following disciplined growth strategy.

NDEP Bank wants to develop a customer oriented service culture with special

emphasis on customer care and convenience with quality banking services.

Entrepreneurship development

Develop innovative products and services to attract target customers and enter

into new market segments.

Providing employment opportunities along with career development plan for the

employees of the bank.

Proper retention and mobilization of capital in different important and profitable

areas.

Explore new market segment for expansion and profitability.

2.3.4. Capital Composition

Authorized Capital Rs. 128 Crores

Issued Capital Rs.64 Crores

Paid up Capital Rs. 58.24 Crores

2.3.5. Shareholders Structure

Promoter's Share 60%

General Public 40%

2.3.6. Promoters

Employee Provident Fund

Bhatbhateni Super Market & Departmental store Pvt. Ltd.

Bhatbhateni Jewellers Pvt. Ltd.

Milan Investment Company Pvt. Ltd.

Shanta Investment Pvt. Ltd.; and

Professionals and Eminent Business Personalities.

2.3.7. The board of directors

The Board of Directors is represented by minimum of one director from each of the sub-

group of the promoters. The current composition of the BOD is as follows:

Table 1.2: Board of directors of NDEP Development Bank

Name Designation

1. Prof. Dr. Subarna Lal Bajracharya Chairman

2. Dr. Raju Bahadur Shrestha Director

3. Mr. Man Mohan Krishna Shrestha Director

4. Mr. Bajra Gurung Director

5. Mr. Kishor Malla Director

6. Mr. Ramesh Kumar Niroula Director

7. Mr. Sudan Ratna Bajracharya Director

8. Mr. Yam Kumar Shrestha Director

9. Mr. Surendra Man Shrestha Director

2.3.8. Management team

The management team of NDEP development bank consists of:

Table 1.3: Management Team

Name Designation

Mr. Bharat Lal Bajracharya Chief Executive Officer

Mr. Rajendra Lal Bajracharya Assistant General Manager

Mr. Kiran Ghimire Head: Compliance & Internal Audit

Mr. Bibek Man Singh Shakya Head: Business Development

Mr. Nabin Muni Bajracharya Head: Operation, Treasury & Accounts

Mr. Umesh Prasad Mainali Head: Branch Coordination & Control

2.3.9. Future plans and targets

To achieve NRs. 451 crores of Deposit and NRs. 384 crores of lending target.

To earn NRs. 7.5 crores of net profit after tax in current fiscal year.

To increase capital base by issuing bonus or right shares in accordance with Nepal

Rastra Bank’s directives in order to reach the level of NRs. 64 crores within

2069/70.

To open at least two branches in each fiscal year.

To give continuity to promoting of youth entrepreneurship through NYBF.

To give continuity to contributing in Youth & Small Enterprises Self Employment

Program.

2.3.10. NDEP network

The corporate office of NDEP Development Bank is situated in NDEP Building, 125

Bina Marg, Laldurbar (Kathmandu). Its branch offices are at Kamaladi, Dhulikhel,

Koteshwor, Kandaghari, Chabahil, Tangal (Lalitpur), Panchkhal, New Road, Kunta,

Banepa, Malekhu, Kushma, Battar, Bhaktapur, Balaju, Baneshwor, Kholesimal,

Melamchi, Majhuwa Bazar, Dharke, Jalbire and Narayangadh. (Appendix)

2.3.11. Departments of the Bank

There are various department s of NDEP bank and they are:

Customer Service Department

Cash and Remittance Department

System and Card Department

Credit Department

Account and Human Resource Department

Administration Department

2.4. Products and services offered by NDEP development bank

2.4.1. Deposit Products

1. Current Account

2. Saving Account

Basic Saving

Shareholders Saving

Karmachari Uddhyami Saving

Money Multiplier Saving

NDEP High Yield Saving

NDEP Naari Bachat Khata

NDEP Balbalika Bachat Khata

NDEP Naulo Saving

3. Fixed Account

Normal Fixed

NDEP Fixed Plus

NDEP Money Back Fixed

NDEP Naulo Fixed

4. Recurring Deposit

5. Salary Management Account

6. Call Deposit

7. Structured Deposit

2.4.2. Loan Products

1. Consumer / Retail Loan

Home Loan

Vehicle Loan-Personal Use

Vehicle Loan-Commercial Use

Education Loan

Mortgage Personal Loan

Loan Against Shares & Debentures

Loan Against Gold & Silver

Loan Against Fixed & Recurring Deposit Receipt

Loan Against Government Securities

2. Business Loan

Overdraft Loan

Short Term Loan

Medium & Long Term Loan

Project Loan

Bridge Gap Loan

Consortium Loan

Small & Medium Entrepreneur Loan

3. Micro Loan

Agriculture Loan

Deprive Sector Loan

2.4.3. Services

1. ATM/ Debit Card

NDEP ATM Service Locations:

Kamaladi Complex, Kamaladi, Kathmandu

Awal House, Koteshwor, Kathmandu

Tangal, Lalitpur

Ganesh Bazar, Banepa, Kavrepalanchowk

Malekhu Bazar, Malekhu, Dhading

Old Baneshwor, Bhimsengola, Kathmandu

Dudhpati, Bhaktapur

Dharmapath, Newroad, Kathmand

2. Safe Deposit Lockers

Safe Deposit Locker services are available at:

Kamaladi Main Branch, Kathmandu.

Tangal Branch, Lalitpur.

3. Foreign Currency Transaction

Foreign Currency Deposits

Foreign Currency Cash Purchase and sale  

Draft Issuance

Inward / Outward Remittance

SWIFT / Telegraphic Transfer

Cross Currency Transaction

4. Travelers Cheque Issue and Purchase

5. Remittance

Inward Remittance:

- Western Union Money Transfer

- International Money Express (IME)

- Himal Remit

- Prabhu Money Transfer

- Union Money Transfer

Domestic Remittance (Send and Receive):

- Mega Remit

- Reliable Remit

- Nabil Remit

- Everest Remit

6. Interbank Transaction

7. SMS Mobile Banking

8. Life Insurance Premium Collection

2.5. Technology used by NDEP development bank

Technology has played a major role in providing valued services to the customers of

NDEP development bank. NDEP development bank has used Bank Plus software which

enables it to provide services like tele banking, point of sale services, ATM facilities,

SWIFT facilities and ABBS banking system. Moreover, the bank provides SMS banking

services which facilitates the customers to check total balances, statement up to four

transactions, overdue date, maturity date and enquiry the current exchange rate through

their mobile phones.

CHAPTER THREE

INTERNSHIP EXPERIENCE

3.1. Overview of internship experience

In order to fulfill the requirement of internship program, the internee worked for a period

of six weeks equally allocated in various departments of NDEP development bank. This

means that the internee worked one week per department of the bank during the

internship period. The departments in which the internee worked was card department,

cash and remittance department, customer service department, credit department,

accounts and treasury department and administration department.

3.2. Activities performed by various departments of NDEP development

bank

3.2.1. Card department

The card department is mainly concerned with the transaction or activities related to the

ATM card. The major activities of the card department can be listed as follows:

Issuance of new ATM cards.

Delivery of card and pin.

On receipt of customer’s report on Lost/Stolen Card, the card department updates

the status of the card as inactive and requests SCT to block the card.

On receipt of application for re-issue of card in case of damaged card, the card

department destroys the card in front of the customer and follows the procedures

of issuance of new card.

Regeneration of new pin if the customer forgets his/ her pin number.

Handles the retained cards

Replenishes cash in the ATM every day before and after the transaction hour in

assistance with the head of the cash and remittance department.

Prepare reconciliation the ATM cash transaction.

Make settlement entry upon the receipt of settlement advise from Himalayan

bank.

Prepare a “Blank Card Logbook” as per pre-numbered blank cards procured by

the bank and act as a card custodian.

Dispose the uncollected cards and pins if the retention period of 3 month is

reached.

Follow the procedures stated in the bank’s standard operating procedures

guidelines for any of the above mentioned activities.

3.2.2. Cash and remittance department

The cash and remittance department of the bank is that department which deals with the

customers more frequently than any other departments. Its main service to the customers

are accepting the deposit and making withdrawal from the customer’s account upon their

request. In other words, its primary functions are money transfers; comprising of outflow

of funds (through debit of customer account or otherwise); and Inflow of funds (through

credit of customer account or otherwise).

Cash and remittance department has been divided into front office and back office. Front

office is primarily responsible for dealing with the customers coming at the teller

counters for cash withdrawal and deposit and sale and purchase of foreign currency.

Bank purchases foreign currencies in the form of cash or traveler’s cheques from:

Tourists exchanging foreign currencies for local currency.

Hotel, travel/trekking agencies for deposit to their accounts maintained with the

bank.

Nepalese citizen surrendering leftover foreign currencies from foreign travel.

In addition, foreign currencies are sold as per Nepal Rastra Bank regulation in the form of

cash and/or traveler’s cheque against Passport facility and foreign exchange permit issued

by NRB.

The bank sells foreign currency in the form of cash or traveler’s cheques only in

following circumstances:

To a bona-fide traveller either maintains a deposit account with the bank or

deposits equivalent cash at the counter.

To persons going abroad (other than to India) on private visit, students studying

abroad and returning after vacation and other official visits.

To persons holding foreign exchange permit issued by NRB.

In the back office, the employees facilitates the requests offront office during the

customer service hours. The request may be for banking activities such as cheque

clearing transactions, cheque collection, cheque discounting, inward remittance,

transfer payable, bank draft, outward remittance, stop payment, standing instructions,

dormant accounts, internal transfer, good for payment, fixed deposit, national saving

bond and pay order.

Cash and remittance department should strictly follow the general rules mentioned in

the standard operating procedures such as rules related to the authority limit,

obtaining identification of payee, confirmation of transaction above NPR 500000,

operation on dormant account, sale and purchase of foreign currency, remittance,

interest and so on.

3.2.3. Customer service department (CSD)

The customer service department of NDEP development focuses on maintaining good

and continuing relationship with the customers. It aims at solving any queries that

customer may have and also help the customer by providing assistance in carrying out

any transaction.

The major activities of this department can be listed as follows:

Opening of accounts according to the requirement of the customer

If a change in customer’s address takes place, and such changes shall be notified

by the customer and the designated staff of CSD updates the record.

A customer shall change his/ her signature due to reasons such as changes in

writing habit, ownership or any of the valid reasons. CSD must update the

signature record of the respective customer

Issuance of new cheque book to the new customer or re-issuance of cheque book

to the existing customer in cases such as loss of previously issued cheque book

and submission of requisition slip from the previously issued cheque book.

Issuance of statement of accounts produced from the bank’s system as instructed

by the clients and being delivered to them according to their preferred mode i.e.

delivery by post or collect from the counter.

Upon the receipt of request from the customer for closing of accounts, CSD

should follow the mentioned procedures in the bank’s standard operating

procedures guidelines.

However, account closure is initiated either by NDEP or by the customer:

In case of account closure at NDEP’s initiation, a reasonable notice to this

effect should be served to the client giving reason thereof.

If account closure is at client’s request, the client should state so in

writing. Withdrawal of whole of the credit balance in the account should

not be treated as closure of an account unless the client states in writing

that the withdrawal is in fact for closing of account.

3.2.4. Credit department

NDEP development bank provides variety of loan to the customers such as home loan,

vehicle loan, mortgage loan, overdraft loan, loan against shares and debenture, loan

against gold, project loan, bridge gap loan, consortium loan and so on. In order to

properly manage these loan portfolio, NDEP development bank has credit department

which is further sub-divided into three departments. They are credit marketing

department, credit administration department and credit recovery department. Each sub

departments have specific jobs to be done. Credit marketing department performs pre-

sanction appraisal of the proposed loan and prepares the loan proposal for the approval by

the higher authority. Moreover, it uses liquidity and solvency ratios, activity ratios,

capital adequacy ratios, debt serving capacity and profitability ratios to draw a conclusion

on borrower’s financial condition prior to the approval of the loan. Credit administration

department deals with all the legal documentation of the loan. And credit recovery

department aims at recovering the credit provided to the customer on timely basis and

also keeps track of the customers.

There are various procedures that must be followed by the credit department for

sanctioning the credit and the procedures may differ for different types of loan. However,

as a general policy, credit shall be granted against the security of assets, the market value

of which shall not, at any time, be less than the amount of such loans and advances, and

which can be enforced and adjusted against the loan amount in case of default by the

borrower after giving proper notice.

There are various documents that must be properly prepared and managed by the credit

administration department for a complete loan documentation. They are loan application,

form and photo, citizenship, source of income, lal purja, malpot tax clearance certificate,

char killa (four boundary certificate), blue print, naksha pass certificate, cost estimation,

financial statement, valid tax clearance certificate, valid frim / company registration

certificate, MOA and AOM, board minutes, quotation of the vehicles, blue book, CIB

report, valuation, site visit report, credit scoring card, proposal, offer letter, demand

promissory note, letter of set- off, load deed document, title documents/ mortgage deed/

rokha letter, rajinama document, corporate guarantee, personal guarantee, family concent,

family details, net worth statement, NRB details, insurance policy and signed EMI(PMT).

3.2.5. Accounts and treasury department

In the simplest form, the accounts and treasury department is concerned with maintaining

the proper books of accounts and ensuring that the all the transactions are recorded as per

the relevant accounting policies and standard adopted by the bank. More specifically,

some the activities of this department can be detailed out as follows:

Ensuring that the accounting policies are consistently applied in the bank.

Follow the procedures for recording foreign currency transaction stated in the

standard operating procedures of the bank.

Establish and implement controls necessary to protect the assets of the bank, and

record assets in compliance with generally accepted accounting principles.

Maintain loan loss provision in accordance with the prudential norms prescribed

by Nepal Rastra Bank which follows:

Table 1.4: Loan loss provision

Loan

Category

Overdue Period Loan Loan

Provisioning Rate

Pass Up to 3 months 1 percent

Sub-standard Above 3 months & up to 6 months 25 percent

Doubtful Above 6 months & up to One year 50 percent

Bad Above One year 100 percent

Maintaining appropriate income tax provision.

Follow stated procedures for the accounting of non banking assets, non

capitalized assets, contingent liabilities and staff benefit.

3.2.6. Administration department

Administration department of the bank is tasked with providing administrative and

logistical support to the entire bank. Its main functions include:

General office management and running.

Transport management.

Registry management.

Assets management.

Property management.

Security and safety.

General office management and running provides services, which includes:

Provision of offices for all staff.

Provision of all office equipment for use by staff e.g. Computers.

Ensuring a clean and secure office environment.

Ensuring availability of adequate lighting, water, telecommunication, email, fax,

computers etc.

Providing, where possible, designated parking for vehicles.

Ensuring availability of stationery

Ensuring availability of adequate photocopying services/facilities.

Setting of internal operating rules.

Transport Management includes:

Every staff is supposed to be provided with transport in the discharge of his/her

official duties.

It provides fuel for all vehicles, ferries, motorcycles, plant and equipment.

It is in charge of repairing and Maintenance of all vehicles, trucks and motor

cycles.

Registry management includes:

All incoming and outgoing mails must go through the registry.

The registry must have in place good and efficient record filing and trucking

systems for all the records i.e. all mail must be recorded in a mail book, filed and

the file sent to the addressee for action. The registry shall maintain a file

movement book for tracking all station files.

Assets management includes:

Acquisition of assets

Management of assets (engraving, locating, checking/counting etc)

Recommending disposal of assets

Property management includes:

Management of all the property of includes buildings installations e.g quarry sites,

land etc.

Security and safety includes:

Security should be for all assets and property.

Users must ensure safety of assets in their possession.

Security shall be provided through hiring of a reputable firm.

3.3. Internship activities in NDEP development bank

3.3.1. Card department

Under the supervision and guidance of the card department staff, the internee performed

the following activities in this department.

Filing the record of daily transaction related to ATM card in the respective branch

office file.

Under the assistance of card department staff, calculated the various charged that

is to be credited or debited to the respective branch office account and the amount

that is to be paid or recovered from the Himalayan bank for every bank’s ATM

card transaction.

Gained an understanding about various charges related to financial and non

financial transaction conducted through ATM. Such charges are as follows:

For interbank transaction: payable amount is NPR 2.55 per transaction for

balance enquiry and NPR 22 per transaction for financial transaction.

Receivable amount is NPR 8 per transaction for financial transaction and

NPR 0.75 per transaction for other transactions.

Amount payable to SCT for each transaction carried out through banks’

own ATM is NPR 2 per transaction.

Learned the procedures to be followed when delivering the pins to the customer

and also when sending the pin to the branch offices through courier or through

trusted individual.

Reconciled the ATM journal with the details of the transaction recorded by the

system itself.

3.3.2. Cash and remittance department

The activities involving cash in a bank involves high risk as any imbalance in the account

may create problems for the bank and the respective staff involved may have to

compensate from his/ her own fund to settle the imbalance. This is the reason why the

internee was not allowed to do any work in the system. But as a part of the internship

program, the internee was allowed to observe the various functions performed in that

particular department as well as was asked to go through the system operating procedure

(SOP) of CRD. Under the guidance of the CRD staff, during the period of one week, the

internee performed activities as follows:

Gained a good understanding of different types of cheques (Bearer cheque,

account payee cheque, & co cheque and Cross cheque) and its characteristics.

Gained concept regarding the good for payment cheque.

Learned the procedures that should be followed when an individual presents

cheque issued by the bank’s customer and when the bank’s customer brings the

cheque of another bank or the bank’s itself for deposit.

Learned the procedures that should be followed when receiving cash for deposit.

Learned what should be done by the department if any call received or standing

instruction from the account holder or from authorized person prior to the

presentation of the cheque.

Gained knowledge about procedures involved in inward and outward remittance.

Actions that should be taken after receiving the stop payment order from the

client.

Learned how the journal vouchers were passed for every transactions carried out

in CRD.

3.3.3. Customer service department

In the CSD, during the internship period, under the guidance of the CSD staff the internee

performed the following activities:

Assist the customers in filling up the various forms like account opening form,

SMS banking form and ATM card application form.

Provided knowledge to the customers regarding the various deposit products

and services available in the bank as well as helping the customers by

referring them to persons who can help them with their problems.

Assist staffs in signature scanning, filing of the account opening file and

closing file, preparation of cheque book, recording of the issued cheque book

and recording statement issue.

Verification of the signature of the customer who come to collect their ATM

cards and recording the delivery of the card in the register under the

supervision and authority of the concerned staff.

3.3.4. Credit department

In the credit department, the internee was basically assigned to study various documents

related to the credit facilities offered by the bank. In detail, such activities can be listed as

follows:

Gained an understanding about the loan proposal related to overdraft loan,

mortgage loan and so on. Also the factors to be considered before finalising the

proposal were thoroughly explained by the credit department staff to the internee.

The internee was given an opportunity to study the loan proposal.

Learned the differences between bid bond and performance bond and the reasons

for bank providing such bond to the customers. Moreover, a sample of each type

of bond was given by the concerned staff to the internee for studying.

Learned how the various financial ratios were applied by the credit department in

assessing the financial position of the proposed borrower and determining the

repayment capability.

Studied the various legal documents need for providing the credit facility to the

customers.

Labelled various types of loan files which involved including details about the

loan on the front of respective file as per the NRB directive.

3.3.5. Accounts and treasury department

Under the supervision of accounts and treasury department staff, the internee was

assigned to study the standard operating procedures of the department and was given a

brief knowledge about the accounting standard applicable and general accounting entries

for the activities of the bank.

3.3.6. Administration department

In the administration department, the internee performed the activity related to fixed asset

management which involved physical verification of the status of the fixed assets in the

corporate office, recording the number and details of fixed assets available, classified the

fixed assets as per the departments in corporate office and finally coded the fixed assets

and details provided to the administration department head.

3.4. Internship achievements

The most important lesson that the internee has learnt during the internship period is the

understanding of corporate working environment, which is the basic lesson for the

internee’s career development. Besides this, internee also has learnt the working of the

general banking transaction process by being engaged as intern in most of the

departments of NDEP development bank.

During the internship period, the factor that was felt most important by internee was the

importance of the time management and the need of the communication skills. Such

management and communication skill of the internee was enhanced through the

internship program as internee was constantly required to efficiently allocate time

between college and office. And moreover since internee was given an opportunity to

communicate with the customer of the bank as well as the working staffs, the

communication skill was thus effectively enhanced.

3.5. Discussion and evaluation

The initial objective of the internship program was to broaden the understanding of

banking activities, link the various financial and accounting concepts and theories learnt

with the standard operating procedures of various functional departments and understand

how day to day activities and transactions are properly managed by the authority in

charge leading to smooth function of every department in a bank. These internship

objectives of the internee were gradually fulfilled as the internship program progressed.

The internee gained sufficient understanding of the working of the bank by engaging in

different department. And in the context of linking the financial and accounting concept

learned in college courses, the internee was effectively able to determine the various

financial concept used while working in the credit department of the bank. In addition, all

the accounting concepts that were studied in financial accounting subject in second and

third semester of Bachelor in Business Administration in Banking and Insurance program

was practically observed by the internee in almost all the departments of the bank who

were required to record their transaction but mostly was observed in the accounts

department. And during the period of six weeks, the internee was able to analyze how the

staffs in charge were managing the day to day activities of the bank thus fulfilling the

final internship objective.

The discussion and evaluation of the internship experience can be further supported by

carrying out the SWOT analysis of the NDEP development bank by the internee which

can be elaborated as follows.

3.5.1. SWOT Analysis

SWOT analysis (alternately SWOT Matrix) is a strategic planning method used to

evaluate the strengths, weaknesses, opportunities, and threats involved in a project or in

a business venture. It involves specifying the objective of the business venture or project

and identifying the internal and external factors that are favorable and unfavorable to

achieve that objective.

Strengths are characteristics of the business, or project team that give it an

advantage over others.

Weaknesses (or Limitations) are characteristics that place the team at a

disadvantage relative to others.

Opportunities are external chances to improve performance (e.g. make greater

profits) in the environment.

Threats are external elements in the environment that could cause trouble for the

business or project.

Identification of SWOTs is essential because subsequent steps in the process of planning

for achievement of the selected objective may be derived from the SWOT analysis. The

SWOT analysis for NDEP Development Bank is as follows:-

3.5.1.1. Strength

Wide array of products and services offered

The bank gives its first priority towards catering its service rather than making

profit. It is directed towards providing quality service and increasing the

customer’s satisfaction.

Innovative ideas and products/services have been injected into the bank from time

to time. This has made the bank unique and outstanding in the market.

As there is the prevalence of the advance technology and the staffs are

experienced as well as qualified the services catered by the bank is relatively

faster than the other banks

3.5.1.2. Weakness

Less marketing activities and promotion of services offered by the bank.

Delay in decision making.

Rigid lending policies compared to other banks. Loan applicants have to fulfill

strict rules of documentation, which increases lead time for final disbursement of

loans. Due to this, customers may have negative perception regarding overall

functioning of the bank.

High recruitment and training cost.

3.5.1.3. Opportunities

As the customers are loyal to the bank and is rich in technology, it has been able

to expand its business by opening branch in various parts of the country.

The bank has got opportunity to finance in various trading business by

developing the existing credit facility.

High potential of earning foreign currency by enhancing remittance services.

3.5.1.4. Threats

Highly competitive industry 

Growing financial institutions which provide similar service as of banks to

customers

Political instability of the nation

Unstable socio-economic condition in the country

CHAPTER FOUR

SUMMARY AND CONCLUSION

4.1. Summary

The internship report is submitted as per the requirement for the completion of the

Bachelor in Business Administration in Banking and Insurance, which comprises of three

critical credit hours. The main objective of the study is to help the intern expose his/her

theoretical knowledge gained inside the classroom to the real working environment.

NDEP Kamaladi (head office) was selected for the purpose of internship, which proved

to be the perfect platform for the intern to simulate with the corporate world. There

wasn't any hard and fast rule for the placement within the Kamaladi head office.

Therefore intern was placed at customer service department, cash and remittance

department, card department, credit department and was sent to the corporate office for

placement at administration department and accounts and treasury department for six

weeks of internship. During the internship period, different activities were performed

according to department placement. The various activities performed by the internee in

various departments were filing the record of daily transaction related to ATM card in the

respective branch office file, calculated the various charged that is to be credited or

debited to the respective branch office account and the amount that is to be paid or

recovered from the Himalayan bank for every bank’s ATM card transaction, reconciled

the ATM journal with the details of the transaction recorded by the system itself, gained a

good understanding of different types of cheques (bearer cheque, account payee cheque,

& co cheque, cross cheque and goods for payment cheque) and its characteristics,

assisted the customers in filling up the various forms like account opening form, SMS

banking form and ATM card application form, assisted staffs in signature scanning, filing

of the account opening file and closing file, preparation of cheque book, recording of the

issued cheque book and recording statement issue, verification of the signature of the

customer, learned how the various financial ratios were applied by the credit department

in assessing the financial position of the proposed borrower and determining the

repayment capability, studied the various legal documents need for providing the credit

facility to the customers, labelled various types of loan files which involved including

details about the loan on the front of respective file as per the NRB directive, gained a

good knowledge of the accounting system used in the bank and performed the activity

related to fixed asset management.

4.2 Conclusion

Performing the various activities in all the major departments of NDEP for six weeks

period has given the internee, an overall understanding of the operation of development

bank. Thus, it can be concluded that the internship program has provided the students

with an opportunity to explore and enhance their skills and enlarge their knowledge base

leading to the better future prospects in the management field.