The document is an internship report submitted by Neeraj Bhandari to fulfill requirements for their MBA program. It provides details of Neeraj's internship at NIC Asia Bank in Surkhet, Nepal. The report includes an introduction to banking in Nepal, an overview of NIC Asia Bank, and an analysis of activities in the bank's Customer Service Department where Neeraj was placed. The report aims to relate Neeraj's academic knowledge to practical experience in banking.

1. SUMMER INTERNSHIP PROJECT REPORT ON
NIC ASIA BANK Surkhet Nepal
Submitted in partial fulfilment for the award of
Master of Business Administration
By
Neeraj Bhandari
2016014842
Batch 2017-18
Under The Supervision Of
Prof. Atul Sangal
Sharda University
School Of Business Studies
Plot No- 32, 34, Knowledge Park III
Greater Noida 201306
!1

2. DECLARATION
I hereby declare that project Titled “AN INTERNSHIP REPORT ON NIC ASIA BANK”
is an original piece of research work carried out by me under the guidance and
supervision of Prof. Atul Sangal . The information has been collected from genuine
& authentic sources. The work has been submitted in partial fulfilment of the requirement
of School of Business Studies Sharda University.
Neeraj Bhandari
School of Business Studies
Sharda University
Supervisor
Prof. Atul Sangal
Sharda University
Date :
!2

3. PREFACE
As per the curricular of School Of Business Studies at Sharda University, I was assigned
to undergo an internship report in an organisation during the last semester of the program
after a proper study in the required field.
To conduct this study, I choose NIC ASIA Bank. During the period of this study, I tried to
discover as much as possible about customer services on Customer Service and
Remittance Department at NIC ASIA Bank. The purpose of this project work was to
relate the theoretical knowledge acquired in our academic period in a real life situation
and gain the practical knowledge as well as experience. The project also had an intension
to help me understand, analyse and present the basic practices in the Nepalese bank. It
also helped me to gain an insight of various players in the banking sector and helped to
analyse the industry as a whole.
!3

4. ACKNOWLEDGEMENTS
An internship report entitle "AN INTERNSHIP REPORT ON NIC ASIA Bank” has been
prepared to fulfil the partial requirement of the project report of MBA 3rd Semester.
Foremost, I would like to express my deep gratitude to NIC ASIA Bank for providing the
exciting opportunity to be one of them and giving me through guidance and opportunity
to move ahead with internship objectives. I would like to extend my gratitude to Mr.
Rohit Kumar Bista , Branch Manager, for providing guidance and motivation to me. I am
also grateful to all the staffs for their valuable co-operation, guidance, direction, and
continuous support throughout the internship program. I would like to thank Prof. Atul
Sangal and the entire faculty members for supervising me and providing necessary
guidelines to complete the report. I would like to extend my heartfelt thanks to all who
assisted with their valuable suggestions and ideas while preparing the report
Thank You!!
Neeraj Bhandari
MBA III Section ‘B’
2016014842
!4

5. TABLE OF CONTENT
I. INTRODUCTION
▪ Background of the study 7
▪ Objective of the study 8
▪ Methodology 9
▪ Limitations 13
II. Introduction of the Banking Industry
▪ Meaning of the Bank 15
▪ Meaning of Commercial Banks 16
▪ Functions of Commercial Bank 17
▪ Commercial Banks is Nepal 18
III. Introduction of NIC ASIA Bank
▪ Introduction 22
▪ Product/Service offered by NIC 29
o SWOT Analysis 32
!5

6. IV. Analysis of Activities Problem Solved
▪ Customer Service Department (CSD) 38
▪ Problem Identified and Solved 45
▪ Possible Solutions to the Problems 46
V. Conclusion, Lesson Learnt and Recommendation
46-60
!6

7. CHAPTER 1 INTRODUCTION
1.1 Background of the study
The history of the Financial Sector especially Modern Banking Industry can be traced back to
1694 A.D in England; but as far as Nepalese Banking History is concerned, it is only a third
quarter of a century old, with the establishment of the Nepal Bank limited in 1937 A.D (1994
B.S). Now if we closely analyse the Financial Sector, we will find that the Financial Sector
branches out to two major sub-sectors: the Banking Sector and the Non-Banking Sector. The
Banking Sector encompasses the central bank i.e.., the NRB and the thirty-two Commercial
Banks; whereas the Non-Banking Sector comprises of Development Banks, Finance Companies,
Co-operatives, micro-finance, and other financial institutions such as Insurance Companies,
Mutual Funds, Provident Funds, Postal Saving Offices and Nepal Stock Exchange.
MBA is a two years of post-graduate level program offered by the School of Business Studies
(SU-SBS) whose mission is to “develop socially responsive, creative, and result-oriented
management professional in the rapidly growing business sector in Nepal and abroad. To do so,
SBS provides both theoretical as well as practical knowledge to its students. Under its Practical
knowledge provision we, the students of MBA, are required to complete an internship for a
period of two months in any organisation of our choice. To fulfil this very purpose, I worked in
NIC ASIA Bank, Surkhet Branch, Nepal from 1st June to 3rd August.
This report is prepared on the basis of careful study and the work done in the bank as an internee
referred by the University, Sharda University. The report focuses on functioning of branch bank
!7

8. and the use of information technology (IT) in the banking system. The major functions of this
branch are deposit, withdrawal, account opening, clearance of cheques, remitting and collecting
cash on behalf of its clients, opening bank draft etc.
The entire major operational are performed using the software named FINACLE, which is
developed by INFOSYS TECHNOLOGY LIMITED India. Thus, the internship has proved to be
a wonderful and enlightening experience for me. Not only did I get the golden opportunity to gain
practical, on-the-job experience but I also got to utilised my conceptual knowledge and enhance
my managerial skills.
1.2 Objectives of the study
The primary objective of this internship is to gain valuable insights into the business
sector, more specifically the banking industry in addition to this another major purpose is
also to relate the theoretical knowledge with the practical experience and to enable us to
be more prolific in acquiring the real life techniques of achieving results through both
individual effort and team building along with the knowledge gained from the academic
environment. The other specific objectives of the study are:
• To study the banking procedure carried out in branch.
• To examine different product and services offered by NIC ASIA Bank .
• To identify the various activities done under the “Customer Service
Department”.
!8

9. • To gain knowledge and skills necessary to be an effective manager as well
as a leader in an organisation.
1.3 Methodology
Research methodology is a systematic investigation on a particular subject matter. It is a
study of material and source in order to establish facts and reach a new conclusion. It is
concerned with the various methods and techniques used in the process of research
studies
1.3.1 Organisation selection
Selection of organisation for internship program is always a crucial task. Being a student
who has specialised in financial courses in the third and forth semester of our MBA, I had
to select a financial institution which could help me broaden my spectrum of knowledge
about the banking, business and financial sector. So I decided to choose NIC ASIA Bank
for doing my internship. I thought that it would give me an opportunity to realise my
theoretical knowledge into practical field.
In order to approach the bank, the requirements were the recommendation letter from the
college and curriculum vitae. After screening my CV by the authority of Human
!9

10. Resource Department (Head Office), I was duly selected as an intern for its Surkhet
branch. So I started working there from 1st June 2017 to 3rd August 2017.
1.3.2 Placement
During the internship, I was placed in the Customer Service Department at the Surkhet
Branch. I was required to handle all the activities of the department under the guidance
and supervision of Mr. Khagendra Katuwal, the CSD head at the branch. In addition to
him, the other staffs were equally cooperative and helped me to learn the activities of the
department. The Surkhet Branch was established on 8th June 2009 where there are
altogether 8 staffs working over there and it was the 31st Branch of NIC in Surkhet.
1.3.3 Duration
According to the Faculty of Management (SU) we are required to do the internship for a
standard of duration of two month i.e, 8 weeks. So I also worked at NIC ASIA Bank for 8
weeks. I worked the entire period in a single department i.e., the Customer Service
Department. The following table illustrates the duration of my internship.
!10

11. Table No 1.1 Duration of Internship
1.3.4 Activities
During the internship I got the opportunity to perform different activities of the
department. The first 2-3 days I spent gaining information from the staffs of Surkhet
Branch, and then after knowing that, I spent in the information counter where I had to
serve the customers with various information. I also had to help them filling up their
account opening, account closing and many other forms like demand draft, speed remit
form, deposit voucher of customer etc.
I was placed in the customer service section where following tasks are to be performed:
S.N Departments
Weeks
1st 2nd 3rd 4th 5th 6th 7th 8th
1 Customer Service
Department
√ √ √ √ √ √ √ √
!11

12. Table 1.2 Activities performed in an organisation
Source: www.nicasiabank.com
Name of the department Types of activities Performed
Customer Service
Department
➢ Proper counseling to the customer
with politeness.
➢ Informing Customer about different
types of account and other queries
they have about the operation of bank.
➢ Opening all types of accounts like
saving, fixed, current, etc.
➢ Uploading the scanned photo and
signature into the Finacle system as
well.
➢ Timely issuance of Cheque books to
customers.
➢ Maintaining proper records of cheque
register.
➢ Distribution of various forms such as
of e-banking, SMS banking, pay bill,
etc. Checking customer’s transaction
and balance on request.
➢ Proper filing of account opening and
closing forms.
➢ Informing the customers if their
cheque has been returned.
!12

13. 1.3.5 Data Collection
For the preparation of my internship report, I collected data from 2 major sources which
are as follows:
a) Primary Source
• Personal Interview
• Observation.
b) Secondary Source
• Annual Reports
• Brochures of the bank.
• Bank's official website www.nicasiabank.com.
• Nepal Rastra Bank's official Web Site www.nrb.org.np and Periodicals
1.4 LIMITATIONS
The chief limitations that I faced during the internship and during the preparation of this
report are listed as:
❖ The major constraint was the Time constraint. So learning and knowing all the
banking procedure within the internship period i.e., two month is almost impossible.
!13

14. ❖ Limited access to and the use of the Banking Software, as I was an intern which
prevented me from learning more about the actual transactions and entries in the
system.
❖ Limited knowledge on my part which created hindrance to understand the jargons and
technical procedures of the banking world.
❖ This report only visualises the activities CSD of the Surkhet Branch and not of the
entire organisation as a whole.
❖ The study is not applicable to other organisations of similar nature and
❖ Finally, the data collected may not be so accurate as information was collected from
the limited personnel and the customer of NIC ASIA Bank of Surkhet Branch
!14

15. Chapter 2 Introduction of the Banking industry
2.1 Meaning of the bank
Banking sector plays an important role in the economic development of the country. The
word ‘Bank’ has been derived from the Italian word ‘Banco’ which means a place for
keeping, lending and exchanging money. The bank is a financial institution, which deals
with money. It accepts deposits from individuals and organisations and grants loans to
them. It allows interest on the deposits made and charges interest on the loans granted.
Since, it accepts deposits and grants loans, it is regarded as the trader of money. Further,
it creates credit and supports for the formation of capital.
“Bank is an organisation established for the purpose of exchange money deposit lending
money and participation in transactions”
-Commercial Bank Act of 2031 (Nepal)
2.2 Meaning of Commercial Bank
Commercial banks are the major component in the financial system. Commercial banks
come into existence mainly with the objectives of collecting of idle funds, mobilising
them into productive sector and causing the overall economic development. The
commercial bank is the oldest form of bank. In general, bank that performs all kinds of
!15

16. banking business and generally finances trade and commerce is called commercial bank.
It occupies quite an important place in the framework of every economy.
According to Nepal Commercial Act 2031 B.S. (1974 AD) ,”A commercial Bank refers
to such types of bank which deals in money exchange, accepting deposits, advancing
loans, and other commercial transitioning except some special functions done by some
specified bank such as Co-operative Bank, Agricultural Bank and Industrial Banks.”
2.3 Functions of Commercial Bank
Commercial Banks perform an array of functions. The commercial banks are those banks,
which are established to accept deposits and grant loan to the industries, individual and
traders with a view to earn profit. Apart from financing, they also render services like
collection of bills and cheques, safekeeping of valuables, financial advising etc. to their
customer. These functions can be systematically categorised as follows:
Primary Functions
❖ Accepting Deposits
❖ Lending
❖ Investment
!16

17. Secondary Functions
✤ Agency Services
a) Collection and Payment of Cheques
b) Standing Instructions
c) Acting as Correspondence
d) Collection of bills-electricity, telephone, etc.
f) Purchase and Sales of stocks/share- act as a banker to issue
✤ Miscellaneous or General Services
a) Lockers-trustee
b) Remittance facilities
c) Advisory Services
d) Providing Credit Reports
e) Opening LC
f) Demand in FOREX/Traveler's Cheque
g) Complete service in Foreign Trade
h) Other Services: Debit Card, Credit Card, On-line Banking, SMS Ban
!17

18. 2.4 Commercial bank in Nepal
In the context of Nepal the first commercial bank, "Nepal Bank Limited" was established
in 1937 A.D. and the second "Rastriya Banijya Bank" was established in 1966 A.D.
Nepal has opened its door to foreign commercial banks in the kingdom almost a decade
back. As the country followed economic liberalisation, there was massive entrance of
foreign banks in Nepal. Consequently, Nepal Arab Bank was established in 1985 A.D.
similarly the Nepal Indosuez Bank was established as a joint venture between Nepal and
France in 1986 A.D. the legitimate entry of foreign commercial banks with full-fledged
banking functions led to rapid growth of banking system. After 1990 economic
liberalization policy obtained by the government, now there are 32 commercial banks
operating banking activities in the country.
It can be seen from the above table that commercial banks has grown in Nepal since first
joint- venture commercial bank was established in Nepal in the year 2041 BS. There has
not been establishment of new banks after the year 2058 B.S. But due to improvement in
the political and economic condition of the country, there are chances of establishment of
new banks in Nepal.
!18

19. The following table shows the list of commercial banks in Nepal:
Table No.2.1: List of Commercial Banks in Nepal
S .
N
Names
Operatio
n D a t e
(A.D.)
Head Office
Paid Up
C a p i t a l
( R s . I n
Million)
1 Nepal Bank Ltd.
1937/11/1
5
D h a r m a p a t h ,
Kathmandu
1,772.83
2 Rastriya Banijya Bank Ltd.
1966/01/
23
S i n g h d u r b a r ,
Kathmandu
1,172.30
3
Agriculture Development Bank
Ltd.
1968/01/
02
R a m s h a h p a t h ,
Kathmandu
9,474.30
4 Nabil Bank Ltd.
1984/07/
16
Kantipath, Kathmandu 2,029.77
5 Nepal Investment Bank Ltd.
1986/02/
27
D u r b a r M a r g ,
Kathmandu
3,012.92
6
Standard Chartered Bank Nepal
Ltd.
1987/01/
30
N a y a b a n e s h w o r ,
Kathmandu
1,610.17
7 Himalayan Bank Ltd.
1993/01/
18
Thamel, Kathmandu 2,400.00
!19

20. 8 Nepal SBI Bank Ltd.
1993/07/
07
Hattisar, Kathmandu 2,093.99
9 Nepal Bangladesh Bank Ltd.
1994/06/
05
N a y a B a n e s h w o r ,
Kathmandu
2,009.40
10 Everest Bank Ltd.
1994/10/
18
Lazimpat, Kathmandu 1,391.57
11 Bank of Kathmandu Ltd.
1995/03/
12
Kamaladi, Kathmandu 1,604.19
12
Nepal Credit and Commerce
Bank Ltd.
1996/10/
14
S i d d h a r t h a n a g a r ,
Rupandehi
1,400.00
13 Lumbini Bank Ltd.
1998/07/
17
Narayangadh,Chitawan 1,430.00
14
N e p a l I n d u s t r i a l &
Commercial Bank Ltd.
1998/07/
21
Biaratnagar,Morang 1,311.55
15 Machhapuchhre Bank Ltd.
2000/10/
03
Prithvichowk. Pokhara, 2,478.79
16 Kumari Bank Ltd.
2001/04/
03
D u r b a r M a r g ,
Kathmandu
1,603.80
17 Laxmi Bank Ltd.
2002/04/
03
Adarshanagar, Birgunj,
Parsa
1,694.08
18 Siddhartha Bank Ltd.
2002/12/
24
Kamaladi, Kathmandu 1,619.24
19 Global IME Bank Ltd.
2007/01/
02
Birgunj, Parsa 2,184.50
20
Citizens Bank International
Ltd.
2007/06/
21
Kamaladi, Kathmandu 2,101.84
21 Prime Commercial Bank Ltd
2007/09/
24
New Road, Kathmandu 2,245.75
!20

21. 22 Sunrise Bank Ltd.
2007/10/
12
Gairidhara, Kathmandu 2,015.00
23 Bank of Asia Nepal Ltd.
2007/10/
12
T r i p u r e s h w o r ,
Kathmandu
2,000.00
24 Grand Bank Nepal Ltd
2008/05/
25
Kamaladi, Kathmandu 2,000.00
25 NMB Bank Ltd.
2008/06/
05
Babarmahal, Kathmandu 2,000.00
26 Kist Bank Ltd.
2009/05/
07
Anamnagar, Kathmandu 2,000.00
27 Janata Bank Nepal Ltd.
2010/04/
05
N e w B a n e s h w o r ,
Kathmandu
2,000.00
28 Mega Bank Nepal Ltd.
2010/07/
23
Kantipath, Kathmandu 1,631.00
29
Commerz & Trust Bank Nepal
Ltd.
2010/09/
20
Kamaladi, Kathmandu 1,400.00
30 Civil Bank Ltd.
2010/11/2
6
Kamaladi, Kathmandu 1,200.00
31
Century Commercial Bank Ltd. 2011/03/1
0
Putalisadak , Kathmandu 108,0.00
32 Sanima Bank Ltd.
2012/02/
15
N a g p o k h a r i ,
Kathmandu
2, 016.00
!21

22. CHAPTER 3 INTRODUCTION OF NIC ASIA Bank
3.1 Introduction to NIC ASIA Bank
NIC ASIA Bank started its operations in 1998 with a view and objective of extending
professionalized and efficient banking services to various segments of the society. The
bank is providing customer-friendly services through its Branch Network. As a result,
NIC ASIA Bank has more than 5 lacs customer today. All the branches of the bank are
connected through Anywhere Branch Banking System (ABBS), which enables customers
for operational transactions from any branches.
The bank has been one of the leading banks of the country and has been catering its
service to various segments of the society since then. With clients from all walks of life,
the bank has helped develop the nation corporately, agriculturally and industrially. With
an aim to help Nepalese citizens working abroad, the bank has entered into arrangements
with banks and finance companies in different countries, which enable quick remittance
of funds by the Nepalese citizens in countries like UAE, Kuwait, Bahrain, Qatar, Saudi
Arabia, Malaysia, Singapore and U K . So one can say with all earnestly that NIC ASIA
Bank is truly a Nepalese bank
!22

23. 3.1.1 Joint Venture
Bank of Asia is a joint venture partner of NIC ASIA Bank holding 20% equity in the bank
and is one of the largest nationalized bank in ASIA. With its presence virtually in all the
important centers at ASIA, ASIAN Development Bank offers a wide variety of banking
services which include corporate and personal banking, industrial finance, agricultural
finance, financing of trade and international banking. Among the clients of the Bank are
Indian conglomerates, medium and small industrial units, exporters, non-resident Indians
and multinational companies. The large presence and vast resource base have helped the
Bank to build strong links with trade and industry.
3.1.2 Equity structure
The equity structure of NIC ASIA Bank as on Fiscal year (2011/12) comprises of:
Table 3.1 Equity structure of NIC ASIA
The share ownership pattern of NIC ASIA is shown in the following table:
Authorized Capital Rs. 2,000,000,000
Issued capital Rs. 1,391,635,700
Paid up Capital Rs. 1,391,635,700
!23

24. Table 3.2 share ownership pattern
(Source: annual report of NIC ASIA BANK)
Figure 3.1 Share ownership pattern of NIC ASIA
!
The above figure shows that local Nepalese promoters hold 50 percent stake in the bank’s
equity, while 20 percent of the equity is contributed by joint venture partner BANK OF
ASIA who has also undertaken management responsibility under a Technical Service
Agreement (TSA). The remaining 30 percent is held by the general public.
Group Categories % of
Holding
N o . o f
Shareholders
A Nepalese Promoters Ownership 50% 9
B General Public 30% 19428
C Joint Venture (BANK OF ASIA) 20% 1
Total 100% 19438
Nepalese promoters Onership
General Public
BANK OF ASIA
!24

25. 3.1.3 Organization Chart
An Organizational structure consists of activities such as task allocation, co-ordination
and supervision which are directed towards the achievement of organizational aims.
Figure 3.2 Organization chart of NIC ASIA BANK
!25
Board of Director
(Chairman)
Executive Director
DGM
(Marketing)
AGM
(Planning & Development)
Company
Secretary
AGM
(Operation)
DGM
(Credit)
MKT HRD Security Guard ITTreasury
FOREX Domestic
Legal Retail Corporate
ReconciliationFinance/ Tax/ Inspection,
A/C, NRB/ Budget

26. EBL has different department in order to facilitate different types of facilities to the
various customers.
a. Human Resource Department:
This department performs the function as recruitment, selection, promotions,
transfer, performance appraisal, training and development of employees, etc.
b. Account/ budget department:
This department is responsible for maintaining and preparing whole budget and
account of the bank. It has all the records of banks operational as well as
administrative expenses.
c. Trade Finance Department:
This department facilitates trade activities both internal and external. In this
department bank acts as an intermediary between supplier and client. This
department issues LC and guarantee.
d. Cash Department:
This department deals with inflow and outflow of the money. NIC ASIA collects
deposits and facilitates withdrawal via different counters.
!26

27. e. Legal Department:
This department looks after the legal aspects of the bank. Policies of the bank are
formulated only after the legal aspects provided under NRB. This department
makes sure of all activities and steps followed in serving a customer are totally
legal.
f. IT Department :
This department is responsible for development and maintenance of network
system and information storing.
g. ATM Shell:
The function of this department is to make cards i.e. debit and credit cards and
provide customer pin codes for their cards and others.
h. Treasury Department:
This department handles foreign currency, Treasury, Transfer and Clearing, etc.
i. Remittance Department:
The function of this department is to facilitate remittance (both internal and
external).
!27

28. j. Corporate Credit Department:
This department defines the needed documents for particular loan and the
documentation portion of that is done here.
3.1.4 NIC ASIA Network
NIC ASIA Bank with a slogan of “The Name You Can Bank Upon” provides customer-
friendly services through its Branch Network and all it's the branches are connected
through Anywhere Branch Banking System (ABBS), which enables customers for
operational transactions from any branches. The bank has 50 Branches, 67 ATM Counters
and 20 Revenue Collection Counters across the country making it a very efficient and
accessible bank for its customers, anytime, anywhere. SWIFT are other modes of
communication for efficient and effective transmission of information where NICNPKA
is the swift code of NIC ASIA. Being a joint venture partner of NIC ASIA , the account
holders of NIC ASIA can also transact through more than 5600 branches and 6000 ATMs
of other banks. NIC Debit card can also be used at more than 1300 Point of Sales (POS)
terminals for purchase of merchandise. There is more than 170 remittance payout location
in Nepal. It has its own Remittance Product “NIC Remit” to enables remit income from
the gulf countries.
!28

29. 3.1.5 Corporate Vision
• To position it as a progressive & customer friendly bank providing financial and other
related services.
• To cater to various segments of society using advanced technology.
• To be committed to excellence in corporate values.
3.1.6 Corporate Mission
• To provide excellent professional services & improve its position as a leader in the
field of financial related services.
• To build & maintain a team of motivated and committed workforce with high work
ethos.
• To use the latest technology aimed at customer satisfaction & act as an effective
catalyst for socio-economic developments.
3.1.7 Awards
• The bank has been conferred with “Bank of the Year 2013, Nepal” by the Banker, a
publication of financial times, London.
!29

30. • The bank was bestowed with the “NICCI Excellence award” by Nepal India chamber
of commerce for its spectacular performance under finance sector
3.1.8 Pioneering achievements
• Recognizing the value of offerings a complete range of services, we have pioneered
in extending various customer friendly products such as Home Loan, Education Loan,
NIC Flexi Loan, NIC Property Plus (Future Lease Rental), Home Equity Loan,
Vehicle Loan, Loan Against Share, Loan Against Life Insurance Policy and Loan for
Professionals.
• NIC ASIA BANK was one of the first bank to introduce Any Branch Banking System
(ABBS) in Nepal.
• NIC ASIA BANK has introduced Mobile Vehicle Banking system to serve the
segment deprived of proper banking facilities through its Birtamod Branch, which is
the first of its kind.
• NIC ASIA has introduced branchless banking system first time in Nepal to cover
unbanked sector of Nepalese society.
• NIC ASIA is first bank that has launched e-ticketing system in Nepal. NIC ASIA
customer can buy yeti airlines ticket through internet.
!30

31. 3.1.9 Objectives of the NIC ASIA Bank
➢ To facilitate the reliable, prompt & high standard of banking service for adopting the
latest version of banking technology in compliance with the need and demand of the
market.
➢ To develop lifelong relationship with clients and achieve profitability through
customer oriented service and customer satisfaction.
➢ To widespread its branch network in different part of the countries covering at least
one branch on all development regions facilitating large number of clients as possible.
➢ To provide financial help to the General Public.
➢ To encourage industries by providing necessary capitals.
➢ To provide safe deposit to the customers.
➢ To provide various kind of credit facilities such as home loan, education loan, etc.
!31

32. 3.1.10 Board of Directors
Board of director consists of:
Table 3.4 Board of Directors
3.1.11 Management team
The management team consists of:
Table 3.5 Management team
Board of Directors Designation
1. Mr. Tulsi Ram Agarwal Chairman
2. Mr. Jagdish Prashad Agarwal Director
3. Mr.Ram Chandra Sanghai Director
4. Dr. Aaditya Kumar Agrawal Director
5. Mr. Rajendra Aryal Director
6. Mr. Binod Kumar Pyakurel Director
8. Mr. Ganesh Man Shrestha Director
Board of Directors Designation
1 Mr. Laxman Risal Chief executive officer
2 Mr. Bishal Sigdel Chief Financial Officer
3 Mr. Dipak Dhakal Head Internal Audit
4 Mr. Pramod Raj Sharma Company Secretary
!32

33. 3.2 Products /services offered by NIC ASIA
NIC ASIA has never backed in providing the best products and services to meet the
requirement of its customers be that the existing ones or potential customers. NIC ASIA
is indeed successful to provide these entire products through the analysis of the customer
feedback form. Customer’s satisfaction is the paramount driver at NIC ASIA.
The different product and service offered by NIC ASIA are as follows:
• Saving Account: Saving account offers all facilities required for normal transactions
like deposit, payments with additional facility of debit cards, ABBS. Under the
saving account, the various schemes offered by bank includes saving premium,
Sunaulo Bhawisya Yojana, Unfixed Fixed Deposit, Fixed Deposit, Freedom account,
Naari bachat khata, Normal saving account, Student account, Bal Bachat khata,
Saugat bachat khata, USD account, Call Deposit and Current Deposit.
• Retail Lending: Under retail lending, the various loans offered by NIC ASIA are
Housing Loan, Vehicle Loan, Education Loan, Professional Loan, Loan against
mortgage, Loan against future Lease and Rental, and Loan against shares.
• Working Capital Finance: The bank services the working capital requirement of
business by assessing the current asset and liabilities.
• Project Finance: Depending on the projects rate of return, repayment ability, cash
flow and generation of cash surplus various projects are financed.
!33

34. • Trade Finance: Through an extensive global network that facilitate domestic and
international transaction NIC ASIA is able to meet customers need of import, export,
payments through offering facilities like LCs, SWIFT transfers, Guarantees, etc.
• Consortium Finance: NIC ASIA has been arranging for financial closure of various
large projects through leading consortium finance. The bank has offered such services
to various business segments like Hydropower, Manufacturing Industry and Hospital.
• Priority and Deprived Sector Lending: The bank has been extending loan facilities to priority
and deprived sector in the form of direct as well as indirect lending.
• Remittance: In order to facilitate remittances of Nepalese residing in U.A.E,
Bahrain, Kuwait, Qatar, Malaysia and Saudi Arabia, NIC ASIA is a step ahead. NIC
ASIA is playing a pivotal role in facilitating remittance to and from across globe. The
banks own web based online remittance product. With world remit, the bank has same
day remittance facility with other different banks with association of Bank of Asia’s
2200 networked branches, based draft drawing arrangement.
!34

35. Following are the facilities provided by NIC ASIA to its customers:
A. Any Branch Banking Services(ABBS)
The account holder can deposit and withdraw cash from any of NIC ASIA
branches without any transaction charge. They are not restricted to a particular
branch to operate their account. However, customer must obtain cheque book and
ATM card from particular branch from where they opened their account.
B. Locker
NIC ASIA provides a sound and secure place to keep valuables corporate papers
or bonds/ shares certificate or jewellery through locker service. Any person who
wants to open the locker must have an account at NIC ASIA. Locker margin and
charge depends on the size of locker.
C. Debit Card
NIC ASIA debit card is a plastic card which provides an alternative payment
method to cash when making purchases or cash withdrawal from ATM centres.
NIC ASIA Debit Card having maturity of eight years is a key to ultimate
convenience regarding day to day monetary transactions providing customers the
power of real cash in form of card. Associated with Smart Choice Technology
(SCT), it facilitates wide sharing of ATMs under SCT network from more than
!35

36. 650 Locations throughout Nepal. It has recently launched VISA Debit Card to
facilitate customers.
D. Evening counter
For added comfort and convenience of NIC ASIA valued customer, NIC ASIA is
opened even after banking hours. Various services are provided during evening
counter. Some of them are as follows:
• Acceptance of Deposit.
• Withdrawal of Cheque Amounting NPR up to 15.00 Lacs per cheque.
• Remittance facility - Online remittance Payment.
• Issuance of Drafts.
• Accepting of Clearing Cheque mentioning late clearing.
• ABBS facility, etc.
Other different services are provided by NIC ASIA like: e-banking, weekend banking,
fund transfer, SMS banking, mobile banking, SMS Alert, pay bill banking.
!36

37. 3.3 SWOT Analysis
Table 3.6 An overview of EBL’s SWOT analysis
Strength Weakness
• Joint venture partner with BANK
OF ASIA.
• First- class Infrastructure and
advanced technology.
• Goodwill.
• Quality Service.
• Facility of ABBS.
• Effective Inter-departmental
communication.
• Pioneer of Online banking.
• Involvement in off-balance sheet
activities.
• Proper strategic planning and
preparation.
• Lack of sufficient ATM’s in and
outside valley.
• Insufficient marketing.
• Availability of only SCT based
debit card or limited card services.
Opportunities Threats
• New Investment opportunities.
• Growing international trade.
• Introduction of innovative
products, services and programs.
• Installation of updated technology.
• Political instability.
• Changing customer preferences.
• Changing technology.
• Intense competition.
• Lack of investment opportunities
in the market.
!37
SWOT

38. CHAPTER 4 ANALYSIS OF ACTIVITIES AND
PROBLEM SOLVED
4.1 Customer Service Department
A company's customer service department handles the concerns of customers. The
department answers customers' questions, attempts to resolve customers' complaints and
tries to sell new services to them. Most companies have a separate customer service
department; although in some cases a receptionist may function as a customer service
representative. In addition to resolving customers' complaints and answering their
questions, the customer service department also takes suggestions from customers who
have new ideas that may improve the image of a company and attract new customers. For
example, a customer may send an email suggesting that a local supermarket increase the
amount of organic products.
The customer service process must be transparent. If an organisation can practice full
disclosure in an obvious way in their product information and their contracts, they are on
the way to create customer loyalty. If the customer experiences your organisation as one
they were never surprised and never deceived, the organisation will create a competitive
edge. Good customer service is all about bringing customers back. And about sending
them away happy – happy enough to pass positive feedback about the business along to
!38

39. others, who may then try the product or service the bank offer for themselves and in their
turn become repeat customers.
4.1.1 Function and Services provided by CSD
The Customer Service Department of NIC ASIA Bank, especially Surkhet Branch, performs the
following activities and provides the following services to its customers:
4.1.1.1 Analysis of Regular/Daily Activities
Account Opening Procedure
Bank Accounts can be opened by both an individual and a Joint A/c) as well as a corporate firm
(institution). Basically a bank account is a unique computer-generated customer code that allows
customers to deposit and withdraw fund. The Account Opening Procedure is explained as
follows:
1) At first, on the visit of the customer in the bank, the customer is asked to fill an AOF
and Signature Card which contains the personal details of the customers
NOTE: The customer should submit a copy of his/her citizenship certificate, two sets of
passport size photos and other required documents according to the deposit type
2) The CSD staff then verifies all the documents, details and signature and feeds them
into the FINACLE along with the specific a/c type, introducer’s name (if any).
3) The system then automatically generates the Account Number, which is a 14 digit
code where the first 4 digits represent the Branch code.
!39

40. 4) Then the customer are requested to deposit the minimum balance (or more) of the
concerned deposit type in their a/c. and account number is provided later on.
5) CSD staff will create the customer id of account holders and then forward to
operation manager to verify.
6) Once the customer id is verified, operation manager again returned it to CSD for form
scanning.
7) After form scanning, the CSD staff will prepare the ATM card and cheque on
customer request.
!40

41. Figure No 4.1: Flow Chart of new A/c Opening Procedure
!41
Start
Fill a/c opening form
Process
Decision Reject application
Approve application
Create account
Provide a/c number
Accept minimum
deposit
Issue cheque book
End
End

42. Account Closing Procedure
An Account is closed only upon receiving a written request from the customer/a/c holder. At first,
the a/c holder fills up the “Account Closing Request” form and submits it to CSD. The customer
has to return ATM card and cheque which are unused to the bank. The bank charges Rs. 300 for
closing the account and returned all the remaining balance to the customer. After the completion
of filling up the form, it is verified and signature by operation manager and branch manager.
Thus, finally customer account is closed.
Figure No 4.2: Flow Chart of A/c Closing Procedure
!42
Start
Fill a/c closing
Process
Decision
Approve application
Collect cheque book
and ATM cards
End
Provide remaining
Close account

43. Cheque Issuance Procedure
Cheque printing and issuance is the very sensitive task . It is the most regular activity of
CSD. Multiple Cheque Books are printed daily in CSD. The Cheque Printing and
Issuance Procedure are explained as follows:
1. For new account holder, bank provide the cheque without any cost.
2. If customer has to print the cheque for the second time, then customer has to
fill up the requisition slip that contains the date, number of required cheque
leaves, valid signature (stamp of the company in case of current account).
3. After that, CSD staff will issue the cheque and operation manager verifies it
and gives permission to print the cheque.
4. The next step after printing of cheque is to enter the record on cheque
registered which is signed by customer and the operation manager.
ATM Card Handling Procedure
The ATM Card at NIC ASIA BANK is debit card under the Smart Card Technology
(SCT) Network. NIC ASIA BANK takes the charge for issuance of ATM card depending
on the type of account. For example, Rs.200 is charged for normal saving account. Rs. 50
is charged for nari bachat and no ATM charge for freedom account and salary account.
The issued ATM card is valid for 8 years and customer can withdraw Rs 100000 in one
day using debit card.
!43

44. Statement Printing Procedure
A Statement of Account is a statement that shows a detailed list of the transactions
(withdrawals and deposits/debits and credits) as well as the closing balance of the a/c as
of the one day before the statement printing. The Statement of Account is provided on
customer request and no any form has to be filled up for statement print. But account
holder must be present for statement print. In case if account holder is not present, the
agent must have the application of statement printing request signed by the account
holder.
Balance Enquiry Handling
During my internship I learnt that NIC ASIA Bank takes special caution in disclosing the
balance in any account, which I found very impressive. Customers often come to CSD for
balance enquiry but it is only entertained after establishing the identity of the a/c holder
by checking the photo or signature in the system. Telephonic balance enquiries are not
entertained as far as possible. Only to some highly regular customers whom the staffs
know very well, are given the privilege of Balance Enquiry via phone.
E-banking
E-Banking is a free service that allows customers to avail online banking transaction
wherever and whenever required. To use this service the customer has to submit a duly
signed & filled up “Application for Internet Banking” form to CSD. Then CSD forwards
the request to operation manager desk. Then the very next day, the bank provides the user
code and password to the customer. The customers can then full control over their
!44

45. accounts after collecting the user code and password. The services available include:
Balance query, Check transactions, Send and receive messages and Bank Statement.
SMS-banking
SMS-banking is a system where customers are facilitated to access their account status
and retrieve general information regarding their account and other banking transaction
through their mobile phone. Customers can perform the following tasks such as: balance
enquiry, downloading transaction information, view online statement, change PIN code
etc. the only work that CSD does in case of SMS-banking is to collect the “Application
for SMS Banking” form from the interested a/c holder, send it to the concerned
department. The NIC ASIA Bank does not take any annual charge for SMS-banking but
bank charge Rs. 200 annually for SMS Alert.
Customer Query Handling
As a CSD staff during my internship, all my time was spent in handling the numerous
queries of various walk-in customers. I gave the information that they wanted. Many
customers were interested to learn about that product, which I happily obliged. In
addition to that, I answered queries about our other products, services, transaction hours
etc. I single-handedly handled all the customer queries via phone as well.
!45

46. 4.1.1.2 Analysis of irregular/ occasional activities
Balance Certificate Printing and Issuance
Balance Certificate is a document issued by a bank stating the amount of balance/funds
maintained by an a/c holder in its bank; usually a balance certificate also contains a
statement from the bank mentioning that the a/c holder has maintained satisfactory level
of transactions with the bank, but this is only mentioned in the case of satisfactory
customers. The balance amount mentioned in the certificate can be either in NPR or in
customer preferred FCY equivalent amount as per the FCY rate on that date. Customers
often visit the bank to issue Balance Certificate. Usually students who are going abroad
for studies come for it. In order to issue the certificate the customer has to open an a/c
with the bank. First of all the customer fills up the “Request for Balance Certificate”
form. Then the CSD staff issues the certificate in the requested currency upon obtaining
signatures in proper register. A charge of Rs. 500 is charged as a service charge.
Fixed Deposit (FD) Renewal/Settlement
During my internship I observed that an important task and somewhat complex and of
CSD to open and the Renewal or Settlement of it. Fixed Deposit is an important a/c for a
bank so FD a/c holders are given special attention.
!46

47. FD A/c Opening: At Everest bank an FD can be opened for a minimum balance of Rs.
10,000. The interest is calculated daily but with quarterly posting. Hence for the purpose
of interest posting, the a/c holder must also open another a/c in the bank i.e., normal
saving and interest in fixed account is transferred to normal saving account of account
holder.
FD Renewal/Settlement: Once an FD is opened, the CSD has to keep a close watch
over its expiry date. Upon expiry, an FD can be settled in three ways: it can be renewed
for the next tenure at the prevailing interest rate or the a/c holder can withdraw the
amount or move it to the other a/c where the interest had been accumulated. Hence before
a couple of days before the expiry, the CSD staff must consult with the a/c holder and do
as instructed.
4.1.1.3 KYC Update
KYC is an acronym for “Know your Customer”, a term used for customer identification
process. It involves making reasonable efforts to determine true identity and beneficial
ownership of accounts, source of funds, the nature of customer’s business, reasonableness
of operations in the account in relation to the customer’s business, etc. which in turn
helps the banks to manage their risks prudently. The objective of the KYC guidelines is to
prevent banks being used, intentionally or unintentionally by criminal elements for
money laundering. KYC has two components - Identity and Address. While identity
!47

48. remains the same, the address may change and hence the banks are required to
periodically update their records.
KYC update is the recent activity that is carried out in all the commercial bank as
instructed by Nepal Rastra Bank. So as per the instruction, I distributed and helped the
customer to fill up the KYC form at NIC ASIA Bank, Surkhet Branch. For KYC update,
we were told to inform the customer who visit the bank and who doesn’t often visit the
bank they were informed through telephone calls.
4.2 Problem Identified and Solved
During my eight-week internship, I also got the opportunity to understand, identify and
solve some of the problems faced by the bank. Here are some problems and difficulties
that exist in the CSD of the bank:
✓ The CSD at Surkhet branch is understaffed. Too much responsibility lies on the
single person who faces a lot of problems during high traffic hours at the bank
✓ There was lack of adequate follow ups with the customer regarding matters such
as informing them to collect their ATMs. Cheque Books, etc.
✓ There is frequent technical problems in the ATM machines which has led to
multiple ATM complaints
!48

49. ✓ The task of remittance is also performed at CSD which delayed the other task
that has to perform at CSD.
4.3 Possible Solutions to the problems
After analyzing the problems I tried my best to solve some of them to my best of abilities.
In addition to those, here are the possible solutions to those problems which could not be
solved from my level.
✓ The CSD at Surkhet branch needs to recruit additional staff to handle the
workload of the department. I have brought this matter to the attention of the
Operation Manager who has assured me to do something about it soon.
✓ I also took the initiative to take the frequent ATM complaints to the Operation In
charge, and as a result of which, the Surkhet Branch contacted the IT department
at the Head office and had them solve this problem
✓ A possible solution to establish a separate Remittance at the branch to separate
these functions and carry them out more efficiently.
!49

50. Competitors
In this part of the report, a brief comparison of the competitors of NIC ASIA BANK is
being done. Among the many banks in Surkhet , these banks are chosen as the major
competitors of NIC ASIA BANK. These banks are chosen because they are located in
similar place and their products are competitive. This makes the comparison more
relevant as they have similar customers.
Some of them are:
o Nabil Bank
o Bank of Kathmandu
o Sanima Bank Limited
o Siddhartha Bank Limited
o Nepal SBI Bank Limited
o NMB Bank Limited
o Civil Bank Limited
o Citizen Bank Limited
o Kumari Bank Limited
o Nepal Bangladesh Bank Limited
!50

51. D ATA A N A LY S I S , I N T E R P R E TAT I O N O F
QUESTIONNAIRE.
Q1. Your Age?
Ans. 1.18-23 Years 24 Person
2.24-29 Years 39 Person
3.30-35 Years 48 Person
4.35 Years 29 Person
Interpretation
From above response it can be seen that
•17% respondent’s age are 18 to 23 years.
•28% respondent’s age are 24 to 29 years.
•34% respondent’s age are 30 to 35 years.
•21% respondent’s age are 35 to above
year
Q2. Marital status?
Ans.
•Married 93 Person
•Single 47 Person
!51
17%
28%
34%
21%
Age
18-
23 Years
24-
29 Years
30-
35 Years
35 years & above

52. Interpretation
From above response it can be seen that
•66% respondents are married.
•34% respondents are unmarried.
Q3. Educational Qualification?
Ans.
•Undergraduate 67 Person
•Graduate 20 Person
•Postgraduate 53 Person
Interpretation
From above response it can be seen
that.
•48% respondents are Under graduate.
•14% respondents are Graduate.
•38% respondents are Post graduate
!52
66%
34%
Marital Status
Married
Single
48%
14%
38%
Education Qualification
Undergraduate
Graduate
Post Graduate

53. Q4. Your annual household income?
Ans.
•Less than 2 lacs 46 person
•Between 2 to 5 lacs 64 person
•Between 5 to 8 lacs 23 person
•More than 8 lacs 7 person
Interpretation
From above response it can be seen that.
•33% respondent’s annual household income is less than 2 lacs.
•46% respondent’s annual household income is between 2 to 5 lacs.
•16% respondent’s annual household income is between 5 to 8 lacs.
•5% respondent’s annual household income is more than 8 lacs.
Q5. How do you like different products/services provided by NIC ASIA
BANK?
•Excellent 67 person
•Very Good 33 person
•Good 40 person
!53
33%
46%
16%
5%
Annual Income
Less than 2 lacs
Between 2 to 5 lacs
Between 5 to 8 lacs
More than 8

54. Interpretation
From above response it can be seen that.
• 48% respondents perception said excellent.
• 23% respondents said very good.
• 29% respondents said good.
Q6. Do you want to open an account with NIC ASIA BANK?
• Yes 140 person
• No 0 person
Interpretation
From above response it can be seen that.
• 100% of the people want to open an account.
• 0% of the people doesn’t want to open an account.
!54
100%
Yes No
48%
23%
29%
Excellent
Very Good
Good

55. Q7. Do you have all the documents which are required to open an account?
Ans.
•Yes 137 person
• No 3 person
Interpretation
From above response it can be seen that.
•98% respondents have all the documents which are required to open an account with
the bank.
•2% respondents do not have all the documents which are required to open an account
with the bank .
!55
98%
2%
Yes
No

56. CHAPTER 5 CONCLUSION, LESSON LEARNT AND
RECOMMENDATION
5.1 Conclusion
From the above analysis it is seemed that NIC ASIA BANK is one of most hard working
commercial bank that is dedicated in serving their valued customers with excellence.
During this internship period of 8 weeks, Intern had learnt a lot about the banking
activities and banking operation in the Nepalese market, about NIC ASIA BANK in
particular. This report has made intern know about the various kinds of the customer
services that NIC ASIA BANK has been offering. The internship has been fruitful in
many ways to intern.
Internship has broadened intern’s knowledge, vision, ability, management skill and
confidence to perform in real working environment. It was a great chance to gain
practical knowledge of banking sector. The practical cases are rather different from that
we study in theory. Further intern has also become versed to get socialise with the
diversified people, to deal with the senior staffs, and to deal with the intern colleague so
as to make the working environment cheerful, pleasant and friendlier. Beside this, the
supervisors were extremely helpful in guiding on our internship program.
!56

57. It was the great experience working as an intern in NIC ASIA BANK. The operational
environment was benevolent. There was good communication, healthy competition and
healthy relationship in between the personnel of NIC ASIA BANK. Each and every staff
of NIC ASIA BANK were totally professional but still there was a family environment
making overall internal working environment delightful to work with. Working at NIC
ASIA BANK as an intern was a great opportunity to develop conceptual and analytical
knowledge about banking sector in Nepal. Thus, the knowledge and experience endowed
with this study will surely be constructive towards the pavement of intern’s career and
professional life.
During my internship what I also analysed is that the bank is good in providing a good
customer service. Customers always seek quality service at their convenience. Customers
have preferred NIC ASIA BANK mainly due to its brand image, branch facilities and
service quality. They expect this bank to rise even more to become the leading bank in
service quality. Mostly the customers of NIC ASIA BANK are satisfied with what they
are receiving but there are also some issues regarding interest rate on deposits and also
other factors or room for improvement for the bank in order to excel even more and be a
top banking industry in years to come. Improvements have to be made from time to time
in order to sustain the satisfaction level of customers and push the bank to a continuous
growing path.
!57

58. 5.2 Lessons Learnt
The statement “more you learn more you will discover your ignorance” has seemed to be
appropriate during this internship period in NIC ASIA BANK. Intern has obtained
insights into career opportunities through interaction, observation and work experience in
the organisation and also built another step towards success through interpersonal,
managerial, communication and entrepreneurial skills gained from this internship period.
Being exposed to professional working environment, intern has understood the corporate
social responsibility, change the attitude and behaviour towards daily life spending. The
most important lesson learned by intern has been listed as follows:
➢ Various operation and activities of CSD and some few in clearing department of
bank
➢ Social exposure with various types of customers from different background since
EBL deals with its different clients in the process of rendering its services.
➢ Learn to face and handle problems effectively and efficiently.
➢ Chance to get familiar with finacle system installed by NIC ASIA BANK.
➢ Keeping the account of each and every transaction in file as per the supportive
evidence. So filing is the most important job in the bank.
➢ Along with customer satisfaction, employee satisfaction also plays a great role in
the success of the bank
!58

59. ➢ There was the opportunity to understand different types of stamps and their
respective function that was in use.
➢ Learn the workflow, chain of command and hierarchy of organisation.
5.3 Recommendations
With reference to the findings and the conclusion drawn out above following
recommendations can be sorted out:
➢ It is observed that the employees were overburdened because of heavy workload
so they have to stay at head office till late at night. Though they are remunerated
their efficiency is affected. Proper time management or hiring more employees
can reduce their work
➢ Too many interns should not be placed in one department which may lead to
mixing up of works and consequently the co-workers are not satisfied with the
works of interns.
➢ Bank has provided many facilities to the customers like free ATM cards, e-
banking but only this is not even, the bank should ensure smooth flow of services
without any complaints from the customers.
➢ A customer is the first priority so they should be given more attentions and
complaints of the customer should be promptly responded.
➢ All the staffs should be properly trained in using the banking software.
!59

60. ➢ There should be good communication between head office, corporate office and
the branches.
➢ The bank should also show some responsibilities towards the society, by
organizing different social program, sponsoring and promoting educational and
health program.
➢ The bank should monitor the behavior and attendance of the interns so that they
are encouraged to be at their best and feel like a part of their organization.
➢ The branch should follow the manual & destroy the uncollected ATM cards and
cheque books that have not been collected since last year. This would not only
minimize the Operational Risk but also reduce complaints from HO that Surkhet
branch often gets.
➢ The bank needs to be more concerned about functioning of ATM as it may be out
of service time to time
!60

61. References
http://http://www.nicasiabank.com/
https://en.wikipedia.org/wiki/NIC_ASIA_BANK
https://en.wikipedia.org/wiki/List_of_banks_in_Nepal
!61