GNERAL BANKING SERVICES OF EVEREST BANK

LIMITED

An Internship Report

Submitted To:
Office of the Dean
Faculty of Management
Tribhuvan University

Submitted By:
Mohit Rijal
Nepal Commerce Campus
Exam Roll No.: 8633/11
T.U. Registration No.: 7-2-0025-0953-2011

In the partial fulfillment of the requirement for the Degree of

Bachelor in Business Administration (BBA)

Lagankhel Branch, Lalitpur

August, 2015

RECOMMENDATION

This is to certify that the Internship Report

Submitted by:
Mohit Rijal
Exam Roll No.: 8633/11
TU Registration No.: 7-2-0025-0953-2011
Entitled
"GENERAL BANKING SYSTEM OF EVEREST BANK LIMITED"
has been prepared as approved by this campus. This Internship Report is forwarded for
examination.

-------------------------------------Mr. Krishna Bahadur Thapa

Deputy Director, BBA Program
Nepal Commerce Campus

DECLARATION

I hereby declare that the internship report entitled General Banking Services of Everest
Bank Limited submitted to Nepal commerce campus, Faculty of Management,
Tribhuvan University is my original work done for the partial fulfillment of the
requirement of Bachelor in Business Administration (BBA). This report is my own
original work and I undertake the full responsibility.

Mohit Rijal

ACKNOWLEDGEMENTS

This internship report entitled General Banking System of Everest Bank Limited is
prepared for the partial fulfillment of the requirement for the degree of Bachelor in
Business Administration (BBA) course in Nepal Commerce Campus (NCC) operating
under affiliation of Tribhuwan University (TU). I would thus like to thank TU and NCC
for providing me with an opportunity to be involved in the internship programme which
gave me the real time exposure to the work environment and bridge the gap between
theoretical learning and practical understanding to some extent.
A number of people have contributed to the completion of this report. mI would like to
thank Prof. Puskar Kumar Sharma, the programme Director of BBA at NCC and MR.
Krishna Thapa Deputy Director of BBA at NCC.. I would also like to thank Mrs. Kalpana
Pandey, the branch manager of Everest Bank Limited, Lagankhel for granting me the
permission to work in the organization. I express my sincere thanks to Mr. Ashish
Shrestha, my officer incharge during the internship. I would like to show my immense
gratitude to Ms. Asmita Basnet at Customer Service Department, Ms. Farida Manandhar,
Mr. Biswo Thapa and Mr. Rakesh Tandular at Cash and Remittance Department, Mrs.
Prity Baniya and Mrs. Sajana at Credit and Marketing Department and Mr. Jay Thapa at
Clearing Department and other stffs of Lagankhel branch for their cooperation and
guidance throughout my internship period.
Most of all, my thanks to Mr. Sudip Pandey, my instructor, for his guidance throughout
the preparation of this report. At last, I am grateful to all those people who have helped
me directly and indirectly during the internship period and in the preparation of this
report.
Thanking You
Mohit Rijal

TABLE OF CONTENTS

RECOMMENDATION.............................Error: Reference source not found

INTERNSHIP COMPLETION LETTRER....Error: Reference source not found
DECLARATION.....................................Error: Reference source not found
ACKNOWLEDGEMENTS........................Error: Reference source not found
TABLE OF CONTENTS..........................Error: Reference source not found
LIST OF TABLES...............................viiError: Reference source not found
ABBREVIATIONS.................................iError: Reference source not found

CHAPTER ONE
INTRODUCTION.......................................................................................................1-5
1.1Background of Study......................................................................................................2
1.2Objectives of Study.........................................................................................................2
1.3Methodology of Study....................................................................................................2
1.3.1 Organization Selection........................................................................................3
1.3.2 Placement............................................................................................................3
1.3.3 Duration of Internship.........................................................................................3
1.3.4 Activities Done....................................................................................................4
Section 1.4 Limitations of Study.........................................................................................4

CHAPTER TWO
INTRODUCTION OF THE BANKING INDUSTRY....................................6-10
2.1 Meaning of Banking......................................................................................................6
2.2 Evolution of Banking.....................................................................................................6
2.3 History of Banking in Nepal..........................................................................................7
2.4 Current Situation of Banking in Nepal..........................................................................8
2.5 Opportunities and Challenges Faced by Banking Industry.........................................10

CHAPTER THREE
INTRODUCTION TO EVEREST BANK LIMITED...................................11-18
3.1 History of Everest Bank Limited.................................................................................11
Present Situation of the Bank............................................................................................12
3.3 Technology Used by the Bank.....................................................................................13
3.4 Institutional Thrust.................................................................................................13-14
3.4.1 Vision................................................................................................................13
3.4.2 Mission..............................................................................................................13
3.4.3 Objectives..........................................................................................................13
3.4.4 Future Plans and Strategies...............................................................................14
3.4.5 Awards...............................................................................................................14
3.5 Products/ Services offered by the Bank..................................................................14-18
3.5.1 Services Offered at Customer Service Department...........................................14
3.5.2 Services offered at Cash and Remittance Department......................................16
3.5.3 Services Offered at Clearing Department..........................................................17
3.5.4 Services offered at Credit & Marketing Department........................................18
3.6 Opportunities and Challenges to the Bank..................................................................18

CHAPTER FOUR
ANALYSIS OF ACTIVITIES DONE................................................................19-26
4.1 Activities Performed in Customer Service Department.........................................19-22
4.2 Activities Performed in Cash and Remittance Department.........................................22
4.3 Activities Performed in Clearing Department.............................................................22
4.4 Activities Performed in Credit & Marketing Department...........................................24
4.5 Problems Identified and Solved.............................................................................24-26

CHAPTER FIVE
CONCLUSION/ LESSONS LEARNT..............................................................27-28
5.1 Summary..........................................................................................27
5.2 Lessons Learnt.............................................................................................................27

Bibliography
Appendices

LIST OF TABLES

Table No.

Tables

Page No.

Table 1.1

Duration of internship

Table 2.1

Financial Institutions in Nepal

Table 3.1

Present Situation of EBL

12

ABBREVIATIONS

ABBS

Any Branch Banking Service

AD

After Death of Christ

ATM

Automated Teller Machine

BBA

Bachelors in Business Administration

BS

Bikram Sambat

CSD

Customer Service Department

EBL

Everest Bank Limited

ECC

Electronic Cheque Clearing

FIs

Financial Institutions

IT

Information Technology

NGO

Non Government Organization

NRB

Nepal Rastra Bank

OBC

Outward Bills Collection

SCT

Smart Choice Technologies

SMS

Short Message Service

SWIFT

Society for Worldwide Inter-bank Financial

Telecommunications

SN

Serial Number

TT

Telegraphic Transfer

TU

Tribhuvan University

CHAPTER ONE
INTRODUCTION

1.1 Background of Study

A Bachelor in Business Administration (BBA) is the academic program under the
affiliation of Faculty of Management, Tribhuwan University (TU) with eight semester
provision covering an International standard period of four years. This BBA program
exposes students to a variety of core subjects and allows students to specialize in specific
academic area. BBA program is a program designed to give both theoretical and practical
knowledge to the students.
Internship is the part of BBA curriculum as prescribed by the TU. As part of the academic
requirement, students must undergo eight weeks of internship in an organization.
Although the course design is very much practical in all the semesters with field work,
report preparation, presentation etc., the last semester aims to provide the student with
real world experience as to how the work is done in the day-to-day life, what are the
issues the business firms need to address and many others. An internship is an academic
curriculum-based practical work experience in a particular field of study. It provides
students to participate in the real life organization setting outside the classroom and also
provides opportunities through interactions and observations in the organization.
I did my internship in Everest Bank Limited (EBL), Lagankhel Branch. An intern is
provided opportunity to diagnose how different department of bank operates. An intern
also got the opportunity to apply some of his theoretical knowledge in the vast practical
world. The report entitled An internship report on Everest Bank is the outline of my
experiences and observations of these eight weeks at the bank. Everest Bank Limited,
Lagankhel has different departments like credit and marketing department, remittance
department, customer service department, clearing department and cash department.
During the initial weeks, the intern got the opportunity to collect experiences about the

Customer Service Department (CSD) & clearing department. Customer service

department is there for the convenience of customers. CSD basically, works as a bridge
between customers and other functions of the organization. Clearing department is there
to collect cheques of other banks of its customers. Bank as a drawer credits the account of
the customer if essentials for clearing are met. Credit department is there to transfer the
fund from savers to the users. It assists different institutions and individuals with its tools
and instruments of granting credit, which are formed of deposits and other sources. Cash
department disburses and collects cash to and from the customers. Remittance department
collects and disburses remittance amount of its customers, it also disburses amount of
those other than bank account holders if sent to Everest Remit.

1.2 Objectives of Study

The general objective of internship program is to acquire learning as well as working
experience and gain practical exposure in the real-life working situation. The main
objective of the program is to analyze the activities being carried out in the banking
industry and enhance knowledge and practical skills during that period. Putting it all
together, the specific objectives of the study are listed below:
1. To learn about the activities done in the customer service department.
2. To observe and learn the activities done in cash and remittance department
3. Learn about clearing of cheques in the bank.
4. Observe and learn the activities done in Credit and marketing department.

1.3 Methodology of Study

Methodology is the description of the procedure followed while collecting the necessary
data and information needed for research work and report preparation. Various data were
collected by interaction with the staffs and the operational knowledge gained is the major
source of primary data for this study. Besides, the website of the bank, previous
internship reports and the banks annual report are the sources of secondary data.

1.3.1 Organization Selection

BBA students have great opportunity to do the internship in the banking sector. As for my
BBA course, the selection of the good organization was very important for my internship
and commercial banks are the appropriate organization where I could tally my theoretical
knowledge into practical implications. While selecting the banks I was looking for the
bank where I can learn a lot about banking as well as financial activities so I happen to
select the Everest Bank Limited. The intern has selected the financial institution which
helps to broaden the knowledge about the banking sector. The intern chooses Everest
Bank Limited because it has long history of struggle and success.
1.3.2

Placement

During the two months of internship period the intern was placed in altogether four
different departments. They are Customer Service Department, Remittance & Cash
Department, Credit and Marketing Department &Cheque Clearing Department.
,
1.3.3 Duration of Internship
Internship gives an outline or frame of the activities performed in the organization and
teaches student how-to manage all the activities effectively and efficiently for the
prosperity of the organization. The intern was allowed to work for 2 month in different
department of EBL, Lagakhel Branch.
Table 1.1 Duration of Internship
SN

Departments

Duration in Weeks

Customer Service

Cash and Remittance

Cheque Clearing

Credit and Marketing

1.3.4 Activities Done

During the period of internship, as an intern various activities are performed. While
placed at various departments numerous activities were done. Those activities are
summarized below.

1. Activities Performed at Customer Service Department

Dealing with customers, handling their queries and explain about their interest products,
providing different types forms to customers, opening and closing of accounts,
preparation and issuance of cheque book, bank statement sct and others.
2. Activities Performed at Cash and Remittance Department
Maintenance of records in vault book register, providing different forms to customers,
counting and sorting of cash and others.
3. Activities Performed at Clearing Department
Maintaining register of cheque clearing and electroic scanning of cheques using ECC
system.
4. Activities Performed at Credit and Marketing Department
Arrangement of loan documents. Enquiring to clients about different loan Schemes
available, printing and photocopy of assisting documents

1.4 Limitations of Study

In the course of learning following limitations were faced:

1. Inadequate Information
Staffs are not supposed to provide adequate information to intern. Information access was
limited. Only superficial information is supposed to be provided which are not sufficient
to know the bank deeply.
2. Time Period
The limitation of time to eight weeks is not sufficient enough to go through the in-depth
study of each and every department. Intern is not allowed to learn the overall banking
system.

CHAPTER: TWO
INTRODUCTION OF THE BANKING INDUSTRY
2.1 Meaning of Banking
Bank is a financial institution which deals with the monetary transactions. The major
function of the bank is to accept deposits and provide loans. The bank attracts deposits
from various investors by providing certain rate of interest, and investing the
accumulated funds as loans to others who are in need of fund by charging slightly higher
rate of interest than they provide to the depositors. Bank acts as an intermediary who
bridges the gap between the savers of fund and the users of fund.
According to Nepal Rastra Bank Act (2002) Banking means accepting deposits for the
purpose of lending or investment of deposits of money from the public, repayable on
demand or otherwise and withdraws by cheque draft order otherwise.
A bank generates a profit from the difference between the level of interest it pays for
deposits and other sources of funds, and the level of interest it charges in its lending
activities. This difference is referred to as the spread between the cost of funds and the
loan interest rate.

2.2 Evolution of Banking

The early banking however is closely associated with the business of money changing;
the origin of the banking in the modern sense was started from Italy. The term bank is
derived from the Latin word bancus Italian word Banko meaning the portable
benches or counters over which the money changer comes in, French word banque
which means a brench and a German word bank which means Joint Stock Company .
In most simple form, banking is as old as authentic history. The early bankers, the Jews in
Lombardy, transacted third business at benches in the marketplace. When they were
unable to meet their liabilities, the depositors used to break their benches and the term
bankrupted was derived (Thapa, & Neupane, 2013).

The bank of Venice, established in 1157 AD. is supposed to be the ancient bank.
Originally, it was not a bank in real sense being simply an office for the transfer of the
public debt. Subsequently, bank of Barcelona (1401 AD) and Bank of Geneva (1407 AD)
were established. The Bank of England, first English bank, was established in 1694 AD.
The bank of Hindustan established in 1770 AD is regarded as the first bank in India. The
modern Banking system is leading the world countries in the 19 th century. Therefore, this
trend of banking slowly began to increase and spread initially all over the world. Finally,
Nepal Bank Limited was in 1937 AD as the first bank in Nepal (Thapa, & Neupane,
2013).

2.3 History of Banking in Nepal

The history of bank development is not long in Nepal. Goldsmiths, merchants and
moneylenders like in other countries were the ancient bankers of Nepal. The concept of
modern banking system is very new to the himalayan kingdom. However, when the
history is traced, it can be found that the existence of banking practices started in the
eighth century. According to Nepalese history, in 1723 BS Gunakama Dev, the king of
Kathmandu had borrowed money to rebuild and rule Kathmandu. The banking history in
Nepal is relatively new even though the numbers of banks can be found operating in
Nepal. The establishment of Kausi Tosha Khana during the regime of Great Prithivi
Narayan Shah and Tejarath Adda during the Prime ministership of Ranoddip Shah
around 1877-1933 BS were the banking agency of those times and can be regarded as the
initial step toward the origin and the establishment of banking sectors in Nepal. However,
with the establishment of Nepal Bank Limited in 1937 AD the banking system came into
Nepal. Thus, Nepal Bank Limited is considered as the first commercial bank of Nepal
(Thapa, & Neupane, 2013).
After the establishment of Nepal Bank Limited, later on the Nepal Rastra Bank, Central
Bank of Nepal was established in 1956 AD. In order to make the banking system more
systematic and organized, many Acts and Laws were made. Subsequently Rastrya
Banijaya Bank with 100% government ownership was established on 10 th Magh 2022 BS.

Similarly, under the Agriculture Development Bank Act 2014 BS. Agricultural
Development Bank was established on 7th Magh 2024 BS (Thapa, & Neupane, 2013).
Later on Government become liberal and flexible, and amended many of its Acts and
Rules. A number of joint venture banks with the foreign investments started to come and
operate in Nepal. Consequently, Nepal Arab Bank (presently Nabil Bank) was
Established in 1984 AD. Similarly, Nepal Indosuez Bank was established as a joint
venture between Nepal and France in 1984 AD, Nepal Gindlays Bank (presently known
as Standard Chartered Bank) was established in 1987 AD as the country followed
economic liberalization; there was massive entrance of foreign banks in Nepal.
Himalayan Bank Limited as a joint venture with Habib Bank Limited of Pakistan was
established in 1993 AD. Likewise, Nepal SBI Bank as a joint venture with State Bank of
India was established in 1993 AD (Thapa, & Neupane, 2013).
Nepal Bangladesh Bank as a joint venture with international finance and commercial
Bank of Bangladesh was established in 1994 AD. Similarly, Everest Bank Limited was
established as the joint venture with Punjab National Bank in 1994 AD is the examples of
the expansion of the banking industry in Nepal. And by 2010 AD Nepal has opened its
doors for the foreign banks to operate in full ownership (Thapa, & Neupane, 2013).
Presently, there are 30 Commercial Banks that are operating in Nepal that has been
clearly shown in Appendix- I.

2.4 Current Situation of Banking in Nepal

Currently the banking sector is evolving to be very competitive and challenging. The
fastest growing and emerging industrial sector today is not other than banking. It is
flourishing and upgrading day by day. Talking about its life cycle it is at its saturation
point. Banks are using various new technological advancements to provide timely, fastest
and economical services to the customers.

Banks with the collaboration of other financial institutions, ITs and other organization
are always trying to attract the customers. The different ages of banking sector clarifies
the improving current scenario of banking. It can be summarized as in following points:

Shift from traditional book keeping system to computerized system for keeping

records.
Use of various financial tools and software like NEWTON, PUMORI, FINACLE

for record keeping and networking.

Emergence of Management Information System (MIS) in banks for database,

financial analysis, research etc

Use of electronic tools for banking like ATM cards, Credit cards, Any Branch

Banking System (ABBS), web remit, Swifts, e-banking, mobile banking etc.
Shift to real estate investment, housing and other various schemes. But with the
tightened policy of central bank, it is slowed down.
Table 2.1 Financial Institutions in Nepal

SN

Financial Instutions

Numbers

Commercial Banks

30

Development Banks

75

Finance Companies

48

Micro Development
Banks

36

(Source: NRB, Publications and Reports, 2013)

2.5 Opportunities and Challenges Faced by Banking

Industry
Opportunities and challenges are the uncontrollable factors that affect the
functioning of the bank. The bank must be able to scrutinize these external forces
and respond accordingly. The opportunities for a bank can be suitable law and
banking rules and regulations provided by the government, increasing remittance from
and within the countries, improving banking habits of the citizens, introduction of
innovations and technology into banking industry etc. Customers nowadays are becoming
financially aware and they are conscious about the ways that can help them mobilize their
savings. This provides a great opportunity for the bank to gain access to more customers,
thus increasing their area of operation.
Challenges for banking industry arise from domestic conflict, lack of skilled and
competent human resources, rivalry among existing banks, threat of new entrants and
substitutes, etc. which may adversely affect the operation of the bank. Banks must try to
critically analyze these challenges and prepare itself to convert its effect into positive
result as far as possible.
In context of Nepalese banking industry, the opportunities arise from advancement of
technology; deregulation and liberalization; investment opportunities in various economic
sectors etc. Also Nepalese banks can explore into rural markets via innovative and
convincing products. The major challenge faced by Nepalese banks is political instability,
burning issues of money laundering and terrorist financing, cyber crimes etc.
Furthermore, globalization may offer both opportunities and threats to commercial banks.
Due to globalization, Nepalese banks may have to compete at international level.
Nevertheless, the banks can reap the benefits from technology transfer, accessibility to
global market etc arising out of globalization. Similarly, recent trend of mergers and
acquisition may pose threats as well as opportunities to Nepalese commercial banks.

CHAPTER THREE
INTRODUCTION TO EVEREST BANK LIMITED

3.1 History of Everest Bank Limited

Everest Bank Limited (EBL) was registered in November 17, 1992 and came into
operation in October 1994 with a view and objective of extending professionalized and
efficient banking services to various segments of the society. The bank had an initial paid
up capital of Rs 3 crores. Today the bank has grown to become one of the leading banks
in Nepal. The bank is providing customer friendly services through a network of 53
branches across the nation. EBL is joint venture bank with Punjab National Bank (PNB),
India in 1997 and turned into a highly profitable bank. PNB provides top management
support under the technical service agreement (Everest Bank, 2015).
EBL is one of the first banks to introduce Any Branch Banking System (ABBS) in Nepal.
EBL has introduced Bank of Wheel system, whereby the bank is installed in a vehicle
and moves around to various places to serve the segment deprived of proper banking
facilities. EBL is the bank having representative office in foreign soil. The office
facilitates remittance and Nepalese working in India can even open accounts through the
office. EBL has strived to establish itself as a strong brand that creates an image of local
bank that is easy to access and reliable. The bank has been conferred with Bank of the
Year 2006, Nepal (Everest Bank, 2015) by the banker, a publication of financial times,
London. The bank was bestowed with the NICCI Excellence award by Nepal India
Chamber of Commerce for its spectacular performance under finance sector.
EBL in association with Smart Choice Technology (SCT) and VISA is providing ATM
service. ATM sharing arrangement with PNB has facilitated usage of EBL debit card at
more than 1000 PNB ATM outlets across the India at a nominal rate.

3.2 Present Situation of the Bank

Catering to more than 6.5 lacs customer today, EBL has been one of the leading banks of
the country and has been catering its services to various segments of the society. EBL
provides customer friendly services through its wide network connected through ABBS
system, which enables customers for operational transactions from any branches. The
bank has 53 branches, 74 ATM counters, 5 extension counters and 22 revenue collection
across the country making it a very efficient and accessible bank for its customers
anytime, anywhere. There are eight members in board of directors (four members from
owners, two members from PNB and two members from public shareholders) and five
members in management team of the bank. Details of of board members and management
team are shown in Appendix- II. Currently EBL employees 696 people around the nation
to serve its customer (Everest Bank, 2015). Currently EBL has Rs 2000000000 of
authorized capital, Rs 1921239051 of issued capital and Rs 1921239051 of paid up
capital which has been shown in Appendix- III.
As per the banks late published annual report (2070/71) EBL has been able to increase
its deposits by Rs 438.76 and Rs 425.25 in loans and advances. Bank has been able to
increase its net profit after tax by Rs 7.86crore. Bank has a closing cash balance of Rs
131.73crore.
Furthermore, the present condition of EBL can be portrayed from the table below.
Table 3.1 Present Situation of EBL
SN Particulars

Previous year in Rs.

(2069/70)

This year in Rs.

(2070/71)

Share Capital

1921239051

2137387737

Loans and Advances

4419.78crore

4845.03crore

Deposits

5772.05crore

6210.8crore

Net Profits

1471117291

1549698560
(Source: EBL Annual Report, 2015)

3.3 Technology Used by the Bank

The banking software currently in use is Finacle and has been efficiently uses in the
branch offices. This software is the most commonly used software by Nepalese banks.
Society for Worldwide Inter Bank Financial Telecommunication (SWIFT) is the other
mode of technology to make the remittance services that has been used by this bank. The
bank also offers the Any Branch Banking System (ABBS) in all the branches. The bank is
providing the Debit card facilities under Smart Choice Technology (SCT) network. This
facility enables the customers to withdraw cash from any ATM terminals located at
different parts of the country. It also facilitates the SMS, Mobile, utility bill payment and
I-banking which enables the customers to know the transaction details sitting in their
homes.

3.4 Institutional Thrust

3.4.1 Vision
To position it as a progressive and customer friendly bank providing financial

other related services.

To cater to various segments of society using advanced technology.
To be committed to excellence in corporate values

3.4.2 Mission
To provide excellent professional services and 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 an effective
catalyst for socio economic developments.

3.4.3 Objectives

To become a leading bank by providing quality product and services.

To ensure and provide attractive return to the shareholders.
To provide higher expected returns on their investment.
To bridge the gap between savers and users of the fund effectively and efficiently.

3.4.4 Future Plans and Strategies

Every organization whether it is big or small, profit oriented or non-profit oriented, have
plans and strategies. Planning is the process of setting objectives and choosing the actions
to achieve them. Similarly, EBL also has some plans and strategies to move forward with,
which can be listed down as below:
1. Increase in branch network.
2. Increase customer base by upgrading information technology initiatives to reduce
transaction time and cost of transaction and providing alternative delivery channels.
3. To increase customer base in low cost deposits with a view to reduce average cost of
deposits.
3.4.5 Awards
The Everest bank has been awarded by following awards:
The bank has been conferred with Bank of the year 2006, Nepal by the banker
publication of Financial Times, London.
The bank was bestowed with the NICCI Excellence Award by Nepal India chamber of
commerce for its spectacular performance under finance sector.

3.5 Products/ Services offered by the Bank

Everest Bank Limited provides a wide range of remittance services to its customers.
Some of which are listed as below.

3.5.1 Services Offered at Customer Service Department

Below is the list of services offered at Customer Service Department.
1. Deposits
a) Current Deposit

It is non-interest bearing account which is opened purely for business purpose. Any
individual, profit or non-profit organization can open current account in Nepalese Rupee
or in different convertible foreign currencies.

Deposits or withdraw any amount after meeting the minimum balance as set by

the bank.
Not only for saving but also for convenience.

b) Call Deposit
In call account individual can park your excess fund for short period. Interest rate is
based upon volume, tenure, nature of transactions etc.
c) Saving Deposit
These accounts are designed to help individuals saving habit to meet the future
requirement. This is interest bearing account which remains liquid and safe. Individual
can plan and save their earned money for the future financial needs.
Easy to operate EBL savings account allows having instant access to your saving

from any branch or SCT networks of EBL.

Personalized cheques with name printed on cash cheque leaf for enhanced
security.

d) Fixed Deposit
A fixed time deposit is the deposit of funds in a depository institution for a specific
period. This is fixed interest bearing deposit. Generally higher interest is paid for the
deposit of longer-term and vice-versa. There are two types of fixed deposit accounts and
they are cumulative and non- cumulative fixed deposit accounts.
EBL provides varieties of deposit schemes which are shown in Appendix- IV
2. Debit Card
EBL Debit Card is key to ultimate convenience regarding day to day monetary
transactions providing customers the power of real cash in form of card. Associated with
the Smart Card Technology (SCT), it facilitates wide sharing of ATMs under SCT
network. Everest Bank Ltd (EBL), a joint venture partner of Punjab National Bank (PNB)
is always committed towards excellent services for the people who believe in quality
banking. Introduction of EBL Debit card is a step in the same direction.
3. Other Facilities

Other facilities include SMS banking and e-banking services, handling customer queries,
merchant banking activities like underwriting of locker facility, standing instructions,
consulting services etc.
3.5.2 Services offered at Cash and Remittance Department
Below is the list of services offered.
1. Demand Draft
Demand draft is a cheque drawn by a bank on its own branches or on its correspondence
banks branches. At EBL, customers can easily remit funds to beneficiaries outside Nepal
through demand drafts. Customers can use drafts of PNB for remitting in Indian Rupees
to almost every corner of India.
2. Telegraphic Transfer (TT)
Telegraphic transfer (TT) is method where two banks exchange test keys to ensure
authencity of the messages between them. EBL has test key arrangements with various
international banks. At EBL, customers may use this service to remit/ receive funds.
3. Everest Remit and Moneygram Exchange are one of the most accepted methods of
remitting funds by Nepalese working outside the country. EBL has its own remit i.e
Everest Remit. At EBL all customers, a/c holders or none can receive funds remitted by
their relatives and friends from different part of the world within the minutes without any
hassle. Its customers can easily remit amount to India up IRS 10000 per day.

3.5.3 Services Offered at Clearing Department

Clearing is the process through which financial institutions (FIs) exchange cheques and
other payment items that they have accepted. There are two types of clearing:
Inward Clearing: If our cheques come back in our own bank then it is called

inward cheque clearing.

Outward Clearing: If the cheques of other banks come in our bank, then it is

called outward cheque clearing.

Some of the services offered at clearing department are as follows:
1. Recipient of Cheques
Cheques of other institutions are received along with the deposit slips of EBL, with the
name and account number written in the cheque.
2. Disbursement of Deposit Slip

After receiving the cheque with deposit slips the necessary signs and stamps are to be put
on the deposit slip and returned back to depositor.
3. Electronic Clearing of Cheque
The received cheques are scanned using the ECC machine, the information about the
cheque are stored in a database. The information about the cheque is authorized and send
to clearing house for the settlement of payment.

3.5.4 Services offered at Credit & Marketing Department

EBL as a business firm acquires funds from surplus economic units at lower rate
repackage those funds and provide them to deficit facing units at a higher rate to earn
profit.
The detail of all types Loan services of EBL is shown in Appendix- V.

3.6 Opportunities and Challenges to the Bank

Opportunities and challenges are uncontrollable factors that affect the functioning of the
bank. The bank must be able to scrutinize these external forces and respond accordingly.
EBL being the pioneer bank, its main opportunity is the customer trust which has helped
the bank to increase its market share. Many large business organizations make their
through this bank. The presence of the branches throughout the country is also one of its
opportunities. EBL has its great opportunity of expanding its market share because of it
joint venture with PNB, India.
The existence of other competitive financial institutions has been the biggest threat to this
bank. The market share have been divided, its like a shared cake. Another challenge is
the technical update. Further the training and development of the employee is also the
challenge if any employee is transferred to another branch then in order to perform his/
her job the right person in prior should be prepared and well trained so that the work
would not be halted

CHAPTER FOUR
ANALYSIS OF ACTIVITIES DONE

As intern is placed in different departments, various activities are performed related with
customer service, clearing, credit and remittance department. As an intern assigned to
different departments, various activities are performed. The activities performed can be
explained as follows:

4.1 Activities Performed in Customer Service Department

Customer Service department is a primary level department that generally deals with
customers directly and regularly. Activities done by intern at CSD are as follows.
1. Account Opening & Closing
Any interested customer who wishes to open an account in EBL is inquired about the
type of account customer wants to open, then customer is provided with account opening
form and is requested to fill up account opening form and attach all required documents.
After the form is filled up by customer, intern verifies the form and passes on to the CSD
head for final verification. After the approval from CSD head, CSD staff opens an
account in bank on the name of respective customer. Then the customer is provided with
an account number and requested to deposit at least minimum amount according to their
account type.

During account opening time intern asks customer whether customer need other services
offered by bank like the ATM Card service, internet banking service, SMS banking
service etc and if customer is interested to get those services then customers are asked to
fill up respective forms to get those services.

Customers do not open account only; sometimes they close the existing account. Intern
provides account closing form to the customer, and then helps them to fill up the form.
After the form is filled completely, intern asks customer to return remaining cheques and
ATM. Intern forwards account closing form to CSD head.
2. Statement Printing
Any customer who wants to have bank account statement print is requested to fill up
bank account statement request form and submit it, then intern verifies account number,
account name, account holders signature and then provides respective bank account
statement print to respective customer.
3. Scanning and Photocopy of Documents
Various documents like specimen signature cards, photographs, citizenship, passports etc
should be properly scanned and photocopied and entered into bank system so that it could
be accessed easily when it is needed. Intern does the above mentioned tasks.
4. Handling Customer Queries
Different queries of different customers should be handled in a very effective way so that
customer gets satisfactory solution of their queries. While dealing with customers first we
need to listen to the customer patiently and understand their queries or problems only
after that we should provide the appropriate information or the solution as per customers
need in very polite manner. If intern do not have the appropriate information about the
customers queries then intern should ask to other staff and provide appropriate
information to customer as quickly as possible.
5. ATM Card Issue
While opening a bank account, customer is inquired about the need of ATM Card. If
customer is willing to take ATM card service then ATM form is be given to customer to
fill. Once the form is filled up intern will verify it and send it for the further processing.
Customer is requested to come and collect their ATM card in one week.

After one weeks bank receives the ATM card from head office of the respective customer
if customer requests for VISA, SCT card is provided after a day of account opening.
When the customer comes to collect the ATM card, CSD staff verifies the signature of the
customer and intern issues the ATM card to the respective customer along with ATM Pin
number.
6. Chequebook Issue
When account holder used the entire cheque leaves bank issue cheque book to the
customer. When customer fill up the cheque requisition slip that is attach along with
cheque book. Cheque books are usually made in a day and are arranged in a
chronological order. In the course of this activity intern prepares chequebook,
acknowledgement letter, register the customer information and others.
7. Phone Communication Handling
The CSD department is responsible for handling phone calls coming from outside. Intern
is responsible to answer questions of the customers and provide account related
information via telephone. After receive phone calls transfer to the branch manager,
operational in charge and cash department and other departments.
8. Signature Change
If any customer is willing to change customer signature for any genuine reason, a form
called SPECIMEN SIGNATURE CARD is given to fill it, CSD staff will verify the
form along with the documents, before that inter reviews the document.
9. Instructing to Fill up Forms for Different Reasons
There are many other works to be done in the bank by intern. Some new people come to
the bank for cash deposit. They are well drilled to fill up the voucher consequently.
Similarly, some people approach there if their account is dormant. The account becomes
dormant if no transaction is made for the period of six month. For these types of
customers intern provides form and instruct them to fill up for activating their account.

As such in case of lose of debit card, people come there and they are again privileged by
a form in order to get a new card. This all is executed by intern with no negligence.
10. Filing and Documentation
Filing and documentation are very important task that the CSD staffs do. The entire paper
work has to be done simultaneously to the computer work. At the end of the office day
intern is responsible to file the documents that has been approved the whole day.
Documents includes: account opening and closing form, dormat form, acknowledgement
form, debitcard form, SMS banking form and others.

4.2 Activities Performed in Cash and Remittance Department

Besides customer service department, activities are done in remittance department during
the internship period in EBL. Everest remit, Demand Drafts, Telegraphic Transfers etc.
are the major modes used for remittance business by EBL. Intern helped the customers to
fill the remittance slip, checked the necessary details to be filled up and also assisted the
staff in the department to photocopy the necessary documents. Intern stamped and
stitched the necessary documents. Intern counted the cash of remittance and disbursed the
amount after the verification of transaction by the staff. Intern inquires different people
about the exchange rate of different dates and communicated to people about the
availability of different currencies at the branch.

4.3 Activities Performed in Clearing Department

The activities performed in clearing department are entitled below.
1. To collect Other Bank Cheque
Through the clearing system, other banks cheque amount can be directly deposited to
banks customer account. So, many customers deposits cheques for clearing. Intern had to
collect all the cheques for clearing and then check the cheques thoroughly. Intern also
checks the account no in deposit slip. If everything is correct Intern receives it and places
it for further processing.

2. To put Necessary Stamps on the Cheque

After collecting the cheques, Intern puts the necessary stamps on the cheque. The stamp
includes cross stamp of EBL bank, cheque receive date stamp, endorsement stamp and
signature backside the cheque.
3. To Process the Outward Cheques Electronically
Once the cheque is stamped and signed is done, then it is processed through Electronic
Cheque Clearing (ECC) system. Intern scans the cheque in ECC scanner. Then necessary
details like Beneficiary's name, Beneficiary's bank account number, Amount of cheque,
drawee banks name and its branch, drawers account no. etc. Once the entire detailed are
filled, it is forwarded verifier for verification. If all the details are correct, verifier
forward it to the ECC system for clearing. If there is any error, verifier returns back to
repair the cheque for correction.
4. To Forward Cheques for Collection
Some financial institutions are not member of Nepal clearing house limited. So, their
cheques cant be processed through ECC. They need to be cleared manually. Intern had to
separate of cheques of such institution, and then forwarded to head office for the further
processing.
5. To Generate Necessary Report
At the end of the day, Intern had to generate ECC report regarding honored and
dishonored cheques. The report shows whether the cheques are accepted or return along
with reasons for return. If the cheques are return, intern had to inform customer about
return of cheques.

6. Counting the Number of Cheques

At the end of the day, Intern had to count the number of receiving cheque, clearing at that
day, accepting and returning cheque. After counting all cheque and then forwarded
messenger to keep in the volt.

4.4 Activities Performed in Credit & Marketing Department

Intern observes and does some of the activities of credit and marketing department.
During interns tenure at credit department intern helps the credit department staffs to

search the loan clients files, prepares necessary documents that is necessary to get loan at
EBL. Intern enquires about different loan schemes to the clients. Intern calculated the
installment amount of some clients and instructs them about the process of repayment of
loan. Intern makes photocopy of necessary loan documents. Intern assisted the clients in
opening flexi account that is necessary to obtain loans. Intern prepares the document of
institutional loan clients. Intern handles the telephone at credit department and forwarded
it to respective staffs.

4.5 Problems Identified and Solved

During internship program, although Everest bank is able to meet the changing need of
customers. In spite, of that some problems have been analyzed and best suitable measures
have been taken to minimize the problem and solved them while working at EBL.
Following are some of the problems faced during internship:
1.
2.

Communication Problem
Grievances Handling

3.

Unsystematic Handling of Things

4.

Hesitations of Customers

5.

Work load Problem

The above mentioned problems have been analyzed during internship program. So to
handle these problems following steps have been taken for each problem.
1. Communication Problem:
Most of customers are locals with minimum education qualification. They dont have
proper knowledge regarding the terminologies used in different forms, vouchers etc. as
forms are printed in english language.
To solve this problem as an intern they were clearly made understood about the
terminologies used by translating in simple and understandable language, which help
them to fill up the form correctly and within short period of time.
2. Grievances Handling

It is most important problem among the problems. If it is not handled properly, it directly
affects the banks image; as a result customers are dissatisfied. They will stop transacting
with the particular bank and switch to other bank which are eagerly waiting to provide
them service.
To solve this problem customer service department can play the important role, as this
department is mainly in interaction with their customers. So, as a staff at CSD intern
interacts with customers by being keenly interested in listening their grievances properly
and try to solve them. If the problem is critical then it should be forwarded to CSD head
for solution.
3. Unsystematic Handling of Things
Unsystematic management leads to failure. Unsystematic handling of thing is also a
problem .It is not a big problem, but if it is not managed properly and timely it directly
affects the efficiency of baking activities.
To manage this problem things were managed in a systematic way, so they are readily
available wherever and whenever needed creating a mark to efficiency.
For e.g. At CSD cheques order request are taken and they are issued. Main problem was
that when the customer visits us and request for their cheque books, it would take a long
time to search for the respective cheque book. This had been a time consuming act for
customers resulting to their dissatisfaction. To handle this problem cheques were
alphabetically arranged in a date wise format. Issued cheques of the particular date were
tagged with the similar date and kept in one side. This leads to increase efficiency and
customer does not have to wait for long.
4. Hesitations of Customers
It is one of the problems faced by most of the bank nowadays. It is difficult to identify
since it is related with psychology aspects of customers (customers behaviors). Some
customers hesitate to convey their problem to the related staff. For e.g. sometimes if
customer do not know how to feel up the forms or even if they have to ask a piece of a

simple information, they prefer not to inquire about it. The bank cannot read the mind of
each and every customer who visited the bank.
To solve this problem taking initiation to ask customers regarding their problem
frequently and create the customers friendly environment so that they will feel at ease and
themselves convey their problem.
5. Work Load Problem
At the opening and closing time work load is high. So, sometimes it is difficult to provide
immediate services to customers, which leads to dissatisfaction of customers. To solve
this problem, increase in the numbers of working hands directly helps to reduce the work
load. At the same time more customers are facilitated with banking facilities, which
directly benefited the bank.

CHAPTER FIVE
CONCLUSION/ LESSONS LEARNT

5.1 Summary

The internchip period at EBL was a successful one, intern learned about general working
procedure of banks. Customer Service Department is called as front desk as customer
first contact in this department for their queries which is one of the most important
departments of any bank. The department is responsible for providing the surface level
assistance to the customers. Cash and Remittance Department is there to provide cash
related facilities to its customers. Similarly clearing department is another department
responsible for settling the interbank transaction. Credit Department is there to provide
credit facilities to customers. All these departments of EBL are working to make the
organization number one in the industry. Intern is there for two months period wherein
the internee learns about general banking activities of the bank.

All in all, Everest Banks CSD, cash and remittance department, clearing department and
credit department are good enough to lead the bank to the success. EBL is excellent in
terms of its services, despite with some pros and cons with the issue related to customer
satisfaction. It has an opportunity to increase its market shares serving large number of
customer

5.2 Lessons Learnt

The internship period of eight weeks gives information about working environment
inside the bank. It has made an intern more confident and given the opportunity to show
that the intern has learned.
The lessons learnt by the intern during the internship period are as follows;

Acquire knowledge about the real working environment and the different aspects
of the managerial practices in the commercial banks of Nepal.

The importance of the proper organization culture and its effect on the
professional working environment. This relates to the effective communication
skills, team work, well-mannered behavior and the degree of social and
professional environment between the employees as well as with the customer.

The customer of any business organization is the key to the success of the
organization. So, the organization should not forget its existing customer and try
to retain its customer as well as attract new customer.

Authority and responsibility relationship among the various managerial and

subordinate level in the hierarchy of the commercial banks.

One should be punctual, hard working, dedicated to work and confident to be a

successful professional.

Learned about the system of cash collection and disbursement of banks and
maintaining records of those.

Learned about cheque clearance procedures.

Procedures for forms fulfillment of new account, closing a/c and or for ATM
card.

About the requirements of documents needed for opening, closing and applying
for ATM card.

Knew how balance of customers is checked and how balance statement is printed.

Knew how a/c verification from old a/c number is done and how printing of
checks is done.

To use scanner for scanning a/c holders photo, a/c number, phone number and
authorized signature.

In developing good interpersonal skill, patience, requirement of displayed

emotion, and harmonious relationship with customers.

Knew about various loan schemes and procedures to be followed in getting loan.

Apart from above mentioned points, internee learnt various interesting things which will
help in every step of success.

BIBLIOGRAPHY

Everest Bank Limited. (2015). Annual report. Kathmandu: EBL

Gautam, R. R., Gurung, R., Pokhrel, J., Kandel, R., & Sigdel, S. (2011). Foundation of
financial

institutions and markets. Kathmandu: Ayam Publication Pvt. Ltd.

Nepal Rastra Bank. (2012). Laws & legislations. Kathmandu: NRB

Nepal Rastra Bank. (2012). Publications and reports. Kathmandu: NRB

Saunders, A., & Cornett, M. M. (2007). Financial markets and institutions. New Delhi:
Tata McGraw Hill Education Private Limited.
Thapa, K., & Neupane, D.k. (2008). Banking & insurance. Kathmandu: Asmita Books
Publishers & Distributors (P) Ltd.

APPENDICES

Appendix I: Commercial Banks in Nepal as of July, 2014

S.N.
1.

Names
Nepal Bank Limited

Operation Dates
1937/11/15

2.

Rastriya Banijya Bank

1966/01/23

3.

Agricultural Development Bank Ltd.

1968/01/02

4.

Nabil Bank Limited

1984/07/16

5.

Nepal Investment Bank Ltd.

1986/02/27

6.

Standard Chartered Bank

1987/01/30

7.

Himalayan Bank Limited

1993/01/18

8.

Nepal SBI Bank Limited

1993/07/07

9.

Nepal Bangladesh Bank Ltd.

1994/06/05

10.

Everest Bank Limited

1994/10/18

11.

Bank of Kathmandu Limited

1995/03/12

12.

Nepal Credit and Commerce Bank Ltd.

1996/10/14

13.

Lumbini Bank Limited

1998/07/17

14.

Machhapuchhre Bank Limited

2000/10/03

15.

Kumari Bank Limited

2001/04/03

16.

Laxmi Bank Limited

2002/04/03

17.

Siddhartha Bank Limited

2002/12/24

18.

Global IME Bank

2007/01/02

19.

Citizens Bank International Ltd.

2007/06/21

20.

Prime Commercial Bank Ltd.

2007/09/24

21.

Sunrise Bank Ltd.

2007/10/12

22.

NIC Asia Nepal Ltd.

2007/10/12

23.

Grand Bank Nepal Ltd.

2008/08/25

24.

NMB Bank Ltd.

2008/06/05

25.

Kist Bank Ltd.

2009/05/07

26.

Janata Bank Ltd.

2010/04/05

27.

Mega Bank Limited

2010/07/23

28.

Civil Bank

2010/11/25

29.

Century Commercial Bank

2011/01/23

30.

Sanima Bank

2012

Appendix-II: Board of Directors and the management team

S.No
.
1
2
3
4
5
6
7
8

S.No.
1
2
3
4
5

Board of Directors
Position

Members
Mr.B.K. Shrestha
Mr.Ved K. Shrestha
Mr. Arun Man Sherchan
Mr. Bal Gopal Baidya
Mr. Bishnu Mohan Panda
Dr. Rakesh Gupta
Mr. Nabin Bhakta Shrestha
Mr. Shiva Sharan K.C

Members
Mr. A.K. Ahluwalia
Mr. A.K. Bansal
Mr. Rajesh Gautam
Hum Nath Gurang
Pramod Raj Sharma

Chairman
Director
Director
Director
Director
Director
Director
Director

Representative
Promoter
Promoter
Promoter
Promoter
PNB
PNB
Public Shareholders
Public Shareholders

Management Team
Position
CEO
DY. General Manager
DY. General Manager
DY. General Manager
Company Secretary

Appendix-III Capital Structure of EBL

SN
1.
2.
3.

Capital
Authorized
Issued
Paid up

Amount in Rs.
2000000000
1921239051
1921239051

Appendix- IV Deposit Schemes of EBL

Planning & Development Circular No. 46 dt. 16/07/2015
Re: Revision in Interest Rate of Deposit Accounts
Given the present scenario, the ALCO meeting held on 16/07/2015 decided to revise the
Interest Rates as under:
Savings Deposit Account (NPR)
SN
1.

Account Types
Normal Savings (General)

Existing Rate
2% p.a.

Revised Rate
2% p.a.

2.

Savings- Shareholder

2% p.a.

2% p.a.

3.

Savings- NRN

2% p.a.

2% p.a.

4.

Pension Savings

2% p.a.

2% p.a.

5.

Freedom Savings

2% p.a.

2% p.a.

6.

Student Savings

2% p.a.

2% p.a.

7.

Saugat Savings

3%

2.50%

8.

Ghar- dailo Savings

3.25%

2.50%

9.

Savings Mobile ATM

3.50%

2.50%

10.

Baal Bachat

3.50%

3%

11.

Naari Bachat

3.50%

3%

12.

Supreme Savings

3.50%

3%

13.

Super Savings

3.50%

3%

14.

Remit Saving

3.50%

3.25%

15.

Salary Saving

3.50%

3.25%

16.

Saving Premium

3.50%

3.25%

17.

Daily General Savings (Singadurbar)

4%

3.25%

18.

Savings- Provident Fund

4%

4%

19.

Staff Savings

4%

4%

Savings Deposit Account (FCY)

SN
1.

Account Types
USD Savings

Existing Rate
0.75%

Revised Rate
0.75%

2.

Euro Savings

0.50%

0.50%

3.

GBP Savings

0.50%

0.50%

Call Deposit Account (NPR)

SN
1.

Account Types
A/c with existing rate of above 4% p.a.

Revised Rate
Maximum up to 4%

2.

A/c with existing rate of above 3% up to 4% p.a.

Maximum up to 3%

3.

A/c with existing rate of above 2% up to 3 % p.a.

Maximum up to 2%

4.

A/c with existing rate of less than 2% p.a.

No change

5.

Standard Rate

Maximum up to 1%

*the revision shall not be applicable for contracted accounts viz. NTC & NEA.
Call Deposit Account (FCY)
SN

Account Types

1.

USD Call

Existing
Rate
Maximum
1%

Revised Rate
Maximum
0.75%

Fixed Deposit (NPR)

SN

Period

1.

1 month to less than 3 months

Existing Rate
Individual
Institutional
2.50%
2.50%

2.

3 months to less than 6 months

3.00%

3.00%

2.50%

2.50%

3.

6 months to less than 1 year

4.00%

3.50%

3.50%

3%

4.

1 year to 10 years

5.00%

4.00%

4.50%

4.00%

Above revision shall be applicable with effect from 20th July 2015

Revised Rate
Individual
Institutional
2%
2%

Appendix IV: Loan Schemes of EBL

EBL provides:
Home Loan
Home Equity Loan
Vehicle Loan
Education Loan
Flexi Loan
EBl Property Plus
Professional Loan Scheme
Loan against Mortgage
Loan against Shares