Professional Documents
Culture Documents
INTRODUCTION
1.1 Background of the Study
Intern program as a new learning procedure simply can be defined as on the job training which
provides practical implement of the critical knowledge in real world experience before actually
steeping in to the real carrier. To gain practical knowledge which specific objective intern program is
there which have got its own value in the real world practice. Only gaining academic qualification is
not sufficient and productive, they need to know the real scenario where they have to work.
Cooperation of both students and the organization is essential to make intern productive. The
organization should understand what the internship is and should fully cooperate with intern to make
them understand what exactly the organization does.
Under the study of Tribhuvan University, the student of Bachelor in Business Administration (BBA)
have to do the internship for eight weeks in any organization recommended by the collage. During
this short period experience of intern an individual learn what type of task are solved, how the
problems are solved, how the decision are made by analyzing different activities/alternatives
behavioral aspect s like how to interact with other inside and outside staffs working in and out the
organization as well as with the visitors visiting in the organization. For this organization should
create an appropriate environment for intern by giving a chance to gain knowledge based on different
departments so that intern can learn the basic function or what exactly the organization does.
This study is mainly conducted on the basis of the primary and secondary sources of data.
Informal queries and interview are taken with concerned authority. Personal observation was
also conducted in order to acquire various, primary information needed to prepare this report
and fulfill the objective of study. The secondary data includes volume of different types of
product/service offered by the organization that are collected from the various website of the
organization.
1.3 Methodology
This study is mainly conducted on the basis of the primary and secondary sources of data.
Informal queries and interview are taken with concerned authority. Personal observation was
also conducted in order to acquire various primary information needed to prepare this report
and fulfill the objective of study. The secondary data includes volume of different types of
product/service offered by the organization that are collected from various internal records.
1.3.2 Placement
The Manager of MDBL placed the intern to look over Operation department, through which
the intern can gather experience and knowledge based on this department.
Activities
preliminary
Environment
Investigation
Analysis
Customer
Service
Department
Implementation/
Documentation
Information
collection
i. Observation
During the internship period, the intern observed the activities of personal of various
departments and their interaction with customers.
ii. Interview
During the internship period. The intern had also taken direct personal interview with
personal of various departments.
introduction
Chapter II
Chapter III
Chapter IV
Chapter V
Conclusion
CHAPTER II
BRIEF INTROUDUCTION OF THE BANKING INDUSTRY
Many of today's banking services were first practiced in ancient Lydia, Phoenicia, China, and
Greece, where trade and commerce flourished. The temple in Babylonia made loans from
their treasuries as early as 2000 BC. The temples of ancient Greece served as safe-deposit
vaults for the valuables of worshipers. The Greeks also coined money and developed a
system of credit. The Roman Empire had a highly developed banking system, and its bankers
accepted deposits of money, made loans, and purchased mortgages. Shortly after the fall of
Rome in AD 476, banking declined in Europe.
The increase of trade in 13th century Italy prompted the revival of banking. The
moneychangers of the Italian states developed facilities for exchanging local and foreign
currency. Soon merchants demanded other services, such as lending money, and gradually
bank services were expanded.
The first bank to offer most of the basic banking function known today was the Bank of
Barcelona in Spain. Founded by merchants in 1401, this bank held deposits. Exchanged
currency, and carried out lending operations. It also is believed to have introduced the bank
check. There other early banks, each managed by a committee of city officials, were the Bank
of Amsterdam (1609), the Bank of Venice (1587), and the Bank of Hamburg (1691). These
institutions laid the foundation for modern banks of deposit and transition.
For more than 300 years, banking on the European continent was in the hands of powerful
statesmen and wealthy private bankers, such as the Medici family in Florence and the
Fuggers in Germany. During the 19th century, members of the Rothschild family became the
most influential bankers in all Europe and probably in the world. This international banking
family was founded by German financier Mayer Amschel Rothschild (1743-1812), but it
soon spread to all the major European financial capitals.
The Bank of France was organized in 1800 by Napoleon. The bank had become the dominant
financial institution in France by the mid-1800s. In Germany, banking experienced a rapid
development about the middle of the 19th century with the establishment of several strong
stock-issuing or publicly owned banks.
Banking in the British Isles originated with the London goldsmiths of the 16th century. These
men made loans and held valuables for safekeeping. By the 17th century English goldsmiths
created the model for today's modern fractional reserve banking-that is, the practice of
keeping a fraction of depositors' money in reserve while extending the remainder to
borrowers in the form of loans. Customers deposited gold and silver with the goldsmiths for
safekeeping and were given deposit receipts verifying their ownership of the gold deposited
with the goldsmith. These receipts could be used as money because they were backed by
gold. But the goldsmiths soon discovered that they could take a chance and issue additional
receipts against the gold to other people who needed to borrow money. This worked as long
as the original depositors did not without all their gold at one time. Hence, the amount of
receipts or claims on the gold frequently exceeded the actual amount of the gold, and the idea
that bankers could create money was born.
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National Level:
A development bank is categorized into national level development bank if its authorized
capital is more than NRs.64,00,00,000.00. It can operate its function all over the country.
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CHAPTER III
INTRODUCTION OF THE ORGANIZATION UNDER STUDY
3.1 Introduction of the Organization
Metro Development Bank Ltd. was dually registered on 01/09/2066 B.S with Office of
company as per Bank and Financial Ordiance-2061 B.S. It is in operation from 01/09/2066
after the license from Nepal Rastra Bank.
The company is promoted by renowned and established businessmen, industrialists, bankers
and retired civil servant etc. The company is headed by a team of professionals having
extensive banking exposure. It is 'B' grade development bank which is categorized by NRB.
MDBL is located in a business centre Newroad as Head Office and have got its branches in
Bhorletar, Ratna Chowk. MDBL going to opening their branches at Hospital Chowk Pokhara
and Myagdi at near future. It aims to provide modern service to its clients in a secure way by
the financial intermediate by providing security of customers' fund growth of their security.
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Capital Structure
1. Authorized Capital: Rs.20,00,00,000
2. Issued Capital :
Rs.10,00,00,000
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Objectives:
To support socio-economic development of the country by extending credit to
productive for their financial benefits.
To ensure security and effective benefits to the depositors' deposit and
investors' capital
To ensure availability of fund to establish, develop, extend and improve
productivity by accepting deposits and providing loans.
To provide trustable banking service to the Industrialist, trader, professionals,
farmers, unions, organizations and whole citizens.
To develop industrial, tourism, trade and agriculture sectors of the nation
To use the available labors and capital resources for the development of local
sector.
To work as a dutiful organizational citizen and to help in environment
conservation and social development.
Future Plan:
MDBL aims to expand its branches in order to facilitate customers. So it is going to open its
branches in different places in order to provide banking service to all those who are deprived.
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CEO
Deputy Manager
Loan/Credit Manager
Assistants
Assistants
Operational Manager
Assistants
Unlimited withdrawal.
Personalized service like telephone enquiry of balances by authorized person.
Simplified Cheque Payments.
ABBS service
Remittance service
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The customers open Saving Current Account with NRs. 1000/- only
Competitive return can be gained.
7.25% interest on monthly minimum balance.
Withdrawal of Rs. 5,00,000/- on a single day.
For withdrawal up to 10,00,000/-, 3 days prior notice is required.
Rs 10,00,000/- withdrawal within a week.
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Overdraft facility:
To fulfill economic crisis during daily transactions for business people due to
lack of working capital, Metro Development Bank Limited will provide an
Overdraft Facilities.
The money receipt daily by the business people can be deposited in their
accounts so that the Interest will decrease.
In case of term overdraft, the business people can reduce their loan amount
and can be secured for their business.
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Table 1.3
Interest rates on Loan and Advances
LOAN AND ADVANCES
Loans and Advances
Overdraft & Working
Capital
Term Loan
Business
Others
Mfg. Companies
Others
Hire Purchase (Commercial)
Consortium Loan
Consumer Loan:Home Loan
Foreign Employment
Prime per
Others Per
annum
10%
11%
annum
13%
14%
11%
13%
12%
14%
11%
14%
As per consortium decision
10%
11%
Loan
Auto Loan
10%
Education Loan
12%
Travel Loan
12%
Medical Loan
11%
Social Loan
12%
Retirement Loan
11%
Loan Against NPR Fixed Deposit of HBBL
Loan against NPR Fixed Deposit of other Banks & Financial Institutions
Loan Against Govt. Guarantee
Loan against Financial
Bank
Financial Institution
Guarantee
Contract Loan
Real Estate Loan
Himchuli Wealth Plus Loan
Deprived Sector Loan
Wholesale Lending (Deprived)
Professional OD
Share Loan
Other Loan
13%
14%
13%
14%
14%
14%
14%
14%
Plus 2%
Plus 2%
(Min.9%)
9.50%
9.50%
10%
12%
10%
11%
12%
10%
14%
14%
14%
14%
9%
13%
12%-14%
14%
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Other Service
Bank Guarantee
Table 1.4
Commission Rates on Guarantee
TYPES OF GUARANTEE
Bid Bond
Performance Bond
Advance Payment Guarantee
Other Guarantees
Remittance Service
Share Application Collection Services
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Remittance Service
Remittance is transfer of money by foreign workers to their home country. It is the major
source of income for Nepal. It covers large percentage of its national income. Remittance
transfer can also promote access to financial and social inclusion. As remittance receiver
often have a higher prosperity to own a bank account, remittance promote access to financial
services for the sender and recipient, an essential aspect of leveraging remittance to promote
economic development. Almost all the banks are providing the remittance services. In fact,
the real truth behind the success of banking industry is only remittance. The number of
people going outside is increasing day by day in search of opportunity. Previously, people use
to send money to home by Hundi or with other's hand which was risky. There was chance of
lost of money and there were many case of lost as well. Now people are becoming aware
about remittance services provided by banking institutions and now they are using this
services which lesson the chance of lost and it increase the profit of the banking institution as
well. The function of this department is to remit and receive the fund. This department is one
of the income generating departments in the bank. MDBL is providing this service by
transferring fund via electronic media effectively and efficiently. It is servicing the customers
through the corporation of different money transferor such as IME and different others.
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CHAPTER IV
ACTIVITIES DONE AND PROBLEM SOLVE
4.1 Introduction of Operation Department
Operation department is the heart of every banking institution. Operation Department has
vital role for financial institution to carry on daily transactions effectively and efficiently.
Operation department is also known as "Cash Maintenance Department". The basic function
of Operation Department is to keep record of cash outflows and cash inflows of everyday.
This department is also often called as information desk as customers first contacts in this
department for their queries. Operation Department is lifeblood of the financial institution
and can also be considered as main door of organization through which a costumer enters in
and known everything about the entire organization. Therefore the image and status of the
bank depends upon the effective functioning of this department.
Upon arrival at MDBL, the intern was assigned to Operation Department by branch manager.
Operation department deals with various of activities such as dealing with customers,
answering their queries, marketing to various banks products, issuing application firm for
opening new accounts, responding to telephone calls, providing information about money
transfer (remittance services), providing balance certificate, issuing bank statement, accepting
cheque book, developing and issuing cheque book, receiving mail and delivering it to
concerned department and so on.
Various information about the bank goes from the department to customers. As the first
information about the bank goes from operation department the image and reputation of the
bank depends upon the effective functioning of this department. Customer should be handled
effectively as it is said "the first impression is the last impression". This department is mainly
responsible in assisting customers to explore the services offered providing customer's
services during and after the purchase of the services and providing customer's services
during and after the purchase of the services or products. Finally, the intern can conclude that
Operation department has vital role in building good relationship with ultimate customers.
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b. Partnership Firm:
Firm Registration
Income tax
Partnership deed
Identification of account operator (photographs of citizenship certificate)
Photograph of account operator (2 copies)
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Costumer should go through following procedure for opening a new account in MDBL:
b. Specimen Signature
After application on a prescribed form, next phase is specimen signature. Along with the
application on a prescribed form and proper introduction, the application must also give his
specimen signature to the bank in the prescribed form/card. Specimen signature is kept in
system of the bank scanning the specimen card including signature of the account operator.
The signature of the account holder on cheque issued by him/her is compared with his/her
specimen signature. If the signature differs the banker rejects the cheque.
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Account Opening
Customer
Function
Receive
Application form
CSD
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the account is company type) to head of the department. As per the remaining is refund to the
customer.
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Table 1.5
Total Deposited of MDBL in Different Months
Types of Deposit
Current Account
Normal Saving
Metro Sunaulo Bachat
Special Saving Account
Metro Khutruke Bachat
Metro Nari Bachat
Call Deposit
Fixed Deposit
Total Deposited Amount
June
Amount (Rs.)
3,50,780
2,56,532
2,88,990
3,80,976
9,876
2,90,897
4,53,712
4,65,000
24,96,763
July
Amount (Rs.)
3,46,545
3,08,688
2,67,645
3,92,840
10,880
3,03,060
4,60,480
4,80,500
25,70,638
August
Amount (Rs.)
3,40,770
3,30,200
2,62,380
4,05,765
11,767
3,18,830
4,63,105
5,05,500
26,38,317
In the above figure and table, we can see that in the month of June, the amount deposited in
Current A/C was high as compared to other months. The amount deposited in Current A/C is
lower than in other months but it is in increasing trend up to August and in June, the amount
deposited in Normal Saving A/C is lower than in other months but it is in increasing trend up
to August. The amount deposited and Fixed Deposit A/C is in increasing trend throughout the
month. Similarly, the amount deposited in Metro Sunaulo Bachat, Special A/C, Metro
Khutruke Bachat and Metro Nari Bachat is in increasing trend throughout the month.
Lastly, we can conclude that the amount deposited in Current A/C and Metro Sunaulo Bachat
seems quite unsatisfactory as because it is in decreasing trend. The amount deposited in Call
Deposit, Special Saving A/C, Fixed Deposit, Normal Saving, Metro Khutruke Bachat and
Metro Nari Bachat is gradually increasing throughout the months. The amount deposited in
Normal Saving is very high as compared with other deposits. Therefore, it seems much
satisfactory than other. Moreover, we can see that total deposited amount seems very
satisfactory because it is gradually increasing throughout the months.
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Table 1.6
Comparison of Total Deposit and Total Lending of MDBL
S.No.
1
2
Particulars
June
July
Total Deposit
24,96,763
25,70,638
Total Lending
25,60,886
25,20,578
Comparison of Total Deposit and Total Lending
August
26,38,317
25,89,784
2700000
2650000
2600000
2550000
2500000
2450000
2400000
June
July
August
Months
Figure 1.5
Comparison of Total Deposit and Total Lending of MDBL
The above table and figure shows the total deposit and total lending of MDBL during the
period of three months. By comparing total deposit and total lending we can see that the total
deposited amount is higher than lending amount in July and August but inverse in June.
However both total deposit and total lending are in increasing trend throughout the months.
The increasing trend of total deposit seems quite satisfactory that that of total lending. But,
MDBL still should heavily focus on the deposit to maintain the increasing trend by attracting
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more potential customers through providing attractive schemes in deposits and should make a
new competitive as well as strategic plan to maintain or increase in the increasing trend of
lending by introducing or adding other additional new scheme in the existing range of the
loan services.
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CHAPTER V
CONCLUSION AND LESSON LEARNED
5.1 Conclusion
This study is completely focused towards the mode of operation of customer service
department of MDBL. The study aims at diagnosing the problem being faced by the bank in
CSD and to identity different types of deposit offered by MDBL, procedure of opening new
account, changing existing account and closing the account and so on. This analysis will not
only help to know the process of operation functioning in HBBL but will also be a complete
diagnosis regarding other important related function performed by particular departments.
It was unforgettable experience of doing intern at Metro Development Bank Limited
(MDBL). It was a good opportunity to build up my exposure at MDBL. During the internship
period the real life job experience was achieved which is very important for any outgoing
students. During the intern period, the theoretical knowledge which was learned in the
college was implemented practically.
The working environment of MDBL is quite satisfactory. MDBL with slogan "Simply
Trusted Banking Partner" has been trying its best to add milestone in Nepalese Banking
sectors. It has adopted many innovative plan and scheme to serve its ultimate customers.
MDBL has today become a landmark which is able to generate healthy profit. It has good
performance and image building in the customers' mind though it is in growing phase. The
reason behind its great success is that all staffs in this bank are dedicated towards the
customers' satisfaction and all staffs are very sincere and loyal with their work.
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The banking software (Pumori Plus) used by the MDBL is outdated. So the latest
banking software such as "Finacle" developed by Infosys, India should be introduced
so that the services can be provided in efficient and effective manner to its customers.
The bank should conduct research and development program to study and analyze
about its product and another important thing is that bank should formalize
"Situational Analysis" that will help management team in understanding the bank's
current situation (Bank's Strength and Weaknesses) or accurate picture of the bank i.e.
how the bank is doing in comparison to its competitors.
Marketing promotional tools of MDBL is not much satisfactory. Because of lot of
people are unaware of number of Deposit Scheme i.e. Metro Sunaulo Bachat Youjana
and Call Deposit and Credit Facilities i.e. Service Retirement Loan. Contract Loan
and Metro Wealth Plus provided by bank. So frequent advertising in newspapers, FM
radio and visual advertisement in Television (T.V) etc. means should be considered to
attract more customers. HBBL sometimes should conduct market research with
various new marketing programs to get customers' view about its product and its
position in the current market.
In this way timely and effectively implementation of this corrective action would lead the
bank toward continue and future program.
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BIBLIOGRAPHY
Bhattarai, P. (2061). The Nepalese Financial System. Kathmandu: Asmita Book Publishers
and Distributors.
Bhole, L.M. (2003). Financial Institution and Market. New Delhi: Tata McGraw-Hill.
Cooper, D.R, & Schindler, S. (2003). Business Research Methods. (8th ed.). New Delhi: Tata
McGraw-Hill.
Kohn, M. (2003). Financial Institution and Market. New Delhi: Tata McGraw-Hill.
Lewis, B.R. (1987). Technology in Banking. International Journal of Bank Marketing.
Vol5.
Metro Development Bank Ltd. (2066/67). Annual Report. Pokhara: MDBL.
Metro Development Bank Ltd. (2067). Information Brochures. Pokhara: MDBL.
Metro Development Bank. [online]. Available: <http://www.metrodevbank.com.np> Sept.17
2012
Nepal Rastra Bank. Annual and Quarterly Publications. Kathmandu: NRB
Nepal Rastra Bank.[online]. Available: < http://www.nrb.org.np> Sept.17 2012
37
Name
Dr. Puspa Raj Sharma
Mr. Shiva Prasad Parajuli
Designation
Chairman
Director
Group
Reader (Finance) TU
Business man and social
worker
Business man and social
Director
4
5
6
7
Director
Director
Director
CEO
worker
Social Worker
Social Worker
Business man
Table
Staff Detail
Staff Details : MDBL-Newroad Pokhara
S.No. Name
1.
Surya Prasad Tiwari
2.
Mr. Dev Raj Poudel
3.
Mr. Sujan Parajuli
4.
Mr. Dirga Prasad Adhikari
5.
Mr. Kamal Poudel
6.
Miss Mukta Khati
7.
Mr. Kamal B.K
8.
Miss Sharadha Poudel
9.
Miss Kriti Rana Magar
10.
Miss Yog Maya Gurung
Designation
CEO
Deputy manager
Assistant manager
Assistant
Assistant
Assistant
Jr. Assistant
Jr. Assistant
Jr. Assistant
Jr. Assistant