An Internship Report

on

GENERAL BANKING PRACTICES

of

RASTRIYA BANIJYA BANK

By:

Suraksha Koirala

Kathmandu Model College

Exam Roll No. 6600- 2009

T.U. Registration No.7-2-446-49-2009

A Report Submitted to:

Office of the Dean

Faculty of Management

Tribhuvan University

In partial fulfillment of the requirements for the degree of

Bachelor in Business Administration (BBA)

Kamaladi, Kathmandu

August, 2013

ACKNOWLEDGEMENT

This internship report has been prepared as per the requirement of Bachelor degree in

Business Administration of Tribhuvan University in which students are required to

undergo internship training in an organization for a period of 8 weeks to familiarize the

students with the practical aspects of working in the organization.

I would like to express my gratitude to Mr. Sunil Maharjan, branch manager of

Shankhamul Branch, Ms. Puja Shrestha operation incharge, Ms. Manju Adhikari and

Ms. Ritu Shrestha of CSD for providing necessary data and information relating to bank.

Without their co-operation this piece of work would have never been completed.

I would like to thank Mr. Ajay Prasad Dhakal, director of BBA program, Kathmandu

Model College for providing great help to work in the organization and without whose

approval this report would have never been completed.

I am highly indebted to Mr. Madhusudan Gauttam of Kathmandu Model College, for his

cordial co-operation, supervision and inspiration without which this report would not

have come into existence. His intellectual guidance continually inspired me to complete

this work.

I sincerely acknowledge my thanks to all respected teachers, friends and all colleagues in

completing this project.

Suraksha Koirala

Kathmandu Model College

ABBREVIATIONS

RBB Rastriya Banijya Bank

B.S. Bikram Sambat

BOD Board of Director

ABBS Any Branch Banking Service

ATM Automated Teller Machine

BBA Bachelors in Business Administration

NRB Nepal Rastra Bank

CSD Customer Service Department

L/C Letter of Credit

A/C Account

T.U. Tribhuvan University

S.N. Serial Number

CEO Chief Executive Officer

% Percentage

DECLARATION

I hereby declare that the internship report entitled "The General Banking Practices of

Rastriya Banijya Bank," submitted to office of the dean, Faculty of Management,

Tribhuvan University, is my original work done in the form of partial fulfillment of the

requirement for the degree of Bachelor in business administration (BBA) under the

supervision and guidance of Mr. Kiran Thapa (KMC).

__________________

Suraksha Koirala

Exam Roll No: 6600 - 2009

TU Registration No: 7-2-446-49-2009

TABLE OF CONTENTS

Title page

Recommendation

Internship Completion Letter

Declaration

Acknowledgement

Abbreviations

CHAPTERS PAGE NO.

Chapter I: Introduction 1-5

1.1 Background 1

1.2 Objectives of the Study 2

1.3 Methodology 2

1.3.1 Organization Selection 2

1.3.2 Placement 3

1.3.3 Duration 3

1.3.4 Activities Done in the Organization 4

1.4 Limitations 5

Chapter II: Introduction to Banking Industry 6-9

2.1 Background of Banking Industry 6

2.2 Evolution of Banking Industry in Nepal 7

2.3 History of Banking Industry in Nepal 8

2.4 Commercial Banks 9

Chapter III: Introduction to Rastriya Banijya Bank 10-18

3.1 Brief Introduction

10

3.2 Vision/mission of RBB 11

3.3 Major Objectives/ Activities 11

3.4 Organizational Structure 12

3.5.1 Current Board of Directors of RBB

12

3.5.2 Management Teams 13

3.6 Branch Network of RBB 15

3.7 Achievements of RBB 15

3.8 Product and Services rendered by RBB

3.8.1 Deposits 15

3.8.2 Remittance 18

3.8.3 Trade Finance 19

3.8.4 Granting of Loans and Advances 19

3.8.5 New Services 20

Chapter IV: Analysis of Activities Done and Problems Solved 22-34

4.1.1 Activities performed in Customer Service Department 22

4.1.2 Activities Performed in Loan Department 26

4.1.3 Analysis of Research on Customer Satisfaction 28

4.1.4 Activities Performed in Other Department 33

4.2 Observed Gaps 33

Chapter V: Conclusion and Lesson Learn 35-37

28-30

5.1 Conclusion 35

5.2 Lesson Learnt 37

Bibliography

Appendices

Appendix-I List of Commercial Banks of Nepal

Appendix-II Questionnaire on Customer Satisfaction

LIST OF TABLES AND FIGURE

Table Title Page

Table 1.1 Worked department and duration 4

Table 3.1 List of BOD of RBB 13

Table 3.2 Regional Offices 13

Table 4.1 Service Tenure 29

Table 4.2 Satisfaction level of customers with

the overall services of RBB 30

Table 4.3 Customer perspective in overall service

quality of bank 30

Table 4.4 Evaluation of service quality 31

Figure Title Page

Fig 3.1 Organizational structure of RBB 14

ANNEX I

S.No

.

Name Operation

Date(AD)

Head Office

1. Nepal Bank Ltd. 1937.11.15 Kathmandu

2. RastriyaBanijya Bank Ltd 1966.01.23 Kathmandu

3. Agriculture Development Bank Ltd 1968.01.02 Kathmandu

4. Nabil Bank Ltd 1984.07.16 Kathmandu

5. Nepal Investment Bank Ltd 1986.02.27 Kathmandu

6. Standard Chartered Bank Nepal Ltd. 1987.01.30 Kathmandu

7. Himalayan Bank Ltd. 1993.01.18 Kathmandu

8. Nepal SBI Bank Ltd. 1993.07.07 Kathmandu

9. Nepal Bangladesh Bank Ltd. 1994.06.05 Kathmandu

10. Everest Bank Ltd. 1994.10.18 Kathmandu

11. Bank of Kathmandu 1995.03.12 Kathmandu

12. Nepal Credit and Commerce Bank

Ltd.

1996.10.14 Siddharthanagar,

Rupandehi

13. Lumbini Bank Ltd. 1989.07.17 Narayangadh, Chitawan

14. Machhapuchhre Bank Ltd. 2000.10.03 Pokhara,Kaski

15. Kumari Bank Ltd. 2001.04.03 Kathmandu

16. Laxmi Bank Ltd. 2002.04.03 Birgunj, Parsa

17. Siddhartha Bank Ltd. 2002.12.24 Kathmandu

18. Global IME Bank Ltd. 2007.01.02 Birgunj, Parsa

19. Citizens Bank International Ltd. 2007.06.21 Kathmandu

20. Prime Commercial Bank Ltd. 2007.09.24 Kathmandu

21. Sunrise Bank Ltd. 2007.10.12 Kathmandu

22. Grand Bank Nepal Limited 2008.05.25 Kamaladi, Kathmandu

23. NMB Bank Ltd. 2008.06.05 Babarmahal,Kathmandu

24. Kist Bank Ltd. 2009.05.07 Anamnagar,Kathmandu

25. Janata Bank Nepal Ltd. 2010.04.05 New

Baneshwor,Kathmandu

26. Mega Bank Nepal Ltd. 2010.07.23 Kantipath, Kathmandu

27. Commerz & Trust Bank Nepal Ltd. 2010.09.20 Kamaladi, Kathmandu

28. Civil Bank Ltd. 2010.11.26 Kamaladi, Kathmandu

29. Century Commercial Bank Ltd. 2011.03.10 Putalisadak, Kathmandu

30. Sanima Bank Ltd. 2012.07.27 Nagpokhari, Kathmandu

31. NIC Asia Bank Ltd. 2013.06.30 Kathmandu

Source: www.nrb.com.np

ANNEX II

Part A

Q1. Please indicate your degree of SATISFACTION with the overall services

provided by RBB ,by placing check mark X in the relevant box below.

Completely

dissatisfied

Very

Di

ssatisfied

Mildly

di

ssatisfied

Neither

dissatisfied

nor satisfied

Mildly

satisfied

Very

satisfied

Completely

satisfied

Part B

This section of the questionnaire contains 26 statements relating to the quality of service

delivery of your bank.Considering an excellent bank would be scored as “Absolutely

Agree”, please indicate your degree of agreement with the following 26 statements,

on your bank’s performance on the service feature described.

You should insert the number that reflects your rating of that service feature in the

Answer Box

Absolutely

Disagree

Strongly

Disagree

Slightly

Disagree

Neither

Disagree

nor Agree

Slightly

Agree

Strongly

Agree

Absolutely

Agree

1 2 3 4 5 6 7

1. The terms and conditions of your right to services are negotiated.

2. The service, physical facilities, equipment, staff, and communication materials

are accessible to you.

3. Information, advice and support are made available to you.

4. Staff provide prompt and timely service to you.

5. Your complaints are constructively handled.

6. Bank gives good interest rate on savings account.

7. A flexible service is provided to meet your individual needs.

8. Staff are polite and courteous with you.

9. Staff are willing to listen to your individual point of view.

10. Staff communicate in a language that you understand.

11. Complete and accurate information is provided to you in good time.

12. Staff reassure you in terms of your personal anxieties, concerns and problems.

13. Staff are sympathetic to your individual needs, while respecting your privacy

14. Staff respect your confidences and feelings.

15. Bank’s image and reputation is good.

16. Accurate and secure customer records are maintained.

17. Provides good credit facilities.

18. Services like ABBS has helped you many times.

19. The required level of service is delivered, with clearly stated terms and conditions.

20. The required number of staff have the ability to do the job.

21. The full range of services is delivered to meet your changing needs.

22. Staff deliver the appropriate service as promised.

23. The behaviour of staff makes you feel that you can trust them

24. Provides good ATM and E-banking service.

25. My bank provides safety for my fund

Part C

Q1. Please indicate your overall evaluation of the QUALITY of the services

provided by RBB, by placing a check mark X in the relevant box below

Extremely

Poor

Very

poor

Fairly

poor

Neither poor

nor good

Fairly

good

Very

good

Extremely

good

Q2. Please enter the number of year’s experience that you have of the services of

RBB

Number of years ____________

Q3. Please rate the importance of the following ten service quality dimensions, by

giving a mark out of 10 for each. Insert your mark in the answer box

provided.

1. Access to overall services

2. Responsiveness to your needs

3. Communication style and information provision

4. Humaneness in dealing with you

5. Security of your care

6. Enabling/Empowerment of your development

7. Competence in overall service(ATM, E-banking,etc)

8. Reliability of overall service delivery

9. Good compensation

10. Security of funds.

Q4. Additional Comment On How Your Bank Could Improve Its Service Delivery?

………………………………………………………………………………………………

…………………………………………………………………………………………….

Thank you

BIBLIOGRAPHY

Rastriya Banijya Bank. 2069. Annual Report. RBB: Kathmandu

Books:

Thapa, K. & Parajuli, B. (2010) Financial Institutions and Markets. Januka Publication

Pvt. Ltd: Kathmandu

Websites:

www.google.com.np

www.nrb.com.np

www.rbb.com .np