Final Body Part

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CHAPTER ONE

INTRODUCTION

1.1 Background

1.1.1 Background of BBS Program

Bachelor in Business Administration (BBS) program is run by Tribhuwan

University from 2002 under the supervision of the !aculty of "anagement

(!#")$ %t aims to provide &uality education through &uality and professional

courses$ BBS is two years international standard program $ Thus' BBS program isa blend of theoretical and practical nowledge on the financial sector enabling the

students in understanding business environment and solving practical business

problems$ %t also aims to develop creative' socially responsible' nowledged

professionals who are able to carry out the responsibility of middle level

managerial positions in the rapidly growing business sector in epal as well as

abroad$

1.1.2 Importanc of !"#"t

Since theoretical nowledge is not sufficient in this competitive world$

Thus' in the BBS program' student is re&uired to wor in financial institution

where they can e*perience real life situations of woring in the organi+ation$ %t

also helps in understanding organi+ational environment and wor culture$ ,isiting

institutions enables in ac&uiring sills and techni&ues by e*periencing practical

wor situations directly applicable to develop career on financial sectors$ %t may

also create the opportunities for placements in the same host organi+ation or other

organi+ations$

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1.2 O$%ct"

The internship program under the BBS is mainly targeted at giving the practical

e*posure to the students who have ac&uired the plenty of theoretical nowledge in the

related field of the study$ The students are opportune to participate into the organi+ationsto learn and solve the real life problems and develop the managerial sills they have

learned$ -ence' the main focus of the study is to analy+e the students. capability to adopt

into the actual woring environment$ The ma/or ob/ectives of the study are as follows

To ac&uire the nowledge about the activities performed in the customer service

department' credit department' bills and remittance department and mareting$

To learn how to handle customer grievances regarding the products and services

of the ban

To learn how to develop the customer relation with the customers$

To learn how to open account' close account' issue che&ue' and issue AT" card$

To understand about deposit mareting$

To now about various products and services provided by ban$

To understand the woring procedure of the credit department$

1.' (t)odo*og+This study is mostly descriptive in nature where the facts and findings are

prescribed in a systematic manner$ The data are collected from the personal interview

with the staff of ban$ The information re&uired for the preparation of report has been

collected from observation of the activities that are performed in the ban and the

personal interview and consultation with the staffs involved in different departments of

the ban$ The secondary data are used in the report$ They are websites' brochures' annual

report' and boos$

1.'.1 Organ",at"on S*ct"on

#rgani+ation selection is a crucial part of internship program$ %t is the place where

one can gain nowledge of real world scenario$ !or selecting this organi+ation' internee

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had dropped curriculum vitae' citi+enship and recommendation letter from college in the

various Bans$ %n this course' -imalayan Ban 1imited' -etauda branch has accepted my

Application for the internship and given me the opportunity to get ac&uainted with the

organi+ation and its financial practices$ % was lucy to get opportunity to wor as intern at

-B1' -etauda branch for which % cannot stay without e*pressing my heartfelt gratitude

to "r$ Sudhir hada' branch "anager of the ban$ This ban has developed very good

intern culture which helped me to learn and gather e*perience about real baning

environment that would be very helpful for uplifting my career$ !urther' % would lie to

than the college administration in giving their full support in the organi+ation selection$

1.'.2 P*acmnt of !"#"t

%nternee was placed in -B1' -etauda branch under the supervision of the Branch

"anager (B") Bi/aya "an aarmi$ 3uring the internship period' the internee was

placed in customer service department' Bills and 4emittance 3epartment' Trade !inance'

5redit "anagement and Administration 3epartment and 5ustomer 4elation 3epartment$

6very staff of -etauda Branch' -B1 was supportive and friendly$ The supportive and

friendly environment in the organi+ation helped the intern to complete the period of

visiting through proper guidance of the staffs of various departments$ Through their

proper guidance' the intern was able to learn more about the organi+ation culture' worenvironment and wor procedures$

Ta$*1.1 P*acmnt dur"ng &"#"t

Dpartmnt#- k# 1 2 ' / 0 3

Bills and 4emittance

5ustomer Service

1etter of 5redit

5ustomer 4elation

5redit management and

administration

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1.'.' Durat"on of &"#"t

The internship duration re&uirement for the BBS 7rogram as per set by the

Tribhuwan University ' which is an great opportunity for the students involved in the

program to learn and develop interpersonal' managerial' and behavioral sills in the real

organi+ational settings$ %nternee got an opportunity to wor in Bills and 4emittance'

5ustomer Service' 1etter of 5redit' 5ustomer 4elation and 5redit management and

administration from 82$02$2089 to 2:$02$2089 which really helped me to develop

managerial and interpersonal sills and at the same time boost up my confidence level$

Timing of the visiting was from 0:9;


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Act"&"t"# don "n CSD ar7

3ealing with regular and new customers of the ban$

Advise customers about -B1>s products and services and respond their

&ueries$ 7roviding different inds of forms to customer such as Account opening form'

Account closing form' 3ebit card application form' %nternet baning form'

S"S baning form' etc$

5ollecting necessary documents and checing forms of the customers re&uired

for account opening procedures$

!iling application forms and writing different application on behalf of

customers on the re&uest of customers$

eeping record of the account opened' account closed' transfer of the account'

customer taing additional facilities such as %nternet baning' S"S baning'

etc$

7roviding AT" cards to the cardholders$

7roviding the balance statement and balance certificate to the demanding

customers after verifying the account holder signature$

4ecording the AT" card holder information in the register after arrival of

AT" card and pin number and providing them to the respective customer after

checing the form filled to get card and verifying the signature$

7reparation of che&ue boos' recording the information and providing it to the

respective customer after verifying the signature$

"aing entry of void che&ues' loss che&ues' issuance of che&ues' etc$

7hotocopies of citi+enship cards' passports' license and other documents of

the customer re&uired for recording of customer service department$

B.B"**# and Rm"ttanc dpartmnt

4emittance simply refers to the transfer of funds from one place to another i$e$

from one country to another or within the country through various means of fund

transfer$

Bills and remittance department of -B1 perform various fund transfer operations such

as %3 payment' domestic money transfer' clearing' fi*ed deposits and fund transfer'

international che&ue collection' credit advice for advance payment' etc$

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ID Pa+mnt Sct"on

%3 payment is the process of providing cash to the customer that is received through

remittance after verification of receiver$ %t is a transfer of money by a foreign

worer to his or her family or maing domestic payment$ -B1 has facility for both

international payment (!or e$g$ -imal 4emit of -B1) and domestic payment

(3omestic "oney Transfer (3"T) facility by -B1)$

T) act"&"t"# don "n ID pa+mnt ar7

6ntry of reference no$ on web based remit system to get remittance

information under various e*change houses such as -imal 4emit' ?estern

Union "oney Transfer' "oney @ram' 5hoice "oney Transfer' etc$

,erification of the information of the remitter and beneficiary$

7hotocopies of customer %d

4ecording of remittance information

!orwarding the verified information for cash payment$

5ontacting authori+ed personnel if problem arise$

B"**# Co**ct"on# Sct"on

%t does the all tass related to international bans che&ue' traveler>s che&ue (T5)

i$e$ maing T5 and bills purchase and collection' entry on ostro and ,ostro

account' sending to international ban about payment against T5' etc$

T) act"&"t"# don "n $"**# co**ct"on# ar7

"anual entry of Traveler>s 5he&ue'%nternational che&ues collection and

purchase in registers$

#bservation of procedures for forwarding Traveler>s 5he&ue$

Stamping Traveler>s 5he&ue that are purchase and collected which are to

be presented to Americans Association for Traveler>s 5he&ue$

Ad&anc Pa+mnt of Crd"t Ad&"c 5APC6 Sct"on

A75 does the transaction related to transferring of funds from one account to

another account but only receivable of information of credited account that is

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done through S?%!T mechanism$ %t is basically used by customer involved in

e*porting goods to receiver advance payment for maing supply$

T) act"&"t"# don "n APC ar7

%nforming customer about account credited$

7rint account movement advice and account payment advice$

5hecing statement of customer related to fund transfer$

!iling of the ban copy of A75$

#bservation of account to account transfer entries by the employee$

8"9d dpo#"t and 8und tran#fr Sct"on

". 8"9d dpo#"t

!i*ed deposit is the process of depositing money that pays higher interest

than a savings account but imposes conditions on the amount' fre&uency'

andor period of withdrawals$ %t is also called time deposits$ Transaction

related to fi*ed deposit account of -B1 were carried out by remittance

department$

"". 8und Tran#fr

%t is transfer of fund from one place to another through demand draft or

tele* transfer$ 3emand draftis a written payment order from

one party (the drawer) to another (the drawee to pay a stated sum to a third

party (the payee) by issuing the che&ue$ Tele* transfer is the mechanism in

which ban transfer the fund to another bans account in the re&uest of

customer$ !or e$g$ !ees payment of student reading abroad is done by tele*$

T) act"&"t"# don "nf"9d dpo#"t and fund tran#fr ar7

7roviding different inds of forms to customer such as demand

draft forms' tele* transfer forms' fi*ed deposits forms' etc$

!iling application forms and writing different application on behalfof customers on the re&uest of customers$

4ecording of fi*ed deposits account' demand draft transfer' and

tele* transfer' etc$ in the registers and filing the documents$

?riting in the che&ues using 5he&ue ?riter$

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#bservation of record eeping in the -B1 software system (T29

software) by the employees$

C*ar"ng Sct"on

5learing section is one of the counters under the bills and remittance

department where both the inward and the outward che&ues are handled$ An

individual might receive payments via che&ues of various bans but it will be

time consuming for him to go in all the bans$ 4B provides the common

platform for each and every ban to deal with the che&ues of different bans$

T) act"&"t"# don "n c*ar"ng #ct"on ar7

4eceiving the che&ue for clearing and endorsing the che&ue "aing entry in the @lobus system for clearing

%nforming the client in case of che&ue return

4eturning the re/ected che&ue to the respective clients and maintain proper

records

-andling &ueries of the customer

4eturning the re/ected che&ue to the respective clients and maintain proper

records

-andling &ueries of the customer regarding their che&ues sent for clearing$

@oing 4B for observation of clearing procedures carried out by bans$

C.4ttr of crd"t dpartmnt

1etter of credit is defined as an undertaing issued by a ban in favor of a

beneficiary by which the ban substitutes its own creditworthiness for that of the

applicant by promising to honor (pay) if the documents specified in the letter of credit are

timely presented$

Ban @uarantee is the non fund based fee generating service which provides the

assurance that if the debtor fails to settle a debt' the ban will cover it and enables the

customer (debtor) to ac&uire goods' buy e&uipment' or draw down loans' and thereby

e*pands business activity$

Act"&"t"# prformd "n 4C dpartmnt ar7

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The study of the 15 and Ban @uarantee manual of -B1$

5hronological filing of the trade related documents$

#bservation of preparation procedures of 15 documents$

7reparation of Approval Sheet for import 15 and @uarantee after the re&uest

by customer for issuance of 15 and guarantee$ #bservation of procedures of import and e*port 15 issuance' guarantee

issuance' etc$

!orwarding approval sheet to the 5ustomer relation department$

7reparation of Account "ovement Advice

7reparation of B$ B$ i$ forms in the demand of customers

!a*ing the necessary documents to different -B1 branches

7hotocopies of necessary documents re&uired in trade operation center

Typing S?%!T messages under the supervision of staffs

5ancellation and amendment of letter of credit

3ocument checlist

D.Cu#tomr R*at"on Dpartmnt 5CRD6

5ustomer relation department is the division of credit department of -B1

where customer initially goes for receiving loan services$ As loan are the investment

for the ban they should be secured' thus for forecasting and analy+ing customers

trends and behavior and maintain highest levels of protection good &uality

relationship management is preferred' so it is named as customer relation

department$

Act"&"t"# prformd "n CRD dpartmnt ar7

The study of 5redit 7olicy @uidelines (57@) of -B1$

3ealing with the customer about nature of loan facilities they sought$

7reparation of financials$

#bservation of preparation procedures of detailed 5redit Analysis 7acage

(5A7)$

#bservation of 5%51 (5redit %nformation 5entre 1td$) report of the clients$ 3etailed valuations of the property$

5alculation of maret value of the shares for renewal of loan against shares$

7reparation of reminder letter for renewal$

#bservation of financials of latest fiscal year of different corporate clients as it

was end of the fiscal year during internship period$

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7articipation in site visits for valuation of collateral and renewal of the credit

facilities$

5onduct five pillars analysis of credit facility i$e$ industry environment'

financial condition' management &uality' technical strength' security

reali+ation$

E.Crd"t Adm"n"#trat"on and (anagmnt Dpartmnt 5C(AD65redit administration and management department is another division of

credit department of -B1 where customers are facilitated with loan facilities after

analysis is done by customer relation department$ 543 forward the documents to

5"A3 for further implementation of the credit granting process$ 5"A3 tae the

charge of lending to the customer after fulfilling the tas of documentation and

mae estimation of interest rates' reconciliation' etc$

Act"&"t"# prformd "n C(AD ar7

7reparation of offer letter to be issued to the customer

Scrutini+e and verify all loan documentation

7reparation of account movement advice

Study of different cases' stoc reports' collateral details' property valuation'

etc$ related to credit facilities

7reparation of legal documents

Transfer the credit files to the legal department

3oing photocopies re&uires for documentation process

#bservation of implementation of loan facilities to the customer

#bservation of renewal of the loan facilities of the customer

#bservation of loan settlement by the customer

4elease of the documents of the customer after loan settlement under

supervision of staffs "aintain >safe in> and >safe registers

7roper documentation of the files of 5"A3

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1./ 4"m"tat"on#

%t is obvious that there arise also some ind of limitation in everything with some

productive and beneficial outcomes and as limitations are the part of progressive system'

here are some limitations of the study

The time period that has been provided was not sufficient to learn all the activities

held in the ban

The bans staffs were occupied by their wor so they had a little time to interact

with intern$

3ue to the safety and privacy standards of the ban' the intern have presented

only whatever can be presented$

%t does not give detail view of overall functioning of the ban since most of the

information is collected through personal e*perience and observation$

Since' internee /oined the credit department at Ashad end which is the end of a

fiscal year in our country internee could not gather the information regarding the

system more specifically' due to their busy schedule$ This report cannot be generali+ed to entire baning industry since data is only

related to -B1' -etauda branch$

CHAPTER TO

INTRODUCTION TO THE BAN:IN; INDUSTR

Documents

Final Body Part