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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