Internship Report

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CHAPTER I
INTRODUCTION
1.1 Background
Banking sector plays an important role in the financial life of a business, and the
importance of banks can be seen from the fact that they are considered as to be the life
blood of modern economy. Although no wealth is created by Bank, but their essential
activities facilitates the process of production, exchange and distribution of wealth. In this
way they become the effective partners in the process of economic development and
growth. The main purpose of the program is to expose the students to the real world
situation. This report is done as a partial requirement of the internship program in the
field of banking business of Kumari Bank Ltd (KBL). Practical knowledge is
fundamental for the application of theoretical intelligence. The goal of this analysis is to
expose the student in the organizational work situation and also to provide an opportunity
for applying classroom learning in practice.
Major basic function of every bank is accepting deposits from public and lending to
needy sector such as manufacturing, trading, and agriculture & implement social schemes
of the Govt. customer service. For this purpose, Banks open many branches to widen
their network to ensure delivery of quality, best customer service to suits the needs of its
valued customers so that their reach is wider and develop their business operations.
Banks have varied products to suit to different segments of the society i.e. senior citizens,
women, child, and student etc. Banks are service based businesses, so most of their
activities involve elements of service. While they do sell banking and financial products,
there is often little tangible product variation among their offerings.
Customer service desk is important because it deals directly with service issues i.e.
grievance handling, but several other common banking jobs involve service. Clearing is
the part of CSD where cheques are clearing through clearing house of Nepal Rastra Bank
(NRB). Modernizing the Banking sector in Nepal is an essential strategic objective that
NRB seeks to realize by implementing an advanced cheque clearing solution that

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manages the daily cheque clearing cycle electronically. Clearing provides faster access to
funds for both individuals and corporations, reduce payments overhead costs, minimize
associated risks, and promote efficiency in terms of speed and security of payments.
Remittances give countries the ability to fund development their own way, so the
developing country like Nepal it is important. In Remittance department, The work that
Internee were assigning in this department that of paying out the customer’s money that
may be from local or international and also to send the local remit from Dhangadhi to
other places.
So, the Internee was assigned to work in Customer Service, Clearing and Remittance
Department. This report not includes the overall functioning of the bank since most of the
information is collected through personal experience and observations. It is obvious that
there arise some kind of limitation in everything with some productive and beneficial
outcomes and as limitations is the part of progressive system. The major constraint was
the 'Time constraint'. So learning and knowing all the banking procedure within the
internship period i.e., two month is almost impossible. The banks staffs were preoccupied
with their work so they had a little time to interact with internee. I was an intern who
prevented me from learning more about the actual transactions and entries in the system
so here is limited access to and the use of the Banking Software. This report cannot be
generalized to entire banking industry since data is only visualizes the activities done at
CSD including Clearing and Remittance Department of the Dhangadhi Branch.
1.2 Objectives of the Study
The internship program is undertaken for the partial fulfillment of the requirements for
the degree of Bachelors in Business Management. The primary objective of this
internship is to gain valuable insights into the business sector, more specifically the
banking industry in addition to this another major purpose is also to relate the theoretical
knowledge with the practical experience and to enable us to be more prolific in acquiring
the real life techniques of achieving results through both individual effort and team

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building along with the knowledge gained from the academic environment. The other
specific objectives of the study are:
1. To study the banking procedure carried out in branch.
2. To identify the various activities done under the “Customer Service Department”.
3. To know about various financial products and services provided by the bank.
4. To examine the handle remittance and clearing provided by bank.
1.3 Methodology
This study for making this report is mostly descriptive in nature where the facts and
findings are prescribed in a systematic manner. The information required for the
preparation of report has been collected from observation of the activities that are
performed in the bank and the personal interview and consultation with the staffs
involved in different departments of the bank. The secondary data are used in the report
are obtained from websites, brochures, annual report, and books.
1.3.1 Organization Selection
Selection of organization for internship program is always a crucial task. Being a student
who has specialized in banking courses in the Fifth, Sixth, Seventh and Eighth semester
of our BBM, I had to select a banking financial institution which could help me broaden
my spectrum of knowledge about the banking, business and financial sector. So I decided
to choose Kumari Bank Limited for doing my internship. I thought that it would give me
an opportunity to realize my theoretical knowledge into practical field.
In order to approach the bank, the requirements were the recommendation letter from the
college and curriculum vitae. After screening my CV by the authority of Branch Office
(Branch Head), I was duly selected as an intern for its Dhangadhi branch. So I started
working there from 2nd May 2017 to 2nd July 2017.

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1.3.2 Placement
During the internship, Internee was placed in the Customer Service Department at the
Dhangadhi Branch. In addition the Internee had got an opportunity to carry out activities
in Remittance and Clearing. Internee was required to handle all the activities of the
department under the guidance and supervision of Mrs. Sunita Bhatta, the Operation In
charge (OI) at the branch. In addition to her, the other staffs were equally cooperative and
helped to learn the activities of the department.
1.3.3 Duration of Internship
According to the Faculty of Management (TU) we are required to do the internship for a
standard of duration of two month i.e. eight weeks. So Internee also worked at Kumari
Bank for 8 weeks. Internee worked the entire period in the Customer Service Department
and Remittance. This internship program has been very fruitful for the internee to get real
life experiences of the banking activities of the organization.
1.3.4 Activities Performed in the Organization
During the internship I got the opportunity to perform different activities of the
department. The first 2-3 days I spent gaining information from the staffs of Dhangadhi
Branch, and then after knowing that, I spent in the information counter where I had serve
the customers with various information. I also had to help them filling up their account
opening, account closing and many other forms like demand draft, speed remit form,
deposit voucher of customer, cheque clearing etc.

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CHAPTER II
INTRODUCTION TO BANKING INDUSTRY
2.1 Introduction
Banking sector plays an important role in the economic development of the country. The
word ‘Bank’ has been derived from the Italian word ‘Banco’ which means a place for
keeping, lending and exchanging money. The bank is a financial institution, which deals
with money. It accepts deposits from individuals and organizations and grants loans to
them. It allows interest on the deposits made and charges interest on the loans granted.
Since, it accepts deposits and grants loans, it is regarded as the trader of money. Further,
it creates credit and supports for the formation of capital.
A bank is a financial institution licensed by a government, which deal with money and
credit. Its primary activities include borrowing and lending money. Many other financial
activities are key players in financial markets and offer financial services such as
investment funds. Banking sector is mirror of an economy as it is linked with almost all
economic sectors. Its linkage with all sectors makes it a proxy for what is happening in
the economy as a whole.
To know the precise meaning of bank, some definition given by prominent writers,
scholars, and acts of different nations are as given:
According to Kent, “A Bank is an organization whose principal operations are concerned
with the accumulation of the temporarily idle money of general public for the purpose of
advancing to other for expenditures."
Nepal Commercial Bank Act 2031, defines, “A commercial bank refers to such type of
bank which deals in money exchange, accepting deposit, advancing loans and other
commercial transaction except some specific function done by other specified banks such
as co-operative, agricultural bank and industrial bank.”

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In the word of Oxford English Dictionary "A Bank is an establishment for the custody of
money received from or on behalf of its customer essential duty is to pay their draft on is
profit areas from its use of the money left unemployed by them."
From the above definitions, it is clear that the bank is a financial institution, which
accepts deposits from the public in different amounts and grants loans to individual and
corporations against their securities. In these days, it performs a wide variety of
functions. It does lot more than deposit and credit, remitting of money, letter of credit,
guarantee etc. for the service and benefit of individuals, corporations, and the general
public. It is an agent of its clients, which remits money, provides services like LC,
guarantee etc. and collects incomes, commissions and pays expenses on the behalf of
them.
2.2 Origin of Bank
The word “bank” is derived from the Italian word "banco", Latin word "bancus" and the
French word "banquet” which means bench on which the bankers would keep money and
its records. In most simple form, banking is an 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.
The bank of Venice, established in 1157 A.D is supposed to be the ancient bank.
Originally, it was not a bank in the real sense being simply an office for the transfer of
public debt. Subsequently, Bank of Barcelona (1401) and Bank of Geneva (1407) were
established. The ‘Bank of England’, first English Bank was established in 1694 A.D.
Banking institutions have then changed in character and contents to the further extent.
They have developed from a few simple operations involving satisfaction of a few
individual’s wants to the complicated mechanism of modern banking involving the
satisfaction of the whole community by serving speedy application of capital, slowly
seeking employment and thus providing the very lifeblood of commerce. The history of
banking is closely related to the history of money. As a society become more civilized,

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the need for more efficient methods for barter was developed organically. Most origins of
money can be traced back to the building of large structures such as temples, or large
undertaking by leaders, such as wars.
The first bank was probably the religious temples of the ancient world and were probably
established sometime during the 3rd millennium B.C. Banks probably predated the
invention of money. Ancient Greece holds further evidence of banking. During Late
Antiquity and Middle ages, medieval trade fairs, such as the one in Hamburg, contributed
to the growth of banking in a curious way: money changers issued documents redeemable
at other fairs, in exchange for hard currency. In 1440, Gutenberg invents the modern
printing press although Europe already knew of the use of paper money in China.
2.3 History of Banking in Nepal
In the country, the development of banking is relatively recent. The record of banking
system in Nepal gives detail account of mixture of slow and steady evolution in the
financial and global economy of Nepalese life. The history of banking in Nepal can be
traced back to 1877 A.D. when Tejarath Adda was established by the government to
provide credit facilities to general public. These unorganized institutions although quite
underdeveloped could still mobilize funds from wide range of different sources. Although
the Tejarath Adda was established, it was not able to facilitate the growing trades with
Tibet and India. Thus a need for the establishment of a modern bank had become
essential to promote the trade of the nation. In the year 1923 “Treaty of peace and
Friendship” were concluded between the Government of Britain and Government of
Nepal. As per the treaty, Nepal could carry on import trade free of duty via India. In other
words, it meant that Nepal was going to diversify its foreign trade and for that the country
needed a modern bank. But it wasn’t till 1936 A.D. that the Udyog Parishad (Industrial
Development Board) was set up with the following objectives: To promote and protect
the trade, commerce, industries and manufacturers of Nepal, and to consider and discuss
questions connected with or affecting such trade, commerce, industries and
manufacturers, to register and incorporate joint stock companies in conformity with

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Nepal Companies Act and also to examine and supervise their workings and to assist and
advise Government of Nepal in economic and financial matters.
Thus, the “Udyog Parishad” helped in opening new avenues for the advent of banking,
industry and commerce in Nepal and thus helped to enhance the economic status of the
country. A year after its formation, the Udyog Parishad formulated the company act and
the “Nepal Bank Act” in 1937 A.D. which established the Nepal Bank Ltd. with the
technical cooperation of the Imperial Bank of India, as the first commercial bank of
Nepal. Before 1956 “Sadar Mulukikhana Adda” (local treasury of the government) issued
currency notes and the foreign exchange reserves of Nepal were maintained by Reserve
Bank of India. During that period the Indian currency along with Nepalese currency was
circulating in the economy. Thus to manage the circulation of national currency and to
maintain exchange rate stability, there was an urgent need for the establishment of a
Central Bank. In 1956, The Nepal Rastriya Bank Act was formulated and Nepal Rastra
Bank was established as a central bank on April 26, 1956. It took over the functions of
Mulukikhana Adda “Government Treasury” and contributed in the growth of financial
sector.
Rastriya Banijya Bank (National Commercial Bank), a state-owned commercial bank,
was established in 1966. In the same year, The Land Reform Savings Corporation was
established to deal with finances related to land reforms. After declaring free economy
and banks for joint venture in Nepal privatization policy, The Government of Nepal
encouraged the foreign bank. The first joint venture bank was established as Nepal Arab
Bank ltd. in 1984 under the Commercial Bank Act 1974 with a paid up capital of Rs. 130
million. It was started with the allocation of 50 percent share of Emirates Bank ltd,
Dubai, and twenty percent share of Nepalese financial institution and 30 percent share of
general public. Nowadays the bank is known as Nabil Bank Ltd. Later on there are many
banks and financial companies in the country. To operate all commercial banks uniformly
under single act, "Commercial Bank Act 1975 A.D" was enacted. There is all over 28
commercial bank working in Nepal .Nepalese banking system has not a wide geographic
reach and institutional diversification.

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2.4 Classification of Financial Sector in Nepal
There are altogether 28 commercial banks, 57 development banks, 36 financial
companies and 48 micro-credit development banks in Nepal which are classified as A, B,
C and D class respectively. As of Mid January, 2017 (Licensed by NRB) financial
institutions are listed as follows:
Table2.4.1: Classification of Financial sectorin Nepal
Source: www.nrb.org.np
2.5 Meaning of Commercial Bank
Commercial banks are the major component in the financial system. Commercial banks
come into existence mainly with the objectives of collecting of idle funds, mobilizing
them into productive sector and causing the overall economic development. The
commercial bank is the oldest form of bank. In general, bank that performs all kinds of
banking business and generally finances trade and commerce is called commercial bank.
It occupies quite an important place in the framework of every economy.
According to Nepal Commercial Act 2031 B.S. (1974 AD) ,”A commercial Bank refers
to such types of bank which deals in money exchange, accepting deposits, advancing
loans, and other commercial transitioning except some special functions done by some
specified bank such as Co-operative Bank, Agricultural Bank and Industrial Banks.”
Nepal bank limited is the first commercial bank of Nepal which was established in 1994
B.S. It is a semi-government bank. The second commercial bank of Nepal is Rastriya
banijya Bank. It was established in 2002 B.S. After reinstatement of multiparty
democracy in the country, several joint venture banks were established, such as Standard
S.N. Financial Institution Class Numbers
1 Commercial Banks A 28
2 Development Banks B 57
3 Financial Companies C 36
4 Micro finance and financial institution D 48

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Chartered bank, Nabil Bank, Nepal Investment Bank, Himalayan Bank, Everest Bank,
Nepal State Bank of India, Nepal Industrial and Commercial Bank, Kumari Bank,
Machhapuchhre Bank, Bank of Kathmandu and so on. With the increasing in a number of
commercial banks competition among them have also become more complex.
The main function of the commercial bank simply is ‘to borrow to lend’. Besides, there
are other functions which have been developed according to need of the society as
accepting deposits, providing loans, investments, discounting bills of exchange, transfer
of money, capital formation and miscellaneous functions. There are altogether 28
commercial banks in Nepal.
The commercial banks in Nepal can be listed as follows:
Table 2.5.1: List of commercial bank
As of Mid January, 2017 (Licensed by NRB)
S.N. Name
Operation
Date (A.D.)
Head Office
Paid up
Capital
1 Nepal Bank Ltd. 1937/11/15 Dharmapath,Kathmandu 649.95
2 Rastriya Banijya Bank Ltd. 1966/01/23 Singhadurbarplaza,Kathmandu 858.90
3
Agriculture Development Bank
Ltd.
1968/01/21 Ramshahpath, Kathmandu 1037.44
4 Nabil Bank Ltd. 1984/07/12 Beena Marg, Kathmandu 618.35
5 Nepal Investment Bank Ltd. 1986/03/09 Durbarmarg, Kathmandu 870.66
6
Standard Chartered Bank Nepal
Ltd.
1987/02/28 Nayabaneshwor, Kathmandu 374.99
7 Himalayan Bank Ltd. 1993/01/18 Kamaladi, Kathmandu 449.91
8 Nepal SBI Bank Ltd. 1993/07/07 Kesharmahal, Kathmandu 388.37
9 Nepal Bangaladesh Bank Ltd. 1994/06/06 Kamaladi, Kathmandu 401.18

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10 Everest Bank Ltd. 1994/10/18 Lazimpat , Kathmandu 274.26
11 Kumari Bank Ltd. 2001/04/03 Durbarmarg, Kathmandu 269.92
12 Laxmi Bank Ltd. 2002/04/03 Hattisar, Kathmandu 303.92
13 Citizens Bank International Ltd. 2007/04/20 Kamaladi, Kathmandu 553.74
14 Prime Commercial Bank Ltd. 2007/09/24 Newroad, Kathmandu 489.19
15 Sunrise Bank Ltd. 2007/10/12 Gairidhara, Kathmandu 530.14
16 Janata Bank Nepal Ltd. 2010/04/05 Naya Baneshwor, Kathmandu 206.00
17 Mega Bank Nepal Ltd. 2010/07/23 Kantipath, Kathmandu 401.20
18 Century Commercial Bank Ltd. 2011/03/10 Putalisadak , Kathmandu 368.90
19 Sanima Bank Ltd. 2012/02/15 Nagpokhari, Kathmandu 530.59
20 Machhapuchhre Bank Ltd. 2012/7/9* New Road, Pokhara, Kaski 386.45
21 NIC Asia Bank Ltd. 2013/6/30* Thapathali, Kathmandu 581.96
22 Global IME Bank Ltd. 2014/4/9* Panipokhari, Kathmandu 616.43
23 NMB Bank Ltd. 2015/10/18* Babarmahal, Kathmandu 543.01
24 Prabhu Bank Ltd. 2016/2/12* Babarmahal, Kathmandu 588.14
25 Siddhartha Bank Ltd. 2016/7/21* Hattisar, Kathmandu 302.21
26
Bank of Kathmandu Lumbini
Ltd.
2016/7/14* Kamaladi, Kathmandu 457.69
27 Civil Bank Ltd. 2016/10/17* Kamaladi, Kathmandu 458.38
28
Nepal Credit and Commerce
Bank Ltd.
2017/01/01* Siddharthanagar, Rupandehi 467.91
* Joint operation after merger. Source: www.nrb.org.np

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2.6 Present Scenario of Commercial Bank in Nepal
Banks are gradually starting to realize that, in today’s competitive banking environment,
exemplary customer service is one of the distinguishing characteristics that banks can
exploit to establish a competitive edge. Since most banks offer comparable products and
services, they should continually search for a competitive advantage that will attract new
customers and help retain existing ones. Banks are, therefore, looking to develop
innovative products and services to maintain superior customer services levels while at
the same time remaining profitable. With the number of market players in the rise, the
competition has been obviously growing in the banking industry. The most obvious effect
of the rising competition can be seen in the interest rates offered by the banks.
Banks are gradually shifting towards the IT-based solution to enhance service delivery in
order to address customer concerns. Most banks are embracing E-banking and provision
of ATMs to reduce long queue in the banking hall. In addition, some banks have
launched mobile phone banking services which facilities several account query tools,
including account balances, thereby minimizing the need for customers to visit banks.
This drive towards the IT-based solution will continue to gather momentum in the future
as banks will find it very difficult to survive in the ever growing competition without
some form of competitive advantages.
Another trend observed nowadays is large corporate houses explore the shift towards
multiple banking relationships. In order to remain competitive, banks are seen to be
increasingly encouraging business houses to transact with them. This has lead to a
creation of the large volume of unutilized limits with the bank and in order to get a large
piece of the pie banks are increasingly accepting risks, which they otherwise would not
have taken. The unyielding competition has also led the banks to accept collaterals that
are more risky and unsecured. The volume of loan against the hypothecation of stock,
receivable and other assets are on the rise. In the absence of hypothecation in the current
assets, the risk of over financing is eminent and banks are exposed to a higher degree of
risk.

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CHAPTER III
INTRODUCTION OF KUMARI BANK LIMITED
3.1 Introduction to Kumari Bank Limited
Kumari Bank Limited, came into existence as the fifteenth commercial bank of Nepal by
starting its banking operations from Chaitra 21, 2057 B.S (April 03, 2001) with an
objective of providing competitive and modern banking services in the Nepalese financial
market. The bank has paid up capital of Rs. 2,699,166,532 of which 51 percent is
contributed from promoters and remaining from public before acquiring four financial
institution Kasthamandap Development Bank Limited, Mahakali Bikas Bank Limited,
Kankrebihar Bikas Bank Limited, and Paschimanchal Finance Company Ltd. Jointly
operation was started in 16 Ashar, 2074.
Kumari Bank Ltd has been providing wide range of modern banking services through 76
points of representations located in various urban and semi urban part of the country, 74
branches outside and inside the valley; and two extension counters. The bank is pioneer
in providing some of the latest / lucrative banking services like E-Banking and SMS
Banking services in Nepal. The bank always focus on building sound technology driven
internal system to cater the changing needs of the customers that enhance high comfort
and value. The adoption of modern Globus Software, developed by Temenos NV,
Switzerland and arrangement of centralized data base system enables customer to make
highly secured transactions in any branch regardless of having account with particular
branch. Similarly the bank has been providing 365 days banking facilities, extended
banking hours till 7 PM in the evening, Utility Bill Payment Services, Inward and
Outward Remittance services, Online remit services and various other banking services.
Visa Electron Debit Card, which is accessible in entire VISA linked ATMs (including 57
own ATMs) and POS (Point of Sale) terminals both in Nepal and India, has also added
convenience to the customers. The bank has been able to get recognition as an innovative
and fast growing institution striving to enhance customer value and satisfaction by

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backing transparent business practice, professional management, corporate governance
and total quality management as the organizational mission.
The key focus of the bank is always center on serving unfulfilled needs of all classes of
customers located in various parts of the country by offering modern and competitive
banking products and services in their door step. The bank always prioritizes the
priorities of the valued customers.
3.1.1 Visions
Kumari Bank vision is to be the preferred financial partner to our customers, a center of
career growth to our employees, and to maximize our shareholders’ value, while
contributing to our nation’s financial sector and to its economic welfare.
3.1.2 Mission
Kumari Bank mission is to deliver innovative products and services to our customers, use
these innovative products to achieve financial inclusion, and do so by exemplifying good
corporate governance, proactive risk management practices, and superior corporate social
responsibility.
3.1.3 Objectives
The core values or the objectives of the organization mainly are to meet customer
satisfaction through easy and quality service and others are mentioned below:
i. Bringing innovations and customization to meet customer need and to hold
quality of service.
ii. Provide secured future for its internal employees.
iii. Attractive return to its investors.

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iv. Lower rates for loan clients.
v. Upholding honesty and sincerity
vi. Engaged in various social activities fulfilling corporate social responsibilities.
vii. Strengthen the market shares.
3.2 Major Markets and Customers
Kumari Bank Limited (KBL) with a slogan of “SABAI KA LAGI SADHAI KA LAGI”
expands its services in Dhangadhi. It has been operating its business in many places of
Nepal since sixteen years. Its major market is viewed to be every nook and corner of the
country so it is extending further more branches in the various cities in the near future.
The various branches recently in operation by the branch managers are: provides
customer-friendly services through its Branch Network and all it's the branches are
connected through Anywhere Branch Banking System (ABBS), which enables customers
for operational transactions from any branches.
Table 3.2.1: Number of customer different AC in the bank
(As on 1st October 2017)
S.N. Name of Account No. of Customers
1 Saving Account 2803
2 Current Account 665
3 Call Account 8
Source: CSD, KBL, Dhangadhi Branch
3.3 Organizational Design and Structure
This is organizational structure of Kumari Bank Limited, Dhangadhi Branch. Branch
manager is head of the organization. He supervises the employees and takes major
decision. Credit head deals with the loan customers and do documentation. The ready file
is signed by credit officer & branch manager and send to the head office for the approval.

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Operation department includes CSD and Teller department. CSD department deals with
the customers perform task of cheque clearing, remittance etc. Teller department helps
customer to deposit and withdraw cash from bank. Operation head control and supervise
CSD and Teller staffs of the organization. Since it is branch office, all the staffs work
with cooperation helping each other.
Figure 3.3.1: Organizational Structure of KBL (Dhangadhi Branch)
3.4 Board of Director
Kumari Bank is managed by a team of professional Board of Directors. The Board of
Directors consists of the following personalities.
Table 3.4.1: Board of Directors of Kumari Bank
Mr. Santosh Kumar Lama Promoter Group Chairman
Dr. Shobha Kant Dhakal Public Group Director
Mr. Uttam Prasad Bhattarai Promoter Group Director
Mr. Naresh Dugar Promoter Group Director
Mr. Binod Dabadi Promoter Group Director
Mr. Puna Ram Bhandari Public Group Director
Source: www.kumaribank.com
Operation Department Credit Department
Customer Service Department
Cash Department
Branch Manager

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3.5 Management Team
Kumari Bank is managed by a professional management team. The members of the
management have proven track record in the banking sector. The management team
consists of the following personalities.
Table 3.5.1: Management Team
Name Post/Position
Mr. Surender Bhandari Chief Executive Officer
Mr. Rajib Giri Deputy Chief Executive Officer
Mr. Umesh Singh Bhandari Deputy Chief Executive Officer
Mr. Angir Man Singh Chief Risk Officer
Mr. Rameshwar Sharma Aryal Chief Operating Officer
Mr. Bidur Man Singh Basnet Assistant General Manager
Mr. Rajesh Shrestha Chief Marketing Officer
Mr. Narendra Prasad Chhatkuli Head - Legal, Compliance & Company Secretary
Mr. Bikas Khanal Head - Corporate Credit
Mr. Ganesh Kumar KC Head - Internal Audit
Mr. Rohit Singh Head - Human Resources
Mr. Binod Narasinha Shrestha Head - Central Logistics
Mr. Narayan Prasad Ghimire Head- Information Technology
Mr. Bishwa Mani Regmi Head - Retail
Mr. Nabin Raj Paudel Manager
Mr. Parmeshwar Pant Manager
Mr. Sanjeeb Sainju Head- NPA Management
Ms. Yemi Karki Head - Credit Risk Management
Mr. Nirmal Kumar Khatiwada Head - Finance, Planning & MIS
Ms. Rena Rijal Head - Marketing & Institutional Banking
Mr. Prabin Jha Head-SME
Mr. Pankaj Rana Head - Card
Ms. Sipa Regmi Head - Corporate Communication , CSR, Branding

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& Product Development
Ms. Namita Shakya Head - Branch Operations
Mr. Dinesh Nidhi Tiwari Head - Recovery
Mr. Vishal Rauniyar Head - Compliance & Operations Risk
Mr. Niraj Rai Head - CACD
Mr. Milan Kumar Maskey Head - Foreign Trade
Mr. Tek Raj Parajuli Head - Financial Markets
Mr. Ummeed Shrestha Head - Central Remittance
Source: www.kumaribank.com
Table 3.5.2 Employees in KBL Dhangadhi Branch
S.N. Name of Employees Designation
1. Mr. Khadak Bahadur Rokaya Branch Manager (Officer)
2. Mrs. Sunita Bhatta Operation In charge (Supervisor)
3. Mr. Dharmananda Bhatta Assistant Relationship Manager (Assistant)
4. Mr. Govinda Paneru Teller (Assistant)
5. Mr. Sher Bdr Saud Messenger
6. Mr.Somal Kumar Chaudhary Driver (Outsourced)
7. Miss Deevyeshwori Shahi Paid Intern
Source: KBL Dhangadhi Branch
3.6 Product and Services
Kumari bank offers different kind of product and services according to the customer and
business need. Different products and services offered are as follows:

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3.6.1 Deposit Products
On the collected deposit bank provides the bank give interest rate to the account. The
interest rate Effective since: Shrawan 1st, 2074 are as below:
Fixed Deposit interests rate are as written below:
SAVING DEPOSIT INTEREST (% per annum)
Kumari Smart Bachat Khata 6.10
Shareholders Saving Account 6.10
Twinkle Star Saving 6.10
Shuva Laxmi Bachat 6.10
50 Plus Savings 6.10
Kumari Swastha Jeevan Bachat Khata 7.00
Kumari Saving 6.10
Kumari Salary Saving 6.10
Kumari Big Savings Khata 6.50
Kumari Social Security Allowance Khata 6.10
Kumari Remit Bachat Khata 6.10
FCY Savings Account Upto 1.50
FIXED INTEREST RATE (%)
1. GENERAL FIXED DEPOSIT
1 Month to 3 Months 7.00
Above 3 Months to 6 Months 8.00
Above 6 Months to 9 Months 9.00
Above 9 Months to 1 Year 10.00
Above 1 Year 11.00
Note: Terms and conditions (including Minimum Balance) for various
saving deposits and fixed deposits will be as per the prevailing bank rule.

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Source: www.kumaribank.com
3.6.2 Loan Products
The need for financing various short term and long term venture of both corporate and
retail clients has been best fulfilled by the bank with its large loan product portfolio. The
various kinds of loans provided by the bank such as Short Term, Hire Purchase, Travel
Loan, House, Vehicle and Educational Loan With reasonable interest rate (Effective
since: Shrawan 1st,2074) and other multiple facilities Kumari bank is providing
following loan facilities to the customers:
S.N. LENDING on Base Rate Premium (% Per annum)
1. Overdraft Upto 6.00
2. Working Capital/ Short Term Loan Upto 6.00
3. TR / Importers Loan Upto 6.00
4. Term Loan Upto 6.00
5. Export Credit Upto 6.00
6. Deprived Sector Upto 6.00
7. Home Loan Upto 8.00
8. Education Loan Upto 8.00
9. Auto Loan (Private) Upto 8.00
10. Hire Purchase (Commercial) Upto 6.00
11. Loan Against First Class Bank
Guarantees
Upto 6.00
*Product offer for Limited Period only.
2. INSTITUTIONAL FIXED DEPOSIT
1 Year 10.00
1 Year and Above 11.00
3. SPECIAL FIXED DEPOSIT* 11.00
B. STURCTURED DEPOSIT Negotiable upto 12.00%

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12. Loan Against Marketable
Securities
Upto 8.00
13. Loan Against Deposit of KBL FD Rate + 2%, Minimum BR plus 2%
14. Loan Against Government
Securities
Upto 6.00
15. Other Loan Upto 8.00
16. Professional Loan Upto 8.00
17. FCY Denominated Loans
Prime Libor + 3%
Others Libor + 5%
Note:
1. *Product offer for Limited Period only.
2. Terms and condition (including Minimum Balance) for various savings
deposits and fixed deposits will be as per the prevailing bank rule.
3. Interest Rates on foreign currency deposit, Call Deposit will be provided
based on National/ International Market and Demand & Supply for the said
funds.
4.
5.
Interest Rate on Loans and Advances are indicative only.
Separate rates for consortium financing.
Source: www.kumaribank.com
Base Rate for the month of Jestha 2074 is 10.7 percent and Spread Rate, Interest Spread
Jestha is 2.78 percent (as per NRB Regulation).
3.7 Ownership Structure
Ownership structure refers to the composition of the owner’s capital in the share capital.
It generally comprises of contribution from the promoter shareholders, general public,
and institutional ownership and sometimes contribution from the government as KBL.
The ownership contribution of the KBL comprises contribution from the promoter
shareholders and the general public. Promoter shareholders hold 51 percent of the paid up

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capital and the rest 49 percent is from the general public. The authorized capital of the
KBL is Rs. 5 billion.
Table 3.7.1: Ownership Structure of KBL
Details Current Year NPR
Issued and Paid Up Capital 2,699,166,532
Promoters (51%) 1,376,574,931.32
General Public (49%) 1,376,574,931.32
Source: www.kumaribank.com
Out of the total issues and paid up capital, 51 percent of capital is contributed from the
promoter shareholders and the rest 49 percent is held by the general public. The
shareholder composition of the KBL for the fiscal year 201415 is presented in figure
3.7.1 below.
Figure 3.7.1: Shareholding Pattern
The figure 3.7.1 shows the shareholding pattern of Kumari bank that states 51 percent
promoters and 49 percent from public. It means that the promoter have high authority and
Share Composition
From Promoter
From Public
Source: Kumari Bank Ltd., Annual Report 2014/15

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right then public. KBL can say that the promoter have the control over the management,
they have right to declare the BOD and other decision.
3.8 Capital Plan
As per Monetary Policy 2072/73, Commercial Banks need to increase their capital to Rs
8 Arab by the end of Ashad of the Fiscal Year 2074. If the current merger process goes as
planned, the paid-up capital of the merged entity will reach Rs 8.21 Arab.
Table 3.8.1: NRB Policy of Kumari Bank (8 Arab)
Source: www.kumaribank.com

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CHAPTER IV
ANALYSIS OF ACTIVITIES DONE/ PROBLEMS SOLVED
4.1 Activities Performed in the Organization
In KBL we worked in two different departments i.e. CSD and remittances. As a service
oriented company the major responsibilities of KBL is to give better services to the
clients promptly on their demand. We were mainly given the responsibility of service
related issues under the supervision of the respective officers. In the period of our
internship we helped the organization by sharing the workload of the respective officers.
The working environment was very comfortable to work in with friendly staffs which
made the work easier. Problems are found related to the major responsibilities given to us
are as follows:
1. Customer Service Handling,
2. Remittance department,
3. ECC department and,
4. Others activities performed.
4.1.1 Customer Service Department
A. Enquiry
The group of people who works in front and deals directly with customer represents
Customer Service Department (CSD). The way they deal and respond to the customers
shapes the image of bank. They are like a brand ambassador of Kumari Bank Limited.
So, the primary function of this department is to listen to the queries of customers
carefully and to solve their issues in an effective and efficient manner. In that matter,
CSD provides the details of following for customer retention.
1. A/C Opening Requirements
The first thing we had to know about the criteria of opening the account of a new
customer. The responsibility of the customer service starts with opening of new account

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of the new customer informing them about the facilities available in the organization. We
learnt about the documents required to open a new account. By opening an account bank
bridge its customers to avail the facilities provided by the bank. Any individual or
institution wants to open an account at KBL needs to furnish the following documents:
Personal Full name, Husband/Father’s name, Permanent address from
Citizenship/Passport, Contact address with House & Ward, date of
birth, telephone, ID card for service holder & student. Similarly,
utility bill and husband’s office address for house wife, Two
passport size photograph (all original documents for verification).
Sole Proprietorship Full name of Firm, Full address with contact, Photos of all partners,
Firm Registration Certificate, PAN.
Partnership Firm Full name of Firm, Full address with contact, Photos of all partners,
Firm Registration Certificate, Partnership Deed, authorized letter to
operate an account in case of single operator, PAN.
Corporate Firm Company’s full name and address with contact, Registration
Certificate, PAN (with undertaking), Memorandum of association,
Articles of association, Board Minute on account operation at KBL,
Citizenship and two photograph of account operator and citizenship
and one photograph of all BOD.
Club/Society/
NGO/INGO
Full name and address with contact, Registration certificate, PAN if
registered, constitution, board minute on account operation, photo
and citizenship of account operators.
Co-operative/
Financial Institution
Full name and address with contact, Registration PAN, NRB permit
for FCY exchange, Memorandum of articles and association, Board
minute for account operating, by law, Two photograph and
citizenship of account operator and one photo and citizenship of
BOD.

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School/
Campus/College
Full name of school /campus with full address and contact,
Registration, Memorandum of articles and association, PAN, Two
photograph and citizenship of account operator and one photo and
citizenship of BOD.
Foreign National Valid passport and visa, employment letter from concern
originations, two passport size photos and other supporting
documents.
2. Safe Deposit
All customers are required to maintain a security deposit as per size of the Locker.
The security deposit is refundable at the time of surrender of the SDL and the key by the
customer. However, KBL staffs are not required to maintain a security deposit.
Source: CSD, Dhangadhi Branch
The security deposit or the margin money is refundable at the time of surrender of SDL.
Furthermore, Charges for the lockers (if customer looses key is NPR 2200 plus actual
cost. Surrender of locker is free.
Charges for Lockers
Type Dimension in cm Annual Fee Security Deposit
1 12.5x17.5x49.2 3,150/- 9,450/-
2 15.9x21x49.2 4,650/- 13,950/-
3 12.5x35.2x49.2 5,500/- 16,500/-
4 15.9x42.3x49.2 8,000/- 24,000/-
5 32.8x21x49.2 8,500/- 25,500/-
6 27.8x35.2x49.2 10,000/- 30,000/-
7 32.1x42.3x49.2 12,000/- 36,000/-
8 38.5x52.9x49.2 15,000/- 45,000/-
Note: 50% discount on Annual Fee to the staffs.

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3. Balance Check
CSD provides balance check and transaction check facilities to its account holders. The
balance enquiry through telephone is strictly prohibited. GLOBUS is used to check the
bank balance and detail of account holder.
4. Find Account
In case any account holder or depositor do not recalls the required account number, CSD
helps him/her in finding the account number. GLOBUS is used to find the account; a/c
title wise, category wise, opening date wise, ATM card number wise etc.
5. Internet Banking
KBL has further strengthened its Internet banking services by facilitating e-payment for
various utilities with direct link to his/her bank account. Services like: Mobile bill pmt,
pmt for procurement of goods, college fee pmt etc. For this facility the account holder
must submit internet banking form accepting all terms and conditions of bank and
provide genuine e-mail address and account/s to be linked. The bank then within two
days provides login password and transaction password to the customers on his visit to
bank.
6. Mobile Banking
KBL provides mobile banking facilities on request of its account holders. For this facility
the account holder must submit mobile banking form accepting all terms and conditions
of bank and provide genuine mobile number. The bank then within two days sends
confirmation of mobile banking service through SMS.
7. ATM Card
KBL Visa Electron Debit Card, the plastic money makes cash withdrawals with direct
access to bank account. It issues national as well as international debit card to its account
holders. NPR Debit card can be used in Nepal & India and USD debit card can be used
world-wide. At present, 57 KBL ATMs are located different places of Inside and outside
valley.

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However, the ATM location can be changed / added / removed on management decision.
Currently, the service charge for the use of KBL Visa Electron Debit Card on all KBL
ATMs is free. The ATM Member Group Network of Kumari Bank is as follows:
i. Nepal Investment Bank ATM Network
ii. Global IME Bank ATM Network
iii. NCC Bank ATM Network
iv. Sanima Bank ATM Network
v. National Payment ATM Network
8. Branches
KBL operates its operation from 76 points of representations located in various urban and
semi urban part of the country, 74 branches outside and inside the valley; and two
extension counters.
9. Form Distribution
The following are the forms distributed by CSD:
 Account Opening
 Personal
 Minor
 Super Saving
 Mandate for operating a/c
 Sole / Partnership Business
 Limited Company
 Club/Societies/ NGOs
 Specimen Card
 Loss of Cheque Requisition
 Account Transfer
 Account Closure
 Locker
 ATM Card

29. 29
 New Card Issuance
 Supplementary Card Issuance
 Loss/Damage of Card
 Re-issuance of PIN
 Surrender of ATM Card
 Request for Balance Certificate
 Request for Statement
 Internet Banking
 Mobile Banking
B. New Account Opening
1. Collect documents
For opening any account, customer fills the required application form and two set of
specimen card in the presence of bank staff and hands over to CSD along with required
documents.
2. Check documents as per KBL & KYC Guidelines
Department ensures that the required forms are dully filled by customer and the
documents are in line with the KBL policy and KYC guidelines. In case if all required
documents are not submitted by the customer but account is opened with the approval of
Manager Operation Marketing/Branch Manager/Relationship Manager, remark should be
made on the application form. However, no Chequebook is issued till completion of
required documents.
3. Verify Documents with original
CSD Staff will duly verify all the documents required for opening an account with
original documents.
4. Assign Account Number

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In addition, the CSD staff assigns account number manually in the A/C opening register,
Banker’s Slip and Deposit Slip and further passed for necessary GLOBUS entries and
record keeping purpose. CSD makes individual file for corporate customers.
Account Number consists of 16 digits: First 2 digits Branch Code (28 Dhangadhi),
Second 2 digits Account Code ( i.e. 01 Current, 13 KBY, 22 S etc), three digits Currency
Code (524 NPR), six digits Account Opening Serial Number, 2 digits Number of
Account he/she has with bank (01-if one account, 02-if two accounts & so on) and last
one digit is System Generated.
5. GLOBUS Entries
This process generates A/C number and Mnemonic.
6. Signature Capture
After the approval of Officer Operation, scan the signature card on jpg file and name the
file as with customer’s account number. Signature card should be maintained on system.
Make sure there is no duplication in signature. Signature card should be filed with
Account opening file and one copy should be given to Cash department after
authorization.
C. Other CSD Services
1. Account Transfer
Account can be transferred on request of customer. The following account can be
changed with necessary charges.
i. Super saving account to Normal saving account
ii. Saving account to Current account and Vise Versa
iii. Saving to Card account (with approval)
iv. Normal saving account to Super Saving account.
Similarly, the following are the requirements for account transfer:

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i. Customer who wants to transfer his/her account should submit “Account Transfer
Form at CSD,
ii. Submit Chequebook, if issued,
iii. KBL Visa Electron Debit Card number is mandatory, if card holder and
iv. Photocopy of Account transfer form should be send to card department to link the
card with new account.
2. Account Closure
On the receipt of account closure request form duly signed by the account holder, the
CSD will initiate the process. Before closing any account it is extremely important to
ascertain that whether there are any receivables/dues from the customer related to any
department. Therefore, the first step of account closure is to check the account.
STEP 1: Go to Special Enquiries /Credit Enquires/CLR /Insert customer ID/Display
Customer Liability Report appears which shows the overall position of the
customer and this is done to ascertain the receivables of the customer.
STEP 2: Circulate account closure request
Account closing form along with account opening form should be circulated to all
departments before closing the account. On receipt of no-objection clearance from
all concerned department’s supervisor, further closing process can be forwarded.
STEP 3: Receive Cheque book and/or ATM card if issued.
While closing the account ensure to take chequebook and Visa card along with
Visa surrender form and send it to Card department without fail.
STEP 4: Print Statement from first day of the previous month till account closure date.
For e.g. if account is to be closed on 3rd of March print statement from 1st
February till 3rd March, if account is to be closed on 23rd of April print statement
from 1st March till 23rd April and so on Calculates his accrued interest payable
and tax on his closed account.

32. 32
3. Signature Change
On the receipt of signature change application and specimen cards from the account
holder signature is changed. This process will set the new signature in the system and
remove the old signature from the system.
4. Locker opening/Closing
Locker should be properly maintained by CSD. The below mentioned process is followed
to open a Locker:
i. CSD collects Locker Form filled by Customer with photo and verifies signature.
ii. CSD also allows locker holder to appoint nominee for locker operation, for that
he/she needs to submit 1 photo, citizenship certificate and application signed by
authorized person.
iii. The department has to take out the list of locker holder always at the 1st day of the
English month for proper monitoring. Annual charges should be taken at that time
for previous month. If customer does not have available balance for locker charge,
department should make follow up with them. However Locker charge should be
taken from margin and blocked the account if the customers are not in contact.
iv. Renews locker or informs the customer about the locker status. Similarly, CSD
also prepares exhibit to monitor the maturity profile.
v. Similarly, for the closure of Locker:
vi. Application for locker closure should be obtained from the customer.
vii. CSD will make them sign in key surrender form.
viii. Clears Locker
ix. Returns key back to CSD.
x. Department then release the locker margin and credit customer’s account.
5. Re-activate Account
If an account holder doesn’t operate his account for six months or more, the system will
make his/her account dormant. For the activation of dormant account the account holder
should be present or should submit the written request to the bank. After the re-activation

33. 33
of account, the account holder must make transaction/s on the same day. Otherwise, the
account will again be marked dormant.
6. Credit Interest
The interest rate should be put into the system for every accounts opened on 1st date of
English calendar. Similarly, when the department receives the authorized request to
maintain interest rate above or below the published interest rate then also the CSD needs
to feed the interest in the system. The system will automatically capitalize the interest on
the last day of every three month.
7. Cheque Processing
The following the requirement for cheque processing:
i. Customer submits the requisition slip (For the first time request CSD provides the
requisition slip to customer on demand)
ii. CSD verifies the authenticity of the request by verifying the signature
iii. Cheque issue is discouraged to illiterate customers.
iv. For cheque printout, printer should be set on network and system properly.
8. Cheque/Card Distribution
KBL provides chequebook on request of customers. For the first time request CSD
provides the requisition slip to customer on demand. But, in case of existing cheque
holder he/she needs to submit cheque requisition slip to the bank. In case of loss of
requisition slip he/she needs to pay prescribed charge. Similarly, failure to collect
Cheques within 3 months bank charges NPR 250 on third month and NPR 150 on the
subsequent months.
For Cheque distribution CSD follows the below mentioned steps:
i. CSD prints Chequebook and attach requisition slip on his/ her cheque.
ii. The Chequebooks are arranged alphabetically for the easy access of cheque on
customer’s request.

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iii. While issuing the Chequebook, CSD takes the signature of the customer/-
authorized agent on the cheque register as a receipt as well as on the requisition
slip.
iv. CSD staff verifies the signature and issues Chequebook.
v. Similarly, for Card distribution the department follows the following steps:
vi. The customer fills and submits the ATM application form
vii. CSD verifies signature
viii. Prepares list of ATM application received on daily basis & sends the application
form to card department.
ix. Collects ATM Card and PIN form Card Department
x. Stores and Arranges ATM Card and PIN separately in alphabetic order for the
easy access of card on customer’s request
xi. While issuing ATM card, CSD gives the receipt of card and pin to customer for
signature
xii. CSD staff verifies the signature and issues ATM Card and PIN (account holder
must be present)
xiii. Similarly, the department also sends the daily issued ATM list at card department.
9. Balance Certificate
CSD issues balance certificate on request of account holder. In this process customer
submits the form for balance certificate and CSD verifies the authenticity of the request
by verifying the signature.
10. Statement Printout
CSD issues statement on receipt of authorized request form customer. Statement is
provided to customers on following basis:
i. Saving account: Quarterly basis (date should be chosen as per English or Nepali
Calendar)
ii. Super Saving account: Monthly Basis (date should be chosen as per English or
Nepali Calendar)

35. 35
iii. Current account: Monthly Basis (date should be chosen as per English or Nepali
Calendar)
The department has maintained separate register to verify the account holder’s signature
and to keep record of issued statement. No statement should be issued without obtaining
account holder’s request.
11. Waive Ledger
The customer can open a new account at KBL with the clearing cheque. This cheque
deposit takes 2 working days. So his balance will remain zero for two days. The main
point to ponder is that the system will charge the customer NPR 150 pm if the monthly
minimum balance is lower than the KBL limit. Therefore, to protect the customer from
ledger fee, CSD waives ledger fee on the month of new deposit. Similarly, releases waive
ledger on the start of next month of deposit.
12. Deceased Account
In case of death of account holder, the beneficiary can come to claim with the below
mentioned documents:
 Death Certificate
 Relationship mentioned Certification
 Application Letter
This process does not block the account and override will come at the time of making
transaction. Then the CSD forwards all the documents to legal department for enquiry.
Legal department issues 35 days ultimatum to claim as beneficiary if any in newspapers.
If anyone claims as beneficiary, then on the basis of strength of relationship, legal
department forwards notice to CSD. After that the CSD closes the account and forwards
payment to the legally recognized beneficiary.
13. KYC Update
Nepal Rastra Bank (NRB) has advised banks to follow a 'KYC guidelines', wherein
certain personal information of the account-opening prospect or the customer is obtained.

36. 36
The objective of obtaining KYC information is to enable the Bank to have true
identification of its customers. This is also in the interest of customers to safeguard their
hard earned money. The identification of a customer is a very critical process with a view
to protect the customer interests by preventing from fraudsters who may use the name,
address and forge signature to undertake illegal business activities, encashment of stolen
drafts, cheques, dividend warrants, etc. This also helps to safeguard banks from being
unsuspectingly used for the transfer of deposit of funds derived from criminal activity or
for financing terrorism. Identification of customers will also help to control financial
frauds, identify money laundering and suspicious activities, and for scrutiny / monitoring
of large value cash transactions. Money Laundering refers to conversion of money
illegally obtained to make it appear as if it was earned from a legitimate source. Money
laundering is being employed by launderers worldwide to conceal criminal activity
associated with it such as drugs / arms trafficking, human trafficking, terrorism and
extortion. All crimes that produce a financial benefit give rise to money laundering.
KYC update is the recent activity that is carried out in all the commercial bank as
instructed by Nepal Rastra Bank. So as per the instruction, I distributed and helped the
customer to fill up the KYC form at Kumari Bank Limited, Dhangadhi Branch. For KYC
update, we were told to inform the customer who visit the bank and who doesn’t often
visit the bank they were informed through telephone calls.
D. Record Keeping
CSD keeps report of:
i. .Today Opened & Closed A/C
ii. Re-Activated A/C List
iii. Transaction Above 5 Lakhs
iv. ATM Card Issued & Uncollected
v. Withdrawal Slip Stock Management
vi. Locker Record

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vii. Monthly Exhibit like Cheque (Expenses & Outstanding), Withdrawal Slip
(Expense), ATM (Outstanding), Locker (Outstanding), Goods for Payment
(Outstanding), Balance Lock (Outstanding), Stop Payment (Outstanding) and
Account Closure Suspense.
3.1.2 Remittance Department
The work that we were assigning in this department that of paying out the customer’s
money that may be from local or international and also to send the local remit from
Dhangadhi to other places. KBL incepted remittance on 03rd April 2001. It have started
own Remit Kumari Remit on 2007. There are many remits such as Himal, IME, City, and
many more but main remit used is Kumari Remit for receiving or sending out the money.
For paying out the remittance the number brought by the customer is entered in the
respective page of the remit and the names are verified through the original government
id and the print is taken out. The stamp of the bank and the authorized signature is made
and finally the customer receives the money from teller.
Procedures of Remittance Payment are follows:
Step 1: Customer Visits KBL Branch seeking remittance Payment
Step 2: Request Customer to fill the Remittance Claim Form and Obtain the ID.
(Citizenship/ Driving License/ Passport/ Voter’s Card/ Government Issued ID Card with
Photo).
Step 3: Check & verify the details as per Original ID Copy & Pay the transaction if all the
details matches. Pay the Transaction in system.
Step 4: Pay the Cash, Input all the details in CBS get it approved by Supervisor/In-charge
and file the document (Remit Claim form, Xerox of ID card & Transaction Copy).

38. 38
Claim form to be used For Kumari Remit:
Remittance Payment from 1st Day of Joint Operation:
Overseas Alliance
S.N Name Country
1 AL-ZAMAN Exchange Qatar
2 Max Money Sdn BHd Malaysia
3 Xpress Money Worldwide
4 Instant Cash World Wide Worldwide
5 Contact NG ( Rapida) Worldwide
Local Alliance
S.N Name Remarks
1 IME Payment only
2 PRABHU Pay + Domestic Send
3 WESTERN UNION ( Annapurna Travel) Payment only
4 SAMSARA REMIT Payment only
5 I PAY RELIABLE REMIT Payment only

39. 39
6 MONEY GRAM ( IPAY RELIABLE) Payment only
7 BOOM REMITTANCE Payment only
8 NEPAL REMIT Payment only
9 JME Remit Payment only
10 YES REMIT Payment only
11 RELIABLE REMIT Pay + Domestic Send
12 HIMAL REMIT ( CFS) International Payment Only
13 BEST Remit Nepal Payment only
14 SANIMA Xpress ( Sanima Bank Ltd) Payment only
15 PRITHIVI Xpress ( NIBL) Payment only
16 SULAV Remit (Payment Only) Payment only
17 CENTURY Remit ( Century Com. Bank) Payment only
18 CITY Xpress Money Transfer Payment only
Source: www.kumaribank.com
KBL providing remittance services to the people from more than five thousand agents
including (Best Remit: 3500+, Boom Remit: 2500+, yes Remit: 1000+). Remittance of
Kumari Bank is benefited for sending domestic remittance by following reason:
 Payment can be Received from 5000+ Payout Location (Including the Agents of
Best Remit, Boom Remit and Yes Remit.)
 Same Service Fee throughout the Nation.
 Option of Account Credit as well (FI's Associated with Kumari Remit.)
 Any where payout Option (No Limitation of District or Payout location.)
4.1.3 ECC Department
We feel lucky that we could have the idea of newly emerged technology of Electronic
Cheque Clearing (ECC). It is the new process of clearing the cheque of the other banks
brought by the clients of KBL. Before ECC the particular staff was required to go to the
clearing house i.e. NRB for clearance of cheque but ECC has avoided it and made work

40. 40
of employees more flexible. The supervisor made us capable to handle the cheques for
clearing. We were assigning to do ECC in the absence of the respective officer. For
clearing cheque at first the appropriate stamps are required with authorized signature and
it is scanned through cheque scanner.
4.1.4 Other Activities Performed
 Helping customers to fill up the forms or vouchers,
 Receiving phone calls,
 Cheque/statement printing and scanning,
 Answering to the customers queries,
 Checking balance or a/c number of the clients,
 Filing documents,
 Updating KYC and,
 Preparing register of petty cash.
4.2 Problem Identification
Problems and organization are non-detachable terms. In performing day to day activities
of the organization, one needs to tackle with various problems and challenges. While
dealing with such problems, appropriate managerial skills need to be used to solve the
problem in the effective and efficient way. During the internship period, the following
problems were identified.
 Problems related to the misunderstanding of the customers;
 Problem-related to the change of rules and regulations;
 Problems related to the service provided & mistakes done by the other employees;
 Problems related to the mistakes due to the error in the system;
 Problems related to the nonfunctioning of various services;
 Problems related to the non-clarity of information.

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4.3 Problems Solved
The internship period was short that not enough for learning everything for us. Though it
was short but we tried our best to take the optimum advantage of this period to know the
things to its surface in every department. The staffs were not able to guide sometimes as
they used to get busy with their work and at those times we could not get the answers of
my queries that we had. Being the part of bank as intern we cannot open up everything
we know about the bank due to the oath of secrecy and confidentiality. We were getting
the chance to work in CSD, Clearing and Remittance department of the bank. We tried to
solve the basic problems of the customers and others as well when other staffs were busy:
 Address customer's queries.
 Giving details of the available services to the customer’s for their flexibility.
 Filling up the account opening forms, vouchers or forms for remittance.
 Solving problems related to ATM or PIN.
 Problems related to reconciliation.
 Handling the problems faced by customers.

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CHAPTER V
CONCLUSION (LESSON LEARNT)
5.1 Conclusion
From the above analysis it is seemed that KBL is one of most hard working commercial
bank that is dedicated in serving their valued customers with excellence. During this
internship period, Intern had learnt a lot about the banking activities and banking
operation in the Nepalese market, about KBL in particular. This report has made intern
know about the various kinds of the customer services that KBL has been offering. The
internship has been fruitful in many ways to intern.
Internship has broadened intern’s knowledge, vision, ability, management skill and
confidence to perform in real working environment. It was a great chance to gain
practical knowledge of banking sector. The practical cases are rather different from that
we study in theory. Further intern has also become versed to get socialize with the
diversified people, to deal with the senior staffs, and to deal with the intern colleague so
as to make the working environment cheerful, pleasant and friendlier. Beside this, the
supervisors were extremely helpful in guiding on our internship program.
It was the great experience working as an intern in KBL. The operational environment
was benevolent. There was good communication, healthy competition and healthy
relationship in between the personnel of KBL. Each and every staff of KBL were totally
professional but still there was a family environment making overall internal working
environment delightful to work with. Working at KBL as an intern was a great
opportunity to develop conceptual and analytical knowledge about banking sector in
Nepal. Thus, the knowledge and experience endowed with this study will surely be
constructive towards the pavement of intern’s career and professional life.
During my internship what I also analyzed is that the bank is good in providing a good
customer service. Customers always seek quality service at their convenience. Customers
have preferred Kumari Bank mainly due to its brand image, branch facilities and service

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quality. They expect this bank to rise even more to become the leading bank in service
quality. Improvements have to be made from time to time in order to sustain the
satisfaction level of customers and push the bank to a continuous growing path.
The statement “more you learn more you will discover your ignorance” has seemed to be
appropriate during this internship period in KBL. Intern has obtained insights into career
opportunities through interaction, observation and work experience in the organization
and also built another step towards success through interpersonal, managerial,
communication and entrepreneurial skills gained from this internship period. Being
exposed to professional working environment, intern has understood the corporate social
responsibility, change the attitude and behavior towards daily life spending. The most
important lesson learned by intern has been listed as follows:
i. Various operation and activities of CSD including clearing and Remittance
department of bank.
ii. Social exposure with various types of customers from different background since
KBL deals with its different clients in the process of rendering its services.
iii. Learn to face and handle problems effectively and efficiently.
iv. Chance to get familiar with organizational system installed by KBL.
v. Keeping the account of each and every transaction in file as per the supportive
evidence. So filing is the most important job in the bank.
vi. Along with customer satisfaction, employee satisfaction also plays a great role in
the success of the bank
vii. There was the opportunity to understand different types of stamps and their
respective function that was in use.
viii. Learn the workflow, chain of command and hierarchy of organization.
Many lesson along with these, small and big, were learnt which broadened the knowledge
and brought work maturity in myself. So, these 8 weeks of the internship Internee got the
most exposure to what it is like to work in real life the classroom learning. The internship
program gave the experience, which will be helpful to build a platform and prepare for
the future.