Internship Report on Siddhartha Bank Limited (SBL), Nepal
CHAPTER
ONE
INTRODUCTION
1.1
Background
Bachelor in Business
Administration (BBA) is the semester wise academic program for management
students designed to provide comprehensive and practical education. BBA Program
in Shanker Dev Campus is under the affiliation of Faculty of Management (FOM), Tribhuvan
University (TU). It is a full-fledged learning program of 8 semesters (120
Credit hours) meeting the international standards of 4 years and constituting
general business courses and advanced courses for specific concentrations.
The internship is one of
the essential parts required for the completion of BBA Program and allows
students to imply their theoretical knowledge in the real workplace. It is the
form of applied knowledge that enhances the individual’s ability and confidence
level to compete in the dynamic and global business world. The exposure to the
actual workplace provides the practical skills and acquaintance that cannot be
acquired by mere classroom education.
One of the major
advantages of internship being placed in the final semester is that the student
can use the knowledge acquired in the previous semester to his/her advantage
and perform efficiently in the completion of the tasks he/she is assigned in
the workplace. The internship gives the insight to the organization and
introduces to the corporate culture within the organization. Internship assists
in improving the interpersonal and communication skills required to sustain in
the competitive business environment. It provides a platform for gaining the
essential managerial and public relationship skills and is an excellent means
for gaining work experience.
Thus, the internship is
the totally practical based program that boosts up the problem-solving ability
by utilizing the conceptual knowledge of an individual in the organizational setting.
It is the career enhancing program and is aimed at developing the level of
understanding and competence required to be a professional manager.
In the recent years,
people are becoming more practical and knowledge oriented. BBA course has been
extensively developed in order to reach the high expectations of the core based
companies that are involved in both, management of the business as well as
within the human resource department. This, itself shows the significance of
this course. This includes the detailed study of the various aspects of
Business and management of business operations. BBA course specializes their
students in various important sectors such as Accounting, Entrepreneurship,
Finance, Human Resource Management, International Business, Marketing etc.
1.2
Importance of Internship
In the final semester of
BBA program, every student should go through the eight weeks long internship in
any industry relating to their specialized subject. Since, it provides the
perfect platform for students to utilize theoretical knowledge in real life
situations. The internship program provides opportunities to observe study and
explore new facts and understand realities about how the organization
functions. It not only helps students to
learn the organizational environment and work culture but also helps to develop
interpersonal communication as well as report writing skills. Along with this;
it helps to boost self-confidence and helps to explore new career
opportunities.
1.3
Objective of the Study
The general objective of
this program is to explore new facts and understand realities how organizations
functions and gain the practical experience in the related field. This further
helps the students to expose themselves to the real world where they can apply
their theoretical knowledge. The specific objectives of the study are:
• To gain knowledge and experience of banking
by means of interaction, observation and working experience
• To know about various financial products of
Siddhartha Bank Ltd
• To see the differences between theoretical
and practical knowledge of the bank in action
• To gain in-depth knowledge about
operational activities performed in the bank
• To know about the corporate culture and
social responsibilities of bank in the present context
• To enhance the communication skills and
public relation skill through direct interaction with the customer.
1.4.
Methodology
Data for this report were
gathered from both primary and secondary source of information collected
through the period of internship.
1.4.1
Sources of Data
Data were collected
through following sources:
Primary
Source
• Observation of working environment.
• Direct interface with the walk-in
customers.
• Interaction with the people from other
relevant firms and organizations.
• Informal discussions and interaction with
the staffs at the different level of the bank.
Secondary
Source
• Annual reports and financial statements of
Siddhartha bank Ltd.
• Information from the various website and
merely of SBL (i.e. www.siddharthabank.com).
• Publications and journals relating to
banking industries.
• Voucher's of Siddhartha bank Ltd.
1.4.2
Organization Selection
Selection of an
organization for internee is a very challenging task as every organization
doesn’t allow internship. Internship from a reputed business house definitely
enlarges the prospects of gaining more practical knowledge and also enhances
the self-esteem of every student. As
being the student of banking and finance, the first preferences is the
financial institution especially bank in order to convert my theoretical
knowledge into practical field.
As per the general rule
of being as an intern, it is necessary to drop college recommendation letter
personal application form with curriculum vitae (CV) in Human Resource
Department of any desired organization and further a regular follow up for the
same is necessary.Finally with same process internee made a selection of SBL as
the host organization for the internship program.
1.4.3.
Placement
During eight weeks period
of internship in SBL, internee was placed in different departments except cash
under the supervision of operation in-charge. But the special focus was on
Customer service Department (CSD).
Table
1.1: placement in internship
Department
|
Working
weeks
|
|||||||
1st
|
2nd
|
3rd
|
4th
|
5th
|
6th
|
7th
|
8th
|
|
Customer
service
|
||||||||
Remittance
|
||||||||
Marketing
|
||||||||
1.4.4.
Duration
The duration of
internship period has been defined for minimum 8 weeks by FOM, Tribhuvan
University that an eight-semester student should complete to acquire six credit
hours. Internee has to be in the bank from 10 a.m. to 5:30 p.m. As per the
requirement, the internship was carried out from 10-06-2012 to 01-08-2012 in
the customer service, marketing and remittance department of SBL, Satdobato
branch.
1.5
Activities Performed
Various activities were
performed in different departments under the guidance of the supervisors of the
respective departments during the internship. Major activities that were
performed in the bank on respective departments can be summarized as below:
1.5.1
Customer Service Department
• Provide details of scheme for the new
account opening
• Assist customer to fill up the form, check
the required documents and verify the photocopy with original one
• Forward the account opening form to CSD
in-charge and branch manager for verification.
• Informing customers about their arrival of
ATM cards, recording them.
• Distribute cheque book and ATM cards to
customers
• Print bank statement to A/C holders or
authorized agents on demand
• Receive incoming calls and respond to the
queries of the customers
• Account closing
• Assist in filing and indexing
• Scanning the signature of the customers.
• Solving the queries of the customers
1.5.2 Remittance
Department
• Handling Siddhartha Remit, Western Union
Money Transfer, Reliable Remit.
• Filling the remittance form, verifying
senders and receivers name, transfer amounts.
• Verifying documents of receiver (ID Cards) and forwarding them for payment
• Handling and answering various customers’
queries.
1.5.3
Marketing Department
• Understanding the products oneself clearly
in order to make it clear to the customers.
• Solving queries of the customers regarding
the products and institution
• Interacting with different prospective
customers
• Making them clear about the Mega products.
• Providing account opening form to the
customers if they want.
• Making follow up to the customers.
.
1.6
Limitation of the Study
Internship opportunity
provided by the bank was a great achievement in itself. But it is fairly not
possible for an internee to cover up the whole thing within a short time. And
as limitations are the part of progressive system, here are some limitations of
the study:
• Lack of adequate time to learn, complete
and detailed work in just eight weeks.
• The information was mainly obtained from
discussion and interaction made with staffs in the bank
• There was no access to use the system and
enter the cash premises.
• As Satdobato branch has just been launched,
it does not provide all the services to the customers.
• Restricted access over different sections
and information due to the private policy of bank for confidentiality
maintenance has shrunk the scopes of exposure in it.
• Confined to this branch and departments, it
does not provide the total picture of the entire organization and entire
banking industry.
However, internee has
tried best level to gain adequate knowledge of Banking and the corporate
culture and sincerely performed the tasks and roles assigned the supervisors.
The whole experience was an excellent opportunity as well as an exciting
challenge.
CHAPTER
TWO
INTRODUCTION
OF BANK
2.1
Concept of Bank
Bank is a financial institution
that deals with the monetary transaction. It accepts deposits from surplus
units and provides the loan to deficit units. It collects scattered money from
the public in the form of deposit by providing them the certain percent of
interest and distributes the accumulated fund to others, who are in need of
money by charging the certain percent of interest, which is usually higher than
the interest that it gives to the depositors. Thus, the spread between interest
on lending and borrowing is the bank’s profit. Banking sector definitely plays
a pivotal role in the overall development of an economy. The functions of the
modern banking system are multifarious in nature and owing to the shift in
emphasis of the functions of the bank a different stage of development;
different economists have defined banking in different ways.
Some definitions of banks
are:
A bank is an organization
whose principal operations are concerned with the accumulation of temporarily
idle money of the general public for the purpose of advancing to others for
expenditure.
Oxford Dictionary
A Bank is a financial
institution, which provides financial services that may be in the form of
accepting deposits, advancing the loan, providing necessary technical advice,
dealing over foreign currencies, remitting funds, etc. Nepal Rastra Bank Act,
2002
Banks are the financial
institutions that fund in the form of deposits repayable in demand or in the
short notice
World Bank
In the present context,
the bank had become the basic need of the human which performs not only the
basic financial activities but also performs other the non-financial activities
to ease the human life. Banks are providing a wide range of services like
remittance, financial counseling, securities investment, bank assurance,
lockbox facilities, swift transfer etc. However, these changes are brought out
by the change in the needs and demands of the people.
2.2
Origin of Bank
The word “bank” is
derived from then Italian word “banco”, Latin word “bancus” and French word
“banque” which means bench on which the bankers would keep money and records.
In ancient time, Italian Goldsmith used to exchange money and moneylender. It
was found in effect that money was not withdrawn at once. Hence, they started
lending on interest. They started to lend deposited money for the short period.
This is how Italian word “bench” seem too simply the banking activities and
lance origin of the bank.
Banks were first
introduced in Rome with its vast trade networks that extended throughout the
Europe, Asia and much of Africa. “BANK OF VENICE” was the first bank
established in Italy in 1157 A.D. Modern banking began to develop in Italy
between1200’s and 1600’s.In between this period many banks were established
such as Bank of Barcelona(1401), Bank of Genoa(1407), Bank of England(1594) and
Bank of Amsterdam(1609). Likewise, India established its first bank, “Bank of
Hindustan” in 1770. These modern banks gradually replaced the merchants,
goldsmith and money lenders. In 1960’s, banking was introduced to the world
because of increase in their worldwide operations and increase in multinational
companies. Nowadays, banks are referred to as lifeblood for business houses as
they offer many facilities like travelers cheques, insurance services, pension
services and other investments.
Some of the oldest
private banks are Barclays, Hope & Co, Barings Bank, etc. Till date the
banks that came under the list of the world’s largest bank which fulfilled
international standards are Bank of America, Citicorp, Midland, Barclays,
Credit Agricole, Fuzi, Mitsubishi, etc. All these banks had one main purpose
that is to safeguard people’s money as well as provide various services such as
accepting deposits, providing loans, providing means of payment, e-banking, and
many other services. Hence, banking had become an important element of the
world economy in the present time.
2.3
Evolution of Bank in Nepal
The history of banking in
Nepal is believed to be started from the time of Prime Minister Ranoddip Singh
in 1877 A.D. he introduced many financial and economic reforms. The Tejaratha Adda
was established at that time and its basic purpose was to provide credit
facilities to the general public at a very concessional interest rate of 5%.
The Tejarath Adda disbursed credit to the people on the basis of collateral of
gold and silver. All employees of
government were also eligible for this type of loan, which was settled by
deducting from their salary. Tejaratha Adda extended credit only; it did not
accept deposits from the public. Hence, the establishment of Tejarath Adda is
regarded as the foundation of modern banking in Nepal. However, ‘Kaushi Tosh
Khana’ established during the regime of King Prithvi Narayan Shah is also
considered as the first step towards initiating banking development in Nepal.
Nepal entered the world
of banking with the establishment of Nepal bank limited
in 1994 B.S which was founded by Judda Samsher, as a semi-government
organization without the existence of a central bank in the country under
special Banking Act 1936, having elementary functions of a commercial bank. 51%
of the paid up capital of Nepal Bank Limited is owned by the Government and 49%
owned by the public. Its main function was to provide loans and accept
deposits. Later, on Nepal Rastra Bank was set up on 2013 B.S. as the first
central bank under Nepal Rastra Bank Act 2012 B.S with an objective of
supervising, protecting and directing the functions of commercial banking
activities. The bank was completely government ownership bank and it also
started to issues notes since 2016 B.S. Another commercial bank fully owned by
the government, “RastriyaBanijya Bank” was established in 1996, which made it
possible for the Nepal Rastra Bank to devote more attention to the important
aspects of economic, monetary and fiscal development.
Nepalese banking sector
hadn’t experienced much growth till 1980s because of the closed policies of
Nepal Government. Till 1980s banking industry hadn’t been opened to the private
sectors and the foreign investments. But after 1980s Nepal government
liberalized its banking policies and opened the door for the private and
foreign sectors. The privatization, tariff adjustments, liberalization of
industrial licensing, easing of terms of foreign investments, liberal trade,
and foreign exchange regime were the motivating factors for the development of
Nepalese Banking Sector.
Only after 2041 B.S,
Nepal government allowed joint venture banks to operate in the country, which
gave a new horizon to the financial sector. Nepal Arab Bank Limited later
renamed as Nabil Bank Limited established in B.S. 2041 as a first joint venture
bank proved to be a milestone in the history of banking which gave hope to the
sluggish financial sector. Thereafter, two foreign joint venture banks, Nepal
Indosuez Bank Ltd. (now called as Nepal Investment Bank) and Nepal Grind lays
Bank Ltd (now called as Standard Chartered Bank Nepal Ltd.) was established in
1986 and 1987 respectively. Then after, several commercial banks have been
established in the recent years.
2.4
Current Banking Scenario of Nepal
After the restoration of
democracy in Nepal, there has been tremendous development in the banking
sector. The economic and financial reform policies undertaken by the government
have increased both number of banks and the types of services offered. Banks
are gradually shifting towards IT-based solution to enhance service delivery in
order to address customer concerns. Banks have launched various products like
E-banking, ATM, mobile banking which facilities several account query tools,
including account balances, thereby minimizing the need for customers to visit
banks.
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.
As a number of banks
increase its regulation also becomes tough. For the purpose of regulation and
controlled NRB had divided the depository financial institutions into four
classes on the basis of minimum paid up capital requirement and functions. This
classification is the unique feature of Nepalese banking industry only and
there is no such classification globally.
Table
2.1: Nepalese Financial Institution
Class
|
Types of financial institutions
|
Paid up capital(in crores)
|
Number
|
A
|
Commercial
Banks
|
200
crore
|
32
|
B
|
Development
Banks
|
64
crore
|
89
|
C
|
Finance
Companies
|
20
crore
|
79
|
D
|
Micro
finance and co-operatives
|
1
crore
|
21
|
Since the interne had
completed the internship in one of the commercial bank of Nepal, the analysis
is specifically focused on the “A” category depository institutions i.e. the
Commercial Bank
2.5
Commercial Bank
Commercial Bank is the
“A” class depository financial intermediary which raises funds by collecting
deposits from businesses and consumers and provides loans to businesses and
consumers. It also buys corporate bonds and government bonds. Its primary
liabilities are deposits and primary assets are loans and bonds. Commercial
banks came into existence mainly with the objectives of collecting the idle
funds, mobilizing them into the productive sector in order to enhance the
overall economic development of the nation. They have the responsibility of
safeguarding the interest of the depositors, the shareholders and the society
they are serving.
According to NRB act,
Commercial Banks are those depository financial institutions which possess the
below features:
• Has the minimum paid up capital of 2
billion
• No limit on resource mobilization
• Can operate nationwide
• Can do all fund based as well as non-fund
based activities
The commercial banks
operating in Nepal are permitted to do both the fund based and non-fund based
activities as the global commercial banks. Listing out the major activities
performed by the commercial banks would result as below:
Primary
Function
• Acceptance of Deposit
• Lending
• Investment
Secondary
Function
• Agency Services
• Collection and Payment of Cheques
• Standing Instruction
• Collecting of bills- electricity, gas,
WASA, telephone etc.
• Purchase and Sales of stocks/ share act as
a banker to issue
• Safe Custody- bailee
• Lockers-trustee
• Remittance facilities
• Advisory services
• Providing Credit reports
• Opening L/C
• Demand in Forex/ Travers Cheque only Authorized
Dealer branches
2.5.1
Importance of commercial bank
• Encourage saving
• Helpful in industrial and economic
development
• Facilitate remittance collection
• Representative of collection
• Loan facility
• Safety of fund
• No need of money handling
CHAPTER
THREE
INTRODUCTION
OF ORGANIZATION
3.1
Introduction of Commercial Bank
Siddhartha Bank Limited
(SBL) came into operation 10 years back in 2002, promoted by prominent
personalities of Nepal with the objective of providing excellent and
professional banking services within a short span of time. The bank’s focus on
business growth, creating infrastructure, development of human resource and
expansion in bank’s outreach has helped the Bank register quantum growth every
year The Bank is confident and hopeful that it will be able to retain this
trust and move even further towards its mission of becoming one of the leading
banks of the industry
Siddhartha Bank has been
posting growth in its portfolio size and profitability consistently since the
beginning of its operations. SBL has been able to gain the significant trust of
the customers with a wide range of products and services. The promoters and
public are holding 51% and 49% share of bank respectively. SBL has been able to
operate its branches in all of the five development regions of Nepal. Today it
has 41 branches and 45 ATM network established at various location all over
Nepal. SBL Bank has been providing holiday banking service to its customers.
Its debit card can be accessed all over Nepal as well as in India.
3.1.1.
Vision
The vision statement of
the bank describes the core values and the purpose that guides the bank. SBL
has the following mission:
“Siddhartha Bank runs
with a vision to be financially sound, operationally efficient and keep abreast
with technological developments.”
3.1.2.
Mission
The Bank desires to be
one of the leading banks of the industry by fulfilling the interest of the
stakeholders and also aims to provide total customer satisfaction by offering
innovative products. The following mission statement is a guide to meet the
Vision of the Bank:
• SBL aims to be one of the leading banks of
the industry in terms of profitability, productivity, and innovation.
• SBL aims at total customer satisfaction by
rendering efficient and diversified financial services through improved
technology.
• Be the place of pride to all its
stakeholders.
• Build a highly motivated and committed team
of staff by nurturing a good work culture to achieve superior individual
performance aiming to enhance organization effectiveness.
3.1.3 Core values of Bank
• Customer focus
• Shareholder prosperity
• Employee growth
• Economic welfare
3.1.4
Objectives
Siddhartha bank limited
has the following objectives:
• Provide competitive and customer oriented
banking serviced to all customers through competent and professional staff
• Assist the government in its operation
• Assist the industrial growth
• Reclaim leadership within the national
financial community
3.2
Capital Structure
Table
3.1: Capital Structure
Authorized
capital
|
3,000,000,000
|
Issued Capital
|
1,571,130,000
|
Paid Up Capital
|
1,571,130,000
|
3.3
Source of Fund
SBL has collected funds
through various sources. Those sources are listed in the table.
Table
3.2: Sources of Fund
Sources of funds
|
Percent
|
Shareholders fund
|
7%
|
Deposit and
Borrowing
|
90%
|
Debenture
|
1%
|
Others
|
2%
|
Fig
3.1: Sources of Fund
3.4
Share Ownership
Table 3.3: Share Ownership
General Public
|
49%
|
Promoter
|
51%
|
Fig 3.2: Share Ownership
3.5 Products
and Services
SBL bank provides various
products and services to satisfy the needs of the customers. The wide ranges of
products are injected in the market in order to provide diversified products to
the consumers. The available products can be detailed as:
3.5.1
Personal Banking
Siddhartha Bank Limited
serves best to customers’ financial needs at their doorstep in a very friendly
environment. The bank is the most dependable strategic partner for fostering
customer small saving as well as solving their financial problems through
offering unique product customized to theirs
needs only.
a. Call Deposit
Call deposit account is
that account where customer park high volume short term deposit. The call
account at Siddhartha bank can help to provide return on the excess fund and
also helps to safeguard the available balance. The interest rate in this type
of account depends on the volume and the stability of deposit and the overall
market condition.
b. Current Deposit
This account is meant to
individuals and institutions wishing to ensure the safety of funds with the
option of anytime withdrawal. The current account has made the transaction easy
for the individual and the institutions. Customers will be provided with a
cheque book containing as many leaves as required by the customers depending
upon the business transactions. Individuals, profit making business houses,
NGOs/INGOs and other can open current accounts. This is non-interest bearing
account.
c. Fixed Deposit
SBL assists the customer
with the fixed deposit of varying tenures and attractive interest rate.This
type of account pays interest to account holders at the rates agreed upon at
the time of opening the fixed deposit account. The interest rate and initial
deposit will be fixed for the period as agreed with the bank. The Bank provides
the flexibility of availing of loan against fixed deposits to assist with
liquidity requirement that may occur before the maturity of the fixed deposits.
Interest on deposits is payable semi-annually (i.e. half-yearly).
d. Saving Deposit
Saving deposit account is
suitable for those who have a habit of saving money from their earnings so that
they can use it when they require. Saving account holders can withdraw the
money as and when they need leaving the minimum balance requirement of the
bank. Interest rates in this type of account vary depending upon the market
condition. SBL provides customers with the range of saving deposit accounts
that can be opened by the individuals.
1. Super salary account
This type of account is
opened by the organization for its staff for the payment of salary. This
account helps to automate the entire salary processing cycle through flexible
models, assured and faster reconciliation.
Features
• Account can be opened with zero balance
• 6.5% per annum interest on daily balance
• Free cheque book issuance and internet
banking facility
• No restrictions for withdrawals and
deposits
• Free Account Statement on request
• Any Branch Banking Services (ABBS)
• Evening counter facility at selective
branches
• Preference for locker facility
2. Siddhartha Jestha Nagarik Bachat
This account is meant for
50-year-olds and above with retirement plans designed with special privileges.
Features
• Minimum balance of 1000
• Cheque book issuance at Rs2500
• 6% interest rate on daily basis
• Free internet banking and account statement
on request
• Any branch banking service (ABBS)
• Preference for locker facility
3. Sarvottam Bachat
This account is for those
who have liquid fund and are looking for saving with high return.
Features
• Minimum balance of Rs.5,000/-
• 6.5% per annum interest on daily balance
• No restrictions for withdrawals and
deposits
• Free of cost cheque book issuance
• Free of cost NTC (Landline& Mobile)
Bill Payment Services
• Internet Banking Facility
• Free Account Statement on request
• Free Any Branch Banking Services (ABBS)
4. Nari Bachat
This product is specially
designed for women; this account boasts of a relatively higher interest rate
and is bundled with an insurance scheme.
Features
• Minimum balance of Rs 1,000
• Cheque book issuance at minimum balance of
Rs 2,500
• 5.5% per annum interest on daily balance
• Accidental death insurance coverage up to
four times the account balance of the customer (minimum balance of the month of
accidental death) or maximum amount of Rs.500,000, whichever is lower.
• Free Internet Banking Facility
• Free Account Statement on request
• Any Branch Banking Services (ABBS)
• Evening counter facility at selective
branches
• Preference for locker facility
5. Siddhartha BalBachat
This account is targeted
for the children up to the age of 16.the main focus is to inculcate a saving
habit in an early age and help in making them understand value for money.
Features
• Account to be opened in the name of a
minor, i.e. children up to 16 years old
• Parents/Guardians can operate the Account
• Minimum balance of Rs1,000
• Cheque book issuance at minimum balance of
Rs2,500
• 5.5% per annum interest on daily balance
• No restrictions for withdrawals and
deposits
• Any Branch Banking Services (ABBS) and
Special locker facility
6. Siddhartha Mega Saving
Individual can open this
account and enjoy banking from any branches with following features.
Features
• Interest rate stands at 4.5%p.a.
• Account can be opened with minimum balance
of Rs.50,000
• No minimum balance required once the
account is opened
• Interest earning starts from balance of
Rs.50,000 and above
• Internet Banking Facility
• Free Inward Remittance
• ABBS Facility
7. Siddhartha Investor’s saving Account
Investor saving account
is an account for the easy transaction for investing in share market.
Features
• Account can be opened with zero balance
• Cheque book issuance at minimum balance of
Rs2,500
• 6.5% per annum interest on daily balance
• Internet Banking Facility
• Free Account Statement on request
• Any Branch Banking Services (ABBS)
• 365 days banking
• Evening counter facility at selective
branches and Preference for locker facility
8. Siddhartha Remit Account
An Account with SBL prior
going abroad; which provides attractive facilities and even family members who
receive remittance can also open remit account.
Features
• Account can be opened with zero balance
• Interest on daily balance: 6% per annum for
NPR account and interest on USD shall be determined as per market condition
• Free cheque books Facility
• Free Account Statement on request
• Free Any Branch Banking Services (ABBS)
• 365 days banking
• Evening counter facility at selective
branches
• Preference for locker facility
9. Siddhartha Bachat
The objective of this
type of account is to allow valued customers maintain the savings account and
carry out transactions with utmost ease. This is the mother product of the
Bank's other savings deposit products.
Features
• Account can be opened with zero balance
• It attracts the interest rate of 4.5% p.a.,
on daily balance basis.
• Cheque book facility at Rs 500/-
• Customers can enjoy banking through the
Bank's 41 outlets spread across Nepal at nominal charges.
10. Siddhartha Bishesh Bachat/Special Saving
Account
It is a special product to carter saving
needs and ensures life at the same time.
Features
• Minimum balance requirement of Rs. 50,000
• 4.5% per annum interest on daily balance
• Any Branch Banking Services (ABBS), free of
cost
• Free accidental death insurance coverage
of up toRs 500,000
• Issuance of TC and Draft at competitive
rates
• Preference for Locker facilities.
11. Siddhartha Kantipur Saving
This is an account
similar to the normal saving account.
Features
• Account can be opened with zero balance
• Attractive interest rate of 4.5%
• Cheque book issuance at Rs500
3.6.2.
Small and Medium Banking
• Siddhartha home loan
• .Siddhartha vehicle loan
• .Siddhartha Education Loan
• Siddhartha personal loan
• .Loan Against Fixed Deposit Receipt
3.6.3.
Corporate Banking
• Business loan
• Trade finance
• Bank Guarantee
3.6.4.
Remittance
SBL provides the wide
range of remittance services to its customer's. Some of which are:
• Siddhartha Remit
Siddhartha Remit is the
remitting mode through which one can transfer amount from Malaysia, Qatar,
U.A.E., Saudi Arabia, Bahrain and various other destination to anywhere in
Nepal. The mode is the fastest and cheapest.
• SWIFT
Customers may use SWIFT
service to remit and/or receive funds, efficiently and securely, to/from
various parts of the globe. SBL has a wide SWIFT arrangement with renowned
banks such as AMEX, SCB, ICICI, Mashreq, and Commerz, just to name a few.
• Travelers’
Cheques
Travellers Cheques (TCs)
are cheques of well-known international financial institutions, which are
easily accepted in hotels, shops, restaurants, banks and universities all over
the world.TCs are considered safer than money, therefore, are very popular
among international travelers. SBL provides TCs of AMEX. We, at SBL, purchase
and sell TC at very competitive rate.
• Managers Cheques
Managers Cheques (MC)are
the cheques drawn by SBL on itself,
especially used for payments made by SBL.The beneficiary can send the
cheque on collection or through clearing or can deposit it in his or her
account with SBL.
• Sale
and Purchase of Foreign Currency
At SBL, all customers,
a/c holders or none, can sell or purchase major foreign currencies namely US Dollars,
Euro, and Pound at the prevailing exchange rates.
• Western Union
Through the Western
Union, the customer can receive fund through thousands of agent located
worldwide. Once the fund is transferred at the sending end, the recipient
Knows MTCN (money
transfer control number), sender’s name, amount, etc., one can obtain fund at
any of SBL’S branches within shortest possible time
3.6.5Other
Services
• Siddhartha i-connect
• VISA debit card
• Locker Facility
• Anywhere Branch Banking System (ABBS)
• Holiday Banking
• Evening Counter
• 365 Days Banking
• E-Banking
3.6.6
Newly Introduced Products
SBL has launched various
new products to meet the demand of the customers. Recently two new products has
been launched.
a.
Student VISA Prepaid card
Features
• Prepaid VISA card valid in Nepal only.
• No minimum balance required
• No fee for using Siddhartha bank ATMs or
making payment for purchases on POS.
• No, reload fee
• Issuance fee of Rs 100
• Cash withdrawal fee of Rs50 across all
other ATMs in Nepal
• The first-time mandatory reloads of Rs2500
which can be withdrawn at any time.
• Combined daily limit of Rs15000
transactions in ATMSs.
• 50% discount on bank charges for payment of
online tests like TOFEL, SAT, GMAT, etc.
b.
International Travel Card
Features
• International card issued against passport
facility
• Can be availed up to USD 2500 twice in
fiscal year or as specified by Nepal Rastra Bank
• Savings on multiple currency exchange loss
• Can be availed instantly over the bank
counter
• Safe and secure compared to carrying cash
or Travelers Cheque
• Can be used for cash withdrawal and
purchase globally
CHAPTER
FOUR
ANALYSIS
OF ACTIVITIES DONE AND PROBLEMS SOLVED
4.1. Background
The internship was
conducted in the Customer Service Department and Marketing department of the
bank under the guidance of operation in-charge. Placement in these departments
provided the exposure and understanding of the various service and procedures
of the bank and its relationship with its customers. All the experience and
knowledge gained in the 8 weeks of the internship is explained in this chapter.
Marketing is the
important part of any financial institution. SBL has also given utmost priority
to this department. Internee got the chance to observe the activities of the marketing
department. In order to provide the practical knowledge and personal dealing
ability to the internee, SBL had given the target of 40 new accounts to every
internee which I had also fulfilled successfully. Going through this target
internee could learn about dealing with the customers and got the chance to
develop personal and communication skills.
4.2.
Customer Service Department
Customer service is the
front desk of any organization. It is the place where customers make the first
contact with the bank. The image and the reputation of the bank depend upon
effective functioning of this department. It includes responding to customers’
questions and complaints in a thorough and timely manner and interacting with
customers through face-to-face meetings, telephone, mail, fax, and email. It is
very important to know that a highly satisfied customer stays loyal longer,
buys more as the organization introduces the new product, pays less attention
to competing brands and is less sensitive to price. Having a significant number
of this kind of customers is only possible through the efficient functioning of
customer service department of any organization.
4.3 Activities
Done in Customer Service Department
This department is
responsible for carrying various activities starting from the opening of an
account to the value additional process as a part of after sales service. The
different activities done in CSD throughout the internship period are:
4.3.1
Dealing with customers
Customer counseling is
most important functions of customer service department. It is the
responsibility of internee to provide the information regarding the bank and
its various products and services. For dealing customers in, CSD, the staff
should have adequate knowledge about the various products and the services of
the bank and should have good communication skill to communicate correctly, precisely
and politely. The inquiry about bank rules, problems of ATM cards, procedures
of opening a new account, fund transfers were the major queries to be answered.
Apart from face to face interaction, the internee has to receive incoming calls
and respond to the queries. The regular follow-up and the contacts with the
customer are essential to flow important messages such as pending documents yet
to be provided, delivery of cheque books and ATM cards.
4.3.2. Account opening
Account opening is the
initial step in deposit collection. It is one of the crucial functions of the
commercial bank. The account opening form contains the accountholder’s name,
permanent and temporary address, occupation, contact number and signature of
the account holder and the type of account preferred to open. Along with an
account opening form he/she should present two passport size recent photo of
own, one copy of citizenship certificate. That should be verified with original
documents. The customers should also include the name and details of the nominee.
After the form is filled, the account number is given as per register sequence.
After this, the customer’s data are stored in the computer system (FLEX CUBE)
after verification by operation in-charge. The account opening form along with
other necessary documents is kept in a file in a serial order as per account
number for future reference.
The bank opens new
account two different ways:
Personal
account
Any individual who is
capable of entering into the contract can open an account in the bank. He/she
can open the account in all convertible currencies directed by NRB. Two or more
individuals can also open a joint account in their names.
The
basic requirement of opening a personal account:
• The account holder must be present in
business desk in the time of opening an account.
• Fill up the prescribed application form.
• Original copy of identification document
i.e. citizenship or passport and photocopy to be attached with the application
form.
• Two passports size photograph of the account
holder.
• Nominee form and citizenship of the
nominee.
• One introducer is required for the new
customer to open an account.
Corporate
account
Any registered firms,
organizations and corporations can open the corporate account in the bank for
smooth business transactions. The corporate account can be opened in all the
convertible currencies directed by NRB. The firms can open the account by providing
the prescribed documents. All the original documents should be presented for
verification. The basic requirements of opening a corporate account are:
For
Proprietorship Firm
• Declaration of Sole Proprietorship.
• A copy of Firm Registration Certificate.
• A copy of Income Tax Registration
Certificate.
• A copy of identification paper of promoter/
account operators Two copies of the the recent photograph of proprietor should
also be obtained.
For
Partnership Firm
• Letter of Partnership duly signed by all
partners.
• A copy of Partnership Deed duly attested.
• Certified copy of Partnership Registration.
• Identification papers of all partners and
account operators.
• Income tax registration/renewed
certificate.
For
Corporate Bodies
• Certified copies of Memorandum and Articles
of Association of the company.
• List of existing directors.
• Resolution of Board of Directors to open
and operate the account.
• Company registration and Income Tax
registration certificate.
• Identification papers of directors and
account operators.
• Notification of appointment of office
bearers as authorized account operators in case of Corporations.
Process of opening new
account (saving and current)
• Provide new account opening form to the
customers (individual or corporate).
• After the form has been filled up by the
customer, review the form so that all the required information is provided.
• Check all the essential documents and
verify them with the original one.
• The customer is requested to fill the
deposit slip to deposit the minimum balance of concerned scheme and charges the
necessary charge for ATM card and other services if applicable.
• The details of the customer are entered
into the bank software (i.e. FLEX) to get customer id and account number.
• The signatures and stamps are scanned and
loaded in the bank software
• . The Operation in-charge verify and
approve the account
• The account opening form along with other
necessary documents is kept in a file in a serial order as per account number
for future reference
Process
for opening fixed account (time deposit)
• The customer is requested to fill the
application for time deposit specifying account holder’s name, amount, maturity
period and other details.
• If the customer does not have any account
in the bank, then he/she should open saving account initially in order to
credit the interest of time deposit.
• Time deposit application is verified by
operation in-charge.
• The customer is requested to deposit either
cash or cheque in his/her saving account.
• Fixed Deposit Receipt (FDR) or time deposit
certificate is issued to the customer as the proof of fixed account after
accepting the deposit.
4.3.3 Account
closing
All the request for the
closure of accounts must be made in writing form and duly signed by the account
holder. All unused cheques leaves, ATM card, locker key must be submitted to
the bank. The bank charges a certain amount for the process.
Table
4.1: Charge of account closing
Duration
|
Charges
|
Within 6months of account opening
|
Rs1000
|
After 6 months of account opening
|
Rs500.
|
Procedure
of account closing
• The customer willing to close the account
should fill up the account closing form.
• For the closure of accounts unused cheques
and ATM should be returned to the bank.
• Before closing any accounts, the bank's
staff verifies the signature, checks all the liabilities of the customer in the
bank.
• For the closure of the individual account
and sole proprietorship account, the account holder should visit bank himself /
herself. Similarly, in the case of joint account all the account holders should
be present.
• Settlement of the balance after deducting
all the required charges. Ensure that no balance is left in the customer’s
account.
• Close the account in the banking system.
• The account closing form with all the
documents is to be filed in the account closing file.
• The returned ATM card should be destroyed
and blocked.
4.3.4 Cheque book issue
Cheque book is issued for
the new account and for the existing account holder on the request by
submitting their cheque requisition.
Process for cheque book
issue
• For new account, customer should fill the
request for the cheque-book in the account opening form.
• For existing account, customer needs to
fill up the slip which is inside the chequebook.
• For new account holder, only 10 leaves of
cheques are issued and after the first issuance, a number of leafs are provided
as per the customers demand.
• The account holder or agent (whose name is
in requisition slip) should be present while receiving chequebook.
• Once chequebook becomes ready need to make
entry in the chequebook register which includes details such as (date, a/c
number, a/c name, receiver’s name, and receiver’s signature, initial of staff)
• Cheque book needs to be finally rechecked
at the time of handing over to the recipient.
• The old requisition slip (presented for the
demand of cheque) should be filed for future purpose.
4.3.4Distribution
of ATM card
CSD is responsible for
distribution of ATM card. The customer can make the use of ATM card with payment
of Rs250 per year. Once the form is filled, the request for ATM cards is
forwarded to the card department and card department makes the card and sent to
the respective branch office.
Process of ATM card
distribution
• A collection of the ATM card received from
card department.
• Maintain record and inform the respected
card holders about the delivery of the card.
• On the presence of card holder, the card
and account details are filled up in card register. The card register includes
information about (date, A/C number, A/C name, card number, delivery date, the
signature of the receiver, initials of staff).
• Signature is verified with the signature of
card requisition provided during the time of A/C opening.
• After verifying the signature, the card is
distributed along with pin code (default pin code initially provided by account
holder while filling the form) and other details about card activation, using
process.
• The account holder is suggested to use the
ATM card only after 24 hours of receiving and for changing pin code for the
activation of the card.
4.3.5
Issue and distribution I-connect username and password
Internet banking facility
of SBL is free of cost service provided to all A/C holders, where one can enjoy
checking balance, transferring money, stop payment, view, and print statement,
etc.
Process
for i-connect distribution
• In order to receive this service, the
account holder has to fill up i-connect form and maintain authorized signature.
• After verifying the details employees in
CSD gets to log in to I- connect service, add details and the system prints
username and password.
• The confidential username and password
printed are then distributed to the respected a/c holder maintaining
acknowledgment for i-connect username and password.
• The account holder then can use internet
banking presented in home page of SBL i.e. www.siddharthabank.com
4.3.6
Account statement printing
Account statement e is a
printed document issued by the Bank to the demanded account holder and contains
the total available balance in the particular account till the date along with
the amount of interest earned. The statement is provided to the account holder
or his/her agent who come with the letter mentioning about providing statement
along with the signature of account holder only. In the case of any
organizations letter mentioning about providing balance statement along with
company’s stamp is the must.
Charges
for account statement
• Free for 6months.
• Rs100 for six months to 2years per
statement
• Rs500 for more than 2years per statement.
4.3.7
Withdrawal slip
Withdrawal slips are same
as cheques offered by Bank for withdrawal of cash from a particular account in
the absence of checks. Customers will need to be present at the counters of the
bank and fill in the required details in the Withdrawal Slip Requisition
register and on verification of the signature CSD will issue the Withdrawal
Slip to the customer. Such slips need to be authorized by Customer service
supervisor, Branch Manager or Customer Service Managers. These facilities are
offered cost-free by SBL.
4.3.8
Filing and record keeping
All the documents created
for various purposes relating to the individual account, corporate accounts,
requisition of cheques, various forms, charges payment slips etc. must be well
documented, indexed and filled in their proper places for future reference.
They should be placed in a fire proof cabinet under lock and key. Where
possible separate cabinets should be maintained for the different type of
account with clear identification on the locker indicating the starting and
ending numbers of the files stored in particular lockers/cabinets.
4.4
Other activities were done and problem solved
CSD and problems are not-
detachable terms. One of the main functions of CSD is to solve the problems.
During the internship period, the following problems were solved.
• Problems related to the malfunctioning of
the ATM Machines
The problem that the CSD
officer should face daily is to manage the angry customer who had to face
problems due to malfunctioning of the ATM machine. The CSD officer clarifies
the actual scenario and apologise if it is due to the fault of the machine
otherwise pointed out the fault of the customer.
• Problems
related to the mistakes due to the error in the system
Sometimes due to various
reasons, the customer’s account would be debited twice for the same charge or
something similar to this occurs. Also, sometimes the ATM Machine doesn’t
provide the cash but the account is debited. This and other these kinds of system
errors makes the customer dissatisfied and hence the dissatisfied customer
arrives at the CSD and this kind of problems are to be handled by the CSD
officer.
• Problem-related to the change of rules and
regulations
The rules related to the
operation of the banks, the interest rates, the charges are revised time to
time to cope with the dynamic environment,, but the customers don’t easily
accept the change. Hence the CSD officer should inform the customer about the
change, its need and relevance to the organization which is really a hard and
tedious job to perform.
CHAPTER
FIVE
CONCLUSION
AND LESSON LEARNT
5.1
Conclusion
The internship is always
a great opportunity for the students to get the field experience and bridge the
gap between the theoretical and practical knowledge. It was a great exposure to
working as an internee at Siddhartha Bank Ltd which brought the practical
knowledge that internee lacked and gained some experience on banking
activities.
The internship at
Siddhartha Bank Ltd helped to gain in-depth knowledge about the real working
environment, interpersonal and communication skills, organizational culture and
behavior, professional qualities and team building spirit as well as working
principles of commercial banks. Besides, observing and learning the various
activities in different departments, gave me the opportunities to perform
various tasks. During that period, internee found that costumers are the key
focus and greatest asset of the bank. Thus, the bank always focused to maintain
long term relationship with the customer and retain them by providing better
services. Employees are directly linked with these customers so employee must
behave in the decent and peaceful way. Similarly, proper coordination and
cooperation among the entire department is needed for growth of an
organization.
Within the short span of
time, the internee got acquainted with the general knowledge of the bank's
activities. Internee was placed in three different departments which helped to
know the various activities performed by the various departments. This
internship program has also helped to know and understand the norms, culture,
and responsibility in an organization.
Thus the experience of
internship program was excellent, lots of things have been learned through this
program and believed that knowledge learned will be applicable in future as
well.
5.2
Lesson learnt
All the lessons learnt
can’t be express in the language form because much knowledge is related to the
realization rather than the new knowledge. It has definitely brought new
insights into the knowledge base by helping to make proper use of acquired
theoretical knowledge as well as by contributing in enlarging the tacit
knowledge.
Anyways, the important
lessons that the internee is happy to express in the word form are bulleted in
the below points:
• Learned that the customers are the main
drivers of any financial institutions, they should be pleased by offering the
quality services which basically depends on the quick service and pleasing
personality of the staffs
• Learned about various products of bank and
its working procedure
• Learned to communicate and deal with the
customers belonging to different classes
• Understood the importance of Cooperation,
coordination and interconnection between the different departments of a bank
for smooth functioning.
• Learned to use the photocopy machine and
scanner to copy and scan the documents as the process of documentation in the
bank.
• Learned the institutional culture and the values
in the corporate world
• Learned the working procedure of the CSD
Many lesson along with
these, small and big, were learnt which broadened the knowledge and brought
work maturity in internee. So, these two months of the internship was the time
where the internee got the most exposure to what it is like to work in real life
than what was learnt in the classroom. The internship program gave the internee
the experience, which will be helpful to build a platform and prepare for the
future.
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