Internship report of Kist Bank Limited - Nepal
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
Bachelor in Business Administration (BBA) program of Tribhuvan University is an object oriented Business Management professional course under the FOM TU, with eight semesters covering an international standard period of four years. The students studying this course are evaluated on the grading system and are required to complete 120 credit hours within 4 years. Among different management courses of TU, BBA is one of the best management courses.
The internship is the requisite of BBA program that carries a credit of 6 hours. Every student should go through 8 weeks long internship in any industry relating to their specialized subject, in order to fulfill the partial requirement of BBA program, It helps to equip the student with practical application of the conceptual inputs that familiarize students with the overall operations of the organizations and the interaction of the total environment within which they operate. It 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.
Today’s financial sector of Nepal is totally dominated by the banking industry. With the emerging opportunities for the financial sector in Nepal, a group of highly successful business personnel conceived an idea to make this industry as most reputed and fast growing sector. As demanded by the course i.e. specializing in “Banking and finance” this report is based on the internship done on Kist Bank Limited at Head Office.
1.2 Objectives of the Study
Internship plays the vital role to gain the practical knowledge and to develop corporate skills. The main objective of this study is to gain sufficient knowledge about the working system of the organization. Thus, the major objective of the study is to make familiar with the real work environment and to develop the coping ability in dynamic world environment and be able to tackle the problems arising in the organizations.
Apart from this there are many objectives of the report they are:
• To fulfill the requirement of BBA program of TU.
• To be familiar with the corporate culture of the organization.
• To gain necessary skills to tackle problems.
• To know about the process in the formation of policy.
• To understand the method of policy servicing.
• To know the process for loan sanction against policy.
1.3 Methodology
1.3.1 Organization selection
Before selecting the organization, Curriculum-Vitae (CV) was dropped at different banks. Among different alternatives available by considering the suggestion by family and easily accessible location, Kist Bank Limited, was chosen to work as an intern. The recommendation letter was also provided by the college which helped to get a chance to work as an internee in one of the best banks in the country.
1.3.2 Placement
Intern was placed in the Head Office of Kist bank Limited. I have completed my whole intern by serving Finance and Account department. Here is the placement under different sub-department of Account and Finance Department
Table 1.1: Placement
DEPARTMENTS
|
SUPERVISORS
|
ACCOUNT AND FINANCE DEPARTMENT
|
SURENDRA CHAND
|
1.3.3 Duration
The duration of internship period has been defined for eight weeks by TU. Internee has completed internship program which lasted for 8 weeks at Kist Bank Ltd. at Head Office. During this period, internee was placed at Finance and Account Department starting from 8th June to 9th August 2012.
Table 1.2: Duration of Internship
Working
Period
|
1
|
2
|
3
|
4
|
5
|
6
|
7
|
8
|
Finance and
Account
|
1.4 Limitation of the Study:
Different limitations were encountered during the project report survey and some of them have been highlighted as follows:
• We can collect only limited information because of limited time and limited provision of bank for sharing information to us.
• The report is based on my individual understanding and knowledge gained during the internship period and theoretical knowledge that has been previously studied.
• Job rotation was not possible as per the need.
• The study might not be able to fulfill the desire to know the details of the prescribed department and its transactions due to confidentiality reasons and policies of the bank.
• The bank’s policy of keeping some crucial facts confidential prevented the interne to know about the bank in depth.
• The report cannot be generalized into entire banking industry.
CHAPTER TWO
INTRODUCTION TO THE BANKING INDUSTRY
2.1 Introduction of Banking
Bank is a financial institution established by law, which deals with money. In simple word, the bank is an institution engaged in monetary transactions. An organization, usually a corporation, chartered by a state or federal government, which does most or all of the following: receives demand deposits and time deposits, honors instruments drawn on them, and pays interest on them; discounts notes, makes loans, and invests in securities; collects checks, drafts, and notes; certifies depositor's checks; and issues drafts and cashier's checks.
A bank is a financial institution licensed by a government. Its primary activities include borrowing and lending money. Banks helps to carry out the activities related to the economy of the country. Example: - trade, industry, commerce, agriculture. Without a bank, it would be quite impossible for the industrialist to collect fund for investment directly from the general public or from other sources.
The bank is a financial institution, which accepts deposits from the public in different accounts and grant loans to individuals and corporations against their securities. So banks are those institutions that offer the widest range of financial services especially credit, guarantee, saving and payment services.
Meaning of Bank
The word Bank has been derived from the Italian word ‘Banco’ which means a place for keeping, lending and exchanging money in the marketplace by money lenders of money changers. The banking history began in 1764 A.D. Since then banking in began to prosper. His Majesty’s government in Nepal adopted liberal open economy after restoration of democracy in the country. As a result several commercial banks were established and came up to operation. Bank is the most important financial institution and largest financial intermediaries in the economy. Banks must be identified by the functions they prefer in the economy. Bank collect scattered money from public providing them interest and provide those fund to the deficit unit. Also this collection becomes the sources of bank to invest so, bank is known as the dealer of money.
According to Crowther “The banker’s business is to take the debts of other people to offer his own in exchange and theory create money.”
According to Kindly, “Bank is an establishment as may be s requires and safety met and to which individual’s interest money which is not required by them.”
Summarizing the above definitions, a bank is an institution which accepts deposit from the public and in turn advances loans institution offering deposits subject to with loan demand and making the loan of commercial in business nature is a bank.
2.2 History of Banking
The concept of banking is not a modern concept. This concept had started to evolve in the brilliant human mind immediately after the humans were able to realize and develop money. Though money had made the human life much easier than before but ancient humans started to realize the complexities that evolution of money had created in their life. So, in order to overcome these complexities and the difficulties that were attached with the benefit of money the concept of banking emerged in the human mind. Earlier the moneylenders and the landlords perform the banking activities as the informal banks but later the activities of these people are formalized and the concept of the bank as an institution had emerged.
Moving towards the word “Bank”, it is thought to be derived from the Italian word “Banco”, Latin word “Bancus” and French word “Banque” because all meant the bench in which the bankers would keep money and its records. The Jews of Lambardy were thought to be the early bankers who transacted third business at the benches in the marketplace and when they were unable to meet their liabilities, the depositors used to break their benches and this tradition had given birth to a banking term “Bankrupt”.The first ancient Bank of the world is supposed to be the Bank Of Venice which was established in 1157 A.D. Following the footsteps of this bank, other two banks were established in 1401 and 1407 named Bank of Barcelona and Bank of Geneva, respectively. The crucial breakthrough in the modern banking history was made in 1694 A.D when the first modern bank “The Bank of England” was established. After the establishment of this first English Bank, Banking sector had experienced various ups and downs but still they persisted and because of that persistence they are now able to exist in this 21st-century world as one of the essential element of human life.
Presently, banks are not only the deposits collecting and loan lending institutions but also the institutions which helps its customers from various ways as per their convenience and ability with full security. They had been developed as the essential service providing institutions in this rushing world. The banks had start affecting the lifestyle of the citizens as well as the economy of the country as well. The recent recession of 2008 is the outcome of the inefficient banking practice and the world had to suffer much only because of the inefficiency and negligence of a single banking sector. Hence, banking had become an important element of the world economy in the present time.
2.3 Evolution of Banking Industry in Nepal
Though the world had already leaped forward towards the modern banking practices but till 1937 A.D, the Nepalese were completely unaware of these developments and still using the money lenders and the rural landlords as the informal banks. This scenario is enough to explain that the banking history of Nepal is not too long. Only after the establishment of Nepal Bank Limited in 1937 as the first Nepali Bank, Nepalese people came to know that there is also another way to get loans except the goldsmiths, and the moneylenders and this can be formalized in the form of institution named Bank.
After the establishment of Nepal Bank Ltd. Nepal started to realize the need of the central bank to control and regulate the banking activities and as the result of that realization, the central Bank of Nepal “Nepal Rastra Bank” was established in 1956 according to Nepal Rastra Bank Act 1955.After the establishment of NRB the government of Nepal started taking the initiatives of establishing the Banks and hence Rastriya Banijya Bank and Agriculture Development Bank was established in 1966 A.D. and 1968 A.D.
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.
Establishment of Nepal Arab Bank Ltd (now NABIL Bank) in 1984 brought a new sensation in the Nepalese banking industry as it was the first foreign joint venture bank in Nepal. After that, one after another many joint venture banks started to operate in Nepal.
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 a unique feature of Nepalese banking industry only and there is no such classification globally. The Nepalese version of classification of depository financial institutions according to the Nepal Rastra Bank and their present number, the central bank of Nepal is shown in table 2.1.
Table: 2.1 Nepalese Financial Institutions
Category
|
Component
|
Minimum Paid up capital requirement
|
Number
|
KA
|
Commercial Banks
|
2 Billion
|
32
|
KHA
|
Development Banks
|
64 crore
|
88
|
GA
|
Finance Companies
|
20 crore
|
70
|
GHA
|
Micro Credit institutions, Co-operatives
|
1 crore
|
16
|
Since the interne had completed the internship in one of the commercial bank of Nepal, the analysis is specifically focused on the “KA” category depository institutions i.e. the Commercial Bank.
2.4 Types of Bank
When a single bank performs multiple tasks, the efficiency and effectiveness of the work become weak. Hence, different banks are established for different purposes. Basically, the banks have been categorized in various types in accordance with the bank's ultimate purpose, customer's demands and choices, and overall economic development of the nation. Broadly, the banks can be classified into following types:
Table 2.2: Types of banks
1. Central Bank
|
7. Development Bank
|
2. Commercial Bank
|
8. Savings Banks
|
3 Cooperative Bank
|
9. Merchant Bank
|
4. Finance Companies
|
10. Land Development Bank
|
5. Export Import Bank (EXIM Bank)
|
11.Building Societies
|
6. Rural Bank
|
2.5 Commercial Bank
Most under developed and developing countries are facing the problem in proper mobilization of financial, physical and human resources. And the chief undertaking used to overcome the problem of mobilizing financial resources both internal and external, is to set up banks and activate them. Banks play a predominant role to develop saving habit of people and for collecting savings people have to mobilize them in productive channel. Thus their role in the economic development is to remove the deficiency of capital by stimulating saving and investment.
Banks undertaking business with the objective of earning profits are commercial banks. The commercial banks are those banks, which pool together the scattered saving of the community and arrange for the productive use and generate profit. Though the commercial banks were established with the concept of supplying short-term credit and working capital need of the industries, they have been providing long term loans for up to 15 years. After the enforcement to lend to priority and deprived sector, these banks initiated to provide credit to small and cottage industries, agriculture and services. Commercial Bank Act 1974 defines a commercial bank as ‘A’ grade which deals in exchange of currency accepting deposits, giving loan and doing commercial transactions.
Bank also provide other various services such as remittance facility, underwriting, bank guarantee, discounting bills, letter of credit facility etc. so, the bank is the institution that is established in order to serve the people in financial and other technical sectors.
Commercial Bank Act 2031 states- “A commercial bank is the bank which exchanges money, accepts deposits, grant loans, and perform banking function.”
Importance of Commercial Banks
Commercial banks play a number of roles in the financial stability and cash flow of countries private sector. They process payments through a variety of means including telegraphic transfer, internet banking, and electronic funds transfer. Commercial banks provide a number of import financial and trading documents such as the letter of credit, performance bonds, standby letters of credit, security underwriting commitments and various other types of balance sheet guarantees. The banks play very important role for the economic development of the country. The importance of commercial banks can be as follows:
• Increase in Saving
Banks plays an important role in developing the saving habit. The people deposit their savings into banks and the bank pays reasonable profit on these savings.
• Increase in Investment
Banks collects the huge amount of fund from the public and provide it to businessman and industrialist which is used for investing in the productive sector which helps to increase the economic activities of the country.
• Increase in Employment
The banks provide the loan to the investor in the productive sector. As a result economic activities of the country increases, industrial units are set up in different parts of a country. Hence, the level of employment is increased.
• Transfer of Money
The transfer of money is possible through the help of banks, according to the need of people. They get traveler cheque and the bank draft from the bank.
• Capital Formation
The process of the capital formation is completed with the financial of commercial banks. So, banks increase capital formation.
• Balanced Development:
When the banks provide a loan to the deprived sector the chances of development is increased in that area also so, there will be balanced development in the country.
Functions of Commercial Banks
• Receiving Deposits:
This is the main function of commercial banks to collect savings of individuals and firms. They offer different types of deposits for the facility of the customers.
Demand deposit
Saving deposit
Time deposit
• Providing Loans
This is another function of a commercial bank to provide credit facility to the customers.
Loans and advances
Overdraft
Cash credit
• Investments
The next main function of the commercial bank is the investment.
Purchase securities
Investing shares
Purchase government securities
CHAPTER THREE
INTRODUCTION TO KIST BANK LIMITED
3.1 Introduction
Kist Bank, established in 2003, with a vision of becoming the best Bank on operational excellence and superior financial performance, has the authorized Capital of NPR 10 billion; issued capital of NPR 5 billion and Paid-Up Capital NPR 2 billion, 60% of the paid-up capital is held by the promoters and remaining 40% by the general public. The share of the Bank is listed at Nepal Stock Exchange Limited (NEPSE), the only Stock Exchange in the country, as 'A' category company. The Bank has a seven-member Board of Directors with the representation of three Directors from the promoters' group, two Directors from the general public and one as Professional Director.
Kist Bank stands for customers' convenience and support. The Bank is driven by values of efficiency in operations, integrity and a strong focus on catering the needs of every customer by offering high quality and cost-effective products and services.
The Bank has the wider range of products and services, which covers Business Banking, Institutional Banking, Small and Medium Enterprises Banking, Consumer Banking, Micro-financing, Transaction Banking. The Bank has also been providing Cards, Remittance, Internet Banking, Mobile Banking (both through four wheeler vehicle and cell phone), etc services.
The Bank has 365 days banking and provides evening banking services from all branches. Deposit and Withdrawal services are available from all branches at free of cost. The Bank is equipped with a robust system for Risks Management. The professional management team, along with dedicated employees, is always looking forward to serving the customers, understanding their needs and designing the tailored-made products and services, who are equipped with a state-of-art technology and IT infrastructures.
Initially it was established as Class "C" Finance Company in 2003 with a paid up capital of Rs 30 million, 17 promoters and 7 staffs. Paid up capital was increased to Rs 2 billion and up-graded to Class A commercial bank by building up the necessary infrastructure and obtaining an operating license from Nepal Rastra Bank (Central Bank of Nepal) in May 2009.Currently, there are 146 promoters, though 2 major shareholders hold 23% shares and 11 shareholders 51% plus.
3.2 Mission/ Vision/ Objectives
Mission
• Mission is to become the leading bank by providing the best quality financial products and services to our customers
• Enhancing shareholders’ value.
• Contributing to the economic prosperity of the country.
• Creating an excellent opportunity for employees.
• Adopting internal and external efficiency by prudent use of technology.
Vision
Become the best bank based on operational excellence and superior financial performance.
Objectives
The main objective of Kist Bank is:
• Promotion of national economy, society and individuals.
• Enhance the market share.
• Building healthy future for Bank employees.
• Providing attractive return to stakeholders.
• Upholding honesty and sincerity.
• Embracing extra-curricular activities for refreshments and fun at work.
• Providing quality services to the customers.
• Participation in social issues.
3.3 Products and Services of KIST Bank Limited
3.3.1 Deposit
Kist Bank Limited offers deposit products among the finance company. Kist bank provides an array of deposit schemes with the competitive interest rate to the customers to attract them. The types of accounts and schemes of deposits provided by Kist bank are:
Saving Account
Current account
Fixed deposits
1. Saving Account
Saving account is an interest bearing account. Interest rate is relatively low than fixed account. Any customers having a savings account is allowed to deposit money and withdraw to the extent of balance freely from his/her account without prior notice. However, individual banks put restriction on number of withdrawals and amount for the day or during month in saving account. In KBL bank only individual can open the saving account either singly or jointly. To open the new account, introducer is needed and introducer should be the account holder of KBL.
2. Current Account
A current account is ideal for carrying out day-to-day business transactions. Kist Current Account offers the flexibility of accessing account anytime, anywhere, pay using payable at par cheques or deposit cheques at any Kist Branches.
Salient Features
• Minimum balance of NPR 1,000.00 to NPR 100,000.00
• The account can be opened only by companies, firms or other organized Institutions.
• Unlimited withdrawals and deposits.
• Free statement on demand.
• Standing Instructions etc
3. Fixed Account
Fixed Deposit is the deposit account maintained with the bank for the stipulated period of time by the customers. The amount cannot be withdrawn before the expiry date, but still if they want to withdraw they should pay a penalty for early withdrawal or they can borrow against their Fixed Deposit Certificates. This deposit account pays higher rate of interest than saving the account.
3.3.2 Loan
1. Education Loan
Kist Education loan has been designed to meet the aspirations of students for completion of their studies both in and out of the country. Kist's education loan scheme provides loan for those students who demonstrate ability, drive and ambition but do not have the financial resources to achieve their goals.
Who Can Apply?
Below mentioned Parents and guardians of the students
• Permanent Salaried Individuals in continued service.
• Professionals at least in 2 years in practice.
• Self-employed businessmen at least 2 years in business
• High Net worth Individuals
2. Agriculture Loan
Based on the viability of the agriculture project/proposal, Agriculture Loan to finance the short/long-term financing need of an individual/firm/company may be made available to purchase a tractor, seeds, fertilizers, insecticides etc.
Who Can Apply?
• Individual farmers,
• Small/Medium Agro Business.
3. Easy Loans
Kist Easy Loan is the first product of its kind to be introduced in Nepal to fulfill the short term cash requirements of students. Under this scheme, the students are provided loan against their educational certificates.
4. Cheli-Beti Home Loan Scheme
"Kist Cheli-Beti Home Loan" is a simple term loan developed to provide individual home loan facilities to women. The product is launched with a view to meet the financing needs of such women who cultivates strong dream to have a plot of land or construction/renovation/extension a home or purchase a home to pass life with family in own home under her ownership.
Who Can Apply?
• Nepalese women having owned regular income from undivided family.
• Permanent salaried women in continued service for minimum 2 years.
• Professional women - at least in 2 years in practice.
• Self-employed businesswomen-at least 2 years in business.
• High Net worth individual women
5. Working Capital Loan
In order to cater to the diverse and varied business requirements of our clients, we offer a wide range of credit solutions with the aid of our world class technology platforms. Working capital needs of the business will be funded under the working capital loan. The funding will be made based on the actual needs of the business. The intended business house should submit the proposal for working capital loan. This loan will be granted based on the proposal and will take a form of an overdraft.
Who Can Apply
• Proprietary concern,
• Partnership firm,
• Small / Medium Business (not covered under Kist Udhyamshil Karza)
• Corporate,
• Multinational Corporations.
Purpose
• To meet the day to day working capital requirement
Salient Features
• Financing of 70% of the working capital requirements.
• Minimum loan NPR. 2, 00,000 and maximum loan NPR. 20 Million.
• Maximum loan tenure of 1 year.
• Interest Rate 15.00% p.a. - 17.00 % p.a.
• Management Fee of maximum 1% of the sanctioned amount.
• Interest payable on a quarterly basis and principal at maturity.
6. Term Loan
In order to cater to the diverse and varied business requirements of our clients, we offer wide range of credit solutions with the aid of our world class technology platforms. We can structure credit solutions to meet your specific short-term or long-term funding requirements. We provide structured term financing solutions the for acquisition of assets, asset-backed equity finance and other long-term business requirements. The loans are provided at competitive rates and are structured to enhance your profitability by scheduling the repayment to match the cash flow available to repay the debt.
Our team of dedicated Relationship Managers is fully committed to understand your business needs and be a partner in your long-term growth. We believe in a long term mutual relationship with our clients by offering a wide range of customized credit solutions.
Who Can Apply
• Proprietary concern,
• Partnership firm,
• Small / Medium Business (not covered under Kist Udhyamshil Karza)
• Corporate,
• Multinational Corporations.
Purpose
• Acquiring new fixed asset, enhancing current production capacity, refinance of equity or asset-backed financing etc.
Salient Features
• Financing of 70% of the working capital requirements.
• Minimum loan NPR. 2,00,000 and Maximum loan NPR. 20 Million.
• Maximum loan tenure of 5 years.
• Suitable moratorium period will be provided.
• Interest Rate 14.50%.
• Management Fee of maximum 1% of the sanctioned amount.
7. Kist Microfinance Wholesale Loan
Kist Microfinance Wholesale Loan is specially designed for financing to the rural people through partnership with other microfinance institutions. The product aims to empower financially excluded deprived people across the country.
Who Can Apply for Loan?
• Micro Finance Development Banks.
• Financial Intermediary NGOs (FINGOs).
• Rural Co-operatives.
Major Features
Loan Tenure up to three years,
• Rs. 0.5 Million to Rs. 20 Million of Loan Limit,
• Interest Rate from 12% p.a to 14.00% p.a,
• The loan may be considered without real estate collateral back up.
8. Kist Uddhamshil Karja
Small and Medium scale business enterprises area has played a vital role in economics reform of developing economies like us the world over. Understanding the significance the role they can play in Nepal’s economy, Kist has introduced structured financial solutions in the form of “Kist Udhyamshil Karza”. “Kist Udhyamshil Karza” caters the need of a wide range of enterprises ranging from wholesale retailers, small and medium scale manufacturing, processing, importer and exporters, suppliers, workshops, educational institutes, hospitals and tours and travels etc. The product will finance net current asset of a business unit in the form of working capital up to one year and term loan to finance on capital expenditure requirement up to 6 years. Following Facilities are offered under Kist Udhyamshil Karza.
• Term Loan
• Overdraft
• Demand Loan/Short –Term Loan
• Trust Receipt /Import loan
• Export financing (pre-shipment /post-shipment financing)
Who Can Apply
• Proprietorship firm.
• Partnership firm.
• Company.
9. Chelibeti Laghu Udyamshil Karja
Kist Chelibeti Laghu Udyamshil Karja aims to realize the dreams of women of establishing micro enterprises or enhancing the existing business by providing financial supports.
Who Can Apply?
• Micro Enterprises registered and operated by Women Entrepreneurs.
• Women who have taken vocational training and want to establish microenterprises
10. Other Personal Loan Scheme
"Kist Other Personal Loan" a term loan developed to provide meets the personal financing requirement of salaried individuals, self-employed, professionals, and owners of small family businesses.
3.4 Facilities Offered by Kist Bank
1) Kist Mobile Wallet
Kist Mobile Wallet service is an easy and handy method of doing banking transaction from mobile phones without having to visit a bank. Kist customer needs to have Kist Mobile Wallet application software installed in their mobile phones. Using such application of their mobile phone, one can do various banking activities such as,
a) Enquiry
• Balance Enquiry
• Last 3 Transactions
• Banking Hour Enquiry
• Exchange Rate Enquiry
b) Transactions
• Fund Transfer
• Shopping
• NT Landline Bill Payment
• NT PostPaid Bill Payment
• NT ADSL Bill Payment
• Merchant Payment
• Buy CDMA Recharge Cards
• Buy NT GSM Recharge Cards
c) Request:
• Statement Request
• PIN Change Request
• Card Stop Request
• Visiting Card Request
2) Fund Transfer
Kist Bank provides the facility of inward and outward transfer of funds through our strong network of branches spread across the country. The Bank has the following correspondences for outward fund transfer across the world.
3) KIST ATM
Kist is providing self-service banking (SSB) to its esteem customers through Kist SSB Card using own ATM Switching software. Till date, we have 80 ATM outlets. Our customer can transact from our terminal free of cost. In additional to this customers can use any other SCT member banks' terminal paying charges.
Our customers can now have access to 24 hours banking service through our 80 ATM locations which have been listed here below:
4) Locker Service
Kist Bank has started Safe Deposit Locker Service to its valued customers from its own Head office premises and other branches including Banepa, Koteshwor, Sinamangal, Amarpath, Swayambhu, and Narayangarh Branch. Kist Bank is planning to provide Safe Deposit Locker Service from all other branches to its valued customers.
5) Remittances
Kist Bank being very much concerned about our valued customers and by assessing their need has come up with new product namely 'Kist Remit'. The Kist Remittance System is designed for our geographically disbursed customers, to help them in easy, convenient and safe money transfer anywhere in the world. We provide attractive exchange rates to our valued customers. Our dedicated teams at remittance department are waiting to provide the service. So hurry up to take the service
Table 3.1: Correspondent Banks
Sno
|
Correspondent Banks
|
Currency
|
SWIFT Code
|
1
|
Standard Chartered Bank, New York
|
USD
|
SCBLUS33
|
2
|
MASHREQBANK, NEW YORK
|
USD
|
MSHQUS33
|
3
|
Nepal Rastra Bank
|
NPR / INR/ USD/ GBP
/ EUR / AUD / JPY |
NRBLNPKA
|
4
|
Standard Chartered Bank, London, UK
|
GBP
|
SCBLGB2L
|
5
|
Standard Chartered Bank, Frankfurt, AM Main DE
|
EUR
|
SCBLDEF
|
6
|
HDFC, Mumbai, India
|
INR
|
HDFCINBB
|
7
|
Standard Chartered Bank, Mumbai
|
INR
|
SCBLINBB
|
8
|
Commonwealth Bank, Sydney
|
AUD
|
CTBAAU2S
|
9
|
Bank Of Tokyo-Mitsubishi UFJ, LTD
|
JPY
|
BOTKJPJT
|
6) SMS Banking Service
We take care of the host of banking needs of our customers through Kist SMS banking. Through SMS banking, customers can check their current balance; receive notification of loan related transactions and notification of cheque transactions.
3.5 Shareholder and promoters
The Authorized Capital of the Bank is Rupees 5 Billion and Issued and Paid up capital is rupees2 Billion .60% (120 Million) of paid-up capital is held by the promoter and rest 40% (80 Million) is held by the general public (Including staffs).
Table 3.2: Share Capital
Group
|
Share Holders
|
No. of Share
|
Share Capital in %
|
Paid Up Capital
|
payment in %
| |
A
|
Promoter
|
12,000,000
|
60
|
1,200,000,000.00
|
100
| |
B
|
General Public (Including Staff)
|
8,000,000
|
40
|
800,000,000.00
|
100
| |
Total:
|
20,000,000
|
100
|
2,000,000,000.00
|
100
| ||
3.5.1 Share Capital
•Authorized capital
The authorized capital of the Bank is Rupees 5,000,000,000.00 (Rupees Five billion only) divided into 50 million equity shares of Rupees 100.00 each.
•Issued capital
The issued capital of the Bank is Rupees 2,000,000,000.00 (Rupees Two billion only) divided into 20 million equity share of Rupees 100.00 each.
•Paid-Up Capital
The Paid up capital of the Bank is Rupees 2,000,000,000.00 (Rupees Two Billion Only) divided into 20 million equity share of Rupees 100.00 each.
3.5.2 Board of Directors
Table 3.3: Board of Director
Mr. Ram Prasad Dahal
|
Chairman
| |
Mr. Kamal Prasad Gnawali
|
Managing Director
| |
Mr. Gyan Bahadur GC
|
Director
| |
Mr. Achyut Raj Joshi
|
Director
| |
Mrs. Gita Gautam
|
Director
| |
Mrs. Rachana Tuladhar
|
Director
| |
Dr. Danda Pani Paudel
|
Director
| |
CHAPTER FOUR
ANALYSIS OF ACTIVITIES DONE
AND PROBLEM SOLVED
Kist Bank has been operating since 2003.It has been providing services through its different departments according to the necessity of customers. It has financed and Account department for handling different accounting and financing transactions, account and finance department for maintaining and running the day to day transaction.
4.1 Activities Performed
• Filing and record keeping of customer
All the document related to an individual and corporate account were filed in a separate file according to the client code and the product entire document were be placed in the proof cabinet under lock and key. In my intern period, I learnt to keep record and file in the respective locker in the proper manner.
• Bank Statement
Bank statement contains the financial transaction of the customer’s account. All the debit and credit balances, tax charges, interest are shown in the bank statement. On the demand of the customers, the bank statement for required period of time is provided. It is provided to the account holder or the agent
• Indexing
Indexing is the process of keeping file and folders in such a way that it can be made available when needed. There are the different type of indexing such as Alphabetical, Numerical, Chronological .Alpha-numeric indexing etc. performed activities related to indexing to locate files and folders.
• Auditing
Under auditing, internee were asked to check the accounting transaction whether they are posted or not in already audited files. I become perfect in this task under the supervision of my supervisor (Miss.Tulsi Karki)
• Assisting Accountant
Assisting accountant in typing letter, printing necessary document, and photocopying files etc.
4.2 Observed Gap
A bachelor in Business Administration is university program that is intended to develop the people of middle-level management level. Regarding this, students are provided with the knowledge regarding different sectors and fields. Other to management, the student is provided with the knowledge of Sociology, Psychology, Business Law, Statistics, Critical Thinking and Decision Making and many more. Interns have better knowledge of these fields, but during the internship period, interns were not provided with the chance to utilize this knowledge in the real world. Interne found out that practical world is totally different from the theoretical base that is being taught in the university studies. Apart from our knowledge, interne came to know about the different methodology and techniques that are being used in the real world.
On the other hand, there is a conception in some of the people that we see in an institution that they think internee sent in the organization are not to learn but to perform their clerical work to ease their work unnecessarily. Interns are being treated as the clerical staff rather than learners.
Apart, from some time, interne are not provided an opportunity to have complete judgment regarding different aspects of the problematic situation, but some of suggestion suggested by interne is also considered which have brought some of the changes in the office procedure. Other than these observed gaps, the total internship program has been so fruitful to set a benchmark that might work as milestone in the further career of interne in different working sector in this real world.
4.3 SWOT Analysis of KIST Bank
Table 4.1: SWOT Analysis of KIST Bank
Strength
|
Weakness
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· Highly skilled manpower
· Friendly working environment
· Well experienced management team
· Effective corporate governance
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· low Market coverage
· Lack of adequate human resources
· High employee turnover
· Quick and efficient service delivery is not proving to be effective
|
Opportunity
|
Threats
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· Presence in untapped market
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· Political instability, No reliability in new venture
· Larger entrances, higher competition for same market pie.
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CHAPTER FIVE
CONCLUSION AND LESSON LEARNT
5.1. Conclusion
During the whole period of internship and the preparation of this report, Internee learns a lot about the banking sector and banking operation, about KBL in particular. The internship has been fruitful in many ways to internee. This report, in particular, has made intern know about the various kinds of Finance and Account function that KBL has been offering.
During the internship, internee has learnt a lot of other aspects other than the banking such as to socialize with the people (including staffs), to deal with the senior staffs, and to deal with the intern colleague so as to make the working environment cozier and friendlier. This internship program also helps in learning the behavioral issues which are most important within and outside the organization.
Lastly, KBL is excellent in term of their services.KBL is one of the most promising banks today and has an opportunity to increases their market share by improving their customer satisfaction by overcoming their weakness and doing their best to retain quality services.
5.2. Lesson Learnt
Working as an intern in Kist Bank for two months, Internee was able to know the working procedure of Finance and Account department of Kist Bank. Furthermore, the internship helped internee to gain necessary skills to tackle problems. Internee not only got exposure to the professional world but has been successful to change attitude, and behavior in the daily life spending. Learning the working culture, general organization environment, workplace behavior, and other important aspects is the real prize awarded by the internship program to internee. Being attached with different department of Kist Bank, internee learned the following points:
• Various rules of NRB and importance of having every possible document in the operation of account and finance activities.
• Learn about various banking income and expenses.
• Learn to face and handle problems effectively and efficiently.
• The importance of being punctual, manage time and being patient.
• Along with customer satisfaction, employee satisfaction also plays a great role in the success of the bank.
• The need of bringing out all potential to move forward as an effectively and efficient employee.
• The tough competition of banks for the survival and the tough competition in the banks for employees as well as getting a job.
• Build up self-confidence.
Many lesson along with these, small and big, were learnt which broadened the knowledge and brought work maturity in the intern. So, these two months of the internship was the time where the intern 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 intern the experience, which will help to build a platform and prepare for the future.
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