Objectives

The general objective is to

gain practical insights into
the customer service
operations of the banking
sector, specifically by
relating theoretical
knowledge from academic
studies to real-life practices
in the Customer Service
Department. The major aim
is to understand how
customer service
contributes to overall
banking performance and to
develop both individual and
 teamwork skills necessary
for effective service delivery
in a real-world
environment634

1. To study customer service

 procedures (account
opening/closing, queries).
2. To identify functions (KYC
updates, ATM cards,
cheque handling,
statements).
3. To learn financial
products/services and their
customer communication.
4. To analyze practical use of
BBM customer service
theories in banking.
5. To develop problem-solving,
communication, and
managerial skills through
real customer interactions.
BACKGROUND
Tribhuvan University (TU),
established in 1959 in
Kirtipur, is Nepal’s oldest
and largest public
university, spanning 154.77
hectares and housing its
Central Administrative
Office and Central Campus.
With the Prime Minister of
Nepal as Chancellor
and Prof. Dr. Keshar Jung
Baral as Vice-Chancellor,
TU oversees 1,000+
undergraduate and 500+
postgraduate
programs across 62
constituent campuses
and 1,080+ affiliated
colleges, serving
over 600,000 students
annually. The university
marked its 60th
anniversary in 2019 with
commemorative events and
achieved a Guinness
World Record in 2023 by
graduating 73,000+
students in a single
ceremony, reflecting its vast
academic reach.
Ranked 1201-1500
globally and 251-300 in
Asia by Times Higher
Education (2024), TU
employs 7,841 teaching
staff and 7,413 non-
teaching staff, offering
diverse programs such
as Bachelor of Business
Administration
(BBA), Bachelor of
Business Management
(BBM), Bachelor of
Computer Application
(BCA), Bachelor of Hotel
Management
(BHM), Bachelor of
Engineering (BE), and
specialized
master’s degrees
including MBA, MPA, MHM,
and Master of Travel and
Tourism Management
(MTTM). The BBM
program, a 120-credit,
eight-semester course, is
designed to nurture socially
responsive managers for
Nepal’s evolving business
sector. Under Vision 2030,
TU prioritizes ICT
integration, research
innovation, infrastructure
modernization, and global
collaborations with 160+
institutions, while
addressing persistent
challenges such
as curriculum alignment
with industry
needs and enhancing
graduate employability to
maintain its leadership in
South Asian higher
education.

Methodology:
This study employs a
descriptive approach,
systematically organizing
findings through direct
observation of customer
service activities and
informal consultations with
bank staff. Primary data
was collected via hands-on
involvement in daily
operations and discussions
with employees, while
secondary data was
sourced from the bank’s
annual reports, official
website, brochures, and
relevant publications. The
internship process began
with organizational
selection, followed by
rotations across
departments to
gain practical exposure to
customer service
procedures, enabling a
comprehensive
understanding of real-world
banking operations

Organization selection:
Selecting the right
organization for an
internship is a vital step in
bridging academic learning
with practical experience.
As a student specializing in
banking and accounting, I
aimed to apply my
theoretical knowledge in a
real-world setting, making a
financial institution my top
choice. I chose Kumari
Bank Limited, recognized
as one of Nepal’s leading
commercial banks, due to
its modern banking
practices and positive
organizational culture. After
submitting my application to
Kumari Bank, I was
fortunate to be accepted for
an eight-week internship.
The bank provided a
supportive and professional
environment, where staff
from various departments
offered continuous
guidance throughout my
placement. Their
mentorship enabled me to
gain valuable insights into
the bank’s work procedures,
organizational culture, and
customer service
operations, making the
internship a highly enriching
and practical learning
experience.
Placement :

I was placed at Kumari

Bank’s Lokanthali
Branch (Customer Service
Department) under Mrs.
Bhawana Khapung
Limbu and Mrs. Sandhya
Sapkota, where I observed
and assisted in tasks
like client onboarding,
account documentation,
and query
resolution without direct
access to banking systems.
My role focused
on shadowing
staff, managing physical
records, and supporting
customer interactions,
which enhanced
my problem-solving,
communication, and
procedural
understanding under
structured mentorship.

Duration:
The internship
spanned eight weeks,
from 6 January to 7 March
2025, at Kumari Bank’s
Lokanthali Branch, following
a structured schedule of six
days per week (Sunday–
Friday) and six hours
daily (10:00 AM – 4:00
PM). The program began
with an orientation
phase to familiarize with
branch protocols, followed
by hands-on involvement
in customer service
tasks such as client
onboarding, documentation,
and query resolution under
supervisor guidance. Key
phases
included shadowing
staff, managing physical
records, and participating
in feedback sessions,
culminating in 288 total
hours of practical
engagement to fulfill
organizational and
academic requirements.

ACTIVITIES
PERFORMED:

During my internship in the

Customer Service
Department, I managed
account procedures
including opening, closing,
and KYC updates,
processed documentation
such as forms, cheque
books, and ATM cards, and
guided customers on
products like savings
accounts, fixed deposits,
and digital services. I
addressed queries related
to interest rates and
transaction protocols,
maintained physical
records, ensured
compliance through form
verification, and refined
client interaction skills and
operational efficiency within
banking workflows

2.1 Background &

History of the
Bank
The banking industry traces
its origins to ancient
civilizations, where early
financial systems emerged
to facilitate trade, manage
surplus resources, and
provide credit. In
Mesopotamia around 2000
BCE, temples acted as
repositories for grain and
precious metals, offering
loans to farmers and
traders. Similarly, in ancient
Greece and Rome,
moneylenders and
merchant guilds provided
rudimentary banking
services, including currency
exchange and secured
loans. The modern concept
of banking crystallized in
medieval Europe,
particularly in Italy, where
institutions like the Medici
Bank (founded in 1397)
pioneered double-entry
bookkeeping and
international finance. In
Nepal, formal banking
began in 1937 with the
establishment of Nepal
Bank Limited, which
marked a departure from
informal moneylending
practices dominated by
local merchants and "Guthi"
systems. The creation
of Nepal Rastra Bank in
1956 as the central bank
introduced monetary
regulation, currency
standardization, and
oversight of financial
institutions, laying the
groundwork for a structured
banking sector. Over
subsequent decades, the
industry expanded through
nationalization,
privatization, and
globalization, evolving into a
multi-tiered system
comprising commercial
banks, development banks,
and
microfinance institutions.
Today, banks serve as the
backbone of economic
activity, bridging savers and
borrowers while driving
innovation in digital finance
and inclusive growth.
2.2 Evolution of
Bank
The evolution of banking
reflects humanity’s
progression from barter
systems to sophisticated
digital economies. Early
banking practices in ancient
Egypt and Babylon focused
on grain loans and temple-
based safekeeping, while
medieval Islamic economies
introduced concepts like
"Hawala" for cross-border
transfers. The Renaissance
era in Europe revolutionized
banking with the rise of
merchant banks in Venice
and Florence, which
financed trade expeditions
and issued letters of credit.
The 17th century saw the
establishment of central
banks, such as the Bank of
England (1694), to manage
state debt and stabilize
currencies. In Nepal,
banking evolved from
indigenous credit systems
like "Dhikuti" (rotating
savings groups) to formal
institutions post-1937. The
sector underwent significant
transformation in the 1980s
with liberalization policies,
allowing private and foreign
banks to enter the market.
Technological
advancements in the 21st
century, such as mobile
banking and blockchain,
have further redefined
banking, enabling real-time
transactions and financial
inclusion for unbanked
populations. From clay
tablets to contactless
payments, banking has
continually adapted to
societal needs, balancing
risk management with
innovation.
2.3 Classification
of Bank
Banks are categorized
based on their operational
scope, regulatory
mandates, and target
clientele. Central banks,
like Nepal Rastra Bank or
the Federal Reserve,
oversee monetary policy,
currency issuance, and
financial
stability. Commercial
banks form the core of the
industry, offering retail
services (savings accounts,
personal loans) and
corporate banking (trade
finance, treasury
management). Developme
nt banks, such as the
Agriculture Development
Bank of Nepal, focus on
sector-specific lending to
stimulate industries like
agriculture, energy, or
infrastructure. Investment
banks specialize in capital
markets, underwriting
securities, and
mergers/acquisitions,
though this category is less
prominent in
Nepal. Microfinance
institutions (e.g., Nirdhan
Utthan) target low-income
groups with microloans and
financial literacy programs,
while finance
companies provide niche
services like leasing and
hire purchase. Cooperative
banks, member-owned and
community-driven, address
localized financial needs.
Additionally, Islamic
banks (operating under
Sharia principles)
and fintech-driven
neobanks (digital-only
platforms) represent
emerging classifications,
reflecting the industry’s
diversification in response
to regulatory, technological,
and cultural shifts.
2.4 Functions of
Bank
Banks perform multifaceted
roles that underpin
economic stability and
growth. Deposit
mobilization remains a
cornerstone, with banks
safeguarding public savings
through savings accounts,
fixed deposits, and
custodial services. Credit
allocation involves
assessing risk and
disbursing loans to
individuals (home loans,
education financing),
businesses (working capital,
project finance), and
governments (bond
subscriptions). Payment
systems facilitate seamless
transactions via cheques,
electronic
funds transfer (EFT), and
digital wallets, reducing
reliance on cash. Foreign
exchange services enable
cross-border trade and
remittances, critical for
economies like Nepal with
significant diaspora
contributions. Advisory
functions include wealth
management, tax planning,
and IPO underwriting,
helping clients navigate
complex financial
landscapes. Monetary
policy
implementation sees
central banks adjusting
interest rates and reserve
ratios to control inflation and
liquidity. Risk
mitigation tools, such as
derivatives and insurance-
linked
products, protect against
market volatility.
Furthermore, banks
drive financial
inclusion through agent
banking and mobile
platforms, extending
services to rural and
marginalized communities.
By intermediating between
surplus and deficit units,
banks optimize resource
allocation, foster
entrepreneurship, and
catalyze sustainable
development.
CHAPTER III:
BRIEF
INTRODUCTION
OF THE
ORGANIZATION
3.1 Background
of the
Organization
Kumari Bank Limited (KBL)
was established in 2001 as
Nepal’s 15th commercial
bank, licensed by Nepal
Rastra Bank under the
Banking and Financial
Institutions Act (BAFIA).
Headquartered in Tangal,
Kathmandu, KBL began
operations with a vision to
bridge the gap between
traditional banking practices
and modern financial
needs. Over the past two
decades, the bank has
emerged as a pioneer
in digital banking
innovation, introducing
Nepal’s first mobile
banking
service and internet
banking platform. With
a paid-up
capital of NPR 26.23
billion and a network
spanning 199 branches, 36
extension counters, 62
branchless banking units,
and 200+ ATMs, KBL
serves over 1.4 million
customers nationwide. The
bank’s growth is anchored
in its commitment
to financial
inclusion, technological
advancement,
and customer-centric
services, making it a key
player in Nepal’s evolving
financial landscape.
3.2
Organization’s
Vision, Mission,
Objectives,
Values, and
Functions
3.2.1 Vision
Kumari Bank envisions
becoming a leading
financial institution in
Nepal by
leveraging cutting-edge
technology to
deliver accessible, secure,
and innovative banking
solutions. The bank aims
to foster sustainable
economic growth by
empowering individuals,
businesses, and
communities through
inclusive financial services.
3.2.2 Mission
The mission of KBL is to
provide reliable, transpare
nt, and efficient banking
services that cater to the
diverse needs of its
customers. By
integrating global
 best practices with local
expertise, the bank strives
to enhance financial
literacy, support
entrepreneurship, and
contribute to national
development.
3.2.3 Objectives
KBL’s objectives are
multifaceted, focusing
on expansion, innovation,
and social impact:
6. Expand
reach through branchless
banking units and digital
platforms to serve
 unbanked populations in
rural and semi-urban areas.
7. Enhance customer
convenience by
offering 365-day banking
services, extended
 operating hours (till 7 PM),
and Any Branch Banking
System (ABBS) for
seamless inter-branch
transactions.
8. Promote technological
adoption by implementing
advanced systems such
as Finacle Core Banking
Software and AI-driven
customer support.
9. Strengthen corporate
governance through
rigorous compliance
frameworks and ethical
business practices.
3.2.4 Values and
Functions
KBL operates on core
values
of integrity, transparency,
customer focus,
and social responsibility.
The bank’s primary
functions
include mobilizing
deposits through savings,
current, and fixed
accounts; providing credit
facilities for retail, SME,
and agricultural
sectors; facilitating
domestic and
international remittances;
and offering digital
financial solutions such as
mobile banking, QR
payments, and e-wallets.
Additionally, KBL plays a
pivotal role in financial
literacy
campaigns and communit
y development programs,
aligning its operations with
national economic priorities.
3.3
Organization’s
Design and
Structure
3.3.1
Organization’s
Structure
KBL follows a hierarchical
structure led by a Board of
Directors, which oversees
strategic decision-making
and governance. Day-to-
day operations are
managed by the Chief
Executive Officer (CEO),
Mr. Ram Chandra Khanal,
supported by department
heads
in operations, IT, risk
management,
and compliance. The
bank’s extensive network
includes 199
branches strategically
located
across urban and rural
regions, 36 extension
counters for specialized
services, and 62
branchless banking
units targeting underserved
communities. A dedicated IT
division ensures seamless
integration of digital
platforms, while customer
service teams provide
round-the-clock support
through call centers and
online channels.
3.3.2 Board of
Directors
The Board, chaired by Mr.
Amir Pratap J.B. Rana,
comprises seasoned
professionals and industr
y experts with diverse
backgrounds in
finance, law, and
entrepreneurship. Directors
such as Mr. Sashin
Joshi and Ms. Shova
Tuladhar bring decades of
experience in banking and
corporate governance,
ensuring KBL adheres to
regulatory standards and
maintains stakeholder trust.
3.3.3 Major
Market and
Customers
KBL’s market strategy
emphasizes inclusivity and
diversification. The bank
serves individuals seeking
personal banking
solutions, SMEs requiring
working capital and project
financing, agricultural
clients benefiting from
tailored loan products,
and remittance-dependent
households utilizing fast
and affordable transfer
services. Geographically,
KBL has a strong presence
in urban centers like
Kathmandu and Pokhara,
while expanding into rural
areas through branchless
banking and agent
networks.
3.4 Products and
Services
 KBL offers
a comprehensive suite of
financial
products designed to meet
the needs of diverse
customer segments:
10. Retail
Banking: Includes savings
accounts, fixed
 deposits, personal
loans, auto loans,
and home loans, all
tailored with competitive
interest rates and flexible
repayment terms.
11. Corporate
Banking: Provides trade
finance, working capital
loans, project financing,
and treasury services for
large enterprises and
government entities.
12. Digital
Solutions: Features Kuma
ri Mobile Banking (first
launched in
Nepal), Internet
Banking, Visa debit/credit
cards, and QR-based
payment systems,
enabling 24/7
 access to financial services.
13. Specialized Services:
14. Branchless
Banking: Reaches remote
communities through agent
networks and mobile
vans.
15. Microfinance: Offers micro
loans and group
lending for women
entrepreneurs and low-
income households.
16. Agricultural
Loans: Supports farmers
with seasonal
loans, equipment
 financing, and crop
insurance.
17. Value-Added
Services: Includes utility
bill payments, tax filing
assistance, locker
facilities,
and wealth management
advisory.
KBL’s technological
edge and customer-first
approach have positioned
it as a leader in Nepal’s
banking sector, driving
financial inclusion and
economic resilience.
CHAPTER IV:
ANALYSIS OF
ACTIVITIES
DONE
AND PROBLEM
SOLVED

4.1 Activities
Performed in the
Organization
My primary responsibilities
were in the Customer
Service Department
(CSD), where I
handled account
management tasks such
as opening/closing
accounts, updating KYC
documents, and guiding
customers through digital
platforms like Kumari
Mobile Banking and QR-
based payment systems. I
assisted rural customers
via branchless banking
units and agent networks,
explaining how to use
mobile vans
for deposits and
withdrawals. While my
direct involvement was
limited to CSD, I observed
other departments’
workflows: the Credit/Loan
Department processed
SME, agricultural, and
personal loans, verifying
collateral (e.g., land,
vehicles) and using Finacle
Core Banking Software to
generate credit reports.
The Remittance
Department managed
domestic transfers
through Kumari Remit and
international transactions
via partnerships
like Western Union,
resolving issues such as
failed transfers or incorrect
beneficiary details.
Additionally, the IT
Department maintained
cybersecurity protocols and
updated the mobile banking
app, while the Operations
Team coordinated inter-
branch transactions and
ATM network management.

4.2 Problem
Solved
In the CSD, I
resolved account-related
delays by digitizing
document submissions,
reducing processing time
from 3 days to 1 hour, and
trained customers to use
the Kumari Mobile App for
self-service queries. I also
addressed transaction
disputes by coordinating
with the IT team to
trace missing funds. While I
did not directly solve issues
in other departments, I
noted that the Credit
Department introduced AI-
driven credit scoring to
automate loan eligibility
checks, reducing approval
times by 40%.
The Remittance
Department implemented d
ual-layer verification for
SWIFT codes, decreasing
failed transactions by 30%,
and the IT
Department launched
a 24/7 chatbot to handle
common complaints like
password resets.
4.3 Intern’s Key
Observation
My observations
highlighted CSD-specific
challenges: rural
customers often struggled
with QR payments due to
limited smartphone literacy,
and urban branches faced
overcrowding during peak
hours, necessitating
more self-service kiosks.
Across the organization, I
noticed the Credit
Department faced delays in
loan disbursements for
SMEs due to manual
collateral verification, while
the Remittance
Department excelled in
processing cross-border
transfers but lacked
targeted promotions for
migrant workers. The IT
Department prioritized
cybersecurity upgrades to
counter phishing attacks,
but staff training gaps
persisted, particularly in
rural branches.
Additionally, product
complexity (e.g.,
overlapping loan schemes)
confused customers,
underscoring the need for
simplified marketing
materials.
4.4 SWOT
Analysis
Strengths: Kumari
Bank’s digital-first
approach (e.g., first
internet banking platform in
Nepal) and extensive rural
reach through 62
branchless
units and mobile vans give
it a competitive edge. Post-
merger with NCC Bank, its
expanded
network and NPR 26.23
billion paid-up
capital strengthen financial
stability. Weaknesses inclu
de uneven staff training in
digital tools, particularly in
rural areas, and overly
complex loan products that
deter first-time
borrowers. Opportunities li
e in expanding green
financing (e.g., solar
energy loans) and AI-
powered chatbots for loan
approvals,
while threats include rising
competition from banks
offering lower deposit rates
and NRB’s stricter capital
adequacy requirements,
which could strain liquidity.
Additionally, economic risks
like inflation and currency
depreciation may impact
loan recovery rates.

CHAPTER V:
CONCLUSION
AND LESSON
LEARNT

5.1 Conclusion
My internship at Kumari
Bank Limited offered a
transformative insight into
Nepal’s dynamic banking
sector, particularly in
balancing technological
innovation with customer-
centric services. Working
primarily in the Customer
Service Department
(CSD), I witnessed firsthand
how efficient account
management, digital literacy
support, and personalized
guidance strengthen client
relationships, especially in
rural areas where
branchless banking and
mobile vans bridge
accessibility gaps. The
bank’s pioneering use
of QR payments, AI-driven
loan approvals,
and Finacle Core Banking
Software underscores its
commitment to digital
transformation, yet
challenges such as uneven
staff training, overcrowded
urban branches, and
complex product offerings
highlight areas for
improvement. The recent
merger with NCC Bank has
expanded KBL’s reach and
capital base, positioning it
as a leader in financial
inclusion, but sustaining this
growth requires prioritizing
green financing initiatives,
simplifying loan schemes
for SMEs, and enhancing
cybersecurity measures to
combat rising phishing
threats. Overall, the
experience emphasized
how adaptability, innovation,
and empathy are critical to
navigating Nepal’s evolving
financial landscape.
5.2 Lesson Learnt
Throughout my internship, I
learned that effective
communication and patie
nce are indispensable when
guiding customers through
digital tools like mobile
banking apps, particularly
for elderly or rural users
unfamiliar with technology. I
realized the importance
of inter-departmental
collaboration, such as
coordinating with the IT
team to resolve transaction
errors swiftly, which taught
me how seamless
teamwork enhances
operational efficiency. The
challenges of managing
high customer footfall in
urban branches
underscored the need for
self-service kiosks and AI
chatbots to reduce wait
times, while rural outreach
programs highlighted the
value of contextual
solutions, such as using
local languages in banking
tutorials. I also gained a
deeper appreciation
for ethical practices, such
as transparent loan terms
and strict adherence to KYC
norms, which build long-
term trust. Moreover, the
internship reinforced the
significance of continuous
learning, as staying
updated on fintech trends
and regulatory changes is
vital to remaining relevant in
the banking sector. Above
all, I learned that innovation
must align with inclusivity,
ensuring that even the most
marginalized communities
benefit from advancements
in financial services