Internship Report on NMB Bank Limited

Tandi Branch

Niraj Aryal

Bachelors of Business Administration (BBA)

Boston International College

Affiliated to Pokhara University

Bharatpur, Chitwan

2020
 DECLARATION

I hereby declare that the project work entitled “Internship Report on NMB Bank Limited”
submitted to Boston International College, Pokhara University is my original work. It is my own
exertion and none of the parts of it has been published anyplace before or exhibited as a major
aspect of any model assessment. This report is in partial fulfillment of the requirement of the
degree of Bachelor in Business Administration.

__________________________

Niraj Aryal

2020
 Acknowledgement

I am Niraj Aryal, currently studying BBA degree at Boston International College affiliated to
Pokhara University. As per my curricular requirement I did internship at the Tandi branch of
NMB Bank Limited. This report is dedicated to all the people who have helped directly or
indirectly to complete this project.

I would like to express my sincere thanks to the Branch Manager Mr. Bikash Ranabhat for
making me feel welcome and treating me with respect and generosity. I would also like to thank
Relationship Manager Mr. Vikal Shrestha and Operations Incharge Ms. Manila Shrestha who
taught me a lot on the banking process and compliance requirements. I am equally grateful to all
the employees of NMB Bank Limited who helped me during my internship period.
 Abstract

An internship is first step of learning experience at work environment after the studying of
theoretical knowledge in college. An internship helps to fulfill practical knowledge for students.
This internship has been completed in the NMB Bank Limited Tandi Branch.

It has been good opportunity to do internship in one of the leading A class financial institution
licensed by Nepal Rastra Bank “NMB Bank Limited”. During the internship period, I have
learned various banking activities in different department. It was my first experience in banking
sector. The study shows the importance of the internship program. It will help the students to be
fully aware of the real-world practices before entering into the market as a fresh graduate.

During the internship period at NMB Bank; real life job experience was achieved. I spent most
of the time in CSD and credit department. Customer service desk is the desk where all the
required information is provided to the customers. Credit department deals with lending of
money, credit approval, recovery, risk management and so on. Various general functions such as
account opening and closing, balance inquiry, cheque book issue, and ATM providing etc. are
performed by CSD.

The two months internship period was very helpful as it helped me understand the diverse role a
bank employee has to play and the functions of a financial institution to its fullest. The period
piqued my interest in the treasury and the compliance department operating from the headquarter
and made me eager to learn from them as well. The experience will help me become a better
professional in the days to come.
 Table of Contents

DECLARATION.............................................................................................................................2

Acknowledgement...........................................................................................................................3

Abstract............................................................................................................................................4

Abbreviations...................................................................................................................................7

Introduction......................................................................................................................................8

1.2 Objectives of studying the organization................................................................................9

1.3 Overview of the Organization.............................................................................................10

1.3.1 Brief history..................................................................................................................11

1.3.2 Nature of the Organization...........................................................................................12

1.3.3 Business volume...........................................................................................................14

1.3.4 Number of employees...................................................................................................15

1.3.5 Product line...................................................................................................................15

1.4 Organizational Structure......................................................................................................18

1.4.1 Main Offices.................................................................................................................18

1.4.4 Comment on organizational structure...........................................................................20

1.5 Structure of your department...............................................................................................20

1.5.1 Department hierarchy...................................................................................................21

1.5.2 Number of employees in my department......................................................................21

Internship Program........................................................................................................................22

2.1 Introduction of Branch.........................................................................................................22

2.2 Departments worked............................................................................................................22

2.3 Description of Task..............................................................................................................23

Critical Analysis............................................................................................................................24
 3.1 Critical Analysis of the Theoretical Concepts Relating to Practical Experiences...............24

3.2 Success and failure of different product..............................................................................25

3.3 Major Competitors of the Organization...............................................................................25

3.4 Future prosepects of MBNL................................................................................................26

3.5 SWOT Analysis of NMB (Tandi Branch):..........................................................................27

Conclusion and Recommendation.................................................................................................29

4.1 Conclusions..........................................................................................................................29

4.2 Suggestions..........................................................................................................................29
 Abbreviations

CSD: Customer Service Department

CAD: Credit Administration Department

KYC: Know Your Customer

ABBS : Any Branch Banking System

SWOT : Strength, weakness, opportunities, threats

ECC: Electronic cheque clearing

ATM: Automated teller machine

BAFIA: Bank and Financial institution Act

NRB: Nepal Rastra Bank

SME: Small and Medium Enterprises

MSME: Micro and mid-sized SME

 Introduction

An internship is a professional learning experience that offers meaningful, practical work related
to a student’s field of study or career interest. An internship gives a student the opportunity for
career exploration and development, and to learn new skills. It offers the employer the
opportunity to bring new ideas and energy into the workplace, develop talent and potentially
build a pipeline for future full-time employees.

The seventh semester students of Bachelor on Business Administration of Pokhara University

have been assigned to perform 7 weeks internship on a particular institution and to make an
internship report accordingly. This task has been assigned by the Faculty of Management of
Pokhara University as a partial fulfillment of requirement for the Degree of BBA program. BBA
is a program aiming to develop the student’s skills in objects-oriented business management
capable of understanding and solving the practical business problems creatively. It is a four years
(eight semesters) course constituting of general business courses and advanced courses for
specific concentrations.

As per the degree requirement stipulated by Pokhara University, students in Bachelor’s degree
program have to complete eight weeks of internship. The internship program has been an
excellent opportunity for us to understand and experience banking sector first hand. This
approach facilitates students by allowing them to know the working environment and to tackle
various related circumstances before they actually start to work. Since the students gain essential
knowledge and skills during this period, they can easily learn to adjust in the environment
afterwards.

As part of the requirement and as a subject of interest to me as well I did my internship at NMB
Bank Limited. During these periods I observed how the department functions. This was a great
opportunity for me to know about the banking industry that has worked as a building block for
career development in the financial service sector department.

Thus, internship is career enhancing program which makes student professional in their fields.
1.2 Objectives of studying the organization
Every action is directed towards accomplishing certain objectives. Each kind of study has its
own objectives. The general objective of this report is to partially fulfill the requirements for the
degree of BBA-BI and to understand the banking organization, its structure, working procedures
and risk associated with it. However, the specific objectives of the study are:

 To explore the applicability of theoretical knowledge in the practical workplace.

 To gather the knowledge on the various activities performed in various departments of
the bank.
 To examine and understand about the different products and services offered by NMB
Bank Ltd. Also learn about the organizational framework and business process of the
bank.
 To be familiar with the real work challenges and gain necessary skills to tackle the real
work problems.

The purpose of the internship program is to gain the professional experience by working
fulltime at the organization as an internee for a stipulated period of time. The present
internship study focuses in the direct involvement in the process and personal observation.

Organization selection

For the purpose of internship, I assessed the various banking organizations in Ratnanagar and
finally, found NMB Bank Nepal Ltd. as one with great culture and a growing organization. So,
for internship, my prime target was Mega Bank Nepal Ltd. Accordingly, I dropped Personal
Application and College Recommendation Letter with my resume at NMB Bank Nepal Ltd. I
joined NMB Bank as an intern on December 17, 2019.
1.3 Overview of the Organization
NMB Bank Limited categorized as an “A” class financial institution by the central bank of Nepal
has been operating in the Nepalese Financial market since 1996 A.D. and is one of the leading
commercial Banks in the country. The Bank over the years has established itself as one of the
most progressive banks in the country. The milestones created by the Bank stand not only to be
its own but that of the banking industry in Nepal.

Year 2015 marked a significant milestone for the Bank with a historical merger of four other
financial institution and successful commencement of operation on the same date, positioning
itself as one of the leading commercial banks in the country in terms of assets size,

customer base and branch network. The Bank in 2019 also merged Om Development Bank
Limited (ODBL); one of the largest development banks in the country with strong foothold in
Gandaki Province. With the merger of ODBL, NMB has become the bank with largest branch
networks in the province. NMB has already entered into the agreement to acquire Kanchan
Development Bank Limited (KADBL); a regional development bank located in Far-Western
region of the country.

The Bank has a foreign joint venture agreement with FMO, Netherlands that has 17%
shareholding, the largest foreign investment to be made in the Nepali banking industry till date.
FMO is the AAA rated Dutch Development Bank governed by the Dutch Central Bank with the
mandate to invest Capital in Financial Institutions in developing countries and emerging markets.
This strategic alliance with the FMO is to enable the Bank in becoming the market leader in
SME, renewable energy and agriculture businesses.

NMB is the only Nepali Bank to earn membership of the Global Alliance for Banking on Values
(GABV), joining a global league of banks that believe in ‘placing people before profit’ and are
committed to utilize finance to deliver sustainable economic, social and environmental
development. The Bank hosted the 9th Annual GABV Conference in Kathmandu in March 2017.

The Bank has been awarded the prestigious “Bank of the Year Award’’ consecutively in 2017 &
2018 and also recently in 2020, by The Banker, Financial Times, London and is also a proud
recipient of “SAARC Anniversary Awards for Corporate Governance 2018” along with
“Certificate of Merit” in South Asian Federation of Accounts (SAFA) Best Presented Annual
Report Awards. NMB is also the only Bank in Nepal to receive ISO/IEC 27001:2013
certification for Information Security.

The strength of NMB is manifested in the diverse portfolios it holds as - NMB Group, with its
two subsidiaries viz. NMB Microfinance Bittiya Sanstha Limited & NMB Capital Limited. NMB
Microfinance with its strong network presence in more than 100 rural locations has been catering
to customers in the remote hills of the country, whilst NMB Capital is the leading investment
bank in the country. The Bank has been able to capitalize on the strength of its subsidiaries to
deliver attractive bottom lines thus elevating NMB’s Group results.

With the objective to constantly improve ‘customer experience’ the bank has been taking strides
to innovate its products/ services platforms to consistently meet and surpass customer
expectation. Serving more than a million customers across the country through its network
strength of 163 branches, 129 ATMs, 5 extension counters, and 30 branchless banking agents,
the Bank remains committed to its vision to be the catalyst for bringing in progressive change to
the lives

1.3.1 Brief history

Over the last two decades, NMB Bank has been successful in creating several milestones in the
banking industry. Incorporated as Nepal Merchant Banking & Finance Limited in 1995, the bank
had established itself as one of the most successful finance companies in the country. Testament
to its performance, Nepal Merchant Banking & Finance Limited was upgraded to a Commercial
Bank in 2008 as NMB Bank Limited. It was the first time in the history of Nepali Financial
Market that a ‘C’ class finance company had been upgraded to an ‘A’ class commercial bank.
This was the first step in the bank’s vision to establish itself as one of the leading financial
institutions in the country.

Bank of the Year award 2017 and 2018 in two consecutive years from The Financial Times
London UK have firmly consolidated NMB’s position in the market as one of the leading
commercial banks in Nepal.

The bank has been forward looking in terms of adapting to the changes in the financial sector
both locally and internationally. Over the years NMB has aligned its business structure for the
financial inclusion of the deprived sectors through alliances with international agencies. The
bank has opened a representative office in Malaysia to promote bilateral trade between the two
countries. NMB Bank also has plans to open representative offices in other countries to promote
trade and banking transactions.

The bank created history by merging with four financial institutions in 2015. The merger with
Clean Energy Development Bank, Bhrikutee Development Bank, Pathibara Bikas Bank and
Prudential Finance attracted media attention because it was the first time that five financial
institutions joined to become a single entity, commencing fully-fledged operations the very next
day. This unprecedented strategic move gives NMB Bank balanced distribution of the network
across the country. The bank’s footprint has increased to reach a wider distribution of the
unbanked population; creating increased financial inclusion. The alliance with FMO is in line
with the bank’s strategy to strengthen its portfolio in the energy sector, which holds immense
potential for the growth of Nepal’s economy.

The bank without losing its commercial bank essence has yet embarked on a journey different
than its competitions by becoming a first member of Global Alliance for Banking on Values
(GABV) from Nepal hence sustainable banking guided by the principles of Values Based
Banking remains at the core of NMB Bank. The Bank has thus explored avenues and business
models to ensure that it invests in areas of interventions that have been adopted to create long
term sustainable impact in the regions and communities that the Bank functions. NMB has also
become a market leader in managing environmental and social risk and the leading player in
renewable energy and agribusiness.

With a strategic plan in place, and strong capital base, NMB Bank aims to establish itself as one
of the top five commercial banks in the Nepalese financial market within a short period of time.

1.3.2 Nature of the Organization

NMB Bank is one of the leading A class financial institution that comply with all relevant
legislation, codes of conduct and standards of good corporate citizenship in Nepal. NMB Bank
has been focused on providing tailor-made solutions to meet customers’ requirements, from
individual savings to business financing.
The bank’s diverse portfolio of customers, ranging from corporate houses, mid-market firms to
small and medium enterprises and micro finance customers, are provided with a range of
financing options from working capital by way of overdraft/short term loans, to trade finance
products structured to meet customers’ needs and their risk profile, either as part of a consortium
or as a sole-banker.

Mission & Vision

Vision

Building communities through responsible banking, preferred by all stakeholders, enabling

customers and clients achieve their financial goals thus contributing towards prosperous Nepal.

Mission

Helping clients and customers to achieve financial security

Strengthening and promoting sustainable socio economic development by working actively with
local and international stakeholders

Being responsible for bringing about positive environmental and social impacts

Promoting self reliance through financial products for real economy

Creating an innovative climate within the organization, utilizing the skills and potential of staff.

Delivering banking products and services to create delightful customer experience

5Bs of NMB’s Success

Be innovative with the changing time

Be a team player and deliver results together

Be responsible to our actions

Be prudent for sustainable and consistent growth

Be committed to service excellence

Brand Promise

“Banking for prosperous Nepal” “(SAMBRIDDHA NEPAL KO LAGI)”

Corporate Governance Philosophy

 Meet expectations of all our stakeholders by creating environment of fairness,

transparency and
 accountability within the organization.
 Create and deliver sustainable shareholders value
 Committed towards service excellence and responsible banking
 Motivate workforce by inculcating good corporate governance culture
 Strive for high level business ethics guided by intertwining strategic frameworks

1.3.3 Business volume

The Bank has a total 124,018 Shareholders as on Mid July 2019.

The business volume of NMB Bank Limited is explained as follows:

Shareholding pattern by public and promoter:

Particular Shareholdings %
Promoter 49,052,629.51 51
Public 47,128,997.00 49
Total 96,181,626.51 100

1.3.4 Number of employees

At the end of fiscal year 2018/19 there were 1120 staffs working at NMB Bank.

The total number of employees in the Tandi Branch is 7 including the helpers.

S.N Employee profile Numbers

1 Branch manager 1
2 Operation In-charge 1
3 Teller Department 1
4 Credit Department 1
5 Customer Service Department 1
6 Security Guard 1
7 Messenger 1
Total 7

1.3.5 Product line

A. Retail Deposit Products

NMB Bank has always been providing innovative deposit products to its retail customers to
instill a habit of savings and banking for secured future. Some of the currently available retail
products are as follows:

1. NMB Jeevan Chakra

2. NMB Premium Super Talab Khata

3. NMB Mero Kramik Khata

4. NMB Smart Savings and Fixed Deposit (Social Onboarding)

5. NMB Samriddha and Supreme Samriddha Gandaki Bachat Khata

 6. Sahara Bachat Khata

7. NMB Talab Khata

8. Umanga Bachat Khata

B. Retail Asset Products

1. NMB Ballooning and Reverse Ballooning Housing Loan

2. NMB Pre-approved Loans

3. NMB Fixed Rate Housing Loan

4. NMB Housing Loan

5. NMB Education Loan

6. Land Purchase Loan (LPL)

7. Loan Against Property (LAP)

8. Personal Overdraft (POD)

9. NMB Auto Loan

10.NMB Talab Karja

11.Loan Against Fixed Deposit (LAFD)

12.NMB Credit Card

13.NMB Gold & Silver Loan

C. NMB Agriculture Loan

D. NMB Microfinance Loan

E. NMB Subsidy Loan

NMB Subsidy Loan is a product created in line with Nepal Rastra Bank’s subsidy program to
provide easy and low-rate finance to targeted segments of the economy to improve employment,
productivity and equality in the country. There are different types of targeted subsidy loans
provided under this scheme.

1. Commercial Agriculture and Livestock Loan

2. Educated Youth Self Employment

3. Youth Returned from Foreign Employment

4. Women Entrepreneur Loan

5. Under Privileged Community Business Loan

6. Higher Technical or Commercial Education Loan

7. Loan for Earthquake Victim

8. Agrani Mahila Krishi Karja

F. NMB Renewable Energy Loan

G. NMB Women Entrepreneur Loan (WEL)

H. NMB MSME Loan

I. NMB SME Loan

J. NMB SME/MSME/ Agriculture Top-Up Program

K. NMB Partially Secured Credit (SME/MSME/Agriculture)

L. NMB Mid-Corporate Loan

M. NMB Corporate Loan

N. NMB Project Financing

O. NMB Large Hydro Loan

Some of the core banking services other than deposits and credit offered by NMB bank are
remittance, ATM service, internet and mobile banking, safe deposit locker, Forex, ASBA
service, etc.

1.3.6 Major Competitors

NMB Bank is one of the 27 commercial bank of Nepal and faces competition from all the
leading ‘A’ class and some of the top ‘B’ class banks. At a local level credit and savings union,
finance companies also contest with NMB to collect deposits and advance credit facilities to the
customers.

1.4 Organizational Structure

Like any other financial institutions, NMB Bank has eight board of directors. Mr. Pawan Kumar
Golyan is the chairman of the board. This committee of Board of Directors (BOD) appoints
Chief Executive Officer (CEO).

Under the guidance and oversight of the Board of Directors, Senior Management conducts and
manages the Bank’s activities in a consistent manner in line with the agreed business strategy;
ensuring prudence towards risk appetite and risk management, compliance, good corporate
governance and the basic policies approved by the board. The management team consists of nine
senior managers including the CEO Mr. Sunil KC.

1.4.1 Main Offices

The Head Office of NMB Bank Limited is located at Babarmahal, Kathmandu. NMB Bank has
163 branch offices, 5 extension counters, and 129 ATMs around the country.

Province Branches
Province 1 24
Province 2 17
Bagmati Province 44
Gandaki Province 39
Province 5 29
 Karnali Province 03
Sudur Paschim Province 07

In order to provide banking facilities at the doorstep of the people living in remote areas of the
country, the Bank has been providing branchless banking services in Rasuwa, Dolakha,
Udayapur, Jhapa, Taplejung, Ramechap, Morang, Kapilvastu, Sunsari, Nawalparasi, Bhaktapur,
Kaski and Illam. The Bank intends to expand its branchless banking facilities in other remote
area in future as well.
1.4.2 Organizational Chart
1.4.3 Departments Name

There are various departments in NMB Bank and some of the relevant ones are as follows:

 Credit Administration
 Finance & Planning
 Human Resources
 Legal & Compliance
 Operations Excellence
 Retail, Brand Marketing & Product Development
 Corporate Banking
 Treasury Front
 Digital Banking

1.4.4 Comment on organizational structure

There is a flow of information and command in hierarchical order, simply from top level to
lower level. The banking experience provided by the bank is very good and the products and
offerings are unique as well as competitive. The credit administration department is very well
managed and due diligence is done properly as well as swiftly. The compliance is insured highly.
There are cross functional team who work to ensure that team dynamics is high and work is
performed efficiently.

1.5 Structure of your department

I worked mostly on the Credit Administration Department and a few days at Customer Service
Department as well. The credit department had two members including the Branch Manager and
the Relationship Manager. The information flows from branch manager to operation in-charge
and other departments. Each department members cooperate with other department members
while performing the job.
1.5.1 Department hierarchy
I engaged in customer service department and Credit department. As there was only one staff in
CSD and only one staff in credit department so there was not such hierarchy. Customers directly
deal with the respective staffs.
Branch Manager

Operation In-charge CSD Credit Department Teller

1.5.2 Number of employees in my department

There was only one staff in CSD and only one staff in credit department. In this branch each
department had only one staff and I worked with them simultaneously as per their requirements.
 Internship Program
2.1 Introduction of Branch
The Tandi Branch NMB Bank was previously Om Development Bank which was merged with
NMB in 2019. The personnel working in the bank are seven in numbers which includes security
guard and messenger. They work as a family member to make the working environment friendly,
motivating and supportive. It consists of department such as CSD, teller, credit, operation etc.

Customer’s satisfaction is the paramount driver at NMB Bank Ltd. It was a great chance to gain
practical knowledge of banking sector from this bank. Beside this, the supervisors were
extremely helpful in guiding on our internship program. The operational environment was
friendly. There was good communication and healthy relationship in between the different levels
of staffs. Working as an intern in this branch has mainly provided us an opportunity to learn
about practical implication in our career building hence it is a significant platform for our future
career.

The branch is interlinked by the centralized banking software from Infosys which helps it to
carry Any Branch Banking Service. The branch also provides facilities like SMS banking,
internet banking, ECC, Remittance, ATM/Debit card, ABBS etc.

2.2 Departments worked

As an internet, I worked in CSD and credit department. In CSD, I worked under the
guidance of Ms. Manila Shrestha (CSD). She taught me everything in CSD thoroughly and
helped me whenever I was in need of it and answered each of my queries without getting
irritated. “Customer counseling” is most important functions of customer service department.

I also worked in credit department, where I came to know the way to deal with the clients, the
major documents required, the kind of business plans to be presented and so on. In Credit
Department, Mr. Vikal Shrestha (Credit Department) helped me as my guardian. The Branch
Manager Mr. Bikash Ranabhat also helped me settle in and learn diverse banking process.
2.3 Description of Task
I worked for a few weeks in the CSD department where I performed the following activities:

 To counsel the customers and answer their enquiries.

 Informing customers about the various services provided by the bank.
 To open the different accounts after all the requirements are fulfilled.
 To print out the Statement as per the requirements of customers. • To deliver the checks
and cards and internet banking password as per the requirement of organization.
 To deliver ATM cards.
 To close the accounts of customers.
 To fill the deposit slip and current vouchers.
 To prepare balance certificate.
 To prepare the statement of account.

I also worked on the credit department for the majority of my internship period. Some of the
functions I performed in this department are:

 Preparing and obtaining the security documents like loan deed, pledge deed, hire
purchase agreement, promissory note, personal guarantee, and hypothecation etc.
 To ensure that all documentation are complete and in compliance with the legal
department so that they are legally enforceable.
 Photocopying the original documents and preparation of credit files of the customers.
 Filing the legal and security documents in orderly and well secured manner.
 Preparing loan proposal, memo, and necessary documents for loan process.
 Contact with the customers for credit recovery.
 Critical Analysis
3.1 Critical Analysis of the Theoretical Concepts Relating to Practical Experiences
Internship plays an important role in matching the knowledge gained from theoretical
perspective of education with the practical exposure at workplace. It also provides an opportunity
to learn about the activities of the bank and its corporate culture. Within a short span of time an
internee learned so many things like dedication, commitment to meet targets, interpersonal and
communication skills etc. which will certainly help in coming days. The various theoretical
concepts that we experienced during our internship are as described below:

 Provisions related to loan: As studied in Legal Aspects of banking and insurance,

the organization provides loan after validating the purpose for which the loan has
been taken, evaluation of the property given as collateral, inspection of whether the
loan will be recovered on time or not and so on.
 Organizational structure: In NMB Bank, I found a typical hierarchical structure
where all the employees had to work under a branch manager.
 Organization Work culture: it is a system of shared assumptions, values, and beliefs,
which governs how people behave in organizations. These shared values have a
strong influence on the people in this organization and dictate how they dress, act,
and perform their jobs. This bank develops and maintains a unique culture, which
provides guidelines and boundaries for the behavior of the members of the
organization.
 Communication skills: Learned to make effective communication skill for quick and
efficient service. Communication is very much essential in banking field too.
Customer service Departments (CSD) that deals directly with the customer’s
enquiries, handling complaints and service distribution, it helps to enhance our
interpersonal and communication skills.
 Succession Planning: Succession plan entails evaluating each leader’s skills,
identifying potential replacements both within and outside of the company, and in
the case of internal replacements, training those employees so they’re prepared to
take over. In NMB too, employees in every department know almost everything
 about other departments. Most of the employees in the organization are able to
handle the activities in other departments efficiently in absence of their colleagues.
This scenario has helped employees to develop their skills and knowledge in various
sectors resulting their personal growth & development.

3.2 Success and failure of different product

In the fierce competitive market, needs of customer keep changing. Hence, marketing strategy
must be dynamic and flexible to meet the changing scenario. Among the various products &
services offered by NMB, Current Account and Call Account is most popular while opening
account of institution, firms, and an organization and Umanga Bachat Saving Account is most
popular among new account openings because it fulfills expectation of higher interest rate along
with delight ATM card and free DMAT account for the first year. NMB Talab Khata is popular
among businesses to prefer to pay their employees using this scheme. Other than that most of the
accounts are from the previous Om Development Bank.

In case of loan, overdraft loan has huge market as business loan and loans like Home loan, Auto
loan are also popular in this branch because most of people near this area taking such types of
loan. Other types of loan like Home Loan, Education Loan, Mortgage Personal Loan, loan
against Shares & Debentures Loan against Gold & Silver, Loan Against Fixed & Recurring
Deposit Receipt, Loan Against Government Securities, Project Loan, Bridge Gap Loan,
Consortium Loan, Small & Medium Entrepreneur Loan are not successful because of its low use
among customers and some of the loans carries higher interest rate while some of the loan
requires large number of documents.

The Core Banking System adopted by the bank has been a great success in operating daily
activities of the bank as well as it has helped to securely record and retrieve the data easily.

3.3 Major Competitors of the Organization

The banking business is highly competitive, and experience strong competition from other
financial institutions. Financial institutions compete with commercial banks, credit unions,
saving and loan associations, mortgage banking firms, customer finance companies, securities
brokerage firms, insurance companies, money market funds and other financial institutions.

Since MBNL is a commercial bank and its one of the competitors are other commercial banks
List of competitors commercial banks established in Tandi are as follows:

1. Nepal Bank Ltd.

2. Rastriya Banijya Bank Ltd.

3. Nabil Bank Ltd.

4. Everest Bank Ltd.

6. Himalayan Bank Ltd.

7. Nepal SBI Bank Ltd

11. Machhapuchhre Bank Ltd

12. Kumari Bank Ltd.

13. Laxmi Bank Ltd.

14. Siddhartha Bank Ltd

15. Agriculture Development Bank Ltd

16. Sunrise Bank Ltd

18. NMB Bank Ltd.

19. Civil Bank Ltd.

20. Century Commercial Bank Ltd.

21. Gobal IME Bank

22. NIC Asia Bank

3.4 Future prosepects of MBNL
The economic landscape of Nepal is changing; NMB is best positioned for growth as never
before. Our rivers boast of energy untapped, yet our villages linger in darkness. Our farmers
struggle to make ends meet when all they need is mechanization in farming techniques. As
pertinent is the importance of inculcating the importance of individual savings, minimizing
expenses and channeling savings and deposits towards larger capital formation and reducing
imports eventually. With 51.48% of women accounting for the total population, empowering
women to succeed as entrepreneurs would craft the makings of a truly new Nepal.

NMB’s current position in its trailblazing history of close to 25 years, it has historically been
able to see beyond what seems ordinary and able to harness those opportunities. NMB believes
in seeing beyond the obvious and that precisely has been the catalyst of its success. The
campaign seeks to translate our values and beliefs to bring to every Nepali the assurance that
Nepal has opportunities for each one of us and NMB is there to support in materializing those
opportunities and succeed.

The Bank’s philosophy of Sustainable Banking is manifested in its project undertakings

encompassing Renewable Energy, agriculture, SME, Retail, women entrepreneurship and the
importance of financial literacy in capital growth, have been featured in the campaign. These
core areas are intrinsic for long term sustainable development of the economy and bodes well for
the future of NMB Bank.

3.5 SWOT Analysis of NMB (Tandi Branch):

A strategic plan or mission for the future begins with an assessment of the current situation in
which the organization exists. The organization has to analyze the potential strengths to gain
competitive advantage. It helps to predict the possible opportunities to capture the possible gains
and advantages for growth and development. SWOT comprises of strengths and weaknesses
which are the internal factors and opportunities and threats which are the external factors that
affect the organization.

Strengths

 Goodwill in the market

  Strong corresponding bank network
 Widely spread branch network across the major cities
 Very good in compliance and internal operations.

Weaknesses

 Long procedures for lending to clients.

 Services provided are mainly centralized in urban areas and services in rural area are
lacked.
 Increasing non-performing loan
 Low interest rates to generate further resources

Opportunities

 Growing urbanization
 Expanding saving habit of household
 Potential to expansion of branches
 Increasing remittance market.

Threats

 Increasing number of commercial banks

 Sluggish economic growth
 Political interference
 Unhealthy competition
 Conclusion and Recommendation
4.1 Conclusions
NMB Bank Limited has been able to establish itself as an institution highly utilizing available
skill, manpower and capital for the establishment, operation, development, expansion of
productive business in Urban & Rural areas and it assists on job creation and poverty elimination
through supply of financial instrument, technical and professional consultancy & trainings.
The Bank’s philosophy of Sustainable Banking is manifested in its project undertakings
encompassing Renewable Energy, agriculture, SME, Retail, women entrepreneurship and the
importance of financial literacy in capital growth. These core areas are intrinsic for long term
sustainable development of the economy and bodes well for the future of NMB Bank.
It was an opportunity to get an insight of core operation of the organization in the complex
business environment, working with diverse mix of staff from different background and from
different works of life with profound knowledge provided an experimental and holistic learning
experience.
The theoretical knowledge gained about the customer relation was actually implemented in the
practical banking settings. This internship program has greatly helped me in getting the actual
insight of the banking environment.
In conclusion, it can be conveyed that communication skills are very much essential for CSD. It
is very sensitive department because CSD faces different customers each day and need to talk
politely. Credit department is also very much essential and perform the major sources of revenue
generation for banks. Deposit products providing high interest rate attract the customers and it
encourages to deposit. NMB still is moving on with its innovative ideas and excellent service in
providing loans and collecting deposits.
Hence, the bank must analyze such factors to gain success in the future period through fulfilling
customer’s needs and demands.

4.2 Suggestions
With reference to the findings and the conclusion drawn out above following recommendations
can be sorted out:
 Training has to be given to employees so that they are able to understand the way
their work has to be done.
 As performance of any organization is based on team work so the organization is
supposed to conduct different entertaining activities for its employees. This will
able to strengthen the bond in between them resulting high productivity and
efficiency.
 A customer is the first priority so they need to be given more attentions and
complaints of the customer should be promptly responded.
 This branch can perform effectively and efficiently if head office fulfills the staff
requirements.
 It is more beneficial to this branch if head office provides ATM machine as there
is no ATM of NMB in Tandi.
 Detail information regarding the use of service and product should be given to the
customer prior to its use.