project report on bank of asia

Chapter 1

INTRODUCTION

1.1 BACKGROUND

Bachelor of Business Administration (BBA) is a dynamic and professional program,

which includes internship training in 8th semester as prescribed by Tribhuvan University

(TU). This report has been prepared for the partial fulfillment of the BBA course based

on eight weeks internship training in the selected organization. This report provided us to

analyze the practical implications of the theoretical aspects learned during BBA program

and to gain a professional experience as an employee in a leading organization of Nepal.

So, the internship is included in the curriculum.

This report has been prepared on the basis of activities and observations got from the

Customer Service Department (CSD) during the internship period. The report is

concerned to the Customer service part of Bank of Asia Nepal (BOAN) as responsibility

and work assigned by the staffs of BOAN for the period of internship in Customer

Service Department (CSD).

An internship is a work-related learning experience for individuals who wish to develop

hands on work experience in a certain occupational field. Most internship is temporary

assignments that last approximately three months up to a year.

Moreover, an internship is a position which allows a student to gain professional

experience in an occupational area they are considering. Typically the experience has a

level of responsibility that allows a student to develop new skills in the field and offers

the student training and supervision that facilitates learning.

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1.2 OBJECTIVE OF THE STUDY

The main objective of internship is to analyze the practical implication of the theoretical

aspect learnt during BBA program. The other specific objectives of the reports are as

flows:

To develop managerial and interpersonal skills to tackle real life problems arising

in the organization

To acquire good work habit

To acquire the practical knowledge of the things we have learned theoretically

To fulfill the partial requirement i.e. equivalent to 6 credit hours of the BBA

program

To provide an overview of banking and BOAN in practical

Understand the Scenario of customer service in the BOAN

1.3 METHODOLOGIES

1.3.1 Selection of organization

BOAN is one of the Service organizations in our country. There are various issues and

challenges regarding the Customer Service and the employees of BOAN, which was the

right choice for me to learn the working environment and with the help of which I could

prepare my report on Customer Service policies. I selected the bank as a place for

internship because I have always considered it as a private sector financial institution

with variety of activities and large customer base.

1.3.2 Placement

Regarding the placement, I was sent to BOAN at Dillibazar branch. I was placed to

Customer Service Departments of BOAN within 9 weeks; so that I could have overall

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knowledge of Customer service related activities in the bank. Within 9 weeks, I learned

to be familiarized in a new environment and working procedures of CSD.

1.3.3 Duration

The duration of internship was of 9 weeks started from 17 May 2010 and ended at 16

July 2010 that is the main basis of writing this report. The work done during this period

provided the experience to find out many things about BOAN and its CSD especially.

During 9 weeks spent on CSD for internship i.e. including marketing research I learned a

lot about what activities to be conducted in detail to provide quality and efficient

Customer service to compete in this competitive environment where many similar

organizations are providing familiar kind of services for the same group of Customer.

1.3.4 Activities Performed During Internship

Internship program is the practical experience based on the classroom-oriented

theoretical knowledge on the actual workplace. During the period of internship various

activities and tasks assigned by the staffs of CSD were performed. The assigned

activities and tasks of CSD are:

Opening and closing the account of the customers by traditional method and

recording them in finacle providing balance certificate and bank statement to the

customers Issuing Cheque books and Debit cards to the customers.

Providing i-touch service

Providing excess to e- banking facility to the customers.

Handling petty cash.

Maintaining stationary and requisition.

Use of photocopy and fax machines.

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Helped to increase the number of accounts through marketing of product of

BOAN

Dealing with various types of customer and receiving their suggestions and

handling their complaints

Helped the customer to fill the form of right share and recording them in excel.

Maintaining the traditional filing system and also classifying the files as per the

product of BOAN in systematic order.

1.3.5 Sources of Data and Information

PRIMARY SOURCES

Survey conducted with the customers

Interview conducted with Mr. Yug Basnet (Branch manager of Dillibazar)

Interview conducted with Mr. Naresh Bhattarai (Head of Operation Of

department)

Interview with other staffs.

SECONDARY SOURCES

Annual Report of Bank of Asia Nepal

www.bankofasia.com.np (web site of the BOAN)

Brochures and Pamphlets of Bank of Asia Nepal

Application Forms for different Kinds of deposits

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Chapter Two

ANALYSIS OF THE INDUSTRY

2.1 THE ORIGIN AND USE OF BANKS

The Word ‘bank’ is derived from the Italian word ‘banko’ signifying a bench, which was

erected in the market-place, where it was customary to exchange money. The Lombard

Jews were the first to practice this exchange business, the first bench having been

established in Italy A.D. 808. Some authorities assert that the Lombard merchants

commenced the business of money-dealing, employing bills of exchange as remittances,

about the beginning of the thirteenth century.

About the middle of the twelfth century it became evident, as the advantage of coined

money was gradually acknowledged, that there must be some controlling power, some

corporation which would undertake to keep the coins that were to bear the royal stamp

upto a certain standard of value; as, independently of the ‘sweating’ which invention

may place to the credit of the ingenuity of the Lombard merchants- all coins will, by

wear or abrasion, become thinner, and consequently less valuable; and it is of the last

importance, not only for the credit of a country , but for the easier regulation of

commercial transactions, that the metallic currency be kept as nearly as possible up to the

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legal standard. Much unnecessary trouble and annoyance has been caused formerly by

negligence in this respect.

The gradual merging of the business of a goldsmith into a bank appears to have been the

way in which banking, as we now understand the term, was introduced into England; and

it was not until long after the establishment of banks in

other countries-for state purposes, the regulation of the coinage, etc. That any large or

similar institution was introduced into England. It is only within the last twenty years

that printed cheque has been in use in that establishment. First commercial bank was

Bank of Venice which was established in 1157 in Italy.

2.2 NEED AND IMPORTANCE OF BANK

The importance of banks can be summarized in to following categories:

2.2.1 For Economic Development:

Banks can contribute to a country’s economic development in the following ways: -

Capital formation,

Encouragement to entrepreneurial innovations,

Influencing economic activity,

Implementation of monetary policy,

Promotion of trade and Industry

2.2.2 For Mobilization of Funds

Bank accepts the saving.

Provide loan to other who will be able to utilize the amount properly.

Remittance of fund

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To provide Loan at Lower rate

Issue of Letter of credit

Agency Activities

Miscellaneous Services

2.3 EARNINGS BY BANK

Banks basically earn through the gap between the interest rate charged and received by

the bank. It charges interest rate of the money lended as loan and pays interest on the

deposits. Figure1 explains this concept:

Fig.1. How banks earn.

2.3.1 Growth of the Earnings

The amount of money that banks can lend is directly affected by the reserve requirement

set by the Federal Reserve. The reserve requirement is currently 3 percent to 10 percent

of a bank's total deposits. This amount can be held either in cash on hand or in the bank's

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http://money.howstuffworks.com/fed.htm

reserve account with the Fed. To see how this affects the economy, think about it like

this. When a bank gets a deposit of $100, assuming a reserve requirement of 10 percent,

the bank can then lend out $90. That $90 goes back into the economy, purchasing goods

or services, and usually ends up deposited in another bank. That bank can then lend out

$81 of that $90 deposit, and that $81 goes into the economy to purchase goods or

services and ultimately is deposited into another bank that proceeds to lend out a

percentage of it.

Fig 2. Growth of banks earnings

2.4 GLOBAL TREND

The banking industry worldwide is being transformed. The global forces for change

include technological innovation; the deregulation of financial services at the national

level and opening-up to international competition; and - equally important - changes in

corporate behavior, such as growing disintermediation and increased emphasis on

shareholder value. In addition, recent banking crises in Asia and Latin America have

accentuated these pressures. The banking industries in central Europe and Latin America

have also been transformed as a result of privatizations of state-owned banks that had

dominated their banking systems in the past. The implications of these developments

were considered by a small group of senior central bankers at the BIS during a two-day

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meeting in December 2000. Key data on banking systems in the emerging and advanced

economies confirm these trends.

2.4.1 Forces for Change

This section provides an overview of some of the main forces shaping the banking

industry in the emerging market economies in recent years. The approach followed is

eclectic and no attempt is made to assign weights to the different forces for change that

are identified. The reason for such an approach is simple: banking, like other economic

activities, is in the midst of rapid - many would argue historic - structural change driven

by the development and application of new information technology (IT). Because the

core area of this technology is information processing - which also lies at the heart of

financial intermediation - and because the development and use of IT are bound to

continue (regardless of the movement in new technology stock indices), it is still far too

early to grasp where exactly the banking industry is headed. At least three other forces

underlie recent changes in the emerging economies. Banking industry: domestic

deregulation and external opening-up of financial sectors, changes in corporate behavior

and banking crises.

2.4.1.1. Deregulation and Opening-up to Foreign Competition

Banking in the emerging economies was traditionally a highly protected industry, living

off good spreads achieved on regulated deposit and lending rates and pervasive

restrictions on domestic and foreign entry. For many years, there was little pressure to

disturb this cozy and wasteful world. However, global market and technology

developments, macroeconomic pressures and banking crises in the 1990s have forced the

banking industry and the regulators to change the old way of doing business, and to

deregulate the banking industry at the national level and open up financial markets to

foreign competition. As a result, borders between financial products, banks and non-bank

financial institutions and the geographical locations of financial institutions have started

to break down. These changes have significantly increased competitive pressures on

banks in the emerging economies and have led to deep changes in the structure of the

banking industry.

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2.4.1.2 Technology

According to conventional wisdom, new information technology is not at present likely

to impinge much on the development of the banking industry in the emerging economies,

which remain technologically behind the industrial countries. For example the low level

of penetration in most emerging economies means that the internet is not seen as a threat

to traditional banks. Given the signs of a possible bursting of the e-banking bubble in the

United States and Europe, some have also argued that the issue of electronic banking

may go away before the emerging markets need to worry about it. This conventional

view can be challenged on several grounds. As noted above, the major issue about new

IT is its impact on the processing of information, which is the very essence of the

banking business. Perhaps the most significant innovation has been the development of

financial instruments such as derivatives that enable risk to be reallocated to the parties

most willing and able to bear that risk, thereby inducing more investment in real assets

and fostering the development of banking and financial markets in general. The use of

such instruments is not the preserve of industrial countries; with their increasingly

sophisticated IT applications, banks in the emerging economies use new financial

instruments daily in their transactions. Likewise, the potential for rapid development of

commercial banking functions offered by alternative delivery channels such as ATMs,

debit cards, telephone, internet and electronic banking should not be underestimated.

2.4.1.3. Changes in Corporate Behavior

The spread of information technology has affected the banking industry both directly,

through IT applications in risk management and marketing of financial products, and

indirectly, through its impact on corporate behavior and the development of financial

markets, especially in the area of financing new capital investments. This impact is most

clearly felt in the case of technology firms, which are more or less forced to turn to

capital markets to finance their projects because banks are not prepared to deal with the

high level of uncertainty associated with the development of new technologies.

However, disintermediation is not limited to new economy firms; it is also beginning to

be felt in the more traditional old economy sectors. Bonds outstanding (in domestic and

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international markets combined) have risen strongly in almost all emerging economies

over the past few years, and are now more important than borrowing from domestic

banks in some of them . Many large firms can now raise funds by issuing securities more

cheaply than they can borrow from banks. Indeed, many large companies can borrow

more cheaply in the capital markets than the banks themselves, given their better credit

ratings. Non-bank funding sources are not open to all companies, in particular small and

medium-sized firms. Another implication of these developments is that commercial

banks in bank-centered financial systems can no longer maintain their traditional, close

relationships with corporate customers.

2.5 ORIGIN OF BANKING IN NEPAL

Nepal's first commercial bank, the Nepal Bank Limited, was established in 1937. The

government owned 51 percent of the shares in the bank and controlled its operations to a

large extent. Nepal Bank Limited was headquartered in Kathmandu and had branches in

other parts of the country. There were other government banking institutions. Rastriya

Banijya Bank (National Commercial Bank), a state-owned commercial bank, was

established in 1966. The Land Reform Savings Corporation was established in 1966 to

deal with finances related to land reforms. There were two other specialized financial

institutions. Nepal Industrial Development Corporation, a state-owned development

finance organization headquartered in Kathmandu, was established in 1959 with United

States assistance to offer financial and technical assistance to private industry. Although

the government invested in the corporation, representatives from the private business

sector also sat on the board of directors. The Co-operative Bank, which became the

Agricultural Development Bank in 1967, was the main source of financing for small

agribusinesses and cooperatives. Almost 75 percent of the bank was state-owned; 21

percent was owned by the Nepal Rastra Bank and 5 percent by cooperatives and private

individuals. The Agricultural Development Bank also served as the government's

implementing agency for small farmers' group development projects assisted by the

Asian Development Bank and financed by the United Nations Development program.

The Ministry of Finance reported in 1990 that the Agricultural Development Bank,

which is vested with the leading role in agricultural loan investment, had granted loans to

only 9 percent of the total number of farming families since 1965. Since the 1960s, both 11

commercial and specialized banks have expanded. More businesses and households had

better access to the credit market although the credit market had not expanded.

Nepal Rastra Bank was created in 1956 as the central bank. Its function was to supervise

commercial banks and to guide the basic monetary policy of the nation. Its major aims

were to regulate the issue of paper money; secure countrywide circulation of Nepalese

currency and achieve stability in its exchange rates; mobilize capital for economic

development and for trade and industry growth; develop the banking system in the

country, thereby ensuring the existence of banking facilities; and maintain the economic

interests of the general public. Nepal Rastra Bank also was to oversee foreign exchange

rates and foreign exchange reserves.

Prior to the establishment of Nepal Rastra Bank, Kathmandu had little control over its

foreign currency holdings. Indian rupees were the prevalent medium of exchange in most

parts of the country. Nepalese currency was used mostly in the Kathmandu Valley and

the surrounding hill areas. Beginning in the 1960s, the government made special efforts

to use Nepalese currency inside the country as a medium of exchange. It was only after

the signing of the 1960 Trade and Transit Treaty with India that Nepal had full access to

foreign currencies other than the Indian rupee. Prior to the treaty, all foreign exchange

earnings went to the Central Bank of India. As a result of the treaty, the government had

to separate Indian currency (convertible currency because of free convertibility) from

other currency. In the context of Nepal having adopted an open economy, an excessive

level of liquidity will initially exert reassure on the balance of payments and foreign

exchange reserve and subsequently cause adverse effects on the domestic price situation.

Thus, it will be necessary to maintain a balanced monetary position to attain the

economic growth rate envisaged in the plan. The sustainable economic growth can only

be achieved if the monetary balance is maintained.

2.6 COMMERCIAL BANKS

A commercial bank is a financial institution which collects saving from many persons

and institutions and provides credit or loan facility to different industrial and commercial

business. Commercial banking business consists of changing cash into hank deposit and

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bank deposit into cash, transferring bank institution to other, giving bank deposit in

exchange for Cheque, Bills of exchange, government securities etc. Nepal Bank Limited

established in 2013 BS is the first commercial bank in Nepal. Commercial banks perform

various functions. Among them accepting various types of deposit is the main faction of

commercial banks.

S.No Name of Commercial Bank Date of Establishment Head Office

1 Nepal Bank Ltd 1937/11/15 Kathmandu

2 Rastriya Banijiya Bank 1966/01/23 Kathmandu

3 Nabil Bank Ltd. 1984/07/16 Kathmandu

4 Nepal Investment Bank Ltd. 1886/02/27 Kathmandu

5 Standard Chartered Bank 1987/01/30 Kathmandu

6 Himalayan Bank Ltd 1993/01/18 Kathmandu

7 Nepal SBI Bank Ltd. 1993/07/07 Kathmandu

8 Nepal Bangladesh Bank Ltd. 1993/06/05 Kathmandu

9 Everest Bank Ltd. 1994/10/18 Kathmandu

10 Bank of Kathmandu Ltd 1995/03/12 Kathmandu

11 NCC Bank Ltd 1996/10/14 Kathmandu

12 Lumbini Bank Ltd. 1998/07/17 Chitwan

13 NIC Bank Ltd 1998/07/21 Morang

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14 Machhapuchhre Bank Ltd. 2000/10/03 Pokhara

15 Kumari Bank Ltd. 2001/04/03 Kathmandu

16 Laxmi Bank Ltd 2002/04/03 Birgung

17 Siddhartha Bank Ltd. 2002/12/24 Kathmandu

18 ADBL 1968/10/19 Kathmandu

19 Global Bank Ltd. 2007/01/02 Parsa

20 Citizens Bank Int’ Ltd. 2007/06/21 Kathmandu

21 Prime Commercial Bank Ltd 2007/09/24 Kathmandu

22 Sunrise Bank Ltd. 2007 Kathmandu

23 Bank of Asia Ltd 2007 Kathmandu

24 DCBL Bank Ltd. 2001/02/01 Kathmandu

25 NMB Bank Ltd. 2008/05 Kathmandu

26 KIST Bank Ltd 2009/05/07 Kathmandu

27 JANTA Bank Nepal Ltd 2010 Kathmandu

28 Mega Bank 2010 Kathmandu

Table 1: Lists of Licensed Commercial Banks in Nepal (till 2010)

CHAPTER 3

INTRODUCTION OF ORGANIZATION

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3.1 INTRODUCTION OF BOAN

Bank of Asia Nepal Limited is the 22nd commercial bank of Nepal. It is incorporated

under the companies Act 2063 as 'A' Class financial institution. It started its full-fledged

commercial operations from 12th October 2007 from its registered office at

Tripureshwor, Kathmandu. The bank has shown enormous growth in just 2 years and 11

months of time from its operation which is proved by its latest financial highlights as

shown below:

Brief highlights of the financial position of the Bank as of mid-July 2010 are as under:

Deposits Figures in NPR Million

Deposit 12480

Loan and Advances 11107

Investments 2415

Operating profit before Provision 371

Net Profit 208

TABLE 2: Financial Highlight of BOAN

BOAN provides a full range of commercial banking services through its outlets spread

across the nation. Moreover, BOAN has a good name in the market for its highly

personalized services to the customers.

In an economy, driven by appetite for success BOAN is “GROWING TOGETHER” by

creating, unique and new products and helping customer grow along with it. The bank is

founded by very good entrepreneurs and it understands the need of growing economy.

A team of seasoned banking and management professionals have dedicated themselves

to establishing an institution determined to cater the needs of all, be it small or big. The

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bank believes that the customer’s aspirations are their benchmark and they will always

be “GROWING TOGETHER” as their motto.

BOAN is managed by a team of experienced bankers and professionals having proven

track record, can offer what customers are looking for. BOAN is sure that customer’s

choice of a bank will be guided among other things by its reliability and professionalism.

BOA has 29 branches as of date. The branch has been established in some of the major

cities of Nepal so as to reach almost every corner and maximum customers. Through its

branch network, RBB has been contributing to Nepal's economic development by

providing banking services throughout the country. The head office of the bank is

located in Tripureshwor in Kathmandu.

3.2 CORPORATE, VISION AND MISSION OBJECTIVE OF BOAN

3.2.1 Vision Statement

“To be one of the preferred banks by growing together with all the stakeholders”

3.2.2 Mission Statement

To deliver a wide range of prompt and quality services in order to consistently achieve

sound performance through collaborative partnership at all levels, high standards of

governance, optimization of information technology and effective network.

3.3 STRATEGIC OBJECTIVE OF BOAN

To develop a customer oriented service culture with special emphasis on

customer care and convenience

To increase our market share by following a disciplined growth strategy

To leverage our technology platform and open scalable systems to achieve cost-

effective operations, efficient MIS, improved delivery capability and high service

standards

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To develop innovative products and services that attracts our targeted customers

and market segments

To continue to develop products and services that reduces our cost of funds

To maintain a high quality asset portfolio to achieve strong and sustainable

returns and to continuously build shareholders’ value

To explore new avenues for growth and profitability

3.4 FOCUS

The main objective in the near term would be to protect revenue lines by providing

solutions to the customers through value added and structured products at competitive

pricing. The bank focuses on the following plans:

The bank has a Vision

It focuses on product quality and service excellence which has helped it garner

the appreciation of national organizations

It focuses on ensuring that their corporate responsibility aspirations are aligned

with their business strategy

It is maintaining good credit quality portfolio for tourism related industries

It focuses on the Consumer Banking

The bank uses software developed by Infosys, India (Finacle) for the operation of all the

major activities of BOAN. For immediate communication and problem solving among

staffs in the inter branches as well the departments BOAN uses the facility of “spark”.

Also branches of BOAN are inter-connected through Finacle and i-zone as a part of it

where all the recent activities and news related to bank are updated daily.

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3.5 CAPITAL STRUCTURE: The capital structures of BOAN consist of:

Fig 3: Capital structure

3.6 PRODUCT AND SERVICE PROVIDED BY BOAN

3.6.1 DEPOSIT PRODUCT

1. Dhanbarsa Fixed Deposit

2. Dhanbarsa Bachat Khata

3. BOA Samunnati Muddati

4. BOA shareholder’s Deposit

5. BOA Nari Shakti Bachat Khata

6. BOA 50+

7. BOA Karmachari Bachat Khata

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8. Current-Call Deposit

9. Fixed Deposit

10. Sulav Bachat

11. Sambridhi Bachat

12. Little star

1. Dhanbarsha Fixed Deposit:

This product is targeted to capture the deposit of both individuals as well as institutions

saving by providing high interest and monthly interest payment.

Minimum balance Rs.100000

Time period 1-3 years

Interest rate 12% monthly basis

TABLE 3: BOA Dhanbarsa Fixed Deposit

Special Features

Free SMS/Internet Banking/ ABBS facility/50% discount on Locker Security

Deposit

Nepal telecom Mobile/ Landline bill payment facility

2. BOA Dhana Barsa Bachat

The interest rate of this product has positive relationship with the amount of the fund

customer deposit in this account (i.e. higher the deposit amount higher will be the

interest

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Amount % P.A on Daily Basis

Up to NPR 100,000/- 6.00%

Above NPR 100,000/- to NPR 250,000/- 6.50%

Above NPR 250,000- to NPR 500,000/- 7.00%

Above NPR 500,000/- to NPR 1000,000/- 7.50%

Above NPR 1000,000/- to NPR 2500,000/- 8.00%

Above NPR 25,000,000/-to NPR 5000000/- 8.50%

Above NPR 5000,000/-to NPR 10,000,000/- 9.00%

Above NPR 10,000,000/ to NPR 20,000,000/- 9.50%

Above NPR 20,000,000/- 10.00%

Table 4: BOA Dhanbarsa Bachat

General Features: The general features of BOA Dhanbarsha Bachat are as follows:-

Minimum Deposit: Rs. 5000

Special Features:

The special features BOA Dhanbarsha Bachat of are as follows:-

Interest will be calculated on a daily balance maintained in the a/c

Free ATM Card (*free-1st year annual fee)/ NTC bill payment service

Free SMS/Internet Banking/ inward remittance/ ABBS facility/

50% discount on security deposit locker/ Unlimited withdrawal/deposit

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Cheque book on demand (10 leaves per cheque book)

Account statements on demand

3. BOA Samunnati Muddati:

This product is fixed deposit with modification on the previous fixed deposit product

launched which target towards the customer group who prefer high interest and ready to

sacrifice the facility of withdrawing money on demand.

General Features: The general features of BOA Samunnati Muddati are as follows:-

Minimum Balance NPR 100,000.00

Interest Rate 10.25%

Maturity period 1 year

TABLE 5: BOA Samunnati Muddati

Special Features: The special features BOA Samunnati Muddati of are as follows:-

Free SMS/ internet banking/ Inter-banking transaction

50% discount on Locker Security Deposit

4. BOA Shareholder's Account:

This product is intended for BOA shareholders and their family members. This product

is designed for customer who owns the share in the bank. In order to open the account of

the family member shareholders are required to produce their original BOA share

certificate or allotment advice to the bank for verification along with self-declaration of

family member relationship.

General Features:The general features of BOA Shareholder's Account are as follows:-

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Interest Rate 7% p.a. On Daily Balance

Interest Capitalization Quarterly

TABLE 6: BOA Shareholders Account

Special Features: The special features of BOA Shareholder's Account are as follows:-

On demand Cheque book/ account statement

Free inward remittance/ Good For payment / ATM card/ SMS-internet banking

Free ABBS facility/ Unlimited withdrawal-deposit

5. BOA Nari Shakti Bachat Khata:

This product is targeted towards the female population of society. This product is one of

the successful products of BOA as it was able to generate major retail deposit to the bank

due to its high interest.

General Features:The general features of BOA Nari Shakti Bachat Khata are as

follows:-


Interest Rate 7% p.a. On Daily Balance


TABLE 7: BOA Nari Bachat

Special Features: The special features of BOA Nari Shakti Bachat Khata are as

follows:-

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On demand cheque book/ demand account statement/ Unlimited withdrawal-

deposit

Free inward remittance/ SMS/internet banking/ ABBS facility

Free ATM card and Unlimited withdrawal-deposit/ Good For payment

6. BOA 50 +:

This product is targeted to the senior citizens who are of age 50 and above. All

residential individuals in the age group of 5 years and above are eligible to open

this account. In case of joint accounts, one of the applicant has to be a senior

citizen and his/her age 50 and above.

General Features: The general features of BOA 50 + are as follows:-


Interest Option 1: 8.50% (Monthly Interest Capitalization)

Option 2: 9.00% (Interest Payment at Maturity)

Eligibility: 50 ears and above

TABLE 8: BOA 50+

7. BOA Karmachari Bachat Khata:

There are still a large number of Service- Holders in both government sectors but also in

the private sector. It caters service to this section of people BOA Karmachari Bachat

Khata.

General Features:The general features of BOA Karmachari Bachat Khata are as

follows:-


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Interest Rate 5.5% p.a. On Daily Balance


TABLE 9: BOA Karmachari Bachat khata

Special Features:The special features of BOA Karmachari Bachat Khata are as

follows:-

On demand Cheque book/ Account statement

Free inward remittance/ ATM card/ Good for payment

Free SMS/internet banking/ ABBS facility

25% discount on DD issuance/ 50% discount on security deposit locker

8. Current-Call Deposit:

This product is focused towards providing additional benefit to the customer especially

business client by providing return to their savings. Current account does not provide any

interest and NRB directives restricts to open saving accounts for the company, Call

account is introduced to provide the additional benefit to such clients by its unique

feature. After business hour all the balance over minimum balance (i.e. NPR 10,000 in

case BOAN) from current account will be automatically transferred to the call account

and next working day again the same amount will be automatically transfer to the current

account. Hence the customer will be able to earn the interest in current account by

opening a call account.

The features of Current-Call Account are as follows:-

Up to 7.50%

Any Branch Banking

9. Fixed Deposits:

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This product is targeted towards the customer group who prefer high interest and ready

to sacrifice the facility of withdrawing money on demand. Further this product allows

customer to diversify their portfolio to best suite their investment plan.

This deposit provide following interest rate according to the time period as given below:

Time period Interest Rate

1 Months 5.00%

3 Months 6.00%

6 Months 7.00%

1 Year - 2 Years 8.00%-8.5%

Above 2 Years – 5 Years Upto 9%

Above 5 years Negotiable

TABLE 10: BOA Fixed Deposits

10. Sulav Bachat:

This product is mainly targeted towards the general public where the minimum balance

is not the limitation.

The general features of Sulav Bachat are as follows:-

Minimum Balance Zero

Interest Rate 5.0% On Daily Balance

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Interest Capitalization: Quarterly

TABLE 11: Sulav Bachat

Special Features: The special features of Sulav Bachat are as follows:-

On demand Cheque book/ Account Statement

Free inward remittance/ ATM card/ SMS-internet Banking/ ABBS facility

Unlimited withdrawal/deposit

Appropriate for stock market investment

11. Sambridhi Bachat:

This product is initially lunch to focus towards the interest sensitive customer and

provides high interest rate for deposit amount above NPR 50000.

General Feature:The general features of Sambridhi Bachat are as follows:-


Interest 6.0% p.a. On Daily Balance (Above NPR 50,000.00)


TABLE 12: Sambridhi Bachat

Special Features: The special features of Sambridhi Bachat are as follows:-

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Free inward remittance/ ATM card/ SMS-internet Banking/ Good for

payment/ABBS

25% discount on TC issuance / Unlimited withdrawal/deposit

12. Little Star:

This product is targeted to the customer group with children by creating the need of

savings for their children future.

General Features: The general features of Little Star are as follows:-


Interest Rate 6.0% p.a. On Daily Balance


TABLE 13: Little Star

Special Features: The special features of Little Star are as follows:-


Free inward remittance/ ABBS facility/ SMS/internet banking

Unlimited withdrawal/deposit

3.6.2 SERVICE PROVIDED BY BOAN

1. I-touch- web based service:

It is also called internet banking. The customer can make the i-touch account for free

after being the customer of BOAN. Itouch is our full-fledged Internet Banking

application which allows our customers (account holders) to do the following banking

27

activities through the Internet. Hence can see the account balance and do other kind of

below mentioned activities:

Special Features

NTC Post-Paid/Pre-Paid mobile bill payment

Fund Transfer

Balance Inquiry

Full/Mini Statement

Account Summary

Cheque Stop Payment

2. M-ALERT:

This service is also provided by BOA for free. After taking this service the customer can

make the balance enquiry through one SMS. Subscription to this service allows

customers to receive SMS notifications to their mobile phone of debit and/or credit

transactions in their account.

3. E-ALERT:

Subscription to this service allows customers to receive email notifications of debit

and/or credit transactions in their account. It is an e-mail based service.

4. Itouch - Mobile Banking:

Itouch is our full-fledged Mobile Banking application which allows our customers

(account holders) to do the following banking activities through the SMS.

Funds Transfer to another account of the Bank

28

NTC Prepaid Recharge

NTC Post Paid Mobile Bill Payment

Enquiry functions

5. eSewa – Services:

Bank has tied up with eSewa Payment Gateway to give eWallet services to the

Customers and noncustomers. Anyone can sign up the services with eSewa online using

their website and get the registered ID of eSewa. Now anyone who has account with the

bank can load the amount into that ID and do the transactions such bill payments, online

shopping, and do interbank fund transfer among member banks of eSewa.

Funds Transfer to another account of the Bank

NTC Prepaid Recharge

NTC Post Paid Mobile Bill Payment

Enquiry functions

6. Safety Lockers:

Safe deposit lockers are strong metal cabinet kept inside vault room of a bank with the

purpose of renting for keeping their valuables. We have seven different sizes of Lockers,

the charges depends on the size.

7. Debit Card:

BOA Easy Cash Card service is a third party services from Smart Choice Technologies

P. Ltd. (SCT). Card can be used at various ATM and PoS locations under the network of

SCT. There are more than 200 ATMs and 1000 PoS terminals and 1000 ATMs of Punjab

National Bank in India where SCT debit cards are accepted.

BOA Easy Cash Card is FREE and available instantly from all our branch locations.

29

8. BOA - Life Insurance:

BOAN also provides the service of life insurance of NLIC and the insurer can pay the

premium through the branches of BOAN.

Special Features

Any Life Insurance product of NLIC can be purchased from any of the branches.

Easy Procedure.

Renewal premiums can be paid automatically through account maintained

9. Remittance and Travel Services

9.1 Foreign Currency Drafts:

We issue/collect foreign currency draft for payments made to foreign parties in the

following currencies - Indian Rupee (INR), US Dollar (USD), Pound Sterling (GBP),

and the EURO (EUR)

9.2 SWIFT Transfers:

SWIFT transfers are inter-bank transfers that can be used make payments to an account

of a local or foreign beneficiary electronically. Customers (account holders) can receive

payments from foreign banks using our SWIFT facility. The 8-character swift code of

our bank is BOALNPKA

3.7 SWOT ANALYSIS

30

None of the organizations is perfect in each and every way. Here are some weaknesses

and threats of the organization. It may have lots of strength to be proud of but besides

with some weakness and threats as well. And the organization does not remain same

forever there will be lots of opportunities in order to expand the transactions.

STRENGTH

The Bank has introduced “Sulav bachat khata” which provide 5% interest in daily

balance with the minimum balance zero.

The bank provides any branch banking to make it easier for customer

The bank provides services like itouch or internet banking as a special service

The bank also provides fixed deposit “Dhanbarsa” with the interest of 12%

WEAKNESS

The bank have very less number of ATM booths

The bank does not provide credit card services

OPPORTUNITIES

A lot of people deposit their fund in this bank due to its skill in attracting people

by adopting attractive policies like high interest rate and prompt services

Staff can perform their work more efficiently with the help of computers. The

environment of the bank is sound which helps to enhance its stall bar its better

profitability.

Due to the increasing demand of customer loan.

THREATS

31

The economic condition of country is deteriorating.

The increasing number of competitors in offering same product.

Unstable regulations and policies of NRB

Chapter 4

ANALYSIS OF ACTIVITIES DONE AND PROBLEM

SOLVED

My internship was set at the Bank of Asia Nepal Limited Dillibazar Branch. It recently

came into operation. BOA Dillibazar had in total three departments namely

CSD

CASH

REMITANCE

CREDIT(Branch Manager)

4.1 Activities inside the Branch (CSD of BOAN Dillibazar Branch)

I started my internship on 15th may 2010 to 16th July 2010.I worked as a part of the

Customer Service Department of General Banking section of the bank for 7 weeks and

also I was send for the marketing purpose for last 2 weeks. The name of the department

itself suggests its own activity. This is customer oriented department, which mainly

focus on providing services and facilities to the customers and potential customers of

BOANL. In this section I worked under the Assistant Officer. In this department I was

supposed to help my in-charge. My job was that to help the client by informing them

about the products, which products give what types of facility, what papers they have to

submit, how to fill the application form know their feedback . They did not give me

serious types of work. They gave me only those types of work in which if I made fewer

32

mistakes that could be corrected easily. It is the department, which provides day-to-day

services to the customers. It opens new accounts and provides Cheque and maintains the

opened account and performs various other functions. The activities and works done

during the internship period were guided, and information regarding CSD work

procedure and practices were provided by the staffs of CSD department.

In this part of the bank, Following are the in brief list of activities that were assigned to

me by the staffs during the period of internship in CSD:

Opening and closing the account of the customers.

Providing balance certificate and bank statement to the customers.

Issuing Cheque books, Debit cards to the customers.

Providing excess to e- banking facility to the customers.

Maintaining stationery and petty cash register

Fixed deposit opening.

Interaction with customers about various products and schemes offered by the

bank

Handle the customer queries as effectively as possible

Complaints of customer

Convince customers to go for high deposit schemes. Convince them to open an

account with certain minimum balance requirement rather than zero balance

Filing and maintaining documents of the customers

As at the time of our internship the BOAN was offering right share so I had to

help customer fill the form and requirement procedure and recording those forms.

4.2 IN DEPTH DESCRIPTION OF JOB PERFORMED

33

4.2.1 Account Opening

This section opens accounts. Selection of customer is very important for the bank

because banks success and failure largely depends on their customers. If customer is bad,

they may create fraud and forgery by their account with bank and thus destroy goodwill

of banks. So, this section takes extreme caution in selecting its customer base.

In the customer service section, basically I learned to open the following types of

accounts.

4.2.1.1 Savings

Savings accounts are for individual savings and this account is necessary to open Deposit

Pension Scheme (DPS), also required for ATM card holders also for issuing Cheque.

4.2.1.2 Current

Current accounts are basically for companies, but sometimes this account can be open

individually for huge amount of money [basically for the valued customers]. The account

opening officer mainly performs the following tasks. At first she requests the customer,

which account he/she/they wish to open. Then she describes the procedures to open the

account. If the customer meets up with the requirements, then the account opening

officer opens an account with the help of the Bank’s computerized system.

4.2.1.3 Fixed

A money deposit at a banking institution that cannot be withdrawn for a preset fixed

'term' or period of time. When the term is over it can be withdrawn or it can be rolled

over for another term. Generally speaking, the longer the term the better the yield on the

money.

Firstly the Types of Accounts i had to open and maintain in the BOA Dillibazar

Branch were as follows:

34

SAVING ACCOUNTS MAINTAINED

Name of Account Characters

Sulav Bachat Generally can be opened by all

Requires no minimum balance with maximum interest

Little star Generally for infants or children’s with minimum balance

zero

Unlimited withdrawal and deposit

Dhanbarsa Bachat

Khata

Encourage people to bring out money stored at homes

provides

Requires minimum balance and the interest rise as the

amount of deposit rises.

BOA Shareholder’s Only the Shareholders of BOAN can open this particular

35

Accountaccount

With a minimum balance of rs.1000 it provides 7% interest

BOA Nari Bachat Specially designed to cater all the women in Nepal

Also provides 7% interest with minimum balance of 1000

BOA Karmachari

Bachat

Generally for all the working professional as well as their

family members

Provides 5.5% interest with minimum balance of Rs.1000

Payroll Account Employees of organization or institution can produce the

product

With the minimum balance of Rs.1000 it provides 7% of

interest rate

TABLE 14: Saving Accounts Maintained

Current and Call Accounts

Current Account Generally opened by businessmen or client

No interest is provided for deposited amount

For daily withdrawal or deposit

Call Account Special account for the clients who have opened current account

in BOAN and wants on the amount.

Requires minimum balance of Rs.10,000 and provides return of

7.5%

TABLE 15: Current and Call Account Maintained

Fixed Account

36

Dhanbarsa Fixed Deposit Can be opened by both individual and institutions that

have idle money with them and wish to receive high

interest rate.

Provides higher rate of interest i.e. 12% in minimum

balance of Rs.100000 calculated on per day balance.

TABLE 16: Fixed Accounts Maintained

Following is an explanation of the regular steps involved in opening a New account

in BOANL

4.3 ACCOUNT OPENING PROCESS:

Step 1 Asking the prospective customer what type of account is desired to be

opened and providing him/her/they the particular account form

Step 2The form is filled up by the applicant himself / herself

Two copies of passport size photographs from individual are necessary

Applicants must submit required documents i.e. citizenship certificate

(in case of little star the birth certificate of the child and citizen of the

nominee)

37

Application must sign specimen signature sheet and give mandate if

necessary and also mention the nominee compulsorily

As per the KYC rule of central bank the page of form full of the

information about the customer must be filled

Introducer’s signature and accounts number must be verified

Step 3 The application form is accepted and verified whether the form is correctly

filled and all required information about the client is received or not

Step 4 Minimum BOAN Bank balance is deposited (zero balance in case of Sulav

Bachat, Nari Bachat and Little Star)

Step 5 Account is opened using a software called FINACLE and the account

number is given to the customer

TABLE 17: Account Opening Process

38

Customer Ask what

he/she wants

Deal the customer

according to their

need/ tell about the

rules and regulation

Check the form and

paper submitted by

the customer

After providing all

inputs it gives us the

account number and

customer Id

Update the form

Give computer input

of the necessary

fields (finacle is

used for this

purpose)

Scan the signature for

further use

Take the authorized

person signature

and file the form

Fig 4: Steps of account opening are explained in the following chart

Special Caution on the documents from the Account opener of the following types

Partnership Firm

Partnership deed must be taken

Mandate from the partners is essential –indicating who will

operate the account

Signature must be done by both partners

39

Give the account

number to account

holder and the

account opening is

completed

Company Account Identification and Passport size photo of authorized signatories

Firm registration certificate

Latest / renewed tax/pan certificate

Obtain MOA and AOA

Board resolution to open account in BOA and authority to

borrow from the bank. Resolution should clearly state the

authorized person’s name who will operate the account

Signature of all the BOD members

Other account Normal procedure as described above to follow

Constitution/ by law as per the nature of business to be

obtained

Satisfy the acceptability of the customer

Account opened by

Illiterate person

Obtain both right and left hand thumb print on the signature

card instead of the signature

Special instruction should be noted in such accounts that the

person opening the account is an illiterate person

For every withdrawal the account holder him/herself must be

present at the bank counters and affix thumb print on

withdrawal slip

TABLE 18: Documents required while opening such accounts

4.4 PREPARING AND ISSUING THE CHEQUE BOOK:

40

After opening an A/c, the client first need the deposit slip and then needs the Cheque

book. A new customer comes to collect the Cheque Book and it is verified whether they

are the same person who signed the requisition form or not while opening the account.

The old clients give a requisition for a Cheque book. The requisition is one kind of

document for the bank.

Preparing and issuing Cheque book for new account holder

The account holder’s sign is taken in requisition for Cheque

The requisition of whole day is at the end of the day first recorded in the Cheque

delivery register

The other requisition is filled with the name, date and a/c number at the back and

name and account number is written in the cover page.

The number of the Cheque to be issued (From and to), name of the a/c holder and

date is written in Cheque book

After this the Cheque is verified with the in charge of cash department

The detail is then entered in Finacle and Cheque is printed in CSD

At last requisition is placed in the middle in case of Cheque required for next

time and the cover is attached to it by writing the name and account number at

front.

And when the account holder comes to receive the Cheque and signs the

requisition the sign done the day before is verified

If the sign matches the holder signs in Cheque delivery register and the Cheque is

delivered for new customer.

In case of old requisition, after getting the requisition

The officer verifies the signature from the Finacle

41

Then verifies the previous Cheque book records- if it is active or encashed, how

many leaves the client needs and entry is done in the Cheque register book

Seal the A/c number on the leaves of the Cheque book

Write the A/c holder’s name and the Cheque book number on the requisition page

Write Cheque book number on the old requisition page

Then take the A/c holder’s or the authorized bearer’s signature in the register’s

book and deliver the Cheque book to the A/c holder (same as above)

After that, the officer gives posting of the Cheque book; else the A/c holder

cannot place the Cheque in the cash. They post in Finacle after verifying of

Cheque by in charge of cash department.

Fig 5: Steps of Cheque issuing are explained in the following chart

42

Requisition

for Cheque

book

Verify

signature of

the account

holder

Verify previous

Cheque book from

the system record

Check the form and

paper submitted by

the customer

Seal the account

number on the pages

Give the entry in the

register book

Take signature of the

a/c holder in the

requisition and the

delivery book and

deliver the Cheque

4.5 ATM CARD REGISTRY AND DELIVERY TO CUSTOMER

The CSD of BOANL provides the ATM card to the customer for free with no charges in

the beginning. The process of providing the ATM is:

The customer of BOAN comes for ATM

A customer is given to fill the form requesting for ATM

After complete filling of the form, the form is then submitted to the CSD officer

they verify the signature of the customer

The Atm card is issued to the customer and is send to cash department to take the

PIN number

4.6 BOOKS MAINTAINED

The CSD of BOAN Dillibazar Branch maintain different recording books namely:

Books Purpose

Stationery Book It keeps all the record of the stationery

purchased, received form the head office etc.

Cheque Book Register Cheque delivered in the entire day is

registered in this book with the sign taken of

43

Post the delivery of

the Cheque in the

system

the respective account holder.

Atm Card Register The ATM card issued along with their

number is recorded in this Book

Accounts Register The separate register for each product

account is maintained and updated daily in

register as well as in excel.

TABLE 19: Books Maintained

4.7 CUSTOMER HANDLING

Customer handling is the main basic function of the customer service department. Most

of the impression about the bank is derived from this particular department by the

behavior of the staffs and the information the prospective customer gets from here. Even

difficult customers can be turned into satisfied clients with good Customer Service

Management. Therefore the in charge of CSD must be very cautious as to not irritate the

customer and properly give him/her all the ideas which will help them to open an

account and to develop good idea about the Bank and also must welcome all the

complaints and suggestion by the customer. The things that must be kept in mind while

handling customer

The queries of the customers

Consult with customers about their need of product or service needs or their

wants.

Helping them with which account will be suitable for them to cater their needs

44

Investigate what products and services the customer will need even if they may

not know what they need. Probing as to what they want and present what they

feel they may need dependent on their needs and wants

Receive the call and answer the customer as soon as possible

Must keep connection with the customers through mail, phone or e-mail. The

frequency may vary but every customer should receive a 'touch' at least once a

month or so

Role as middle liaison between the main organization and the customer

Listening to their problems related to the bank’s products and services

Treat every complaint seriously, and every complaint as a valued customer with

an important and significant concern

Apologize for the inconvenience the customer feels. This recognizes and

acknowledges the customer's feelings and concerns without admitting fault or

assigning blame in anyway

Know your customers. Keep all the important detail about the customers so that

can also be used at the time of customer’s anniversaries, or birthdays is great.

Simple cards or gifts can do amazing things and make the customer feel

important even when they are not taking any other service etc.

Use polite language and tone and always remember to say appreciative words as

“Thank you” and “visit again”. Appreciate customers.

4.8 ACTIVITIES LEARNED BY ME:

I learned to operate the photocopy machine and fax machine

Learned a little bit about finacle

45

As the BOA was issuing right share at the time of my internship period I got to

help the customer with filling the form and other important detail also entering

the detail of right share into excel

Also updating the accounts opened in excel

Learned to scan the photos and documents in Finacle

4.9 RESEARCH DURING MY MARKETING PERIOD

As I was sent for marketing for the last two weeks of my internship period in BOAN

Dillibazar Branch. During the marketing period I informed the possible local customer

about the product and make few questionnaire and done the finding about what different

people in different profession search in the product and service

4.9.1 Research Design

This study mainly involves use of primary data such as interviews and market research.

Such data and information has been processed through various processes like tabulating,

calculating and research have been interpreted in the form of diagram for a clear view.

4.9.2 NATURE OF DATA COLLECTED

Qualitative data (Internal Information)

1. Primary

Unstructured interview with the executive of BOAN

46

Branch manager Mr. Yug Basnet

In charge Mr. Naresh Bhattarai

2. Secondary

Internal circular of BOAN regarding various policies

Quantitative data (External Information)

1. Primary

Questionnaires with existing and possible customer

2. Secondary

Financial report and annual reports of BOAN

4.9.3 Sample

I took a sample size of 50 respondents as it was a limited time period and limited area.

4.9.4 Presentation and Analysis of Data

It is done to make the data understandable and simple.

DATA ANALYSIS AND INTERPRETATION

S.no Target group No of respondents

1 Business man 15

47

2 Housewife’s 15

3 Students 15

4 Service worker 15

Total 60

TABLE 20: Data Analysis and Interpretation

Factors that is considered by the Businessman while opting for a service from the bank

Fig 6: Factors considered by Businessman while opening account

SOURCE: Interview with general public through questionnaire (see annex 4)

48

Fig 7: Satisfied or will switch the service?

Factors to be considered by the HOUSEWIFE while Opening an Account

Fig 8: Factors considered by Housewife while opening account

SOURCE: Interview with general public through questionnaires (see annex 4)

49

Fig 9: Satisfied or will switch?

Factors Considered by Serviceman while Opening an Account

Fig 10: Factors considered by Serviceman while opening account

SOURCE: Interview with general public (see annex 4)

50


Fig 12: Factors considered by Student while opening account

SOURCE: Interview with general public (see annex 4)

51


Fig 14: Reasons for these people to not switch the bank

SOURCE: Interview with general public through questionnaire (see annex 4)

52

4.10 FINDING AND INTERPRETATION OF RESEARCH

From the above research and finding I came to know the factors in choosing different

product by people of different lifestyles.

4.10.1 FINDING

We can see from above pie chart that the Businessman gives less priority to the ATM but

more priority to the banking commission, customer service and interest rate. Whereas the

housewife’s and the service person gives very less or zero priority to the business

commission.

Housewife’s gives more priority to the interest offered and the location as well as to the

customer service. The service person also gives maximum priority to the interest rate and

then to location and lastly to ATM.

Students seem to give more priority to the interest rate and ATM as well. Their third

priority happens to be the customer service of the bank. They also give a very little

priority to the bank’s commission.

It seems the entire above person will switch the bank if got the better opportunity but

there are these various factors that are stopping them to do so. They are: credibility of the

bank, closing charge, time consuming and loyalty toward the bank.

4.10.2 INTERPRETATION

As it is seen that all sector of people want more interest rate the bank should provide

more interest in saving deposits and also keep providing free ATM along with the other

ATM facilities. It must open the ATM booths on main areas that are accessible.

As student seem to be very less interested in the location therefore the bank should target

the youth segment by offering more better product schemes. The collection of money

from door to door seems better option to increase the housewives.

53

Also the businessman and the households do not seem they will change the service and

are fully satisfied with the bank. Whereas the students and the service man wants to

change but couldn’t change because of the time consuming, closing charge, and loyalty

toward the bank

4.11 ANALYSIS AND FINDINGS ABOUT BOAN

1. Good Image:

BOAN has the benefit of having better reputation and image because of continuously

providing better service and products to the people. People feel lesser risk for investing

their money with the bank. The bank has proved itself in these three years of operation.

2. World Class Services:

The bank is providing its customers world class and excellent services. This is the main

reason for the growth of the bank.

3. Coordination:

There is a very good coordination between the staffs of the BOA Dillibazar Branch that

increase the performance of this branch and also provides officials with the opportunity

to communicate discuss and deals with different situations as they arise.

4. Employee Behavior:

The employees of BOAN are very committed to their work. They are very hard

working and punctual but some of them have problems with the environment of the bank

and they feel that the branch environment is not very encouraging

The performance of BOAN it is considered that the whole bank is contributing a lot

towards the industrial development and capital formation in the country. As it is

exhibited from the data regarding the banks financial performance that the bank is

sharing major banking business of the country. Further the policies and schemes as are

introduced and carried on by the bank are of great source of help in industrial and trading

54

growth. So far as my own observations are considered I have also learnt some

disciplinary wrong practices on the part of staff of the branches.

1. No Quality in Attitude:

The attitude of the bankers with all of their customers is not the same; they pay more

attention and good service to some of the customers and neglect a major portion of them.

Some of the customers approach to the bank officials and get their work done before

others; it is not a good practice.

2. No Proper Guidance:

There are many customers who don’t know how to fill Cheque, pay-in-slip, application

form, etc. They waste a lot of time of the bank and some of the staffs are not very

cooperative in this area.

4.12 PROBLEM SOLVED IN BOANL

During the period of internship, the tasks and activities performed under the customer

service department has been analyzed. Also as it was a recently opened branch and not

with many departments many problems were faced. Following problems regarding this

department were solved:

When the staffs of Customer Service Department (CSD) were on leave, it was an

opportunity to handle the tasks of the concerned staff from which the other staffs

of CSD were benefited.

The staffs of CSD specifically utilized their full time concentrating on their own

job. In this way, internship training was proved fruitful and commendable.

The part of absent staff's activities like handling frequent customers, helping

them to open new account and providing different services to the customers were

done in CSD.

The books maintained had many problems like some of the stationery brought

and used was not recorded and purchased and used so it was solved by correcting.

55

During the account opening many signatures were left undone that was solved by

me by taking them to the customer if possible or by calling the customer.

As I was local to the area many map that had to be made in KYC section was

helped by me.

During my short period of marketing i suggested the existence of the bank which

was unknown to many possible customers.

56

CHAPTER 5

CONCLUSION, LESSON LEARNED AND

RECOMMENDATION

5.1 CONCLUSION

As per the requirement of the course of study of BBA 8 th semester I have completed my

internship form BOAN, Dillibazar Branch, Kathmandu. By far the BBA has given me

the needed theoretical knowledge but this internship provided me to understand how the

real world works and gain real life experiences. It helped me to enhance my interpersonal

as well as the communication skill.

The basic objective of this report is to convey the learning of internship of BOAN. This

report is mainly focused on CSD practices of BOAN. Knowledge and information

related to Customer service was gained during the period of internship. Ultimate things

that have been known during the internship period of CSD are summarized as below:

1. During the period of internship in Customer Service Department (CSD),

countless customers seem to appear to open the new account called Sulav Bachat

Khata with zero balance also the fixed deposit account called dhanbarsa muddhati

khata providing higher interest of 12%. BOAN becomes success to attract the

customers by introducing these accounts.

2. It was so difficult to handle the several customers at once. The Staffs of CSD are

very hard working and can perform their job precisely. Also the guards were

trained to manage the rush of customers and keep them in line.

3. The Staffs of BOAN at Dillibazar Branch are satisfied with their job and work as

they are frequently confronted with various challenging works and the upper

level employee was always ready to help the lower level staffs on various works.

4. The bank is well equipped with the well experienced manpower, with exceptional

capabilities and insight as they were provided training earlier in KFA institute.

57

5. Being operated for shorter time period( i.e. Dillibazar branch came into operation

from baisakh 13th) the Dillibazar branch of BOAN was soon popular in the local

area of operation and was able to gain the confidence of people with good

marketing as well as the new and unique products.

6. The bank came up with various modifications in regular services like Debit cards

by providing them for free for a year which helped to increase the number of

customer taking those service and also brought other innovative services like

paying the telephone bills through mobile, NTC balance transfer to mobile,

purchase of yeti airline ticket and i-touch service etc.

7. The BOAN Dillibazar Branch is located in center area of Kathmandu which

made the customer know about the location but it became inconvenient for the

customers as it was one way location and lacked parking area.

8. As the bank has been operated for only about three years it is not able to convince

large group of people.

5.2 LESSON LEARNED

I got to learn different things while working as an intern in BOAN. Some of the major

things I got to learned were:

I got to learn about the different product and service of the BOAN and functions

the departments performed

I learned to respect each other and value people’s ideas

Learned about Taking pride in your work and your company

Learned to do different work

Learned to listen to our clients, customers and to each other

Positive organizational behavior

58

Positive communication skills

Dealing with the customers

Learned team work and time management

Learned to Follow the rules and creating self-ethics for own success

Motivation and self-motivational techniques

Fact based decision making

Learned creating quality and customer satisfaction while exceeding the

organizations expectations

Commitment, loyalty and hard work are the key learning’s of our time I have

spent working with Bank Of Asia Nepal Ltd

5.3 SUGGESTION

As the BOAN Dillibazar branch was started some time before it is making various

efforts to sustain and build in the local area and have succeeded much on that but also I

would like to recommend in certain specific area I think it should improve. The

recommended area of improvement might be explained as below:

1. A more clear guidelines and a standard format of tasks and responsibility should

be defined so that it leaves no space of ambiguity for the employee.

2. The standards and clear cut policy should be applied in all conditions and to all

customers without exceptions so that the standard of the bank remains vivid.

3. Technology enhancement should be made so that services such as e-banking,

tele-banking etc. are more prompt and efficient.

4. Higher preference should be given to the customers complaints, which helps in

reducing customers complaints in the market.

59

5. A proper parking area must be allocated as the building is located in the main

road with no space.

6. Additional ATM booths must be kept in many main cities of Nepal as well as

many main places of Kathmandu.

7. The branch as only been operated for a short time lacks many departments like

credit department, loan department etc. so the bank must increase various

department and service provided to increase the number of customers.

8. More marketing activities must be undertaken in order to aware the possible

customers about the existence of the branch.

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