GENERAL ACTIVITIES OF AGRICULTURAL
DEVELOPMENT BANK
An Internship Report
Submitted by
Niruta Neupane
Bhaktapur Multiple Campus
Symbol Number: 16954/16
T.U. Regd. No.: 7-2-20-508-2016
Submitted to
Office of the Dean
Faculty of Management
Tribhuvan University
In partial fulfillment of the requirements for the degree of
Bachelor of Business Administration (B.B.A.)
Doodhpati, Bhaktapur
May,2021
INTERNSHIP COMPLETION LETTER
ii
DECLARATION
This is to certify that I have completed the Internship Report entitled “General
Activities of Agricultural Development Bank Limited” under the guidance of Mrs.
Srijana Shrestha in partial fulfillment of the requirements for the degree of Bachelor
of Business Administration at Faculty of Management, Tribhuvan University. This
is my original work and I have not submitted it earlier elsewhere.
-----------------------------Niruta Neupane
BBA 2016-2021
Bhaktapur Multiple Campus
iii
BONAFIDE CERTIFICATE
iv
CERTIFICATE FROM THE SUPERVISOR
This is to certify that the Internship Report entitled “General Activities of
Agricultural Development Bank” is an academic work done by “Niruta Neupane”
submitted in the partial fulfillment of the requirements for the degree of Bachelor of
Business Administration at Faculty of Management, Tribhuvan University under my
guidance and supervision. To the best of my knowledge, the information presented by
her in the Internship report has not been submitted earlier.
_____________________
Signature of the Supervisor
Srijana Shrestha
Lecturer
Date: May, 2021
ACKNOWLEDGEMENTS
It is difficult to draw up a list of persons to be thanked because several people have
helped in preparation of this report in diverse ways. It is impossible to acknowledge
all those who contributed to this study. But some persons need to be publicly
acknowledged.
I express my immense feeling to those people and institutions that have throughout
extended their help in various ways in order to complete this project. I am grateful to
Tribhuvan University for initiating the internship program as the partial fulfillment of
Bachelor of Business Administration that gives one the practical experience of real
working environment and the application of the theoretical knowledge in the real
work life.
I am even thankful to ADBL’s Sallaghari Branch, for accepting me as intern and
giving me the opportunity to learn more. My special thanks to Head of Human
Resource, Mr. Nirmal Prasad Upadhyay, for accepting my letter of request to work at
ADBL.
It was a wonderful experience to do internship in Agricultural Development Bank
Ltd. Foremost, I would like to express my heartfelt gratitude towards Mr. Amod
Kumar Yadav (Internship Supervisor of concern organization as assigned by bank)
and Mrs. Srijana Shrestha (College Supervisor) who provided me with this
opportunity.
I would like to thank all the staffs of the organization for being so kind and cooperative towards me during my internship period. I would also like to thank all the
respondents for their courteous response for giving their valuable time and briefing
about different respective topics.
Finally, I like to present my sincere thanks to my family members and my friends for
their co-operation, inspiration, guidance and support during all stages of the
preparation of this report. Thanks all for your encouragement, support and warm
cooperation.
Thank You,
Niruta Neupane
vi
TABLE OF CONTENTS
INTERNSHIP COMPLETION LETTER.................................................................ii
DECLARATION........................................................................................................ iii
BONAFIDE CERTIFICATE ..................................................................................... iv
CERTIFICATE FROM THE SUPERVISOR .......................................................... v
ACKNOWLEDGEMENTS ....................................................................................... vi
TABLE OF CONTENTS ..........................................................................................vii
LIST OF TABLE ........................................................................................................ ix
LIST OF ABBREVIATION........................................................................................ x
CHAPTER I INTRODUCTION ................................................................................ 1
1.1 Background of the study .................................................................................. 1
1.2 Objective of Internship .................................................................................... 2
1.3 Methodology .................................................................................................... 3
1.4 Limitations of the Study................................................................................... 5
1.5 Organization of the Study ................................................................................ 5
CHAPTER II INTRODUCTION OF BANKING INDUSTRY .............................. 7
2.1 History of Banking ........................................................................................... 7
2.2 Origin of the word “Bank” ............................................................................... 7
2.3 Definition of Bank ........................................................................................... 8
2.4 Commercial Banking System in Nepal and its Functions ............................... 8
2.5 Banking channels ............................................................................................. 9
2.6 Evolution and Growth of Banking Sectors in Nepal ..................................... 10
2.7 Classification of Financial Sector in Nepal ................................................... 12
2.8 Present Scnerio of Nepalese Banking Sector ................................................. 12
CHAPTER III INTRODUCTION OF THE ORGANIZATION .......................... 16
3.1 Introduction to Agricultural Development Bank Limited ............................. 16
vii
3.2 Vision Statement ............................................................................................ 17
3.3 Mission Statement.......................................................................................... 17
3.4 Objective of ADBL ........................................................................................ 17
3.5 Corporate Conduct ......................................................................................... 17
3.6 Board of Directors.......................................................................................... 18
3.7 Management Team......................................................................................... 19
3.8 Training and Development ............................................................................ 19
3.9 Branches of ADBL ........................................................................................ 21
3.10 Services offered by ADBL........................................................................... 21
CHAPTER IV ANALYSIS OF ACTIVITIES DONE ............................................ 29
4.1 Introduction to CSD ....................................................................................... 29
4.2 Activities Performed in the organization ....................................................... 29
4.3 Problem Identification ................................................................................... 35
4.4 Solution Alternatives ..................................................................................... 35
4.5 SWOT Analysis ............................................................................................. 37
CHAPTER V CONCLUSION AND LESSON LEARNT ...................................... 39
5.1 Summary ........................................................................................................ 39
5.2 Lesson Learnt ................................................................................................. 40
5.3 Conclusion ..................................................................................................... 40
5.4 Recommendations .......................................................................................... 41
Reference ........................................................................................................................
APPENDICES ................................................................................................................
viii
LIST OF TABLE
Table 1.1 Internship Duration And Placement............................................................4
Table 2.1 Classification of Banks in Nepal ................................................................. 12
Table 3.1 Board of Directors of ADBL ....................................................................... 18
Table 3.2 Management Team of ADBL ...................................................................... 19
Table 3.3 Regional Training Center............................................................................. 20
Table 3.4 Interest rate of Saving deposits .................................................................... 22
Table 3.5 Current account ............................................................................................ 23
Table 3.6 Fixed Deposit (Individual) ........................................................................... 23
Table 3.7 Fixed Deposit (corporate) ............................................................................ 24
Table 3.8 Fixed Deposit (USD) ................................................................................... 24
Table 3.9 Fixed Deposit (ADBL Special).................................................................... 24
ix
LIST OF ABBREVIATION
ABBS
Any Branch Banking System
ATM
Automated Teller Machine
A.D.
Anno Domini
BBA
Bachelor in Business Administration
BFIs
Banking and Financial Institutions
BOD
Board of Directors
B.S.
Bikram Sambat
CEO
Chief Executive Officer
CSD
Customer Service Department
CSI
Customer Service In charge
EFTPOS
Electronic Funds Transfer At Point Of Sale
FD
Fixed Deposit
KYC
Know Your Customer
ADBL
Agricultural Development Bank Limited
MIS
Management Information System
NBL
Nepal Bank Limited
NRB
Nepal Rastra Bank
OCC
Office of the Controller of the Currency
SWOT
Strength Weakness Opportunities and Threats
SWIFT
Society for Worldwide Interbank FinancialTelecommunications
TU
Tribhuvan University
U.S.
UnitedStates
x
1
CHAPTER I
INTRODUCTION
1.1 Background of the study
A Bachelor in Business Administration (BBA) is a four year academic program with
eight semester introduced by Tribhuvan University. This report has been prepared as a
partial fulfillment of the degree of Bachelors in Business Administration (BBA) of
Tribhuvan University. The internship report has been prepared after 8 weeks
internship at Agricultural Development Bank.
An intern is usually college or graduate student who works, sometimes without pay,
in order to gain work experience or satisfy requirements for a qualification. An
internship can be defines as a practical of all the subjects and techniques learned in
classroom, for completion of BBA. This approach helps the student to be aware of the
working environment before they start to work in any organization. This report has
been prepared as a partial fulfillment of the requirement for the degree of BBA course
of Tribhuvan University. This report is mainly focused with the internship activities
and overall view and of the subject matter that are being carried out by the internee at
Agricultural Development Bank Limited during the period of eight weeks on the
subject matter and activities related to general banking.
This era is the era of globalization and the world has become a global village. So,
today in the global business context, everybody needs to have adequate information
and knowledge about the changing business environment. Every business now a day
has to face cut throat competition. Pursuing the knowledge about the business and
management theories in today’s context does not limit into the books that has been
prescribed and syllabus by college and universities. It is necessary to have real time
knowledge with theoretical aspects. Thus, there is need of implementing theoretical
knowledge in the practical field. Getting real-time knowledge with theoretical concept
nowadays is about getting practical knowledge entering into the workplace, so that we
can have knowledge about the working procedures in the related field.
To build the gap between theoretical knowledge and practical aspects, internship has
been taken as a pool and has become supportive to students also. Internship is the
concept where one in course of learning can put one’s theoretical knowledge into
2
practical aspects. The basic purpose is to make student predictable and professional.
Therefore, internship program is currently considered as essential for each and every
student completing their degree.
This study helps internee to assess themselves in terms of demand of a profession, and
to gain work experience and to develop relation with potential employers. The
internship report allowed the internee to obtain insights into career opportunities
through interaction, observation and work experience in the organization. It became a
platform to develop basic research and decision making skills and to undertake
independent analysis and appraisal of different situation. It has helped the internee to
become competent, confident, and skilled professional in near future such that
strengthening their managerial, entrepreneurial and leadership capabilities in today’s
organization. Moreover, it also provided an opportunity to the organization to access
fresh graduates for some time before employing any of them.
Details of Internship
Name and Address of the Organization: Agricultural Development Bank Limited
Sallaghari Branch, Bhaktapur, Nepal.
Tel: 01-6612041/6610052
Fax: 01-6612041
Website: www.adbl.gov.np
E-mail: sallaghari.branch@adbl.gov.np
Position: Intern
1.2 Objective of Internship
The main objective of the study is to relate the theoretical knowledge with the
practical ones. Besides development of communication skills, decision making,
confidence build up are some of the objectives of this internship program. The other
specific objectives are as follows:

To gain better understanding of banking system and its functions

To get acquainted with the general banking activities and gain practical
knowledge of banking activities in the Nepalese market.
3

To be familiar with the banking practices, rules, regulation and functioning of
bank in Nepal

To know customers’ feeling about the services provided by the bank

To observe and know the various departmental functions and their problem
1.3 Methodology
The preparation of internship report needed certain information, qualitative and
quantitative data. Therefore, a systematic approach and research methodology was
followed to collect the needed information which includes primary and secondary
sources such as observation of day to day work, published sources, organization
homepage etc. This report has been prepared on the basis of 8 weeks internship
experience at Agricultural Development Bank Limited. The internship report itself
acts as an important basis for data generation for the report work. An internship
program is designed with a motive to provide a clear picture of the operations
performed in this bank. The following represents the methodology of the study.
1.3.1 Organization Selection
The first step of this study was to select a suitable organization for the internship.
Selection of appropriate organization is very important as the scope for learning for an
internee depends upon the organization itself. The selection of organization was made
from banking sectors. There are a number of commercial banks available in our
country. The internee first approached Agricultural Development Bank Limited.
Recommendation letter along with cover letter and Curriculum Vitae of the student
was dropped in Human Resource Department of Agricultural Development Bank
Limited. Regular follow up was carried out by student in this bank. The bank needed
some time to decide as many students had approached them for internship. The
positive response was received after one day of approach made to ADBL. Apart from
this, ADBL was one of the best options for the internee due to convenience. Finally,
the internee joined the ADBL for internship.
1.3.2 Placement
The internee was placed in the Sallaghari branch of ADBL as per the convenience and
decision of Human Resource Department. The internee was first guided by the
operation head for making the internee familiar with the environment of the bank.
Regarding placements, the internee was placed in a single department i.e. in the
4
Operation Department. The support and cooperation the internee got in the bank was
instrumental. Internee got the opportunity to work and observe the task over the
Operation Department in Sallaghari branch.
1.3.3 Duration of Internship
As per TU requirement, a BBA student should undergo internship for minimum eight
weeks. The intern successfully completed internship from 22nd july, 2020 to 23rd
October, 2020. During the entire 8 weeks, the intern worked at Operation Department
and was able to gain the knowledge regarding the functioning of the various
departments of the bank, its culture, working environment and procedure. The
internee was able to learn the bank’s culture, work environment and working
procedure regarding banking activities in detail.
Table 1.1
Internship Duration And Placement
Finance
Number of Weeks
Department
1st
2nd
3rd
4th
5th
6th
7th
8th
Sections
Costumer Service
Administration
Loan department
Cash department
1.3.4 Activities performed at ADBL
The intern performed various activities under the supervision of the respective heads
of department. The internee performed and observed the activities in the customer
service department under the supervision, direction and explanation of ADBL staffs.
In Customer Service Department, the internee worked under the supervision of
Branch Manager, Mr. Amod Kumar Yadav. The summarized activity done in this
department is as follows:

Provide different forms like account opening form, sms/internet banking form,
debit card application forms, account closing forms etc.
5

Dealing with customers E-banking

Distribute the debit cards

Making cheque books, register and issuance of cheque books

Check if the required documents to open the account are missing or not

Handle incoming calls

Filling account opening forms and KYCs

Information dissemination to all the customers

Check balances and verify signatures
1.4 Limitations of the Study
It can be seen that no study is free from limitations. While doing the internship in the
bank there were certain limitations by which the intern was not able to get what the
course demanded. The following are the major limitation of the study:

This report is based on activities performed in ADBL.

The main limitation was the time factor. The time period of two months was
not enough for a detail study of banking activities and its procedures.

Due to the confidential nature of banking sector and the system implemented
in the bank, banks do not provide all the details on relevant information on
certain topic in order to maintain the privacy of bank.

Busy schedule of employees restored from learning

Study was limited to a single department i.e. customer service department of
ADBL.
1.5 Organization of the Study
This report has been divided into total of five chapters. These five chapters have been
organized as follows:
Chapter One: It deals with introduction that consists of the background of the study,
objective of the study, methodology, and limitations of the study. It provides an
overview about what to expect from the report.
Chapter Two: It explains industrial background that contains a detailed explanation
of the banking industry. It includes the meaning of bank, history of banks and
historical development of banks in Nepal.
6
Chapter Three: The third chapter gives a brief overview of the organization where
the internship was carried out. This chapter includes introduction, mission and
objective, ownership patterns as well as the products and services of ADBL.
Chapter Four: The fourth chapter firstly contains the basic details of the departments
where the interns are placed. It includes an in-depth explanation of the operations that
were performed during the three month internship period. It also states the problems
encountered during the internship.
Chapter Five: The fifth and the last chapter of this report present a summary of the
entire report, recommendations and lessons learnt during the period of internship.
7
CHAPTER II
INTRODUCTION OF BANKING INDUSTRY
2.1 History of Banking
A bank is a financial institution licensed by a government. Its primary activities
include borrowing and lending money. Many other financial activities were allowed
over time. For example banks are important players in financial markets and offer
financial services such as investment funds. In some countries such as Germany,
banks have historically owned major stakes in industrial corporations while in other
countries such as the United States banks are prohibited from owning non-financial
companies. In France, bancassurance is prevalent, as most banks offer insurance
services (and now real estate services) to their clients.
The level of government regulation of the banking industry varies widely, with
countries such as Iceland, the United Kingdom and the United States having relatively
light regulation of the banking sector, and countries such as China having relatively
heavier regulation (including stricter regulations regarding the level of reserves).
(Gascoigne, 2001)
2.2 Origin of the word “Bank”
The name bank derives from the Italian word banco "desk/bench", used during the
Renaissance by Florentine bankers, who used to make their transactions above a desk
covered by a green tablecloth. However, there are traces of banking activity even in
ancient times. (DeMichele, 2016)
Banks act as payment agents by conducting checking or current accounts for
customers, paying cheques drawn by customers on the bank, and collecting cheques
deposited to customers' current accounts. Banks also enable customer payments via
other payment methods such as telegraphic transfer, EFTPOS, and ATM. Banks
borrow money by accepting funds deposited on current accounts, by accepting term
deposits, and by issuing debt securities such as banknotes and bonds. Banks lend
money by making advances to customers on current accounts, by making installment
loans, and by investing in marketable debt securities and other forms of money
lending. Banks provide almost all payment services, and a bank account is considered
indispensable by most businesses, individuals and governments. Non-banks that
8
provide payment services such as remittance companies are not normally considered
an adequate substitute for having a bank account. Banks borrow most funds from
households and non-financial businesses, and lend most funds to households and nonfinancial businesses, but non-bank lenders provide a significant and in many cases
adequate substitute for bank loans, and money market funds, cash management trusts.
2.3 Definition of Bank
The definition of a bank varies from country to country. Under English common law,
a banker is defined as a person who carries on the business of banking, which is
specified as:

Conducting current accounts for his customers

Paying cheques drawn on him, and

Collecting cheques for his customers.
According to Oxford Dictionary, “a bank is an establishment or custody of money
received from of on behalf of its customers, its essential duty is to pay their draft on it,
its profit arises from its use of money left unemployed by them.”
2.4 Commercial Banking System in Nepal and its Functions
Commercial bank is the oldest form of bank. Bank that performs all kinds of banking
business and generally finances trade and commerce is called commercial bank. It
occupies an important place in the framework of every economy. Commercial bank
accepts deposit from public and provide loan to them. It acquires fund from surplus
saving unit to deficit spending unit. The main objective of commercial bank is to earn
profit which is achieved from spread margin.
Nepal bank limited is the first commercial bank in Nepal which was established in
1937 A.D. The lists of commercial banks licensed by NRB are mentioned in
appendices.
The commercial functions of banks is not limited to banking, and includes:

Issue of banknotes (promissory notes issued by a banker and payable to bearer
on demand)

Processing of payments by way of telegraphic transfer, EFTPOS, internet
banking or other means

Issuing bank drafts and bank cheques
9

Accepting money on term deposit

Lending money by way of overdraft, installment loan or otherwise

Providing documentary and standby letters of credit (trade finance),
guarantees, performance bonds, securities underwriting commitments and
other forms of off-balance sheet exposures

Safekeeping of documents and other items in safe deposit boxes

Currency exchange

Acting as a 'financial supermarket' for the sale, distribution or brokerage, with
or without advice, of insurance, unit trusts and similar financial products
2.5 Banking channels
Banks offer many different channels to access their banking and other services:

A branch, banking center or financial center is a retail location where a bank
or financial institution offers a wide array of face-to-face service to its
customers.

ATM is a computerized telecommunications device that provides a financial
institution's customers a method of financial transactions in a public space
without the need for a human clerk or bank teller. Most banks now have more
ATMs than branches, and ATMs are providing a wider range of services to a
wider range of users. For example in Hong Kong, most ATMs enable anyone
to deposit cash to any customer of the bank's account by feeding in the notes
and entering the account number to be credited. Also, most ATMs enable card
holders from other banks to get their account balance and withdraw cash, even
if the card is issued by a foreign bank.

Mail is part of the postal system which itself is a system wherein written
documents typically enclosed in envelopes, and also small packages
containing other matter, are delivered to destinations around the world. This
can be used to deposit cheques and to send orders to the bank to pay money to
third parties. Banks also normally use mail to deliver periodic account
statements to customers.

Telephone banking is a service provided by a financial institution which
allows its customers to perform transactions over the telephone. This normally
includes bill payments for bills from major billers (e.g. for electricity).
10

Online banking is a term used for performing transactions, payments etc. over
the Internet through a bank, credit union or building society's secure website.

Mobile banking is a method of using one's mobile phone to conduct simple
banking transactions by remotely linking into a banking network.

Video banking is a term used for performing banking transactions or
professional banking consultations via a remote video and audio connection.
Video banking can be performed via purpose built banking transaction
machines (similar to an Automated teller machine), or via a videoconference
enabled bank branch.
2.6 Evolution and Growth of Banking Sectors in Nepal
The origin of the banking system in Nepal started with the name of Shankerdhar, a
Sundra merchant of Kantipur who paid all the outstanding debts in the country. In
historical term, there is a story that Gunkamdev borrowed money in 723 Sambat to
reconstruct Kathmandu. In the 11th century, during Malla regime, Jayasthiti Malla
developed 64 different classes of caste according to their occupation. During that
period, Tankadhari which is a money lender provided debt. "Tejarath Adda” was
established in 1877 A.D. during the tenure of Ranaddip Singh, and it was converted
into government financial institution providing credit facilities to people at lowinterest rate of 5 percent. Tejarath Adda distributed credit facilities to the public
especially on the collateral of gold and silver, but it didn’t collect the deposit from the
public.
After a long period, the government started to trade with India and Tibet. And the
various indigenous bankers handled even the trade because the transfer of the money
could be safely made only through these bankers. This was even strongly supported
by the situation caused during 1934 A.D.’s earthquake where there was a need of
finance for the reconstruction of works. Reviewing these situations, the Udyog
Parishad (Industrial Development Board) was constituted in 1936 A.D. A year after
its formation, the Udyog Parishad formulated the “company act” and the “Nepal Bank
Act” which established the Nepal Bank Ltd. with the technical cooperation of the
Imperial Bank of India, as the first commercial bank of Nepal.
After the establishment of this bank, different services like accepting deposits,
extending credit facilities for promotion of trade, rendering customer related services
11
and investing in government bonds and securities were offered to general public. This
bank also performed agency functions and acted as a banker to the government. In
fact, it conducted all the functions of the central bank (except issuance of paper
money) till the establishment of NRB.
NRB, the Central Bank of Nepal, was established in 1956, to discharge the central
banking responsibilities including guiding the development of the embryonic
domestic financial sector. Its major aims are to regulate the issue of paper money;
secure countrywide circulation of Nepalese currency and achieve stability in its
exchange rate; mobilize capital for economic development and for trade and industry
growth; develop the banking system, thereby ensuring the existence of banking
facilities and maintain the economic interest in the general public. NRB also oversee
foreign exchanges and foreign exchange reserves.
Another commercial bank, Rastriya Banijya Bank (RBB), was established in 1965
A.D. realizing NBL alone could not extend adequate services to the country in terms
of commercial banking. It had a free hand in the commercial business of the country
and this bank solely handled import-export trade. After the establishment of RBB, no
new commercial bank was established for a period of nearly 18 years. To promote
healthy competition among banks, Commercial Bank Act 1974 was amended in 1974.
The new policy allowed joint venture banks with foreign collaboration to operate in
the private sector with the objective of introducing modern banking practices and
widen the financial structure. With the introduction of this policy, different
commercial banks were established.
The Nepal Arab Bank now NABIL Bank was co-owned by the Emirates Bank
International Limited Dubai, the Nepalese Government and the Nepalese public was
the first joint venture bank established in 1984. Similarly, The Nepal Indosuez Bank
now Nepal Investment Bank in 1987 was jointly owned by the French Banque
Indosuez Bank, Nepal Grindlays Bank in 1990 (presently known as Standard
Chartered Bank) etc are some commercial banks in Nepal. (Adhikari, 2012)
12
2.7 Classification of Financial Sector in Nepal
Table 2.1
Classification of Banks in Nepal
S.N
Financial Institutions
Class
1
Commercial Banks
A
2
Development Banks
B
3
Finance Companies
C
4
Micro-Finance Financial Institutions
D
(Source: www.nrb.com.np)
In this way, there are altogether 27 commercial banks, 19 development banks, 21
finance companies and 76 micro-finance financial institutions in Nepal which are
classified as A, B, C and D class respectively.
2.8 Present Scnerio of Nepalese Banking Sector
In the last fiscal year, the financial sector contributed about 6.3 percent to Nepal’s
gross domestic product (GDP). This contribution had more than doubled over a period
of a decade. But with the onset of the global pandemic, the prospect of Nepal's
financial sector looks fairly bleak as it is one of the most severely hit. The severity of
the impact of the pandemic, however, will mostly depend on its duration, the
government’s preparedness, and the efficacy of the health care system. Also, given
the pervasiveness of spread of the virus across the globe, Nepal will not remain
untouched by sharply reduced international flow of finances, along with other
interactions, across economies.The overarching uncertainty in every walk of national
life as the world is completely gripped by the clutches of the pandemic, followed by a
long lockdown announced by the government, has virtually halted all economic
activities—in production, distribution and, to a great extent, consumption, too. During
the last two weeks, cash withdrawal of about Rs5 billion from the banks and financial
institutions (BFIs) signals diminished consumer confidence. At the same time, the
emerging scenario of drastically reduced investment opportunities may soon result in
13
excessive liquidity in the system. The potential extensive default on the repayment of
loan and mortgage instalments pose the real risk of systemic failure. The
government’s response to the crisis seems to have been announced without much
homework done, and it has put the entire banking industry under additional duress. At
this critical juncture of existential crisis, the Nepali banking sector seriously needs to
work on risk evaluation. Some risks are inevitable and require equally meticulous
plans to take them head-on.
Operational risk
The disruption to normal life will continue for a long while. This will put some added
pressure on BFIs; the logistics management in a new normal will be challenging
enough, but there are also added costs to consider, such as for the procurement of
protective and sanitising equipment. Further, staff absenteeism may increase—due to
both psychological resistance and added family obligations. All of this will bring
about additional challenges in human resources management as well.
Further, the cost for deposit mobilisation could increase substantially, since the
government's development budget is unlikely to be spent as per guidance. Customers
are likely to hold a more-than-normal amount of cash with them due to the uncertainty
surrounding the future. On the other hand, due to reduced production and other
economic activities, the demand for credit in lucrative investable projects could also
plummet. All this will have obvious adverse effects on the financial health of the
BFIs.
The Covid-19 pandemic may force the asset prices to decline, and it may place the
balance sheet of many financial institutions under pressure for several fiscal years.
Banks will operate at a higher degree of competition—to attract deposits as well as to
find investable projects. This, in turn, will lead some financially vulnerable BFIs
towards bankruptcy. The role of the regulator and the government policies in the days
to come will be critical in saving the entire financial system from such predicament.
Currency risk
Nepal's currency risk is largely associated with the health of the Indian economy
because the Nepali rupee is strictly pegged to the Indian currency. As the Indian rupee
faces an almost 5 percent depreciation against the US dollar, and as India’s economy
14
has been on a downturn, Nepal will feel the shock, too. Remittance inflow has been
Nepal's main source of foreign currency earning for years now. But this is also in a
declining trend, seeing a 0.5 percent reduction during the first seven months of the
current fiscal year. Another key source of foreign currency earnings, the tourism
sector, may take a very long time to resurrect. All this will reduce Nepal's reserves of
foreign currencies, making it difficult for her to pay the ballooning import bills.
Financial institutions with hedge investments will experience swinging stresses as per
the extent of the disruption by the impact of the novel coronavirus on the global
economy. There are numerous big projects in which the bank and financial
institutions have been invested. These will be infected by the high fluctuations on the
exchange rate which will further hamper the profitability and repayment amount of
loans in the banking sector.
Nepal's own management of the money market should be another key area of risk
management. As both inflation or stagflation are unwanted ailments to the economy,
policy measures alone, without actual injection of cash by the government, may have
very little desired impact.
Cushions and measures
To mitigate these unwanted risks, at least some measures are inevitable—hopefully
implemented sooner rather than later.
A major one will be effective communication. Senior executives with communication
skill can mitigate market fears, minimise staff absenteeism and maintain a market
presence, adding more value to customers. The banking industry now needs to
coordinate across business functions, employee health, lending portfolio and recovery.
It should focus on how to revive all services with strong internal and external
communication strategies, along with a recovery plan. It should also focus on
maintaining the reserves at healthy levels, enhancing the quality of service and
modifying deposit and loan products as per the need of the times.
The client support system is the most pivotal aspect of addressing the present
situation, where the business confidence of most entrepreneurs and borrowers has hit
rock bottom. Borrowers need technical and cash-flow management support to sustain
their business. Thus, banks should first establish the mechanism to interact with its
loan customers to address their problems. Then, in consultation with their customers,
15
they can reschedule the payment also in line with the relief packages announced by
the government and Nepal Rastra Bank.
Finally, the government must come up with a workable stimulus and support package
in consultation with the representative industry organisations, one being the Nepal
Bankers’ Association. Many of the blanket policies announced by the government,
like deferral on payments for all and sundry, including those who are capable and
willing to pay, has put the BFIs in a very awkward situation. Any deferral in payment
for banks is a cost augmentation. Therefore, the government can instead ascertain the
relief needs of the pandemic-affected borrowers on an individual basis and provide
support accordingly, instead of making generic policy statements which are
eventually impossible to implement.
16
CHAPTER III
INTRODUCTION OF THE ORGANIZATION
3.1 Introduction to Agricultural Development Bank Limited
Agricultural Development Bank Limited (ADBL) was established in 1968 under the
Agricultural Development Bank Act 1967 with the major objective of improving the
socio-economic status of rural populace. Agricultural Development Bank Nepal
(ADBN) Act 1967 was repealed with the enactment of Bank and Financial Institution
Act (BAFIA) and ADBL has been established itself as a public limited bank with an
A-class operational license from Nepal Rastra Bank in accordance with the provision
of BAFIA. This new individuality provides bank abundant opportunities to conduct
full-fledged banking activities.
With the main objective of providing institutional credit for enhancing the production
and productivity of the agricultural sector in the country, the Agricultural
Development Bank, Nepal was established in 1968 under the ADBN Act 1967, as
successor to the co-operative Bank. The Land Reform Savings Corporation was
merged with ADBN in 1973. Subsequent amendments to the Act empowered the bank
to extend credit to small farmers under group liability and expand the scope of
financing to promote cottage industries. The amendments also permitted the bank to
engage in commercial banking activities for the mobilization of domestic resources.
Agricultural Development Bank Limited (ADBL) is an autonomous organization
largely owned by Government of Nepal. The bank has been working as a premier
rural credit institution since the last three decades, contributing a more than 67 percent
of institutional credit supply in the country. Hence, rural finance is the principal
operational area of ADBL. Besides, it has also been executing Small Farmer
Development Program (SFDP), the major poverty alleviation program launched in the
country. Furthermore, the bank has also been involved in commercial banking
operations since 1984.
The enactment of bank and Financial Institution Ordinance (BAFIO) in February
2004 abolished all acts related to financial institutions including the ADBN Act, 1967.
In line with the BAFIO, ADBL has been incorporated as a public limited company on
July 14, 2005. Thus, ADBL operates as “A” category financial institution under the
17
legal framework of BAFIO and the Company Act, 2053.
3.2 Vision Statement
 To be a Mass-based Complete Bank serving from Urban to Rural.
3.3 Mission Statement
 To deliver comprehensive banking solution strengthening its extensive
network.
3.4 Objective of ADBL
ADBL has the following objectives:

Continue to maintain leading share of banking sector with a significant
presence in all major geographical areas in the country.

Provide competitive and customer oriented banking services to all customers
through competent and professional staff.

Reclaim leadership within the national financial community.

Introducing modern banking technology to facilitate transactions in convenient
way.

Maximize the efficiency/potential of bank’s staff.

Focus on increasing the sustainable profit.

Mobilization of capital in important areas.

Promotion of national economy, society and individuals.
3.5 Corporate Conduct
In achieving its corporate objective in pursuit of its corporate mission and vision,
ADBL will:

Comply with all relevant legislation, codes of conduct and standards of good
corporate citizenship in Nepal while maintaining full autonomy in the
management of its operations;

Conduct its operations in an open and transparent manner;

Put local resources to work for local development, serving the rural
community and its aspirations;

Provide a full and balanced range of financial products and services that
satisfies the needs of the rural population of Nepal, on a profitable and
sustainable basis;
18

Strive consistently to provide improved products and services to its clients at
reasonable cost, using modern banking, information and communication
technology in the most appropriate form to its clients’ needs;

Be vigorous in building reputation for professionalism, competitive pricing,
reliability and quality of service and innovation;

Ensure that its activities contribute to the environmental stability and overall
improvement of living standard in Nepal
Judge the bank’s success against the measures that include profitability, portfolio
quality in terms of minimal arrears and non-performing loans, portfolio worth, total
deposits, geographic outreach and public image.
3.6 Board of Directors
The Board of Directors is the apex body of the bank. It formulates policies as well as
strategies and provides guidance to the management. The bank is led by an
experienced and visionary Board of Directors driven towards the achievement of
banking excellence. The Board of Directors of ADBL is listed in the table below.
Table 3.1
Board of Directors of ADBL
S.N. Name
Designation
1
Mr. Laxmi Prapanna Niroula
Chairman
2
Mr. Dirgharaj Mainali
Director
3
Dr. Hari Bahadur KC
Director
4
Mrs. Indira Shrestha (Maske)
Director
5
Mr. Sanjeev Paudel
Director
6
Mr. Hari Prasad Parajuli
Director
7
Mr. Binod Kumar Guragain
Director
8
Mr. Himalal Paudyal
Company Secretary
(Source: www.adbl.gov.np)
19
3.7 Management Team
The day to day operation of the bank is executed by the Chief Executive officer. The
Chief Executive Officer is closely assisted by Deputy General Managers and Division
Chiefs. Moreover, Chief Executive Officer is supported by Assets and Liabilities
Management Sub-Committee for various activities related to risk management.
Table 3.2
Management Team of ADBL
S.N. Name
Designation
1
Mr. Anil Kumar Upadhyay
Chief Executive Officer
2
Mr. Yagya Prakash Neupane
Act. Deputy General Manager
3
Mr. Dhruba Chandra Gautam
Act. Deputy General Manager
4
Mr. Pratap Subedi
Act. Deputy General Manager
5
Mr. Dirgha Bahadur Aryal
Act. Deputy General Manager
(Source: www.adbl.gov.np)
3.8 Training and Development
ADBL is also operating a Central Training Institute (CTI) at corporate level in Bode,
Bhaktapur under Head Office Structure and Training Centers (RTCs) with residential
facilities in different province. The CTI and RTCs conducts training and seminars
particularly for enhancing abilities and skills of organizational members.
20
Table 3.3
Regional Training Center
Letang, Morang
1. Province 1 RTC
Phone: 021-560090
Fax: 021-560055
Email: rtc.letang@adbl.gov.np
RTC Chief: Mr. Gopal pd Lamichane
Pipari, Banke
2. Lumbini RTC
Phone: 081-540171
Fax: 081-541299
Email: rtc.pipari@adbl.gov.np
RTC Chief: Mr. Samjhauta Tamang
Mangalapur, Rupandehi
3. Lumbini RTC
Phone: 071-560915
Fax: 071-561544
Email: rtc.mangalapur@adbl.gov.np
RTC Chief: Mr. Ram Bahadur Khatri
Dhangadi
4.Sudurpaschim RTC
Phone: 091-521202
Fax: 091-525202
Email: rtc.dhangadi@adbl.gov.np
RTC Chief: Mr.Deepak Kunwar
(Source: www.adbl.gov.np)
21
3.9 Branches of ADBL
Agricultural Development Bank Limited has the highest number of office all around
Nepal, divided into Head Office, Regional Office, Regional Training center and
Branch Office. The head office is located in Ram Shah Path, Kathmandu. There are 9
Province Offices and 4 Training center all over Nepal. All together there are 278
outlets of ADBL throughout the country.
3.10 Services offered by ADBL
Agricultural Development Bank Limited is offering various types of product or
services to fulfill the demand of its existing and potential customer’s. The bank is
providing its services through a wide network of 278 branches over the nation and
associated correspondents across the globe. All the major branches of the bank are
connected through Core Banking System (CBS), a facility which enables a customer
to do banking transactions from any of the branches irrespective of their having
accounts in other branch.
The different services offered by ADBL are as follow:
3.10.1 Deposits Scheme
ADBL offers a wide array of deposits schemes in both local and foreign currencies to
help customers earn competitive interest rates in order to maximize higher returns on
investments.

Saving Deposit
Saving deposit account can be opened in any of the commercial branches. Interest is
calculated and credited to customer saving account on minimum daily balance. Initial
deposit ranges are depending upon the branch and its level. Any balance below
minimum amount will be liable to incidental charges as fixed by the bank from time
to time. Customer opening this account gets a free cheque book. The bank offers Any
Branch Banking facilities (ABBS) to its customer.
22
Saving interest rate of ADBL
Table 3.4
Interest rate of Saving deposits
Deposits
Interest Rate(%)
General
3.50
Chetanshil Nari Bachat
3.50
Kirshak
3.50
Shareholder
4.25
Sambriddhi
4.25
Ba Ama
5.00
Karmachari Nibritibaran Bachat Khata
5.00
ADBL salary
5.00
Social Security special saving account
4.50
Sabai nepali ko bachat khata
3.50
USD
0.80
EURO
0.60
POUND
0.60
(Source: www.adbl.gov.np)

Current Deposit
ADBL's current account saves you the hassle of carrying cash. Mainly this account is
intended for business/corporate houses, this account can be opened from any
commercial banking branches throughout the country. This account is non-interest
bearing and be cashed whenever and wherever it's convenient.
23
Current Interest Rate of ADBL bank
Table 3.5
Current account
Account type
Interest Rate
Current deposit
0 percent
(Source: www.adbl.gov.np)

Fixed Deposit
Here, money is deposited for stated period of time and can be opened from any commercial
branches. It can be opened with a minimum balance of NRs. 10,000 and also provide
higher rate of interest. Penal interest is levied on withdrawal of fixed deposit prior to
maturity. Interest is payable on a monthly basis.
Table 3.6
Fixed Deposit (Individual)
Tenure
Interest Rate
3 month
6.50 Percent
6 month
6.75 Percent
1 year
7.25 Percent
Above 2 Year and up to 5 Years
7.25 Percent
24
Table 3.7
Fixed Deposit (corporate)
Tenure
Interest Rate
3 month
5.75 Percent
6 month
6 Percent
1 year
7 Percent
Above 2 Year and up to 5 Years
7 Percent
(Source: www.adbl.gov.np)
Table 3.8
Fixed Deposit (USD)
Tenure
Interest Rate
3 month
0.75 Percent
6 month
0.9 Percent
1 year
1 Percent
(Source: www.adbl.gov.np)
Table 3.9
Fixed Deposit (ADBL Special)
Description
Interest Rate
ADBL fixed deposit ( 1 years)
7.25 Percent
Sewa Nibrit karmachari FD
7.25 Percent
1 year
1 Percent
(Source: www.adbl.gov.np)
3.10.2 Loan and Advance
ADBL provides credit on competitive terms by way of term loans as well as working
capital of all kinds of productive and income generating activities. ADBL is dedicated
25
to cater to customer’s needs with a personal touch with each loan specifically tailor
made and designed keeping in mind the specific needs of the individual customer. It
provides credit against land and building, cash pledge, stock/receivables, personal
guarantee, corporate guarantee, gold & silver by following the direction of NRB.
ADBL offers the following types of Consumer/Personal Loans:

Global Home Loan

Global Auto Loan

Global Hire Purchase Loan

Global Education Loan

Global Mortgage Loan (Personal)

Loan Against Fixed Deposit (FD)
SME Loan ADBL has the following types of Corporate Loans:

Fixed Term Loan

Working Capital Loan

Overdraft

Import Credit

Export Credit

Demand Loan

Cash Credit

Revolving

Non-Revolving
3.10.3 Fixed Deposits/Lending
ADBL offers wide range fixed deposit facilities. The interest rate varies according to
the maturity period and other provisions such as the special provisions to the elderly
people, widow women, etc.
3.10.4 Trade finance
ADBL offers following types of trade finance:
 Letter of Credits (LC)
A letter of credit is defined as a letter issued by the bank on behalf of the importer. It
is a form of letter from a bank guaranteeing that a buyer's payment to a seller will be
received on time and for the correct amount. In the event that the buyer is unable to
26
make payment on the purchase, the bank will be required to cover the full or
remaining amount of the purchase.

Bank Guarantee
It is non-funded facility provide by the bank for its valued client .ADBL takes
guarantee on behalf of its customer for the third party to make payment up to a
specified amount in case of default .ADBL provide various types of bank guarantee to
its customer such as bid-bond, performance bond, advance payment guarantee,
custom guarantee ,and credit guarantee.
3.10.5 Remittance
Remittance means transfer of money from one place to another for different purpose..
In macro level, this is sustaining our economy and in the micro level it is responsible
for increasing the standard of living of the concerned families and in most of the cases
taking them out from the absolute poverty.
Channel of remittance can be broadly divided into two types formal and informal.
Banks, Post office and Money Transfer Operators (MTO) such as western union
money transfer, ADBL Remit, Instant Cash Global Money Transfer are the active
participant of formal channel whereas Hundi/Hawala or similar service and
self/relative/friends constitutes the informal channel of remittance.
Modes of remittance:
There are various instrument used for fund transfer service in ADBL. Normal
consideration for choice of one particular instrument against other will be based on
factors such as speed, cost, purpose etc.
a) Domestic Remittance
The fund coming to the bank for payment to customer and normally denotes to the
fund coming to Nepal from out of Nepal. Some of the forms of domestic remittance
in ADBL are: Global Remit, IME Remit
b) Outward Remittances
The fund submitted by the customer for transfer to outside the bank normally denotes
to transfer to other country than Nepal but within Nepal is also equally possible.
Some of the forms of outward remittance in ADBL are:
27

Managers cheque
Managers Cheque is the cheque drawn by ADBL Bank on itself. ADBL Bank
issues Mangers cheque at very less charges which can be deposited in any
account with other banks or in customers account at ADBL Bank itself.

SWIFT
SWIFT
stands
for
Society
for
Worldwide
Interbank
Financial
Telecommunication System, which is a reliable communication network
speeding up fund transfer and other financial messages. Through the SWIFT
transfer mechanism, you can transfer your fund to virtually anywhere in the
world.

Anywhere Branch Banking Services (ABBS)
ADBL Bank has used latest banking software "TEMENOS T24" to provide
best services to its valuable customers. With the centralized banking system,
all the branches of ADBL Bank are interconnected. You can either deposit in
account or withdraw from your account through any branches of ADBL Bank
Limited under Anywhere Branch Banking System (ABBS).
3.10.6 Debit Card
ADBL Debit Card is the key to ultimate convenience regarding day to day monetary
transactions providing customers the power of real cash in form of card. Associated
with Smart Card Technology (SCT), it facilitates wide sharing of ATMs under SCT
network. Therefore, ADBL Debit Card can be accessed at any ATMs linked with SCT
for withdrawing cash and balance enquiry.
3.10.7 Electronic Cheque Clearance System
ECC system relies on the electronic data read off the cheque, rather than on the
physical cheque themselves, for purposes of calculating net clearing positions and
customer account posting. No need to physically move the cheque from the branches
to NRB clearing house. Cheque will be truncated at the presenting bank which would
speed up the process of settlement and ultimately alter the clearing cycle. It introduces
a fully electronic solution using the modern digital communications and networking
technologies
to
almost
replace
the
paper
based
process.
Better
reconciliation/verification process as banks/FIs can know their net position at any
point of time. Limited cheque movement means saving on transportation and
manpower cost and possibility of reducing manpower required for transfer and
28
handling of cheque, which is a direct reduction on costs. It increase in operational
efficiency and reduces operational risk of cheque losses and cheque related frauds by
securing the transmission route. It enables both the presenting and the paying bank to
track and audit the processes involved from the point of initiation to the final stage of
cheque truncation and also ease of maintaining and accessing cheque image and other
associated data that will ease day to day operation and for historical data. On-line
notification between the clearing house and banks is done by ECC and possibility of
extended such services to the entire country with no geographical dependency.
3.10.8 Other facilities

For facilitating foreign trade, banks undertake to sell and purchase foreign
exchange.

Bank provides locker facility to their customers for the safe custody of
valuable assets of their customers such as gold, silver, legal documents, etc.

ADBL is providing self-service banking to its esteem customers through VISA
Debit card associated with Smart Card Technology.

Bank provides online banking facility (E-banking, SMS banking).

Free SMS alert system
29
CHAPTER IV
ANALYSIS OF ACTIVITIES DONE
The internship was carried out in ADBL, Sallaghari branch where the internee was
placed in the Customer Service Department (CSD). Every activity that is related to
customer service was carried out which helped in gaining sufficient knowledge
regarding the various activities carried out in CSD. This internship report focuses on
the activities involved in daily operation which has been gained through continuous
observation, general conception and experience gained through the internship period.
4.1 Introduction to CSD
Customer service is a series of activities designed to enhance the level of customer
satisfaction- that is, the feeling that a product or service has met the customer
expectation. Customer is the soul of the organization and they are the reason of
existence of any organization. Customer service is an essential part of the business
team and so every business do have their own customer department which aims to
customers on their concerns, queries, suggestions and complaints. Customers are the
center of the business that is why one department is established to enable to hear the
voice and improve the sales, quality and delivery of efficient customer service.
Customer service department is the most important department of any bank which
deals with the customer. It provides all the necessary information to the customers and
responds to the queries of the customers giving appropriate solution to their problems
promptly. It is one of the busiest departments in the bank and is the place where
customers make the first contact. It is the place which makes an early impression to
the clients. The image and reputation of the bank depends upon effective functioning
of this department. CSD require a competent human resource to cater to the needs of
increasing number of customers. Moreover, CSD is the first place to get generalized
information and acquire knowledge about the general functions of a bank.
4.2 Activities Performed in the organization
The various activities that are usually carried out in Customer Service Department of
ADBL, during internship are:
30
4.2.1 Valuing Customers
Customers are individuals who want to transact with bank by using the services given.
They are the one whose needs should be fulfilled. As every customer is the reason of
existence of the bank, they should be valued and given proper and comfortable
services. So, internee responsibility was to be polite and warm to customers with
positive attitudes towards them.
4.2.2 Handling customer queries
Valuing and greeting customers was not enough, each and every query was supposed
to be handled with a positive frame of mind. Being in this department, internee was
responsible for providing detail and accurate information regarding the products and
services offered by bank. This may require about organization’s branch networks,
office time, products and services, documentation process and so on. In CSD, internee
provided information related to various products and services such as account
schemes, new product, account opening, internet banking, locker facility and so on
according to needs and queries of customers.
4.2.3 Distribution of different forms
In CSD there are various types of forms available for different types of schemes. So,
it was internee duty to provide the customer with needed form and also guide them in
filing it. The different forms available are:

KYC Form

Account Opening Form

Fixed Deposit Form

Check Book Lost Form

SMS/ Internet Banking Form

Debit Card Application Form

Balance Certificate and Bank Statement Form

Account Dormant/ Activation Form
4.2.4 Account Opening
Account opening in the first step for every customer to establish a relation with bank.
It is a most common activity that is carried out in this department. So, intern has to be
aware about every type of account available and should have the appropriate
information about it. It is the duty of staffs of CSD to give complete information
31
about any type of account regarding their nature, interest rates changes (if any)
associated and their opening process. The required documents should be checked to
go further for account opening process. The required document for opening account is
as follows:
Personal Account

Citizenship Certificate or Passport

2 PP size photos

Receipt of utility bill payment
Minor Account

Copy of identification of Guardian

Copy of birth certificate of minor account holder

Photograph of both guardian and minor

Receipt of utility bill

Guardian’s signature
Sole Proprietorship

Registration Certificate

Tax Certificate

Citizenship Certificate of the Proprietor

2 PP size photos
Partnership Account

Partnership deed

Firm Registration Certificate

Tax Certificate

Citizenship Certificate of Partners

2 PP size photos of partners
Limited Company Account

Registration Certificate

Memorandum & Articles of Association

Name, Address of directors & Office Bearers of the Limited Company with
copy of Citizenship Certificate
32

Name & Signatures of the Persons Authorized to Operate an account

Operation Commencement Certificate (for Public Ltd. Co.)

Resolution of Board of Directors regarding opening of the account

Tax Certificate

2 PP size photos
Club Society & Association Account

Registration Certificate

List of Office Bearers

Resolution Regarding Opening & Conduct of Account

Name & Signature of the persons authorized to operate the account

2 PP size photos
For account opening, internee helped the customer in filing up the form. After filing
up the form the in charge in the CSD verified the photocopy of documents with the
original copy. The signature for the account operation and a photo is scanned and kept
in the record along with the customers details in T24 Software. Then after final
verification account is opened with account number.
4.2.5 Handling telephone calls
The staff in CSD is responsible for handling telephone calls both incoming and
outgoing. Internee was responsible to handle call of customers and answering their
queries as well as to receive and transfer call from different departments.
4.2.6 Preparation and issuance of cheque book
Another task of CSD is to prepare and distribute cheque books to the customers. It is
given to saving accounts and current accounts. For a new saving or current account, a
cheque book with only 10 slip is prepared and is issued. But for existing saving
account up to 20 slip is issued depending upon the transaction and for current account
up to 50 to 100 slip is issued.
To prepare a cheque book, at first the cheque is issued using the software and then the
signature is verified by in- charge of operation department and then only it will be
printed. The printed cheque is the stitched with one requisition slip, record slip and
cover where name and account number of account holder is written and cheque book
is issued.
33
The check book issued is recorded in register along with the cheque number, account
number, account name and then is issued to respective account holder in their request
after verifying the signature in the register. In case the representative has collected the
cheque in absence of account holder then first signature is verified and the cheque is
issued and acknowledgement form is attached in the cheque. The form has to be
signed by customer and is presented in the bank for activation of cheque book. If the
cheque book is lost then the customers have to fill up check book/ requisition slip lost
form where Rs. 500 will be charged and previous cheque are destroyed and new
cheque will be issued having 10 slip.
4.2.7 Filing
Filing is done at the end of every activity but yet it is an important activity. It is to
maintain all the records in the file. The account opening form after the account
number is assigned and after signed by authority head is filed I n respective schemed
file serially irrespective to assigned account numbers. The e-banking request form and
its receipt, mobile banking form,
sign change application, balance certificate,
requisition slip, request for ATM are filed in different files in accordance to which it
is maintained.
4.2.8 Photocopying the documents
In CSD, photocopying of document is carried on usual basis. Internee was given
responsibility of photocopying the documents required for different purpose.
4.2.9 Account information and balance inquiry
The internee also handed the query of customer by providing the information like
their account balance, cash being debited or credited and other balance inquiry as put
forwarded by customer.
4.2.10 Other activities
There were other activities too to be carried out in CSD which are as follows:

The internee observed how the data was entered into T24 software for account
opening.

The internee also observed the process of MICR cheque printing.

The uploading of signature into the system was also observed by the internee.

The internee also observed how the data was entered into the system for SMS
activation and debit card application form.
34
4.2.11 Problems identified in Customer Service Department
During the course of internship following problems were identified by the internee
through regular observation:

Various terms used in the banking operation were new for the internee.

Overload of work is faced generally during Fridays, Sundays and the resuming
days after any holidays. It is therefore difficult to provide immediate services
to customers.

Customers who visited bank for opening account did not bring one or the other
document needed for processing.

It was very difficult to convince the customers who came to receive cheque
book from overseas without bringing any identification card or who only
brought photocopies of it.

Difficult to convince customers to fill KYC form

For scanning purpose, there was only one scanner which was working and
employees from other departments also came with a request to scan their
respective documents which ultimately delay the work of CSD.

There were many files which were not filed in chronological order or on the
basis of client customer code numbers.

This department lacks enough space for the customers. It looked like crowd
when there were many customers visiting at a time.

There were times when the T24 system would fail to work and many of the
banking transactions would be put to halt for some time or even whole day.
This further delayed the work.
4.2.12 Problem solved in Customer Service Department
The problems identified were solved to some extent. Some of the activities done to
solve the problems were as follows:

With proper supervision and guidance, internee was able to grab knowledge
about various terms used in banking operations.

Providing information to customers regarding the documents that will require
for account opening.

Making customer feel comfortable and proper attention of the employees
along with the satisfaction of demanding nature of the customers.
35

Informing customers about the cheque books has been made through phone
calls.

Helping customers fill up account opening forms, Debit card forms, cheque
request slips, SMS banking forms.

Making customers understand about new circular of NRB about KYC.

Files were arranged and old files were taken away to store room so that some
more space for filing could be created.
4.3 Problem Identification
During the internship period many customers were satisfied with the Agricultural
Development Bank’s service. If the few issues are ignored, there were almost nil
customers who complained on the Agricultural Development Bank’s performance.
But, being a service organization some issues also hamper the overall image of the
organization. As per the analysis, there were basically two types of problems stated by
the customers.

Agricultural Development Bank has not focused student segment: Many
youngsters complained that they have small petty cash but Agricultural
Development Bank has not provide such specific product totally targeted
towards them.

Problems with ATM machines: Card capturing and no withdrawals were the
problems faced in ATM.
4.4 Solution Alternatives
No matter if the problem is minor or serious it always retards the effort of an
organization by resulting lower efficiency. But it is always necessary to take problem
as an opportunity of growth with right solution. The solutions to the problems
identified by me are discussed further.
4.4.1 Introduce different types of saving accounts targeting students:
Large numbers of commercial banks are operating in Nepalese market, Agricultural
Development Bank wants to increase its market competency. Every bank is focused
toward developing new products by particularly targeting the specific segment of the
customers and are investing huge sum of for the product development and also for
promoting the products. Though, Agricultural Development Bank has also introduced
lots of product targeting the market but has failed to target students’ segment, i.e.,
36
Student account. So, it is recommend to introduce saving account basically focused
toward students and their benefits.
In order to develop new product company should go through market research and
proper promotion plan should be implemented. There are varieties of promotional
tools available such as advertising, public relations, sales promotion, direct marketing
and personal selling.
Though there are various promotion mixes available, it does not mean that all should
be used or all are useful to promote a particular product. In the case of Agricultural
Development Bank, we think that advertisement and word of mouth has huge impact
among the target customers segment. Other tools also may be useful but they only
have little impact in case of increasing the product awareness.
Advertising through radio, newspapers, hoardings etc. will help to generate new
customers which will help to increase volume by spreading their experience to others.
Customers want to use service when he/she sees the usefulness of the specific
product. If it is useful to him/her then only he will be ready to use the product
therefore Agricultural Development Bank has to look for very small needs of the
Students. If Agricultural Development Bank is able to develop such product and
promotes its product then consumers will be aware about its benefit which will help to
build the consumers’ attraction towards Agricultural Development Bank.
Just giving the advertisement for certain period and stopping it does not give better
result. So, it is recommend that Agricultural Development Bank should maintain the
consistency in promoting the product. It can reduce the frequency of advertisement
but should not stop promoting.
4.4.2 Strategy for Improving ATM Network:
With the development in banking habit in Nepalese people the number of debit card
user for withdrawing and balance inquiry has increased in huge number. As ATM is
one of the highly used services by the banking customers, every bank should make
sure that it is operating properly. However, during the internship period, the intern
came to know that lots of customers of Agricultural Development Bank are facing
problem with ATM. As per the study, it is known that there are basically one reason
for ATM problem and that is Hardware (ATM machine itself)
37
As discussed with network provider majority of problem occurred due to the machine
itself because even the network is working properly machine doesn’t provide money
properly. While discussed with the ATM operators of Agricultural Development
Bank, they said that the machine is older and its operating efficiency has gone down.
Therefore, Agricultural Development Bank is suggested to replace the older machine
with newer one.
Agricultural Development Bank can follow the below steps for replacing the machine:

Vendors bidding should be held at Agricultural Development Bank for
purchasing new machine. This will provide cost effectiveness for purchase of
machinery. (15 days)

After the bidding the proper vendor should be identified.

Order should be placed for the purchase of new machine.

Specific time duration for the delivery should be allotted for the vendor for the
purpose of quick delivery.

Installation of the machine should be started. (Machine should be installed in
the area where Agricultural Development Bank’s customers’ traffic is high).

After the installation, every CSD staffs should try to build confidence on
customer’s mind regarding Agricultural Development Bank’s ATM.
4.5 SWOT Analysis
SWOT analysis is an acronym that stands for Strengths, Weaknesses, Opportunity and
threats. This is a careful evaluation of an organization’s strengths to avail an
opportunity by overcoming its weaknesses and phasing out all the threats to its
survival. Because of dynamic and challenging business environment, ADBL also has
its strength, weakness, opportunities and threats. They are listed as follows:
Strengths
The strength of ADBL can be enlisted as follows:

Provides customized and reliable service.

Goodwill of the bank is high.

Broad customer base.

Use latest technology to provide its services. The services are prompt and
convenient due to the use of latest technology.

Strong corporate culture that values customer satisfaction and quality services.
38
Weakness
The weakness of ADBL that it should overcome can be listed as follows:

Available of only VISA based debit card or limited card services. Credit card
has not been used as a product of ADBL.

Less advertisement and publicity about the bank and its products and services.
Opportunities
The opportunities of ADBL due to which it can grasp can be enlisted as follows:

The increasing need of banking in the growth of country’s economy.

Increase in number of industries involved in trading of goods and services

Development of advanced technology to increase efficiency of business.
Threats
The threats or challenges the bank is facing are as follows:

High competition from other increasing numbers of commercial banks.

Political instability within the country

Innovative products and services of the competitors.

Upgrading of new technology may influence the banking activities.
39
CHAPTER V
CONCLUSION AND LESSON LEARNT
5.1 Summary
In order to fulfill the partial requirement of fulfillment of Business of Bachelor
Administration of Tribhuvan University, BBA Program, the intern did eight weeks
internship at ADBL, Sallaghari. Internship could be regarded as first step of career
development the general objective of this study is to develop the managerial behavior
and skills through observation and work experience in the organization along with
understanding of the general banking activities, culture, and policies. The other
specific objectives are to understand the overall banking operations, to get familiarize
with the products and services of ADBL. The study was also aimed to get practical
exposure to the real life working situation and to expose the experience achieved
during internship period.
The intern got the opportunity to work in one of the finest bank in Nepal, ADBL. The
internship lasted for eight weeks for the internee. The internee was placed in CSD.
The internee worked on day to day activities as per instructions and supervision of
staff. Under the guidance of the supervisor and the staff members the internee was
able to experience various activities that are conducted in customer service
department. Although this study was conducted in short span of time, so whatever the
internee could gain knowledge of business of such organizations has tried to achieve
so. The internee got vital support by the effective working environment and highly
cooperative and supportive staff members in learning and experiencing process. The
internee was able to know about the basic functioning of the bank like opening bank
account, issuing of cheques and balance statements. This has enhanced the practical
knowledge and developed interpersonal skills, professional qualities, communication
skills, and team work.
In this study, the internee used both primary and secondary data that have been
collected from various sources. The main source of primary data is day to day
observations in activities, problem encountered and instruction of supervisors, queries
and personal discussions etc. Annual report, websites of NRB and ADBL, newsletter
are secondary data.
40
5.2 Lesson Learnt
The eight weeks of internship program taught several lessons about the banking
service and system. The internship program helped to learn the dynamics of work
culture, professionalism and system in the business world. Most of the things learnt
during this period are related to practical implications and knowledge exposures. The
eight weeks internship period was not sufficient enough to understand the banking
system as a whole. However, this period had proved valuable in understanding the
services provided in CSD.
5.2.1 Lessons learnt in Customer Service Department
The lessons learnt in customer service departments are as follows:

Procedures for form’s fulfillment of new account, issuance of cheque and
balance certificates.

Learnt to prepare cheque book and the necessary entries to be made after
preparation of cheque book.

Learnt to develop good interpersonal skills, patience, and harmonious
relationship with the customers.

Build up the confidence to deal with the customer and handle them.

Learnt that interaction and communication is very important in the real
workflow within the department and within the organization.
5.3 Conclusion
Internship is a starting point of a professional career for any students. Internship helps
the students to pre-know the challenges, complexities and compositeness of the world.
So it helps them to develop themselves into a dynamic and attractive personality. This
report has been prepared on the basis of observations and experience gained during
the internship period. It gives general idea of overall banking business. Often it is
thought that Nepalese service industry lacks professionalism and sincerity towards
one’s knowledge and expertise, but seeing the work culture of ADBL, one can state
that the service industry has indeed developed and has become more professional. The
Nepalese banking industry is coming up with newer and innovative products.
Within the internship period and the preparation of this report, Internee learnt a lot
about the banking activities of customer service and ECC department of ADBL. The
internship has been fruitful in many ways. Internee knew only little bit about the
41
banking earlier, but internship has helped a lot to know about the banks and its
operation. Working at ADBL gave an opportunity to gain valuable insights into the
working of a real organization. The experience at the bank will surely guide in future
career. Intern is grateful and proud to have had worked in a reputed organization like
ADBL.
There was no such uncomfortable situation during the internship program. To be more
precise, the working environment at ADBL was very congenial and the staffs were
very supportive. So, it was much easier for the internee to gain the knowledge and
information of the department. During internship internee have learnt a lot of other
aspects other than the banking such as to socialize with the people (including staffs),
to deal with the senior staffs, and to deal with the intern colleague so as to make the
working environment cozier and friendlier. This internship program also helps in
learning the behavioral issues which are most important within and outside the
organization.
ADBL is excellent in term of their services. ADBL is one of the most promising
banks today and have an opportunity to increases their market share by improving
their customer satisfaction by overcoming their weakness and doing their best to
retain quality services. Overall, Agricultural Development Bank Limited is excellent
in terms of their services despite with some pros and cons with the issue related to
customer satisfaction.
5.4 Recommendations
After working for eight weeks as an intern in the ADBL, the following are some
recommendations that can help ADBL to provide better services.

Customer perception about banking service is mainly determined by the front
desk staff’s behavior with them. Thus, ADBL should focus on positioning
itself as premier bank with cordial customer relationship. It should focus on
retaining existing customer with better customer service and satisfaction.

Higher preference should be given to collect and address customer’s queries
because the customers are the important part of the business. There should be
a separate department for maintaining customer relation and for looking after
their problems and queries.
42

It is also recommended to provide relevant training and orientation to the staff
of CSD with a view to motivate and upgrade their skills and knowledge on
customer service so that they can cope up with the change of taste of
customers over the period.

The ADBL management could also think of a policy that insists the top
management to follow inter-department transfer after certain interval. It will
help management to eliminate the frustration and monotonous of staff because
inter- department transfer could help staff minimize their monotonousness that
emerges because of being with the same department for a long period of time.
REFERENCE
Gascoigne, B. (2001, January 1). History of banking. Retrieved from History World:
(http://www.historyworld.net/wrldhis/PlainTextHistories.asp?groupid=2450&
HistoryID=ac19&gtrack=pthc)
Agricultural Development Bank Bank LImited. (2005, July 15). About us. Retrieved
from
AGRICULTURAL
DEVELOPMENT
BANK
Website:
(http://laxmi.laxmibank.com/about-us.html?tab=personal)
Shrestha, M.K. &Bhandari, D.B. (2008). Financial markets and Institutions.
Kathmandu: Asmita Publication.
Manadhar, K.D. &Pokhrel, S.B. (2009). Marketing Financial Services. Kathmandu:
Asmita Publication
Thapa, K. &Parajuli, B. (2010).Financial Institutions and Markets. Kathmandu:
Januka Publication.
Shrestha,Sarada (2011) Report on clearing department, Kathmandu: An unpublished
intern report submitted to FOM, TU.
Adhikari, R. (2012, April 25). Banking in Nepal: A history of banking system in
Nepal. Retrieved from ImNepal.com: http://www.imnepal.com/banking-innepal-a-history-of-banking-system-in-nepal/
Agricultural Development Bank Limited.(2014). Annual Report. Kathmandu: ADBL
adbl.gov.np. (n.d.). Retrieved from http://www.adbl.gov.np/adbl_adbl-savingaccount.html
DeMichele, T. (2016, December 19). The word “bank” comes from the italian word
for bench. Retrieved from Fact / Myth: http://factmyth.com/factoids/the-wordbank-comes-from-the-italian-word-for-bench/(n.d.). Retrieved from Nepal
Rastra Bank: http://www.nrb.org.np/
https://www.adbl.gov.np/publications/reports/
https://kathmandupost.com/columns/2020/04/26/covid-19-impact-on-the-bankingsector
APPENDICES
Appendix 1: Commercial Banks of Nepal
S.No. Commercial Banks
Establishment
Head Office
Date(BS)
1
Nepal Bank Limited
1937-11-15
Kathmandu
2
Rastriya Banijya Bank
1966-01-23
Kathmandu
3
Nabil Bank Limited
1984-07-12
Kathmandu
4
Nepal Investment Bank Limited
1986-03-09
Kathmandu
5
Standard
Chartered Bank Nepal 1987-02-28
Kathmandu
Limited
6
Himalayan Bank Limited
1993-01-18
Kathmandu
7
Nepal SBI Bank Limited
1993-07-07
Kathmandu
8
Nepal Bangladesh Bank Limited
1994-06-06
Kathmandu
9
Everest Bank Limited
1994-10-18
Kathmandu
10
Bank of Kathmandu Limited
2016-09-01
Kathmandu
11
Nepal Credit and Commerce Bank 1996-10-14
Siddarthanag
Limited
ar
12
NIC Asia Bank Limited
2013-06-30
Biratnagar
13
Machhapuchre Bank Limited
2012-07-09
Pokhara
14
Kumari Bank Limited
2001-04-03
Kathmandu
15
Agricultural
Development
Bank 2002-04-03
Birgunj
Bank Limited
16
Siddhartha Bank Limited
2002-12-24
Kathmandu
17
Agriculture
Development Bank 1968-01-21
Kathmandu
Limited
18
Global IME Bank Limited
19
Citizens
Bank
2014-04-09
International 2007-04-20
Birgunj
Kathmandu
Limited
20
Prime Commercial Bank Limited
2007-09-24
Kathmandu
21
Sunrise bank Limited
2007-10-12
Kathmandu
22
Nepal
Nepal 2015-10-18
Kathmandu
2014-09-15
Kathmandu
Bank 2012-02-15
Kathmandu
Merchant
Bank
Limited
23
Prabhu Bank Limited
24
Agricultural
Development
Bank Limited
25
Century Commercial Bank Limited
2011-03-10
Kathmandu
26
Civil Bank Limited
2014-04-14
Kathmandu
27
Mega Bank Nepal Limited
2010-07-23
Kathmandu
Appendix 2: Organizational Structure
Appendix 3:Financial Statement for the month of chaitra or Fiscal year 2077