INTERNSHIP REPORT ON SANIMA BANK LIMITED
POKHARA BRANCH
SUBMITTED TO
Nepal Tourism and Hotel Management College
affiliated to Pokhara University
Gairapatan, Pokhara
SUBMITTED BY
Bibek Shrestha
P.U. Regd. No: 2009-2-45-0128
P.U. Roll No: 10450151
In partial fulfilment of the requirements for the degree of
Bachelor of Business Administration-Banking & Insurance (BBA-BI)
Pokhara, Nepal
July, 2013
2
Nepal Tourism and Hotel Management College
POKHARA UNIVERSITY
RECOMMENDATION
This is to certify that the internship Report:
submitted by:
Bibek Shrestha
entitled
An Internship Report on SANIMA BANK LIMITED
has been prepared as approved by this Campus. This internship assignment
report is forwarded for examination.
Date:
Supervisor
Mr Bhola Adhikari
3
ACKNOWLEDGEMENTS
An internship report entitle "AN INTERNSHIP REPORT ON SANIMA
BANK LIMITED" has been prepared to fulfill the partial requirement of the project
report of BBA-BI 6th Semester.
Foremost I would like to express my deep gratitude to Sanima Bank Limited
for providing the exciting opportunity to be one of them and giving me through
guidance and opportunity to move ahead with internship objectives.
I would like to extend my gratitude to Mrs Kabita Gurung, Assistant Branch
Manager, for providing guidance and motivation to me. I‟m also grateful to all staffsMr Sarad Timalsina, Mrs Nirupama Poudel, Ms Goma Karki, and Mrs Kausilya Pun
for their valuable co-operation, guidance, direction, and continuous support
throughout the internship period.
I would like to thank Mr Bhola Adhikari and the entire faculty members for
supervising me and providing necessary guidelines to complete the report.
I would like to extend my heartfelt thanks to all who assisted with their
valuable suggestions and ideas while preparing the report.
4
TABLE OF CONTENTS
Recommendation
i
Acknowledgements
ii
List of Tables
iii
List of figures
iv
Abbreviation
v
Executive Summary
vi
CHAPTER I INTRODUCTION
1-4
1.1 Background of the study
1
1.2 Objective of the study
2
1.3 Nature and source of data collection
2
1.4 Significance of the study
3
1.5 Limitation of the study
4
CHAPTER II ORGANIZATION ANALYSIS
5-22
2.1 Background of the organization
5
2.1.1 Introduction to Pokhara branch
6
2.1.2 Capital structure
6
2.1.3 Shareholding pattern
7
2.2 Objectives of the organization
8
2.3 Service offered by Sanima bank limited
8
2.4 Product of Sanima bank
13
2.5 Organization structure of Pokhara branch
20
2.6 SWOT analysis
21
CHAPTER III STUDY RESULT
22-29
3.1 Summary
24
3.2 Major findings
26
3.3 Conclusion
27
3.4 Interest rate
28
CHAPTER IV RECOMMENDATION
30-31
4.1 Recommendation to the organization
30
4.2 Recommendation to the college
31
5
LIST OF TABLES
Title
Page No
2.1 Details of Locker Facilities
11
2.2 Details of Sanima Premium Saving
14
2.3 Details of Sanima Fixed Deposit
14
2.4 Details of Sanima Nari Bachat
16
2.5 Details of Salary Deposit Account
18
2.6 Details of Sanima Prime Saving
19
2.7 Details of Sanima Sulav Bachat
20
3.1 Details of Saving Deposit Account
28
3.2 Details of Fixed Deposit Account
29
6
LIST OF FIGURES
Title
Page No
2.1 Shareholding pattern of SBL
7
2.2 Organizational Structure of Pokhara Branch
21
7
ABBREVIATIONS
A/C
=
Account
ABBS
=
Any Branch Banking Service
AD
=
Anno Domini
ADSL
=
Asymmetric Digital Service Line
ATM
=
Automated Teller Machine
BBA-BI
=
Bachelor in Business Administration-Banking & Insurance
B.O.D.
=
Board of Directors
CSD
=
Customer Service Department
GSD
=
General Service Department
INR
=
Indian Rupee
LC
=
Letter of Credit
NRN
=
Non-Residential Nepalese
NTC
=
Nepal Telecom Corporation
P.A.
=
Per Annum
P.U.
=
Pokhara University
PIN
=
Personal Identification Number
PSTN
=
Public Switched Telephone Network
SBL
=
Sanima Bank Limited
SCT
=
Smart Choice Technology
SMS
=
Short Messaging Service
SWIFT
=
Society for Worldwide Interbank Financial Telecommunication
TV
=
Television
8
EXECUTIVE SUMMARY
Sanima Bank Limited commenced its operation in 2004 promoted by the
Prominent and dynamic Non-Resident Nepalese (NRNs) Businessman. Sanima was
the first private sector national level development bank in the country to be
capitalized at NPR 320 million. Sanima received the operating license from NRB to
function as a “A” Class Commercial Bank & has achieved the triumph to establish as
s 32nd Commercial Bank of Nepal. The current shareholding pattern of the Bank
constitutes of promoters holding 70 percent & general public holding 30 percent. The
head office of the bank is located at Naksal; Kathmandu. The bank has increased its
paid capital to RS 2.02 billion from some 800 million to upgrade into commercial
bank.
An internship report entitle "AN INTERNSHIP REPORT ON SANIMA
BANK LIMITED" has been prepared to fulfill the partial requirement of the project
report of BBA-BI 6th Semester. The study shows the importance of the internship
program. It will help the students to be fully aware of the real world practices before
entering into the market as a fresher.
The general objectives of internship program are to relate theoretical studies
and to implement it on real job experience, to get the outer exposure and to study the
entire services provided by the organization. During the internship period in SBL, the
real life job experience was achieved. I spent most of the time in CSD. During the
internship substantial work was done which included preparing cheque, preparing
account statements, making overdraft statements etc. This is necessary for a student of
BBA-BI in order to learn the practical perspective of real job as they have to compete
in the competitive market and should prove themselves. Internship program is a
gateway for career development. During the internship period theoretical knowledge
which was learned in the college was implemented practically.
9
CHAPTER I
INTRODUCTION
1.1 Background of the Study
The students of Bachelor on Business Administration with Banking and
Insurance of Pokhara University have been assigned to perform 6 weeks internship on
a particular institution and to make an internship report accordingly. This task has
been assigned by Management Faculty of the Pokhara University as a partial
fulfillment of the requirement for the degree of BBA-BI program. Faculty of
Management; Pokhara University has its ultimate objective of educating students for
professional pursuits in business, industry, government, and non-government sectors.
It is further dedicated for increasing the knowledge of business, service and public
administration. The trend of internship has been continued since the establishment of
P.U. in the year 1997. It aims to give students the opportunity to realize and
understand the real life business and professional performance and problems on
different activities of financial institution.
An internship is a work-related learning
experience for individuals
who wish to develop hands on work experience in a certain occupational field. It involves
working your expected career field. It gives the students a valuable experience and
a chance to get exposed to the business environment. Interns are usually college or
university students, but they can also be high school students or post graduate adults
seeking skills for a new career. Student internships provide opportunities for students
to gain experience in their field, determine if they have an interest in a particular
career and create a network of contacts.
This internship program was conducted for three months; it includes three
months internship observation and practical output. As a student of BBA-BI, We got
an opportunity to do our internship in Sanima Bank Limited. During these 6 weeks we
visited to every departments of the organization and observed how the department
functions. This bank commenced its operation from 2004 A.D. It is the bank
promoted by prominent and dynamic Non-residents Nepalese businessmen.
10
Our internship was of three months on Pokhara Branch of Sanima Bank
Limited. In these months, we confronted with many knowledgeable, professionals,
logical and real systematic approach on every department of bank which can be
applicable for our future career. We also got the opportunity to work with staffs and
have got the chances to enlarge our knowledge practically.
1.2 Objectives of the Study
The general objective of doing internship is for the partial fulfillment of the
requirement for the degree of BBA-BI. The purpose of intern is to give practical and
professional knowledge about the banking and insurance sectors to the students.
Beside this, the specific objectives are as follows:
 To study the entire banking procedures.
 To examine about the different products and services offered by SBL.
 To examine the overall activities of customer service department.
 To acquire knowledge on banking activities and environment.
 To understand the practical implication of academic knowledge.
 To acquaintance with the overall organizational environment of SBL.
1.3 Nature and source of data Collection
Data is value collected through record keeping or pooling, observation, or
measuring. It includes texts and Numbers, Figures and Map, Photographs and Picture.
The nature of the report is qualitative and quantitative and the source is primary and
secondary. A systematic and scientific methodology always helps in collecting the
qualitative and quantitative data. We must consult with various people, booklets,
news, newspaper and other source to gain correct data. This report is maintained on
the basis of primary as well as secondary sources which are given below:
i. Primary data
Primary source of data are known as the data which are collected through
observation and direct contact. They are not derived from any other sources. The
primary data are the information collected during the internship period by the
11
observation and involvement. Most of the primary data are collected through the
following sources:
 Day to day operation with staff of SBL.
 Direct dealings with the customer in the bank.
 Personal involvements in the activities of bank.
 Observations of the bank and its environment.
 Daily activities during internship.
ii. Secondary data
The secondary data is one which has already been collected by a source other
than present investigator. Secondary data include both raw data and published
summaries. Documentary secondary data include written material such as; books,
journal articles, newspapers as well as administrative and public records. These types
of data are collected through following ways:
 Annual report of Sanima Bank Limited.
 Broacher of Sanima Bank Limited.
 Website of Sanima Bank Limited.
 Different books and newspapers.
 TV and radio advertisement.
 Hoarding boards.
 Review of the related past records.
 Opinion of senior teacher colleagues and others.
1.4 Significance of the Study
The major importance of this study is to provide information about the
purposes of doing internship, the procedures of transaction made in the bank, handling
the customers. It gives the opportunity to be familiar with the real world with the
knowledge of overall banking system. It will be useful in identifying the problems and
the process of solving them. It helps to use the theoretical knowledge in the practical
field, it helps to build the communication skills of student with customer, and it
provides the opportunity to know the real world of management.
12
1.5 Limitation of the Study
Nothing is perfect. It is true everything must have the limitations. Although
various efforts have been made to collect data and information for the internship
report. Sometimes authentic data for analysis couldn‟t found as the prompters of the
project think it can disclose their industries secrecy.
The various limitations of the study are as follows:
 Though the both primary and secondary sources of data have been used in
the report they lack precision due to securely problem of the company.
 The information gathered was only of Sanima Bank Limited; information
of other bank was not possible.
 The workload of employee and supervisor was quite hard to give proper
guidance to the intern.
 The report may not have complete information about the other department
of the bank. Almost most of the time was spent on CSD.
13
CHAPTER II
ORGANIZATIONAL ANALYSIS
2.1 Background of the Organization
Sanima Bank Limited commenced its operation in 2004 promoted by the
Prominent and dynamic Non-Resident Nepalese (NRNs) Businessman. Sanima was
the first private sector national level development bank in the country to be
capitalized at NPR 320 million. Today Sanima has completed 8 years of consistent
profitable operation. Its new building is located at Narayan Chaur Kathmandu. In the
pursuit of sustainable growth, Sanima has 24 full-fledged branches within and outside
the Kathmandu Valley and has further plans to expand its reach in the various part of
the country. (Sanima, 2013)
Sanima received the operating license from NRB to function as an “A” Class
Commercial Bank & has achieved the triumph to establish as s 32nd Commercial Bank
of Nepal. The current shareholding pattern of the Bank constitutes of promoters
holding 70% & general public holding 30%. The head office of the bank is located at
Naksal; Kathmandu. The bank has increased its paid capital to RS 2.02 billion from
some 800 million to upgrade into commercial bank. (Sanima, 2013)
Sanima provides one window financial solutions to the customers with the
wide range of Products and Services. Sanima not only offers readymade products and
services, but also offers customized services to better suit the needs of the individual
customer. (Sanima, 2013)
Sanima use centralized banking software called PUMORI BANKING
SOFTWARE. This software supports modern banking facilities like Tele banking,
Internet banking, SMS banking, ATM services and many more. The sophisticated
communication technology has interlinked its branches into centralized database
system and enables the bank to provide anywhere banking facilities to its valued
customers. It is also known as Any Branch Banking Service. Sanima is committed to
exceed customer expectations in all areas of its Business through consistent
processes, innovations and Improvements. (Sanima, 2013)
14
2.1.1 Introduction to Pokhara Branch
Despite the tough competitive banking environment with on-going arrival of
new banks and financial institutions, Sanima has been able to extend its operation on
different area of country. The bank has established its branch at Pokhara. Though this
branch is located at Newroad, Pokhara but this is named as Pokhara branch.
The personnel working in this bank are six in number. They work as a family
member to make the working environment friendly, motivating and supportive. It
consists of department such as CSD, teller, credit, remittance etc. The CSD carries
major activities such as disseminating of information, opening an account, closing an
account, cheque printing, prepare statement of balance, receiving phone calls, balance
enquiry and assist illiterate one to withdraw their money. The teller department carries
out function such as clearing cheques, receiving deposits, providing payments etc.
The credit department is responsible for investing in different investment proposals
such as business loan, auto loan, hire purchase loan, project financing, education loan
etc. On other hand, remittance department is responsible to send and receive funds to
or from various places, transfer funds through various modes like draft; fax transfer
etc. The branch is interlinked by the centralized banking software named PUMORI
which helps it to carry Any Branch Banking Service. The Pokhara branch also
provides facilities like SMS banking, internet banking, ATM/Debit card, ABBS etc.
The branch always value their customer and pledge to deliver all products and
services in a customized and simplified manner in line with their slogan of “Banking
Simplified”.
2.1.2 Capital Structure
It is very important to have capital in order to establish and run the business.
 Authorized Capital : Rs. 2,10,00,00,000
 Issued Capital : Rs. 2,01,60,00,000
 Paid-up Capital: Rs. 2,01,60,00,000
15
2.1.3 Shareholding Pattern
Fig 2.1 Shareholding pattern of SBL
Public
30%
Promoter
70%
Source: www.sanimabank.com.np,2013
Shareholding pattern shows how shares of a company are split among the
entities that make up its owners. It helps to control the decision making power of the
company, election of the Board of Directors of the company, controlling the
management of the company.
Promoters may include domestic and foreign promoters. Promoters are the
entities that floated the company, and to a large extent have seats on the Board of
Directors or the management.
Public may include institutional investors like Banks, Financial Institutions,
Insurance Companies, Mutual Funds , Foreign Institutional Investors and others like
private Corporate bodies, Trusts, Foreign Companies , you and me.
The shareholding pattern of Sanima bank states 70 percent promoters and 30
percent public. It means that the promoter have high authority and right then public.
We can say that the promoter have the control over the management, they have right
to declare the B.O.D and other decision.
16
2.2 Objectives of the Organization
Every organization has mission and objective. Generally on organization
mission is based on the customer satisfaction. It describes an organization‟s present
capabilities, customer focus activities, business makeup which leads to the fulfillment
of its objectives. Similarly, Sanima Bank strives to provide banking and financial
solutions in a simplified way with customer focus while adding value to stakeholder‟s
interests.
The objective should not be contrary with strategic management. Strategic
management helps to analyze environment. It is the string of decision and actions
which leads to the development of an effective strategy or strategist to help achieve
organizational objectives. A game plan is needed to accomplish according to the
objectives. Successful organization continuously adapt to changing markets place.
This can change the strategic plan the objective made. As commercial bank Sanima
Bank has the following objectives.
 Satisfied Stakeholders
 Motivated Workforce
 Quality Assets
 Well Diversified Portfolio
 Optimum Return to Shareholders
 High Standards of Corporation Governance
2.3 Service offered by Sanima Bank Limited
Sanima Bank provides full fledge commercial banking services to its clients.
Service excellence and quality is the main theme of the organization. Service is
anything that can be offered in a market to satisfy need or want of the customers.
Though it‟s also challenging to balance standardization and personalization for both
efficiency of the organization and satisfaction of its customers. In case of banking
sector most of the services are intangible, ideterogeneous and financial in nature.
Sanima offers different products and services to meet the requirement of the
customers. Major services offered by Sanima Bank are as follows:
17
2.3.1 Sanima Debit Card
Sanima Bank have been issuing Sanima Debit Card to their depositors since
January 2008.The Debit Card is linked to the Smart Choice Technology (SCT), the
largest ATM Network Company in Nepal; providing 24 hours account access facility
to its customers. Sanima Debit Card can be used in more than 1000 SCT network to
withdraw cash without any charges. Sanima Debit Card can be used in every ATM of
Punjab National Bank, India to withdraw cash.
Sanima Debit Card is issued at the time of opening saving or personal current account
at an issuance cost of Rs.200. An annual service charge of Rs.100 is charged in the
second year from the debit card holder. The facilities provided by Sanima Debit Card
are:
 Cash Withdrawal
 Mini Transaction Report
 Mini Statement Prints
 Balance Enquiry
 Payment for purchase of goods/ services at the merchant locations
(through POS)
 Personal Identification Number (PIN) change
2.3.2 Sanima i-Banking
Sanima Bank offers internet banking services to its valued customers. The
customer having i-banking facility can enjoy 24 hours the absolute freedom of
banking from any part of the world. Sanima i-Banking gives every customer
immediate online access to their accounts easily, conveniently and securely. The feel
of luxury of complete internet banking can be received from Sanima i-Banking.
Some of the features of i-Banking are:
 Access your accounts, 24 hours a day, 7 days a week
 Save money and time- no more stamps or handwritten
 Transfer funds within a group
 Make payment of Nepal Telecom bills
 Online shopping
18
2.3.3 Sanima SMS Banking
SMS Banking is one of the services that Sanima Bank offers to its customers.
It‟s a new 24 hour banking convenience which helps customer to stay on top of any
recent changes made in the bank account or a loan account through mobile phone.
The number for the service is 2265.
Services offered under SMS Banking are as follows:
 Balance Enquiry
 Transaction notification
 Foreign Exchange Rate Enquiry
 Account Statement Request
 Cheque Book Request
2.3.4 Inward Remittance
Remittance is one of the major incomes generating service of banks.
Remittance service of the bank is beneficial both to the business and personal
customers as it make the transfer of money easier. It covers large percentage of its
national income. It facilitates the sending and receiving funds to/from various places.
It can also promote access to financial services for the sender and recipient increasing
financial and social inclusion. Sanima Bank offers number of remittance products to
cater the customer need for transferring their money in and out of the country through:
 Western Union Money Transfer
 Sanima Xpress
 Prabhu Money Transfer
 Himal Remit
 Prithivi Remit
 Laxmi Bank Express Money Transfer
 Everest Remit
 MTA Express Remittance
 WORLD LINK Money Transfer
 City Express Money Transfer
19
 Money Gram International Money Gram
 Reliable Remit
 IME
2.3.5 Any Branch Banking Services (ABBS)
Sanima Bank has Any Branch Banking System to facilitate its customers to
have easy transaction. As well, for the solutions of endless long procedure, rush hour
traffic, long queues, risk of carrying huge sums of money to the bank, wanted to take
out money from your account but found out that the bank was convenient service is
introduced. The customers can withdraw or deposit cash, receive information about
the balance in their account or obtain a statements of accounts is convenient from any
branch. The network is online and one can have access to his/her account from any of
the branches of the bank.
2.3.6 Locker Facilities
Sanima offers safe deposit locker to its customer to provide additional
securities for their valuable goods. Locker Facilities are available at Head Office,
New Road and Butwal Branch of Sanima.
Table 2.1 Details of locker facilities
Size
Key Deposit Rental
Per (NPR)
Annum (NPR)
Height 4.92", Width 6.88", Depth 19.37"
10,000/-
1,500/-
Height 4.92", Width 13.85", Depth 19.37"
15,000/-
2,500/-
Height 10.94", Width 13.85", Depth 19.37"
20,000/-
3,500/-
Source: www.sanimabank.com.np,2013
The above table shows the details of locker facilities provided by Sanima
bank. The height of 4.92, width of 6.88 and depth of 19.37 size of locker charges Rs
10,000 where annual payment is Rs 1,500. In the same way the height of 4.92, width
of 6.88 and depth of 19.37 size locker charges Rs 15,000 where its annual payment is
Rs 2,500. And lastly, the height of 10.94, width of 13.85 and depth of 19.37 size
locker charges Rs 20,000 with the annual payment of Rs 3,500.
20
From the above table we can conclude that as per the size of the locker the bank
charges the rental price.
2.3.7 Foreign Currency Transaction
Sanima has been providing following Foreign Currency Transaction
 Foreign Currency Deposits
 Current
 Saving
 Fixed Deposit Account
 Travellers Cheque Sale / Purchase
 Cash Sale/ Purchase
 Demand Draft
 Inward / Outward Remittance
 SWIFT / Telegraphic Transfer
 Cross Currency Transaction
2.3.8 INR Draft
Sanima Bank Limited introduces remittance services to its valued customers
through Standard Chartered Bank in India with following facilities:
 Draft issuance/Fund Transfer Facility through more than 700
location all over India
 Inward/Outward Remittance
 Clearing Services / Bills for Collection
 Easy and reliable transaction
2.3.9 Sanima Utility Payment
 NTC Post-Paid Payment
 NTC PSTN Payment
 ADSL Payment
21
NTC Post-Paid Payment: Customer can make a payment to Nepal Telecom
for NTC Post-paid payment. Customers can make a payment by filling a deposit
receipt form and deposit the amount in any of the branch counters.
2.4 Product of Sanima Bank Limited
A. Sanima Current Account
B. Sanima Premium Saving
C. Sanima Fixed Deposits
D. Muna Bachat Khata
E. Sanima Nari Bachat
F. Shareholder Saving
G. Senior Citizens Saving
H. Sanima Salary Saving
I. Sanima Prime Saving
J. Sanima Sulav Deposit
2.4.1 Sanima Current Account
Different types of account are opened with different purpose. Current Account
can be opened in the name of Proprietary Concerns, Partnership Firms, Corporations,
Companies, Government Agencies, Non-Government Agencies, Loan clients etc. This
account required minimum balance of Rs.1000 for others and Rs.10000 for loan
clients. The account holder can deposit and withdraw their cash unlimited. They are
not provided any interest rate. (Sanima, 2013)
2.4.2 Sanima Premium Saving
Premium saving account is an attractive and new saving account introduced by
Sanima. This account can be opened with the minimum balance of Rs. 10,000. This
account provides 6% interest rate per annum on daily balance. This is an attractive
product for the customer to earth higher interest on saving account with free ABBS
service. The interest rate of the product can be fluctuate over the period of time
depending upon market condition and other various factors. (Sanima, 2013)
22
Table 2.2 Details of sanima premium saving
Opening Balance
NPR 10,000
Rate of Interest
6%
Interest Payable
Quarterly
ABBS
Free
ATM withdrawals
Free withdrawals from any SCT Network
Source: www.sanimabank.com.np,2013
The above table is the details of Sanima premium saving. This table clearly
shows the opening balance of account and its interest rate. Here the interest is
payable quarterly and ABBS service is free.
2.4.3 Sanima Fixed Deposit
Fixed deposit account is another type of account offered by Sanima bank with
a specific feature. There are 4 types of schemes under fixed deposit account with
varying time period. They are 3 months, 3 to 6 months, 6 to 9 months and 1 year and
above. As concerning the amount depositors want to deposits the interest rate will be
different. Under this account interest are payable monthly, quarterly and at maturity.
The account holder has a facility of overdraft up to 80 percentage of their total
deposit. (Sanima, 2013)
Table 2.3 Details of sanima fixed deposit
Interest Rate (% p.a.)
Account Type
Interest
Payment
Up to 3
Months
Above 3
Above 6
Months to 6 Months to 9
Months
Months
1 Year &
above
Sr. Citizen
Monthly
5.00
6.00
7.00
Normal Fixed Deposit
Quarterly
5.00
6.00
7.00
Normal Fixed Deposit
At Maturity
5.25
6.25
7.25
Source: www.sanimabank.com.np,2013
4.00
23
In the above table we can analyze that the fixed deposit account have the
highest interest rate as compared to other account of Sanima bank. Here two types of
account can be opened like Senior citizen and normal fixed deposit. Where senior
citizen account interest is payable monthly and normal fixed deposit is payable
quarterly and at maturity.
2.4.4 Muna Bachat khata
Sanima has offered Muna Bachat Khata for children below 16 years. This
account can be termed as planned saving. There are 2 types of schemes under this
saving account. (Sanima, 2013)
 Age limit less than 16 years to pen this account
 Account can be opened at zero(0) balance
 Deposit and Withdrawal unlimited
 Interest Rate 4% p.a. on daily balance
 Free SMS Banking Service
 Free Account statement, Cheque Book issue
 25% discount on Draft issuance for account holder and/or parents
 25% discount on Travellers‟ Cheque issuance for account holder
and/or parents
Note: After crossing the age of 16, account will be converted in to normal saving
account, after getting the application from the clients.
 Investment plan
 Investment muna with life insurance coverage
 Recurring saving plan
 Recurring muna with life insurance coverage
 Recurring muna without life insurance coverage
Key benefits
 Planned saving
 Attractive Future Return
 Life insurance coverage
 Discounted premium
24
 Hassle Free
Extra benefits
 Child up to 7 does not require any medical examination
 Corporate Discount on insurance premium charge
 Free SMS banking and I-banking
 50% waiver on locker charge
 50% waiver on loan processing charges
 Added benefit of privilege card which provides discount at various Outlets
like hospitals, book stores and other kid‟s store
2.4.5 Sanima Nari Bachat
Sanima Nari Bachat is focused for the women only to provide convenient
banking experience. This account can be opened with zero balance which provides
4% interest rate on daily balance. The interest is payable quarterly. The account
holder can get free SMS banking, free i-banking, free ABBS and free PSTN bill
payment. Along with this 25% waive on safe deposit locker charge for 1 year is free.
Table 2.4 Details of sanima nari bachat
Opening Balance
Zero Balance
Rate of Interest
4%
Interest Payable
Quarterly
SMS Banking
Free
i-Banking
Free
ABBS
Free
Safe Deposit Locker
25% waive for 1st year (subject to availability)
PSTN Bill Payment
Free
ATM withdrawals
Free withdrawals from any SCT Network
Source: www.sanimabank.com.np,2013
25
From the above table we can easily know that Nari Bachat is the zero balance account
with the interest rate 4%. And many free services are provided to the women who
open this account.
2.4.6 Shareholder Saving
With the objective of providing services to its shareholders, Sanima has
established separate saving account which is called shareholders saving account. This
account can be opened with zero balance which provides 4% interest rate on daily
balance. (Sanima, 2013)
Features
 Account can be opened with zero balance.
 Interest rate 4% on daily balance
 Free accidental death insurance worth Rs 1,00,000/-
 25% discount on locker rental charge(subject to availability) to account holder
 25% discount on commission for issuance of draft and Travellers Cheque
 No fees on inward remittances
 Unlimited deposit and withdrawal
 Loan against security of deposit with attractive interest rate.
 Free withdrawal from any SCT ATM network
2.4.7 Senior Citizen Savings
Sanima bank limited offers special benefits and privileges for senior citizen.
Any individual above 50 years can open an account with minimum balance of Rs.200
which provides many benefits to the account holder. (Sanima, 2013)
Key Benefits of the account:
 Free withdrawals from any SCT ATM Network
 Dedicated Relationship personnel
 Flexible options
 High return
 Monthly interest payable
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Features of Senior Citizen Savings Account
 Account can be opened at NPR 200
 It can be a joint account as well as individual
 Facility for nominee
 Unlimited withdrawal and deposit facility
 Free cheque book
 Free ABBS services
 50% discount on locker fees
2.4.8 Salary Deposit Account
Sanima has also offered salary deposit account targeting Companies,
Corporations, Government Agencies, Non-Government Agencies etc. The main
objective of offering this account to different government and non-government
companies is for facilitating to pay salary directly to the account of their employees.
This account can be opened with zero balance which provides 4% interest rate.
(Sanima, 2013)
Table 2.5 Details of salary deposit account
Opening Balance
Zero Balance
Rate of Interest
4%
Rate of Clean overdraft facility
20%
Credit Limit
Two times of net salary per month not exceeding Rs. 200,000.00
Accidental Death Insurance
RS. 1,00,000.00
ATM withdrawals
Free withdrawals from any SCT Network
Source: www.sanimabank.com.np,2013
In the given table of salary deposit account we can see that the account holder
can get the facility of 20% overdraft of net salary. It can be also seen that account
holder get the accidental death insurance of Rs.1,00,000,00.
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2.4.9 Sanima Prime Saving
Another type of saving account is Prime saving account. Prime saving
account can be opened with minimum balance of Rs.5000 which provides 5 percent
interest rate per annum on daily balance. Interest is payable quarterly. (Sanima, 2013)
Table 2.6 Details of sanima prime saving
Opening Balance
NPR 5,000
Rate of Interest
5%
Interest Payable
Quarterly
ABBS
Free (Within Kathmandu Valley)
SMS
Free
I-Banking
Free
ATM withdrawals
Free withdrawals from any SCT Network
ATM withdrawals
Free withdrawals from any SCT Network
Source: www.sanimabank.com.np,2013
From the above table we can analyze that the Sanima prime saving account
has the opening balance of Rs.5,000 and its interest rate is 5%. It also provides the
ABBS service free within the Kathmandu valley only. Whereas SMS and i-banking
are free all around the nation.
2.4.10 Sanima Sulav Bachat
Sanima Sulav Bachat is the different type of account provided by Sanima
bank. This account can be opened in zero balance which gives 4% interest rate on
daily balance. The interest payable is quarterly. The unique factor of this account is
the personal death accidental insurance of Rs.100,000,00. (Sanima, 2013)
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Table 2.7 Details of sanima sulav bachat
Opening Balance
Zero Balance
Rate of Interest
4%
Interest Payable
Quarterly
Personal Death accidental Insurance
Rs.100,000.00.
ATM withdrawals
Free withdrawals from any SCT Network
Source: www.sanimabank.com.np,2013
In the given above table the customer can open an account in zero balance
with 4% interest and also gets the insurance of Rs.1,00,000,00.
The common factor of all the account is free withdrawals of cash from any
SCT network. The account holder of Sanima bank gets free withdraw of cash from
any SCT network within the nation.
2.5 Organizational structure of Pokhara Branch
Typically
hierarchical
is
the
arrangement
of
lines
of
authority,
communications, rights and duties of an organization. Organizational structure
determines how the roles, power and responsibilities are assigned, controlled, and
coordinated, and how information flows between the different levels of management.
A structure depends on the organization's objectives and strategy. In a centralized
structure, the top layer of management has most of the decision making power and
has tight control over departments and divisions. In a decentralized structure, the
decision making power is distributed and the departments and divisions may have
different degrees of independence. The structure can be shown as:
29
Figure 2.2 Organizational structure of pokhara branch
Branch
Manager
Operation
Department
Teller
Marketing
Department
Credit
Department
CSD
Source: pokhara branch of SBL
This is organizational structure of Sanima Bank Limited, Pokhara Branch.
Branch manager is head of the organization. He supervises the employees and takes
major decision. Credit head deals with the loan customers and do documentation. The
ready file is signed by credit officer & branch manager and send to the head office for
the approval. It takes minimum 5 days for credit file to be approved by head office
after sending from Pokhara branch. Operation department includes CSD and Teller
department. CSD department deals with the customers perform task of cheque
clearing etc. Teller department helps customer to deposit and withdraw cash from
bank. Operation head control and supervise CSD and Teller staffs of the organization.
Since it is branch office, all the staffs work with cooperation helping each other.
2.6 SWOT Analysis
The word SWOT stands for Strength, Weakness, Opportunity and Threats. It is
done to understand the external and internal environment of an organization. The
forces in the external environment provide opportunity and threats. The forces in the
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internal environment provide strength and weaknesses. The major findings from the
SWOT analysis of Sanima Bank (Pokhara Branch) are as follows:
2.6.1 Strength
Strength is an inherent capacity which organization can use to gain strategic
advantage over its competitors. It‟s related with internal environment. (Agrawal,
2012)
 The bank‟s ATM/Debit Card can be used in more than 1000 ATMS through
the country free of any charges. Debit Card of Sanima has also extended all
over India with an agreement with Punjab National Bank of India.
 Working environment is nice.
 Good quality services.
 The bank has wide range of services that not only provide window financial
solution but also customize offering that suits need of customer.
For example: INR Draft, Telephone Bill Payment, etc.
 The management teams are highly qualified and well experienced in their
work.
 Good relationship between customer and employee.
2.6.2 Weakness
Weakness is an inherent limitation which creates a strategic disadvantage for a
business organization in relation to competitors. (Agrawal, 2012)
 There are limited areas of operations geographically and product wise.
 There is huge queue in bank; less amount of teller/cashier.
 Sanima has extended its branches on limited area of the country which is still
unable to cover the targeted market like major trading areas.
 The infrastructure of bank is poor. It is operating in small building in rent.
There is no parking facility in the bank for customers.
 Time consuming in opening accounts of the customers.
2.6.3 Opportunity
Opportunity is a favorable condition in the environment. It enables a business
organization to consolidate and strengthen its position. (Agrawal, 2012)
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 People are more interested in banking activities.
 It is „A‟ class commercial bank.
 It has an opportunity towards global penetration due to the existence of Non
Resident Nepalese promoters.
2.6.4 Threats
Threat is an unfavorable condition in the environment. It creates risk and
causes damage to business organization. (Agrawal, 2012)
 Increasing number of financial institutions.
 Unstable political situation.
 Entry of foreign institutions after the year 2010 AD.
 Fluctuation in interest rate.
 Changes in banking technology.
 Employees are easily taken away by the competitors.
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CHAPTER III
STUDY RESULT
This chapter includes data which are collected during the time of our
internship period. Also this chapter deals with procedures required for opening
various types of accounts and the closing which are presented and analyzed. The
different product and services provided by the bank are categorized in this chapter.
3.1 Summary
The trend of internship has been continued since the establishment of P.U. in
the year 1997. The student of BBA and BBA-BI of Pokhara University has been
assigned to perform 6 to 8 weeks internship on a particular financial institution and to
make an internship report accordingly. It objects in gaining knowledge and skills
related to the organizational activities in the partial fulfillment of the requirement for
the degree of Bachelor. The internship period confronts student with real life practices
and systematic working approaches. The student can have knowledge regarding
organizational activities and practices, customer dealing, services offered and makes
working habit. The basic objective of the study and the internship is to blend
theoretical knowledge and skills acquired in the classroom situation with the real life
settings of the organization. It aims to give students the opportunity to realize and
understand the real life business and professional performance and problems on
different activities of financial institution.
SBL is an independent and autonomous financial institution established under
Financial Act 2042 B.S. and started its operation from 2004 B.S, with an objective to
collect the scattered money and utilize it in productive sectors. Sanima is promoted by
prominent and dynamic Non-resident Nepalese businessman. Its head office is located
at Alkapuri, Naxal, Kathmandu. In the pursuit of sustainable growth Sanima has 24
full-fledged branches within and outside the Kathmandu Valley and has further plans
to expand its reach in the various part of the country. Sanima received the operating
license from NRB to function as an “A” Class Commercial Bank & has achieved the
triumph to establish as s 32nd Commercial Bank of Nepal.
33
I have completed my internship from New Road, Pokhara Branch. The
duration of internship was 3 months. During internship period I have used different
methodology to study organizational activities. The nature of the report is qualitative
and quantitative and the source is primary and secondary. This report is completed
with the help of both primary and secondary data. Most of the primary data are
collected through day to day operation with staff of SBL, direct dealings with the
customer in the bank, personal involvements in the activities of bank, observations of
the bank and its environment and daily activities during internship. Secondary data
are already published books, journal articles, newspapers as well as administrative,
annual report of Sanima Bank Limited, broacher of Sanima Bank Limited, website of
Sanima Bank Limited.
From the analysis and presentation of data, facts and figure various conclusion
has been derived which are as follows:
 The banking procedure of SBL is conducted under Nepal Rastra Bank. It
commenced its business as a commercial Bank and uses software called
PUMORI BANKING SOFTWARE.
 SBL offers 9 banking service and 10 product, which are highly used by
customers.
 SBL have different department which are customer service department,
system G.S.D. and accounts department, Guarantee L.C and Loan
Department. The customer service department is most busy department.
 After the internship period of 3 months I have gained many banking
knowledge and now I am able to operate any department of bank and
share my banking experience very comfortably.
 Only academic knowledge does not make any student complete so
practical implications are very important and internship helps to explore
practical knowledge.
 SBL is one of the best commercial bank in Nepal. It has its own banking
environment. Comparing to Pokhara Branch it was very comfortable to
work, staffs were very helpful and friendly, working system is simple
and advance.
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3.2 Major findings
During the internship period the following major findings are derived:
 The procedure for opening account is simple and easily opened within a
short period of time.
 The study shows that maximum numbers of people choose SBL as their
Bank because of the SBL performance. This states that the customer of
SBL perceived Sanima as good Bank in terms of the performance
 Flow of opening saving account is higher than the current and fixed
account.
 Most of the customers are satisfied by the free SCT service.
 Most people close their account due to their own problems rather than
other reasons.
 Customers are satisfied with the services and friendly behaviors of the
staff.
 Friendly, co-operative, helpful, skillful staff.
 While opening the account in Sanima Bank, the minimum balance is
comparatively higher than other bank.
 The Bank gives equal value to every customer.
 Sanima Debit Card can be used in more than 1000 SCT network to
withdraw cash without any charges.
 Payment of every account interest is done quarterly except Senior Citizen
Saving Account, which is paid monthly.
 Highest interest rate in deposit account is 6%, which is of Sanima Prime
Saving and Sanima Premium Savings.
 The interest earning to loans and advance is increased.
 Mainly three types of account are hold by the people they are current,
saving and fixed deposits.
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3.3 Conclusions
The following conclusions have been derived with the help of the major
findings of the study:
 There are certain reasons for existing customer of saving account of any
bank to shift to another bank. The level of service in terms of delivering
whatever is promised/ fast response in case of problems, is the most
important benefit that the customer seek, from the bank they have a saving
account with.
 The CSD department is responsible for creating and maintaining relation
between customer and bank.
 Researcher found that most of the people were not aware about the product
and service of the SBL.
 Network reach and visibility of a bank is very important criterion for the
customer while opening a saving account.
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3.4 Interest Rate
The amount charged, expressed as a percentage of principal by a lender to a
borrower for the use of assets. Interest rates are typically noted on an annual basis,
known as the annual percentage rate (APR). The assets borrowed could include, cash,
consumer goods, large assets, such as a vehicle or building. When the borrower is a
low-risk party, interest rate charged will be low; if the borrower is considered high
risk, the interest rate charged will be higher. (Investopedia US, 2013)
Table 3.1 Details of Saving Deposit Account
1. Saving Deposits
Account Type
Interest Rate (%p.a.)
Interest Payment
1. Senior Citizen Saving Account
4.00
Monthly
2. Sanima Nari Bachat
4.00
Quarterly
3. Sanima PF Saving Account
4.00
Quarterly
4. NRN Saving Account
4.00
Quarterly
5. Sanima Salary Account
4.00
Quarterly
6. Shareholders Saving
4.00
Quarterly
7. Sanima Muna Bachat
4.00
Quarterly
8. Flood Relief Account
4.00
Quarterly
9. Investment Muna with Life Insurance
Coverage
4.00
Quarterly
10. Recurring Muna with Life Insurance
Coverage
4.00
Quarterly
11. Recurring Muna w/o Life Insurance
Coverage
4.00
Quarterly
12. Sanima Prime Saving
5.00
Quarterly
13. Sanima Premium Savings
6.00
Quarterly
14. Sanima Commitment Saving Account
6.00
Quarterly
15. Other Savings Account
4.00
Quarterly
16. Sanima FCY Saving Account
1.50
Quarterly
Source: www.sanimabank.com.np,2013
37
Table 3.2 Details of Fixed Deposit Account
Base Rate-Magh 2069: 10.23%
2. Fixed Deposits (NPR)
Interest Rate (% p.a.)
Account
Interest
Above 3
Type
Payment
Months to 6
Months
Sr. Citizen
Monthly
Above 6 Months
to 9 Months
5.00
6.00
Above 1
1 Year
Year
7.00
7.25
For Individual
Interest Rate (% p.a.)
Time Period
Quarterly
1 Month to 3 Months
Maturity
4.00
Above 3 Months to 6 Months
5.00
5.25
Above 6 Months to Below 1 Year
6.00
6.25
1 Year
7.00
7.25
Above 1 Year
7.25
7.50
For Institution
Interest Rate (% p.a.)
Time Period
Quarterly
1 Month to 3 Months
Maturity
4.00
Above 3 Months to 6 Months
5.00
5.25
Above 6 Months to Below 1 Year
5.50
6.00
1 Year
7.00
7.25
Above 1 Year
7.25
7.50
Source: www.sanimabank.com.np,2013
38
CHAPTER IV
RECOMMENDATION
4.1 Recommendation to the Organization
The recommendation of this study is duely based on the financial analysis of
Sanima bank. So, recommendations are given to the financial performance of the bank
as follows:
 Nowadays many joint ventures banks are establishing in Nepal. So bank
should be competent enough to compete with them.
 The bank should have consistent dividend payout ratio so that the shareholder
could be motivated parallely.
 Sanima should distribute its brochure, product papers and about its new
services firstly to their existing customers and sustains them well.
 To make people aware of its services bank should use more effective
promotional tools like advertisement through F.M, T.V, and Hoarding Board
on different places etc.
 The limited number of staff s is also the problem in the bank even though they
are handling the task.
 Bank should focus not only the special clients but it must focus deprived
clients too.
 Today is the age of modern technology. So it must be quick in adopting new
technology in comparison to its rivals.
39
4.2 Recommendation to the College
For the completion of the internship as well as for the success of report writing
Nepal Tourism and Hotel Management Collage has a significant role. Though the
college administration and the teachers supported in internship period and report
writing there are some recommendations for the college:
 College should arrange the entire student for intern in time according to the
student interest.
 The internship time period is very short and student are not getting time to
work. So college should make provision of internship for a whole semester.
 College should supervise continuously to students for report writing and
manage the college schedule during internship time.
 College should make available of organization for internship instead of
students personal effort.
 Some teachers need to visit in banks or some other financial institutions to ask
about the student‟s performance.
 College should force students to complete their internship and internship
report on time.
40
REFERENCES
Agrawal, D. G. (2012). Components of internal and external environment. In D. G.
Agrawal, Business Environment in Nepal (pp. 8,11). Kathmandu: M.K.
Publishers and Distributers.
Investopedia US, A. D. (2013). investopedia. Retrieved 07 08, 2013, from
http://www.investopedia.com:
http://www.investopedia.com/terms/i/interestrate.asp
pun, m. (2011). Product and Services of Sanima Bikash Bank Limited. pokhara.
Sanima, B. (2013, 01 08). WWW.SANIMABANK.COM. Retrieved 05 09, 2013, from
WWW.SANIMABANK.COM:
http://www.sanimabank.com/main/index.php?0aHTpZGp3unkoA==
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