CHAPTER I

INTRODUCTION
1.1 Background of the Internship

The oldest and biggest university in Nepal is Tribhuvan University (TU), which is
named after King Tribhuvan, which was founded in 1959. TU is a well-known
university that acts as the center of higher education in Nepal and is situated in Kirtipur,
Kathmandu. It provides a broad range of academic programs in a number of fields, such
as education, engineering, management, science, business, law, and the arts. The
various courses provided by TU for undergraduates under the FOM are BBA, BBM,
BBS, BIM, BTTM, BHM, and BPA. Likewise, in postgraduate TU is running programs
for further enhancement of students which are MBA, MBM, MFC, MPA, MBS,
MTTM, MHM, MBA-IT, and MBA-GLM. All the above programs are run for 4 years
and are of semester system however, BBS is run year-wise. Like the other programs
under undergraduates provided by TU, BBM is also a 4years course and is semester-
wise. As for the completion of this degree, the students have required an 8-week
internship in the last semester.

An internship is a structured work experience program, typically undertaken by

students, that provides practical exposure in a professional environment related to their
field of study. Internships are designed to allow students to apply theoretical knowledge
gained through their academic programs in real-world settings, helping them to develop
practical skills, work ethics, and a deeper understanding of the industry they intend to
enter.

Bachelor of Business Management (BBM) is a newly designed 4 years, 8 semester

course of Tribhuvan University faculty of management (FOM). This course at
Tribhuvan University is designed to prepare students for leadership and managerial
roles in various sectors such as finance, marketing, human resources, and operations.
The course provides students with the essential knowledge and skills required for
managing business processes, developing strategic plans, and making informed
decisions in a competitive business environment. By combining theory and practice,
i
BBM students are trained to understand the dynamic nature of business and the
importance of effective management.

Tribhuvan University recognizes the significance of internships as part of its BBM

curriculum to enhance the learning experience. The university includes internships as a
requirement for students pursuing business management degrees to foster career
readiness. By integrating internships into the academic program, Tribhuvan University
ensures that its students gain practical exposure to business management concepts and
challenges, ultimately enhancing their employability in the job market. The university’s
inclusion of internships also aligns with global trends in higher education, where
practical experience is increasingly seen as critical for students’ career success. This
exposure helps students build professional networks, understand industry dynamics,
and gain confidence in their abilities as future business leaders.

For the accomplishment of the partial fulfillment of this degree, the internship report
that is to be carried out is done on Machhapuchchrre Bank ltd. (MBL), which covers
the overall description of work done and the observation made while doing the
internship in various departments of the bank. This report signifies the internship done
in at Machhapuchchrre Bank ltd. Baluwatar for 8 weeks, which started from 29
December 2024 to 28 February 2025. As an intern, I was assigned to work in Customer
Service Department (CSD).

The internship report serves as an essential part of the evaluation process for the
internship program. The report allows students to reflect on their internship experience,
demonstrating the skills, knowledge, and lessons they learned during their time with
the organization. It helps students evaluate their performance and identify areas for
personal and professional growth. The report serves as a documented record of the
tasks, responsibilities, and projects the student was involved in during the internship. It
also includes a summary of the internship goals, challenges faced, and how the
experience aligns with the academic objectives of the BBM program. Tribhuvan
University uses the internship report to assess the student's overall internship
performance. It provides insight into how well the student has integrated their academic
knowledge with practical experience in a professional environment.
In conclusion, writing the internship report is an essential part of the BBM curriculum,
ensuring that students can effectively communicate their practical learning and
contribute to their academic development.

1.2 Objectives of the Internship

The primary aim of this internship at Machhapuchchrre Bank Ltd. is to gain practical
knowledge and experience in the field of business management and banking.

1.2.1 General Objective of the Internship

a. To Enhance Professional Skills: improve communication, teamwork,

leadership, time management, and problem-solving skills.
b. To Understand Organizational Structure: Learn about the hierarchy, roles, and
responsibilities within a banking institution.
c. To Develop Workplace Ethics: Understand the importance of professionalism,
discipline, and ethical business practices.
d. To Improve Decision-Making Abilities: Learn how business and financial
decisions are made in a corporate setting.
e. To Adapt to a Professional Environment: Gain exposure to corporate culture,
professional etiquette, and work ethics.
f. To Build a Professional Network: Establish connections with industry
professionals that may benefit future career opportunities.
g. To Increase Career Readiness: Prepare for future employment by understanding
industry requirements and expectations.

1.2.2 Specific Objective of the Internship

a. To Analyze Customer Relationship Management (CRM) – Observe how banks

interact with customers and handle their financial needs.
b. To Understand Core Banking Operations – Learn about account handling,
transaction processing, customer service, and financial advisory services.
c. To be able to know about the banking process, rules, and procedures that are
followed by them under the central bank (NRB).

1.3 Methodology of the Internship

The methodology of the internship outlines the approach taken to gain practical
experience, collect information, and achieve the internship objectives. It includes the
techniques, tools, and processes used during the internship to ensure a structured
learning experience. The methodologies applied while doing an internship are:

a. Data collection methods: Data are collected through qualitative method and
quantitative method.
• Qualitative method: This method includes personal observations of
customer interactions and direct involvement in daily banking
operations. Interaction with supervisors, employees and customers to
gather insights on banking procedures.
• Quantitative method: This method includes review of bank documents,
reports, and study of company policies, guidelines, and regulatory
frameworks from Nepal Rastra Bank (NRB).
b. Departmental rotation: We were assigned to different departments such as
Customer Service Department and Human Resource Department. Assisted in
handling inquiries, opening accounts, and guiding customers in various tasks
also handled documents of employees in HR.

1.4 Organizational Selection

Machhapuchchrre Bank Ltd. was chosen for the internship because it is a well-known
bank in Nepal that provides a variety of financial services, such as deposits, loans, and
digital banking. The bank’s structured internship program offered a great opportunity
to learn about different departments, including customer service, loan management, and
financial analysis. Since the BBM (Bachelor of Business Management) program
focuses on business and management skills, this bank was a perfect place to gain real-
world experience. Additionally, the bank’s professional work environment and use of
modern banking technology made it an ideal place to learn.

The necessary documents that were required to be selected as an intern were submitted
to the head office in Human Resource Department (HRD) such as curriculum vitae
(CV), recommendation letter from the college and application. After the submission,
the documents were analyzed by the respective Human Resource Department at the
head office. I was selected as an intern at the head office, Baluwatar. I started my
internship from 29 December 2024 to 28 February 2025.
Throughout the internship period, I was assigned to (CSD) Department. In the
Customer Service Department (CSD), I was responsible for assisting customers with
account inquiries, handling account openings and closures, managing customer
complaints, and guiding them through banking processes. This placement helped me
develop communication skills, problem-solving abilities, and an understanding of
customer relationship management.

1.4.1 Duration

The internship at Machhapuchchrre Bank Ltd. was conducted as a part of the BBM
(Bachelor of Business Management) program under Tribhuvan University. The total
duration of the internship was 8 weeks or 2 months. The internship followed a
structured schedule, with working hours from 9:30 am to 5:30pm from Sunday to
Thursday and working hours from 9:30 am to 2.30pm on Friday.

Table 1
Placement and Duration of the Internship

Name of the From To Total working

department days

Customer Service 29th December 28th February 58 days

Department

In my internship duration, I worked in CSD from 29th December to 28th February with
the guidance, support and encouragement of supervisor.

1.5 Limitations

a. The internship duration (8 weeks/2 months) was relatively short, limiting the depth
of understanding in specialized banking functions.
b. Minimal interaction with senior executives, limiting exposure to high-level
organizational strategy and decision-making.
c. Very few information to sensitive financial data, customer information, or internal
reports due to confidentiality regulations.
 CHAPTER II

INTRODUCTION OF THE INDUSTRY

2.1 Introduction to Banking Industry

A bank is a financial institution that serves as an intermediary between those who have
surplus capital (depositors) and those who require funds (borrowers). Banks provide
essential financial services that are crucial for the functioning of the economy, including
accepting deposits, granting loans, facilitating payments, and offering investment
services. By doing so, they play a critical role in the flow of money, capital, and credit
within the financial system, which is fundamental for economic development and
growth.

Banks have existed since at least the 14th century. They provide a safe place for
consumers and business owners to stow their cash and a source of loans for personal
purchases and business ventures. Banks are central to the functioning of the financial
system and the economy. By mobilizing savings and allocating funds efficiently, they
help promote investments, support businesses, and contribute to economic
development. Furthermore, banks provide individuals with tools to manage their
personal finances, protect their wealth, and secure their financial future.

In modern times, banks are also integral to the digital economy, with the introduction
of mobile banking, online banking, and digital wallets, which have made banking
services more accessible to people around the world.

The banking industry is highly regulated by government agencies and international

organizations to maintain financial stability, ensure transparency, and protect
consumers. Regulatory bodies like Nepal Rastra Bank (NRB), the Federal Reserve in
the U.S., and the European Central Bank (ECB) in the European Union set guidelines
for banking operations.

Banks provide a wide range of services that cater to individuals, businesses, and
governments, ensuring smooth financial transactions and economic growth. One of the
primary services is deposit services, where customers can open savings, current, fixed,
and recurring deposit accounts to safely store their money and earn interest. Another
crucial service is loan and credit facilities, including personal, business, home,
education, and vehicle loans, helping individuals and enterprises meet their financial
needs. Banks also offer fund transfer and payment services such as NEFT, RTGS,
SWIFT, mobile banking, and digital wallets, enabling quick and secure transactions
both locally and internationally. Additionally, banks provide foreign exchange services,
allowing customers to exchange currencies and facilitating international trade and
remittances. Investment services such as mutual funds, stock market investments, fixed
deposits, and portfolio management help customers grow their wealth. Furthermore,
banks issue credit and debit cards, making cashless transactions easier and more
convenient. Many banks also offer insurance and pension schemes, providing financial
security for the future. Another essential service is locker facilities, where customers
can store valuables like jewelry and important documents securely. With advancements
in technology, banks have expanded into online and mobile banking, enabling
customers to check balances, pay bills, transfer funds, and access various banking
services from anywhere. These comprehensive services make banks essential
institutions for financial stability, growth, and security.

Banks play a vital role in the economy by providing a secure place for individuals and
businesses to store their money while offering various financial services that promote
economic growth. One of the key advantages of banks is the safe storage of money,
ensuring that individuals do not have to keep large amounts of cash at home, reducing
the risk of theft and loss. Additionally, banks offer interest on deposits, helping
customers grow their savings over time. Another significant advantage is access to
credit, as banks provide loans for personal, business, education, housing, and other
purposes, enabling financial growth and development. Banks also facilitate convenient
financial transactions, including fund transfers, bill payments, and currency exchanges,
making daily transactions smoother and more efficient. Moreover, banks contribute to
economic stability by regulating the money supply, controlling inflation, and supporting
government policies through monetary regulations. They also play a key role in
employment generation, providing job opportunities in the banking sector and
supporting businesses by offering financial solutions. Furthermore, with the rise of
digital banking, customers can now access banking services online, ensuring
convenience and accessibility from anywhere. Overall, banks serve as a foundation for
financial security, economic development, and modern financial transactions, making
them essential institutions in every economy.
2.2 Evolution of Banking Industry

The banking industry has a long and fascinating history, evolving from simple money-
lending practices to complex financial institutions that play a crucial role in global
economies. The earliest forms of banking can be traced back to ancient civilizations
such as Mesopotamia, Egypt, Greece, and Rome, where temples and merchant traders
acted as financial intermediaries. These early banks primarily stored wealth, facilitated
trade, and provided loans. During the medieval period, banking activities expanded in
Europe, with Italian merchant banks like the Medici Bank gaining prominence. By the
17th century, modern banking began to take shape with the establishment of central
banks, such as the Bank of England in 1694, which introduced paper currency and
regulated monetary policies. The 19th and 20th centuries saw rapid growth in
commercial and investment banking, the introduction of deposit insurance, and the
emergence of multinational banks. The 21st century ushered in digital banking, mobile
payments, fintech innovations, and blockchain technology, significantly transforming
how financial services are accessed and delivered.

The banking industry in Nepal has evolved significantly over time, transforming from
informal money-lending practices to a modern, digital banking system. In the early
days, financial transactions in Nepal were handled by traditional moneylenders known
as Sahuwaals and merchants, who provided loans at high-interest rates. To introduce a
more structured system, the government established Tejarath Adda in 1877 during the
Rana regime. However, Tejarath Adda mainly provided interest-free loans to
government employees and did not accept public deposits, limiting its role as a full-
fledged bank.

The foundation of modern banking in Nepal began with the establishment of Nepal
Bank Limited (NBL) in 1937, marking the country's first commercial bank. This was a
major step toward formal banking, as NBL introduced public deposit services, lending,
and financial transactions. To regulate and oversee the banking sector, the Nepal Rastra
Bank (NRB) was established in 1956 as the country’s central bank. NRB played a
crucial role in formulating monetary policies, controlling inflation, and stabilizing the
financial system.

In 1966, the government established Rastriya Banijya Bank (RBB) as another state-
owned commercial bank to expand banking services across the country. During the
following decades, Nepal witnessed further developments in the banking sector with
the introduction of specialized banks such as the Agriculture Development Bank (1968)
to support farmers and rural development.

The 1980s and 1990s marked a turning point in Nepal's banking history with the
adoption of economic liberalization policies, allowing private and foreign investment
in the banking sector. This led to the establishment of Nepal’s first joint-venture bank,
Nepal Arab Bank (now Nabil Bank) in 1984, followed by other commercial banks such
as Nepal Investment Bank, Standard Chartered Bank Nepal, and Himalayan Bank. This
era also saw the growth of development banks, finance companies, and microfinance
institutions, which played a crucial role in promoting financial inclusion and supporting
small businesses.

The 21st century brought technological advancements in banking, with the introduction
of electronic banking, mobile banking, internet banking, and digital payment systems.
The rise of digital wallets like esewa and Khalti, along with QR-based payment
systems, has further modernized financial transactions in Nepal. Today, Nepal’s
banking sector consists of commercial banks, development banks, finance companies,
and microfinance institutions, all regulated by Nepal Rastra Bank. Despite challenges
such as financial literacy, access to banking in remote areas, and economic fluctuations,
Nepal’s banking industry continues to evolve with digital transformation and financial
inclusion initiatives aimed at strengthening the country’s economic growth.

2.3 Present Scenario of Banking Industry

The banking industry in Nepal is currently undergoing a significant transformation

driven by technological advancements, policy changes, and evolving customer
expectations. The sector has seen rapid growth, especially in digital banking, and is
continuing to adapt to changing economic, regulatory, and technological landscapes.
The banking industry in Nepal includes commercial banks, development banks, finance
companies, microfinance institutions, and cooperative banks. Each type of financial
institution serves specific segments of the population, but they all share the goal of
providing financial services, promoting economic development, and ensuring the
financial stability of the nation. As of now, there are 20 commercial banks operating in
Nepal, including both public and private sector banks, such as Nepal Bank Limited
(NBL), Rastriya Banijya Bank (RBB), Nabil Bank, Himalayan Bank, and others. In
total, 16 development banks are operating in Nepal, offering targeted financial services
to support specific areas of development. Nepal has 20 finance companies, which offer
financial services to smaller businesses and individuals who may not be eligible for
loans from commercial banks. There are more than 40 microfinance institutions in
Nepal, serving disadvantaged communities with loans, savings products, and insurance.

Key Trends and Developments in Banking Sector

• Digital Banking Transformation: The digital banking landscape in Nepal has

significantly transformed in recent years. The rise of mobile banking, internet
banking, and digital wallets has made banking more accessible. With the
increasing use of smartphones and internet connectivity, digital banking
services like esewa, Khalti, IME Pay, and Connect IPS have gained popularity.
These platforms allow customers to make instant payments, transfer money, pay
bills, and buy goods online, revolutionizing the financial sector.
• Mergers and Consolidation: In recent years, NRB has promoted the
consolidation of smaller financial institutions to strengthen the banking sector.
The number of commercial banks has decreased from 27 to 20 due to mergers
and acquisitions. This consolidation is intended to create stronger banks with
better capital bases, improve financial stability, and enhance the ability to handle
larger-scale operations.
• Cashless Economy Initiative: The government, along with Nepal Rastra Bank
(NRB), has been pushing for a cashless economy by encouraging the use of
digital payment systems. Various banks are offering mobile banking apps that
allow customers to access services without visiting branches. Additionally, QR
code payments and contactless payment cards have gained traction in urban
areas. The goal is to reduce the dependence on physical cash, especially in light
of the global pandemic that has highlighted the need for safer, cashless
transactions.
• Increase in Non-Performing Loans (NPLs) : The rise in non-performing loans
(NPLs) is another concern facing Nepal's banking industry. Due to the economic
slowdown caused by the pandemic and other factors, more businesses and
individuals are struggling to repay loans, which has led to an increase in NPLs.
 Banks are working on improving loan recovery mechanisms and strengthening
their risk management systems to address this issue.
• Liquidity Challenges: Liquidity in the banking system has been a challenge in
Nepal. There has been a liquidity crunch that has led to high interest rates on
loans and a shortage of available credit for businesses and individuals. Factors
contributing to this issue include slow credit recovery, limited remittance
inflows, and rising government borrowing. NRB has implemented various
measures, such as adjusting the cash reserve ratio (CRR) and statutory liquidity
ratio (SLR), to manage liquidity in the financial system.

In conclusion, the banking industry in Nepal is evolving rapidly, with a focus on digital
transformation, financial inclusion, and regulatory reforms. The sector is benefiting
from innovations in digital banking, mobile financial services, and improved access to
banking in rural areas. However, challenges like liquidity issues, cybersecurity threats,
and the rise in non-performing loans must be addressed to ensure sustainable growth.

2.4 Classification of Banking Industry

The banking industry in Nepal is structured into various categories, each serving
distinct functions. This classification is primarily determined by the Nepal Rastra Bank
(NRB), the central regulatory authority overseeing all financial institutions in the
country. In general, banks are classified into major 4 types under the supervision of the
central bank (i.e., NRB) as per the minimum capital requirement.

2.4.1 Commercial Bank (Class A Bank)

Commercial banks in Nepal, designated as Class 'A' financial institutions by Nepal

Rastra Bank (NRB), are fundamental to the nation's financial infrastructure. These
banks provide a comprehensive range of services, including accepting deposits,
offering various loan products, facilitating foreign exchange transactions, and
delivering electronic banking solutions. They serve a diverse clientele comprising
individuals, businesses, and government entities, playing a pivotal role in Nepal's
economic development.

Established in 1937, Nepal Bank Limited (NBL) holds the distinction of being the first
commercial bank in Nepal. Over the decades, the commercial banking sector has
expanded significantly, with the number of such banks reaching 20 as of mid-July 2023.
This growth has been propelled by mergers and acquisitions aimed at enhancing
financial stability and service efficiency. For instance, Nepal Investment Mega Bank
was formed through the merger of Nepal Investment Bank Limited and Mega Bank
Limited in 2021.

The paid-up capital of these commercial banks varies, reflecting their financial strength
and market position. As of mid-July 2023, Global IME Bank led with a paid-up capital
of NPR 35.77 billion, followed closely by Nepal Investment Mega Bank with NPR
34.12 billion. Other notable banks include Nabil Bank with NPR 27.05 billion and
Kumari Bank with NPR 26.22 billion in paid-up capital.

These commercial banks operate nationwide, maintaining extensive branch networks

to ensure accessibility and convenience for their customers. They offer a diverse array
of financial products and services tailored to meet the evolving needs of the market,
thereby contributing significantly to the financial inclusion and economic growth of
Nepal.

2.4.2 Development Bank

Development banks in Nepal are classified as Class 'B' financial institutions under the
regulation of Nepal Rastra Bank (NRB). They are primarily focused on providing
financial services to promote economic development, particularly in sectors such as
agriculture, industry, and infrastructure. As of mid-July 2023, there are 17 development
banks operating in Nepal, each with specific operational areas and capital structures.

These development banks are categorized based on their operational coverage:

• National Level Development Banks: These banks operate across the entire
country, offering a wide range of financial services. Examples include
Muktinath Bikas Bank, Miteri Development Bank, and Garima Bikas Bank.

• Development Banks Operating in 4-10 Districts: These banks serve multiple

districts, providing localized financial solutions. For instance, Karnali
Development Bank operates in Banke, Bardiya, and Dang districts.

• Development Banks Operating in 1-3 Districts: Focused on specific regions,

these banks cater to the financial needs of a limited number of districts.
 Narayani Development Bank, for example, operates in Nawalparasi, Chitwan,
and Makawanpur districts.

The paid-up capital of these banks varies, reflecting their size and operational capacity.
For instance, Muktinath Bikas Bank has a paid-up capital of NPR 565.72 crores as of
mid-July 2022, making it one of the largest in the sector.

These development banks play a crucial role in Nepal's financial landscape by

providing accessible financial services, promoting economic activities, and
contributing to the overall development of the country.

2.4.3 Financial Companies

In In Nepal, financial companies, classified as 'C' class financial institutions by Nepal

Rastra Bank (NRB), play a pivotal role in providing accessible financial services,
including loans, deposits, and investment products, thereby contributing significantly
to the nation's economic development. As of mid-July 2023, there are 17 such
companies operating across the country, with 15 of them functioning at the national
level, offering a diverse range of financial products and services. These institutions are
regulated by NRB, ensuring their adherence to financial standards and practices. The
paid-up capital of these companies varies, with figures ranging from NPR 43.2 million
to over NPR 108 million, reflecting their financial strength and capacity to serve a broad
customer base. Notable examples include Nepal Finance Ltd., Nepal Share Markets and
Finance Ltd., and Goodwill Finance Ltd., each contributing uniquely to the financial
landscape of Nepal. Overall, financial companies in Nepal are integral to the economic
fabric, offering essential services that support both individual financial needs and
broader economic growth.

2.4.4 Micro-finance Companies

Microfinance companies in Nepal, classified as 'D' class financial institutions by Nepal

Rastra Bank (NRB), play a crucial role in providing financial services to underserved
populations, particularly in rural areas. As of mid-July 2022, there are 65 such
companies operating nationwide, with 46 offering services at the national level. These
institutions offer a range of financial products, including savings and loan services,
aiming to promote financial inclusion and support economic activities at the grassroots
level. Prominent microfinance companies include Chhimek Laghubitta, Nirdhan Utthan
Laghubitta, and Deprosc Laghubitta, each contributing significantly to the sector's
growth and outreach.

2.5 Future of Banking Industry

The future of the banking industry in Nepal holds significant promise, with several
trends and developments shaping its trajectory. Technological advancements are at the
forefront of this transformation, particularly the growing shift toward digital banking.
The rise of mobile banking, internet banking, and digital wallets is making banking
services more accessible to a broader population, especially in rural and underserved
areas. This trend towards digitalization is driven by a younger, tech-savvy population
and the increased use of smartphones, which allow for convenient banking transactions
from anywhere at any time.

The Nepal Rastra Bank (NRB), the central regulatory authority, is also pushing for
modernization and consolidation within the sector. By encouraging mergers and
acquisitions, NRB aims to create more robust, efficient, and financially stable banks
that can better compete in an increasingly globalized market. This consolidation trend
will likely lead to fewer, but more powerful financial institutions capable of offering a
broader range of services, reducing costs, and improving overall operational efficiency.

In parallel, financial inclusion is expected to expand, with more emphasis on reaching

marginalized and rural communities. Financial products like micro-loans, insurance,
and savings accounts tailored to low-income groups are set to grow, enabling more
people to access essential banking services. As digital banking continues to evolve, the
integration of FinTech innovations like blockchain, AI-driven financial services, and
big data analytics could further streamline operations, improve customer experiences,
and enhance security.

However, challenges such as non-performing loans (NPLs), financial literacy,

cybersecurity concerns, and maintaining regulatory standards in a rapidly changing
landscape will require focused attention. Addressing these concerns while embracing
new technologies and improving financial education will be essential for the future
success of Nepal’s banking industry. Overall, the banking sector is expected to play a
key role in the country’s economic development by promoting inclusivity, supporting
businesses, and fostering innovation.
 CHAPTER III

INTRODUCTION TO MACHHAPUCHCHRRE BANK

3.1 Background

Machhapuchchhre Bank Limited (MBL), established in 1998, holds the distinction of

being the first regional commercial bank originating from Nepalwestern region.
Commencing its operations in 2000 from Pokhara, near the iconic Machhapuchchhre
(Fishtail) mountain, the bank has since evolved into a prominent national-level
commercial bank. MBL has been a pioneer in introducing modern banking technologies
in Nepal, notably being the first to implement the centralized GLOBUS BANKING
SYSTEM developed by Temenos NV, Switzerland. With its corporate headquarters
located at MBL Tower in Lazimpat, Kathmandu.

As of recent data, the bank boasts a paid-up capital exceeding NPR 11.62 billion and
operates an extensive network comprising 165 branch offices, 99 branchless banking
units,11 extension counters, and 204 ATMs across the country. MBL continues to offer
a comprehensive range of financial services, including retail and corporate banking,
digital banking solutions, and various loan products, all aimed at enhancing customer
convenience and satisfaction.

MBL bank operates with a dual ownership structure comprising promoter shareholders
and public shareholders. The share capital of Machhapuchchree Bank Limited (MBL)
is divided between promoters and the public as %. One individual promoter held the
maximum shareholding of 51.00% and public holds 49.00% of the total capital. .
Machhapuchchhre Bank Ltd (MBL) has 116,213,573.00 units of listed shares. The total
paid-up capital of MBL is Rs. 11,621,357,300.00, with each share having a face value
of Rs. 100.0.

This year the bank registered growth in net profit of NPR 1.62 billion. The bank's
portfolio grew by NPR 7.6 billion, with deposit growth of NPR 8.2 billion and a loan
growth of NPR -0.6 billion. The bank's net assets increased by NPR 7.9 billion. Non-
performing loans (NPLs) rose to 2.84% from 2.73% reflecting some of the difficulties
our borrowers face. Return on Equity (ROE) and Return on Assets (ROA) were
recorded at 11.71% and 0.48% respectively. The bank has a strong capital base with a
Capital Adequacy Ratio (CAR) of 13.20% which is comfortably above the regulatory
requirement of 8.0%.

3.1.1 Vision

The vision of Machhapuchchhre Bank Ltd. is to strive to become first choice for
customers by operating with integrity, transparency, and professionalism

• To be a trusted financial partner for individuals and businesses

• To lead in innovative banking services

3.1.2 Mission

The mission of Machhapuchchhre Bank Ltd. is to provide quality products and reliable
financial services to every customer with utmost courtesy and care, providing superior
value to our shareholders Wishlist promising growth opportunities to our employees.

3.1.3 Objectives

The objectives of Machhapuchchhre Bank Ltd. are:

a. To offer reliable, accessible, and efficient financial solutions to support

economic growth.
b. To reach underserved and rural populations, promoting inclusive banking.
c. To support businesses, SMEs, and entrepreneurs with financial solutions.
d. To develop innovative banking products and services tailored to meet customer
needs.
e. To maintain a strong financial position through effective risk management.
f. To provide training and career development opportunities to foster a skilled
workforce.
g. To generate sustainable returns for investors and stakeholders.
h. To support community development and environmental sustainability
initiatives.

3.2 Organization Design and Structure

As seen in the below figure MBL structure is comprised of boards of directors who lie
on the top of the power structure. The structure consists of six members of the board
including the chairman. Executive power is vested in the hands of the Chief Executive
 Officer (CEO). The CEO is appointed by the Board of Directors (BODs), where the
CEO of SADBL is Suyog Shrestha.

Figure 1
Organization Structure of MBL

Board of
Directors

Staff Mgt and Audit Committee Risk Management AML/CFT

Benefit Committee Committee
Committee Chief Executive
Officer
Management
Assets/Liability
Committee
Committee

Deputy Chief Deputy Chief

Executive Officer Executive Officer

Department Department Cluster Sub-Cluster Unit

Heads Heads Heads Heads Management

Department of Department of Head of Financial and

Head of
Credit and Investment Province Planning
Biratnagar
Marketing and Treasury No. 1Cluster Management
Sub-Cluster
Unit
Department of Department of Head of Head of
Operation and IT Human Procurement
Gandaki Surkhet
Resources Cluster and Sales Unit
Sub-Cluster
Department of
Legal and Department Head of Maintenance
Recovery of Internal Bagmati Head of Unit
Audit Cluster Kathmandu
Sub-Cluster Training Unit
Department of
Planning, R&D Department of Head of
Digital Lumbini Head of Digitalization
Department of Banking Cluster Butwal Sub- and Information
Consumer Cluster Archiving Unit
Banking Department
of CSME
Banking Head of Financial
Others Sub- Services and
Cluster Audit Unit

Judicial
Review and
Hearing Unit
3.3 Major Products and Services of the Organization

MBL Bank in Nepal offer a variety of products and services to support economic
growth, including loans, deposits, and financing. By providing a wide variety of
services, MBL aims to make banking transactions for its clients simpler. The bank cares
about its clients, and by offering a variety of services, it tries to suit their needs. The
following are some of the goods and services provided by MBL which are classified
into deposits, loans, digital banking, ATMs, and other services which are further
explained:

3.3.1 Deposits

Machhapuchchhre Bank Limited (MBL) offers a variety of deposit products designed

to meet the financial needs of individuals, businesses, and organizations. These
accounts provide security, liquidity, and interest earnings, allowing customers to
manage their funds effectively. The deposit products offered by the bank are:

A. Saving Account. Saving accounts are designed for individuals looking to save
money while earning interest. These accounts come with various benefits such
as easy withdrawals, competitive interest rates, and digital banking access. MBL
offers several types of savings accounts to cater to different customer groups.
There are different types of saving accounts. They are normal saving account,
with its interest as : MBL Karmashil Bachat Khata requires 6.00%, M-Smart
Bachat Khata 5.00%, Mero Lagani Bachat Khata 4.00%, Smart Plus Saving
Account 5.00%, Machhapuchchhre Bachat Khata 3.00%, NRN Saving Account
3.00% , MBL Smart Bachat Khata 3.00%, Ek Byakti Ek Khata Yojana 3.00%,
Normal Saving 3.00% , Nari Shakti bachat khata 3.00%, Digi Yuba Bachat
Khata3.00%, Shareholders Saving 3.00%, Samman Bachat Khata 3.00%
,BalBalika Bachat Khata 3.00%, MBL Premium Saving Account 3.00% ,MBL
Retirement Plan Account 3.00% ,MBL New Smart Bachat Khata 3.00% ,v
Salary Management Account 3.00% ,Special Salary Management
Scheme3.00%,MBL Smart Salary Account 3.00 % ,MBL Surakshit Talab
Khata3.00%, MBL New Smart Talab Khata 5.00%. The saving accounts are
settled as to make flexible to all the individuals business owners and all other
parties with certain rate per annum provided.
 B. Fixed Deposits Account. Machhapuchchhre Bank offers Fixed Deposit (FD)
Accounts, which are ideal for individuals and businesses looking to invest their
funds for a fixed tenure and earn higher interest compared to regular savings
accounts. Fixed deposits are available for various tenures, ranging from a few
months to several years. MBL’s interest rate on fixed deposits (FD) is 3.5% for
to below 6 months, 3.75% for 6 months to below 1year, 5% for 1 year and
above. Interest credited to the account either monthly, quarterly, or at maturity,
depending on the customer’s preference.
C. Current Account. The Current Account offered by Machhapuchchhre Bank is
designed for businesses, companies, and organizations that require frequent
banking transactions. Unlike savings accounts, a current account does not earn
interest, as it is primarily intended for managing daily financial activities. It
allows account holders to deposit and withdraw funds without limitations,
making it ideal for businesses that need to handle large volumes of transactions
regularly. The account comes with cheque book issuance, online banking,
mobile banking, and fund transfer services. Machhapuchchhre Bank’s Current
Account is suitable for all types of businesses, including sole proprietors,
partnerships, corporations, and NGOs. This account ensures smooth financial
transactions, better cash flow management, and secure banking solutions,
making it a preferred choice for business professionals and enterprises.

3.3.2 Loan Products

MBL provides a wide range of loan products to cater to the financial needs of
individuals, businesses, and organizations. These loan products come with competitive
interest rates, flexible repayment options, and customized solutions to help borrowers
meet their financial goals. The major loan products offered by the bank are:

A. Personal Loan. MBLprovides personal Loans with attractive financing options

to meet the diverse financial needs of individuals. Under this scheme, the bank
offers up to 3.00% financing with a maximum tenure of up to 15 years, allowing
borrowers to repay their loans conveniently. The bank provides different types
of personal loans, including Personal Overdraft Loans, Personal Term Loans,
and Personal Demand Loans, each tailored to specific financial requirements.
For a Personal Overdraft Loan, the maximum loan limit is NRs. 5,000,000 (5
 million), enabling borrowers to access funds as needed, with interest charged
only on the utilized amount.
B. Home Loan. MBL offers a home Loan with financing of up to 3.00% and a
maximum repayment tenure of up to 25 years, making it a suitable option for
individuals looking to purchase, construct, or renovate their homes. This loan
provides borrowers with the flexibility of long-term repayment, ensuring
affordability through structured EMIs. The minimum loan amount available is
NRs. 500,000 (Five Hundred Thousand), while the maximum limit extends up
to NRs. 15,000,000 (Fifteen Million), depending on the borrower's income,
repayment capacity, and collateral sufficiency.
C. Micro-finance Loan. MBL provides Microfinance Loans to support small
businesses, entrepreneurs, and low-income individuals who require financial
assistance for their livelihood and business growth. With financing of up to
3.00% interest rate and a maximum tenure of up to 5 years, this loan is designed
to provide accessible credit with manageable repayment terms. Microfinance
loans can be used for small-scale business investments, agriculture, livestock
farming, handicrafts, retail shops, and other income-generating activities.
D. Vehicle Loan. MBL offers a vehicle Loan with financing of up to 3.00% and a
maximum tenure of up to 5 years, making it a convenient option for individuals
looking to purchase a new or used vehicle. This loan is available for private and
commercial vehicles, helping customers own a vehicle with affordable
repayment options. To be eligible for this loan, the applicant must be at least 21
years old and should not exceed 60 years at the time of loan approval. The loan
can be used to finance cars, motorcycles, commercial transport vehicles, or
business-related automobiles.
E. Gold Loan. MBL offers a gold Loan with financing of up to 4.00% and a
maximum tenure of up to 1 year, making it an excellent short-term financing
solution for individuals in need of urgent cash. This loan allows customers to
pledge their gold ornaments or jewelry as collateral and receive funds quickly
with minimal documentation. The maximum loan amount is up to 80% of the
market value of the gold, ensuring that borrowers can access a significant
portion of their assets worth while retaining ownership.
F. Subsidized Loan. MBL provides Subsidized Loans with financing of up to
2.00% and a maximum tenure of up to 5 years. This loan is designed to support
 entrepreneurs, startups, small businesses, farmers, women entrepreneurs, and
other priority sectors in line with government subsidy programs. These loans
are typically provided under government-backed schemes to encourage
investment in agriculture, education, small-scale industries, and self-
employment initiatives.

3.3.3 C-ASBA, ASBA, Mero share Services

MBL provides services related to C-ASBA, ASBA, and Mero Share, helping customers
participate in public offerings like IPOs, FPOs, and Rights Issues in the Nepalese stock
market. C-ASBA is an enhanced version of the traditional ASBA system, enabling
investors to apply for public offerings (IPOs, FPOs, Rights Issues) through their bank
accounts with the application amount blocked until share allocation. SADBL
encourages investors to obtain a C-ASBA Registration Number (CRN) to utilize this
service. ASBA allows investors to apply for shares in public offerings while keeping
the application amount in their bank accounts, ensuring transparency and efficiency. To
access these services, investors need to register their Demat accounts and obtain a
BOID (Beneficiary Owner Identification Number). MBL, as a registered C-ASBA
bank, offers these services to its customers. Demat Account services with an annual
charge of Rs. 100 for maintaining the account. Additionally, the bank charges Rs. 50
for C-ASBA

3.3.4 Safe Deposit Locker Services

MBL offers a comprehensive Safe Deposit Locker Service, providing customers with
secure storage options for valuables such as jewelry, important documents, and other
personal belongings. The lockers are available in various sizes to cater to different
storage needs, and the bank emphasizes stringent security measures, including
biometric access, CCTV surveillance, and 24-hour monitoring to ensure the safety of
stored items. The security deposits requirements for small size locker are NRs. 7,500
to NRs.10,000, medium size locker are NRs. 10,000 to NRs.12,000 and large size to
NRs.15,000 to NRs. 20,000 and jumbo size locker are NRs.40,000 to NRs.50,000. The
annual rental charges for small size locker are NRs. 3000 to NRs. 3,500, medium size
locker are NRs. 4000 to NRs. 4500, large are NRs. 8000 to NRs. 10,000 and jumbo size
locker are NRs. 12,000 to NRs. 14,000. If a customer loses the locker key, a fee of NRs.
3,000 plus actual costs will be charged for breaking the locker. A fee of NRs. 2,000 is
applicable when surrendering the locker.

3.3.5 Remittance

MBL offers a range of remittance Services to facilitate the safe and efficient transfer of
money to and from Nepal. These services are designed to meet the needs of individuals
and businesses who require secure and reliable remittance solutions. It offers remittance
services in partnership with a number of trusted remittance providers. The remittance
partners are i-pay remit, prabhu money transfer, Himal remit, western union, city
express, kumari express, samsara money transfer. The remittance service provided by
MBL Remit Online which is a web-based remittance system that allows money to be
sent to Nepal from worldwide, payment can be collected through network of more than
30 outlets.

3.3.6 Mobile Banking Services

"MBL M- Smart Banking" is the mobile banking app that allows customers to manage
their accounts and perform transactions anytime, anywhere. The service enables users
to view account balances, transfer funds between MBL accounts or to other banks, pay
utility bills, recharge mobile phones, and request funds from others. It also provides an
ATM and branch locator, ensuring easy access to banking services. The app is secure
with two-factor authentication and options for PIN or biometric login. Available for
download on both Android and iOS, MBL’s Mobile Banking offers convenience, speed,
and security for all banking needs. Mobile banking requires rs.350 charge for yearly
renewal/ maintenance. For mobile banking block/ unblock rs.25 is required. Rs. 200
per additional account is required for account linkage.

3.3.7 Internet Banking Services

MBL provides internet Banking services that allow customers to access and manage
their accounts through a secure online platform. This service offers a wide range of
features, enabling users to perform various banking transactions from the comfort of
their homes or offices. Customers can check account balances, view transaction
histories, transfer funds between MBL accounts or to other banks, pay utility bills, top-
up mobile phones, and even request for loan repayments. The platform also provides
the option to set up recurring payments, download account statements, and track
payment histories. Secure login features, including two-factor authentication, ensure
the safety of customer data and transactions.

3.3.8 VISA Debit Card Services

The VISA Debit card can be used for cash withdrawals, making payments at merchants,
online purchases, and accessing funds through ATMs at over 30 locations. The issuance
fee is Rs. 1000 on a one-time basis, or Rs. 300 annually starting from the second year,
with the first year being free. Charges for card replacement, whether due to expiry,
damage, or loss, are Rs. 300, and for blocking or unblocking the card, the fee is Rs. 100
per request. If an account is closed and the card is still valid, a fee of Rs. 200 applies if
closed within the first year, or Rs. 100 after the first year. Uncollected cards not received
within six months incur a Rs. 100 fees for re-pinning, with a Rs. 200 charges for
destruction. Additionally, Rs. 150 is charged for re-PIN requests, and a Rs. 50 fee is
applied for a wrong PIN reset per request.

3.3.9 Cashless Transaction

In recent years, market orientation has changed to customer orientation. After

understanding the importance of the simultaneous use of different channels of banking
and financial companies, MBL focuses on digital banking, especially when it comes to
maintaining a relationship with the customer. MBL has launched Card less Cash
Withdrawal through ATM. This feature allows mobile banking users to withdraw cash
from MBL ATM Machines without using physical VISA Debit Card. Customer can
enjoy the Debit Card service from Mobile Banking system or Cash Withdrawal. For
this feature costumer must register in Mobile Banking and must have fund transfer
feature available.

3.3.10 Any Bank Branching Service (ABBS)

From all MBL’s locations around the nation, MBL has been offering the Any Branch
Banking Service. All the branches of MBL are connected to each other. Any accounts
opened in any of our branches can be accessed through any other branches at real time.
So, with ABBS our customers can deposit, withdraw and enquire balance for accounts
opened in one branch from any of our other Branches.
3.3.11 QR Code services

MBL offers QR Code Services to facilitate seamless and contactless payments. The QR
Code Subscription is free for customers, allowing them to easily make payments using
QR codes. If a customer requires the re-issuance or replacement of their QR code, the
charge is NRs. 150. Additionally, Audio QR Devices are available at an actual cost,
based on the device's price. This service provides a convenient, secure, and efficient
way for both customers and merchants to engage in cashless transactions.

3.4 SWOT Analysis of the organization

3.4.1 Strengths

a. MBL offers a diverse set of banking products and services, including

savings accounts, loan facilities, remittance services, mobile banking, and
digital banking, which meet the varied needs of individual and business
customers.
b. MBL is focused on providing customer satisfaction by offering competitive
interest rates on savings accounts and loans, as well as personalized
services, which foster long-term customer relationships.
c. The bank has an extensive network of branches and ATMs across Nepal,
ensuring easy access for customers, especially in rural and urban areas.

3.4.2 Weakness

a. Limited international reach compared to larger global banks.

b. Heavy reliance on the local economy and its economic fluctuations.
c. Lack of awareness in some areas about the full range of banking services
available.
d. Potential customer service challenges due to a growing customer base and
demand.

3.4.3 Opportunities

a. Expansion of digital banking services to attract tech-savvy customers.

b. Growing middle-class population in Nepal, increasing demand for financial
products.
c. Opportunity for strategic partnerships with more international financial
institutions.
 d. Potential growth through financial inclusion by offering micro-loans and
targeting unbanked populations.

3.4.4 Threats

a. The Nepali banking sector is highly competitive, with numerous local and
international banks offering similar products and services, which could affect
MBL’s market share and customer acquisition.
b. Nepal’s economy is subject to various external and internal factors, such as
inflation, political instability, and global economic conditions, which could pose
risks to the bank’s financial performance and stability.
c. With the increasing reliance on digital banking, MBL faces the threat of
cyberattacks and data breaches, which could damage its reputation and customer
trust if not properly managed.
d. Changes in government policies or financial regulations could impact MBL’s ability
to operate efficiently, comply with new rules, and maintain profitability.

3.5 Future Plans and Strategies of the organization

MBL has developed several forward-looking plans and strategies to ensure sustainable
growth and strengthen its market position in Nepal. These strategies aim to meet the
evolving needs of customers, leverage technology, and expand the bank’s reach.

Future Plans:

a. Increase the number of branches, especially in underserved rural areas, to improve

accessibility.
b. Adopt AI-powered tools, improve cybersecurity, and explore blockchain-based
solutions for secure and efficient banking.
c. Integrate sustainability practices and focus on green finance and social welfare
programs.
d. Expand the range of financial products, including insurance, investment, and
specialized loan offerings.
e. Introduce micro-loans and other services targeting unbanked populations,
particularly in remote areas.
f. Enhance mobile and internet banking platforms to offer more comprehensive and
user-friendly services.
Strategies:

a. Invest in skill development programs to ensure employees are capable of supporting

digital transformation and innovation.
b. Leverage data analytics to offer personalized banking services and improve
customer satisfaction.
c. Launch campaigns to promote digital services, new products, and financial
inclusion initiatives to increase customer adoption.
d. Implement advanced cybersecurity measures to protect customer data and enhance
trust.
 CHAPTER IV

ANALYSIS OF ACTIVITIES DONE AND REFLECTION

4.1 Introduction

During my internship, I was actively engaged in various banking operations, assisting

with essential financial documentation and customer service processes. As prescribed
by the faculty of management of Trinity International College I had to go through an 8-
week internship period in Machhapuchchhre Bank Limited. I was provided a chance to
work CSD.

My role in the organization primarily involved supporting the banking staff in

document verification, processing requests, and assisting customers with banking
services. Through this experience, I gained valuable insights into the system and
processes of the banking department, including the workflow of financial
documentation, customer service protocols, and digital banking integration. I developed
a strong understanding of the importance of accuracy and efficiency in banking
transactions and learned how different departments coordinate to deliver seamless
financial services. This internship has significantly enhanced my knowledge of banking
operations, improved my professional skills, and provided a deeper appreciation of the
structured processes within a financial institution.

4.2 Activities Performed in CSD

The Customer Service Department (CSD) is responsible for managing and addressing
customer inquiries, issues, and feedback, ensuring that customers have a positive
experience with the company's products or services. Its primary functions include
answering questions, providing product information, assisting with troubleshooting,
handling complaints, and processing orders or returns. CSD is the first point of contact
for customers needing support, and its role is essential in maintaining customer
satisfaction and loyalty. By addressing customer concerns effectively and efficiently,
the department plays a key role in building trust and enhancing the company’s
reputation.

A well-functioning CSD helps in customer retention by resolving issues quickly and

offering personalized service. It uses tools like CRM software, live chat, and helpdesk
platforms to streamline operations and improve response times. Customer service
representatives are trained to be empathetic, responsive, and solution-oriented to meet
the varied needs of customers. Through these efforts, the department not only addresses
immediate concerns but also fosters long-term relationships, contributing to overall
business growth and brand loyalty.

Table 2
Activities Performed in CSD

Category Tasks
Account Opening Account opening form (individual), corporate opening
form: saving account, current account, fixed deposit
account
KYC update KYC individual form, KYC corporate form
Account closing Account closing form
Others Issuing cheques, issuing ATMs, provides statement,
handling telephone calls, filing and documentation,
photocopying, scanning documents, locker access form,
mobile banking form, C-ASBA registration form, Demat
account

4.3.1 Account Opening Form

The account opening forms for individual and corporate customers are essential to
initiate a banking relationship. The individual account opening form includes personal
details like name, address, and identification proof, while the corporate form requires
company details such as business name, registration number, and authorized
signatories. As an intern, I assisted customers in filling out these forms, ensured they
submitted the required documents, and helped streamline the submission process to
ensure the account opening procedure was smooth. Once verified, the form is forwarded
to the concerned department for approval. After approval, the bank issues an account
number and provides the customer with account-related documents, such as a passbook,
cheque book, and online banking credentials.
4.3.2 KYC Update

KYC (Know Your Customer) procedures involve collecting identity and address
verification documents to prevent financial fraud. For individuals, KYC includes
personal identification and proof of address documents. Corporate KYC requires
business registration documents, proof of authorized signatories, and other details. I
helped in ensuring that both individual and corporate customers’ KYC forms were
correctly completed, verified the accuracy of documents, and ensured compliance with
regulatory standards.

4.3.3 Account Closing form

Customers who wish to close their bank account must fill out an account closing form.
The form includes details such as the account number, reason for closure, and remaining
balance withdrawal instructions. Interns assist in verifying the request, ensuring that all
dues are cleared, and guiding the customer through the closing process. They also check
if the customer has any active services, such as loans or credit cards, that need to be
settled before closing the account. I helped verify that all required fields were
completed, checked for any pending transactions, and ensured the account closure was
processed accurately.

4.3.4 Cheque Printing

Customers may request cheques for payments or withdrawals from their accounts, and
the bank must ensure that all details on the cheque are correctly filled out. The essential
information includes the payee's name, the amount written both in figures and words,
and the customer's signature. The bank must also verify the customer's account to
ensure sufficient funds are available for the transaction. I helped in ensuring the
customer’s account details and cheque numbers were printed correctly on the cheques,
verifying that all information was accurate. Once verified, the cheques were securely
packaged and delivered to the customers.

4.3.5 Providing Account statements

As an intern in the Customer Service Department, providing account statements was an

important task that involved retrieving and delivering account information to
customers. When a customer submitted a request for their account statement, I first
ensured that the correct details, such as the account number and the time period for the
statement, were provided. I then accessed the bank’s system to retrieve the requested
statement, making sure all transactions and balances were accurately reflected. If there
were any discrepancies or missing information, I would double-check with the relevant
department to ensure the statement was correct before proceeding. Once the statement
was retrieved, I provided it to the customer based on their preferred delivery method,
whether it was by email or through a physical copy. If the customer requested a physical
copy, I would print the statement, ensure it was properly packaged. Throughout the
process, I maintained strict confidentiality and ensured that all statements were
delivered promptly and securely.

4.3.6 Handling Telephone Calls

Handling telephone calls involves answering customer inquiries related to their

accounts and providing general banking information. Interns are responsible for
maintaining professionalism while answering calls, addressing concerns, and ensuring
that customers receive accurate and timely information. Whether it's checking account
balances, answering questions about bank services, or clarifying any issues, telephone
communication is a key aspect of customer service. I helped customers with various
inquiries, including account information, transaction status, service requests, or general
banking questions. This experience taught me the importance of effective
communication and active listening while ensuring customer satisfaction and problem
resolution in a timely manner.

4.3.7 Different kinds of forms

As an intern in the CSD, I was responsible for handling various banking forms essential
for customer transactions and financial services. I processed was the C-ASBA
Registration Form, which allowed customers to apply for Initial Public Offerings
(IPOs) directly from their bank accounts. I assisted in verifying details such as the
account number, PAN number, and Demat account information to ensure accuracy.
Similarly, I handled the Demat Account Form, which was required for opening an
account to hold shares electronically. This form included personal information,
nominee details, and bank account linkage, allowing customers to trade stocks without
physical certificates. Additionally, I worked with the Mobile Banking Form, ensuring
customers provided the correct details for mobile banking activation. I explained the
features of mobile banking, such as fund transfers and bill payments, and guided
customers through the registration process. Apart from digital banking and investment-
related forms, I also managed security-related documents such as the Locker Access
Request Form, which customers needed to complete each time they accessed their
safety deposit lockers. Another critical form I processed was the Fixed Deposit (FD)
Form, which customers used to invest in fixed deposits for a specific tenure at a fixed
interest rate. My role involved checking details like the deposit amount, tenure, and
nominee information while guiding customers on the different FD options available.
Managing these forms helped me develop a strong understanding of banking
procedures, improve my attention to detail, and enhance my communication skills when
assisting customers with their financial needs.

4.3.8 Photocopy, Scanning documents

As an intern in the Customer Service Department, I was responsible for photocopying

and scanning documents to support various banking operations. I handled photocopying
tasks for important forms such as KYC documents, account opening applications, and
authorization letters, ensuring that copies were clear, complete, and correctly organized
for record-keeping. Additionally, I managed scanning documents to create digital
backups of customer requests, verification forms, and agreements, ensuring they were
properly named and stored in the bank’s system for easy retrieval. Accuracy and
attention to detail were essential in this process to maintain the confidentiality and
integrity of important banking records. This experience helped me develop strong
organizational skills while ensuring the smooth handling of sensitive documents.

4.3.9 Filing and Documentation

As an intern in the Customer Service Department, I was responsible for filing and
documentation, ensuring that customer records and banking documents were properly
organized and maintained. I handled various forms, including account opening
applications, KYC documents, FD forms, and customer requests, systematically
arranging them in designated files for easy retrieval. I also verified that all necessary
documents were complete before filing to prevent errors or missing information.
Additionally, I assisted in maintaining digital records by scanning and updating
electronic files in the bank’s system, ensuring accuracy and secure storage. This
experience helped me develop strong organizational skills and attention to detail while
reinforcing the importance of proper documentation in banking operations.

4.4 Reflection of the Internship

I had the opportunity to complete my internship at a well-established bank, where I

worked in the Customer Service Department (CSD). Throughout my internship, I was
involved in various tasks and responsibilities that aligned with my academic
background and professional aspirations in business administration.

In the CSD, I was involved in processing a range of customer-facing tasks. I assisted in

processing account opening forms for both individual and corporate clients, ensuring
that all documentation was completed accurately. I also handled KYC verifications and
share forms to ensure compliance with banking regulations. My role involved
photocopying, scanning, and mailing documents, tasks that helped me develop strong
attention to detail and customer service skills. Additionally, I learned to handle sensitive
customer information with the utmost confidentiality. By managing these various forms
and assisting in the smooth processing of banking operations, I gained practical
experience in document management, customer service, and banking processes, skills
that directly relate to my academic training and future career in business or finance.

This internship has significantly contributed to my academic and professional

development. By applying the theoretical knowledge from my studies to real-world
tasks, I gained a deeper understanding of how business operations function in a
professional environment. These experiences not only enhanced my technical abilities
but also improved my interpersonal and organizational skills. As I move forward in my
academic and professional journey, I am confident that the skills and insights gained
during this internship will help me excel in my future career, particularly in the areas
of business administration, finance, and customer service.

4.5 Problem Solved

It is unavoidable to run into different issues and challenges while doing regular
operations in a bank. During the internship, there were various issues:
4.5.1 Problem related to ATMs

A common problem related to ATMs is cash dispensing errors, where the ATM either
dispenses the incorrect amount of cash or fails to dispense any at all after a transaction
request. This can occur due to machine malfunctions, software glitches, or issues with
the cash replenishment process. The impact of this issue is significant: customers may
find discrepancies in their account balance, leading to confusion, frustration, and a loss
of trust in the ATM service. It may also require time-consuming investigations to
resolve the issue, involving both the customer and bank staff, which can delay the
resolution process and cause further dissatisfaction.

4.5.2 Problem related to communication

Miscommunication between a customer and the CSD can lead to a variety of issues,
such as misunderstandings about the nature of a request, incorrect information being
provided, or missed instructions. By actively listening, confirming details, and
providing clear communication, the intern helped prevent misunderstandings and
ensured a smoother resolution of customer issues, ultimately improving the overall
customer experience.

4.5.3 Problem related to inaccurate account information

Inaccurate account information is a significant issue that can arise in the Customer
Service Department (CSD) when customer service representatives provide incorrect
details about accounts, products, or services. This often occurs due to outdated systems,
technical errors, or miscommunication between departments. The intern likely played
a role in resolving issues related to inaccurate account information by assisting in
verifying and updating customer records.

4.5.4 Problem related to system or technical issues

System or technical issues in banking, such as problems with online banking, ATM
networks, or customer account management systems, can significantly disrupt the
processing of customer transactions. These issues may include system crashes, slow
transaction processing times, errors in account balances, or failures in payment
processing. When customers face such technical difficulties, they are unable to
complete transactions like fund transfers, bill payments, or ATM withdrawals, leading
to frustration and delays in resolving their financial needs. The intern was assigned to
empathize with the clients and provide them with potential solutions while striving to
resolve the problem and ensure client happiness.

4.5.5 Problem related to long wait time Commented [u1]: No italic all titles

Long wait times in the Customer Service Department can be a significant issue,
especially when there is high customer volume, limited staff, or inefficient processes in
place. Customers may feel frustrated and undervalued when they have to wait for
extended periods to have their concerns addressed, leading to dissatisfaction and a
negative perception of the bank’s services. The intern likely helped reduce long wait
times by assisting with various tasks to ensure smoother operations and also direct them
to the right department or representative, and handled simpler requests on the spot.

4.6 Felt Observed Gaps

During my internships, I observed several gaps that could have been improved. In the
CSD, time management and efficiency were sometimes challenged by the volume of
tasks, while cross-department communication and training on specialized systems (like
KYC and mobile banking forms) could have been better. Additionally, a clearer
feedback loop from customers might have helped improve service delivery.
 CHAPTER V

CONCLUSION AND LESSON LEARNT

5.1 Conclusion

The internship at Machhapuchchhre Bank Ltd. provided a valuable opportunity to gain

practical experience in banking operations, particularly in the Customer Service
Department (CSD).Throughout the internship, I was able to apply theoretical
knowledge to real-world banking tasks, enhancing my understanding of customer
service, account management, compliance procedures, and employee document
management. These tasks improved my attention to detail, problem-solving abilities,
and customer service skills. Additionally, exposure to banking regulations and
compliance procedures helped me understand the importance of accuracy and
efficiency in financial services.

Overall, the internship was a highly enriching experience that allowed me to develop
both technical and interpersonal skills. It provided a deeper insight into the banking
industry, reinforced my knowledge of financial regulations, and improved my ability to
work in a professional environment. The exposure to real-world banking operations
will undoubtedly be beneficial for my future career, equipping me with the skills and
confidence to pursue opportunities in the financial sector.

5.2 Lesson Learnt

The internship at Machhapuchchhre Bank Ltd. was a valuable learning experience that
provided both professional and personal growth.

a. Learned how to analyze customer issues and find quick solutions while handling
banking services. Developed the ability to resolve account-related problems
efficiently with minimal delays.
b. Understood the importance of punctuality, proper communication, and
maintaining confidentiality in a banking environment. Learned how to interact
professionally with colleagues and customers while following workplace ethics.
c. Developed the ability to adapt to a fast-paced banking environment and handle
multiple tasks under pressure. Learned the importance of continuous learning
and staying updated with banking policies and procedures.
d. Learned the importance of maintaining customer and employee data
confidentiality to prevent unauthorized access.
e. Understood the importance of collaboration and coordination with colleagues
to ensure smooth banking operations. Learned how to work efficiently in a team
environment, share responsibilities, and support coworkers.