AN INTERNSHIP REPORT

ON
MUKTINATH BIKAS BANK LIMITED

By

Kabita Saud
Amity College Mahendranagar , Kanchanpur

Exam Roll No : 21037064

P.U. Regd . No :2021-2-03-5911

Submitted to

Amity College

Mahendranagar ,Kanchanpur

Submitted in partial of the requirement for the degree of

Bachelor of Business Administration (BBA)

At the
Amity College

Pokhara University

may 28 ,2025

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 CHAPTER-1 INTRODUCTION

1.1. Background of the study

The internship program is an essential component of academic learning that bridge the gap between
theoretical knowledge and practical experience. As part of my academic curriculum I, undertook
an internship at Muktinath Bikas Bank Limited one of the leading national - level development
banks in Nepal renowned for its focus on inclusive banking and supported for rural and semi -
urban economic development. The Bank provide wide range of financial services, including micro
finance, SME loans, remittance service, digital banking, and saving product tailored to meet the
need of various customer segments. With a strong focus on inclusive banking Muktinath Bikas
Bank has contributed to empowering low- income, groups entrepreneurs, farmers, and small
business by offering accessible and adorable financial solution. This internship Provided an
opportunity to gain firsthand experience in the operation of a development bank and understand
the practical application of financial principle and banking service. The internship program is
designed to provide students with practical experience in real world organizational setting,
allowing them to apply theoretical knowledge gained during their academic studies.

During the internship I was placed in 2 key departments. The customer service department (CSD)
and the loan department. The customer service department serves as the first point of contact for
client and its responsible for managing account opening handling customer inquiries providing
transaction service and ensuring smooth day- to- day banking operation. This department taught
me to the importance of customer relations, attention to detail, and effective communication in
maintaining clients satisfaction and trust. Simultaneously the loan department exposed me to the
practical aspects of credit operation, including loan processing documentation, credit appraisel,
risk assignment and consumer dealing. Understanding how loan are issued, monitored and
recovered in a development bank setting depend on my appreciation of the role credits plays
fostering economic development.
This internship provided a valuable opportunity to develop a deeper understanding of banking
operation, improving my interpersonal skills and connect classroom learning with practical
application in a development bank context. It allows the intern to understand the functioning of a
development bank and challenge faced in delivering financial service to diverse committes. The
background of the study highlights the importance of understanding how development banks like
Muktinath Bikas Bank contribute to Nepalese economic growth and financial inclusion goals. It
also sets the foundation for evaluating the effectiveness of banking strategies and identifying area
for innovation and improvement in the banking sector.

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1.2. Objective of the study

The objective of an internship can be very based on types, field, and interns goals. However, there
are common objective for the most internship, along with specific goals based on the intern role
or the company need.

1.2.1 General objective

The general objective of this internship are:

• To give student hand- on experience in their field of study, complementing their theoretical
knowledge.
• To allow student to practice communication skills, managerial, and interpersonal in a real
world work environment.
• To provide an understanding of a business sector, particularly the banking industry.
• To help students establish professional networks within their field.

1.2.2. Specific objective

The specific objective of the internship are:

• To enhance interpersonal skills required in the cooperative environment.

• To strengthen the basic decision- making and problem-solving skills.
• To collaborate effectively with others and work as a part of team.
• To acquire or thorough understanding of the formal operations and activities within the
organizations.
• To complete assigned task within the given time frame and take responsibility for ones
own work.

1.3. Methodology

1. Data Collection Methods

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a. Primary Data:
-Primary data was gathered through direct engagement and firsthand experiences within
the bank's operational environment. The methods included:
i) Direct Observation: Monitoring daily banking operations, customer interactions, and
internal processes to gain insights into the bank's functioning.
ii) Informal Interviews: Engaging with bank staff and customers to understand procedures,
challenges, and service delivery mechanisms.
iii) Participation in Tasks: Actively assisting in tasks such as account opening, handling
customer queries, and processing transactions to acquire practical knowledge.

b. Secondary Data:
-Secondary data was sourced to supplement primary findings and provide a broader
context. Sources included:
i) Bank's Official Documents: Reviewing MNBBL's annual reports, brochures, and
policy manuals.
ii) Academic Literature: Consulting textbooks, journals, and previous internship reports
related to banking operations.
iii) Online Resources: Accessing information from MNBBL's official website and
reputable financial news portals.

2. Data Analysis Techniques

-The collected data was analyzed using qualitative methods to interpret patterns, behaviors,
and operational efficiencies.
i) Descriptive Analysis: Summarizing observations and experiences to depict the bank's
work environment and culture.
ii) Comparative Analysis: Contrasting theoretical knowledge with practical experiences
to identify gaps and learning outcomes.
iii) SWOT Analysis: Evaluating the strengths, weaknesses, opportunities, and threats
related to MNBBL's operations based on the internship experience.

3. Limitations

-While efforts were made to ensure comprehensive data collection and analysis, certain
limitations were encountered:

i) Time Constraints: The internship duration was limited, restricting prolonged

engagement with all departments.
ii) Access Restrictions: Confidentiality policies limited access to certain internal
documents and meetings.

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 iii) Subjectivity: Observations and interpretations are based on personal experiences and
may carry inherent biases.

1.4. Company profile

Muktinath Bikas Bank Limited is a leading national-level development bank in Nepal, established
in 2007. Headquartered in Kamaladi, Kathmandu, the bank has over 179 branches across the
country and serves more than 1.4 million customers. With a strong focus on financial inclusion,
especially in rural areas, the bank offers a full range of financial services, including retail,
microfinance, and digital banking. Muktinath Bikas Bank is recognized for innovation and
excellence in development banking, holding assets exceeding NPR 131 billion. It also operates
subsidiaries like Muktinath Capital and Muktinath Krishi Company to promote capital market
services and agricultural development. Its mission is to empower individuals and businesses for
shared prosperity.

Muktinath Bikas Bank Mahendranagar branch established on Chaitra 14, 2075 B.S. (March 28,
2019), the Mahendranagar Branch of Muktinath Bikas Bank serves as a key financial institution
in the Far-Western region of Nepal. It is Situated in the heart of Mahendranagar, this branch offers
comprehensive banking services, including savings and current accounts, loans, remittance
services, and digital banking solutions. It also houses a Small and Micro Banking Desk dedicated
to promoting financial inclusion among underserved communities.

*Key Services *

Retail and corporate banking

Small and microfinance services

Digital banking (mobile and internet banking)

Remittance services

Foreign currency transactions

The deep rooted values for social inclusion through access to finance with core principal of जनता
बैंकमा होइन, बैंक जनतामा जानु पर्दछ” (instead people coming to Bank, Banks should go to the
door of the people), we prioritized establishing branches in rural regions of Nepal with pressing
demand for banking services. Our popularity within the local community can be attributed by
consumer -friendly offerings and our door- to- door services.

*Location:*
Bhimdatt Municipality-4, Galli No.1, Kanchanpur, Nepal
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*Contact:*

Phone: 099-522098 / 099-522298

Email: [email protected]

1.5. Organizations Background

With the vision to “Be the most preferred robust bank in Nepal while uplifting socio-economic
status of people,” who have been walking the dream since 3rd January 2007 with the operating
inception in Putalibazaar Syangja as a development bank licensed by Nepal Rastra Bank with
scope within Syangja Kaski and Tanahun district with upgradation to national level Development
Bank in July 2015, initiated by local visionaries led by the late Khagendra Raj Regmi and founding
CEO Bharat Raj Dhakal. Over the years, MNBBL expanded its operations, becoming a ten-district
development bank in 2012 and achieving national-level status in 2015. The bank relocated its
central office to Kamaladi, Kathmandu, in 2016. This bank have remarkable footprint in a
Nepalese banking industry as a leading development bank with balance sheet size of NPR 131
billions, 178 branches, 22 ATM spread across the county serving more than 1.4 million happy
customers from the diversities of social stratum in the country (according to 2023). The deep -
rooted values for social inclusion through access to finance with core principal of जनता बैंकमा
होइन, बैंक जनतामा जानु पर्दछ” (instead people coming to Bank, Banks should go to the door of
the people), we prioritized establishing branches in rural regions of Nepal with pressing demand
for banking services. Our popularity within the local community can be attributed by consumer -
friendly offerings and our door- to- door services. The bank is recognized for its focus on financial
inclusion, particularly through its Inclusive Banking Department, which offers microfinance
services to underserved communities. MNBBL has also received accolades such as the European
Microfinance Award in 2020, reflecting its commitment to sustainable banking practices.

A Dive into the Achivements of Muktinath Bikas Bank

1. 2007 Established as 3 District Devlopment Bank.

2. 2008 start microfinance program.
3. 2010 crossed business of NPR 1billion.
4. 2012 upgrade to 10 district development bank.
5. 2015 upgrade to national level development bank.
6. 2018 emerged as number 1 development Bank of Nepal.
7. 2020 Won European microfinance award 2020 and BPA 2019.

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8. 2021 first development bank to have accomplished 1 billion +profit.
9. 2022 crossed 100 billion +deposit base.
10. 2023 Won BPA 4 times in a row.

MNBBL was among the first banks in Nepal to recognize the potential of customers in
rural areas, leading to the establishment of its Inclusive Banking (IB) Department. This
department, evolving from its initial microfinance program, now contributes over 36% of
the bank's total loan portfolio. The bank has expanded its ecosystem through subsidiaries
like Muktinath Capital Limited, a pioneer investment and merchant bank established in
2010, and Muktinath Krishi Company Limited, founded in 2018 to support
agricultural development. MNBBL's philosophy emphasizes bringing banking services
directly to the people, especially in underserved areas, reflecting its commitment to
financial inclusion and community development. This bank received international
recognition in 2020 AD when we are awarded the esteemed European microfinance award
2020 for our dedicated commitment to accomplising goal of financial inclusion and
financial accessibility for rural communities. This bank is member of Globel Alliance for
banking on values (GABV) and endores of principle for responsible banking (UNEP
finance initiative ), smart campaign and social performance task force( SPTF). This bank
received numerous award and acclaims for our service still date which has actually
humbled our dream for building a socially and ecologically sustainable future. In line with
the border trend in the banking sector, this bank have primary emphasis on six key
dimensions of: Finance, Operations, Technology, organization, Business Model and
Reputation. Ranking our service from deposit acceptance, corporate and retail credit,
project financing, hire purchase financing, the trade financing personal and corporate
banking and various other supplementary service with primary goes to offer a secure and
convenient means for individuals and business to oversee access their funds, facilitating
their diverse financial equipment.

This bank adhere the tent of good governance and compliance, confirming to both
regulatory requirements and industry best practice. In a dedication to transparency and
inclusive governance, this bank openly communicate all significant decision ,thereby
preserving transparency and promoting the standards of effective corporate governance.

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1.6. Stakeholders Structure

1. Shareholders &investors
a) Interest
• corporate
• Governance
• Risk management
• Financial performance
• Brand reputation and image
• Asset Quality
b) Influence
High as shareholder and investor play a vital role in the success of our bank, providing
essential capital and Financial stability. Their investments enable our bank to fund
operations, expands service and possible growth opportunities.
c) Engagement
• Annual/ Special General meetings
• Annual Report
• Financial Results and Disclosure
• Website

2. Customer
a) Interest
• Reliable Banking Services
• Data Security
• Customer satisfaction
• Relationship management
• Transparency and fair disclosure
b) Influence
High , Satisfied customer build lasting relationship, trust and referrals ensuring our
prosperity in a competitive market thus drives the revenue.
c) Engagement
• Customer feedback
• Surveys
• Personalized service
• Grievances redressal

3) Employee

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 a) Interest

• Employee well-being
• Fair compensation
• Employee development
• Career opportunities
• Talent and retention
• Reward & recognition
• Diversity & inclusion

b) Influence

High, as their diverse skills and acknowledge drive efficient operations,

customer service, and sustained growth. Empowered employee are our cornerstone, enabling us to
excel in a competitive landscape’s while upholding the highest standards of integrity and
professionalism.

d)Engagement

• Performance appraisal
• Training programs
• Staff meets
• Email
• Muktinath Darpan

4) Government & Regulators

a) Interest

• Compliance with regulation

• Transparency and fair disclosure
• Risk management
• Protection of the depositors interest
• Timely payment of taxes and duties

b) Influence

High, As through oversight and enforcing regulation they promote sound governance
risk management, and the consumer protection, safeguarding the economy overall health and
fostering public trust in the banking system.

c)Engagement

• Regulatory reporting
• Onsite supervision

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 • Website
• Press release
• offsite supervision

5) Community & Society

a) interest

• Green financing
• Sustainable banking
• financial literacy
• Employment generation
• Social and Environmental impact
b) Influence
High as the community and society from the very foundation of our business operation

C) Engagement

• CSR project
• Financial literacy program
• Community outreach

1.7. Organization Mission and Vision

1.7.1 Vision
- Be the most preferred robust bank in Nepal uplifting Socio- economic status of people.

1.7.2. Mission

- Become a leading financially viable, socially acceptable, regulatory compliant, environment

inclusive financial service provider for all the stakeholders well-being.

1.7.3 Values
-Goal focused

-Result oriented

-Well-being

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1.8. Correspondent Network

Muktinath Bikas Bank Limited (MNBBL) has established a robust correspondent network to
facilitate both domestic and international banking services. This network is integral to its
operations, particularly in areas such as remittances, foreign exchange, and cross-border
transactions.

International Correspondent Banking

Muktinath Bikas Bank adheres to international banking standards, as evidenced by its compliance
with the Wolfsberg Correspondent Banking Principles. This commitment ensures that the bank
maintains rigorous anti-money laundering (AML) and counter-terrorism financing (CTF)
protocols, fostering secure and transparent international transactions.

Remittance and Payment Partnerships

To enhance its remittance services, Muktinath Bikas Bank has partnered with various financial
institutions and remittance agents across Nepal. This extensive network ensures that customers
can send and receive funds conveniently throughout the country. .

In a move to modernize its payment systems, the bank collaborated with Nepal Clearing House
Limited to enable international payments through Alipay Plus on its Nepal Pay QR platform. This
initiative allows tourists from countries like China, Singapore, and Malaysia to make digital
payments in Nepal, enhancing the country's appeal as a travel destination.

Domestic Branch and Agent Network

Domestically, Muktinath Bikas Bank boasts a wide-reaching network of branches and agents.
With over 179 branch outlets, the bank ensures accessibility to banking services across various
regions of Nepal. Additionally, its partnerships with local financial institutions and agents amplify
its reach, providing customers with numerous points of service.

Including these points will provide a comprehensive overview of Muktinath Bikas Bank's
correspondent network and its significance in the bank's operations.

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1.9. Product and Services
Muktinath Bikas Bank Limited is committed for good corporate governance practices and banking
activities with prudent banking culture. It has been offering various products and services for its
customer with competitive rate in market. It has been able to provide diversified service backed
by the latest technology. The bank aims to succeed and reach higher grounds by
maintaining and adhering to its corporate values, by providing various product and services.

1.9.1. Major Product

MNBBL has never backed in providing the best products and services to meet the requirements of
its customers be that the existing ones or potential customers .The major products and services
provided by MNBBL are as follows:

1) Saving Account
Saving account is interest bearing account. Muktinath Bikas Bank accepts
deposit on saving account. Saving accounts can be opened by individuals,
guardian (on behalf of minor). Banks provides interest on these accounts with a view to
encourage saving habits.

2) Muktinath Premium Bachat

It is a savings account offered by Muktinath Bikas Bank, designed to provide convenient
banking services with a low minimum balance requirement. Key Features
Minimum Balance Requirement: NRs. 1,000
Interest Rate: 3.00% per annum, credited quarterly

3) Muktinath Sarvot krishta Bachat Khata:

A premium savings account providing facilities like a VISA debit card, free mobile banking
for the first year, internet banking, and a free cheque book. Requires a minimum balance
of Rs. 10,000.

4) Sunaulo Bal Bachat Khata:

-Designed for children to encourage early saving habits. Key Features
Zero Minimum Balance: This account can be opened without any initial deposit, making it
accessible for all. Attractive Interest Rate: Earns an annual interest rate of 3.00%, credited
quarterly.
Free Banking Services:
Access to banking services from any branch.
Free cheque book issuance

5) Muktinath Ashirwad Bachat Khata (GOLD):

-A premium account offering enhanced benefits. Key Features are :

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 Minimum Balance Requirement: NRs. 50,000
Interest Rate: 5.00% per annum, credited quarterly
Free Services:
Any branch banking service
Cheque book issuance
Locker facility without deposit charge
Digital Banking Facilities:
Free VISA Debit Card for the first year
Free Mobile Banking for the first year
Free Internet Banking for the first year

6) Muktinath Sambriddhi Bachat Khata:

- A savings account aimed at promoting financial prosperity. Key feature are :
Minimum Balance Requirement: NRs. 100
Interest Rate: 3.00% per annum, credited quarterly
Banking Services:
Access to banking services from any branch
Free cheque book issuance
Digital Banking Facilities:
VISA ATM card issuance
Free mobile banking for the first year
Free internet banking for the first year

7. Other Savings Accounts:

Including Muktinath Krishak Bachat Khata, Pocket Money Bachat Khata, Mahila Pewa
Bachat Khata, Sharedhani Bachat Khata, Karmachari Bachat, and Sajilo Bachat Khata,
each tailored to specific customer segments.

6. Fixed Deposit Products:

Offering various tenures with competitive interest rates, including options like the
Muktinath Remittance, Fixed Deposit and Recurring Deposit. Fixed deposits is
investment instruments offered by banks and non-banking financial companies, where we
can deposit money for a higher rate of interest than savings accounts. We can deposit a
lump sum of money for a specific period, which varies for every financier. Muktinath Bank
has different types of term and interest rates on a fixed account. Muktinath Bank offers
following fixed deposit account
a) Individual Fixed Deposit Account
b) Institutional Fixed Deposit Account

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Table no: 1 Types of Fixed Deposit Account
Month Interest rate Interest payment Minimum deposit

Individual
fixed deposit
product
3 month 3.75 % Quarterly NPR 5000
6 month 4.00% Quarterly NPR 5000
9 to below1 4.25% Quarterly NPR 5000
year
1 year to 2year 4.5 % Quarterly NPR 5000
Above 2 year to 6.50% Quarterly NPR 5000
10 years
Institutional
fixed deposit
6 month 3.00 % Quarterly Negotiable
9month to 3.25% Quarterly
below 1 years
1 to 2 years 3.50% Quarterly
Above 2 years 5.50% Quarterly
to 10 years
Remittance
Fixed Deposit
Up to 2 years 1% over the Quarterly NPR 5000
standard rate ,
depending on
the tender
Recuring
Deposit
Up to 5 years 6.50 % Quarterly NRP5000
Akshaya Kosh

With flexible Based on Monthly or NPR 5000

term agreement Quarterly

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1.9.2. Loan product

MNBBL has developed loan products to meet financial demand of borrowers. Bank provides group
based (Collateral Free) and collateral based (Individual) loans to needy clients. Following are the
current loan products offered under microfinance program of the bank: inclusive banking , General
banking loan. This is basic loan for MNBBL microfinance clients. This loan is provided for
income generating activities only.

A) Inclusive Banking (Microfinance)

1. General Loan:
- Collateral-free loans up to NRs. 700,000 for income-generating activities.
2.Goodwill Member Loan:

- For clients with a good repayment history, offering additional loan amounts to expand existing
businesses.

3. Improving Agriculture Loan:

- Supports climate-resilient agricultural practices with loans up to NRs. 200,000.

4. Energy Loan:

-Finances renewable energy solutions like solar systems and biogas installations, with loans up
to NRs. 300,000.

5. Emergency Loan:

Quick access to funds up to NRs. 20,000 for unforeseen expenses.

B) General Banking Loans

1. Housing Loan:

- Up to NRs. 20 million for purchasing, constructing, or renovating residential properties.

2. Personal Loan:

- For personal financial needs, available as term loans or overdrafts.

3.Auto Loan:

Financing up to 50% of the vehicle's value for purchasing new or used private vehicles, with a
tenure of up to 7 years.

3. Business/Industrial Loan:

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 -Financial assistance for legally registered businesses and industries to meet operational needs.

5. Agriculture Loan:

-Supports farmers engaged in cultivation, livestock, and agricultural trading activities.

6. Hire Purchase Loan:

- For purchasing or refinancing commercial vehicles and heavy equipment used in transportation
and business operations.

7. Real Estate Loan:

-Caters to individuals and developers for constructing commercial buildings, shopping complexes,
or trading land and buildings.

1.9.3. Major Services

The major services of MNBBL are as follows:

1.Remittance

- Remittance is the process of transferring fund from one place to any corner ofthe world.
Muktinath Bikas Bank's remittance acts as a bridge between the remitter and beneficiary providing
the geographical coverage.

2.ATM

- ATM Card is an electronic card which is used to withdraw cash via Automated Teller Machine
at any time. To serve its customer with new technology bank has developed this card which reduce
the need to move to bank for withdrawing cash or checking balance. The Muktinath Visa Debit
card issued in collaboration with a principal member of Visa International bearing Visa brand mark
which can be used at a merchant location for services through Point of Sales terminals and ATM
terminals bearing Visa logo to withdraw cash.

Procedure for providing ATM Card

a) The account holders fill up ATM card form or application form with authorized signature.
b) Muktinath bank office level staff must verify application and signature.
c) If customer is new ATM card holder, than they received new ATM card after one week.
d) If customer is old ATM card holder (expired, lost, theft), their card ordered to head office.
So, cardholder received after few days. When Card is provided to holder, card number is
written in ATM form, holder sign in ATM application and ATM card register.
e) At last officer level staff must be approved of card provided to account holder.

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3. Internet Banking
- Internet banking enables a customer to do banking transactions through the bank's online
portal. This is known as net banking or direct banking. The internet has dramatically
changed the cost and capabilities of the marketing and distribution of new type of products
and services. Muktinath Bikas Bank Limited's customers will be able to conduct
various informational and financial transaction through the bank's direct banking.
This service currently includes the following features
a. Account Information
b. Account Statement
c. History of financial transaction
d. Funds transfer to any account within the bank
e. Merchant payments
f. Utility Bill payments
g. ESewa facilities

4. Mobile Banking

- Muktinath Smart Mobile Banking provides convenient mechanism and quick access to
banking services for Muktinath Bank customers from their mobile devices. The popular
services are balance inquiries, recent transaction details, e-recharges and bill payment to
utilities like Ncell postpaid, and so on . The service currently includes the following
features:

a. Mini Statement view

b. Banking Services without Internet

c Payment to different Merchant outlets using QR code

d. Personalized QR Code

e. Electricity, Airline, Internet, Water Bill Payment

5.Muktinath Faida App:

- A mobile banking application offering convenient access to banking services.

6. VISA Debit Card:

- Accepted at numerous ATMs and POS terminals for easy transactions.

7. E-Commerce Card:

-Facilitates secure online purchases.

8. QR Merchant Payment:
- Enables quick and contactless payments through QR codes.
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 1.10. Branch Network

Muktinath Bikas Bank has established a comprehensive branch network across Nepal,
encompassing modern banking branches, small and micro banking desks, and extension
counters. This extensive presence supports the bank's mission to provide inclusive
financial services throughout the country.

Branch Network Overview

Modern Banking Branches: These are full-service branches offering a wide range of
banking services. For instance, the Ilam Branch is located at Ilam Municipality-7,
Nikunjapath, Ilam, and can be contacted at 027-524023 or via email at
[email protected].

Small and Micro Banking Desks: These desks focus on providing financial services to
underserved communities, promoting financial inclusion. Examples include the Jhalari
Small and Micro Banking Desk in Shuklaphanta, Municipality-10, Jhalari, Kanchanpur,
contactable at 099-540176/540271 or [email protected], and the Lamki
Small and Micro Banking Desk in Lamki Chuha Municipality-1, Lamki Chowk, Kailali.

Extension Counters: These are smaller units that extend the bank's reach, providing
essential banking services in areas where establishing a full branch may not be feasible.

🗺 Accessing Branch Information

The bank's website offers both list and map views of its branches, allowing users to filter
branches by category (e.g., Inside Valley, Outside Valley) and search for branches near
specific locations.

Additional Resources

ATM Locations: Information about ATM locations can be found here:

Remittance Agents: Details about remittance agents associated with the bank are available
here:

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