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CHAPTER I
INTRODUCTION

1.1 Background of the Study:


Among the different institutions that exist in the global market places, the financial
institutions are one of the major institutions. Financial institutions are the
institutions, which conduct the financial activities. Defining in simple words, the
financial institutions are the financial intermediaries that collect the funds from the
surplus unit of the economy and channel it to the deficit units. The surplus units are
the individuals and corporations who have excess saving funds, and the deficit units
are the individuals and the corporations who need but lack the funds. The financial
institutions are the mediators linking the surplus and deficit units. One of the
categories of the financial institutions is the commercial bank.

Banks are among the most important financial institutions in the economy. They are
the principle source of credit (loan-able funds) for, and utilization of the funds of
millions of individuals, corporations and governments. Worldwide banks grant more
installment loans to consumers than any other financial institutions. Bank is defined
financial intermediary accepting deposit and granting loan, offers the widest menu
of services of any financial institutions. The history of the banks started from
Greece. Bank of Venish was established in 1157 A.D as the first bank in the world.
In the context of Nepal, although different activities related to banking used to be
conducted even in the ancient age, the history of modern bank started with the
establishment of Nepal Bank Limited in 1994 BS as the first bank in Nepal. Nepal
Rastra Bank was established in 2012 BS, as the central bank of Nepal. Rastriya
Banijya Bank was established in 2022 BS. Until 2041 BS there were only three
banks in Nepal, all state owned. With the liberalization policy of Nepal government,
private and joint venture banks started to be established in Nepal. Massive changes
and developments have taken place during the past two decades in the financial
sector. Amidst all these changes, for economic growth and development of New
Nepal, Liberalization, Privatization and Globalization in this sector has given birth
to the largest commercial bank, “Everest Bank Ltd”.
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1.2 Objectives of the study:


The general objective of the study is to fulfill the requirements for the degree of
Master of Business Administration. The major objective of this study is to make
BBA student relevant to the real world situation Beside this, the specific objectives
are as follows:
• To get practical insight about the banking activities.
• To get the knowledge about Everest Bank Limited and its daily workings in
a practical scenario.
• To identify the various activities done under customer service department.
• To know the procedures of cash deposit and cash payment.
• To appraise the deposit collection and lending.
• To serve the various customers visiting the bank.
• To develop the managerial skills to face the real world situation and
problems.
• To know the different products and services of Everest Bank Limited.

1.3 Objectives of Everest Bank Limited:


• To know how different departments of a Everest Bank Limited conduct their
respective duties and responsibilities in an organized way.
• To make the analysis of EverestBank Limited and its performance.
• To facilitate the reliable, prompt & high standard of banking service
adopting the lasted version banking technology in compliance with the need
and demand of the market.
• To develop lifelong relationship with clients and achieve profitability
through customer oriented service and customer satisfaction.
• To widespread its branch network in different part of the countries covering
at least one branch on all development regions facilitating large number of
clients as possible.
• To provide financial help to the General Public.
• To encourage industries by providing necessary capitals.
• To provide safe deposit to the customers.
• To provide various kind of credit facilities such as home loan, education loan
etc.
• To encourage general public to make saving.
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• To remit funds for their customer through bank draft to any place.

1.4 Methods of Data Collection


This section generally represents the research methodology adapted to carryout the
internship report. The internship report work is basically a type of field work. It is
overall an abstract of our learning during the field visit
I. Sources of data collection
The following sources have been used to collect the necessary data.
a. Primary Source of Data
The required information was collected through the discussion and
information provided by the officials of EBL.
b. Secondary Source of Data
The secondary data was collected from the secondary sources like:
annual report, Broucher, official website & other publication.

II. Data Collection Techniques


Most of the data are collected from the secondary sources. Some of the data are
collected through the discussion with the office staff regarding any direct
observation of the operational tasks. Moreover practical approaches have been
applied in collecting the necessary data.

III. Data Analysis Tools:


The presentation and analysis of the collected and managed data has been
analyzed and interpreted through analytical approaches. The direct
understandings are presented with prior discussion and suggestion from the
operational staffs. The overall presentation and analysis is in descriptive form,
no any financial and statistical tools of analysis are used.

1.5 Significance of the study


Every Study comprises of both merits as well as demerits. This study plays an
inevitable role in getting important knowledge in the field of business and
management to the students of management. This study provides valuable
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insights in facing the real world situation and the crucial role of banking sectors
in the overall economic development of the nation. However, major importance
of the study are:
1. Helps to gain practical knowledge about the entire banking activities.
2. Helps to make an analysis about the performance of banking activities.
3. Provides knowledge of the products and services of banks.
4. Important for further study and research activities.

1.6 Limitations of the study:


• Though the bank has many branches both inside and outside the valley, only
the Everest bank of pokhara branch was in existence during internship and
only the information regarding this branch is included in the report.
• Only the departments where I was placed for long time period are given
more focus in comparison to other departments.
• Rates and charges vary time and again. The rates included here were
applicable during the internship period.
• The financial performance of the bank is not analyzed in detail because of
unsuitability of the data for analysis.
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CHAPTER II
ORGANIZATIONAL ANALYSIS

2.1 Background of the organization:

Everest Bank Limited (EBL) was registered in November 17,1992 and came into
operation in October 1994 with a view and objectives of extending professionalized
and efficient banking services to various segments of the society. The bank had an
initial paid up capital of Rs 3 crore. Today the bank has grown to become one of the
leading banks in Nepal. The bank is providing customer friendly services through a
network of 36 branches across the nation.

EBL is the joint venture bank with Punjab National Bank (PNB), India in 1997 and
turned into a highly profitable bank. PNB provides top management support under
the technical service Agreement .PNB, our joint venture partner one of the largest
nationalized bank in India having 114 years of banking history, holds 20% equity.
PNB is a technology driven bank serving over 35 billion customers through a
network of over 4500 branches spread all over the country with a total business of
around INR 2178.74 billion. 50% of the shares are owned by the local promoters,
20% by our joint venture partner Punjab National Bank, India and 30% of the shares
are owned by the general public.

Everest Bank Limited (EBL) is a national level commercial bank promoted by


highly prominent business personalities/ groups and reputed individuals of the
country who have excelled in their field of business/profession with very good
integrity and social standings.

EBL was one of the first banks to introduce Any Branch Banking System (ABBS) in
Nepal. EBL has introduce “Bank of Wheel” system, whereby the bank is installed in
a vehicle and moves around to various places to serve the segment deprived of
proper banking facilities through its Birtamod Branch. EBL is the only bank having
representative office in a foreign soil. The office facilities remittance and Nepalese
working in India can even open accounts through the office.
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EBL has strived to establish itself as a strong brand that creates an image of a local
bank that is easy to access and reliable. The bank has been conferred with “Bank of
the Year 2006, Nepal” by the banker, a publication of financial times, London. The
bank was bestowed with the “NICCI Excellence award” by Nepal India chamber of
commerce for its spectacular performance under finance sector.
EBL in association with Smart Choice Technology (SCT) is providing ATM service
to its customers through more than 74 ATMs and over 850 Point of Sales across the
country. ATM sharing arrangement with Punjab National Bank has facilitated usage
of EBL Debit Card at more than 1000 PNB ATM outlets across the India at a
nominal rate. Similarly, Indian tourists and businessmen having PNB cards will be
able to use EBL ATM, while in Nepal. Everest Bank Ltd. has decided to give 30%
bonus share and 20% cash dividend to its share holders. The BOD meeting held on
3rd September 2008 decided on the matter. The bank earned Rs. 450.123 million net
profit in the fiscal year 2064/65 which is 52% more than the previous year. Everest
Bank Limited started its operations in 1994 with a view and objective of extending
professionalized and efficient banking services to various segments of the society.

2.2 Mission and vision of the organization:

Mission
The mission of EBL is to provide excellent professional services & improve its
position as a leader in the field of financial related services. It also builds &
maintains a team motivated & committed workforce with high work ethos. It use
latest technology aided at customer satisfaction & act as an effective catalyst for
socio-economic developments.

Vision

Evolve & position the bank as a progressive, cost effective & customer friendly
institution providing comprehensive financial and related services; Integrating
frontiers of technology & servicing various segments of society; Committed to
excellence in serving the public & also excelling in corporate values.
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The main branch of the bank is situated in Lazimpat in Katmandu. Furthermore the
bank has branches in Teku, Pulchowk, Balaju, Lazimpat, Itahari, Biratnagar,
Pokhara, Janakpur, and Birgunj amongst several other places/cities. Everest Bank is
first private commercial bank having largest network.

Branch Network of EBL

1. Lazimpat (Main Branch) 20. Bhairahawa Branch


2. New Baneshwor Branch 21. Nepalgunj Branch
3. New Road Branch 22. Dhangadhi Branch
4. Teku Branch 23. Gwarko Branch
5. Pulchowk Branch 24. Lekhnath Branch
6. Balaju Branch 25. Narayangarh Branch
7. Chabahil Branch 26. Bhaktapur Branch
8. Satungal Branch 27. Besisahar Branch
9. Birtamod Branch 28. Golfutar Branch
10. Biratnagar Branch 29. Kirtipur Branch
11. Duhabi Branch 30. Kushma Branch
12. Itahari Branch 31. Surkhet Branch
13. Janakpur Branch 32. Thamel Branch
14. Birgunj Branch 33. Maitidevi Branch
15. ICD (Dry port) Branch 34. Lagankhel Branch
16. Simara Branch 35. Tatopani Branch
17. Pokhara Branch 36. Tulsipur Branchs
18. Baglung Branch
19. Butwal Branch
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2.3Organizational Structure and its analysis

Regional Manager

Branch Manager

Operation
Credit Department
Department

Teller/
Cash
Letter of Clearing Customer
Retailer ghghdee
Credit Service Service
mckvmvd
epartment

Messenger Security Driver


Guard

Fig 1: Organizational Structure of Everest Bank Limited, Pokhara

The organizational structure of Everest Bank Limited is flat and horizontal. There are
all together 17 employee working in different department. It has well planned perfect
departmentation so as to perform several departments' works effectively. Basically
there are two departments in Everest Bank, Pokhara, i.e. credit and operation
department.

2.3.1 Operation Department


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Operational department is one of the important functional departments which consist


of the various activities of customer service department, teller and clearing services.

Customer Service Department (CSD)


Customer service department deals with the following function.
a. Receiving phone call and transfer them to concerned department.
b. Give information about bank’s service.
c. Responding to customers queries.
d. Opening &closing of a\c such as saving a\c, current a\c, fixed a\c etc.
e. Cheque, statement and remittance printing.

Cash Department/ Teller


Cash department is responsible for accepting deposits of different customers & paying
cash to customers. If any losses occur in cash department the staff has to pay the loss
from his\her pocket.

Clearing Services
As being the member of NRB, EBL accepts the cheque of different banks. Until
the cheques are handled to the respective bank, the payment is not made to the
customer. The respective of the bank visits the NRB daily to attend the meeting of
different bank to deal and adjust the transaction that has taken place.

2.3.2 Credit Department


Credit department is to provide service to their customers analyzing new credit
proposal and reviewing exiting loan a\c taking recovery action whenever necessary.
EBL is providing different facilities according to the need of the customers. It is
responsible for approval and disbursement of loans and advances.

2.4 Product/Service of the organization


Smart bank look beyond the attributes of the product and services they provide. By
orchestrating several services and products bank creates brand experiences for
customers. What customers really want that dazzle their senses, touch their hearts, and
stimulate their minds, declare one expert. Product attributes of EBL constitutes of
Various kinds of Deposits like Saving deposit, Fixed deposit,Saving
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premium,Sunaulo Bhabisya,Saugat bachat khata etc.Likewise, EBL offers several


types of loans such as Housing loan,Educational loan,Vehicle loan,Professional
loan,Property plus loan scheme and loan against future lease and rental.Besides
these,EBL renders several services to its stakeholders which enhances its reputation
and public confidence.
2.4.1Customer Service Department (CSD)
Customer Service Department is the most important department in the bank. This
department is also often called as information desk as customers first contacts to this
department for any type of their queries. Therefore, the image and status of any bank
depends upon the effective functioning of this department. Customers are the life
blood of the bank therefore; first priority is to fully satisfy the customers' needs
towards bank. Customer Service Department perform variety of activities such as
dealing with customers, answering their queries, issuing application forms for opening
new accounts and ATM, responding to calls, issuing bank statement and transaction
statement, receiving mail and delivering it to the concerned department etc.

Generally, when the customers enter into a bank, their first interaction goes with the
customer service department, hence the department must be prompt and effective in
satisfying the customers' needs and queries. The personnel employed at this
department should present him/her in such a way that customers feel they are highly
precious and their value immense for the organization which result in building good
relationship. This department is mainly responsible in assisting customers to explore
the services offered by the bank, explaining the process of receiving services and
providing various customers services during and after the purchase of the services.
There are several essential activities carried out through this department, some of
them were practically observed and done during the internship period which are
presented below:

Offering Different Account


EBL offer different account to its customers. Delivering the information about the
different account to the customers is the main functions of this department. There are
different accounts provided by EBL, each of them has their own special features
mentioned below:
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Current Deposit
Current a\c means accounts of amounts deposited in a banks which may be drawn at
any time on demand .Especially business man opens the current accounts which to
make a number of payments everyday. Money from these accounts can be withdrawn
as many time as desired by the depositors. There is no limit on the amount of cheque
in current accounts. The main advantage of current a\c is safe custody of deposit and
other facilities to the a\c holders. Under current a\c the bank collect deposit in the
form of Nepalese currency. Thus accounts are mostly suitable for trading, business
houses, industry, school, colleges etc. The depositors can open the a\c with a
minimum balance of Rs500. Current account is a non-interest bearing account.

Call Deposit
This account has the features of both saving and current account. This is an account in
which any amount can be deposited and withdrawal in a short time. Interest was
provided on mutual agreement in this account. It is short term assets provide by the
bank. EBL offers call a\c to cater to institutions and companies who have the
requirement of collection of funds.

Fixed Deposit
Fixed deposit means an account of amount deposited in a bank for a fixed period of
time. The longer the period, the higher will be the interest rate. Fixed deposit can be
open from 15 days to 60 months.

Unfixed Deposit
The deposit provides the benefit of yield of a term deposit with the flexibility to
withdraw up to 90% of amount at any time .The product is suited to people who want
to park their surpluses in fixed deposit and may require at times.

Saving Premium
The saving premium a\c is a premium account that offers a variety of facilities like
free accidental death insurance of Rs 3 lac, no draft commission up to Rs 1 lac. Once
a month, free debt card and free ABBS. The minimum balance required for Saving
Premium Fund Accounts should be Rs. 1 lac.
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Sunaulo Bhawisya Yojana


To cater to people who have the habit to save in a regular basis and avail the bulk sum
at the end with a high yielding interest rate the bank launched the recurring deposit.
The deposit has become very popular among the middle class families who save for
specific purpose like purchase of items, marriage etc.

Saving Deposit
Saving a\c is a kind of deposit that limits to draw money under certain fixed amount
according to the rule of bank. Saving a\c is an account of amounts deposit in bank for
saving purpose. Saving deposit is also called thrift deposit. Saving a\c offers all
facilities required for normal transactions like deposit, payments with additional
facility of debit card, ABBS. The deposit offers an interest on the amount. The
customer can avail the service from all the 28 branches across the country and
15ATM counters.

Saughat Bachat Khata


Saughat bachat Khata is the composition of saving and fixed deposit. Account is
opened at minimum balance of NPR 5000. The bank would provide the facility of
automatic transfer of balance from saving account to FDR. In case the customer
withdraws the amount from this account then it will be treated as under.

Saral Samriddhi Bachat


Amount should be deposit at least once in a month or more frequently as mutually
agreed (between the bank and the depositor) for a specified period of time. On
maturity you will get the principal amount along with half yearly compounded
interest. The interest will be calculated on daily balance. This deposit scheme is
especially designed to save your hard earned money for a specific purpose like
business expansion, renovation of business premises, children’s education/ marriage
etc.

Cumulative Deposit Scheme


In case you require bulk amount in future to meet your financial needs like children's
higher education, their marriage etc. open an account under Cumulative Deposit
Scheme and earn higher term deposit interest on quarterly compounding basis.
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Interest Rate on Deposits

1. Saving Deposit
Particular Interest rate
Saving Deposit NRS. 3.00 % p.a.
EBL Super Saving with min. balance of NRS 10 Lacs 4.00 % p.a. on daily bal.
Saving Premium 2.75 % p.a.
US Dollar Saving 2.50% p.a.
Table 1: Interest rates on different saving deposits.

2. Fixed Deposit

Particular Interest rate


15 Days to 6 months 5.00 % p.a.

Above 6 months to 1 year 5.50 % p.a.

Above 1 year 5.75 % p.a.

Table 2: Interest rates on different fixed deposits.

3. Saughat Bachat Khata


Particular Interest rate

30 days to 90 days 7.00 % p.a

91 days to 179 days 8.25 % p.a

180 days to 360 days 10.00%


Table 3: Interest rates on Saughat bachat khata

Account Opening
Customer need to open new account to keep deposit in the bank. Opening an account
is entering into a contract with the bank. Only the party capable of contracting
according to law can open an account.
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Procedure of Account Opening


• Customers are welcomed at the receptionist desk and have short briefing about
the requirements and particular customer type of account is chosen.
• Account opening application is filled by the applicant completely. Necessary
document are attached with the application form. The application form and its
details must be verified for further procedures.
• Major information is entered into the systems as well as record files according
to the account types.

Essential documents required for account opening from different customer group:
a. Limited Liability Company/ Social Organization( like school)
• Completed account opening form.
• Board resolution to open and operate the account.
• Certificate of registration/ incorporation.
• Articles of association.
• Income tax certificate (PAN card)
• Evidence of identification of account operator (citizenship/ passport/
driving license/ voter's ID)
• Two recent passport size photographs of account operator(s).

b. Proprietorship/ Partnership Firm


• Completed account opening form.
• Certificate of registration/ incorporation.
• Income tax certificate (PAN card)
• Partnership deed (incase of partnership firm)
• Evidence of identification of account operator (citizenship/ passport/
driving license/ voter's ID)
• Two recent passport size photographs of account operator(s).
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c. Personal
• Completed account opening form.
• Evidence of identification of account operator (citizenship/ passport/
driving license/ voter's ID)
• Two recent passport size photographs of applicant/ account operator.
• An introducer name and designation.

Account Closing
According to the customer demand one's opened account can be closed. For this,
customer needs to fill up the account closing application with the reason. After filling
up the firm customer must pay the charge and maintain minimum account balance as
per the bank's rules and regulation and the remaining amount is refund to the
customers.

Account Closing Procedure


• Receive application form from the customers.
• Verify signature and other documents such as ATM, cheque book and other
services.
• Provide refunded amounts to the customer after deducting the charges
according to the bank's rules and regulations.

Account Statement
As per the request of the customer, the bank has provision of providing account
statement. Account statement is recorded in the statement record book. It must be
collected by the account holders or the specified agent only. The statement is the
complete record of all deposits and withdrawals done by the account holder. There
must be a prior request for the account statement specifying the duration/ period
required, so that complete check and verification can be one before providing the
statement.

Cheque and ATM Card Issuance


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After opening an account, the customer is provided with cheque book and ATM card
as per customer requirement of withdrawing the amount. Cheques and ATM card
most valuable and important assets of the bank, hence the CSD must be careful while
issuing them.

Cheque Issuing Function


• Customer fills the cheque requisition slip (containing no. of cheque required)
and provide to the CS operator.
• CSD operator verify the cheque slip and forward it to the operation head for
further verification and after splitting of cheque numbers, the cheques are
printed.
• Cheque books are recorded both in system as well as cheque record file book
so that it helps maintaining cheque inventory.
• Cheque book is provided to the account holder or their agents by verifying the
proper identifications.

ATM Card Issuing Function


• Receive ATM card form filled by the customer.
• Verify the signature of the form.
• Insert and record the list of the received application in the system's EXCEL
sheet.
• Mail this sheet with complete description regarding the account holders' name
and the account number and due request for ATM cards and pin number to the
Card Department, EBL- Lazimpat Ktm.
• Receive ATM card and pin number from the ATM department.
• Enter the card number and account number of the account holder in the ATM
register.
• Provide the ATM card to the customer after verifying the signature.

Handling Inward and Outward Mails


Banks receive and send various mails to various parts of the country. Mails are very
important for the bank as it is one of the medium of communication. It receives and
sends various important documents through mail. Hence, it is the function of the CS
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department for the proper handling of the mails. When the mails are received from the
courier or through the intranet system, it is entered in inward mails register or saved at
inbox. Entering and saving the mails are forwarded to the concerned department and
person. In case of outward mails, first the mails are checked where it is to be sent and
then it is entered in the outward mail register mentioning the subject for sending mail
and the place to be sent. The mail is dispatched to the respective place through
courier.

Responding to Phone Calls


Responding to phone calls is also one of the activities of CS department. Numerous
phone calls are received by the bank in a day. So, it is the duty of the CS department
to respond to phone calls effectively and promptly. Some calls are done by the
customers to check their balance or for other queries related to their account. All calls
to the operational head and the branch manager are transferred through this
department, so the CS person must be responsible for attending those calls, asking
whereabouts before transferring them to the concerned department and person.

Regular Check-up and Up-Gradation of the System


The EBL has the advanced and new version of "Finnacle" as their system. This
system has the advanced features which enables banking procedures and their
recording more specific and effective. The CS department is also responsible for the
regular check-up and up-gradation of the system, so that no any problems and errors
arise while banking operation.

Remittance
In order to facilities remittance of Nepalese residing in U.A.E, Bahrain, Kuwait,
Qatar, Malaysia and Saudi Arabia, EBL hold special drawing arrangement with
different exchanges houses by which the saving is safely and quickly available to the
families of the remitter.

EBL is playing a pivotal role in facilitating remittance to and from across globe.
Being the first Nepalese bank to open representative office in Delhi, India, the
Nepalese in India can open account in Nepal from the designation branches of PNB
and remit their saving economically through banking channel of Nepal. The bank is
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also offering Cash Management System (CMS) through HDFC bank, India for
managing the finds of corporate exploring to India by collection their fund from about
183 locations in India. The bank’s own web based online remittance product “Everest
Remit” Facilities remittance from London, UAE, Bahrain, Malaysia, Qatar, to more
than 170 pay out location in Nepal. With India remit, the bank has same day
remittance facility with India with association of PNB’s 2200 networked branches,
based draft drawing arrangement with 250 PNB branches across India.

2.4.2 Clearing Services


In today's competitive world, the bank can't sustain until it provides the better service
facility to its valued customers. Considering these things, Nepal Rastra Bank, the
Central Bank of Nepal, established the clearing house (Samosodhan Griha) facility to
strengthen the relationship between the various financial institutions and provide the
better service facility to their customers.

Types of Clearing
Inward Clearing
The cheques of one bank which are deposited into other bank are the inward for that
bank. For example: if the EBL's cheque is deposited into the Nabil Bank, then it
becomes the inward for the EBL. Such cheques are collected from the representatives
of those banks collecting the EBL's cheques in the clearing house. Then these cheques
are brought in the bank and necessary adjustment and transactions are maintained on
the account of the respective accountholder/ cheque bearer and also on the bank's
transaction's accounts. Such inward cheques are debited.

Outward Clearing
The cheques of one bank which are collected in another bank are the outward for that
collecting bank. For example: if the cheque of Nabil Bank is deposited in the EBL,
than it becomes the outward for the EBL. Such cheques are presented to the
representatives of the respective banks after having necessary adjustments and
transaction maintenance on the bank's accounts. Such cheques are credited.

2.4.3 Credit Department


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This department is one of the major departments of every bank. This department has
the major function of mobilizing the funds that is created by the deposits through
lending it in different sectors. This department provides credit/ loan to the customers,
after looking and analyzing at various necessary documents concerned with the loan
demander such as: collaterals for the security purpose, financial background, legal
documents etc to know the customers feasibility. This department sets various interest
rates according to the types of loans provided as per the policy formulated for credit
creation. The main functions of credit department were described below:

Offering Different Loan


EBL offer different types of loan to its customers. Delivering the information about
various type of loan and providing the loan to the customers is the main functions of
this department. There are different loans provided by EBL, each of them has their
own special features mentioned below:

Housing Loan
EBL is the pioneer bank to introduce housing loan in Nepalese commercial bank. In
order to meet the needs o f home seekers, EBL offers direct housing finance for
individual for individuals for construction /acquisition /purchase of house/flat allotted
by the private builders or development authorities and also for carrying out
repairs/renovation/addition/alteration to the house/flat. Generally there is no
prepayment if the loan amount is paid through income source of the borrower. There
is no hidden cost in the product and offering competitive interest rate with long
repayment period.

Vehicle Loan
The product offers the borrowers to purchase new car/van/jeep. Generally there is no
prepayment if the loan amount is paid from the own income source of the borrower.
There is no any additional collateral required in this scheme.

Educational loan
EBL pioneered education loan in Nepal. To bring education within the reach of the
people and help the needy students who intend t pursue higher studies in Nepal as
well as abroad, to meet the increasing cost of admission fees/monthly
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fees/examination fees/books, etc. Boarding and lodging expenses if student putting up


in recognized boarding house where charges are standardized and can be paid to the
management of boarding house on behalf of boarders. The USP of the product is that
the repayment starts one year after the completion of the study or one –month after
getting employment whichever is earlier. Thus the student can repay their own loan
amount rather than depend on their parents.

Professional loan
EBL pioneered the professional loan. Professional or self employed persons registered
with Nepal government and engaged in respective professions medical practitioners
including dentists, Architect, Engineers, Chartered Account, etc can now set up their
own firms. These product facilities the professional to purchase of equipment used in
the profession undertaken, purchase of furniture, furnishing of the office premises and
working capital requirement.

Loan against future lease and Rental


This facility has been introduced by EBL for meeting business/personal needs.
Property owners having their properties situated in urban areas
(Kathmandu/Pokhara/Birgunj/Biratnagar) who have let out such properties to
Government/Semi Government and reputed Corporate, Bank, Financial Institutions,
Insurance Companies, Multi National Companies, NGOs/INGOs and Embassy
Officials can avail loans against their rentals.

Property plus Loan Scheme


This scheme has been specially designed keeping in mind the property owners of
large commercial/residential buildings. As a measure to improve liquidity and
enhance prospects for better use of money for our customers, we are providing loans
against future lease rentals under this unique scheme.

Loans against shares


This loan is providing to individual/firms/companies for advance against primary
security of physical shares or shares in dematerialized form. EBL may provide
demand loan or overdraft facility against the physical shares.
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2.5 S.W.O.T. Analysis of EBL


Business environment is dynamic.Various internal and external forces of environment
change over time. Due to those changes, an organization confronts with various
strengths, weakness, threats and opportunity. These changes affect the ability of the
firm to perform its operations effectively to achieve it goals. Such as exercise of
identifying the organizational strengths& weakness &, threats and opportunity is
termed SWOT analysis. Analysis of internal environment refers to identifying
strengths& weakness of organization. During the analysis of internal environment,
financial analysis and performance analysis of various functional areas are conducted
strengths& weakness of individual functional as well as overall are found out.

Strengths
Strengths are an inherent capacity which organization can use to gain strategic
advantage over its competitors. Also we can say that strength means anything that
is favorable towards the organization. A firm’s strength is skills, resources,
capabilities and other advantages the firms possesses relative to its competitors.
Strengths include managerial skills, effective technology; well know brand names,
surplus cash, a good public image, strong market shares etc. The following are
strength of EBL.
• Promoted by reputed personalities of the nation.
• Representation of different sectors in the board of Director.
• Service excellence to please the customers.
• Bright, honest, helpful and pleasant human resources, recruited through open
competition.
• Products and services tailored as per the need of different groups of customers.
• Good performance during short period of operation.
• Good organizational culture of the bank is also a part of its strength. Informal
communication channel and the friendly working environment are the strengths
of the bank.
• Fully computerized along with the use of latest technologies.
• Extended its service to its 36 branches.
• 365 days banking services to its branch.
• Facilities of SMS banking & internet banking.
22

Weakness
Weakness is an inherent limitation that create strategic disadvantage for a business
organization in relation to its competitors. Weakness reflects deficiencies or
shortcoming in skills, resources, capabilities and other advantages that firms
possess relative to its competitors. Weakness includes poor distribution network,
poor financial position, lack of skilled managers, lack of advance technology, lack
of publicity etc. The following are Weakness of EBL:
• Less coverage of the bank. The bank has not opened more branches in remote
areas of the country.
• Less advertisement and publicity about the Bank and its products and services.
• Lack of sufficient ATMs in and outside valley.
• The increase of branches increase the operation cost, administration expenses
etc.
• EBL has limited branches throughout the country, especially outside the
Kathmandu valley .Therefore bank has not been able to cover wide mass of
public.

Opportunity
Opportunity is a major favorable condition in the organization environment. It
enables a business to consolidate its position. The external environmental analysis
may reveal certain new opportunities for profit and growth. The following are
Opportunity of EBL:
• Since Nepal government has allowed the Nepalese firms to invest in foreign
nations. It helps the bank to achieve its vision of being leading bank known for
its service excellence in the region.
• NEPSE has adopted the automated trading system replacing the traditional
open cry out system. This attracts more investors to make more transactions of
the shares of the banks and the market price of the share can increase even
more.
• Nepal government has issued the Electronic Transactions Act 2063. This
authorized the electronic transactions and the digital signature it encouraged
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the bank to use more electronic technologies to make the transactions. It saves
the time as well as the cost.
• The village and the remote area are not covered by the existing banking
services. So it can expand its braches to the areas such as mid western and far
western. It helps the bank to increase the market size as well as the market
share.
• The bank can invest in the long term projects such as hydropower so that it
can utilize its excess funds and get good return.
• Introduce more flexible deposit scheme for all levels of customers.
• Identify new areas for investment.
• Introduce innovative products, scheme and programs.
• Extend the facility of internet banking through all the branches.

Threats
Threats are a major unfavorable situation in the organizations environment .It
creates risk or damage a business firms. Threats include entry of new competitors,
change in technology, change government regulation etc. The following are
Threats of EBL:
• Deposit crisis in the market. The banks and financial institutions are badly
affected by the lack of deposit.
• One of the main challenges for the bank is the foreign banks. As per the WTO
agreement, after 2010 AD the foreign banks may enter with sophisticated
technologies and huge capital. In that situation the bank should face intense
competition from the foreign banks.
• Within the domestic market the commercial banks are mushrooming. The
trend of coming new banks in existence is increasing. So the competition in
the financial market is being intense.
• The remote areas where there is potential for the banks, lack the infrastructure.
Lack of transportation, communication and electricity creates problems for the
smooth operation of the bank. Likewise there is the problem of security.
• The government rules and regulations regarding the banking sectors change
frequently. The frequent change in the rules and regulations negatively affects
the smooth operation of the bank thereby creating uncertainty.
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CHAPTER III
SUMMARY AND CONCLUSION

This chapter contains short summary, conclusions & recommendation about this
intern report. This report examines the overall function of the bank. For the purpose
of the data collection secondary data was collected from bank’s annual report,
brochures, journals, publication and websites

Everest Bank Limited is one of the prominent and successful banks of Nepal and
which has been rendering its service to people in different parts of the country by
mobilizing the financial resources. Most of the people are interested to deal with this
bank because of the facilities provided to the customers as well as trustworthiness. All
the customers are treated with utmost good faith.

EBL is a national level commercial bank promoted by highly prominent business


personalities and reputed individuals of the country who have excellent in their field
of business with very good integrity and social standings.

The EBL has adopted advanced and new version of "Finnacle" as their system. This
system has the advanced features which enables banking procedures and their
recording more specific and effective.

With a shared vision of "The Bank you can bank upon", Everest Bank Team is
committed to providing the quality products and services to its valued customers with
utmost courtesy and care. It has 36 branches allover in Nepal. The organizational
25

structure of Everest Bank Limited is flat and horizontal. Basically there are two
departments in it, Pokhara i.e. credit and operation department. Each of these
departments has their own function and duties. EBL offer different account to its
customers with different interest rate and minimum balance. The various types of
accounts are current account, saving account, fixed deposit, call account and new
saving a/c “Saugat Bachat Khata” etc. This report was designed to provide
information on various aspects of saving and lending from the points of view of
customers and to study the saving deposits and lending offered by the bank.

The EBL has adopted advanced and new version of "Finnacle" as their system. This
system has the advanced features which enables banking procedures and their
recording more specific and effective.

The customer inflow in EBL is increasing progress fully both customer deposit and
customer withdrawn .The daily average customer inflow for opening new a\c is 15-20.
The bank accepts deposit from public giving attractive interest rate. The total deposit
of EBL is increasing.

EBL has been able to tap the opportunity of collecting deposits of people working
abroad countries. EBL is playing a pivotal role in facilitating remittance to and from
across globe. Being the first Nepalese bank to open a representative office in Delhi,
India, the Nepalese in India can open account in Nepal from the designated branches
of Punjab National Bank and remit their saving economically through banking
channels to Nepal. The bank has a Drafts Drawing Arrangement with 175 branches of
PNB all over India. This is increasing the remittance inflow. This is a good sign for
EBL.

I come to a conclusion that EBL is the bank with effective management, well-trained
and experienced office personnel established for the development of the nation as a
whole with some physical condition and effective and well managed availability of
necessary materials needed for office. It is the service oriented business where
different jobs and activities of an organization are carried to achieve the
organizational targets.
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CHAPTER IV
RECOMMENDATION

EBL with modern technology and experience staff within a short period of its
operation about to provide satisfaction to their client to achieve more goal, it should
adopt more new technology considering their client facilities based on the findings
and conclusion draw from study following recommendation has to be made towards
EBL.

• Recently bank provides Travelers cheque in USD and EURO and Draft in
USD and Indian Currencies; the remittance business can be increased if bank
provide these services in other currencies also.
• Bank should be carried out appropriate interest rate in order to attract more
saving from general public.
• Bank should try to reduce customer complain about ATM problem and
banking etc.
• Bank should make feasibility study whether it is suitable / possible to
provide student loan against their certificates.
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BIBLIOGRAPHY/REFERENCES
www.everestbankltd.com
Everest Bank Limited, Annual Report (066/067).
Everest Bank Limited, Broucher, Pokhara Branch.
Pandey, I.M. Financial Management. New Delhi:Vikas Publishing House Pvt.Ltd.