Internship Report on “MEGA BANK NEPAL LTD”

Narayangrah Branch

Submitted By:

Dikshya Dhakal

Symbol No- 17031726

PU Registration No- 2016-2-03-1355

An Internship report submitted to the Pokhara University in the partial

fulfillment of the requirement for the degree of

Bachelors of Business Administration

Boston International College

Affiliated to Pokhara University

Bharatpur, Chitwan

2020
 DECLARATION

I hereby declare that the work reported in this project work on “Mega Bank Limited” submitted to
Boston International College, Pokhara University is my original work done in the form of partial
requirement for the degree of Bachelor of Business Administration (BBA). Further I would like to
declare that the report prepared by me is only for the academic purpose. The contents included by
me are taken from the observations, secondary data, and internet sources.

…………
………………
Dikshya Dhakal

2020

ii
 ACKNOWLEDGEMENT

I am Dikshya Dhakal, currently studying BBA degree at Boston International College affiliated
to Pokhara University. As per my curricular requirement I did intership at the Narayangarh-II
branch of Mega bank Nepal Limited. This internship has been developed in order to fulfill the
partial requirement of Pokhara University for the completion of BBA Degree. This is my great
pleasure to present the internship report to learn banking activities in the Mega Bank Nepal
Limited. This internship program helps me to know about the practical exposure of various
departments of banking system. This project is dedicated to all the people who have helped
directly or indirectly to complete this project.

Firstly, I would like to thank Boston International College for providing me an opportunity to use
the theoretical knowledge in the practical field in course of my internship program of 7th
semester, under Pokhara University. I got an opportunity to be involved in the internship
programme which gave m e the real time exposure to the work environment and bridge the gap
between theoretical learning and practical understanding to some extent.

I am heartily thankful to Manager-Khadga Raj Parajuli for providing me the opportunity to be

an internee in MBNL and gain the practical knowledge of the banking area. Also, I am equally
grateful to the MBNL staffs (Rupa Parajuli, Srijana Gautam, Udaya Poudel, Gita Sharma,
Bikash Karki) for their unlimited support and helpful work environment and for providing me
guidance along for this whole internship period in the operation of different department and to
complete this internship program successfully.

iii
 ABBREVIATIONS

BBA: Bachelors of Business Administration

NRB: Nepal Rastra Bank

ABBS: Any Branch Banking Service

CSD: Customer Service Department

CAD: Credit Administration Department

MBNL: Mega Bank Nepal Limited

IME: International Money Exchange

ATM: Automatic Teller Machine

KYC: Know Your Customer

LC: Letter of Credit

SMS: Short Message Service

CEO: Chief Executive Officer

BOD: Board of Director

PU: Pokhara University

DGM: Deputy General Manager

iv
 Table of Contents
DECLARATION.............................................................................................................................ii
ACKNOWLEDGEMENT..............................................................................................................iii
ABBREVIATIONS........................................................................................................................iv
CHAPTER I - INTRODUCTION..................................................................................................1
1.1 Introduction................................................................................................................................1
1.2 Objectives of the Study..........................................................................................................2
1.3 Overview of the Organization...............................................................................................2
1.3.1 Brief history....................................................................................................................3
1.3.2 Nature of the Organization.............................................................................................3
Vision, Mission, and Values........................................................................................................3
1.3.3 Business volume.............................................................................................................4
1.3.4 Number of employees.....................................................................................................5
1.3.5 Product line.....................................................................................................................6
1.3.6 Competitors.........................................................................................................................9
1.4 Organizational Structure........................................................................................................9
1.4.1 Main Office of MBNL....................................................................................................9
1.4.2 Organizational chart......................................................................................................10
1.4.3 Departments Name.......................................................................................................11
1.4.4 Comment on organizational structure...........................................................................13
1.5 Structure of my Department................................................................................................13
1.5.1 Department Hierarchy..................................................................................................13
1.5.2 Number of Employees in my Department....................................................................13
Chapter II - Internship Program.....................................................................................................14
2. Internship Program:..............................................................................................................14
2.1 Introduction of the Branch...................................................................................................14
2.2 Worked Department.............................................................................................................15
2.3 Description of the task during internship.............................................................................15
CHAPTER III - CRITICAL ANALYSIS......................................................................................17
3.1 Critical Analysis of Theoretical Concepts Relating to Practical Experiences:....................17

v
 3.2 Success & Failure of Different Products:............................................................................18
3.3 Major Competitors of the Organization:..............................................................................18
3.4 Future Prospects of the Organization:.................................................................................19
SWOT Analysis.........................................................................................................................19
Chapter IV - Conclusion and Suggestion......................................................................................21
4.1 Conclusion:..........................................................................................................................21
4.3 Recommendations................................................................................................................21
References:....................................................................................................................................23

vi
 CHAPTER I - INTRODUCTION

1.1 Introduction
We all are well known with the fact that the economic growth and prosperity of any nation
highly rely on the performance of the upcoming human resources. The quality of these human
resources depends upon the knowledge and skills they have obtained from their academic
background.

The internship program has been designed by Pokhara University for the partial fulfillment of
the degree of Bachelor in Business Administration (BBA). As a student of Business
Administration, I have always been attracted to Banking career. The career charm, grace,
handsome incentives and profound professional recognition are some salient features that have
led to Banking as one of the most sought-after professional careers in Nepal. As per the degree
requirement stipulated by Pokhara University, students in Bachelor’s degree program have to
complete Seven weeks of internship. The internship program has been an excellent opportunity
for us to understand and experience banking sector first hand. This approach facilitates students
by allowing them to know the working environment and to tackle various related circumstances
before they actually start to work. Since the students gain essential knowledge and skills during
this period, they can easily learn to adjust in the environment afterwards.
The BBA program is a practical and valuable means of gaining a business qualification that
provides an exposure to the challenges of doing business in a global context. BBA program has a
wide coverage of conceptual inputs and has emphasis on practical applications that familiarized
students with the overall function of organization and their interaction with total environment
which they operate. One of the major features of BBA program is the internship course which
allows the students to imply their theoretical knowledge on the real work place. It provides
practical exposure and helps the students to understand corporate social responsibility, develop
corporate attitude and venture entrepreneurship. It was a great opportunity to work as intern in
MBNL limited. This experience gives me huge opportunity to change my behaviors and helped
me to utilize conceptual knowledge in the specific area of the study. During my internship, I

1
found MBNL’s culture open, friendly and supportive. By providing aspiring graduates with
moreover, it also provides an opportunity to the organization to access fresh graduates for some
time before employing any of them. Thus, internship is career enhancing program which makes
student professional in their fields.

1.2 Objectives of the Study

Every action is directed towards accomplishing certain objectives. Internship program is in itself
a new learning pedagogy, which provides the floor for the practical exposure of theoretical
knowledge. The general objective of the study is to understand the banking organization, its
structure, working procedures and risk associated with it. However, the specific objectives of the
study are:

 To explore the applicability of theoretical knowledge in the practical workplace.

 To gather the knowledge on the various activities performed in various departments of
the bank and be aware of the products and services.
 To develop managerial and communication skills to tackle the real-life situations
 To develop the confidence level, competitiveness, and performance level in order to be
adaptive in the dynamic work environment.

1.3 Overview of the Organization

Bank is a financial institution that accepts deposits from the depositors and provides loan to
those who need the money against security collateral. In other words, a bank connects customers
having capital deficits to customers with capital surpluses. Banks are established under the
authority of the government to accept deposits, pay interest, clear checks, make loans, act as an
intermediary in financial transactions and provide other financial services to its customers. The
primary objective of the bank is to collect the ideal money and invest it in the productive sector.
Mega Bank Nepal Limited (MBNL) is one of the commercial banks of Nepal which falls under
A-Class. Its prime concern is to contribute on socio-economic development of the country
through diversified range of banking products & services. The bank is mainly focused to support
accelerating the development of emerging sectors of the economy focusing on agriculture and

2
hydropower sectors by providing required financial resources as well as technical and
management counselling for establishing, developing, extending and raising the capacity of
those
productive areas so as to help and actively get involve in poverty alleviation.
Bank is the backbone of any country as it helps to stabilize (control inflation) the economy.
Banks in Nepal are operated under “Bank and Financial Institution Act-2063”. According to
BFIs there are four categories of banks. These banks are categorized on the basis of its function
and paid-up capital into four categories i.e. A-class, B-class, C-class and D-class.

1.3.1 Brief history

Mega Bank Nepal Ltd has been in operation in Nepal since 2009. Its main focus is to provide
different services to the customers to be successful in their own respective field. It provides
prompt and excellent services to its customers. It also helps to build the industrial environment in
the country and create the employment. Mega Bank has been able to maintain good position in
the banking industry of the country.

1.3.2 Nature of the Organization

Mega Bank Nepal Limited (MBNL) is an autonomous organization largely owned by
Government of Nepal. It is one of the leading financial institutions that comply with all relevant
legislation, codes of conduct and standards of good corporate citizenship in Nepal while
maintaining full autonomy in the management of its operations. It is basically involved in the
mobilization of local resources to work for local development, serving the rural community and
its aspirations. Further, it provides a full and balanced rage of financial products and services that
satisfies the needs of the rural population of Nepal, on a profitable and sustainable basis.

1.3.3 Business volume

The business volume of MBNL is explained as:

Capital Structure of MBNL

Amount
Authorized capital 11.5 billion

3
 Issued capital 10.46 billion
Paid-up capital 10.29 billion

Capital Stucture of MBNL

Authorized capital
Issued capital
Paid-up capital

1.3.4 Number of employees

There are total workings employees in MBNL are 13.

S. N Employee profile Numbers

1 Branch manager 1
2 Operation In-charge 1
3 Teller Department 2
4 Credit Department 4
5 Customer Service Department 2
6 Junior Employee 1
7 Security Guard 2

The above table gives clear information about respondents’ profile of Mega Bank Nepal Ltd.
Narayangarh-2. Total number of employees working in the bank is 13. There are 13 staffs in the
bank on different position like branch manager, operation in-charge, teller department, credit
department, customer service department, junior employee and Security Guard.

4
1.3.5 Product line
Mega Bank has offered different types of products to the general public as well as big corporate
houses and big businesses. The wide range of product is injected in the market in order to
provide diversified products to the consumers.

The Consumer Banking Products of Mega Bank is as follows:

Product on borrowing:

Fixed Deposit

Fixed Deposits can be made for a period ranging from six months to one year or over. The
interest rate is tied up to the tenure of the deposit. Customers can borrow from the Bank against
their Fixed Deposit Certificates.

Current Account

MBNL offers a wide range of products and services designed to make banking easier and to
match each and every customer’s requirements. This account is non-interest bearing account.
MBNL offers various flexible payment methods to allow customers to distribute money directly
to others. There is no limit for withdrawal and deposit in this account.

Saving Account

The saving deposits are more popular because it earns interest in one hand and cash can be
withdraw from bank can receive the operated by individual professional and salary earners and
some charitable organization. A portion of the saving account deposit is volatile due to the
frequent withdrawals.

MBNL offers different types of saving accounts such as;

 Mega Lokapriya Bachat Khata

 Mega Subharambha Bachat Khata
 Mega Current Deposit Account
 Mega Byapar Bachat Khata
 Mega Fixed Deposit Account

5
  Mega Dhamaka Mudhati Khata
 Mega Swabhiman Bachat Khata
 Mega Nari Special Account
 Mega Young Star Saving Account
 Mega Youth - MY Bank@ Campus Account
 Mega Karmachari Bachat Khata

Product on lending:

There are different types of products that fulfill the individual’s credit requirements. Various
lending-based products are available to both retail and corporate customers which are listed as
under:

Mega Auto Loan

Mega Auto Loan caters the need of our valued customer for financing brand new & used private
as well as commercial/utility vehicles. With wide selections of Auto Loan type and dedicated
service delivery, attractive interest rates, flexible loan tenure & repayment options, Mega Auto
Loan makes it very easy to drive home the vehicle that you have always desired.

Mega Mortgage Overdraft

Mega Mortgage Overdraft has been designed to meet short term contingent obligations of our
valued customers. Mortgage Overdraft is provided against mortgage of landed security. Hence,
all the documents prescribed for Mortgage Loan is mandatory for Mortgage Overdraft facility.

Mega Margin Lending

Mega Margin Lending is an easy loan that is provided against the security of share/stocks

Mega Personal Loan

Mega Personal Loan is a multipurpose loan product that accommodates short term small
financial needs of our valued customer with prompt and hassle-free loan processing without
landed security requirement. Be it a need of financing purchase of a consumer durables, purchase

6
of professional equipment, financing a vacation or medical care, Mega Personal Loan makes it
comfortable by providing a hassle-free finance facility at competitive interest rate.

Mega Education Loan

Dream of pursuing higher education has become easier than ever with hassle free financing from
Mega Bank. Mega Education Loan is an easy financial solution for the students willing to pursue
their higher education both abroad or in Nepal.

Card

Mega Bank has launched its ATM card in order facilitate its customers. With Mega Card, one
can have access to his/her account, 24 hours a day, 365 days a year through a wide network of
ATM.

Internet and SMS Banking

Mega bank also provides Internet and SMS Banking service so that customer can bank through
mobile phones as well. These services make banking transaction easy without cueing up in the
bank for a long time every day.

Currently available facilities under Internet & SMS banking are:

 Balance and statement inquiry.

 Order statement and cheque book
 Real Time Transaction Alerts (A/c Debit and Credit information)
 Get information on foreign exchange rate, interest rate
 Other Alerts as required

Credit Card

MBNL recently launch credit card services to customers to pay for things in shops or online.
Credit card can also use for balance transfers and taking out cash (also known as cash advance or
cash withdrawal) from an ATM.

7
1.3.6 Competitors
Since MBNL is a commercial bank and its one of the competitors are other commercial banks.
competitors commercial banks established in Narayangadh are: Nepal Bank Limited, Rastriya
Banijya Bank Ltd, Nabil Bank Ltd, Everest Bank Ltd, Standard Chartered Bank Nepal limited,
Himalayan Bank Ltd, Nepal SBI Bank Ltd, Siddhartha Bank Ltd, NIC Asia Bank Ltd, Sunrise
Bank Ltd, NMB Bank Ltd etc.

1.4 Organizational Structure

Like any other financial institutions, MBNL also has its management committee consisting nine
board members. This committee of Board of Directors (BOD) appoint Chief Executive Officer
(CEO). CEO, in turn appoints General Manager (GM) under whom all the Deputy General
Managers (DGM) works. The other departments in the organization work under the control of
DGM. An Organizational structure consists of activities such as task allocation, co-ordination
and supervision which are directed towards the achievement of organizational aims. Every
organization has its own structure to depict its line of authority and accountability. There are top
level management, middle level management and lower-level management. Top level manager
is superior to middle level manager. Lower-level manager is at the low level. A strong
organizational structure can help a bank thrive while offering variety of financial services.
1.4.1 Main Office of MBNL

The Head office of Mega Bank Nepal Limited is located at Kantipath, around which the majority
of business complex and financial institutions are clustered. Within the short span of 2 years, the
bank has significantly improved and increased its performance by focusing on customer-oriented
banking products and services. Due to its excellent banking services and aggressive marketing
strategy, the bank is popular with a large number of customers ranging from elite business
entities to educational institution. The head office offers complete banking services to its
customers. It has been providing Automated Teller Machine (ATM) and locker facilities. The
success and growth of the bank has inculcated a feeling of enthusiasm and synergy in the staff
members. There are all together eight departments prevailing in Kantipath (Head\Branch office).

 Customer Service Department (CSD)

8
  Cash Department
 Remittance Department
 Trade Finance Department
 Credit Department
 General Service Department
 Human Resource Department
 Finance and Treasury department

1.4.2 Organizational chart

The organizational chart of Narayanghat Branch where I did my intern is hierarchical based. The
information flow is from top to bottom managers.

Board of Directors

Management Chief Executive officer Audit Committee

Committee Secretariat

General Manager General Manager

D.G.M D.G.M D.G.M D.G.M

D.G.M

IT/ MIS
Accounts HR
Credit Management Marketing
Branch
Cells
Management
Corporate
Legal
Planning
Management
Support
Central
Finance 9
1.4.3 Departments Name
There are all together eight departments prevailing in Kantipath (Head/Branch office). They are:

(a) Customer Service Department:

Customer service department provides different services to its customer, such as: Account
Opening, Account Closing, Providing Bank Statement/Balance Certificate, Providing Cheque
Books, Providing Locker Facilities etc.

(b) Cash Department:

Cash department performs different activities like: Cash Withdrawal, Cash Deposit etc.

(c) Remittance Department:

This department performs all the activities related to clearing of cheques of different financial
institutions. This department also receives remittances from abroad and outside the Kathmandu
valley. This department also handles traveler’s cheques, fax transfer, telex\Swift transfer and
drafts.

(d) Trade Finance Department:

This department has three services for the customers: -

 Letter of Credit (LC)

 Telex Transfer (TT)
 Guarantee

(e) Credit Department:

10
Credit department is the core department of any commercial bank. Interest earned from disbursed
loan is the prime source of income of any bank. Success of any bank depends upon its ability to
provide loan that do not fall overdue and untimely convert into non- performing assets.

f) General Service Department:

This department keeps record regarding receipt and payment of the things which are necessary
to run bank. It also receives letter from the employees of various department regarding
requirements, stationery and other necessities. This department also keep the bird eye view on
goods they have received as per their order like whether the goods they have received are in right
condition or not.

g) Human Resource Department:

HRD involves hiring, promoting and firing of employees. Under the supervision of this
department various training programs for employees are also launched.

h) Finance and Treasury department:

This department comprises of two independent units:

1. Treasury Front Office (TFO)/Dealing Room:

It performs activities like managing overall liquidity of the bank, ensure the Cash Reserve
Ratio (CRR) is maintained within NRB directives, deals in Treasury Bills and Bonds and
manage Foreign Currency as required by the Bank.

2. Treasury Back Office (TBO):

TBO processes all deals resulting out of the dealing activities and performs related tasks,
which includes input, verification and settlement of deals, advising confirmation of deals,
nostro account reconciliation, monitoring nostro account movements.

1.4.4 Comment on organizational structure

At the time of working at MBNL as an intern, I found that the service provided by bank to its
customers was good. There is also good service for cash deposit and withdraw as well as for the

11
credit facility. There are only two staffs in teller departments. Due to the lack of sufficient staffs
in the teller department, sometimes customers have to wait for a long time. And the loan
procedure takes long time for the disbursement of the credit. However, sometimes failure of
system also delays in the activities of the bank. Failures of the ATM also create problems to the
customers. So, the bank must appoint another employee and focus on those activities for the
effective implementation of the activities.

1.5 Structure of my Department

1.5.1 Department Hierarchy

Operation
Incharge

CSD

Intern

1.5.2 Number of Employees in my Department

The department where I had worked is CSD. The number of employees in CSD department is
only two including me. Overall task of this department is handled by me two us.

12
 Chapter II - Internship Program

An internship is a period of work experience offered by an employer to give students and

graduates exposure to the working environment, often within a specific industry, which relates to
their field of study. Internships can be done in a range of sectors, including sales, marketing,
engineering, graphic design, management, I.T. and many, many more. As my field of study is
management so I did my internship in Mega Bank Nepal Limited (MBNL) where I got a chance
to develop variety of soft skills, including communication skills, personal effectiveness,
presentation skills, creative problem solving and influencing skills.
This internship program was a great opportunity to speak directly to people who have experience
in the role we aspire to; and their knowledge of the job and working environment gave us a
greater understanding of what it’s all about and what we need to do to progress.
An internship can give undergraduates like us a real insight into the world of work, allowing us
to build on the theory we learned at university and helping us to gain practical skills that will
help strengthen our CV and make us more employable. Internships offer undergraduates the
chance to test their skills in real-life situations, explore their career options and gain an insight
into an organisation or career path.

2.1 Introduction of the Branch

MBNL Narayangarh-II branch is located in Balmandir Road, Narayangarh. Narayangarh-II
branch of MBNL has been in operation since 2009 with an objective of extending
professionalized and efficient banking services to various segments of the society. Being in the
central locality of the country and having many competitors, this branch is able to hit the
appropriate target group and thereby contributes in the economic development of the area as
well as the country. From the period of its establishment, it has achieved its target and become
the market leader. The branch has the work force of almost 13 employees. Mega bank takes it as
a matter of honor and great achievement to have good relationship with its customer. So,
creating customer, retaining and satisfying them is a part of maintaining faithful relationship
with them.

13
 The Branch Manager of MBNL Narayangarh-II branch is Mr. Khadga Raj Parajuli who looked
over all the activities of the bank. Operation Department is handled by Mrs. Gita Sharma. The
Credit Department is handled by Mr. Bikash Karki, Mr. Udaya Poudel and Mr. Bhasker
Duwadi. The Customer Service department is looked by Mrs. Srijana Gautam & Rupa Rijal.
Cash and Remittance Department is looked by Mrs. Bindu Poudel and Mr. Binaya Jugjali. The
bank provides various banking facilities like accepting deposits, collecting and discounting Bills
of Exchanges, providing LC facilities, providing credit facilities, remittance and fund transfer
facilities; through SWIFT messages, ATM facility, purchasing and selling foreign currencies,
etc.

2.2 Worked Department

During my internship period in Mega Bank Nepal Ltd, I got the opportunity to work in the
Narayanghat-II Branch. I was placed in the Customer Service Department under the supervision
of Mrs. Srijana Gautam (CSD) and Mrs. Gita Sharma (Operation In-charge) and also got the
opportunity to work in Credit Department. I was placed in those departments for at least 20 days
during my internship period. The duration of internship at MBNL as defined by Pokhara
University is 45 days. The duration of the internship at MBNL was 45 days starting from Jan 2,
2020 to April 07, 2020. During this period intern are engaged on customer service, and credit
department. All the department of bank helped in developing managerial as well as
interpersonal skill and supported in collecting all the necessary information and data that are
helpful to prepare internship report.

2.3 Description of the task during internship

As expected, the internship was a great learning experience. It not only provided an opportunity
to get exposure to the real working environment, but also helped learning many skills and
gaining knowledge on different aspects.

1. Customer Service Department

14
As I was placed in CSD throughout my internship period, I carried out all the functions of CSD.
So the activities I performed in CSD are as follows:

 To counsel the customers and answer their enquiries.

 Informing customers about the various services provided by the bank.
 To open the different accounts after all the requirements are fulfilled.
 To print out the Statement as per the requirements of customers. • To deliver the checks
and cards and internet banking password as per the requirement of organization.
 To deliver ATM cards.
 To close the accounts of customers.
 To fill the deposit slip and current vouchers.
 To prepare balance certificate.
 To prepare the statement of account.
 Photocopy and scanning.

2. Credit Administration Department (CAD)

Credit Administration Department carries out the functions relating to legal and security
documentation, implementation, reporting and maintaining the customer’s file. CAD starts
functioning after the credit facility is approved by the lending authority. Followings are the
major functions that I performed in this department.

 Preparing and obtaining the security documents like loan deed, pledge deed, hire
purchase agreement, promissory note, personal guarantee, and hypothecation etc.
 To ensure that all documentation is complete and in compliance with the legal
department so that they are legally enforceable.
 Photocopying the original documents and preparation of credit files of the customers.
 Filing the legal and security documents in orderly and well secured manner.

15
 CHAPTER III - CRITICAL ANALYSIS

3.1 Critical Analysis of Theoretical Concepts Relating to Practical Experiences:

Throughout the internship period, I felt that the theoretical knowledge that we are getting in our
University is of great help in our practical life i.e. the working scenario that we are going to deal
with. The theoretical knowledge helped us to know what we were actually dealing with. It made
our learning process simple and easy. The various theoretical concepts that we experienced
during our internship are as described below:
 Provisions related to loan: As studied in Legal Aspects of business, the organization
provides loan to capital deficit sector only after validating the purpose for which the loan
has been taken, evaluation of the property given as collateral, inspection of whether the
loan will be recovered on time or not and so on.
 Organizational structure: In MBNL, I found a typical hierarchical structure where all the
employees had to work under a branch manager.
 Training: Theoretically, we had studied that the employees has to be provided with the
technical knowledge regarding the new system to be introduced. But in case of MBNL,
the employees didn’t have much knowledge about the system that they were using
because of which they were facing lots of difficulties in doing their jobs.
 Business Communications: Business Communication was the course which I had been
taught way back in my second semester but still the knowledge proved to be vital during
my internship. I was able to communicate my ideas clearly with my seniors and with the
clients while introducing the products offered by the bank. Thanks to the course, I wrote
letters, prepared reports and documents with little or no supervision from my supervisors.

Financial Management: Debit and credit rules are the minimum basics of any finance course. It
not only helps in preparing journals, ledgers, balance sheets, income statements but also can help
us understand the financial health of any organization, cash position and other critical financial
indicators. There are basically two source of financing for any firm i.e. equity and loan. Many
organizations considered loan from the bank to expand their business to purchase vehicle,
machinery and other fixed assets. The knowledge of individual clients and organizational clients

16
helped me differentiate them, their accounts, type of loans, types of check they needed and the
type of liabilities they owed towards the bank.

3.2 Success & Failure of Different Products:

Among the various products & services offered by MBNL, Current Account is most popular
among creditors and Youth Account is most popular among young people. In case of loan, it has
huge market as interest charged on it is low (i.e. 14%).
The Core Banking System adopted by the bank has been a great success in operating daily
activities of the bank as well as it has helped to securely record and retrieve the data easily.
The counters and ATM of MBNL are extending to different parts of the country.
But Due to lack of technical manpower and technology, sometimes failure in ATM service
occurs which often took several days to maintain. As well as Due to extension of counters
management of staff has been a problem recently.

3.3 Major Competitors of the Organization:

Due to the open and liberalized policy adopted in the mid-1980s, many private institutions got
involved in banking sectors. At present (Up to 2074 Bhadra) there are 29 Commercial Banks, 68
Development Banks, 44 Finance Companies and 41 Micro Finance Companies. All these
financial institutions have their own unique features and qualities because of which they are
operating in the market. So, basically, we can consider all these financial institutions as its major
competitors because the day any of these institutions offered better products and services than
provided by MBNL then there are chances that MBNL may lose its customers and may have to
bear a heavy loss. The competitors of MBNL are:

 Global IME Bank Limited

 Sunrise Bank
 Siddhartha Bank Limited
 Bank of Kathmandu Lumbini Limited
 Himalayan Bank Limited
 Nepal Investment Bank limited

17
  Prabhu Bank Limited

3.4 Future Prospects of the Organization:

As it is an organization owned by government, government has played a vital role in its growth
and development. Government has made it mandatory to open the account in government banks
(one of which is MBNL) in order to get the Social Security Allowances (SSA). This has greatly
helped the organization to expand its business to wide range of people. Moreover, if the
organization is able to properly analyze the market i.e. its competitors and provide new &
innovative products & services to its customers then there are high chances that it will be able to
establish itself as one of the best financial institutions in Nepal in some future date.

SWOT Analysis
A strategic plan or mission for the future begins with an assessment of the current situation in
which the organization exists. The organization has to analyze the potential strengths to gain
competitive advantage. It helps to predict the possible opportunities to capture the possible gains
and advantages for growth and development. Strength and weakness represent resource:
competency capability, opportunity and threat come from external environment forces of a firm.
It provides the overview of whether the firm’s comparative position is fundamental healthy or
unhealthy.

Strengths

 Goodwill in the market

 Strong corresponding bank network
 Widely spread branch network across the major cities
 Increasing deposit even in prevailing advertise and yearly competitive market
 Superior intellectual capital relative to key rival
 Use of latest technology (i.e. SMS banking, e-banking, ABBS, ATM cards).

Weaknesses

18
  Long procedures for lending to clients.
 Increasing non-performing loan
 Low interest rates to generate further resources
 Lack of proper co-ordination between several departs in the organization.

Opportunities

 Growing urbanization
 Expanding saving habit of household
 Potential to expansion of branches
 Increasing remittance market.

Threats

 Increasing number of commercial banks

 Sluggish economic growth
 Unhealthy competition

19
 Chapter IV - Conclusion and Suggestion

4.1 Conclusion:
Mega Bank Nepal Limited (MBNL) has been able to establish itself as an institution highly
devoted for the upliftment of agriculture sector in the country. MBNL has been able to maintain
good position in the banking industry of the country. It gains the reputation by its active banking
service. It helps to uplift the life of its customer by providing loan to them and it also provides
suggestion to their customer how to utilize the loan. It has been providing loan to the farmers at
a very competitive interest rate that has highly motivated them to start up new business. People
with small investment plan are also able to get loan which has helped them to improve their
standard of living and has contributed to a great extent to alleviate poverty from the country.
During the 7 weeks of internship at MBNLL, we were provided with ample opportunities to get
an insight of core operation of the host organization in the complex business environment,
working with diverse mix of staff from different background and from different works of life
with profound knowledge provided an experimental and holistic learning experience. As we
spent most of our weeks in Customer service Departments (CSD) that deals directly with the
customer’s enquiries, handling complaints and service distribution, we were able to enhance our
interpersonal and communication skills.

Prior to internship, my knowledge was limited within the books. The theoretical knowledge
gained about the customer relation was actually implemented in the practical banking settings.
This internship program has greatly helped me in getting the actual insight of the banking
environment.
In conclusion, it can be conveyed that CSD is the most sensitive department. It is very much
clear that the bank realizes the huge part of income through customer satisfaction. Although,
other departments also play sensitive role for the success of bank, huge credit goes to customer
service department as it gives the first impression to the customers. Hence, the bank must
analyze such factors to gain success in the future period through fulfilling customer’s needs and
demands

20
4.3 Recommendations
After completion of my internship in MBNL provide the opportunity to learn various aspects of
the products and services provided by MBNL. With references to the analysis following
recommendation are made which may help in future to the bank to improve its performance. So,
the recommendations are:

 This bank has been providing quality service to its customers which should be
continuing in future also.
 The bank should conduct human resources programs such as training program timely.
 The bank should segment its market in other sector too and increase it number of clients.
It should provide loan to service sector.
 The service of debit card and ATM should be increase as they are higher return business.
 Bank should introduce more product and services in order to capture larger market
sectors.
 Interest rate on both deposits and loan should be managed efficiently in order to gain
competitive advantage.

21
 References:

Ghimire, R. ,. (2013). Marketing Financial Services . Kathmandu: Sukunda Pustak Publishers &
Distributors (P) Ltd.

Limited, C. B. (2016). Fifth Annual Report (Fiscal year 2071/2072). Kathmandu: Citizens Bank
Interantional Limited.

Prof. Manandhar, K. ,. (2009). Marketing Financial Services . Kathmandu: Asmita Books

Publishers & Distributors (P) Ltd.

Unaudited Financial Results (Quarterly) . (2016, August 2). Karobar National Daily .

www.megabanknepal.com. (n.d.).

22