Internship
Report
On
Pay
ment solution Department
Of
siddhartha
bank ltd.
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Prepared By
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Ram Bahadur Saud
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Exam Roll. No: 12-FF-3062
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UNIVERSITY
REG ID: 102220
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Submitted to:
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Rajiv Sharma
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Faculty of Management
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King’s College
International
American University
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IN THE PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE DEGREE OF MASTER
IN BUSINESS ADMINISTRATION (MBA)
SEPTEMBER 2014
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ACKNOWLEDGEMENT
I would like
to extend my gratitude to International American University for designing MBA
course enriched with the internship programme. This has helped me and other
students to get lots of knowledge, skills and experience during MBA and the
internship programme. It is a great honor to be the part of International
American University. I am also thankful to King's College Kathmandu and our
Report Supervisor, Mr. Rajiv Sharma for his guidance and supervision in the
project report and enabling to give it this shape.
I feel very much lucky to
get a great opportunity to carry on my internship program with such a remarkable
Bank like Siddhartha Bank Ltd. I here
with thankfully remember the name Mr. Rabeen
Malla (Manager, Payment Solution Department) my organization supervisor for
giving his precious time to support and guide me with knowledge and resources.
On the other hand, I am really thankful to Mr. Prakash Shrestha (Human Resource Department), Mr. Chitra
Karki, Chandra Kumar Pokhrel and Shishir Lamichhane (Payment Solution
Department) of pay for kindly allowing me to undertake this internship in
Siddhartha Bank Ltd and remarkable support for preparing this report.
I intend to convey my
special thanks to all the employee of Siddhartha
Bank Ltd. Specially, Payment Solution Department for giving me full
cooperation and support in preparing this report.
I am also profoundly
grateful to my family for providing me the moral support.
Ram Saud
DECLARATION
I hereby
declare that the internship report entitled “An Internship Report On Payment
Solution Department of Siddhartha Bank Ltd, Head Office”, submitted to Office
of the Dean, Faculty of Management, International American University, is my
original work done in the form of partial fulfillment of the requirement of
Master of Business Administration (MBA) on the recommendation by King’s College
and done under the supervision of Mr. Rajiv Sharma.
Ram Saud
……………..………………
Name of student
MBA
LIST OF ACRONYMS
SBL Siddhartha Bank Ltd.
DCMS Debit Card Management System
HRM Human Resource Management
PSD Payment
Solution Department
ECS Electra
Card Service
SCT Smart
Choice Technology
NPN National
Payment Network
ATM Automated
Teller Machine
NRB Nepal
Rastra Bank
BLB Branchless
Banking
POS Point of
Sell
SME Small and
Medium Size Enterprise
List of Tables and Figures
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Executive Summary
As per the Curriculum of
International American University, Internship program is the pre-requisite for
the MBA at King's College. Classroom discussion alone cannot make a student
perfect in handling the real business situation; therefore it is an opportunity
for the students to know about the real life situation through this program.
These reports broadly
cover the relevance of internship topic, detail about organization, experience
during Internship period and analysis of organization from different corner.
The first chapter details the objective and relevance of internship and
internship topic. Here the objective is to understand the gap between theory
and practice in the field of management as well as to evaluate the
correspondence of our dream in our dream field thereby our mind will make
inside track to choose secure, one best way. That will be the golden step to
spring up our career. The second chapter includes about organization, its
industry and its products and services. The function of organization and other
contents in this chapter are described based on practical understanding.
Internship experience and critical analysis of Internship activities is covered
in last chapter. Which try to portray the personal view on “What is Siddhartha
Bank Limited now?” and “What it must be?" This Internship report is
finalized with some more specific personal opinions about the organization.
During my Internship and
report writing the major breakthrough is that the theoretical knowledge matches
with practical knowledge in various real sectors in many extents. But too there
exists deviations in various level of organization hierarchy.
TABLE OF CONTENT
CHAPTER ONE
1. INTRODUCTION
1.1 BACKGROUND
Every student gains the theoretical knowledge from the
regular classes which is not so easy to implement in real-life settings of the
organization. As MBA program is the blend of theoretical and practical
knowledge, eight credit hours have been assigned for the internship to blend
theoretical and skills acquired in the classroom situation with the real time
setting of the organization.
An internship is a unique aspect of education that integrates
study with planned and supervised career-related work experience. The purpose
of the program is to develop and strengthen the student’s educational and
career preparation. An internship will expose the student to the interpersonal
relationships a job requires, both with co-workers and supervisors that are
essential in obtaining a successful, satisfying career. Internship enables
employer to assist the high school in preparing students to work in today’s
business environment.
As the requirement of the course, the duration on internship
is for eight weeks. This internship session is undertaken in the eight semester
of MBA to get practical knowledge of the organizational procedures and the
culture inherent. Regarding the report, the base of the study was to review the
different procedures and requirement of various departments in banking
industry. Internship enables the student to be acquainted with the practical
aspect of the Nepalese business practices and gain knowledge of various aspect
of the Nepalese business environment. It encourages student to relate the
previous semesters’ theoretical study into practical business application. This
enhances the understanding and skill of the internee.
Successful internships can be found in diverse settings and
involve widely varying projects and assignments. All successful internships,
however, share three traits.
- The
host organization receives significant assistance as a result of the
intern's contributions.
- The
site supervisor provides feedback about the intern's performance and
potential career path.
- The
intern is challenged to develop professional skills, knowledge, and
ability.
Thus,
during the course of 8 weeks, the student is simulated with the real time
activities that are performed in the organization, which makes the student
better prepared to face the market after the completion of MBA.
1.2 OBJECTIVE
OF THE REPORT
The broad objective of this report is to
investigate the operations and conduct an internship report on the comparative
analysis of credit card’s existing and new customer base of Siddhartha Bank
which is a prerequisite to partial fulfilment of MBA degree.
The specific objectives of the report include
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Ø To get an
overview of the bank.
Ø To give a brief
idea of cards and other electronic payment related products. .
Ø To analyze the
bank’s comparative performance in the banking industry concerning credit Cards.
Ø And most of all
to gain a life time experience by working as an intern and achieving knowledge.
Ø To be accustom with the management practices in banks.
Ø To gain
practical insight of the real working conditions.
Ø Discover where
further competence is needed.
Ø To learn
how to deal with customer tactfully.
1.3 LIMITATION
This study has been
prepared on the basis of observations and experience gained during internship
period.
The following are the
limitations of the study:
- Lack
of information in a manner required for analysis and the secrecy of the
bank.
- This
study takes into consideration only about general activities and does not
include the minor details about each and every activity performed in the
bank due to the time constraint.
- The
interpretation and conclusion were drawn within the limitations of
individual’s knowledge and judgments abilities and on the basis of data
provided and other published and unpublished source. So it may lack the
professional and expert touch.
1.4 METHODOLOGY
1.4.1
Type of Research
The study is exploratory in
nature. It gives an insight and comprehensiveness of the Credit Card. To collect
and analyze the information for this report, I have used both qualitative and
quantitative research methods.
1.4.2 Data Collection Procedure
A major part of my data
collection was secondary source. Due to confidential issue, I have access to
only limited primary source of data for the organizational basic information. I
have used following methodologies for data collection.
a)
Primary Source
Primary data sources are the customers of SBL
and personnel of Payment Solution Department of SBL. For this, it was collected
through-
- Unstructured Observation:
I observed top-level executives and lower
level employees for actual data collection. And I tried to note down anything I
felt relevant and then sorted them out later on.
- In-depth Interview: I made lot of interviews with executives, other staffs and target card
holders personally. It was not structured questions. Rather structured question
asked to them in an informal way.
b)
Secondary Source
- Bank's websites regional websites,
-Bank's
annual report
-NRB websites
-websites of other
bank
- Organization booklets of charges and fees, brochures, application forms,
- Prospectus, newspapers, publications and the bank's internal records,
previous reports etc.
1.5
DATA ANALYSIS AND INTERPRETATION
Nepalese
credit card market is in infant stage in comparison of debit card, though there
is a long history of credit card. However the so many commercial banks are
offering the credit card using the aggressive marketing strategies and also
providing variety of services to their customers.
In
this report I have tried to analyse the SBL credit card and its quality,
services, charges and fees, and other aspect in comparison of other bank credit
card in Nepalese market.
1.5.1 Service offering
All the service offering of different issuer are
listed at following;
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Facilities
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SBL
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Laxmi
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Goble IME
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NABIL
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SCB
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Average card processing & Delivering time
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5 days
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1 week
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1 week
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1 week
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15 days
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Payment Due date from statement date
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15 days
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15 days
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15 days
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15 days
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15 days
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Max with drawl limit
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35000
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35000
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35000
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35000
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10000
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Cash with drawl facility
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90%
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95%
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90%
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90%
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0
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ATM Facilities
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57
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51
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80
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84
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20
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Table 1. 1:
Service offering of different issuers
a)
Card Processing & Delivery Time :he average time for
processing the card and delivery is 5 Days for SBL. Other bank takes normally 1
week and SCB takes 15 days for processing the card and delivery.
b)
Payment Due Date From Statement Date: SBL is also the provider of
the maximum time in the market for payment due date from statement date with 15
days comparing to the same of 15 days provided by the other issuers.
c)
Cash Withdrawal :SBL, Global IME and NABIL
provides the 90% cash with drawl facility and Laxmi bank provides up to 95%
cash with drawl facilities of the credit limit where as SCB Nepal does not have
provision of cash with drawl facility .
d)
ATM Facility : Cash advance facility has a
close relation with ATM (Automated Teller Machine) facility for credit card, which is very convenient for the
cardholders to draw cash from ATM rather than going to the bank. Here
NABIL bank is in leading position, it has 84 ATMs and the SCB has the least
numbers of ATMs 20.
1.5.2 Charge of different issuer's credit card
Different charges
on different credit issuer bank are presented in following table:
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Fee & charges
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SBL
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Laxmi
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Goble IME
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NABIL
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SCB
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Annual fee
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1000
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750
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750
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750
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750
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Issuing fee
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1000
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750
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750
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750
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750
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Replacement fee
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500
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750
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750
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750
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750
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Pin reissue fee
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50
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50
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50
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0
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0
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Late payment Fee
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500
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500
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500
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250
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500
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Withdrawal fee (own ATM)
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200+2%
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200+2%
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200+2%
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200+2.25%
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200+2%
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With drawl fee (other's ATM)
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300+2%
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300+2%
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300+2%
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200+2.25%
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300+2.5%
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Interest charge
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24%
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24%
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24%
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24%
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30%
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Payment Option
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10-100%
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5-100%
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10-100%
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10-100%
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10-100%
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Table 1. 2: Credit
card charges of different issuer
In term of annual and issuing charge SBL credit card has the
highest fees which is Rs. 1000 and other issuer has Rs. 750. The replacement
fee is less than the other issuer where SBL charging Rs. 500 and other charge
Rs. 750. SBL, Laxmi and Global IME are charging Rs. 50 for pin reissue and NABIL and SCB has free. Late payment of NABIL is cheaper than
other's. Cash withdrawal fee is moral
less same of 4 banks but NABIL bank is expensive in own ATM however NABIL bank
cheaper in other's ATM. SBL is average in both fees (withdrawal in own ATM
& other's ATM)
Interest of all banks except SCB is same 24% p.a. where as
SCB charges by 30% interest on used amount.
1.5.3 Monthly average credit card transaction amount
Following table shows the average monthly transaction
of SBL credit card:
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Txn. Amount
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No. of user
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Percent (%)
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Cumulative
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less than Rs. 2000
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330
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11.01
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100
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Rs. 2000-4999
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1081
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36.08
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88.99
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Rs. 5000-9999
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762
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25.43
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52.90
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Rs. 10000-19999
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539
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17.99
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27.47
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More than Rs. 20000
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284
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9.48
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9.48
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Total
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2996
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100
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Table 1.3: Monthly transaction amount
In the above table explains that the highest number of
SBL credit card user make the transaction Rs. 2000—4999, 25 % of credit card
user uses the Rs. 5000-9999 monthly and 11.01% user use less than Rs. 2000 and
17.99% user use the amount Rs. 10000-19999 and 9.48% user uses more than Rs.
20000 per month from credit card.
It can be explain average monthly transaction amount
of SBL credit card user by following diagram.
Figure 1.1:
Monthly credit card transaction
Above diagram shows the number of credit card users
making the monthly transaction. Maximum number of credit card user using Rs.
2000-4999 per month and minimum user are using the more than Rs, 20000 per
month from SBL credit card.
1.5.4 Comparison of monthly transaction of Cash withdrawal and POS
Following table and diagram explain the detail of
monthly pos and cash withdrawal transaction of SBL credit card transaction.
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POS
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Cash Withdrawal from ATM
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1240
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750
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Table 1.4:
Monthly transactions
Figure 1.2:
Monthly transactions
In Nepal the credit card market is in emerging phase,
few people carry the credit card as the very few people have the showing income
source most of those are employee of government and private sector. Due to the
withdrawal fees on credit card the number of Withdrawal transaction is less
than the POS transactions.
1.6 FINDING, CONCLUSTION & RECOMMENDATION
1.6.1 Finding
a)
By analysing the service offering and the charge of SBL
regarding credit card comparing with other bank, SBL has the minimum charges.
b)
SBL is also the provider of the maximum time in the market
for payment due date from statement date
with 15 days.
c)
Late payment fee
d)
Lowest annual fee
e)
The SBL credit card has been found cheap in term of cash
advance fee and interest on same comparing with other bank.
1.6.2
Conclusion
In this age of modern civilization bank is playing its
splendid role to keep to the economic development wheel moving. We can see
lot of new commercial banks has been established in last few years and
these banks have made this banking sector very competitive. The major task for
banks, to survive in this competitive environment is by managing its assets and
liabilities in an efficient way. The overall success in credit management
depends on the customer satisfaction. From the analyses and findings of the
study, it is obvious that there is a lot of market potential for SBL in
the Credit Card Business and some areas of improvement are there also
comparing to the existing issuers in the market. SBL having basic infrastructure
manpower and a larger potential client base this is the high time for
the bank to enter into the business. Initially, it will require a huge
investment; but the bank is financially sound to incur such amount of
investment in new line of business.
1.6.3 Recommendation
The specific and broad recommendations of
the study are as follows:
a)
Train employees to provide better service to the card holders
and form a strong sales force to sale its credit card
b)
Credit card annual fee and issuing fee of SBL credit card is
higher than other issuer in market. It should decrease to promote and make
competitive in the market in term of fees.
c)
ATM facility is an advantage for the bank to provide ATM
facility to its card holders. SBL should increase the number
of its ATM booths.
d)
In case of determining the charges and fees the bank should
follow the
least price strategy, at least initially, while entering the market, to attract the
customers. The charges may be gradually increased while staying competitive in
the market.
e)
The bonus point system can be followed. Waiver on interest
charges and/or renewal charges will strike into minds of the cardholders
and they will be more satisfied and encouraged to do more and more card
transaction.
f)
Customers should be offered occasional gifts and discounts,
which can make the credit card more attractive and keep the consumer
delighted.
g)
Regular customer survey could also be conducted with an aim
to find out the
customer's expectations or to know about their satisfaction on bank's performance.
h)
Finally, heavy marketing and promotional campaign should be
conducted to popularize the product and make people aware of the
service.
CHAPTER TWO
2. Industry and Organization Profile
2.1 COMMERCIAL BANKS
A commercial bank is a type of financial institution and intermediary. It is a bank that
provides transactional, savings, and money market
accounts and that accepts time deposits. The term commercial bank is used to differentiate
these banks from investment banks, which are primarily engaged in the financial
markets. Commercial banks are also differentiated from retail banks that cater
to individual clients only. In non-English-speaking countries the term
commercial bank is used interchangeably with the term trading bank. Commercial
banks play a number of roles in the financial stability and cash flow of a
countries private sector. They process payments through a variety of means
including telegraphic transfer, internet banking and electronic funds
transfers. Commercial banks issue bank checks and drafts, as well as accept
money on term deposits.
Commercial
banks also act as moneylenders, by way of installment loans and overdrafts.
Loan options include secured loans, unsecured loans, and mortgage loans. A
secured loan is one where the borrower provides a certain property or asset as
collateral against the loan. The main condition of these loans is that if the
loan remains unpaid, the bank has the right to use the property in any way they
like to realize the outstanding amount. Unsecured loans have no collateral and
therefore command higher interest rates. There are a variety of unsecured loans
available today and these include credit cards, credit facilities such as a
lines of credit, corporate bonds, and bank overdrafts. Mortgage loans that are
provided by commercial banks are similar to secured loans but are used
specifically to buy real estate property for commercial purposes. In most of
these cases, the banks hold a lien on the title to the particular property
purchased with the loan. If the borrower is unable to pay the loan back, the
bank leverages this item against the loan to generate funds or recover the
principal.
Commercial
banks provide a number of import financial and trading documents such as
letters of credit, performance bonds, standby letters of credit, security
underwriting commitments and various other types of balance sheet guarantees.
They also take responsibility for safeguarding such documents and other
valuables by providing safe deposit boxes.
Currency
exchange functions and the provision of unit trusts and commercial insurance
are typically provided by the relevant departments in larger commercial banks.
Commercial bank being the
financial institution performs diverse types of functions. It satisfies the
financial needs of the sectors such as agriculture, industry, trade,
communication, etc. That means they play very significant role in a process of
economic social needs. The functions performed by banks are changing according
to change in time and recently they are becoming customer centric and widening
their functions. Generally the functions of commercial banks are divided into
two categories viz. primary functions and the secondary functions. The
following chart simplifies the functions of banks. The list of Commercial Banks
in Nepal is shown in Appendix 1.
2.2 ABOUT SIDDHARTHA BANK
Siddhartha Bank
commenced its operations from December 25, 2002 as the 17th commercial bank of
Nepal. Within a decade, the Bank has created a distinctive identity in serving
the people through a network of 46 branches and 58 ATMs spread around
Chandragadhi of Mechi to Mahendranagar of Mahakali zones. Siddhartha Bank is a
“customer- oriented” and “growth driven” bank. The Bank’s dynamic product
offerings, technology use, competent human resources and dedicated management
team, have always been directed towards best quality service delivery to its
valued customers. The core values of the Bank are customer focus, shareholder’s
prosperity, employee’s growth and economic welfare in general. Throughout its
journey, the Bank has transformed itself in ways that ensure delivery of best
available banking services to its customers. The change of corporate logo on
April 8, 2009 reflected the Bank’s renewed promise and commitment to its
customers and evolution. Adoption of FLEXCUBE Universal Banking system also
reflected the Bank’s intent of providing modern banking facilities in
competitive environment. The Bank has ventured out to serve rural populace
through Branchless Banking (Sajilo Banking Sewa) service through various
agents, whereby the transaction is authenticated through biometric POS
machines. Over these ten years, the Bank has been in constant search for
opportunities to better serve the customers and has tapped every viable
opportunity effectively. In the highly competitive banking environment of
Nepal, Siddhartha Bank has successfully met the challenges and is pursuing a
healthy and organic growth. The Bank has stood tall on the trust of its valued
customers and other stakeholders and most importantly, this trust has inspired
the Bank to focus on the needs of its valued customers. The decade long journey
of success and significant achievements are the foundation upon which the Bank
is creating and identifying new opportunities for its customers and other
stakeholders in the years to come.
2.2.1 Vision & Mission
Vision
"Siddhartha Bank runs
with a vision to be financially sound, operationally efficient and to keep
abreast with technological developments."
Mission
The Bank desires to be one
of the leading banks of the industry by fulfilling the interest of the
stakeholders and also aims to provide total customer satisfaction by way of
offering innovative products and by developing and retaining highly motivated
and committed staffs. The following mission statement is a guide to meet the
Vision of the Bank:
·
Be
one of the leading banks of the industry in terms of profitability,
productivity and innovation.
·
Aim
at total customer satisfaction by rendering efficient and diversified financial
services through improved technology.
·
Build
a highly motivated and committed team of staffs by nurturing a good work culture
to achieve superior individual performance aiming to enhance organizational
effectiveness.
·
Be
the place of pride to all its stakeholders.
2.4 BOARD OF DIRECTOR
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CHIRANJILAL
AGRAWAL
Chairman |
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POONAM
CHAND AGRAWAL
Director |
MANOJ
KUMAR KEDIA
Director |
RATAN
LAL KEDIA
Director |
BISHWA NATH
SHAH
Director |
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MAHESH
PRASAD POKHAREL
Director |
HEMANT
GYAWALI
Director |
RAJESH
KUMAR KEDIA
Director |
BHAGAT
BISTA
Director |
Figure 2.3: Board of Director
2.5 MANAGEMENT TEAM
The Bank’s consistent performance with full assurance
of healthy financials has been possible through constant, persistent and
dedicated efforts of the management team of the Bank. All members of Bank’s
senior management team have been associated with the banking industry for a
fairly long time and are well versed with the nuts and bolts of banking and the
overall market. The management team of the Bank comprises of young and talented
members that draw together diverse skill sets and
experiences in diverse areas within the country’s banking
industry.
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Surender Bhandari
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Chief Executive Officer
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Shambhu Nath Gautam
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Chief Business Officer
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Sundar Prasad Kadel
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Chief Operating Officer
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Rameshwar Prasad Bashyal
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Sher Bahadur Budhathoki Senior
Business Officer
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Senior Business Officer
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Laxman Subba Head SME &
Consumer Banking
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Arjun Bhadra
Khanal
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Surya Bahadur Tamang
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Shailaja Gyawali
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Head Business Support
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Head Corporate Credit
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Head Valley Resources
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Srijan Krishna Malla
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Ira Pradhan
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Kamal Basnet
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Pankaj Pant
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Dilli Raj Lekhak
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Head IT
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Relationship Manager
Corporate Credit
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Branch Manager Birtanagar
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Head Remittance &
Branch Manager Tripureshwore
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Branch Manager Birgunj
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Biplavi Singh
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Amit Shrestha
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Prabin Dhungel
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Pradeep Pant
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Anindra Raj Acharya
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Branch Manager New Road
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Relationship Manager
Corporate Credit
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Head Credit Risk,
Administration, Compliance & Recovery
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Relationship Manager Valley Resources
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Head Internal Audit, Control & Compliance
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Ram Chandra Khanal
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Bhola Nath Dhungana
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Pravin Nidhi Tiwari
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Upendra Gartaula
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Rudra Nath Dhungana
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Head Finance & Accounts
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Manager Legal & Company Secretary
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Manager Branch Operations
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Relationship Manager Biratnagar
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Relationship Manager SME & Consumer Banking
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Tej Raj Timilsina
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Chandan Karki
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Rabeen Malla
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Sushil Nepal
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Saroj Kafle
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Branch Manager Dhangadhi
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Manager Treasury
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Manager Payment Solutions
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Branch Manager Butwal
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Information Security Manager
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Figure 2.4:
Management Team
2.7 BRANCH NETWORK
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Head Office
Hattisar, Kathmandu
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1) Hattisar Branch
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2) Tinkune Branch
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4) Birgunj Branch
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3) Tripureshwor Branch
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6) Pokhara Branch
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5) Biratnagar Branch
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8) Narayangarh Branch
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7) Damak Branch
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10) Patan Branch
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9) Gwarko (B & B) Extension Counter
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12) Tikapur Branch
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11) Old Baneshwor Branch
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14) Mahendranagar Branch
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13) Dhangadhi Branch
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16) Bhairahwa Branch
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15) Butwal Branch
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18) Tinkune Branch
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17) Thamel Branch
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20) Nepalgunj Branch
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19) Kumaripati Branch
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22) Ghorahi Branch
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21) Tulsipur Branch
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24) Kalanki Branch
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23) Gongabu Branch
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26) Satdobato Branch
|
25) Gatthaghar Branch
|
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28) Sankhamul Branch
|
27) Bouddha Branch
|
||
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30) Swoyambhu Branch
|
29) Saraswotinagar Branch
|
||
|
32) Janakpur Branch
|
31) Maharajgunj Branch
|
||
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34) Sindhuli Branch
|
33) Bardibas Branch
|
||
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36) Hetauda Branch
|
35) Chandragadi Branch
|
||
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38) Bagar Branch
|
37) Dharan Branch
|
||
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40) Namche Branch
|
39) Krishnanagar Branch
|
||
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42) Kalaiya Branch
|
41) Dailekh Branch
|
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44) Birtamod Branch
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43) Manahara Extension Counter
|
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46) Dadeldhura Branch
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45) Itahari Branch
|
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Figure 2. 5: Branch Network
2.7 PRODUCTS AND SERVICES OFFERED SIDDHARTHA BANK LTD.
Siddhartha Bank offers a
wide variety of financial products and services to meet the varied needs of its
diverse clientele. The Bank believes in constantly reinventing and innovating
products and services so as to best serve the needs of its existing customers
as well as potential customers.
Deposit products
The Bank offers multitude of
deposit products to meet the unique requirements of its diverse clientele. The
products range from a current/call account that caters to the needs of the
business community, fixed deposits accounts with varying tenures meant for both
individuals and institutions to a number of savings accounts meant for
different customer categories. All these accounts come with a bundle of other
banking services such as internet banking, mobile banking, SMS alert, Any
Branch Banking Services (ABBS), utility payment, locker services, etc. The
deposit products of the Bank are developed keenly considering the needs and
requirements of the customers. The Bank boasts a wide range of savings accounts
for different customer groups. The savings account include Siddhartha Bachat
(zero balance account), Sarvottam Bachat (high interest bearing account), Jestha Nagarik Bachat (for senior citizens
aged 50 & above), Nari Bachat (for women), Bal Bachat (for minors), Bishesh
Bachat (with insurance coverage), Investors Savings (for those investing in
share market), Remit Account (for individuals working/deputed abroad and their
family members). The Bank also manages salary accounts on behalf of its valued
customers and facilitates payment of utility bills for various institutional
customers.
Loans and Advances
Our credit facilities range
from consumer loans to meet requirements of households, SME loans for small and
medium sized enterprises to big project financing in sectors such as hydro
power, infrastructure development, airlines, etc. Besides, a number of credit
facilities such as overdraft facilities, project financing, term loans and
short term loans are offered by the Bank. Consumer Loan includes Home Loans,
Auto Loans, Education Loans, Personal Loans, and Loans against Fixed Deposit
Receipt. Small and Medium Enterprises
(SME) Loans include loans to
meet the financial needs of small and medium sized enterprises. Business Loans,
on the other hand include loans provided for project financing in sectors such
as manufacturing, construction, service, infrastructure development, airlines,
etc.
Trade finance
In order to facilitate
business houses, particularly traders of the country, the Bank has been
providing trade finance related loans and advances. The Bank facilitates the
business requirements of business houses/traders through Import Letter of
Credit, Export Letter of Credit, Advance Payment, Documentary Collection and
Forward Contract. Our wide network with International Banks facilitates our
customers to execute international trade transactions effectively and
efficiently without any hassles.
Payment Solutions
Siddhartha Bank offers
various alternative payment solutions to facilitate its customers. The various
alternative payment solutions of the Bank are:
Internet banking (iConnect)
The Customers can view
account information, transfer funds and make payments with ease from anywhere
by using the Bank’s iConnect service.
Card Services
Siddhartha Bank offers
variety of card services to serve various requirements of its customers. It
offers, Debit Card, Credit Card, Student VISA Prepaid Card and
Domestic & International
Prepaid Card. With prepaid cards, customers can load money in their card and
use it for cash withdrawal or merchant payment, without the hassle of carrying
paper money or opening an account. Domestic VISA Prepaid Cards can be used in
nepal and India, whereas the International VISA Prepaid Card (Travel Cards) can
be used in any country of the world. VISA Prepaid Travel Card is designed
targeting customers who travel abroad as a replacement for Traveller's Check
and shortage of foreign currency. With Student VISA Prepaid Card the parents or
students themselves can load money in the card and use it for cash withdrawal
or merchant payments. Siddhartha Bank accepts withdrawal from all major payment
platforms like VISA, SCT, and China Union Pay
(CUP), national Payment network
( NPN), MasterCard, Diners Club,
Discover network, and JCB.
Mobile Banking (mConnect)
Through mConnect customers
can carry out the general banking transactions like balance inquiry, fund
transfer, mini bank statement, utility payment, recharge top up and merchant
payment using their mobile. Customers can use mConnect either through a web
based interface (using GPRS or 3G) or a simple text-messaging (SMS) interface.
SMS Alert Service
The SMS alert service will
inform the customers by sending SMS when account is debited or credited by NPR
1,000 or above.
Branchless Banking
"Sajilo Banking
Sewa" is a branchless banking initiative of Siddhartha Bank Limited, aimed
at enhancing access of financial services to people in rural parts of Nepal.
Initially started as a cash distribution program in collaboration with World
Food Programme (WFP), Sajilo Banking Sewa targets the large population of the country,
who are outside the banking net to provide basic financial services.
Siddhartha Bank- Hello
Paisa Sewa
Under Siddhartha Hello Paisa
Service, the customers can open mobile account and link it to their respective
Bank account. With the service, the customers can transfer funds from bank
account to mobile account and vice versa. The fund can be used for utility
payment, merchant payments as well as transferring fund to account of person
availing such services under Siddhartha Bank or other Banks associated with
Hello Paisa.
Siddhartha Bank Medical
Prepaid Card:
Useful for medical checkups
in Nepal and India, the card can be used by customers in hospitals as well as in
ATMs and POS machines. Since devised for medical purposes the transaction limit
for ATM/POS uses is slightly higher than other prepaid cards. Remittance The
Bank boasts an exclusive remittance payment portal named SBL remit, primarily
to serve the Nepalese workforce residing in foreign countries and to facilitate
local online payment solution throughout Nepal. The Bank has more than 2700
active payout locations throughout Nepal. In the pursuit to accomplish service
delivery excellence, the Bank has established full-fledged remittance Business
Unit (RBU), which is run by team of competent and experienced staff. rBU team
works dexterously 365 days with commitment to quality and value thereby providing
instant updates and solutions on any issues related to payment to ensure prompt
processing.
The Bank has made an
arrangement for separate full time dedicated Help Desk with toll free number.
At present, SBL remit has its presence is Saudi Arabia, Qatar, Kuwait, Bahrain,
Malaysia, UAE and Korea, Russia and India. In the near future, the Bank is
planning to cater the remittance service to the Nepalese Migrants from London,
Lebanon and Singapore. Siddhartha Bank has also launched its global brand SBL
remit. Siddhartha Bank is the first Nepali Bank to offer remittance service
globally from multiple corridors in collaboration with its overseas remittance partners.
Treasury
Operations
The Bank maintains a
full-fledged treasury department which has a state-of-the-art dealing room and
is an active player in the local interbank & foreign exchange market. The
Bank’s treasury department has three major desks; Money Market, Foreign
Exchange and Bullion (Gold & Silver). The Bank carries out money market
transactions in the local market including borrowing/lending, meeting statutory
requirements, investments in government securities etc. Similarly, fundamental
and technical analysis for forecasting the exchange rate of major currencies
including EURO, GBP, JPY, AUD etc as well as INR is carried out by the Bank along
with prompt and competitive pricing of exchange rates as allowed to be printed
by the NRB. The Bank deals in local as well as international markets via highly
secured online trading platforms as well as facilitates as a market maker for
bond market. The department also carries out spot and forward transactions for
sales/purchase of foreign currencies as per the requirement and selling gold
/silver to registered traders as per the guidelines of NRP
Other
Services
In addition to the aforementioned products,
the Bank provides a number of ancillary services such as Safe Deposit Locker
Facilities, Bancassurance, and Utility Bill Payments. The Bank offers safe
deposit lockers of different sizes which ensure safe keeping of our customers’
jewellery, important documents and other valuables. Through the Bank,
customers’ can pay their
NTC (Landline & Mobile)
Bills, Ncell Mobile Bills and pay Dish Home recharge fees.
Siddhartha
Mutual Fund
Siddhartha Bank Limited has
established a separate subsidiary unit, Siddhartha Capital Limited (SCL) for offering
investment products to its customers. The first investment product launched by
SCL is a mutual fund scheme named ‘Siddhartha Investment Growth Scheme – I’.
The scheme was a five years, closed end scheme with an objective of providing
regular and balanced return over the scheme period with focus on higher
possible capital appreciation at the end of the maturity. The scheme was open
to individuals, bank and financial institutions, investment companies, insurance
companies, merchant bankers, different funds such as pension funds, retirement
funds, and employee welfare funds, NRN's holding NRN certificate issued by
Government of Nepal, trusts, and other institutions etc.
2.8 SWOT Analysis
Figure 2.6: SWOT
Analysis of SBL
SWOT
analysis helps us to know the internal factor affecting organization i.e.
strength and weakness and the external factor affecting organization i.e.
opportunities and threats.
CHAPTER THREE
3. ACTIVITIES UNDERTAKEN AND ANALYSIS OF JOB PERFORMED
The eight weeks internship
at Siddhartha Bank Ltd, Hattisar Head office in Payment Solutions Department is
found quite different than any other previous experiences. That was a really an
extraordinary opportunity to participate in the real life organizational
setting outside the classrooms and to study the overall management and business
skill. Every experience at Siddhartha Bank are so precious balance the
staggering moment in career building process.
3.1 Activities undertaken in the organization
The
internship in Payment Solution Department of Siddhartha Bank Ltd. provides an
opportunity to understand the means of modern banking system like different 15 card
related products, internet banking, mobile banking, branchless banking and so
many other means of modern banking services. The objective of PSD is to
facilitate to customer by providing the modern and easy banking services
through electronics means of payment (e-payment) various types of debit card,
prepaid card and credit cards, mobile banking and internet baking, and also
make accessible the banking services to the people who are really back from the
banking services living remote and village areas of Nepal. At present PSD of SBL is
performing following activities:
i.
Issuing the debit card, credit card and prepaid card and
their operation
ii.
ATMs monitoring and its operation
iii.
Onus and offus card transaction settlement and
reconciliation.
iv.
Online payment (E-com payment such as SAT, GRE etc.)
v.
Operation and monitoring of mobile banking and internet
banking services.
vi.
All the operation of Branch less banking (BLB).
vii.
Credit card marketing
3.2 Roles/jobs performed in internship in payment solution department
a)
New debit card prepaid processing,
printing and processing from system.
b)
Debit card activation
c)
Pin reissue, card replacement, pin
reset of debit card and prepaid card from DCMS
d)
File transfer to ECS through SFTP
e)
iConnect and mConnect user
activation
f)
Debit card annual charge,
replacement charge, pin reissue fee, SMS alert and mConnect fee entry.
g)
Maintain the files for all the
transaction list, report and documents.
h)
Customer handling
i)
Settlement and reconciliation of
SCT and NPN network
j)
Reversal and dispute settlement of
SCT and NPN network,
k)
Reversal of onus card transaction
3.4 Roles
and jobs of interns’ supervisor
a)
Planning of the promotional campaigns for the whole year and
as per the requirement
b)
Planning, developing &
implementation of effective strategies for payment solution.
c)
Daily supervision of card transaction
whether there is fraud.
d)
Making and aware about risk
associated to the card fraud.
e)
Authorize the daily entry from
system.
f)
Guide and support on job
g)
Report to the DGM
h)
Planning for promotion of card
product specially the promotion of credit card.
i)
Responsible for all SBL banking.
j)
Keeping a constant watch on the market and designing
innovative card product.
k)
Regular auditing and revisiting the existing card transaction
and issuance.
CHAPTER FOUR
4. Conclusion and Lesson Learnt
4.1 Lesson Learnt
Some of the lessons learnt
during the internship period are:
a)
Team work is the better way to result best outcome only if
honesty, co-cooperativeness and caring attitude towards each other is
maintained.
b)
Need to carry the feeling of pride for working in the
organization where the job is.
c)
Working environment must be electrifying where employee can
gives their full effort to their work.
d) Some decisions will be
best when they are made on more practical way rather than if they are made by
sticking with principles and ethics.
e)
Growth opportunity, challenging task, motivational program,
and training are some major ways to increase employees’ efficiency and
effectiveness rather than high payoff and short working hour.
f)
Nerves-“employees” and hearts-“customers” are the key for any
organizations success.
4.2 Gap
between theory and practice
While doing the internship, I
experienced real working environment of the SBL. Whatever I learned through the
text I made a mental picture regarding the things, but after internship the
internee found complete difference between practice and theory. The major gaps
observed are as follows:
a)
Most of the decisions in banking operations are more
situational and practical rather than based on specific theoretical lesson we
learnt.
b)
The knowledge about use of various equipment like fax,
printer, scanner etc. and software programs are not covered by our course.
c)
The topic frequently we studied in our MBA i.e. planning,
performance evaluation, team work etc. are limited only in top level management.
4.3 Conclusion
During my eight weeks of
internship program it was different experience and exposure to the real work
scenario. I learnt a lot about the banking sector and banking operations, about
SBL. As a commercial bank the SBL has already earned the reputation of top
banking operation in Nepal. Though there is something wrong in recent years,
with a bulk of qualified and experienced human resource, SBL can exploit any
opportunity in the banking sector to resurrect from current market stand. Payment
Solution department of SBL has a very qualified and dedicated group of officers
and staffs who are always trying to provide the best service to the clients.
They always monitor the credit in different sectors and their position.
This eight weeks internship
is really a chance to socialize with people and found that people of SBL are
highly committed to serve the customers and deal with their issues. Just the
lacking is the best working environment that is still to create by SBL. During
this internship I got opportunity to observe, how people work in team and how
they put their synergized effort for better outcome. SBL is constantly
attempting to provide better and quality service to the customers. But there is
still long painstaking way to conquer to restore the stand they achieved few
years ago as severe cut throat competition is going in this sector.
Payment Solution
Department is one of the crucial part of the SBL where I got the chance to
gather knowledge how one commercial bank with its successful history and
scrambling to bound Nepalese market.
BIBLIOGRAPHY
Books
- Anthony Saunders and Marcia Million Cornett(2009,Third edition).Financial Market And Institutions,
The MacGraw –Hill Companies
- Kiran Thapa and Bharat Parajuli (2011) Financial Institutions & Markets,Januka Publication Pvt. Ltd
Reports
- 12th Annual Report of Siddhartha Bank Ltd.
Websites:
- http://www.siddharthabank.com
- http://bfr.nrb.org.np/List_Banks_n_Non_Banks.php
- http://www.businessdictionary.com/definition/bank.html#ixzz2Z2YvIJYn
- http://etymonline.com/?term=bank
- https://en.wikipedia.org/wiki/Bank
- http://www.nabilbank.com
- http://www.globalimebank.com/
- https://www.sc.com/np/en/
- http://laxmi.laxmibank.com/
- http://www.scribd.com/doc/31032046/A-Comparative-Analysis-on-Credit-Card-Fees-Charges-Documentation-and-Customer-satisfaction-of-The-City-Bank-Ltd
- http://en.wikipedia.org/wiki/History_of_banking
- http://nepalibankingsector.blogspot.com/2011/04/history-of-banking-in-nepal.htmlwww.rbb.com.np
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