GENERAL ACTIVITIES OF

LAXMI SUNRISE BANK LIMITED, BIRATNAGAR BRANCH

BIRATNAGAR MORANG, NEPAL

AN INTERNSHIP REPORT

Submitted to:
Office of Dean
Faculty of Business and Accountancy
Lincoln University College, Malaysia

Submitted by:
CHINTAMANI SAH
LUC Registration No.:- LC00016000139

in the partial fulfillment of the requirement for the degree of

Bachelor (Hons) in Business Administration (BBA)
Nepal Business College

Biratnagar, Nepal
August 26th 2023
CERTIFICATE FROM BANK
CERTIFICATE OF APPROVAL FROM COLLEGE
 DECLARATION
I declare that the internship report entitled “General Activities of Laxmi Sunrise Bank
Limited, Biratnagar Branch, Biratnagar, Nepal” submitted to Nepal Business College
affiliated to Lincoln University College which is my original work and done based on
learning during internship program for the partial fulfillment of the requirement of
Bachelor (Hons) in Business Administration (BBA). It is carried out under the guidance
of Mr. Mukesh Dulal and has not been submitted anywhere for the award of any other
degree or commercial purpose. In keeping with the ethical practice in reporting scientific
information, due acknowledgements have been made wherever the finding of others have
been cited.

Sincerely,

………………….
Chintamani Sah
LUC Reg. No.:- LC00016000139
Nepal Business College

iv
 ACKNOWLEDGEMENT
This report is an outcome of my continuous effort, dedication, guideline and support by
college management and practical learning from internship.
This report is prepared for partial fulfillment of requirement of Bachelor in Business
Administration (BBA) under Lincoln University College, program design team for such a
wonderful concept of internship.
I would like to thank Chairman of Nepal Business College, Dr. Bhesha Prasad Dhamala,
for his role to motivate and lead for internship. As well as role of Academic Director was
very admirable in this report so I would like to show my gratitude towards Prof Dr.
Vedraj Acharya. I would like to express my gratitude to my Managing Director Mr.
Deepak Koirala, Nepal Business College for his constant guidance, supervision and
feedbacks which enabled me to prepare a well-executed reports.
Special thanks go to Laxmi Sunrise Bank Limited, Biratnagar branch for choosing and
recommending me as an internee. I would like to express my warm appreciation to Mr.
Anwar Ali Branch Manager, Mrs. Aarti Karna CSD in-charge, Mr. Biblov Bista
Operation in-charge.
Further, I would like to thanks Mr. Mukesh Dulal and Mrs. Pinky Sharma my instructor,
for her guidance throughout the preparation of this report. At last I am grateful to all
those people who have helped me directly and indirectly during the internship period and
in the preparation of this report.

Thank you all.

Chintamani Sah
LUC Reg. No.:- LC00016000139
Nepal Business College

v
 EXECUTIVE SUMMARY
This report is all about the internship which is carried out at Laxmi Sunrise Bank Limited
on the topic named as “General Activities of Laxmi Sunrise Bank Limited”. In
addition, the bachelors (Hons) in Business Administration (BBA) program of Nepal
Business College of management affiliated to Lincoln University College; require
students undertake internship at the 8th semester. The internship report requires the
student to undergo the internship program is an organization for a period of 8 Weeks,
which should provide an opportunity to integrate and apply theory with management
practice.
The internship program aims to provide participants with a genuine organizational
experience, allowing them to understand the organization's mission and operations. By
applying theoretical knowledge to practical tasks, interns bridge the gap between
academia and management practice. Completing designated assignments culminates in a
comprehensive report benefiting both the organization and the college. This holistic
approach fosters experiential learning and meaningful contributions to the organization's
objectives.
This report is divided into five chapters. In the first chapter intern give details about the
background of the study, objectives, methodology, selection of the organization,
placement, duration, data collection and limitation of the study. Similarly, brief
introduction of the industry, evolution of industry and its classification in the second
chapter. Likewise, third chapter includes introduction of the company, its mission, vision,
objectives, board of directors, services offered, present situation, SWOT Analysis. In the
same way, analysis of activities done, and problem faced during internship was describe in
the fourth chapter. Lastly, the conclusion and lesson learnt was concluded. These chapters
are an observed, analyzed and use of secondary data for the preparation of report.

The internship was done in customer service department, Clearance and credit at the
branch office of Laxmi Sunrise Bank Limited, Biratnagar Branch. The involvement was
for the period of 8 weeks. The main objective of the internship is to get the practical
exposures of the theories that we studied in the college. The study is based on the
knowledge gained in different department about their operating activities and procedures‟
during internship over there.
vi
 TABLE OF CONTENTS
Title Page No.
Cover Page i
Certificate from Bank ii
Approval Letter iii
Declaration iv
Acknowledgement v
Executive Summary vi
Table of Contents vii
List of Table viii
List of Figure viii
List of Abbreviation ix
CHAPTER - ONE
INTRODUCTION xi
1.1 Background 1
1.2 Objectives of the Study 2
1.3 Methodology 2
1.3.1 Selection of the Organization 2
1.3.2 Placement 3
1.3.3 Duration 3
1.3.4 Data Collection 4
1.4 Limitations of the study 4
CHAPTER - TWO
BRIEF INTRODUCTION OF THE INDUSTRY 5
2.1 Introduction 6
2.2 Evolution of Banking Industry 6
2.2.1 Development of Banking Industry in Nepal 8
2.2.2 Current Situation 9
2.3 Classification of Bank 10
CHAPTER-THREE
INTRODUCTION OF THE ORGANIZATION 13

vii
 3.1 Profile of LSBL 14
3.1.1 Mission, Vision and Objectives 15
3.1.2 Board of Directors 16
3.1.3 Organization Structure of LSBL 17
3.2 Services offered 17
3.3 Present Situation of LSBL 20
3.4 SWOT Analysis of LSBL 21
CHAPTER-FOUR
ANALYSIS OF PERFORMED ACTIVITIES AND PROBLEM SOLVED 22
4.1 Introduction 24
4.2 Activities performed by the Intern 24
4.2.1 Customer Service department 25
4.2.2 Clearance Department 32
4.2.3 Credit Department 32
4.3 Problem faced by the intern 33
4.4 Solution of the problems by the intern 34
4.5 Observed Gap 34
CHAPTER-FIVE
CONCLUSION AND LESSON LEARNT 35
5.1 Conclusion 36
5.2 Lesson Learnt 37
5.3 Recommendation 39
REFERENCE 40

viii
 LIST OF TABLES
Title Page No.
Table No. 1.3.3 Duration of Internship 3
Table No. 2.2.2 Categories of Financial Institution 9
Table No. 2.3 List of Commercial Banks of Nepal 11
Table 3.1.2: Board of Directors of Laxmi Sunrise Bank 16
Table No. 3.2 (a) Interest Rates on Deposits 18
Table No. 3.2(b) Rates of Fixed Deposit on Laxmi Sunrise Bank 19

LIST OF FIGURES
Title Page No.
Figure No. 3.1.1 Core Value of Laxmi Sunrise Bank 16
Figure No. 3.1.3 Organization structure of LSBL (Biratnagar Branch) 17
Figure No. 4.2 Account Opening Procedure 26

ix
 List of Abbreviations
ABBS : Any Branch Banking Services
A/C : Account
AD : Anno Domini
ATM : Automated Teller Machine
BBA : Bachelor of Business Administration
BoD : Board of Directors
CDMA : Code Division Multiple Access
CEO : Chief Executive Officer
CSD : Credit Service Department
E-banking : Electronic banking
EBEP : Easy Buy Easy Pay
FD : Fixed Deposit
IT : Information Technology
KYC : Know Your Customer
LSBL : Laxmi Sunrise Bank Limited
Ltd : Limited
LU : Lincoln University
NBC : Nepal Business College
NRB : Nepal Rastra Bank
QR : Quick Response
SMS : Short Message Service
S.N. : Serial Number
SWOT : Strengths, Weaknesses, Opportunities and Threats
Reg No : Registration Number

x
CHAPTER - ONE
INTRODUCTION
1.1 Background
An internship is a form of experiential learning that integrates knowledge and theory
learned in the class room with practical application. It is an opportunity to combine and
integrate theoretical knowledge into career related experience. Internship has crucial
importance for students as it provides exposure in the organizational environment and
also develops individual skill to understand how to handle work related problem. It also
helps to develop interpersonal skills and enable to work under immense pressure. Nepal
Business College of management affiliated to Lincoln University College has set the
internship program as the partial fulfillment of Bachelor (Hons) in Business
Administration (BBA) in last semester where students involved as an intern in any
organization for 8 weeks and prepare a report based on their experience and involvement
in the real corporate business environment.
To fulfill the part of BBA program, Intern have chosen CSD, credit and clearance of
Laxmi Sunrise Bank Limited for internship is being a management student, extensive
knowledge of a financial intermediary is a must as it is the major mediator in the financial
market who works to provide financial services and ensure global out reach. Customer
service department is the department which deals with the customer of the bank for the
purpose of serving customer as a part of their service and it involves various activities
like opening an account to its closing, providing account statements as per customer‟s
demand, issuing and distributing ATM cards, Balance enquiry etc. The basic activities
carried out at CSD are customer counseling, account operations and distribution
activities, making and issuing cheque books etc.
The credit department is responsible for assessing the financial stability and risk of
individuals or businesses applying for credit. It determines credit limits, terms, and
interest rates, while also managing ongoing credit relationships and minimizing potential
financial risks. The clearance department is a segment within an organization, often in
sectors like finance, securities trading, or logistics, responsible for ensuring the smooth
and secure processing of transactions, documentation, and compliance procedures. The
basic activities carried out at clearance verifying the authenticity of transactions,
confirming the availability of funds or assets, and ensuring all necessary legal and
regulatory requirements are met.

1
1.2 Objectives of the Study
The main objectives of the study is to get better understanding of the overall banking
activities and assess contribution of Laxmi Sunrise Bank in overall economic
development. However, the other specific objectives are as follows:
 To be familiar with banking practices and procedures of various department of
the bank.
 To acquire learning as well as working experience and gain practical exposure
in the real-life working situation.

1.3 Methodology
This report has been prepared on the basis of eight weeks internship experience gained at
Customer Service Department, Credit Department and Clearance Department of Laxmi
Sunrise Bank Limited. Interaction with the staffs and the operational knowledge gained is
the major source of primary data for this study. Besides, the website of the bank, previous
internship reports and the bank‟s annual report are the sources of secondary data.
Following methodologies are used to study the organization:

1.3.1 Selection of the Organization

Organization selection of organization for internship program is always a crucial task.
Being a student who has specialized in financial courses in the eighth semester of BBA.
Intern had to select a financial institution which could help me broaden intern spectrum
of knowledge about the banking, business and financial sector. So, intern decided to
choose Laxmi Sunrise Bank Limited (Biratnagar Branch) for doing internship.
Intern thought that it would give me an opportunity to realize my theoretical knowledge
into practical field. In order to approach the bank the requirements were the
recommendation letter from the Nepal Business College, citizenship, marks sheets and
curriculum vitae. After screening intern CV by the authority of Human Resource
Department (Head Office) Intern was duly selected as an intern for its Biratnagar branch.
So Intern started working there for 8 weeks.

2
1.3.2 Placement
During the internship period the intern was placed under the CSD, Credit and Clearance
department at the Biratnagar Branch. Intern was required to handle all the activities of the
department under the guidance and supervision of the CSD staff and operation in charge.
The Eight Weeks internship really helped intern to develop interpersonal skills. The
intern was able to learn the bank culture, work environment and working procedure of
Laxmi Sunrise Bank Ltd. eight weeks of time is not sufficient to gather overall
knowledge of banking, but however these eight weeks of internship had really been
knowledgeable and fruitful for the intern to gain at least brief understanding of it. In
LSBL, throughout intern internship period, the intern was placed in Biratnagar Branch,
Customer service department (CSD), Credit department and Clearance department.

1.3.3 Duration
The duration of the internship period as designed by Lincoln University is eight weeks.
As per the requirement, the internship was carried out from 25th May, 2023 to 25st July,
2023 Laxmi Sunrise Bank Limited, Biratnagar. Therefore, to fulfill the requirement
criteria internship was done for eight-week period from 10am to 5pm on each working
day except for Friday. Regarding Friday, the time for internship is scheduled from 10 am
to 3 pm.The employees use to come at 9:30 A.M and work for late hours in the evening.
The placement and duration of work in each department is presented below.
Table No. 1.3.3 Duration of Internship
S.No. Department Duration

1. Customer Service Department 6 week

2. Credit Department 1 week
3. Clearance Department 1 week
Total 8 week

During the internship period the intern was placed in various departments like CSD,
credit department, and clearance department. The major task in customer service
department was to interact and solve the customer problems and queries. Intern was also
given to operate the system with certain restrictions. Intern got an opportunity to learn

3
many things by interacting with the customers and staffs too. Table 1.3.3 gives a
summary of tasks performed in Laxmi Sunrise Bank Limited during the internship.

1.3.4 Data Collection

The data collection help to assist in the preparation in the report and the sources are
mention below.
Primary sources: The primary sources are those which are collected a fresh and for the
first time. For this project, the data has been collected through direct interaction and
observation during the period of internship. The direct interface with the walk-in
customers, interaction with the staffs at different level of the bank is the primary sources
of data.
Secondary sources: The secondary sources are those which have already been collected
by someone else and which have been passed through the statistical process. For this
report the data has been collected through website of the organization, published reports
and journal which helped in preparation of the report.

1.4 Limitations of the study

It is obvious that there arise some kind of limitation in everything. The internee has found
certain limitations; here are some limitations of the study to be noted are as follows:
 Most companies hire interns at very cheap. Some of them even don‟t pay anything
at all. Some interns might have financial burden to manage the cost evolved
during internship.
 They do not provide the intern access to Finacle and instead need them to fill out
accounting opening papers, deposit slips, cheque books, and so on. Such exercises
will teach interns nothing.
 Due to the confidentiality maintain by the bank, information regarding customers
and clients was not available in detail.
 It does not give detail view of the overall functioning of the bank since most of
the information is collected through personal experience and observation.

4
 CHAPTER - TWO
BRIEF INTRODUCTION OF THE INDUSTRY
2.1 Introduction
A bank is a financial institution that accepts deposits from the public and creates credit.
Lending activities can be performed either directly or indirectly through capital markets.
It provides a great variety of financial service. The bank hold money on behalf of
customers, which is payable on demand, by withdrawal. Banks use the money they hold
to finance loans, which they make to businesses and individuals to pay for operations,
mortgages, education expenses, and any number of other things. Due to their importance
in the financial stability of a country, banks are highly regulated in most countries. Most
nations have institutionalized a system known as fractional reserve banking under which
banks hold liquid assets equal to only a portion of their current liabilities. In addition to
other regulations intended to ensure liquidity, banks are generally subject to minimum
capital requirements based on an international set of capital standards, known as the
Basel Accords (Bhandari A. , 2014).
According to shorter oxford English dictionary," A bank is an establishment for the
custody of money; receive from or on behalf of each customer. Essential duty is to pay
their draft on each profit area from its use of the money left unemployed by them."

As per NRB Act 2002- “Bank is a financial institution, which provides financial services
that may be in the form of accepting deposits, advancing loan, providing necessary
technical advices, dealing over foreign currencies, remitting funds, etc.”

Banking sector plays an important role in the economy development of the country.
Commercials banks are one of the vital aspects of this sector, which deals in the process
of channelizing the available resources in the needed sectors. It is the intermediary
between the deficit and surplus sector of financial resources.

2.2 Evolution of Banking Industry

The evolution of banking industry had started a long time ago, during ancient times. The
history of banking is closely related to history of money. As a society became more
civilized, the needs for more efficient methods for barter were developed organically.
Most origins of the money can be traced back to building of large structures such as
temples or large undertaking by leaders such as wars. The concept of an “I owe you”
(IOU) preceded the idea of paper cheque by several thousand years. The term „Bank‟ is

6
derived from the Latin word „bancus‟, Italian word „ banca‟, French word „banque‟,
which means „a bench‟ and German word „bank‟ which mean Joint stock company. The
early bankers were the jews in Lambardy, transacted third business at benches in the
market palace. When they were unable to meet their liabilities, the depositors used to
break their benches and the term bankrupted was derived.
The very first banks were probably the religious temples of the ancient world where gold
were stored. Their owners justly felt that temples were the safest places to store their gold
as they were constantly attended, well-built and were sacred, thus thieves would be
deterred. There are extant records of loans from the 18th century BC in Babylon, that
were made by temple priests to merchants. Ancient Greece holds further evidence of
banking. Greek temples as well as private and civic entities conducted financial
transactions such as loans, deposits, currency exchange and validation of coinage.
Interestingly, there is evidence of tax on credit, where by in return for a payment from a
client, a money lender in one Greek part would write a credit note from the client who
could “cash” the note in another city, saving the client the danger of carting coinage with
him on his journey (Bhandari & Bista, 2022/2023).

Ancient Rome perfected the administrative aspect of banking and saw greater regulation
of financial institution and financial practices. Charging interest on loan and paying
interest on deposits become more common. Bank of Venice established in 1157 was the
first commercial bank in the world. Originally, it was not a bank in real sense being
simply an office for the transfer of the public debt. Subsequently, the Bank of Barcelona
(1401) and Bank of Geneva (1407) were established. The „Bank of England‟ first English
Bank, was established in 1694 A.D. The ancestors of modern-day banks have been
attributed to the merchants, the goldsmiths and the moneylenders. The bank of Venice
and the Bank of Genoa continued to operate until the end of eighteen century. With the
expansion of commercial activities in Northern Europe there sprang up a number of
private banking houses in Europe and slowly it spread throughout the world. In Nepal,
modern banking starts with the establishment of Nepal Bank Limited (Bhandari & Bista,
2022/2023).

7
2.2.1 Development of Banking Industry in Nepal
In context of Nepal, due to lack of sufficient historical records and data about banking
industry, it is very difficult task to trace the history of banking systems in Nepal in
chronological order. The history of banking in Nepal is believed to be started from the
time of Prime Minister Ranoddip Singh in 1877 A.D. He introduced many financial and
economic reforms. The Tejarath Adda was established at that time of PM Ranoddip
Singh and its basic purpose was to provide credit facilities to the general public at a very
concessional interest rate. The Tejarath Adda disbursed credit to the people based on
collateral of gold and silver. All employees of government were also eligible for this type
of loan, which was settled by deducting from their salary. Tejarath Adda extended credit
only but it did not accept deposits from the public. Later, Tejarath was replaced by the
first commercial bank “Nepal bank limited” in 1937 A.D. which was founded by Judda
Samsher. It was the first bank of Nepal established with a capital of 10 million rupees. Its
main function was to provide loans and accept deposits. To regulate banking sector of
Nepal “Nepal Rastriya Bank” was established as a central bank in 1956 A.D under NRB
Act 1955. This bank was completely owned by government and it started to issue notes
on behalf of government from 2016 B.S. Rastriya Banijya Bank was established in 1966
A.D. under the RBB Act as the second commercial bank of Nepal (Gyan, 2022).

After the establishment of RBB several commercial banks have been established in
sequence. The establishment of these two commercial banks has a tremendous impact on
the economy. As the agriculture is the basic occupation of major Nepalese, to upgrade the
living standard of farmers separate Agricultural Development Bank was established in
1968 A.D. This is the first institution in agricultural financing.
To operate all commercial banks uniformly single act, Commercial Bank Act 1975 was
enacted. In 1985, Nepal Government established five rural development banks under 9
controls of NRB to promote rural sector business and to provide easy access to rural
people towards FI. With the aim to provide quality-banking service, enhance the
efficiency and healthy competition, foreign investment and new technology in banking
sector was introduced. Nepal Arab Bank, the first joint venture bank of Nepal was
established in 1984. The bank was the outcome of joint venture with Dubai Bank Limited
of United Arab Emirates. The footstep of this bank was followed by Nepal Indosuez
8
Bank a joint venture bank with a Bank of Paris in 1986 and later other joint venture banks
are established in Nepal. These commercial banks have played a very significant role in
creating banking habit among the people, widening area, and business communities and
the government in various ways. In recent year NRB had provided merger, acquisition
policy and financial institutions have merged and become one from two, and even one
from three and many of financial institutions are in pipeline of merging. Now there are
many banks and financial companies in the country (NRB, 2023).

2.2.2 Current Situation

In the context of present situation there is tough competition for banking industry. The
overall competitions have been increased over the gap of time. As, we know the economy
of Nepal is very small but number of service provider high. Due to this reason many
banking industry is facing lots of problem. Some are in the position of insolvent and
some are in the process of merger .The political instability is creating lots of problem in
their operation. Few banks are making their presence in market by providing security and
confidence to customer. Banking industry is failing to achieve their respected target. The
NRB has classified the financial institutions into “A” “B” “C” “D” categories on the basis
of the minimum paid-up capital and provide the suitable license to the bank or financial
institution. Group “A” is for Commercial Bank. “B” is for Development Bank, “C” is for
the Financial Institutions and “D” is for the Micro Finance Development Banks. These
days, modernized banking services such as the banking software, ATM, E-banking,
Mobile Banking, Debit Card, Credit Card, Prepaid Card etc. are available in the banking
system in Nepal (NRB, 2023).
Table No. 2.2.2 Categories of Financial Institution
S.No. Types of Financial Institutions Class Number Number of Branches
1. Commercial Bank A 20 5,049
2. Development Bank B 17 1,128
3. Finance Companies C 17 284
4. Micro Finance D 57 5,128
5. Infrastructure Development Bank - 1
Total 112 11,589
Source: (NRB, 2023)
9
2.3 Classification of Bank
A single institution cannot fulfill all the services demanded by customers. So, NRB has
classified different banking and financial institutions broadly into four classes as Class A,
Class B, Class C and Class D. Different classes are classified on the basis of capital
requirement for their establishment. Such as central bank, commercial bank,
Development Bank, Finance Companies and Micro Finance.
a. Central Bank: Central bank is the bank of government of any country. It is also called
bank of all the banks of the country. It acts as a guardian of all banking institution. It is
the set up to make sound monetary policy. Its focus is on monetary stability. It controls
banking sector by regulation, persuasion and market operation. Bank of England- 1964 is
the first central bank of the world. Nepal Rastra Bank is the first and only central bank of
Nepal established in 2013 B.S. In brief central bank performs:
 Note issue
 Regulation, control and supervision of banking sectors
 Acting as a government bank
 Credit control function
 Lender to the last resort
 Publication of monetary and financial information
b. Commercial Banks:
The main aim of a commercial bank is to earn profit like any other business entity. It
lends a certain percentage of the cash lying in deposits on higher interest rate than it pays
on such deposits. The difference of interest on deposits received and loans advanced are
the main source of its income. Commercial banks represent the most important financial
intermediary when measured by the total assets. In modern times, commercial banks are
concentrated in their activities of fulfilling the financial need of their customer. Thus
commercial banks are simply a business firm engaged in financial intermediation as well
as perform additional functions under strict supervision and control of the central bank.
In the context of Nepal the first Commercial bank, “Nepal Bank Limited” was established
in 1937 A.D. and the second “Rastriya Banijya Bank” was established in 1966 A.D.
Nepal has opened its door to foreign commercial banks in the kingdom almost a decade
back. As the country followed economic liberalization, there was massive entrance of

10
foreign banks in Nepal. Consequently, Nepal Arab Bank was established in 1985 A.D.
similarly the Nepal Indosuez Bank was established as a joint venture between Nepal and
France in1986 A.D. the legitimate entry of foreign commercial banks with full-fledged
banking functions led to rapid growth of banking system. After 1990 economic
liberalization policy obtained by the government (Singh, Basuki, & Setiawan, 2021). In
Nepal there are operating 20 commercial banks, which in shown table below:
Table No. 2.3 List of Commercial Banks of Nepal
S.No. Name of the Bank Year of Establishment
(A.D.)
1. Nepal Bank Limited 1937/11/15
2. Agriculture Development Bank Limited 1968/01/21
3 Rastriya Banijya Bank Limited 1966/01/23
4. Nabil Bank Limited 1984/07/12
5. Nepal Investment Mega Bank Limited 2023/01/11
6. Standard Chartered Bank 1987/01/30
7. Himalyan Bank Limited 1993/01/18
8. Nepal SBI Bank Limited 1992/07/17
9. Everest Bank Limited 1994
10. Kumari Bank Limited 2001
11. Laxmi Sunrise Bank Limited 2023/07/14
12. Citizens Bank International Limited 2007/04/20
13. Prime Commercial Bank Limited 2007/09/24
14. Sanima Bank Limited 2004/12/06
15. Machhapuchhre Bank Limited 2000/09/07
16. NIC Asia Bank Limited 1998
17. Global IME Bank Limited 2023/01/09
18. NMB Bank Limited 2008
19. Prabhu Bank Limited 2023/01/10
20. Siddhartha Bank Limited 2002
Source: (NRB, 2023)

11
c. Development Banks: Development bank is bank which facilitates the economic sector
such as industrial, agricultural and rural etc. by providing capital and technical assistance
for their development is known as development bank. It is the financial institution
dedicated to found new and upcoming business and economic development project by
providing equity and/ or loan capital (Khandelwal , 2021).

d. Finance Companies: Finance companies provide loans to the risky customers whom
commercial banks find too risky to provide loan. They are engineers of risk. They convert
risk into potential business opportunities.

e. Micro-Finance Companies: Micro-finance companies are sources of financial

services for entrepreneurs and small businesses lacking access to banking and related
services. The two main mechanisms for the delivery of financial services to such clients
are (1) relationship based banking for individual entrepreneurs and small businesses; and
(2) group-based models, where several entrepreneurs come together to apply for loans
and other services as a group.

12
 CHAPTER-THREE
INTRODUCTION OF THE ORGANIZATION
3.1 Profile of LSBL
Laxmi Bank, one of the leading commercial bank of Nepal, was incorporated in April
2002 as the 16th commercial bank in the country with Rs. 15 billion from Birgunj. After
merged with HISEF finance company at 2004, Again and again merge with Laxmi Bank
Limited and Sunrise Bank Limited have completed the merger process and will start joint
operation from July 14, 2023.The final agreement for the merger was reached on June 23.
The Nepal Rastra Bank provided the final approval for the merger on July 7. The Office
of the Company Registrar had granted final approval for the merger on July 9. The
Securities Board of Nepal provided approval on July 10.bank has widened its services
and operation. Its corporate office is located at Hattisar, Kathmandu.
With the completion of all processes, the joint transaction of the two banks will start in
the name of “Laxmi Sunrise Bank Limited”. Ajay Bikram Shah, chief executive officer
of LBL, will hold the position of the CEO of the newly formed entity. Banking services
from all branches will be suspended for data migration and other purposes on July 12 and
13. The two banks had gone into merger with a swap ration of 1:1. Currently, Laxmi
Bank has capital of Rs 11 billion 55 crores, while Sunrise Bank has paid-up capital of
Rs10 billion 11 crores. After the merger, the total capital will increase to more than Rs 21
billion 66 crores. This means that every hundred shares of Laxmi Bank and Sunrise Bank
will convert into 100 shares of the new bank formed after merger. Laxmi Sunrise bank, as
a pioneer in introducing many innovative products and marketing concepts in the
domestic banking sector, represents a milestone in the banking history of Nepal as it
started an era in modern with customer satisfaction measured as a focal objective while
doing business (Republica , 2023).
Laxmi Sunrise Bank today offers the widest range of personal banking solutions and is a
tough leader in the retail banking space. Apart from a strong technology that supports the
Bank‟s electronic service delivery systems such as the internet banking, mobile banking
(mobile money) and ATMs. LSBL continues to increase its distribution network in a
strategic manner and currently has 284 branches, 335 ATMs, 5 Hospital service counter,
28 Extension counter and 140 Branchless Banking. Due to strong information
technology, high standards of corporate governance, innovation and prudential risk
management LSBL have proven its superiority amongst other (Banks Nepal, 2023).

14
3.1.1 Mission, Vision and Objectives
Mission
To expand physically and digitally to allow customers to access us through the channel of
their choice and leverage technology to help make banking smart, simple and secure. We
believe in responsible banking and adopt high standards of governance, transparency,
ethics and integrity across the company.

Vision
To the Bank of choice for a growing, vibrant Nepal – reaching and enriching households,
businesses and communities.

Objective
 To explore new avenues for growth and profitability
 To continue to develop products and services that would reduce cost of funds
 To develop a customer oriented service culture with special emphasis on customer
care and convenience
 To increase the market share by following a disciplined growth strategy
 To leverage the technology platform and open scalable systems to achieve cost-
effective operations, efficient MIS, improve delivery capability and high service
standards
 To develop innovative product and service that would attract targeted customers
and market segments
 To maintain a high quality asset portfolio to achieve strong and sustainable
returns and to continuously build shareholders value

Core Values
The core values lets the institute, customers and the communities know what they serve,
who they really are and the principles by which they pledged to conduct business. In
essence, the bank believes that the success can only be reaped by living their core values
and principles they are- Responsible, Teamwork, Progressive, Explores and
Relationships.

15
 Source: (LSBL, 2023)
Figure No. 3.1.1 Core Value of Laxmi Sunrise Bank

3.1.2 Board of Directors

The Board of Directors, a highly skilled and forward-thinking group of people, is in
charge of running the bank. This group of people is in charge of formulating plans,
making decisions about policy, and giving the management team guidance. They have the
greatest level of decision-making power within the bank, and they oversee how the
company is run. After the merger, a 7-member board of directors will be formed,
consisting of 4 members from Laxmi Bank and 3 members from Sunrise Bank. Raman
Nepal, the current chairman of Laxmi Bank, will be elected as the chairman of Laxmi
Sunrise Bank after the integrated transaction. The current Board of Directors is composed
of individuals as listed:
Table 3.1.2: Board of Directors of Laxmi Sunrise Bank
S.No. Name of Directors Designation
1 Mr. Motilal Dugar Chairman
2 Mr. Ajay Bahadur Shah Chief Executive Officer (CEO)
3 Dr. Manish Thapa Director
4 Mrs. Swati Rungta Director
5 Mrs. Vidya Basnet Independent Director
6 Er. Bachraj Tated Director
7 Mr. Malchand Dugar Director
Source: (LSBL, 2023)

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3.1.3 Organization Structure of LSBL
Organization structure has evolved over a number of years in order to perform the various
roles of the bank and also provide the service efficiently and effectively. Banks are
usually organized according to the functions they perform to the extent possible so that
the bank can run smoothly. So LSBL organization structure looks like the head office is
in Hattisar, Kathmandu whereas BOD is responsible for making policy and guidance to
the management and government nominates all the board members which includes
chairman and all the executive power is in CEO.
Also, the organization structure of LSBL (Biratnagar Branch) is as follows:

Loan

Administration CSD

Branch Manager

Remittance

Assistant Manager
Teller 1
ECC

Teller 2
Counter

Teller 3

Source: (LSBL, 2023)

Figure No. 3.1.3 Organization structure of LSBL (Biratnagar Branch)

3.2 Services offered

Laxmi Sunrise Bank offers a wide range of products that caters to customer‟s
requirement. Laxmi Sunrise Bank Ltd brings the convenience of networked
branches/ATMs and facility of E-channels like Internet, and SMS Banking. In simple
words, Laxmi Sunrise Bank Ltd brings banking at doorstep. The products and services

17
provided by customer service department of Laxmi Sunrise Bank have various product
and services some of them are categorized as below:

A. Saving Deposits
There are number of saving accounts as per the customers‟ requirements. Different types
of saving account are targeted for different customers and of different requirement. Types
of saving accounts are as follows:
Table No. 3.2 (a) Interest Rates on Deposits
S. No. Saving Deposit % per Annum
1 General Saving 6%
2 Basic Savings 5.4%
3 Payroll saving 6.4%
4 Remittance Savings 8.4%
5 Premium Savings 7.4%
6 Sunaulo Bachat 6%
7 Shubha Laxmi Savings 6.5%
8 Shakti Bachat 6.5%
9 Orange Savings Plus 7%
10 Super women saving 6%
11 Green saving 7.4%
Source: (LSBL, 2023)

B. Fixed deposits
Laxmi Sunrise Bank Ltd has introduced several schemes of Fixed Deposits in order to
cater the needs of valued depositors. It offers attractive rates of varied maturities ranging
from three months to two years. This type of deposit usually offers the highest interest
rate.

18
Table No. 3.2(b) Rates of Fixed Deposit on Laxmi Sunrise Bank
Fixed Deposit Rates per Annum
Duration Institutions Personal Personal Remittance
3 Months- 6 Months - 9.99 10.99
6 Months – 5 years 7.99 9.99 10.99
Bids (6 Months-5 years) 8.49 - -
Recurring Deposit (up to 5 - 9.99 -
years)
Source: (LSBL, 2023)
C. Mobile Banking and Online Banking Services
Laxmi Sunrise Bank has been providing various online banking and mobile banking
services to the customers. Online banking customers can have various types of benefits
like one can see their accounts balance online or from mobile there are various benefits of
using these services some of the benefits of using online banking and mobile banking are
as follows:
 Transaction: Fund Transfer, Credit Card Payment, Shopping, Landline Bill
Payment, Postpaid Bill Payment, Recharge: Ncell, NTC GSM Prepaid, NTC CDMA
Prepaid, E-Sewa etc.
 Request: Card Stop, Cheque Stop, Statement, Cheque Book, Pin Change
 General Enquiry: Online Account Balance, Last Five Transactions, Banking Hour,
Exchange Rate

D. Pay Utility Bill Online

Another service of Laxmi Sunrise Bank Ltd is Pay utility bill online from which
customers can pay general utility bill online. The bill payment of Nepal telecom can be
done from Laxmi Sunrise Bank counters Global Online and Laxmi Sunrise Mobile
Banking services. Telephone Service is one of many utilities that a person subscribes to
Payment of telephone service is generally done at counters of Telephone Company. This
requires a person to travel to the telephone company‟s office and wait in line for several
minutes, sometimes even an hour with this service Bank‟s customers can pay telephone
bills directly from their home or office through use of online banking and mobile banking

19
services. Currently, Laxmi Sunrise Bank has agreement with Nepal telecom (NT) so that
customers can easily pay their NT telephone bills online or by using mobile phones. In
addition the banks customers can also pay their NT telephone bills by using Laxmi
Sunrise Bank branch. All modes of utility bill payment are free of cost.

E. Any Branch Banking Service (ABBS)

This facility enables the customer of LSBL to deposit or withdraw money and acquire
information from any branch of LSBL. The networks of LSBL give the flexibility of
accessing the account from any of other branches across Nepal. All the branches are
interconnected with state of the art technologies. It is just like visiting LSBL branch
every time.

F. Safe Deposit Locker

When storing valuables that need to be protected against theft, fire, flood, tampering, or
other hazards, such as precious metals, gemstones, cash, marketable securities, vital
papers (such as wills, property titles, or birth certificates), computer data, or other items,
safe deposit boxes are often utilized. The safe deposit box has traditionally been the best
option for the secure storage of important items with the flexibility to store and remove as
necessary. Safe deposit boxes of various sizes are available at the bank. You can use
locker facilities at a few of the bank's branches.

3.3 Present Situation of LSBL

The integrated business of Laxmi Bank and Sunrise Bank will start from 14 July. After
the merger between the two banks, they are going to do integrated business under the
name of Laxmi Sunrise Bank from July 14 2023. A meeting of the Board of Directors of
Laxmi Sunrise Bank was held at the central office of Laxmi Bank and the business of
integrated business has been decided. It is said that the meeting of the board of directors
of Lakshmi Sunrise Bank will launch the integrated business.
22-year-old Laxmi Bank and 16-year-old Sunrise Bank merged on Friday and started
integrated business. Laxmi Bank and Sunrise Bank have merged with a swap ratio of 1:1.
That is, the shareholder who owns 100 shares of Sunrise Bank will get 100 shares of
Laxmi Bank after the merger.

20
A major force driving growth at Laxmi Sunrise Bank is its updated technology, which
remains key to continued progress. While integrating technology the bank continuously
strives to create a culture that exemplifies service excellence, simplification of the
interfaces between customers and the bank, while creating secure and safe transactional
platforms. LSBL is using Finacle version 10, the latest banking software. It values the
trust customers have placed on it, which is the rationale for investments in the right
technology and teams to protect customer information whilst also delivering faster and
more reliable services.
After the merger, The present capital structure of Laxmi Sunrise Bank will increase to Rs.
21.67 billion, deposits of Laxmi Sunrise Bank will reach 2 trillion 87 billion rupees and
disbursement of loans will reach 2 trillion 59 billion rupees. Also, the bank's branch
network will reach 284, 335 ATMs, 5 hospital service counters, 28 extension counters,
and 140 branchless banking locations as it strategically expands its distribution network.
After the merger, the number of employees of Laxmi Sunrise Bank will reach 3 thousand
170 people. At present 1 thousand 42 people are working in Laxmi and 1 thousand 517
people are working in Sunrise (Bank Nepal.com, 2023).

3.4 SWOT Analysis of LSBL

One of the most important techniques for analyzing an organization's internal and
external environment is the SWOT analysis. While the external environment presents
opportunities and challenges to the company, the internal environment reveals strengths
and shortcomings. As a result, the organization makes use of its strength to seize chances
and reduce risks. This tool is used by the majority of businesses to create plans, policies,
and strategies for achieving objectives. The SWOT analysis of Laxmi Sunrise Bank is
listed below: -
Strength:
Strength is the characteristics of the business or project that give it an advantage over
others. Some of the strength of Laxmi Sunrise Bank is given below.
 Wide spread network
 Large customer base
 Strong brand image
 Innovative and diversified product and services

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  Clearly defined Organizational Structure
 Team of Energetic and Dedicated Experts
 Customer centric Business Model

Weakness:
Similarly, weakness is the characteristics of the business that place the business or project
at a disadvantage relative to others. Some of the weakness of Laxmi Sunrise Bank is
given below.
 Unavailability of desired resources in market
 Limitation in core Banking System‟s capacity and large number of information
available in file only
 Other inherent limitations of control functions

Opportunities:
It is the elements in the environment that the business or project could exploit to its
advantage. Some of the opportunities of Laxmi Sunrise Bank are given below.
 Enhanced Customer Experience
 Expanding the product line
 Installation of update technology
 Venturing into strategic alliance in order to focus towards areas of knowledge
transfer, market development, generation of efficiency, etc.

Threats:
It is the elements in the environment that could cause trouble for the business or project.
Some of the threats of Laxmi Sunrise Bank are given below.
 Economic and political changes
 Fierce competition from new competitors
 Slow market growth
 Adverse change in trade policies and exchange rate

22
 CHAPTER-FOUR
ANALYSIS OF PERFORMED ACTIVITIES AND PROBLEM
SOLVED
4.1 Introduction
As an organization has numerous departments, LSBL also has various departments and
the activities are performed respectively according to their nature and function. During
internship period Intern got an opportunity to work in the Customer Service Department,
Clearance Department and credit Department of LSBL.
Customer service is the front desk of any organization. It is the place where customer
makes first interaction with the bank. CSD is the heart of the bank, which directly links
the customer of the bank. Customer service is a series of activities designed to enhance
the level of customer satisfaction. The image and prestige of the bank depends upon the
effective functioning of this department the staff placed in CSD should have rational
knowledge of banking so that they may be able to respond any question raised by
customers. Staffs in the CSD require is to have good communication and interpersonal
skills to maintain a good public relation. Attracting the potential customers and retaining
the existing customers are intended by CSD. Customer service is a series of activities
designed to enhance the level of customer satisfaction and these series of activities are
undertaken by the CSD Hence, all the activities of CSD are focused to customer
satisfaction.
Credit plays an important role in earning profit for a bank. If a person wants to take loan
from a bank, he needs to submit some necessary documents which are: trade license, TIN
certificate, bank statement, bank solvency certificate, property valuation certificate, stock
report, national ID card etc. Intern was given the responsibility to check the necessary
documents & to observe the process of sanctioning loans and advance.
Clearing is a management by which a bank can collect customers fund from one bank to
another through clearing house. Cheque, Pay Order (P.O), Demand Draft (D.D.)
Collection of amount of other banks on behalf of its customer are a basic function of a
Clearing Department (Karim, 2022).

4.2 Activities performed by the Intern

The following activities of Customer Service department, clearing department and credit
department were performed by the intern:

24
4.2.1 Customer Service department
A. Opening of an Account
There are various types of accounts like saving account, current account, fixed deposit
account and the intern helped in opening all kinds of account in LSBL during her
internship.
❖ Saving account
The saving account is individual account or general account. Cheque books are provided
free of charge in all savings account. Physical presence of the person who wants to open
an account is must. During the internship period the intern helped in opening 100 saving
accounts.
Requirement for opening saving accounts
 Original citizenship certificate
 1 copies of passport size photograph
 Latest electricity/water bill having address for the address verification.
 Specimen signature of account holder and lapche.
 He/she is also required to give his/her three generation details and nominee details
who will be the beneficiary of the account after the account holder's death.
 The accountholder should be self-present.
Procedure for opening Saving Account
1. Customer is required to fill up the account opening form containing all the
detailed information.
2. Customer submits the form at the CSD along with necessary documents attached
with it.
3. Documents and form is verified, details of customer are entered into the system
using software 'Finnacle 10'. This generates the account number, which provides
a unique identity to the customer.
4. The customer is given the account number and he/she can deposit the amount at
cash counter on the given account number.
5. Customers will be provided the cheque book and ATM card on request.
Customer needs to come the following day in order to collect cheque books. In
case of ATM cards, customer needs to come after 10-15 days

25
 6. Moreover, the customer can enjoy other facilities of the bank like Mobile
Banking facility, Internet Banking facility, Bank Statement on demand, balance
certificate on demand etc. To obtain each of these facilities, a separate form is
required to be filled.
7. Specimen Signature and photo of account holder is scanned and linked to
customer's account entered into the system. The documents are then approved by
Branch Manager and filed in an individual file and forwarded to the cabinet for
storing.
In case of Joint account:
 The party who has not filled the regular account opening form must fill up the
addendum
 No objection for anyone signature form must be filled.
In the case of the illiterate, intern obtain thumb impression in the specimen card.
Moreover, the customer is required to furnish photograph as well. No checkbook is
issued and the account holder is required to visit the bank in person for withdrawal.
Terms and conditions should be explained.

Fill up and submit Reject in case

Account Opening Form at CSD requirements are not
fulfilled

Entry of customer details into

database using 'finnacle'

Application generates unique Provide cheque book

account number and other facilities on
request

Customers deposit into the

given account number

Source: (LSBL, 2023)

Figure No. 4.2 Account Opening Procedure

26
❖ Opening fixed deposit account
In fixed account, customer keeps their amount into the bank for fixed period of time and
the interest rate of fixed deposit account is usually high LSBL interest rate for FD during
my internship was 9.99% per annum. FD is for some specific period of time like for
3months, 6 months, year as per customer choice. Interest income is paid on regular
interval and repayment of principal amount is done at maturity. Customer can withdraw
the accrued interest whenever he/she likes. A Fixed Deposit (FD) is opened after a
customer agrees on the interest rate provided and period of deposit with the bank. In case
of FD account, just an application form is to be filled out as the account holder must
normally have any account maintained with the bank. Bank issues a Fixed Deposit
Receipt as a proof of having accepted fixed deposit.
As an intern, the intern helped in opening fixed deposit accounts.
Procedure for opening FD
1. Fixed Account is opened similarly as the saving account. For opening a Fixed
Account, customers are required to open a saving account as well if they don't
have account at the bank.
2. Once the customer deposit the amount, the customer's Fixed Account is credited
by the amount deposited and it is linked with saving account by cash department.
3. FD account is opened by inputting all details like amount of deposit, number of
years/months, interest rate, name of depositor, date of opening etc.
4. Upon authorizing of the transaction by the Branch Manager, FD receipt is
generated with all of the above mentioned details and handed over to the
customer.
5. The bank keeps a copy of this receipt received by the applicant.
Upon maturity of the FD, the FD account is automatically closed by the system and
principal amount and interest earned is transferred to the saving account after deduction
of taxes.

27
B. Document verification
Intern performed document verification function by verifying whether the customer have
original citizenship document or not, whether the electricity bill is authentic and is up to
latest three months or not, whether the location address is as per electricity bill or not,
whether the photograph of person match with person or not and verified whether the form
was correctly filled up and all documents were attached or not.
C. Closing account
If the customer wants, he/she can close his/her bank account and terminate all the
transactions with the bank. The account closing process can be completed within a couple
of hours or even in couple of minutes depending upon the availability of all the
authorized personnel required, at their respective desk. Account is closed when a
customer moves away to another country or city; moves to another bank for better
interest rates and better services or for some other valid reasons. The intern not only
perform account opening function but also performed account closing function, intern
helped in closing the account of desired customers who wants to close their account in
LSBL.
Account Closing Procedure
1. The account holder fills an Account Closing Request Form and hands it over to
the CSD that verifies the customer's signature or photo and takes back the
remaining cheque leaves and ATM card.
2. The Account Closing Form is then forwarded to back office to make sure that
customer has no remaining obligation to the bank.
3. After the approval for closure is obtained from the back office, the account is
closed.
4. The remaining amount in the customer's account is paid back to the customer.

D. Preparation and distribution of Cheque Book

The customer who has just opened an account is provided with cheque book of 9 leaves.
Old customer can request for the cheque book as per their requirement by filling up the
cheque request slip specifying account holder's name, account number, signature and
number of cheque leaves required. Account holder can send others on his/her behalf for
receiving the cheque book. In urgent cases, cheque book is prepared instantly otherwise
28
customer needs to come the following day to collect cheque book. Once the cheque is
printed, the cheque book is made. Cheque details are recorded manually in the register,
which includes details like account holder's name, account number, cheque number, and
printed date and issued date. Once the customer signs in that register, they are provided
with the cheque book. The intern prepare the cheque by tearing the printed cheque and
make it a book by stapling and writing the name of accountholder and account number in
cheque book, along with making cheques intern maintain the record of cheque issued by
registering in cheque issuance register and also provided the cheque book to the customer
by maintaining records along with their verified signature, date, accountholder‟s name
and account number.
E. Providing Bank Statement
Statement of account of a customer is a summary of financial transactions occurring over
a period of time on a particular account. Such statements are produced yearly, quarterly,
monthly, weekly as and when the customer requests. These statements are delivered in
printed form. The intern provided bank statement to needed customers by filling up the
Statement Requisition Form specifying own name, account number, authorized signature
and the duration of statement required. Account holder can send others on his/her behalf
by providing signature on the Statement Requisition Form. If signature matches, bank
statement is printed and provided to customer. In case of company account the
application for bank statement with company stamp is required for providing bank
statement.
F. ATM Card Distribution
The customer of LSBL can enjoy the ATM facilities at cost of Rs. 1,499 which is the
charge up to 5 years. Through ATM card, customer can withdraw their cash without
entering into bank premises from any ATM terminal. ATM cards are sent by NPN
network to the head office and then forwarded to the respective branches. Customer
needs to wait for 10-15 days.
Customer is required to sign the ATM Acknowledgment Form. His/her signature and
face both are verified through “FINNACLE”. Then, a customer is provided with his/her
ATM card after he/she signs in the ATM register. Intern was involved in making ATM
letters and distributing ATM card. The previous ATM cards were replaced by new EMV

29
chips ATM card during the internship period of intern and the intern arranged almost 90
new ATM cards and their PIN number slips alphabetically and distributed to the
respective customer by calling them through telephone, maintained the record of ATM
card number, accountholders name and date in card issue book and provided card to
accountholder.
G. Form filling
Intern helped the customers to fill up the form. During the internship period various
customer came who find difficulty in filling form and intern helped those customer to fill
up their different form like account opening form, remittance form, debit card activation
form, mobile banking and filling up the deposit slip, Internet banking form along with
helping customers, the internee also filled the form in case of illiterate customer and
disable customers. Verified whether the form was correctly filled up and all documents
were attached or not. If any customer found difficulty in filling up the deposit slip, intern
was required to help him/her.
H. Document Uploading on Bank Server
Banks keep their documents in both printed and in digital form. There are procedures to
upload the documents into the bank server and the intern scanned and uploaded the
document to POL through finnacle software.
I. Handled Telephone Calls
CSD department is one of the busy departments of the bank. Telephone calls never stop
ringing, as the responsible staff those calls has to be received and dealt according to its
necessity. But when staff is busy, the intern received the call and important calls are
passed to other department and rest were handled by self by answering those calls and
answering their queries.
J. Recording Cheque book issue, debit card issue
There are various books maintained in bank which may be related to cheque book issue,
debit card issue, etc. These books are filled up by intern for future reference of the
activities. It is the duty of the intern to record the cheque book issued and debit card
issued every day.

30
K. Calling existing customer to update KYC
KYC forms of existing customers have to be updated as directed by NRB‟s latest
directive. So Intern called many customers to visit bank with necessary documents like
copy of citizenship, utility bill payment receipt and one passport size photo to update
their KYC and helped the customers to fill up KYC form and updated it.
L. Service counseling
Various forms of services provided by LSBL are e-banking, ATM, credit card, debit card,
loans, deposits, NTC Mobile Bill Payment, Premier Banking. CSD is responsible in
providing information about various services provided by the bank to the customer.
Intern helped in providing necessary information about these services to customers and
also helped employees in this work.
M. Account reactivation
If customers do not use their account in regular basis then account will bock
automatically for safety of the customer. As per the LSBL policy the concern Account
Holder should use minimum once in six months to maintain their account active. The
Intern helped filling up the Application of Dormant form, the KYC form along with
signature card that requires two photos and citizenship of particular account holder.
Intern also facilitates to verify the signature of particular account holder and reactive the
dormant account by using FINACLE system of bank.
N. Balance check
Laxmi Sunrise Bank Ltd facilitates their customers with balance check facilities through
CSD. It only provides information to the respective account holders about balance in their
account. If the account holder is unable to come then his /her representative can know the
balance by bringing the application written by account holder with his/her signature, if
signature matches then only information regarding balance will be provided. However,
the intern was no fully authorized to operate Finnacle Software. The intern checked
balance and helped in balance inquiry of the customer by proving the information related
to their balance and account state using that software.

31
4.2.2 Clearance Department
The clearing section is responsible to collect the cheques of the other banks which are
presented by the customers and then present in the Nepal Rastra bank for the clearing
process. They then collect the cheques of LSBL which are brought by other banks.
Role of the Intern:
 Checking cheque holder name, name of bank, name of branch, amount of money
in figure and amount weather similar or not.
 Keeping records of Cheque Clearing and Return on Cheque Clearing on its
respective Register
 Update insurance documents
 Updating IFF Format
 Bi Bi Ni writing
 Filing and documentation of corporate files
 Filing and documenting of LC files
 Preparing Loan deed and Offer Letter
 Making IPS and receiving clearing cheques

4.2.3 Credit Department

This is the department which the customers approach when they are in need of loans. The
department is responsible to analyze the customers who apply for the loans. They
evaluate the income flows of the client and also their collateral. This is one of the main
departments in any bank.
Role of the Intern:
 Filling form of loan application.
 Writing various document enclosed loan application.
 Directly interaction with borrower and loan officers to know their demand of
loan, their relationship with bank, their loan payment management, loan
approving process and recovery process.
 Contacting customer for additional information or update on their loan
application.

32
  Providing general administrative assistance to the loan department, such as filling,
copying and record-keeping.

4.3 Problem faced by the intern

Since every organization has to face some sort of problems or challenges there are no any
organizations which are free of problem or challenges. Various issues and problems
encounters while conducting their operations in any organization. During my eight-week
internship, Intern got the opportunity to understand, identify and solve some of the
problems faced by the bank. Here are some problems and difficulties that exist at the
Back-Office and CSD of the bank:
 The flow of the customers is always immense at the Biratnagar Branch. Being,
centrally located and having many businesses around increases the workload of
the staffs at the branch.
 The Space of the premises is quiet low as compared to the flow of the customers.
This made the place crowded at many times.
 The Biratnagar branch somehow looks understaffed. Too much responsibility lies
on the single person who faces a lot of problems during high traffic hours at the
bank.
 There was lack of adequate follow ups with the customer regarding matters such
as informing them to collect their ATMs, Cheque Books, etc
 There is a frequent technical problem in the ATM machines which has led to
multiple ATM complaints.
 The task of providing ATM Pins to the customers, handling storages and so on
increased workload at back office which delayed the other task that was to be
performed.
 It can be difficult for interns to manage a lot of paperwork and accurately conduct
transactions.

33
4.4 Solution of the problems by the intern
After analyzing the problems I tried my best to solve some of them to my best of abilities.
In addition to those, here are the possible solutions to those problems which could not be
solved from my level.
 Given the flow of the customers, the bank needs to rent more space in order to
ensure smooth and timely services to their clients.
 The branch needs to recruit additional staff to handle the workload of the
department. This will make sure every work being done by the staffs in their
respective area.
 Proper maintenance of the ATM machines needs to be done in order to insure less
complaint from the clients.
 Establishing some more branches would have helped in shifting the customer to
other branch surely helps to increase its reach to the customers at large.
 The CSD at Biratnagar branch is understaffed. Too much responsibility lies on the
single person who faces a lot of problems during high traffic hours at the bank
 Generally there were problem in remittance. The system was not working
properly and customers are unsatisfied.
4.5 Observed Gap
Knowledge gained from the academic courses seemed to be totally different in practice.
Although there is the huge gap between theory and practice, the concept of the theory is
essential in the workplace. Literature is the base to perform any task in the working
environment. Socio-Cultural factors, the interpersonal relationship seems to be simple in
theory but in the practice maintaining the interpersonal relationship and mixing with
society is a crucial task. Dealing with various kinds of customers effectively can be
sharpening through the practice. Depth knowledge from the book about customer
relationship cannot be as effective as that in practice.
Whenever intern learn something through the help of books, get a mental picture as to
what should be, but after the completion of the internship the intern found out that the
textbooks and the real world situation are two completely different matters because what
was learnt in the textbooks are not updated from time to time whereas in the real world
one has to be updated in order to compete and get success.

34
 CHAPTER-FIVE
CONCLUSION AND LESSON LEARNT
5.1 Conclusion
The banking landscape in Nepal is gearing up for increased competition, driven by
ongoing financial sector reforms and international standard-oriented changes. The
country has witnessed a surge in the number of banks, and their services have diversified
to encompass modern financial instruments. Given that the banking sector dominates the
Nepalese financial market, effective regulation and supervision are essential to bolster
competitiveness.

Among these financial institutions, Laxmi Sunrise Bank Ltd. emerges as a well-
established and prominent player in Nepal's banking sector. Its inception traces back to
the merger of Laxmi Bank and Sunrise Bank, resulting in the creation of a robust and
customer-centric entity. Presently, the bank is committed to expanding its footprint and
enhancing its services, making substantial contributions at both the local and national
levels. Laxmi Sunrise Bank adopts a customer-centric approach, providing a wide array
of modern banking services. With an extensive branch network and cutting-edge
technology integration, the bank ensures convenience and accessibility for its clientele
throughout Nepal.

The bank's commitment to social responsibility shines through its various Corporate
Social Responsibility (CSR) initiatives, extending its impact beyond the realm of
banking. These endeavors encompass areas such as education, healthcare, and
environmental conservation, reflecting Laxmi Sunrise Bank's dedication to creating
positive societal change. The bank plays a pivotal role in Nepal's economic landscape by
offering financial services that bolster businesses, individuals, and institutions alike.
Through the provision of loans, credit facilities, and a range of banking solutions, Laxmi
Sunrise Bank contributes to economic growth, stability, and the generation of
employment opportunities within the nation.

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5.2 Lesson Learnt
The intern found this bank is the organization of effective management, well trained,
experienced and competent officials, establishing with the aim of being the leading bank
known for its excellent service. The bank is achieving high and progressive market value
in its customer share. But the bank has some problems in executing its strategies and
extending in their product line since there is frequent change in rules and regulations,
foreign remittance, competition in the market is increasing.

Working in real life (Bank) is not an easy task. It requires high dedication, commitment,
and discipline as a single carelessness hampers the overall performance of the
organization. The intern is also able to grasp various new knowledge as well as the
practical implications of theoretical knowledge after the eight weeks internship exposure.

During the period of internship at Laxmi Sunrise Bank, the interne was cooperatively
guided by all the staffs for gaining in-depth banking knowledge. The learning
environment of Laxmi Sunrise Bank was pleasant and outstanding. Therefore, the major
lessons that are learned during internship are:

 Good communication skills:

Interaction with the customer was a perquisite while working in the CSD department.
Communication about the products and services to the customers and dealing with
their queries enhanced the communication skills of intern in best way. The good
communication skills will surely help intern in every aspect of career.

 Real time learning experience:

The responsibilities and jobs assigned during the internship helped to gain better
insight on the practical level. While working as an intern for 8 Weeks in LSBL, the
intern analyzed most of the theoretical knowledge learnt in Bachelor Degree being
practically implemented in the work place. The marketing concept of customer
focused strategy, accounting concept, computer applications and many other
management theories/concepts were being applied practically.

37
 Relationship building:
Customer relationship must be retained by bank. This relationship was strongly built
by interacting with the customers. Friendly terms were maintained so that attachment
to developed with the staffs and bank as well. The art to maintain relationship with
customer was learnt by internee by effectively handling customer with politeness and
responsiveness.

 Time Management and handling pressure

Management of time while dealing with the customers was very important.
Completion of the tasks assigned within time a speculated time turned out to be a
vital strength. The intern learnt to manage time and pressure in the duration of 8
Weeks of internship. The intern had to manage college timing as well as office timing
so the management of the time was the major thing that the internee learnt. Another
main thing internee learnt was how to finish more work in less time how to manage
work and how to handle pressure at workplace.
 Energy determination and work rate
The determination to learn more has always been present due to which the eagerness
to learning new things and working accordingly in various departments has never
faded away. The internee learnt to increase work rate and also to do multi task at a
time.

 Confidence level boost up

The tenure of eight weeks of internship definitely boost up the confidence level
internee. Nervousness often hampers the work performance whereas over confidence
may also lead to failure, maintaining a required level of confidence while performing
is required which is learnt by intern.
 Knowledge about the organizational environment and work culture
The interns have been able to gain experience and knowledge about the
organizational environment and work culture of LSBL. Coping with the organization
environment and culture is must in order to understand it and to perform in it during
internship intern got familiar with LSBL environment and culture.

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5.3 Recommendation
The study drew some recommendations to improve the present situation of Laxmi
Sunrise Bank Limited. After detail analysis some suggestions have been recommended
on the basis of major finding to improve the bank.
 The token machine inside bank should be repaired and maintained.
 Need to deal with different types of customer with heterogeneous needs and
desire.
 Bank should try to reduce customer complain about ATM problem and M-
banking services etc.
 It would be better if LSBL provide information about career opportunities for the
youngsters by vacancies and internship etc. It will help students to their career
development and also increase the positive image of the bank.
 The process of taking customer‟s feedback and responses will help the bank to
fulfill the gap between service provider (bank) and the customer expectation. So
LSBL must focus on customer‟s viewpoint in order to satisfy the needs of the
customer.

39
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