Analysis on Remitance Servises

ANALYSIS ON REMITANCE SERVISES OF HIMALAYAN BANK LIMITEDAn Internship Report Submitted by: Submitted to: Office of the Dean Faculty of Management Submitted in Partial fulfillment of the course requirement for the degree of Bachelors in Business Administration (BBA) 1 Campus Chief Name: Signature: _________ Date: Acknowledgement This report has been prepared as a Partial fulfillment of the course requirement for the degree of Bachelors in Business Administration (BBA).The primary objective of this case study is to analyze the Remittance service of Himalayan Bank Limited situated at Thamel, Kathmandu Nepal. I would not be able to justify my work without acknowledging the staffs who have contributed significantly for the completion of this report. 2 First of all I would like to thank Mr.Ishwor Karki (HR manager) for providing me the opportunity to work in their prestigious organization as an intern. I would like to extend my sincere thanks to all the staff of remittance promotion department especially Ms. Supridi, Mr. Manish Raj Pant, for there help and support. I would also like to thank Mr. Manoj D Shrestha, for providing me the information. At last, I thank once again to the entire member and the organization that have supported me for the completion of my intern. TABLE OF CONTENT ABSTRACT ABBREVIATION CHAPTER I. INTRODUCTION 1.1 1.2 1.3 Placement Duration of internship Activities performed Background Objectives Methodology Organization selection 3 1.4 Limitation CHAPTER II. 2.1 Introductions to Banking Sector 2.2 Development of Banking Industry in Nepal 2.3 Introduction to Commercial Banks 2.4 Functions of Commercial Banks 2.5 Introduction of the organization. 2.6 Capital structure 2.7 Equity participation CHAPTER III ABSTRACT This internship report, which is about the “Remittance service of Himalayan Bank Limited”, has been prepared for the partial fulfillment of the degree of Bachelor in business administration (BBA) for the finance and banking, which is one of the specialization course in BBA of Tribhuvan University. This report is divided into five chapters; the first chapter of the report contains the information regarding the study, I.e. its background, objective, methodology, and limitation. 4 ABBREVIATION 5 . students need to complete internship for the period of 8TH weeks and prepare the report for the fulfillment of degree. 6 . the internship course carries six credit hours. Introduction 1.1 Background The internship program has been designed by Tribhuvan University for the partial fulfillment of the degree of Bachelor in Business Administration (BBA) for the course of Finance and Banking. According to the designed pattern of this program. This report has been prepared as per the internship requirement of Tribhuvan University. As a part of the University curriculum. School of management in the partial fulfillment of BBA degree.1. students need to complete internship for the period of 8th weeks and prepare the report.1 1.4 Organization SelectionPlacement Duration Activities performed 7 .3 1.3. decision making. practices and policies. To understand the major functions along with products and services of commercial banks. newspapers. bulletin.e. The study also helps to gain professional experience in the real work environment.1. etc The main objectives of the study are as follow: To relate our theoretical understandings of management acquired till the period with the real work environment.2 Objective of the study The main objective of the study/internship program is to relate the theoretical knowledge with practical one.3. interview. the other part of the objectives is to develop internee’s skill on communication. websites.2 1.3 Methodology According to the designed patterned of this program. 1.3. Beside this. To understand the general banking activities. To study and analyze working system of the various departments of the bank and come up with the list of strengths and weaknesses. confidence buildup. booklet. The report is prepared by using the information that is obtained from different sources i. and annual report of HBL.3. 1. I choose Himalayan Bank Limited to work as an intern. so I could collect and study all the possible details about the remittance transfer. Placement Regarding the placement. Activities Performed in the organization Himalayan Bank Limited is one of the major financial intermediaries whose primary function is the transfer of monetary resources from the savers to the users. I stayed at the Trade Finance department for 2 days only. Letter of credit department. I dropped my Curriculum-Vitae at different banks. which helped me to get a chance to work as an internee in one of the best banks in the country. Due to lack of the time. I was first placed at the customer service department. Duration The duration of internship period has been defined for eight weeks by Tribhuvan University. remittance. During my stay I learned to familiarize myself to the environment and learn the activities performed by the card center. I had to choose the best alternatives.Organization selection Before selecting the organization. So I could only study about general procedures of issuance of Letter of Credit. I stayed at the remittance promotion department for comparatively longer period. Later I was placed in the remittance promotion department. This section includes the study based on the internship period and the various tasks performed during the stay in bank. customer service. During this period I was placed at administration department. I was allowed to work for eight weeks starting from July 2nd to September 1st. I have completed my internship program which lasted for two months at Himalayan Bank Limited at Thamel Branch. and LC department. Considering the suggestion and recommendation from my friends and family. My college also provided me the recommendation letter. The 8 . etc. The other functions are Issue of guarantee. Besides above functions. which I was allowed to learn during my internship period. fund transfer. Promotion of remittance for those who are in abroad for different purposes. which are as follows: 1. issuing cheque book. 2. 4. and how to solve the customer queries as well as complaints. The study is about HBL only. I learnt the procedure of collecting remittance. 9 . how to identify the actual remittance receiver. 6. how to verify the original data. 1. The study only covers the transaction of remittance. etc. account statements. I was also allowed to learn other activities that are performed in different departments like how to open the different accounts. how to make bank statements. what the general procedures to open these accounts. 7. The report is prepared for an academic purpose only. sending remittances. Bills/Remittance. 3. 5. safety of valuable goods. Letter of Credit. HBL provides different customer services like opening and closing of accounts. debit and credit cards and access to ebanking. But these functions are performed by different departments. Only eight weeks data are taken into consideration due to data unavailability.followings are general function of HBL. the accuracy of results and conclusions are totally depended on data published in annual report. In the remittance department. The deep analysis and study couldn’t be done due to time and data limitation.4 Limitations of the Study During the preparation of this report. Therefore. etc. there were many limitations. balance certificates. The study is mainly based on the data provided in the annual report. CHAPTER II INTRODUCTIO TO THE INDUSTRY Banking Sector Banking sector plays an important role in the economic development of the country. It therefore acts as an intermediary between the deficit and surplus group of the financial resources. which deals in the process of channelising the available resources in the needed sector. Commercial banks are one of the vital aspects of this sector. Financial system contains two components viz. depository and non-depository financial institutions. Commercial banks and finance companies are the examples of the depository 10 . S. are the examples of non-depository financial institutions. Development Banks.01.S) was the first step towards the institutional development of banking in Nepal. Keeping this in mind. Integrated and speedy development of the country is possible only when competitive banking service reaches nooks and corners of the country. 2013.S.e. supervision and inspection mechanism.institutions where as Employee Provident Fund. Tejarath Adda did not collect deposits from the public but gave loans to employees and public against the bullion. government set up Rastriya Banijya Bank (RBB) in B. Tejarath Adda established during the tenure of the then Prime Minister Ranoddip Singh (1933 B. Nepal Rastra Bank (NRB) was set up on B. NRB has been trying to change them and has introduced a host of prudential measures to safeguard the interest of the public. Nepal bank limited had a Herculean responsibility of attracting people toward banking sector from pre-dominant moneylenders net and of expanding banking services. merchants and moneylenders were the ancient bankers of Nepal.S. Development of Banking Industry in Nepal Like other countries goldsmiths. Since then. Banking in modern sense started with the inception of Nepal bank limited (NBL) on 1994/7/30 B. The study in this report is concerned with the depository financial institutions i. NRB is yet to do a lot to prove themselves efficient supervisors. it has been functioning as the government's bank and has contributed to the growth of financial sector. Thus. etc. NRB really requires strengthening their policymaking. Himalayan Bank Ltd. Financial institutions play an important role in the proper functioning of the economy.S. Insurance Companies.2022/10/10 as a fully government owned commercial bank. Accordingly. These institutions act as an intermediary between the individuals who lend and borrow financial instruments. Being a commercial bank.14 as a central bank under Nepal Rastra Bank act 2012 B. These institutions make the flow of investment easier. 11 . it was natural that NBL paid more attention to profit generating business and preferred opening branches at urban centers. The major challenge before NRB today is to ensure the robust health of financial institutions. Government however had onus of stretching banking services to the nook and corner of the country and also managing financial system in a proper way. NEPSE opened its trading floor on 13 January 1994.) as the first joint venture bank to be a milestone in the history of banking.S. (renamed as Nabil Bank Ltd. commercial banks are to carry out commercial transaction only. Similarly. Moreover. Banking service to the satisfaction of customers was a far cry. entrepreneurs were interested in setting up new banks including branches of foreign banks. With the establishment of RBB and ADB. The inception of Nepal Arab Bank Ltd.S. 2002 A. for industrial development. banking service spread to both the urban and rural areas. This helped the common people reduce their burden of paying higher rate of interest to moneylenders and absolved them from kowtowing before moneylenders. 1984 A. The very marketing concept of Nabil Bank forced the other bank in operation to be more customers oriented and led the influx of commercial banks.S. Having observed the success of Nabil Bank based on marketing concept and also because of liberal economic policy adopted by the successive governments. excess political and bureaucratic interference and absence of modern managerial concept in these institutions was hurdle in this regard. security exchange center was renamed Nepal stock exchange in 1990. NRB also gave incentive to NBL to expand their branches to rural areas. But commercial banks had to carry out the functions of all types of financial institutions. It is natural expectations of customers which keep on increasing. they were expecting improvement and efficiency. 12 .As the name suggests. Because of higher return on investment and lower capital requirement. In 2016 B. to provide finance for agricultural produces so that agricultural productivity could be enhanced by introducing modern agricultural techniques. industrial development center (IDC) was set up in 2013 B. Once they got banking services. following commercial banks came into being. IDC was converted to Nepal industrial development corporation (NIDC).) on 2041/03/29 B. However. (July12.S. However. agricultural development bank (ADB) was established in 2024/10/07 B. current political and economic scenario of the country coupled with new prudential norms of Nepal Rastra Bank and stiff competition may make the entrepreneurs give a second thought to the idea of establishing banks. Nabil Bank gave a new ray of hope to the sluggish financial sector.D.D. Hence. on January 1. Basically. the banks make their profit. Modern commercial banks can be identified by different name such as business banks. Functions of Commercial Banks 13 . 2. those who do not have surplus money but wish to borrow for investment in productive purpose. . with major thrust in industrial development. Provide financial services in order to systemize the customer's financial activities. those who have surplus of money and do not wish to spend immediately with borrowers.Commercial Banks Commercial banks are the major components in the financial system. they provide a link between lenders. Channelise the idle resources towards the economic activities. In modern time. retail banks. commercial banks. 3. confine them and concentrate in their activities of fulfilling needs of their customers. regulated and supervised by the central bank. They work as the intermediary between depositors and lenders and facilitate in overall development of the economy. required and reasonable financial assistance. 4. This is known as financial intermediation. Assists for rapid economic growth of the country by providing parties with deficit of fund. by charging a rate of interest to borrowers slightly higher than they pay to lenders. Importance of Commercial Banks 1. Help build the efficient financial sector of the economy. clearing banks. they all perform the same basic function i. joint venture banks. which are facilitated.e. 14 . 3. Administrative: Under administrative functions of banking. Maintaining cordial relationship and favorable environment. Coordination and 6. 2. Performance evaluation. fulfilling contractual obligations and management of the logistics are included. it assists financial system by undertaking following other functions: Core functions: The core functions of commercial banks is to ease the business or any other economic activity by either providing funds to parties with deficit of it accepting deposit from those with surplus of it. operations and management information system. 5. in order to support its core function of lending and borrowing fund. has to perform support functions like personnel. administration of contracts. Personnel: All the functions related to the management of human resources are included in this category. Motivational functions. Hiring and firing.between' the savers and users of funds and channelise idle and scattered resources prevalent. procurement and supplies. Job design and evaluation. issuing guarantee. or providing any other non fund based services like issuing letter of credit.Though the primary function of commercial banks is to act as a 'go. Some of the functions related to human resource may be stated as: 1. remittance and safe deposit lockers Support functions: The bank. 4. administrative. Ltd Promoter Share 13. (PROMOTOR SHARE) 11. These functions hold reasonable importance as these are related with how the primary functions (lending and borrowing) are to be performed and management of system and technology involved in such functions. Lumbini Bank Ltd. Machhachapuchhre Bank Ltd. Operations: The activities related with operation procedure. Nabil Bank Limited Promoter Share 12. Peoples Finance Co. Kumari Bank Ltd.Bank 4. Development Credit Bank Ltd. Kumari Bank Ltd 6. Lumbini Bank Limited Promotor Share 10. Everest Bank Ltd(Preference Shares Convertible) 14. 7. 3. Nepal Industrial & Co.(Promotor Share) 15 . List of Licensed Commercial Banks of Nepal Table No. NMB Bank Limited 2. Bank 8. Nepal Credit & Com. Laxmi Bank Limited 5. Siddhartha Bank Limited 9. system and technology and inter-branch tractions are included in operation function.These functions are related with the external affairs and procurement and distribution of materials required for day-to-day operations.: 1 List of Licensed Commercial Banks of Nepal Companies 1. Bank of Kathmandu(Promoter Share) 16. (Source: www. 19.Loans and Deposits. Nepal Bangladesh Bank Ltd.15. 23. 20. 18. Nepal SBI Bank Limited 22. 21. Nepal Investment Bank Ltd. Everest Bank Ltd 24. Machhapuchchhre Bank Ltd. Nabil Bank Ltd. Products such as Premium Savings Account. Himalayan Bank has been able to maintain a lead in the primary banking activities.com) A Profile of Himalayan Bank Limited Himalayan Bank was established in 1993 in joint venture with Habib Bank Limited of Pakistan. Despite the cut-throat competition in the Nepalese Banking sector. Himalayan Bank Ltd. Standard Chartered Bank Ltd. Legacy of Himalayan Bank lives on in an institution that's known throughout Nepal for its innovative approaches to merchandising and customer service. Laxmi Bank Limited Promotor Share 17.nepalsharemarket. and HBL Proprietary Card besides services such as ATMs and Tele-banking 16 . Bank of Kathmandu 25. they believe they obviously lead the banking sector of Nepal. Small Business Enterprises Loan. Internet Banking and SMS Banking. Being one of the corporate citizens of the country.HimalRemit TM. HBL stand for the innovations that they bring about in this country to help their Customers besides modernizing the banking sector. Many activities that do a common good to the society have been undertaken by HBL in the past and this happens as HBL on an ongoing basis. Pre-paid Visa Card. Looking at the number of Nepalese workers abroad and their need for formal money transfer channel. With the highest deposit base and loan portfolio amongst private sector banks and extending guarantees to correspondent banks covering exposure of other local banks under their credit standing with foreign correspondent banks. HBL is not only a Bank. fee payment facility are some of the products and services. This has helped the Bank provide services like ‘Any Branch Banking Facility’. Therefore. Other financial institutions in the country have been following the lead by introducing similar products and services. HBL has always promoted social activities. International Travel Quota Credit Card. Significant portion of the sponsorship budget of the Bank is committed towards activities that assist the society as large. HBL has developed exclusive and proprietary online money transfer software. in the Middle East and Gulf region. etc. SAT. The most recent rating of HBL by Bankers’ Almanac as country’s number 1 Bank easily confirms their claim. Living up to the expectations and aspirations of the Customers and other stakeholders of being innovative. It is committed Corporate Citizen Corporate Social Responsibility (CSR) holds one of the very important aspects of HBL. HBL very recently introduced several new products and services. IELTS. All this only reflects that HBL has an outside-in rather than inside-out approach where Customers’ needs and wants stand first. the single Banking software where the Bank has made substantial investments. HBL is the biggest inward remittance-handling Bank in Nepal. 17 . HBL also has a dedicated offsite ‘Disaster Recovery Management System’.were first introduced by HBL. All Branches of HBL are integrated into Globus (developed by Temenos). Consumer Finance through Credit Card and online TOEFL. By deputing our own staff with technical tie-ups with local exchange houses and banks. To become a responsible national institution. The Bank always strives positioning itself in the hearts and minds of the customers. therefore people at HBL believe that the mission will be accomplished only by satisfying these two important components with the Customer at focus. To respond to all banking needs courteously and co efficiently. 7. 4. 18 . There are two components in the mission of the Bank." The Bank’s Objective: To become the Bank of first choice is the main objective of the Bank. Preferred Provider and Quality Financial Services. 8. The Bank’s Mission: The Bank’s mission is to become preferred provider of quality financial services in the country. To become a leading bank in the country by providing premium products and services and then ensuring attractive and substantial return to shareholders.The Bank’s Vision: Himalayan Bank Limited holds of a vision to become a Leading Bank of the country by providing premium products and services to the customers. To bridge the gap between savers and borrowers efficiently and effectively. thus ensuring attractive and substantial returns to the stakeholders of the Bank. To provide banking services with difference. 2. To become the bank of first choice. To ensure handsome and steady return on investment. 3. 6. To emerge as a quality provider of the quality financial services of the country. To promote productivity through sustainable benefits. 5. Himalayan Bank is committed to be a Bank which has "The Power to Lead. 1. Dharan. Chitwan Mahabir Road. Himalayan Bank has correspondent arrangement with 178 internationally renowned banks like American Express Bank. Birgung.Himalayan Bank has access to the worldwide correspondent network of Habib Bank for fund transfer. Sunsari Main Road Hetauda Main Road Benepa.N 1 2 3 4 5 6 7 8 9 10 11 Name of branches Pokhara Branch Maharajgung Branch New Road Branch Butwal Branch Patan Branch Tandi Branch Birgunj Branch Dharan Branch Hetauda Branch Banepa Branch Siddartha Nagar Branch Branch Address New Road. The head office of Himalayan Bank Limited is situated at Karmachari Sanchaya Kosh Building. Lalitpur Ratnanagar . Besides. Kathmandu Bishal Bazar Kathmandu Traffic Chowk Pulchok. The various branches of HBL operating throughout the country are as under: Table No: 2 S. Phokhara Kaski Teaching Maharajgung. Bhairahawa 19 .Tridevi Marg. letter of credit or any banking business anywhere in the world. The bank has fifteen branches over the country. Citibank. ABN Amro etc. Kavre Police Colony . Thamel. Among the total. Parsa Putali Line.Tadi. five are located inside the capital including the head office and the rest is dispersed throughout the country. Habib Bank is the largest and oldest bank in Pakistan having over 1700 domestic and 65 overseas branches covering all continents and over 1800 correspondents worldwide. Chitwan (Source: Annual report of HBL) Equity participation: Table no: Ownership Local-Employee Provident Fund -Nepalese Promoters -General public Foreign(Habib BankLimited.LalitPur Katunje .12 13 14 15 Biratnagar Branch Credit Card Branch Bhaktapur Branch Narayangadh Branch Shanihat Main Road Biratnagar Pulchock .Bhakatpur Pulchock . Pakistan) Total 14 51 15 20 100 % 20 . 2003 awarded by Federation of Nepal Chambers of Commerce and Industry The Bankers' Almanac 21 The Bankers' Almanac . Britain National Excellence Award.Share Ownership of HBL 20 14 Employee Provident Fund Nepalese Promoters General public Foreign (Habib Bank) 51 15 (Source: Annual report of HBL) Awards And Recognitions Awards and Recognitions received by Himalayan Bank Limited in the last five years • • • Number 1 Bank of Nepal.2003 awarded by The Bankers’ Almanac.2006 awarded by The Bankers’ Almanac. Britain Number 1 Bank of Nepal. the bank has introduced "Himalayan Bank Gold Card".National Excellence Award 2003 Products and Services offered Though the Bank is fairly young in terms of tenure of operations. the following products have been implemented till now: Credit card: Himalayan bank has been a pioneer in introduction in introducing a Nepalese domestic credit card. Himalayan Bank has been pioneering in instituting telebanking services. it has been the innovator of tenure of its operations. Himalayan Bank is also the member of VISA and MASTERCARD international.World Ranking 2006 World Ranking 2003 FNCCI . Dialing a pre-specified telephone number client can have information on: • • Make balance and statement inquiries. it has been the innovator in introducing many new products in Nepalese financial market. Tele-Branch Banking: To provide more prompt and efficient services to customers. The bank issues all ranges of VISA card and is developing framework for MASTERCARD issuance. Order statement and chequebook 22 . To illustrate it. one must request for the ATM card from any of the four branches providing service. This product. in the morning or the 12 p. ATM (Automatic Teller Machine): Automatic teller machine (ATM) placed in the premises of Thamel branch. which means they are not restricted to particular branch for operating that account. lawyers. Adoption of world wide accepted GLOBUS software enhances the convenience of operating this service and security of the operation as well. at midnight. New Road branch.m. Maharajgunj branch and Patan branch enables the bank to extend the bank facilities to 24 hours. interest rates etc. It's the beauty of ATM service that enables one to withdraw cash from account in any of the branch providing this service Home loan and Hire purchase loan: The bank has recently introduced home loan as its new product under which employed or selfemployed persons or pensioners within the age bracket of 25 to 65 years with regular and stable source of income and adequate saving are qualified. Thamel.m. engineers. integrated with the core banking system will enable to make certain operations like withdrawal and deposit of cash and cheques from any of the bank's branches can walk into any of the bank's branches possible. and chartered accountants as well as self employed businessman. Customers can utilize ATMs and make withdrawal at any time. it requires the proposed site to be accessible with at least 9 feet motorable road and should fall under the bank's criteria for collateral mortgage. • • • Purchase Construction Extension 23 . Customers maintaining an account with any of the branches can walk into any of the branches convenient to them for operation of the account. The primary focuses of this product are the professionals like doctors. and Patan branches and is looking forward to extending it to other branches as soon as possible. viz.• Get information on foreign exchange. In case of home loan. The bank provides Home loan for three basic purposes. To use this facility. be it 5 a. Any-Branch Banking: The bank has any branch-banking facility in New Road. 24 . (Above 90 days) The bank accepts and maintains these types of deposit accounts in the following currencies. The funds can be transferred through the correspondent bank arrangement with various financial institutions in Middle East to facilitate efficient fund transfer. especially for personal use. free of charge. in most of the major currencies. which facilitates transfer of fund from almost all over the world. It covers individual account holders.000. PSA scheme (Premium Saving Account Scheme) provides incentives for all account holders with balance of more than 50. The participants of this scheme can receive Himalayan Bank Gold Card. Apart from these services there are some other innovative measures too: accidental death insurance is one example of it. Himal Remit: Himal Remit is one of its latest products. funds can also be transferred within the country to the following cities in Nepal directly. PSA holders are served through a special counter in all branches. The insurance benefit payable to the nominee of the account holder is a lump sum equivalent to four. via its total correspondents or branches. and vehicles brand but the bank has special scheme for Hyundai and Perouda cars under which thy provide loan to the customer in a comparatively lower interest rate.time ht minimum balance in the account during the month of the event. and the bank provides service of transferring funds to other cities on Nepal.000 Rupees. (7 days to 90 days) Fixed term deposit. Interest on all accounts as such is calculated on daily basis. The bank finances maximum up to 70 and 80 percentage of the total cost in home and hire purchase loan respectively. They also enjoy 20% wavier in rental on the small size lockers. PSA holders maintaining average balance of over 100. Furthermore.The bank provides loan for almost every vehicles. especially from all the parts of the Middle East. The customers under this scheme are given preference in providing self-deposit lockers. ATM card along with tele-banking facility. subject to a maximum of 500.000 are eligible to take part in lucky draw under a premium prize and several other prizes are given every month. The bank currently offers following types of deposits schemes to the customers: • • • • Current account Saving account Short term deposit account. they believe they obviously lead the banking sector of Nepal. The Bank believes in 1. Other financial institutions in the country have been following the lead by introducing similar products and services. Building healthy future for Bank Employees 25 . HBL stand for the innovations that they bring about in this country to help their Customers besides modernizing the banking sector. Providing quality services to the customers 2. The most recent rating of HBL by Bankers’ Almanac as country’s number 1 Bank easily confirms their claim. Legacy of Himalayan Bank lives on in an institution that's known throughout Nepal for its innovative approaches to merchandising and customer service. thus ensuring attractive and substantial returns to the stakeholders of the Bank. Therefore.• • • • • • Nepali Rupees US Dollars Pound Sterling Deutsche Mark Japanese Yen Swiss Franc Any customer complying with the general rule for account opening and fulfilling the document requirement can open an account Current Status of the Organization The Himalayan Bank Limited is one of the best banks in the country. With the highest deposit base and loan portfolio amongst private sector banks and extending guarantees to correspondent banks covering exposure of other local banks under their credit standing with foreign correspondent banks. HBL Proprietary Card and Millionaire Deposit Scheme besides services such as ATMs and Tele-banking were first introduced by HBL. Products such as Premium Savings Account. The Bank holds a vision to become a Leading Bank of the country by providing premium products and services to the customers. Remittance transfers may be domestic or international. Developing a fruitful bond with the Society through continuous socially responsible activities. Embracing extra-curricular activities for refreshments and fun at work 6. who send money to their families in their home country every month). for example. although remittance transfers are typically recurrent. These person-to-person payments are typically relatively low-value compared to. may not always be well integrated into all aspects of the host-country's society and economy. Providing attractive return to stakeholders 4.a portion of migrant’s earnings from the migration destination to the place of origin. in practice they are usually made as a series of individual instructions rather than by standing order. Upholding honesty and sincerity 5. Remittances Remittance in simple words is the transfer of the funds. wholesale bank-to-bank transfers. when there is migration from rural to urban areas within a country. for example. Often the flows are between relatively low-income individuals and the senders. 26 . The emphasis is on person-to-person payments rather than payments to purchase goods and services or business-to-business payments.3. (# Average size of remittance to Nepal amounts USD 200 to 400). The term “remittance” is normally limited to denote monetary and other cash transfers transmitted by migrant workers to their families and communities.g. Similarly international remittances are defined as cross-border person-to-person payments typically recurrent in nature (e. as migrants. In addition. Domestic remittances occur. 9 47. Approximately USD 1 billion per year enters the country in the name of remittance achieving at least 8% growth each year.1 11.0 2/ 03 .6 31.6 22.9 7/ 98 .REMITTANCE IN NEPAL: Remittance received from abroad has been one of the major factors for Nepalese Economy.7 158. IN BILLION 100 80 60 40 20 0 4 6 7 10 13 54 16 21 The 66 59 above figures clearly show .0 4/ 05 .9 9/ 00 .0 1/ 02 .1 107 95/96 4 58 96/97 6 76 97/98 7 94 98/99 10 139 99/00 13 171 00/01 16 215 01/02 21 283 02/03 54 732 03/04 59 792 04/05 66 886 REMITTANCE INFLOW TO NEPAL 05/06 107 1445 120 RS.9 5/ 96 .0 5/ 06 27 YEAR .06 24. the flow of funds from migrant workers back to their families in their home country is an important source of income.7 8.9 8/ 99 . It has continued to be the major source that injects much-needed cash into the economy (# currently remittance contributes to more than 14% of the total GDP of the country). For the underdeveloped country like Nepal.8 25.0 0/ 01 .0 3/ 04 . this enhances the import potential of the country which will eventually drive the growth of the economy as a whole.9 63.9 6/ 97 . Apart from contributing significantly to the foreign exchange reserves of the country. The clearer picture of the growth of remittance in Nepal can be assessed through following data: Table no: Situation of Remittance in Nepal Year Amount NPR (Billion) USD (Million) Annual Growth Rate (%) 30. the leading joint venture bank of Nepal.com/. However one of the important factor to be considered here is that still at least 35% of the total remittance have been coming through the unofficial channels such as hundi and personal delivery which may affect the contribution of the remittance in the total economic growth of the country and to the remittance industry as a whole if it is not controlled which is operating at much lower cost than that of remitting company’s increasing their attractiveness. a premium online customer focused and technology oriented Money Transfer product is brought to you by Himalayan Bank Limited. Activities done regarding promotion of Himal Remit HimalRemit. Himalayan Bank is a pioneer in the field of retail money transfer business with over 11 years of customized service delivery experience in the field. towns and villages of the country and is capable of paying at more than 200 locations across Nepal. Himalayan Bank has the largest network covering all major cities. It is easily accessible through our main web domain http://www.that the remittance inflow to Nepal has been increasing in a very steady way. The product is monitored and 28 . It can be directly accessed by all our branches thus ensuring prompt execution of the remittance.1% respectively.7% and 63. HimalRemit is a state of art web-based money transfer system.himalayanbank. The major growth can be seen in 2003/04 and 2005/06 registering the growth of 54% and 158. Based on the information provided by remitter. beneficiary’s name. For the payment to be paid from the HBL branch. The system will automatically generate RAD number. HBL will arrange to make deposit to beneficiary’s branch through its branch where HBL has branch or through its agent. 29 . For the payment to be paid from other authorized agent. The remitter will make request for fund transfer to pre-agreed location against cash deposit and he/ she is required to fill all details i. bank/ branch name and amount etc. account number. The money transferred through this product will be on real time basis. The remitting agency can transfer funds either to the beneficiary against the identification document or can credit the Customer’s Account maintained either with Himalayan Bank Limited or other local banks of Nepal. 2. 5. The RAD number consists of ten digits. The beneficiary will go to the prearranged payment location and claim the amount. HBL will arrange to make deposit to the beneficiary’s account. where HBL does not have its Branch. The remitter will have to pass details of RAD number. payment details i. Based on the information in the System. Currency & Amount etc. upon confirmation of RAD number and identification of beneficiary. 6. will make the payment. 1. The payment location will be either Himalayan Bank Branch or HBL agent. The RAD number is number generated by the system for each transaction and is unique and this becomes the main basis for payment at the receivers’ end. 4.serviced 24/7 by our Remittance Service Department dedicated to deliver fast and reliable services to the Customers. For the payment to be credited to the account with HBL and/ or other banks in Nepal. Amount and nearest location from where money is to be collected to the beneficiary. RAD number will be generated by the System. Name. will be provided in HimalRemit. ID number. the branch.. Identification and after receiving authorization from Himalayan Bank Limited. remitting agent shall transfer the data to the system and upon approval of transfer.e. agent shall make payment upon confirmation of RAD number. which will be provided to the remitter. 3.e. Provide instant updated information to the HBL agents. Saudi Arabia and so on Account open for them is saving account of zero balance those who are going Korea and Rs.the Online Remittance Software: • Web based technology. Paying agent. UAE.com/ Provide instant updates on remittance request at the receiving end for prompt processing. One family member of them could also enjoy the facilities provided by the bank.himalayanbank. Special Features of Himal Remit. Interest will be calculated and credited to depositor's Savings Accounts on minimum monthly balances in every Six Months. 8. which will be sent to the remitting agent as confirmation of payment. Provide a secure and reliable means of remittance information. Account credit confirmation will be provided to Remittance Promotion Department by HBL branch/ paying agent that will be passed on to the Remitting agent. Dubai. Feature: 1. • • • • For the promotion of Himal remit. Qatar. Customers are provided with free personal accidental death insurance. direct access from our main web site http://www. 9. Customers opening this account get a free Cheque Book. The minimum deposit to be maintained by the Customer varies according to the Branch. Savings Account Savings Deposit Account can be opened in any of our Branch Offices. The Bank offers Any Branch Banking Facility. Manage agents and officers through central administration at Himalayan Bank. I visit the various place for this purpose where I had to open the account for those who are going abroad for the purpose of earning like Korea.100 for those who are going other countries. after making the payment.7. during the internship. The system facilitates remitting agent(s) to browse the status of particular payment on the basis of RAD unique numbers. 30 . will send the confirmation of payment to Himalayan Bank. 00 to open a Savings Account in Local Currency depending upon the Branch. Document Requirements for opening account Following documents are required to open a Current/Savings/Premium Savings Account with the Bank depending upon the type of Account: a. Visit times 1 2 3 4 Total Number of people who open the account 65 16 28 36 145 People open this account because of following facilities : It can be directly accessed by all our branches thus ensuring prompt execution of the remittance The product is monitored and serviced 24/7 by our Remittance Service Department dedicated to deliver fast and reliable services to the Customers. Minimum deposit to open foreign currency A/C is USD 50. 31 . Personal Identification: Citizenship Certificate or Passport and 3 copies of Photograph.00 or equivalent in foreign currency A/C. No interest will be provided for balance less than specified above.00 to NRS 15.2.000. b. For this I went there four times. Nominee Declaration For the promotion of himal remit I went to Banshipati where people selected by government for working Visa in Korea are trained. The minimum deposit ranges from NRS 2.500. When account is opened by customers there will be accidental death insurance up to Rs. Chapter III Lesson learnt. By these features people are attracted towards the himal remit. Other activities done in the Himalayan Bank: Account open for other customer who want to open account in bank Printing of Cheque and preparing cheque book. Assist in card services The other functions are Issue of guarantee. fund transfer. 32 . I was able to use myself in the world of business where I could apply my theoretical knowledge in practice. This internship also provided me with greatest opportunity to acquaint myself with the banking industry. Letter of Credit. Printing of statements and balance certificates. Further.5 lakhs. Bills/Remittance. Customers are provided cheque book along with Visa debit card which can be used in Nepal and India. it provided me the practical exposure and helped me to understand corporate social responsibility and develop corporate attitude.Can credit the Customer’s Account maintained either with Himalayan Bank Limited or other local banks of Nepal. I have learned to be in time while working with the bank. Conclusion and Recommendation Lesson learnt Working as an intern in Himalayan bank limited for two months. lots of homework should be done.I have learned to get permission before doing any thing and providing any service to the customer. Internship in such bank not only gives us an insight to learn about how the bank perform the inter bank transaction in Nepal . I have find out the existing as well as the possible problems associated with Customer Service Department. but also boosts our future prospects in the banking sectors. Conclusions By and large. So to operate any profitable business. and to deal with the intern colleague so as to make the working environment cozier and friendlier. I have understood the banking procedure through the bank’s perspective. Customer feel satisfied when they are behaved properly. 33 . Lastly. I would like to thanks Himalayan bank once again for giving me an opportunity to grow up practically in its comprehensive banking environment.. I have learned about the change in customers’ preference regarding the various product launched by the bank I have learnt a lot of other aspects other than the banking as to socialize with the people. working in Himalayan bank. Their queries are needed to be answered in a friendly way so as to retain them in the organization. to deal with the senior staffs. I was able to develop some qualities in me which will be helpful for me throughout my life. I have also learnt that the behavioral issues are most important inside the organization. a better strategy and a smooth implementation are the basic ingredients of any successful business. Since the future program of HBL. a proper marketing plan. card section. I got chance to be familiar with several types of product and services provided by the bank I have learned process of account opening in the bank under different saving sachem. remittance promotion department and trade operation. are quite good so delay should not be made. it has been noticed that the banks performance. from the profit to return in assets. However. The findings of analysis can be concluded as below: The bank has unsatisfactory cash reserve ratio over the review period. at least when we conclude on the basis of annual report. The bank.The study is primarily aimed at assessing financial aspects of the bank. Nowadays. would obviously hamper its profitability. Analysis of other ratios shows that the bank neither has been able to perform outstandingly. But we cannot overlook the macro-economic conditions and instability of the current affairs. it would not have to face problems like these. we cannot conclude it as a setback due to statutory requirement of maintaining average cash reserve ratio on a weekly basis of immediately preceding fourth week. There is high prospective and growing market for card business especially acquiring business. nor has to lament for what it couldn't achieve. though able to collect sufficient deposit does not have satisfactory loans and advances. which. if not tackled prudently. So the possibility of other banks and/or financial institutions entering this field should not be ignored 34 . It has been found that the bank has widespread branches around the major cities and has a pleasant goodwill that it has created in the market through its operations. However. people are being aware about card facilities and the advantages of holding a card. The dividend payout ratio of the bank has not remained in the satisfactory level. The net profit level of the bank has gone up considerably over the last few years of operation. which is gradually progressing in industrialization process and increasing income level among the higher and middle class society. Had it been able to administer and follow up the loan that it had dispersed and evaluate the proposals and its creditability thoroughly. has been slackening and that it needs improvement in its due course of operations. Nepal too needs to develop the banking habit of its people. we won't have any other option in hand apart from praising it for whatever it has been able to realize. We just cannot make any more unsubstantial and detrimentally indigenous excuses. Recommendation Recommendations to organization. 35 .Conclusively. • • Bank should try to focus on customer satisfaction and relation Bank should search for new opportunities and greater coverage in remittance service. While we relate the present economic condition with its performance. the bank has been able to produce satisfactory results over the review period despite environmental adversities. • Bank should try to change the employee behavior by introducing the concept of teamwork and delegate them adequate authority to carry out their work. Thus Public awareness of credit card fraud should be generated to capture more market for credit card • To encourage frequent usage of cards. select product purchases and even for paying the annual fees. • Bank should try to satisfy its customer by providing them prompt service. For e. HBL should develop innovative and effective risk management programs and services for its members. HBL can introduce the concept of reward points. These points could be redeemed for gifts. But HBL should also balance technological cost and its respective benefits. 36 . for cardholders. which helps to maintain credit card operation at a high standard and prevent the fraudulent act. So every point would be equivalent to one rupee. • Bank should build the effective feedback channel so that the bank can know and make correction from the valuable suggestions and comment and.g. This would encourage more use of HBL’s credit card. For this purpose. HBL should give knowledge about credit card fraud to its customer and should prevent them from fraud by using latest technology. every 100 rupees worth of purchases made through the card. the cardholder gains one point. feedback of the marketing activity given by the consumer.. Recommendation to Internship programme. • To improve the skill of banks employee regular skill development programs should be initiated and periodic skill test for the employees can be applied • Since so many risks are attached with the credit card business. This internship program is fruitful to the student of BBA as they get chance to gain practical knowledge about the Banks. According to the course of BBA we need to fulfill the internship but the faculty doesn’t specify how to do and what we have to do in the internship period. fax etc. They provide us the facilities to do internship in the financial sector of the country for the practical knowledge of the course and make us easily sellable in the market after finishing the course. It should specify that work of any interns should be related with banking activities as they enter a bank to gain a practical knowledge about a Banks. students must get clear guidance regarding the work at Banks. Many Banks have misconception about the intern students as they keep them for filling purpose. So not having the knowledge of this we student faces many problem in the starting phase of the internship period. renowned university in the world by sitting in the country. But we are 37 . which they have been studying in their course. Thus internship of BBA program should clearly specified along with the work that interns are ought to do. It would work more effectively and gives positive result if it becomes more specific. Internship is very rewarding to every student of this program.U. As internship program is must in BBA course. It has become difficult to bank as well as interns regarding the activities they are supposed to perform in an organization. doing photocopies. Recommendation to Faculty of Management First of all I like to thank to the faculty of Management by providing the chance to read the BBA course under the T. So if it becomes more specific and defines the criteria within which interns are ought to do work or the works Bank could give to the interns then this internship program surely would help every intern to gain maximum practical knowledge about Banks. Shrestha Chairman 38 . I would like to thanks to all the people who help faculty of management to bring this fruitful course in the university and run under different colleges of the country. At last but not the least I would like to thank to faculty of KIST College of Management helping me to get the internship in Himalayan Bank limited.successful to make them convinced about our requirement and fulfill the two months internship period. Manoj B. Annex 1 Boards of Directors Mr. Mr. Prachanda B. Bijay B. Wathra First Vice Chairman Mr.Khetan Second Vice Chairman Mr. Shrestha Director Mr. Shrestha Director Dr. Bhattarai Director Mr. Prem P. Amar S. Ashraf M. Rana Director Mr. Upendra Keshari Poudyal Professional Director 39 . Ramesh K. Rana Chief Advisor to the Board Mrs. Surendra Silwal Alternative Director Ms. Gyem Raj Adhikari Company Secretary 40 . Himalaya S. Ranjana Shrestha Alternative Director Mr. Menuka Shrestha Alternative Director Mr.Mr. Prachanda Bahadur Shrestha Chairman Director Mr.) Name Designation Mr.Management Team Executive Committee (E. Bijaya Bahadur Shrestha Member Director 41 .C. Poudyal Member Director Mr. Masood Ul Hasan Member Secretary Senior General Manager Annex 2 Management Team Name Present Dept. Upendra K. Ashoke SJB Rana Member Chief Executive Officer Mr./Branch Mr. Ashoke SJB Rana Chief Executive Officer Head Office Mr. Masood Ul Hasan Senior General Manager Head Office 42 .Mr. Banshidhar Sharma Manager IT & SWIFT Dept. Maheshwor P. HO 43 . HO Mr. Sushiel Joshi General Manager Head Office Mr.Mr. HO Mr. HO Kanchan Basnyat Manager IT Dept. Rajbhandary Executive Marketing Officer Corporate Marketing Dept. Ujjal R. Joshi Manager Legal and Shares Dept. HO Mr. Pradeep N. HO Mr. Rayamajhi Executive Administrative Officer General Administration Department. Anup Maskey Executive Credit Officer Credit Control Dept. Sulap Raj Aryal Manager Maharajgunj Branch. HO Bina Pandey Manager Credit Management & Administration Dept. Head Office 44 . HO Rabindra Narayan Pradhan Manager Thamel Branch. Branch Manager Ishwar Kumar Karki Executive Human Resouces Officer Human Resources Dept. Branch Manager Sisam Pradhanang Joshi Manager CCD. Branch Manager Sunita Shrestha Manager Reconciliation Dept. HO Vinay Kumar Joshi Manager Bhairahawa Branch. New Road Branch Gyem Raj Adhikari Manager Executive Operating Officer 45 . Head Office Lokesh JB Rana Manager CCD. Head Office Sunil Prasad Gorkhali Manager Branch Manager. Dy. Branch Manager Gaurav Bikram Shah Manager TOC.Mrigendra Pradhan Manager Patan Branch. Branch Manager Bijaya Man Nakarmi Manager Thamel Branch. Branch Manager Robin Kumar Nepal Manager Birgunj Branch. . Head Office 46 .Ananta Rajbhandary Manager Remittance Promotion / Correspondent Banking Dept.