Remake of Intern Report

7/24/2019 Remake of Intern Report

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CHAPTER I

INTRODUCTION

1.1 Background

Bank is defined as an institution, which deals in money and credit. A bank is a financial

institution and financial intermediary that accepts deposits and channels those deposits into

lending activities, either directly by loaning or indirectly through capital markets. A bank links

together customers that have capital deficits and customers with capital surpluses. A bank plays

intermediary role, which issue demand liabilities used as means of payment and at the same time

make loans to business in a tradition that goes back several hundred years ago. The

intermediation takes place when bank accepts deposits from general public, corporate bodies and

private organization and deploys these collections for profitable purpose in the terms of loan and

advance. Banks are highly leveraged institutions that heavily depend on attracting deposits as a

basis for their assets acquisition. Resources obtained from the depositors finance most part of the

asset required by commercial banks. Banking plays significant role in the economic developmentof a country. Bank is a resource for the economic development, which maintains the self

confidence of various segments of society and e!tends credit to the people. "o, commercial

banks are those financial institutions mainly dealing with activities of the trade, commerce,

industry and agriculture that seek regular financial and other helps from them. #or growing and

flourishing, the ob$ectives of commercial banks are to mobilize idle resources into the most

profitable sector. After collecting them from scattered sources, commercial bank contributes

significantly the formation and mobilization of internal capital and development effort.

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The concept of the banking has been developed from the ancient history with the effort of

ancient goldsmith who developed the practice of storing people%s gold and valuables. &nder such

arrangement the depositors would leave their gold for safekeeping would get back their gold and

valuable after paying a small amount as fee for safekeeping and serving.

The role of money in an economy is very important. 'roper and well planed management of

money directs, determines and enhances the health and productivity of total financial sector and

the performance of financial sector affect the growth of economy. (ence, money is the topic to

manage and banks are the manager. The e!istence of a bank is for the change in every aspect of

human being and its presence is for the upliftment of people. Banks is the backbone of the

economy. They act as intermediaries to channel funds to productive business companies and

pro$ects.

The financial institutions are)

*ommercial Banks

+evelopment Banks

#inance *ompanies

"aving and *redit Associations

utual "aving Banks

*redit &nions

-nsurance *ompanies

'ension #unds

-nvestment *ompanies

-nvestment Bankers

"ecurities Brokers and +ealers

*ooperative Bank imited

icro #inancing

Banking plays a significant role in the economic development of a country. Nepal Bank Limited

(NBL) is the first commercial bank of the country. Commercial banks are the heart of the

financial institutions. They hold the deposits of many persons, government establishments and

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business units. They made funds available through their lending and investing activities to

borrowers, individuals, business firms and government establishments.

In doing so they assist both the flow of goods and services from the procedures to consumers and

financial activities of the government, they provide a large proportion of the medium of

exchange they are the media through which monetary policy affected. These facts show that the

commercial banking system of the nation is important to the functioning of the economy

1.1.1 Origin of the Word Bank

The term /Bank0 seems to have originated or derived from different sources like the 1ermanic

word /Banck%, the #rench word /Banque% and the -talian word /Banco%. The 1ermanic word

/Banck% which means a $oint stock fund or heap. The -talian word /Banco% refers to a bench at

which money changers used to change one kind of money into another and transact their banking

business. Thus in olden days, banking was associated with the business of money changing and

lending.

-n briefly, the early bankers, the 2ews in ombardy, transacted their business at benches in the

market. Thus in Thomsons Dictionary of Banking, word Bank is said to be derived from the

-talian word, 3Banco,0 a bench. 4hen bankers failed, the people hence broke up his 3Banco0 on

word 3Bankrupt0.

But some however do not agree with this view. They say that 1ermans were masters of a greatpart of -taly and the word Bank is derived from the 1erman word 3Banck0, meaning $oint stock

fund and the German word Bank came to be used as its Italian equivalent Monte and was

Italianized into Banco and the loans were called indifferently Monti or Banchi.

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Also there is another opinion from French writer, Revil Pout, that the use of Bank and Bank

notes were started in Babylon in 600 B.C. and the Bank of Venice of Italy was established in

middle ages. The use of it in India was started in ancient age. Kautaliyas economy also

describes Bank. The Manu Smriti

too has explained the banking system of the ancient age.Hence we can conclude that,

Banck in German Language

Banco in Italian

Banque in French

Bank in English, was used for the term Bank.

1.1.2 Origin of Modern Banking

The firstbankswere the merchantsof the ancient world that madeloansto farmers and traders

that carried goods between cities. The first records of such activity dates back to around 2000 BC

inAssyriaandBabylonia. Later, inancient Greeceand during the Roman Empire, lenders who

were based in temples made loans but also added two important innovations: accepting deposits

and changing money. During this period, there is similar evidence of the independentdevelopment of lending of money in ancient China and separately inancient India.

Banking, in the modern sense of the word, can be traced to medieval and early RenaissanceItaly,

to the rich cities in the north such asFlorence,Veniceand Genoa.

The Bardi and Peruzzifamilies dominated banking in 14th century Florence, establishing

branches in many other parts of Europe. Perhaps the most famous Italian bank was

the Medicibank, established by Giovanni Medici in 1397.

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http://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Merchanthttp://en.wikipedia.org/wiki/Loanhttp://en.wikipedia.org/wiki/Assyriahttp://en.wikipedia.org/wiki/Babyloniahttp://en.wikipedia.org/wiki/Ancient_Greecehttp://en.wikipedia.org/wiki/Roman_Empirehttp://en.wikipedia.org/wiki/Ancient_Chinahttp://en.wikipedia.org/wiki/History_of_Indiahttp://en.wikipedia.org/wiki/Renaissancehttp://en.wikipedia.org/wiki/Italyhttp://en.wikipedia.org/wiki/Republic_of_Florencehttp://en.wikipedia.org/wiki/Republic_of_Venicehttp://en.wikipedia.org/wiki/Bardi_familyhttp://en.wikipedia.org/wiki/Peruzzihttp://en.wikipedia.org/wiki/Medicihttp://en.wikipedia.org/wiki/Merchanthttp://en.wikipedia.org/wiki/Loanhttp://en.wikipedia.org/wiki/Assyriahttp://en.wikipedia.org/wiki/Babyloniahttp://en.wikipedia.org/wiki/Ancient_Greecehttp://en.wikipedia.org/wiki/Roman_Empirehttp://en.wikipedia.org/wiki/Ancient_Chinahttp://en.wikipedia.org/wiki/History_of_Indiahttp://en.wikipedia.org/wiki/Renaissancehttp://en.wikipedia.org/wiki/Italyhttp://en.wikipedia.org/wiki/Republic_of_Florencehttp://en.wikipedia.org/wiki/Republic_of_Venicehttp://en.wikipedia.org/wiki/Bardi_familyhttp://en.wikipedia.org/wiki/Peruzzihttp://en.wikipedia.org/wiki/Medicihttp://en.wikipedia.org/wiki/Bank


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The development of banking spread through Europe alsoand a number of important innovations

took place in Amsterdam during the Dutch Republicin the 16th century and in London in the

17th century. During the 20th century, developments in telecommunications and computing

resulting in major changes to the way banks operated and allowed them to dramatically increase

in size and geographic spread. The Late-2000s financial crisissaw significant number of bank

failures, including some of the world's largest banks, and much debate about bank regulation.

The history of banking is closely related to the history of moneybut banking transactions

probably predate the invention of money. Deposits initially consisted of grain and later other

goods including cattle, agricultural implements, and eventually precious metals such as gold, in

the form of easy-to-carry compressed plates. In the times before the establishment of

Christianity, the economic lives of the people circulated about the houses of the familia regala

and their priesthood, where security was afforded for storage and distribution principally of

crops. Thus the buildings utilized primarily by this elite, the palaces and temples, became the

location of the earliest of social exchange bearing some similarity to banking practices of

contemporary culture, where-in the safeguarding of the wealth of society was assured. Temples

and palaces were the safest places to store also gold, as they were constantly attended and wellbuilt. As sacred places, temples presented an extra deterrent to would-be thieves.

The history of modern banks starts from the establishment of

Bank Of Venice, established in Venice, in Italy, in 1157

Later on Bank of Barcelona was established in Spain in 1401

Bank of Genoa was established in 1407

Bank of Amsterdam in 1607,

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http://en.wikipedia.org/wiki/Financial_history_of_the_Dutch_Republichttp://en.wikipedia.org/wiki/Late-2000s_financial_crisishttp://en.wikipedia.org/wiki/Bank_regulationhttp://en.wikipedia.org/wiki/History_of_moneyhttp://en.wikipedia.org/wiki/Financial_history_of_the_Dutch_Republichttp://en.wikipedia.org/wiki/Late-2000s_financial_crisishttp://en.wikipedia.org/wiki/Bank_regulationhttp://en.wikipedia.org/wiki/History_of_money


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Bank of Hamburg in 1619.

Bank of England was established in 1694.

1.1.3 Bank in Nepal

The history of banking system development in Nepal is not so old. Before starting the modern

banking system there was traditional banking system. Firstly there appear the Goldsmiths who

were the sources of development of bank in Nepal. They had to take the deposits as money, gold,

ornaments from the people and gave security from theft. Merchant banker was the first banker

who has developed the banking in trading in commodities than money. They transfer money

from one place to another, for this purpose they issue receipts or documents as mere substitute of

money called drafts in present days after merchant banker moneylender came in the field.

Moneylender gives loan to public and some interest. They also accept money or valuable things

for security. In Malla stage Tankadhari was one type of cast who was especially working for

money transaction and also gives loan to public, working as a bank. Finally Tejarath was

established by Prime Minister Ranodip Singh Rana in 1933 B.S (1876 A.D). It was established

for providing loans for Government employees but it did not collect deposits from the general

public.

The first modern bank to be established was a Commercial Bank (Nepal Bank Limited). Nepal

Bank Limited was established in 1994/07/30 B.S (1937 A.D) as the first Bank in the history of

Nepal with 51% of Government equity and 49% of general public equity. Nepal Rastra Bank was

set up on B.S. 2013/01/14 as a Central Bank under Nepal Rastra Bank Act 2012 B.S. Since then,

it has been functioning as the governments bank and has contributed to the growth of financial

sector. In 2016 B.S, Nepal Industrial Development Corporation (NIDC) was established to look

after the industrial development. Similarly in 2022/10/10 Nepal Rastiya Banijya Bank was

established as the second commercial bank in Nepal with 100% of Governments ownership. In

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2024 B.S Agricultural Development Bank of Nepal was established to provide finance for

agricultural produces so that agricultural productivity could be enhancing by introducing modern

agriculture techniques.

Moreover, Security Exchange Center was established in 1976 to enhance capital market

activities. Securities Exchange Center was renamed Nepal Stock Exchange (NEPSE) in 1993

A.D. NEPSE opened its trading floor on 13thJanuary 1994.

In order to develop the economy other joint venture commercial banks and other financial

institution came into existence. Nepal also adopted liberal free economic policy. Government of

Nepal permitted the establishment of different joint venture banks with foreign collaboration.

List of Commercial Banks

Table 1.1: List of Commercial Banks (Date in A.D)

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8

S.

No

Name of Commercial Banks Corporate

Office

Operation

Date(A.D.)

1 Nepal Bank Limited Kathmandu 1994/07/30

2 Rastriya Bank Limited Kathmandu 1966/01/23

3 Agriculture Development Bank Kathmandu 1968/01/02

4 Nabil Bank Limited Kathmandu 1984/07/16

5 Nepal Investment Bank Limited Kathmandu 1986/02/27

6 Standard Chartered Bank Limited Kathmandu 1987/01/30

7 Himalayan Bank Limited Kathmandu 1993/01/18

8 Nepal SBI Bank Limited Kathmandu 1993/07/07

9 Nepal Bangladesh Bank Limited Kathmandu 1993/06/05

10 Everest Bank Limited Kathmandu 1994/10/18

11 Bank of Kathmandu Kathmandu 1995/03/12

12 Nepal Credit & Commercial Bank Limited Rupandehi 1996/10/14

13 Lumbini Bank Limited Narayangadh 1998/07/17

14 Machhapuchhre Bank Limited Pokhara 2000/10/03

15 Kumari Bank Limited Kathmandu 2001/04/03

16 Laxmi Bank Limited Birgunj 2002/04/03

17 Siddhartha Bank Limited Kathmandu 2002/12/24

18 Global IME Bank Limited Birgunj 2007/01/02

19 Citizen International Bank Limited Kathmandu 2007/06/21

20 Prime Bank Limited Kathmandu 2007/09/24

21 Sunrise Bank Limited Kathmandu 2007/10/12

22 NIC Asia Nepal Limited Kathmandu 2013/06/13

23 Grand Bank Nepal Limited Kathmandu 2008/05/25

24 NMB Bank Limited Kathmandu 2008/05/01

25 Kist Bank Limited Kathmandu 2009/05/07

26 Janata Bank Nepal Limited Kathmandu 2010/04/05

27 Mega Bank Limited Kathmandu 2010/07/23

28 Commerz and Trust Bank Nepal Limited Kathmandu 2010/09/20

29 Civil Bank Limited Kathmandu 2010/11/26

30 Century Commercial Bank Limited Kathmandu 2011/03/10

31 Sanima Bank Limited Kathmandu 2004/11/26


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1.1.4 Functions of Commercial Banks

The function of commercial banks is broadly classified into three categories , which are briefly

explained below :

Primary Function

Commercial banks have to perform primary functions of accepting deposits, providing loan and

funds involvement in earnings assets to balance the portfolios of assets management. The

primary function of commercial banks is explained below:

Accepting Deposits

Commercial banks accept deposits from individuals, partnership firms and corporations and also

from center government and local government. It is the most important function of the

commercial bank. Different types of deposits accepted by commercial banks are as follows:

Current or Demand Deposit: often referred to as checking accounts are essentially

working balances that individuals, business, financial institutions, and governmental units

use to make payments when they need cash. The amount deposit in this account can be

withdrawn by drawing cheque without prior invest and no interest is offered in this

account.

Saving Deposits: Saving deposits generally are in small amount. They bear a relatively

low interest rate but may be withdrawn by the depositor with no notice.

Fixed or Time Deposits: Time deposits carry a fixed maturity, a penalty is charged for

yearly withdrawal. This type of deposit usually offers the highest interest rates a bank can

pay. However, the depositors can take loan from the bank against the security of fixed

deposits receipt. Time deposits may be divided into non negotiable certificates of deposits

(CDs), which are usually small , consumer type accounts, negotiable CDs that may be

traded in the open market in million of rupees and are purchased mainly by corporation all

over the world.

Margin Deposits: These are deposits use as margin on lending.

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Call Deposits: These are deposits that are called on short notice. It is also known as

money at call and short notice.

Providing Loans

The second important function of a bank is to provide different types of loans. The principle

business of commercial banks is to make loans to qualified borrower. The commercial bank

earns profit by giving the amounts deposited with it in the form of loans. Banks loans may be

classified as: loans and advances, overdraft, cash credit, discounting of a bills and so on. The

bank charges interest on loans, which are usually higher than those offered on other deposits.

Since, the banks in Nepal are free to fix interest rates, the rate of interest on both deposits and

loans various from bank to bank.

Investments

Commercial banks also extend credit when they purchase securities; and this category of assets

may be especially attractive when loan demand is slack, as a way of employing loan able funds.

A very high percentage of their securities represent the obligations of government units. The

reminder is corporate notes and bonds.

Secondary Function

The secondary functions of commercial bank are also known as agency functions. The bank

charges minimum fees for undertaking these functions. The secondary of commercial bank are as

follows:

Collections of credit instruments: Commercial banks receive and accept credit

instruments such as cheque bills of exchange and bank drafts of customers and make

payments against them.

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Income receiving and payments: Commercial banks receive dividend, interest on

debentures and bonds of customers. They also receive and make payments of insurance

premiums, rent and incomes taxes of their customers.

Purchase and sale of securities: Commercial bank purchase and sale the securities like

shares, debentures of their customers in stock exchange and other capital markets.

Remittance of money: Commercial banks remit the money of their customers from one

place to another on their request.

Contingent Function

The contingent functions of commercial bank are known as general utility functions. It performs

the following types of activities:

Safety of valuable goods as gold diamonds and documents.

Issue of credit instruments such as travelers cheque, letter of credit, drafts, master cards,

etc.

Exchange of foreign currency under the direction of NRB.

Publication of monthly and annual journals, bulletins, reports etc.

1.2 Introduction to the Organization

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"unrise Bank imited is 3Rising to "erve0 by defining new levels of services and products. -t is

with an ob$ective of establishing a tradition of best practices in corporate governance has a

policy directed not only towards the regulatory and legal requirements but also towards the

framework of best business practices, transparency and disclosure to the stakeholders. The

corporate governance framework in "unrise Bank comprises of an effective independent Board,

separation of the Board%s supervisory role from the e!ecutive management and the constitution

of Board *ommittees, comprising of independent directors to oversee critical areas.

"unrise Bank has a Board of +irectors, constituted as per the compliance of Banking and

#inancial -nstitution Act, *ompany Act and other agreements with stock e!changes to meet the

criteria of best practices in corporate governance. The Board functions as a full Board and in

form of various committees constituted to address specific areas.

"unrise Bank, within its relationships with its borrowers, depositors, agents, shareholders and

other stakeholders has always maintained its fundamental principles of corporate governance 5

that of integrity, transparency and fairness. #or "unrise Bank, corporate governance is a

continuous $ourney, seeking to provide an enabling environment to harmonize the goals of

ma!imizing shareholder value and maintaining a customer centric focus. "unrise Bank corporate

governance encompasses its business practices, its values and personal beliefs, reflected in the

actions of each of its employees.

As a bank founded by reputed entrepreneurs, "rB understand the needs of growing economy

and are well equipped serve them. -ts team of seasoned banking and management professionals

have dedicated them to establishing an institution determined to cater to the needs of all be it big

or small. Aspirations of all are its benchmarks we always be 3Rising to "erve0.

Capital structure:-

Paid-UP Capital: NRs 2,015 Million.

Initial Public Offering (IPO): NRs 375Million. The authorized capital of the bank is NRs

5000Million.

Individual Promoters: 70%

General Public: 30%

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SrBL understands that banking is no longer a number game. Success for SrBL is not just their

profit margin. It understands that customer is looking for a friend. A friend, who will safeguard

consumers savings and give all consumers the best value for Srbl. For SrBL success is

costumers hand in friendship.

70%

30%

Individual Prmoters General Public

Figure 1.1: Shareholding Pattern

1.2.1 Objectives of SrBL

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In order to get success in its business and become one of the lending banks SrBL has been

focusing on its set objectives right from the beginning. Objectives of the SrBL are mentioned

below:

To continuously e!pand Banks operation in systematic manner

To become a ma$or innovative Bank and provide top of the line service

To build an (R team that continuously supplements the growth of the organization

To be vigilant to the evolving economy and align our operations accordingly

1.2.2 Vision of SrBL

"unrise Bank places great importance on the challenge of bringing satisfaction and e!citement to

its customers. The Bank listens more intently to the costumers at all times and seek new ways to

enhance the quality of its product and services. "unrise also believes that it is a

3R6AT-78"(-' BA890 and that the customers would be provided with 3'ersonalized

"ervices0 through dedicated staff members to properly address their concerns

1.2.3 Mission of SrBL

*ontinuous offering of tailor made banking service to all levels of society, with no constraint on

time, location, size of transactions and all aspirations.

1.2.4 Board of Directors

r. otilal +ugar

Chairman

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+r. Bhogendra 1uragain

Director

Mr. Shriniwas Sarda

Director

r. (ikmat Bahadur ali

Director

Mr. Malchand Dugar

Director

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Mr. Shrawan Kumar Goyal

Director

Mr. Suresh Kumar Basnet

Director

Er. Bachh Raj Tater

Director

1.2.5 Management Team

Figure 1.2: Management Team.

1.2.6 Department Head

16

Mr. Surendra Man radhan

*hief 6!ecutive 7fficer

Ms. !sha "ana !dhikary

+eputy 1eneral anager

Mr. Ba# "am Bista

+eputy *hief 6!ecutive 7fficer

Mr. "o$in %e&a#

Assistant 1eneral anager

Mr. !run ra'u#i

*hief anager


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Name Section

r. "an$aya 9umar "iddhi Risk anagement +epartment

r. 'ritam al "hrestha 1enera "ervice +epartment

r. ano$ 8eupane *orporate Banking +epartment

r. -shwar 9umar 'athak *ompliance +epartmentr. Ritesh Aryal "6 Banking +epartment

r. 'raveen Acharaya *orrespondent Banking : Remittance 'romotio

Team

r. Tika Bhattarai egal +epartment

s. 8eema 'radhan Retail Banking Business +evelopment 'romotion :

onitoring +epartment

r. 8abin "harma Branch "upport : 7perational *ontrol +epartment

s. "weety Agrawal *entral Account : Treasury Back ; #inancial 'lannin

: Treasury Back Team

r. 8arayan 'rasad 1himire -nformation Technology and "wift

s. 'rabhavati Bista (uman Resource 'lanning : +evelopmen

+epartment

r. andeep Bhattarai -n charge*ards *enter

Table 1.2: Department Head.

1.2.7 Organization Structure

1.3 Organizational Structure of SrBL

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Figure 1.3: Organizational Chart of SrBL

1.4 (ntroduction of Business Desk De&artment !nd Credit De&artment

Business desk department is very important department of any bank in order to make first

impression. Firstly, customers enter into the business desk of the Sunrise Bank and encounters

with staff. If customers satisfied from Business Desk then s/he will increase his transaction in the

bank Like the Same, Creditis the backbone of the any bank and without it) there is no meaning

of operating banks. The growth and e!istence of bank depends upon the amount of loan it

provides to general public, companies, etc. Banks have to follow the effective credit policy so

that bank can recover its loan on time.

1.4.1 Product and Services

SrBL is one of the successful commercial bank, which offers various kinds of product to itscostumer in order facilitate and fulfill the need of customers. Followings are the products and

services provided by SrBL.

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Saving Deposits

Sunrise Senior Citizen Savings: "unrise "enior *itizen +eposit is meant for those

individual customers of s need and facilitate them with banking services and

facilities to suit their requirements. 4ith no limitation in deposit and withdrawals, the

product provides emphasis on personalized services to the customers.

Normal Saving: The 8ormal "avings +eposit is meant for those individuals and

households who have the habit of saving hardearned money from their regular earnings

so that they can use it when they require. 4ith no limitation in deposit and withdrawals,

the product provides emphasis on personalized services to the customers.

ink Bachat )ata* "unrise 'ink Bachat Account ?"r'BA@ targets women customers

taking into account their unique banking habits that may help them increase their access

to productive resources.

Sunrise +at Sa,ings* "unrise #at "avings +eposit offers highest interest rates. The

product targets interest sensitive customers who also give priority to attractive features

that come along with the product.

Sunrise Su&er Sa,ing* "unrise "uper "avings Account is a product targeted to

customers with high account turnover.

Sunrise -c#usi,e Bachhat )hata* "unrise 6!clusive Bachhat 9hata a special

savings deposit product has been designed to cater to the needs of 6!clusive clients.

The product addresses the needs of those clients who wish to have comparatively higher

interest rates in any of the "avings 'roducts.

Sunrise )rishi )ar'a Sa,ings !ccount: "unrise 9rishi 9ar$a "avings Account

is basically for lower and middle class individuals engaged in agricultural occupation.

Sunrise Ba# Bachat )osh) "unrise Bal Bachat "avings Account enables parents who

wish to deposit amount in their children>s account that could be useful later in their life

such as to meet educational e!penses and others. As children grow older and reach age of

, the deposited amount is allowed to withdraw. The product inculcates saving habits

among children

Sunrise Disa$i#ity Sa,ing !ccount: "unrise +isability Account is targeted to such

a group of customers who are physically impaired and or handicapped. The product is

newest of its kinds in the entire Banking industry.

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Sunrise Share Dhani )hata)

"unrise "hare +hani 9hata is developed for

shareholders of "unrise Bank imited targeting the share applicants of the bank who

have been allotted shares in the -nitial 'ublic 7ffering of the Bank. This product also

covers those shareholders who purchase shares from secondary market and become

shareholder of the bank.

Sunrise Share Lagaani )hata*"unrise Bank>s "hare agani 9hata is targeted to

the section of general public that seek to invest in shares of "unrise Bank imited or any

other Banks licensed by 8epal Rastra Bank.

Suryodaya "emit Bachat )hata*"uryodaya Remittance Bachat 9hatta has been

designed to solicit deposit accounts of the 8epalese working abroad.

/SD Sa,ings !ccount*"unrise Bank imited has introduced the foreign currency

deposit feature to cater to the niche market of foreign workers currently working in

8epal, 8epalese involved with foreign trade, 8epalese working for foreign

organizations.

-/" Sa,ings !ccount*"unrise Bank imited has introduced the foreign currency



organizations

0B Sa,ings !ccount) "unrise Bank imited has introduced the foreign currency



organizations.

1.4.2 +ied De&osits*

#i!ed +eposit Accounts are designed for individual and corporate houses who qualify for

interest earning on the idle funds for a period of time.

#i!ed +eposit Accounts are opened for a fi!ed period of time. #i!ed Accounts provide the

depositors with competitive interest at the rates agreed upon the time of opening the deposit.

1.4.3 Loans*

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"rB provides wide range of credit related to the corporate, small and medium enterprises, and

individuals. ending terms are designed in such way that the customers can benefit the

ma!imum. Type%s personal solutions of loans, which are provided, are as follows)

Sunrise 0har )ar'a) 4e offer you "unrise 1har 9ar$a to help you achieve your

dream of owning your home. The interest rates are highly competitive and we offer both

short and long term loans as per your requirement duly supported by the customers>

income source.

Sunrise Sa'i#o )ar'a) "unrise "a$ilo 9ar$a can be disbursed for social, personal,

business purposes. This fle!ible loan allows the borrower to fulfill all personal financial

requirements. 4e offer loans in line with the clients> repayment capacity and the usage

of the loan.

Term Loan) 4e will finance your requirements to acquire fi!ed assets or an e!isting

pro$ect. This is a long term loan and is generally available for acquiring or purchasing

machinery, equipment, land and building. The tenure of repayment of the loan is based

on the pro$ect>s duration and the estimated; e!isting cash flow.

1.4.4 Loans and !d,ances)

"unrise Bank is committed to growing together with your business. Cour new ventures and

business plans will be catered to as we help you realize your financial ambitions. 4e haveRelationship anagers who are dedicated to providing personalized services, and are

responsive to your every need. 4e offer business and personal loans to suit your need for

various occasions. Types of business solutions of loans and advances are as follows)

)rishi )ar'a* "unrise 9rishi 9ar$a is one of its kinds in banking fraternity targeted

mainly to lower and middle class individuals engaged in agricultural occupation, based

on agro trading; industries and other related to agricultural sectors.

Demand Loan*+emand loan to help you to build up your stock and receivables to adesired level, against which the loan will be disbursed. 'eriod of repayment will be at

the duration agreed by the borrower at the time of application $ustifiable by his; her

business activities.

+ied Term Loan*4e will finance your requirements to acquire fi!ed assets or an

e!isting pro$ect. This is a long term loan and is generally available for acquiring or

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purchasing machinery, equipment, land and building. The tenure of repayment of the

loan is based on the pro$ect>s duration and the estimated; e!isting cash flow.

(m&ort Loan) 4e provide import loan to finance domestic and international trade

transactions through letter of credit. 4e will finance to import your goods in the form of

trust receipt up to a percentage of the total ;* amount as decided by the anagement.

,erdraft Loan) 4e offer overdraft loan to finance your daily working capital

requirement and to support your stock build up.

Short Term #edge Loan) 4e offer short term pledge loans against the stock after

verification of the same. The stock, however, is kept under lock and key of the Bank and

the loan disbursed and settled in pro rata basis with the stock pledged and sold.

-&ort +inance) 4e offer to finance various e!port requirements such as pre

shipment loan and postshipment loan, documents negotiation ; documentary bill

purchase etc.

ire urchase) 4e finance the purchase of vehicles used for both consumer and

commercial purposes. &sed Dehicle E higher than the published rates of 8ew

Dehicle

De&ri,ed Sector Loans) As part of our *orporate "ocial responsibility, we offer

deprived sector loans to various organizations working for the upliftment of the poor,

especially in the rural areas.

Sunrise SM- Loan) 4ith the aim of meeting the financial ambitions of small and

medium businesses, we offer "unrise "6 loans to meet the working capital as well as

fi!ed term requirement of the applicant.

Loan !gainst Bank 0uarantee) "unrise Bank e!tends various loans, funded as

well as nonfunded, against unconditional guarantees issued by #irst *lass -nternational

Banks.

Loan against 0o,ernment Bond) The Bank can e!tend loans against various

Bonds ; "tocks; 'romissory notes issued by the 1overnment; 8epal Rastra Bank.

1enerally, upto F=E of the value of such Bonds will be disbursed as oan. But no loans

shall be sanctioned against 1overnment; 8RB Bonds which are specially marked as

ones against which loans cannot be granted. "imilarly, the Bank can e!tend loans against

bonds issued by commercial Banks for fulfillment of their regulatory capital

requirement.

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Loan against Share) "unrise Bank can advance loan against listed shares of 'ublic

td. companies. "unrise Bank shall advance loan against listed shares of those

companies which are categorized under A and B by the 8epal "tock 6!change td. The

Bank can finance up to =E of the market value of the share, in case of A category

companies and only up to


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Remittance is basically is transferring of money from one place to another through tele!, swift,

draft, wire, etc. Remittance is basically of two types)

i. -ncoming Remittance

ii. 7utgoing Remittance

"rB offers variety of remittance services suiting different sevices needs of its customers. "rB

remittance services covers)

S5(+T Transfers* "rB offers fast, reliable remittance services in association with

correspondent banks through "4-#T, which is a secure mean of transfers commonly

used for interbank financial transactions. *ustomers can receive and send remittances

worldwide through the bank%s "4-#T transfer services.

Demand Draft* "rB issues drafts payable in a range of currencies and at various

international banks. -t also facilitates collection an encashment of demand drafts drawn

on other banks.

Tra,e#ers Che6ue* "rB is a prominent service provider for the buying and selling of

traveler%s cheque.

1.4.7 ther Ser,ices*

The "rbl bank provides the following services to the customer are as follows)

Locker* "unrise "afe +eposit ocker is facility furnished to the individual and

institutional customers who prefer to safe deposit precious gems : $ewelries and

important documents to evade the probability of increasing theft, burglary and fire. The

"afe +eposit ocker has been the first choice for the safest custody of the valuable goods

with fle!ibility of time to store and take away when required. The Bank has varied sizes of

"afe +eposit ocker to select from. ockers facility can be availed from selective

Branches of the Bank.+uring the festive and wedding seasons, "unrise Bank td has been

offering discount on "afe +eposit ocker. This year also, we have offered discount up to

G


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Table .I) Tariff on Annual Rental *harges and 9ey +eposit are as hereunder:

Sunrise 8isa De$it Card* "unrise Bank brings you a world of convenience by

offering "unrise Disa +ebit *ards

a. Sunrise 8isa De$it Card 9 Domestic :8a#id in %e&a# and (ndia on#y;) *ustomers can

now apply for "unrise Disa +ebit *ards 5 +omestic from any of our branches. This card

can be used in any of the Disa ATs and Disa erchant locations, both in 8epal and

-ndia.

+eatures*. Dalid in 8epal and -ndia only

H. 4idely Acceptable and "ecure

I. "ignature based +ebit *ard. '-8 entry required only in ATsJ. "upplementary *ard can be issued to your spouse, children or parents.

$. Sunrise 8isa De$it Card 9 (nternationa#) *ustomers can now apply for "unrise Disa

+ebit *ards 5 -nternational from any of our branches. This card can be used in any of the

Disa ATs and Disa erchant locations worldwide. *ustomer applying for "unrise Disa

+ebit *ard 5 -nternational must meet any of the below criteria)

i. ust have convertible foreign currency account in any of our branches

ii. Dalid Disa and *onfirmed Air Ticket for travelling abroad

iii. 8epal Rastra Bank permit for foreign currency for travelling abroad

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Locker Si


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+eatures*

. Dalid 4orldwide

H. 4idely Acceptable and "ecure

I. "ignature based +ebit *ard. '-8 entry required only in ATs

(nternet Banking: -nternet banking service connects you safely to your bank account

anytime, anywhere. Cou may perform banking transactions electronically without visiting

the bank premises. "unrise online banking inhabits many of the banking activities which

previously that could only be performed by visiting the bank.4e provide following -nternet banking facilities)

i. Balance 6nquiry

ii. "tatement

iii. -nterest "tatement

Suryodaya "emit) 3"&RC7+ACA R6-T0 is a webbased online money transferproduct of the Bank designed to facilitate transfer of funds by 8epalese e!patriates

working ; living in foreign countries as well as for +omestic Transfer of funds.

"&RC7+ACA R6-T is secured by means of Deri"ign and +igital *ertificates mapped

to each user separately. -t is fast, affordable and secure.

Remittance Business arrangement with more than twelve 6!change *ompanies from

eleven different countries for international remittance business and a huge network of

more than J== payout locations spread across the country for disbursement of remittance

payments are some of the prominent achievement made by the bank during a short span

of time.

Sunrise MABanking) (ow easy your life would be when you can bank without going

to your bank. ake enquiries for your bank balance, or transfer funds to any accountsK

pay your utility bills, recharge your mobile phones and much more $ust by a click from

your obile 'hone.

!ny Branch Banking System :!BBS;) "rB introduced Any Branch Banking

"ystem with an ob$ective to provide the customer with the most convenient service

possible. *ustomer can withdraw or deposit cash, receive information about the balance

in their A;* or obtain statements of accounts from "rB any branch.

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1. !rea of Study

The Bachelor in Business Administration (BBA) is bachelor degree program, which is affiliated

by Purbanchal University consisting of eight semesters of 15 credit hours. According to the

designed program, students of eight semesters should involve in the internship program of eight

weeks and finally should prepare report relating to the activities done as being the part of bank.

This internship program has been very fruitful in providing the practical knowledge from the

workplace, which has been designed for the partial fulfillment of the degree of Bachelor in

Business Administration (BBA) .This report, has been prepared as the requirement of Purbanchal

Universitys Syllabus of four years course. This internship program of BBA helps the internee to

apply what they have learnt in classroom on practical life. This supports the internee to acquire

social, technical and communication skills to work effectively and efficiently at work place.

Internship programs helps internee to view all the activities of the organization closely. From the

internship, internee can acquire many thing i.e. can develop confidence level, can progress

communication skills and can get ideas about how to enroll them in working environment, how

to deal with different kinds of person and so on. As a whole, the internship can be defined as the

practical application of techniques, which helps to use learned theories in classroom in to

practice that enhances the knowledge and experiences of the student. Thus, this study consists of

internees working experience in different reputed organization for duration of eight week.

Banks are the financial institution, which plays the very significant role of intermediation

between investors and the users of the fund. Banks are intermediator which circulates the

funding, the economy.

While doing these activities bank faces various risk elements. In order to eliminate or manage the

risk up to certain level Nepal Rastra Bank-central bank of Nepal has come up with the capital

adequacy concept on the basis of BASEL ACCOORD II.

1.6 Objectives of the StudyThe main objective of the study is to gain practical knowledge from the working place of

Sunrise Bank. However, followings are the main and specific objectives:

To obtain practical ideas and knowledge of the workplace.

To understand the banking operations in the practical perspectives.

To apply the theoretical knowledge in the real environment place.

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To complete the requirement for BBA set by the Purbanchal University.

To identify the different types of services provided by bank.

To learn about processes related to different service especially on business desk,

remittance and credit service.

1.7 Research Methodology

1.7.1 Organization Selection

For a student of finance the normal type of organization for internship is commercial bank, in the

first place and the financial companies, in the second place and other reputed organizations

which deal with marketing and accounting in the third place. Selection of right organization forinternship is crucial decision. Every organization may not provide the good environment of

acquiring knowledge for the internship student. Sunrise Bank has been selected for the

internship, which helps internee to learn different subject matter.

1.7.2 Placement

The internee was placed at Gairidhara, Main Branch. First two weeks the internee was given

work related to Remittance of Outward Clearance.

After Completion of work the internee was placed at the business desk department for two weeks

in order to give the knowledge about how to deal with different customers because business desk

is the first place where customers encounters initially. And knowledge about interest rate on

different kinds of saving products was given. After completion of four weeks internee was

rotated to credit departments for three weeks to gain the knowledge about how to perform the

task in credit department. In remaining one week internee was rotated to collect feedback of

bank, credit, clearing.

1.7.3 Duration

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The total duration of internship was eight weeks. Internee started internship from August 27,

2013 and successfully completed on October 26, 2013.

Completing, the internship at Sunrise Bank Limited, the internee was able to gain in- depth

knowledge regarding the functions of the different department of the bank that helped a lot in

grooming the interpersonal skills, managerial skills. During the course of internship, internee

was able to learn about the banks culture, working environment and the working procedure of the

various departments.

Table 1.4: Duration of Internship in various departments at Sunrise Bank ltd.

Departments

Working

1st 2nd 3rd

Remittance

Business Desk

Credit Department

1.7.4 Activities

During the internship of eight weeks, internee performs various activities in various departments

under the supervision of head of each department respectively. Internee performs various

activities in remittance, business desk departments and credit department respectively

.

1.7.5 Sources of Information

Both primary as well as secondary data are used in this study. Primary data are used from the

observation and inquiry to the staff of the bank and field visit. Secondary data are collected from

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annual report of Sunrise Bank, www.sunrisebank.combrochure of the bank and different books

and report.

1.7.6 Data Collection Procedure

Primary data are collected from the interview to the staff of the bank where as the secondary data

are collected from the annual report, audited financial statements, website and brochure etc.

CHAPTER II

LITERATURE REVIEW

30
http://www.sunrisebank.com/http://www.sunrisebank.com/


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Overview

This internship program has been very fruitful in providing the practical knowledge from the

workplace, which has been designed for the partial fulfillment of the degree of Bachelor in

Business Administration (BBA) .This report, has been prepared as the requirement of Purbanchal

Universitys Syllabus of four years course. This internship program of BBA helps the internee to

apply what they have learnt in classroom on practical life. This supports the internee to acquire

social, technical and communication skills to work effectively and efficiently at work place.

Internship programs helps internee to view all the activities of the organization closely. From the

internship, internee can acquire many thing i.e. can develop confidence level, can progress

communication skills and can get ideas about how to enroll them in working environment, how

to deal with different kinds of person and so on. As a whole, the internship can be defined as the

practical application of techniques, which helps to use learned theories in classroom in to

practice that enhances the knowledge and experiences of the student. Thus, this study consists of

internees working experience in different reputed organization for duration of eight week.

However, during the period of internship, Internee gets the following opportunity for extending

their Knowledge into practices is:

To obtain practical ideas and knowledge of the workplace.

To understand the banking operations in the practical perspectives.

To apply the theoretical knowledge in the real environment place.

To complete the requirement for BBA set by the Purbanchal University.

To identify the different types of services provided by bank.

To learn about processes related to different service especially on business desk,

remittance and credit service.

CHAPTER III

RESPONSIBILITY GIVEN AND ACTIVITIES CARRIED OUT

Background

The internship program is conducted in order to enhance the knowledge that is learnt in the

classroom. The theoretical knowledge becomes the base for doing practical job in field. This type

of problem provides opportunities to face the ups and downs of the situation during the practical.

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This helps to generate the problem solving ideas within oneself by taking into account all the

factors involved during the work. Similarly, it supports the students to acquire social, technical

and communication skill to work effectively in industry.

Although there are various departments in Sunrise Bank but internee got the opportunity to work

especially in remittance, credit and business desk department. Internee spends two weeks in

remittance department, two weeks in credit department, and two weeks in business desk

department, three weeks in credit department and remaining one week are allotted in feedback

collection, department. During these two months internee learned various thing about remittance

like Cheque outward clearance, making draft, keeping records in files, preparing mangers

cheque, fill up the Bi.Bi.Ni form, using cheque writer, doing photocopy, scanning, general

kwoledge about Temenos(T24) etc. and business desk like dealing with customers, documents

require for account opening, account checking, through the use of T24, ideas about the balance

certificate, etc. Internee got little ideas about the credit, and letter of credit.

3.1 Analysis of Activities Done and Problem Solved in Business Desk

Department

Business desk department is very important department of any bank in order to make first

impression. Firstly, customers enter into the business desk of the Sunrise Bank and encounters

with staff. If customers satisfied from Business Desk then s/he will increase his transaction in the

bank. As the internee worked at business desk department, the internee learned different aspects

of this department such as dealing with customers, different types of account facility provided by

SrBL, account opening process, interest rate, closing of account, process of acquiring debit card

facility, account checking and printing statement by using Temenos(T24) etc.

Intemee opens various types of account of number of customers, which are explained below:

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Current Account

In current account, the bank undertakes the obligation of paying all cheques drawn against it by

the customer till it has adequate funds of the customer with it. It is a running account and

therefore, it never becomes time barred. The bank doesnt allow any interest amount on current

deposit. The depositor is free to deposit and withdraw money whenever required. The primary

objective of current account is to save customers or businessman from the risk of handling cash

themselves.

Features: Minimum Balance- NPR 1,000 and unlimited withdrawal and deposited.

Facilities:

Anywhere Branch Banking Services

Extended Banking Hours

Standing Instruction is accepted looking at the feasibility of the request.

Cash Management

Free Chequebook

Documentation:

For Limited Liability Company/Social Organizational/School

Completed Account Opening Form

Board Resolution to Open and Operate the Account

Certificate of Registration/Incorporation

Articles of Association

Memorandum of Association

Income Tax Certificate (PAN Card)

Evidence of Identification of Account Operator (Citizenship/Passport/Driving

License/Voters ID)

Two Recent Passport Size Photographs of Account Operators

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For Propritorship/Partnership Firm


Certificate of Registration/Incorporation

Income Tax Certificate(PAN Card)

Partnership Deed (In case of partnership Firm)

Evidence of Identification of Account Operator (Citizenship/Passport/ Driving

License/Voters ID)

Two Recent Passport Size Photographs of Account Operators

For Personal


Evidence of Identification of Account Operator (Citizenship/Passport/ Driving

License/Voters ID)

Two Recent Passport Size photographs of Applicant/Account Operators

Introduction by an Accountholder of Sunrise Bank.

Sunrise Senior Citi


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The account holders shall en$oy the discount in various sectors and outlets for which the

Bank shall provide the membership card =.


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M -nterest Rate) I.== percent per annum

M -nterest *alculation) 7n +aily Basis, Nuarterly compounding

M inimum Balance) 8'R ==

+aci#ities*

M *heque Book

M D-"A *ard

M -nsurance *overage for Accidental +eath and 'ermanent +isability

Documentation*

Two Recent 'assport "ize 'hotographs of Applicant; Account 7perator

6vidence of -dentification of Account 7perator?*itizenship;'assport;+rivingicense;Doter%s -+@

&tility Bill 'ayment ?-f 'ossible@

(%) B!C!T )!T!

(ntroduction*

"unrise 'ink Bachat Account ?"r'BA@ targets women customers taking into account their unique

banking habits that may help them increase their access to productive resources.

roduct Descri&tion)

M -nterest Rate) J.== percent per annum

M -nterest *alculation) 7n daily basis, Nuarterly *ompounding

M inimum Balance Required) 8'R ==

+aci#ities*

M #ree Account "tatement,

M #ree ABB",

M #ree *heque Book,

M #ree 6Banking #acility,

M #ree "" Banking,

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M ocker +iscount,

M -nsurance *overage for Accidental +eath and 'ermanent +isability

Documentation*

Two Recent 'assport "ize 'hotographs of Applicant; Account 7perator

6vidence of -dentification of Account 7perator?*itizenship;'assport;+riving

icense;Doter%s -+@

&tility Bill 'ayment ?-f 'ossible@

S/%"(S- +!T S!8(%0S

(ntroduction*

"unrise #at "avings +eposit offers highest interest rates. The product targets interest sensitive

customers who also give priority to attractive features that come along with the product.

roduct Descri&tion*

M -nterest Rate)


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6vidence of -dentification of Account 7perator?*itizenship;'assport;+riving

icense;Doter%s -+@

&tility Bill 'ayment ?#or ocal 'eople@

-ntroduction By an Accountholder of "unrise Bank ?-f 'ossible@

S/%"(S- S/-" S!8(%0

(ntroduction*

"unrise "uper "avings Account is a product targeted to customers with high account turnover.

roduct Descri&tion)

M -nterest Rate) I.H< percent per annum

M -nterest *alculation) 7n +aily basis : Nuarterly compounding

M inimum Balance) 8'R H,


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"unrise 6!clusive Bachhat 9hata a special savings deposit product has been designed to cater to

the needs of 6!clusive clients. The product addresses the needs of those clients who wish to have

comparatively higher interest rates in any of the "avings 'roducts.

roduct Descri&tion)

M -nterest Rate) J.G< percent per annum

M -nterest *alculation) 7n +aily Basis, Nuarterly compounding

M inimum Balance) 8'R


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Application #orm;etter

*ompletely #illed Basic -nformation "heet

*ompany Registration *ertificate

'A8;DAT Registration *ertificate

emorandum of Association ; Articles of Association of the company.

Board inutes.

ist of +irectors *ertified by *ompany Registrar 7ffice.

*opy of *itizenship of +irectors and H'assport "ize 'hoto

8et 4orth +eclaration

ultiple Banking +eclaration

#amily +etails

*urrent account to be opened at branch;bank.

Documents of ro&erty

alpur$a

Tiro Rasid

*harkilla

Blue 'rint

Trace

ap of Building

Building Approval; 8aksha 'ass

*ost estimation ?in case of new building construction@

"ates of (nterest

Table I.) Rates of -nterest

De&osits*

S.% roducts Minimum

Ba#ance

(nterest "ate

:&.a.;

!. Sa,ing roducts

. 8ormal "aving ?C*@ 8'R ==.== I.==H. "unrise "uper "avings 8'R H,


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. "uryodaya Remit Bachat

9hata

8'R ==.== I.G

Remake of Intern Report

Documents

Transcript of Remake of Intern Report