A

SUMMER TRAINING REPORT ON

“ A STUDY OF CUSTOMER SERVICE OF PRABHU
BANK LIMITED NEPAL”

SUMMER TRAINING PROJECT REPORT

Submitted in partial fulfillment of
BACHELORS OF BUSINESS ADMINISTRATION
University School of Business
CHANDIGARH UNIVERSITY, GHARUAN.

(2016-2019)

Supervised By:- Submitted By:-

MRS. Mansi Shukla Ankit Kumar Gupta
Assistant Professor. 16BBA1500 (Sec.5E)
Chandigarh University.
 GUIDE CERTIFICATION
This is to certify that Mr. Ankit Kumar Gupta with the UID 16BBA1500 has
completed the project work titled “Customer Service department of Prabhu
Bank Limited ,Gaur (Nepal)”under my guidance for the partial fulfillment of
the project work in semester 5 of Bachelor of Business Administration
course.

Signature.
……………………..
Name of the Faculty Guide:-
MRS. Mansi Shukla
Assistant Professor.
(CHANDIGARH UNIVERSITY)
 DECLARATION

I hereby declare that this internship report entitled “PRABHU BANK LIMITED”
has been carried out under the guidance of Mrs Mansi Shukla and submitted
to Chandigarh University in partial fulfillment of BBA degree.
I further declare that this project report is a result of my own efforts and that
it has not been Submitted in part of or in full of to any other Universities or
Institution for the award of any degree.

.............................
Name:- Ankit Kumar Gupta
UID:- 16BBA1500
Sec:- BBA 5E
 ACKNOWLEDGEMENT

In the today rapid changing world, the financial sector plays an important role in the
economic development of the country, more in the context of developing nation. Hence
I’m thankful to Chandigarh University for providing us the opportunity to allow us to
perform a practical field work.

It’s my great pleasure to perform the practical activities in the Apex body of the financial
institution i.e. Prabhu Bank Limited. The completion of the internship and the report has
been possible only because of the appreciated support of many people. I benefited
immeasurably from their knowledge suggestion and feedback. I express my sincere
gratitude to Mr. Hemant Niraula, bank manager for supervising me throughout my
internship period.

I am very grateful to all the staffs of Prabhu bank, Gaur (Nepal) who gave me their
valuable time in guiding me throughout the training period and helped me in preparing
the final report.

My heartfelt thanks also go Mr. Ravi Ranjan Thakur And Mr. Prem Chandragiri, my advisor
for providing me with continuous support during the internship program and report
writing.

I would like to appreciate and acknowledge my other faculty for providing me an

opportunity and also helping me in conducting a research and a field work at ‘Prabhu
Bank Limited’ as partial fulfillment of my BBA program at Chandigarh University. It was a
great educational as well as practical learning experience to conduct such research work.

Finally, I appreciate all of them who have become a part of this report. This page is
dedicated to those people who have contributed a lot in successfully completing the final
report.
 LIST OF ACRONYMS

ATM: Auto Teller Machine

NRB: Nepal Rastra Bank

NEPSE: Nepal Stock Exchange

CSD: Customers Service Department

SWIFT: Society for Worldwide Interbank Financial Transaction

POS: Point of Scale

SWOT: Strengths Weaknesses Opportunities Threats

PIN: Personal Identification Number

RRB: Rastriya Banijya Bank

ABBS: Any Branch Banking Service

 CONTENTS
CHAPTER 1
INTRODUCTION
1.1 Introduction of Prabhu Bank …………………………………………………………………… 1-1

1.2 Mission/ Vision and Aims ……………………………………………………………………….. 1-2

1.3 Organizational strategies ………………………………………………………………………… 2-3

1.4 Major services provided by Prabhu ………………………………………………………… 3-6

1.5 Functions of Prabhu Bank ………………………………………………………………………. 6-10

1.6 Goals and Objectives of Internship ………………………………………………………… 10-10

1.7 Customer Service Department ………………………………………………………….……. 11-12

CHAPTER 2
Review of Literature
2.1 Background of the study ……………………………………………………….………………. 14-15
2.1.1 Objectives of the study …………………………………………………………………………………… 15-15

2.1.2 Limitation of the Study ………………………………………….……………………………………….. 15-15

2.2 Meaning of Bank …………………………………………………………………………………… 15-16

2.3 History of Bank ……………………………………………………………………………………… 16-17

2.4 Development of banking industry in Nepal ……………………………………………. 17-18

CHAPTER 3
Database and Methodology
3.1 Definition……………………………………………………….……………………………………… 20-20

3.2 Primary Data……………………………………………….……………………….……………….. 21-21

3.3 Secondary Data…………………………………………………….……….……………………… 21-22

CHAPTER 4
Data Analysis and Interpretation……………….……………………………………….. 24-33
CHAPTER 5
REPORT ABOUT INTERNSHIP PROGRAM
5.1 Background of Internship………………………………………………………………………. 35-35

5.2 Internship Activities ……………………………………..….…………………………………… 35-36

5.3 SWOT Analysis ……………………………………………..….…………………………………… 36-37

5.4 Problem Faced during Internship……………………….………………………………….. 38-38

5.5 Problem Solved in Internship…………….……………….………………………………….. 38-38

CHAPTER 6
Conclusion and Summary
6.1 Conclusion ……………………………………………………………………………………………. 40-40

6.2 Summary ………………………………………..……………………………………………………. 40-41

6.3 Recommendations ……………………..………………………………………………………… 41-41

Bibliography...................................................................................................... 42-42
Appendix…………………………………………………………………………………………… 43-43
 CHAPTER 1
INTRODUCTION
1.1 Introduction of Prabhu Bank
Prabhu Bank Limited operated with a goal of becoming the best bank operational
excellence and superior financial performance. Prabhu Bank, a commercial bank formed
through merger of Kist Bank, Prabhu Bikas Bank, Gaurishankar Development Bank and
Zenith Finance, started its commercial operation from September 14, 2014. The four
financial institutions started joint operation based on final merger approval extended by
Nepal Rastra Bank (Central Bank of Nepal) in August.

It is public limited company incorporated under the Bank and Financial Institution Act,
2006 and Companies Act, 2006. It is licensed under NRB to undertake the commercial
banking services and merchant banking activities in the country. The bank has a paid-up
capital of Rupees 3.21 billion, is the sixth largest commercial bank in terms of capital. The
bank’s capital base has gone up following the merger. Its hold deposits of around Rs 32
billion and maintains credit portfolio of Rs 23.78 billion. The shares of the bank are listed
at Nepal Stock Exchange Limited (NEPSE), the only exchange in the country, as ‘A’
category share.

It has 112 branch offices, 108 ATM kiosks, 631,000 clients and 1,135 staff members. It
stands for customer’s convenience and support. It is driven by values of efficiency in
operation, integrity and a strong focus on catering the needs of every customer by
offering high quality and cost effective products and services. The professional
management team along with dedicated employees is always looking forward to serve
the customers, understand their needs and design tailored products. The bank operates in
highly automated environment in terms of information technologies and communication
systems.

Thus, enabling prompt quality services it has put substantial efforts and investments in
acquiring the best technologies are available to build necessary banking infrastructures.

1.2 Mission/ Vision and Aims

Mission statement

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Our mission is to become a leading bank by providing best quality financial products and
services to our customers, enhancing shareholders value, contributing to the economic
prosperity of the country and creating excellent growth opportunity for our employees.

Vision statement

Our vision is to become the best bank based on operational excellence and superior
financial performance.

Aims

Prabhu Bank was incorporated with the following main aims and objectives:

 Properly mobilizing the available talent, labor and capital for the establishment,
development, expansion and diversification of productive and employment
oriented business in the rural as well as cities and towns. Similarly, providing
necessary financial resources, technical and management consultancy, technology
and training for the same and thereby actively contributing towards the alleviation
of poverty in the country are on its list.

Providing quality and reliable financial services to the general public by protecting the
rights and interest of the depositors and shareholders is another objective it carries.
Mobilizing the financial resources from company’s internal as well as from external
sources from the establishment. Development, expansion and diversification of
agriculture, industry, service, business and other commercially viable projects in the
country and thereby helping the economical development of the country. Acting as
financial resources spread all over the country and mobilizing the same for the economic
development of the country through fair competition. It also aims on providing
technologically innovative services to its customers.

1.3 Organizational strategies

Globalization of business is having significant impact on human resource management. In
information society, human resource is at the cutting edge, which shows that human
resource professionals are becoming much more important in the organization.
Organization considers human resource department as playing major role in staffing,
training and helping manage the people so that people and the organization are
performing at maximum capability in highly fulfilling manner. We believe that competent
people can do miracles even with the small resources and draw wealth out of barren land.
We target to attack the most qualified employees and match them to jobs foe which they

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are best suited for. Our effort is focused to enhance morale and productivity, limit the job
turnover, help the organization increase performance and bring high level of
professionalism in the organization. We indentify, assess and select employees who
embody high level of performance. One of the best and strongest aspects considering our
human resource management is our ‘work ethics’. Work ethics we believe is one of the
most important and must to workplace productivity. Considering the fact that work ethics
and attitude that employees bring to their job each day can affect a firms’ overall
performance. It provides a significant assistant for an organization to build up their store
of hardworking, effective employees even during the times of downs and difficulties.
Thus, human resource management is an integral part of the organization. We effectively
use employees’ skills. Moreover, to improve their skills, we provide training and
development opportunities and increase employees’ satisfaction with the jobs and work
conditions. And, we make sure that our employees are well guided, trained and polished
to ensure the availability, retention and utilization of a competent and willing workforce
in the organization. And, as and, we also ensure that we offer right mixture of rewards to
attract and retain the targeted talents. We follow and believe in recruiting and retaining
those with the history of having good work beliefs principles and knowledge. Nurturing
the kind of cultures that support behaviors that reflect hard work, offering incentives that
translate into superior work performance are important. Team work is our motto and we
aim to bring out the best of our employees and recognize and reward them for what they
deserve.

1.4 Major services provided by Prabhu

Deposits

Prabhu offers an array of deposit products which provides interest rates quite competitive
among the finance company of its class. Equipped with several distribution channels like
cards, largest Network of branches and ATMs and Extended banking hours, Prabhu offers
its depositors the freedom of 24hours a day, 365 days a year access to their deposit
account.

Besides, the regular deposits accounts like current, savings and fixed term deposits,
Prabhu also offers many other special deposit schemes. Prabhu Khutruke Savings Scheme
is introduced mainly for small children and housewives. This saving scheme is intended to
make the young children be aware of saving from their early years. This saving scheme
facilitates not only the children but also housewives and low income earning group since
this account can be operated with minimal balance and regular small deposits.

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ATM Card

Prabhu is providing self service banking to its esteem customers through VISA Debit Card
with collaboration with Smart Choice of Technologies. Customers can transact from the
terminal on free of cost. VISA Debit Card can also be used for shopping and countries like
India and Bhutan.

Mobile Wallet Service

Prabhu Mobile Wallet service is an easy and handy method of doing banking transaction
from mobile phones without having to visit bank. Prabhu Bank customer needs to have
Prabhu Mobile Wallet application software installed in their mobile phones. Using such
application of their mobile phone, one can do various banking activities such as
transaction, enquiry and request.

E-Banking Service
Prabhu eBanking Services is an internet based Service offered by the Bank to its valued
customers. Prabhu eBanking, being an internet based service, is available anytime at
customer’s fingertip with the flexibility to take care of many financial transactions as well
as viewing account statements, requesting cheque books and many more.

Locker Facility
Prabhu also provides locker facility to its valued customers from its own Head office
premises situated in Anamnagar. Prabhu bank has arranged an advance security system
for the security of its customer’s valuables put on locker. Prabhu bank has also insured
every locker.

Additional Services
For the Bank’s deposit relationships, there are other hosts of services available at Prabhu
bank, like implementing Standing instructions on accounts, issuing Balance Certificates,
certifying ‘Good for Payment’ on cheques. The online connectivity of all our outlets makes
it possible to remit funds domestically to and from any of the branches located
throughout the kingdom.

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Lending
Prabhu, through its wide range of flexible products like Demand Loan, Time Loan and
Short Term Loan etc can accommodate all specific needs for the customers. Besides the
regular lending scheme Prabhu Bank also offers many other special deposit schemes.
Housing Loan
This loan makes the dream of owning a home a reality with attractive features available
beyond market offerings at competitive interest rates and extended loan tenure, with
flexible repayment and partial payment features.

Hire Purchase Loan

Prabhu Bank Hire Purchase loan makes commuting easier and owning a two or four
wheeler in reality at attractive interest rates, loan tenures and flexible repayment options
with financing available for large variety of vehicles, with special facilities to draw cash by
pledging a vehicle in the Bank’s name. Prabhu bank has designed a hire purchase loan
scheme to finance the private car or motorcycle to the professionals, self employed,
business executives, and business houses and the transport like trucks, buses, minibuses,
pickup vehicles, microbuses, etc. to the operators, businessman, business houses, etc.

Education Loan
Prabhu’s education loan scheme provides loan for those students who demonstrate
ability, drive and ambition but do not have financial resources to achieve their goals.

Term Loan for Project Financing

Based on the viability of the project, Prabhu Bank provides term loan for project
financing. Before applying for loan the intended party must submit a proposal along with
the feasibility study report of the project. Financing will be made available.

Working Capital Loan

Based on the viability of the project and actual need of fund, Prabhu Bank provides
working capital loan in the form of overdraft. The intended business house should submit
the proposal for working capital loan. This loan will be granted based on the proposal and
will take a form of overdraft.

Consortium Loan

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Due to the changing political situation and the expected peace in the country, we expect
more economic activities in the country. This will attract the large investment
opportunities in the different project. NRB has prescribed the maximum amount of
funding to a single borrower to minimize the concentration of funding. Therefore, single
financial institution is not able to finance the mega project alone. With our expertise, we
are capable of arranging consortium finance for such large projects.

Agriculture Loan
Based on the viability of the agriculture project/ proposal, Prabhu Bank provides
Agriculture Loan to finance the short/ long term financing need of client. This loan is also
provided to purchase tractor, seeds, fertilizers, insecticides, etc.

Loan against Shares and Securities

The recent political development in the country has revived the hope for the economic
development and prosperity of the country. The NEPSE positively responded the recent
development and more activities and an upward trend is seen in the stock market. Those
investors not having fund in hand but wants to invest in stock market can apply for the
loan against shares and securities.

1.5 Functions of Prabhu Bank

Accepting Deposits
The most important function of Prabhu Bank is to accept deposits from the public. Various
sections of society, according to their needs and economic condition, deposit their savings
with the banks.
Therefore, keeping the needs and interests of various sections of society, banks formulate
various deposit schemes. Generally, there are three types of deposits which are as
follows:
 Current Deposits

The depositors of such deposits can withdraw and deposit money whenever they
desire. Since banks have to keep the deposited amount of such accounts in cash
always, they carry either no interest or very low rate of interest. These deposits

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 are called as Demand Deposits because these can be demanded or withdrawn by
the depositors at any time they want. Such deposit accounts are highly useful for
traders and big business firms because they have to make payments and accept
payments many times in a day.

 Fixed Deposit

These are the deposits which are deposited for a fixed period of time. This period
is generally not less than one year and, therefore, these are called as long term
deposits. These deposits cannot be withdrawn before the expiry of the stipulated
time and, therefore, these are also called as time deposits.
The interest rate on fixed deposits are generally high because banks can these
deposits for fixed period without having the fear of being withdrawn. If,
withdrawn before the maturity period bank charges certain amount.

 Saving Deposit

In such deposits, money up to certain limit can be deposited and withdrawn. On

such deposits, the interest rate is very low. The main objective of saving deposit is
to mobilize small savings in the form of deposits. These deposits are generally
done by salaried people and the people who have fixed and less income.

Giving Loans
The second important function of commercial banks is to advance loans to its customers.
Banks charge interest from the borrowers and this is the main source of their income.
Banks advance loans not only on the basis of the deposits of the public rather they also
advance loans on the basis of depositing the money in the borrowers. In other words,
they create loans out of deposits and deposits out of loans. This is known as credit
creation by commercial banks.

Modern banks give mostly secured loans for productive purposes. In other words, at the
time of advancing loans, they demand proper security or collateral. Generally, the value
of security or collateral is equal to the amount of loan. This is done mainly with a view to
recover the loan money by selling the security in the event of non-refundable of the loan.

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At times, banks give loan on the basis of personal security also. Therefore, such loans are
called as unsecured loan. Banks generally give following types of loans and advances:

 Cash Credit

In this type of scheme, banks advance loans to its customers on the basis of bonds,
inventories and other approved securities. Under this scheme, banks enter into an
agreement with its customers to which money can be withdrawn many times
during a year. Under this set up banks open accounts of their customers and
deposit the loan money. With this type of loan, credit is created.

 Demand Loans

These are such loans that can be recalled on demand by the banks. The entire loan
amount is paid in lump sum by crediting it to the loan account of the borrower,
and thus entire loan becomes chargeable to interest with immediate effect.

 Short Term loan

These loans may be given as personal loans, loans to finance working capital or as
priority sector advances. These are made against some security and entire loan
amount is transferred to the loan account of the borrower.

Over Draft
Banks advance loans to its customers up to a certain amount through overdrafts, if there
are no deposits in the current account. For this banks demands security from the
customers in terms of minimum balance and charge very high interest rate.

Discounting of Bills of Exchange

This is the most prevalent and important method of advancing loans to the traders for
short term purposes. Under this system, banks advance loans to the traders and business
firms by discounting their bills. In this way, businessmen get loans on the basis of their
bills of exchange before the maturity period.

Investment of Funds
The banks invest their surplus funds in three types of securities- Government securities,
other approved securities and other securities. Government securities include both,

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central and state governments, such as treasury bills, national savings certificate etc.
Other securities include securities of state associated bodies like electricity boards,
housing boards, debentures of Land Development Banks units of UTI, shares of Regional
Rural Banks etc.

Agency Functions
Banks function in the form of agents and representatives of their customers. Customers
give their consent for performing such functions. The important functions of these types
are as follows:

(i) Banks collect cheques, drafts, bills of exchange and dividends of the shares for
their customers.
(ii) Banks make payment for their clients and times accept the bills of exchange of
their customers for which payment is made at the fixed time.
(iii) Banks pay insurance premium of their customers. Besides this, they also
deposit loan installments, income tax, interest etc. as per requested by the
customer.
(iv) Banks purchase and sell securities, share and debentures on behalf of their
customers.

Miscellaneous Function
Besides the functions mentioned above, banks perform many other functions of general
utility which are as follows:

(i) Banks provide locker facility to their customers for the safe custody of valuable
assets of their customers such as goal, silver, legal documents etc.
(ii) Banks collect necessary and useful statistics relating to trade and industry.
(iii) Banks give reference for their customers.
(iv) For facilitating foreign trade, banks undertake to sell and purchase foreign
exchange.
(v) Banks advise their clients relating to investment decisions as specialist.
(vi) Banks issue letters of credit.
(vii) Bank does the under-writing of shares and debentures also.

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 (viii) During natural calamities, banks are highly useful in mobilizing funds and
donations.
(ix) Banks provide loans for consumer durable like Car, Air-conditioner and Fridge
etc.

1.6 Goals and Objectives of Internship

My internship program was conducted as a partial fulfillment of the Bachelor of Business
Administration-Banking and Insurance (BBA) course under Chandigarh University. The
main objective of this program is to gain experience in the banking sector of Nepal. Some
points to describe my individual objectives of the internship program are as follows:

 To learn how day to day operations of the bank are conducted.

 To understand the importance of all the departments in the accomplishment the
ultimate goal of the organization.
 To be able to relate the text book knowledge with the practical experience gained
in the workplace.
 To be able to develop all the personal and professional skills required in the
workplace.
 To apply theoretical knowledge in the real work environment.

I perceived this internship program as a great opportunity for a meaningful career related
experience. I considered it as a way for preparing myself to enter into job environment
after graduation. My primary goal of internship program was to able to apply theoretical
knowledge in the real world situation and to develop all the necessary skills to perform
my job responsibly.

To achieve the goals and objectives of the internship program, I dedicated a lot of time
and effort in the learning new concepts and ideas from our mentors and supervisors.

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1.7 Customer Service Department
I) MEANING AND CONCEPT:

Customer Service Department is a primary level department that generally deals with
customers SSdirectly and regularly. This department is basically directed towards
providing the surface level assistant to the customers i.e.to provide general information
about banking product and services provided by the bank The department is responsible
for providing the basics materials like deposits vouchers, cheque book ,balance
certificates, cards etc.

Customer service Department is the face of bank .Customer service Department is the
place where the customer initially interacts with the bank. Customer service expands
client focus to include everything that happens within and around the bank, from the way
staff greet clients, to the atmosphere in the waiting room, to the matter in which clients
complains are handled.

II) OBJECTIVES OF STUDY :

With the changing environment of business in Nepal, Prabhu Bank is being highly
accountable & responsible to carry the financial performance which is basically turned
around loan & advance analysis. A well developed banking system is necessary
precondition for economic development in the modern economy. They can contribute to
the country’s economic development in many ways. Banks play important role in all
stages of capital formation.

In such a situation, how well are the financial institutions performing to their respective
field is obviously important to be understood. The major objectives of the study can be
listed as:

 To find out the liquidation position of bank & facilities of giving

loan. To find out condition of bank
 To find conditions regarding loan.
 To prove the loan as an important source of income of the bank.
 To guide the merchandiser , this report would be an assistance for a merchandiser
for the prospective of capital formation risk control and for searching financial
alternatives..
The major objectives of internship program is to acquire learning as well as working
experience and good practical exposure in the real life working situation.

The main objectives of the program is to analyze the activities being carried out in the
banking industry and enhance knowledge and practical skills during the period.

The Following Are The Specific Objectives Of The Study:

 To be adapted to the real life working environment

 Develop interpersonal and communicative skills

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  Develop appropriate skills and attitude.

III) ORGANIZATION SELECTION:

Prabhu Bank Limited Gaur Branch was selected as an organization for the purpose of
carrying on internship program because of the organization in the short period of time.
The bank also provides employment opportunities to the interest as well depending upon
the performance and potentials of the interns and the requirements of the bank.

For the internship, one of the accessible and successful in short period time organizations
will be given higher priority. I have done specialization, I have dropped my curriculum
vitae and application in the bank. After regular follow ups, I was finally appointed as an
intern in Prabhu Bank, Gaur Branch.

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 CHAPTER 2
REVIEW AND LITERATURE

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2.1 Background of the study
Chandigarh University have set up Internship Program under which the students are required to
involve in one of the business or any other organization as interns and prepare internship report
through the experience and research working there. This report is a part of the undergraduate
program under Chandigarh University School of Business which offers management internship to
the students pursuing BBA in the Fourth semester. The internship is an eight week program
designed to provide students an opportunity for a meaningful career-related experience in a real
organizational setting before they graduate. It gives the students an opportunity to practice and
expand their skills and knowledge learned in the classroom in substantive work situation and face
organization problems. In addition, it will help the students earn credit and increased
marketability for the permanent job search while learning more about a specific field and applying
classroom knowledge in a corporate environment. This internship program provides an
opportunity to learn in the real work situation and an experience which can help the students to
achieve their goals.

I have chosen Prabhu Bank Limited for my internship as being a management student, extensive
knowledge of a financial intermediary is a must as it is the major mediator in the financial market
who works to provide financial services and ensure global outreach.

An internship consists of an exchange of services for experience between the student and an
organization. Students can also use an internship to determine if they have an interest in a
particular career, create a network of contacts, or gain school credit. Some interns find
permanent, paid employment with the organizations with which they interned. This can be a
significant benefit to the employer as experienced interns often need little or no training when
they begin regular employment. Unlike a trainee program, however, employment at the
completion of an internship is not guaranteed.

This report is basically a Research internship (graduation) or dissertation internship, my purpose

being the fulfillment of university participation criteria as well as the need of organizational
exposure and acceptance. There is wider diversification in a commercial bank being a player of
financial market and an intern will not remain confined to a particular subject. Therefore choosing
a bank can be perceived as a wise decision as they can learn wider area under same roof.

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Prabhu Bank Limited is a financial intermediary who is primarily responsible for the transfer of
monetary resources from the net savers to the net users. It has head office at Anamnagar,
Kathmandu and corporate office at Kalimati, Kathmandu. This bank was chosen for the internship
purpose because it was founded by the key economic players of Nepal and also it is one of the
first class “A” commercial bank to have a successful merger with another class “A” commercial
bank. I had a keen interest on knowing how it worked from the very beginning of its
establishment. I wanted to learn how the different department worked and how the employees
communicated with the customers.

2.1.1 Objectives of the study

The major objective of internship program is to acquire learning as well as working experience and
gain practical exposure in the real-life working situation. The objective of the study is to gather
practical knowledge regarding banking system and its operations. Theoretical classes of BBABI
provide us theories regarding different subjects whereas practical orientation gives us the chance
to view those systems and their operations. More precisely we can identify the objectives of this
report as follows:

General objectives

 In partial fulfillment of university participation criteria in internship program.

Specific Objectives

 To be adapted to the real life working environment.

 Develop interpersonal and communicative skills.

 Develop appropriate skills and attitude.

 To study, understand the functioning of the departments.

To get practical exposure.

2.1.2 Limitation of the Study

There have been some limitations from which these report suffers. The limitations are briefly
pointed out below:

 Time is the first limitation as the duration of the program was of two months only.
 Another limitation of this report is Bank’s policy of not disclosing some data and
information for obvious reason, which could be very much useful.
 The data that seems insufficient may be suffering from lack of reliability to some extent.
 Supply of more practical and contemporary data is another shortcoming.

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2.2 Meaning of Bank

Bank is a financial institution which deals with the monetary transactions. The major function
of the bank is to accept deposits and providing loans. The bank attract deposits from various
investors by providing certain rate of interest, and investing the accumulated funds as loans to
others who are in need of fund by charging slightly higher rate of interest than they provide to
the depositors. Bank acts as an intermediary who bridges the gap between the savers of fund
and the users of fund. Basically, banks are those financial organization that offer the widest
range of financial services especially credit, saving and payment services and perform the
widest range of financial functions of any business firm in the economy.

Different scholars have defined bank in different ways. Some definitions of bank are as follows:

According to Walter Leaf, “Bank is that institution or individual who is always ready to serve
money on deposit to be returned against the check of their deposits (savers).”

A bank generates a profit from the differential between the level of interest it pays for deposits
and other sources of funds, and the level of interest it charges in its lending activities. This
difference is referred to as the spread between the cost of funds and the loan interest rate.
Historically, profitability from lending activities has been cyclical and dependent on the needs
and strengths of loan customers. In recent history, investors have demanded a more stable
revenue stream and banks have therefore placed more emphasis on transaction fees, primarily
loan fees but also including service charges on an array of deposit activities and ancillary
services (international banking, foreign exchange, insurance, investments, wire transfers, etc.).
Lending activities, however, still provide the bulk of a commercial bank's income.

2.3 History of Bank

The banking industry that we have today is the outcome of a series of stepwise development that
have occurred in the process of its evolution. The banking sector went through the process of
evolution due to the unceasing demand for the improvements in service delivery and the
increasing need and expectations of customers as well the political reforms that have taken place
over the decades.

Page | 16
The early bankers are the Lombard who was originally from the plains of Lombardy of Northern
Italy. They introduced banking practice in England. These Lombard were eventually bankrupted
because they lent money to kings who did not repay them.

After the Lombard, the goldsmiths practiced banking as a sideline to their normal activities in the
bullion and jewelers fields. The early goldsmiths used to have large vaults, which were soundly
built and heavily guarded. The person who deposited his surplus funds with the goldsmith became
a 'depositor' and naturally paid for the privilege of having his money defended this way. These
payments were called 'Bank Charge'. The depositors who needed funds to pay wages or debts,
could call at the bank and collect such sums as required.

The very first banks were probably the religious temples of the ancient world where gold was
stored. Their owners justly felt that temples were the safest places to store their gold as they
were constantly attended, well built and were sacred, thus dissuading the would-be thieves. There
are existing records of loans from the 18th century BC in Babylon that were made by temple priests
to merchants. Ancient Greece holds further evidence of banking. Greek temples as well as private
and civic entities conducted financial transactions such as loans, deposits, currency exchange, and
validation of coinage. Interestingly, there is evidence too of credit, whereby in return for a
payment from a client, a money lender in one Greek port would write a credit note for the client
who could “cash” the note in another city, saving the client the danger of carrying coinage with
him on his journey.

Ancient Rome perfected the administrative aspect of banking and saw greater regulation of
financial institution and financial practices. Charging interest on loans and paying interest on
deposits became more highly developed and competitive. The bank of Venice, established in
1157A.D is supposed to be the ancient bank. Originally, it was not a bank in real sense being
simply an office for the transfer of the public debt. Subsequently, Bank of Barcelona (1401) and
Bank of Geneva (1407) were established. The ‘Bank of England’, first English Bank, was
established in 1694 A.D. The ancestors of modern day banks have been attributed to the
merchants, the goldsmiths and the moneylenders.

Page | 17
2.4 Development of banking industry in Nepal

The history of banking in Nepal may be described as a component of gradual and ordinary
evolution in the financial and economic sphere in the Nepalese life. Even now the financial system
is still in the evolutionary phase. The establishment of “Kauai Toshi Khana” as a banking agency
during the time of King Prithvi Narayan Shah and “Tejarath Adda” can be regarded as the initial
steps in the direction of start of banking development in Nepal. In the context of Nepal, the
development of banks can be summarized in three phases:
Phase I: The establishment of ‘Tejrath Adda’ during the Tenure of Prime Minister Ranoddip Singh
in 1933 B.S. (1876A.D) was the first step towards the institutional development of banking in
Nepal. It was fully subscribed by the government in Kathmandu. Tejrath provided credit loans to
the general public at 5% interest rate on securities i.e. gold, silver and other ornaments. Its
objective was to provide credit or loans to the general public but it failed to accept deposits from
them.

Phase II: The modern banking in Nepal was started with the establishment of Nepal Bank Ltd. In
1994 B.S., having felt the need of development of banking sector and to help the government
formulate monetary policies, Nepal Rastra Bank was set up in 2013 B. S. as the central bank of
Nepal. In B.S. 2022, Government set up Rastriya Banijya Bank as a fully government owned
commercial bank. The Agricultural Development Bank was established B.S. 2024. This bank was
established with the objective of increasing the life standard of the people who are involved in
agriculture.

Phase III: To operate all commercial banks uniformly under single act, “Commercial Bank Act
2031” was enacted. In 2041 B.S, Nepal Government established five rural development banks
under the control and supervision of Nepal Rastra Bank. These banks include:

 Eastern Rural Development Bank

 Central Rural Development Bank

 Western Rural Development Bank

 Mid-western Rural Development Bank

 Far-western Rural Development Bank

Page | 18
 CHAPTER 3
Database And Methodology

Page | 19
3.1 DEFINITION

The process used to collect information and data for the purpose of making decision. The
methodology may include publication research, survey ,interviews and other research
techniques and include not present and historical information.

RESEARCH OBJECTIVES

1.To study consumer’s attitude towards PRABHU BANK LIMITED

2.To identify the issues faced by the customers of the bank

RESEARCH DESIGN

My research regarding Customer department of PRABHU BANK LIMITED is a descriptive

research because I just want to draw a picture od my topic as what are the factors that
influence customers to open an account with the PRABHU BANK LIMITED.

This report has been prepared on the basis of two months internship experience gained at
the customer services department (CSD) and credit department of Prabhu Bank limited
birtamode branches. Interaction with the staffs and operational knowledge gained is the
major sources of primary data for this study. Besides, the website of the bank, Wikipedia,
and the bank’s annual report are the sources of secondary data .

REASERCH METHODOLOGY

Collection of data is very important for any study while deciding about the method of data
collection to be used for study. The researcher should keep in mind two types of data based
upon the collection of data Primary data and Secondary data.

SOURCES OF DATA

Mainly the study is conducted on the basis of secondary data with negligible primary data
collected. The data related to the trend analysis of ratios of Nepal Prabhu Bank Limited are
obtained with the help of Prabhu Bank Limited balance sheets from 2058/2059 to 2062/2063.

Page | 20
The supplement data and information have been acquired from journals published from
various institutions like NRB, Nepal Chamber of Commerce etc. The sources of data are
elaborated as below.

Primary data collection

The data which are originally collected by an investigator or an agent for the first time for the
purpose of statistically enquiry are known as primary data collected personally through
questionnaire, observation and interviewing method. These data highlight the real fact
information of Prabhu Bank Limited. In this report, structured review and unstructured
observation method was used. The questions that were asked are included in appendix.

Secondary data collection

The data which are originally collected but obtained from some published or unpublished
sources are secondary data. This type of data is not original in character. The secondary data
are collected from secondary sources. These secondary sources consist of two sources:

a) Internal Sources   

 Annual general meeting of Prabhu Bank Limited Ltd of year 2058/2059 to

2062/2063

 Interest chart rate

 Brochure

 Booklets etc.

b) External Sources

 Books and publications.

 Journal article, articles from newspaper

 Local newspaper

 Previous fieldwork report etc.

Collection Method Used

a) Classification and Tabulation of Data

Page | 21
The data collected was classified and tabulated in order to make it easily understandable. The
data was classified in chronological order i.e. on the basis of time intervals. After classification,
the data was tabulated i.e. arranging the data in rows and columns systematically.

b) Diagrammatic and Graphic Representation of Data  

Two types of diagram and graph were used to present the data more clearly. The diagram and
graphs used in this study are

i) Multiple Bar Diagram

ii) Line Diagram

c) Tools used for analysis

Different tools were used to enlighten the factual matters of Prabhu Bank Limited. They are as
follows:

i) Earning per Share (EPS)

ii) Return on Asset (ROA)

iii) Price Earning Ratio (PE ratio)

iv) Ratio of Net Profit to Gross Income

v) Exchange Gain to Total Income Ratio

vi) Net profit to Loan and Advances Ratio

vii) Cash and Bank balance to current deposit ratio

viii) Cash and Bank balance to Total deposit Ratio (CRR) Cash Reserve Ratio

ix) Saving Deposit to Total Deposit Ratio

x) Fixed Deposit to Total Deposit Ratio

xi) NRB balance to the Total Deposit Ratio

Statistical Analysis

i) Mean

Page | 22
ii) Standard Deviation

iii) Coefficient of Variation

iv) Karl Pearson’s correlation

CHAPTER 4
DATA ANALYSIS AND
INTERPRETATION

Page | 23
The discussion and analysis section is the heart of the report. This is the section in which data
are presented and analysed. The discussion of finding will normally be the longest section of the
report to get desired objectives of the study several analytical tools had been employed and used
research methodology and research design. This chapter is basically concerned with the
presentation and analysis of data. In this chapter the effort had been made to evaluate the
performance of Prabhu Bank Limited.

Every presentation of the data follows its analysis so that can be drawn out and future
prediction can be initiated. For the purposed of the analysis simple method of financial tools,
ratio analysis and statically tools, mean, standard deviation, coefficient of variation is used.

Ratio analysis is widely used as a tool of financial analysis. It is defined as a systematic

use of ratios to interpret the financial statement so that the strength and weakness of
firms well as its historical performance and current financial condition can be defined.
The main kinds of tools to measure the performance are

Earnings per Share (EPS)

It simply shows the profitability of the firm of a per share basis. It is calculated from the
point of view of the ordinary shareholder. It is calculated by dividing the profit after tax
by the total number of ordinary share outstanding. 

                     Net profit after Tax           

EPS =     ____________________

                    No. of common share

Year Net Profit After No. of common EPS

Tax share (In no.)
2069/2070 57.10 169.98 33.59
2070/2071 116.80 295.30 39.56
2071/2072 152.60 295.30 51.70
2072/2073 232.10 557.74 39.50
2073/2074 350.53 590.59 59.35
Average 44.74

Source: Annual report of Prabhu Bank Limited (2069/2070-2073/2074)

Page | 24
The EPS trend is fluctuating, but it is clear that the EPS of Prabhu Bank Limited is
substantially high than other competitors. The average EPS of Prabhu Bank Limited is
44.74. The highest and lowest EPS of Prabhu Bank Limited are 59.35 and 33.59
respectively in the fiscal year 2073/2074 and 2069/2070. Therefore from above analysis
we can say that the earning power of Prabhu Bank Limited is in good condition.

 Return on Asset (ROA)

It measures the firm’s return on investment of financial resources. It also helps us to

provide the information of proper utilization of the resources. It is the relation between
profit and total assets. Lower ROA means lower profit and higher ROA means higher
profit.

In the present study, this ratio is examined to measure the profitability of all financial
resources in the bank assets.

                      Net profit after tax (NPAT)

ROA=   __________________________________
                              Total Assets

Year Net Profit After Total Assets Ratio

Tax
2069/2070 57.10 4947 1.15
2070/2071 116.80 9014 1.27
2071/2072 152.60 13255 1.13
2072/2073 232.10 16274 1.40
2073/2074 350.53 21330 1.61
Average 1.312

Source: Annual report of Prabhu Bank Limited (2069/2070-2073/2074)

The trend of ROA is also fluctuation; it rises in the year 2070/2071. The highest ROA
was 1.61% in the fiscal year 2073/2074 and lowest ROA was 1.13% in the fiscal year
2071/2072. The above table shows that the ROA is satisfactory. However the
management of Prabhu Bank Limited must keep their eyes toward the situation and
mobilize their working assets more efficiently to earn more profit. The Average ROA is
1.312

 Price Earnings Ratio (PE ratio)

Page | 25
 Year Market Value Per Earnings Per Share PE Ratio
Share

2069/2070 760 33.59 22.62

2070/2071 795 39.56 20.10
2071/2072 940 51.70 18.18
2072/2073 800 39.50 20.25
2073/2074 1260 59.35 21.23

Source: Annual report of Prabhu Bank Limited (2069/2070-2073/2074)

In the fiscal year 2070/2071, the PE ratio was 20.10. And decreases up to 18.18 in the
year 2071/2072but it continuously increases in the year 2072/2073 and 2073/2074. The
PE ratio is 21.23

Ratio of Net Profit to Gross Income

Year Ratio (%)

2069/2070 14.54
2070/2071 20.12
2071/2072 16.71
2072/2073 20.26
2073/2074 23.99

Source: Annual report of Prabhu Bank Limited (2069/2070-2073/2074)

In the fiscal year 2071/2072 the ratio of Net Profit to Gross Income is 16.71% but it
increases up to 20.26 in the year 2072/2073. In current year 2073/2074 its ratio is 23.99.

Findings:

In the fiscal year 2072/2073 the ratio of Net Profit to Gross Income is 20.26 which are
greater than last year and this year ratio was 23.99 which is more than last year.

Exchange Gain to Total Income Ratio

Year Ratio (%)

2069/2070 10.91
2070/2071 8.80
2071/2072 9.63
2072/2073 8.95

Page | 26
 2073/2074 8.60

Source: Annual report of Prabhu Bank Limited (2069/2070-2073/2074)

In the fiscal year 2070/2071 the ratio of Exchange Gain to Total Income is 8.80 but it
increases up to 9.63 in the year 2071/2072, after 2071/2072 it was decreasing
continuously.

Findings:

In the year 2071/2072 the ratio was 9.63 which were higher than previous year and this
year 2073/2074 (i.e. 8.60)

Net profit to Loan and Advances Ratio

Year Ratio (%)

2069/2070 2.10
2070/2071 1.97
2071/2072 2.08
2072/2073 2.22
2073/2074 2.66

Source: Annual report of Prabhu Bank Limited (2069/2070-2073/2074)

In the fiscal year 2069/2070 the ratio of net profit to loan and advances is 2.10% but it
decreases by 0.13% and became 1.97% in the fiscal year and after that it continuously
increases up to 2073/2074 (i.e. 2.66%)

Cash and Bank balance to current deposit ratio

Year Cash and Current Ratio

bank balance deposit
2069/2070 338.90 785.4 43.14
2070/2071 926.60 979 94.65
2071/2072 1226.90 1500.10 84.78
2072/2073 1340.50 1583.03 84.68
2073/2074 2335.53 1705.70 136.92
Average 88.83

Source: Annual report of Prabhu Bank Limited (2069/2070-2073/2074)

Page | 27
In the fiscal year 2072/2073 the ratio was 84.68% which is less than previous year and in
fiscal year 2069/2070 the ratio was 43.14% which was the lowest ratio during 5 year.
Thus the bank has less liquidity in 2069/2070. Cash and bank balance include cash in
hand and total bank balance.

Findings:

In the fiscal year 2072/2073 the ratio was 84.68% which is less than previous year (i.e.
84.78%) and in fiscal year 2073/2074 it is 136.92 which is higher than last year. The
average ratio is 88.83%.

Cash and Bank balance to Total deposit Ratio (CRR) Cash Reserve Ratio

Year Cash and Total Deposit Ratio

bank balance
2069/2070 338.90 4174.8 8.12
2070/2071 926.60 7922.8 11.70
2071/2072 1226.90 11524.7 11.64
2072/2073 1340.50 14254.57 9.40
2073/2074 2335.53 18927 12.33
Average 10.63

Source: Annual report of Prabhu Bank Limited (2069/2070-2073/2074)

In the fiscal year 2069/2070 the cash reserve ratio is 8.12 and later become 11.70 in
2070/2071. The trend line is fluctuating it goes up and down. However cash reserve ratio
should be minimum. In current year cash reserve ratio is 12.33%

Findings:

In the fiscal year 2070/2071 the cash reserve ratio is 11.70% that were higher than
previous year i.e. 8.12% and this year it is higher than previous year i.e. 12.33%. The
average cash reserve ratio is 10.63%

Saving Deposit to Total Deposit Ratio

Year Saving Total Deposit Ratio

deposit
2069/2070 1278.8 4174.8 30.83
2070/2071 2434.1 7922.8 30.72
2071/2072 4886.1 11524.7 42.40
2072/2073 6703.5 14254.57 47.03
2073/2074 8082 18927 42.70
Average 38.73

Page | 28
Source: Annual report of Prabhu Bank Limited (2069/2070-2073/2074)

The ratio of Saving Deposit to Total Deposit are 30.83%, 30.72%, 42.40%, 47.03% and
42.70% in fiscal year 2069/2070, 2070/2071, 2071/2072, 2072/2073 and 2073/2074
respectively. Saving Deposit is sorts of short term liquidity, which can be withdrawn by
the depositors. Lower the ratio of saving deposit to total deposit, higher the liquidity
ratio.

Findings:
In the fiscal year 2071/2072 ratio is 42.40% which is greater than the fiscal year
2070/2071.
And this year ratio is 42.70% which is lesser than previous year which indicate liquidity
has increased this year.

Fixed Deposit to Total Deposit Ratio

Year Fixed deposit Total Deposit Ratio

2069/2070 945.9 4174.8 22.65
2070/2071 1672.80 7922.8 21.11
2071/2072 2294.68 11524.7 19.92
2072/2073 3212.27 14254.57 22.53
2073/2074 5413 18927 28.60
Average 22.96

Source: Annual report of Prabhu Bank Limited (2069/2070-2073/2074)

The ratio of Fixed Deposit to Total Deposit are 22.65%, 21.11%, 19.92%, 22.53% and
28.60% in fiscal year 2069/2070, 2070/2071, 2071/2072, 2072/2073 and 2073/2074
respectively. The highest ratio for the five year is 28.60% in the fiscal year 2073/2074
and the lowest ratio is 19.92% in 2071/2072.

Findings:

In the fiscal year 2072/2073 the ratio is 22.53% which is greater than previous year.
This year ratio is 28.60% which is higher than previous year, which means liquidity is
higher than previous year.

NRB balance to the Total Deposit Ratio

Year NRB Balance Total Deposit Ratio

2069/2070 166.31 4174.8 3.98
2070/2071 926.60 7922.8 11.69
2071/2072 1226.90 11524.7 10.65
2072/2073 1340.50 14254.57 9.40

Page | 29
 2073/2074 2335.53 18927 12.33
Average 9.61

Source: Annual report of Prabhu Bank Limited (2069/2070-2073/2074).

The ratio of NRB balance to Total Deposit are 3.98%, 11.69%, 10.65%, 9.4% and
12.33% in fiscal year 2069/2070, 2070/2071, 2071/2072, 2072/2073 and 2073/2074
respectively.

Findings:

In the fiscal year 2070/2071 the ratio is 11.69%, which is higher than previous year and
in the fiscal year 2072/2073 ratio is 9.4%, which is less than last year i.e. 10.65%. And
this year ratio is 12.33% which is higher than previous year. The statutory requirement
of the balance to NRB bank by all commercial bank is 4.5%.

Analysis of Data

a) Statistical Analysis

Calculation of the mean, standard deviation, coefficient of variation and Karl’s Pearson
correlation coefficient between

“Cash and Bank Balance and Total Deposit”

Year (n) Cash & Total         __         __

Bank Deposit X=x-X X2 Y=y-Y Y2 XY
balance (y)
(x)
2069/2070 338.90 4174.8 (894.78) 800631.24 (7185.98) 51638308.56 6429871.18
2070/2071 926.60 7922.8 (307.08) 94298.12 (3437.98) 11819706.48 1055734.89
2071/2072 1226.90 11524.7 (6.78) 45.96 163.92 26869.77 (1111.37)
2072/2073 1340.50 14254.57 106.82 11410.51 2893.79 8374020.56 309114.64
2073/2074 2335.53 18927 1101.85 1214073.42 7566.22 57247685.09 8336839.50
∑x = ∑y = ∑X2= ∑Y2= ∑XY=
6168.43 56803.87 2120459.25 129106590.5 16130448.86

Source: Annual report of Prabhu Bank Limited (2069/2070-2073/2074)

Mean

Mean is the sum of all the observation divided by the number of value. Mean is the
arithmetic average of total or value.
                            _

Page | 30
Average C.B.B(X) = ∑ X    =   6168.43
                                    ¯¯¯      ¯¯¯¯¯¯¯   = 1233.68
                                     n             5

                          __
Average T.D. (Y) = ∑Y      =    56803.87
                                  ¯¯¯          ¯¯¯¯¯¯¯     = 11360.78
                                    n               5

Therefore the average of Cash and Bank Balance of Prabhu Bank Limited Ltd for the
last five years is Nrs.1233.68 million and the average of Total Deposit of Prabhu Bank
Limited Ltd is Nrs.11360.78 million.

Standard Deviation

Standard Deviation is used to measure the risk of the company

                                                                  ________
Standard Deviation of C.B.B. ( σx ) = √∑(x-X)2
                                                                ¯¯¯n¯¯¯¯¯¯¯

                                                            __________
                                                          √ 2120459.25

                                                       =  ¯¯¯¯¯¯¯¯¯¯¯
                                                                    5                                            
                                                          
                                                       =   651.22

                                                               ________
Standard Deviation of T.D. (σy )   = √∑(y-Y)2
                                                          ¯¯¯n¯¯¯¯¯¯¯
                                                             ___________
                                                           √ 129106590.5 
                                                      = ¯¯¯¯¯¯¯¯¯¯¯¯¯
                                                                 5

                                                       =   5081.46

Therefore the Standard Deviation based on Cash and bank Balance of Prabhu Bank
Limited Ltd for the last five year is Rs 651.22 million and Standard Deviation of Total
Deposit of Prabhu Bank Limited Ltd is Rs. 5018.46

Coefficient of Variation (C.V.)

Page | 31
The coefficient of variation of dispersion based on standard deviation multiplied by 100
is known as C.V., it is independent unit.

Therefore, C.V. of C.B.B.  = σ C.B.B x 100%

                                                 ¯__¯¯¯¯¯¯
                                                    X 

                                            = 651.22  x 100%

                                               ¯¯¯¯¯¯
                                               1233.68

                                           = 52.78 %

Therefore, C.V. of T.D.    = σ T.D. x 100%

                                                ¯__¯¯¯¯¯¯
                                                   Y

                                           = 5081.46 x100%

                                               ¯¯¯¯¯
                                               11360.78

                                           = 44.72 %

The Coefficient of variation measures the consistency (variability) of the observation

with references to above calculation, there is uniformity in the changes of cash and bank
balance as compared to the total deposit because coefficient of variation of cash and
bank balance (52.78 %) is greater than the coefficient of variation of total deposit (44.7
%).

Karl Pearson’s correlation between cash and bank balance and total deposit

One of the widely used mathematical method of calculating the correlation between two
and more than two variables is Karl Pearson’s correlation coefficient. It is also known
as Pearson’s correlation. It is denoted by “γ”. Values always lies between -1 and +1. +1
denotes the perfect correlation between the two variables and -1 denotes negative
correlation between the two variables.

    γ =     ∑XY
          ¯¯¯¯¯¯¯¯¯¯
         √ ∑X2 x Y2    

       = 16130448.86

Page | 32
          ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯
           √2120459.25 x 129106590.5

 
        = 16130448.86
           ¯¯¯¯¯¯¯¯¯¯¯¯¯¯
            16545853.38

         = + .97

The value of correlation shows the degree of relationship between the two or more than
two variables. The .97 shows the positive relation. Hence there is high degree positive
correlation cast between Cash and Bank Balance and Total Deposit of Prabhu Bank
Limited.

Page | 33
 CHAPTER 5
REPORT ABOUT INTERNSHIP PROGRAM

Page | 34
5.1 Background of Internship

Internship is a period during which an individual works for an organization or a company in order
to get experience through direct involvement in daily activities of the organization. It gives
a valuable experience and a chance to get exposed to the business environment. Interns are
usually college or university students, but they can also be high school students or post graduate
adults seeking skills for a new career. Student internships provide opportunities for students to
gain experience in their field, determine if they have an interest in a particular career and create a
network of contacts. It provides real world experience. It is a system by which the students get an
opportunity to experience the real work environment through indulgence into the real task
accomplishment where one learns by doing things.

This internship program is designed by Chandigarh University for the period of eight weeks
f o r   t h e   p a r ti a l fulfillment for the degree of BBA. Being the student of BBA program, and
specializing in Banking and Insurance, it was preferable to choose internship in the banking sector to gain
experience and practical knowledge about it.

I choose Prabhu Bank, Gaur Branch, to have a general idea about the banking activities. I got a
chance to put my theoretical knowledge to a practical know-how and internship program is all
about gaining a practical knowledge about the subject matter.

5.2 Internship Activities

Various roles/ jobs were assigned to me during the internship program. I completed my internship
program at Prabhu Bank working in various departments. A brief description on the jobs
performed by me in all these departments is as follows:

Customer Service Department

Page | 35
In the customer service department, I was assigned with the following tasks:

 Statement handling and printing

 Account opening and closing
 Handling ATM cards
 Issuing of cheque book
 Handling e-banking facility

Remittance Department

Prabhu Bank Limited, operating under the guidelines set by The Government of Nepal and Nepal
Rastra Bank, offers one of the safest and the most secured means of money transfer to Nepal.
Remitters can send money to Prabhu bank from any part of the globe through our correspondent
banks, exchange houses and banks in the Middle East and using Himal Remit and Western Union,
our in-house remittance software.

SWIFT Transfer

Prabhu Bank offers fast and reliable money transfer services through SWIFT. Your bank account
with us can be credited with remittance from anywhere in the world. The remitter has to mention
the Prabhu bank’s SWIFT Address and the beneficiary details to transfer money to Nepal through
us. We cater the need of customers to remit fund from anywhere in the world, denominated in
major currencies, through SWIFT.

Demand Draft

We have draft drawing arrangement with our correspondent banks in different countries. Prabhu
honors bank drafts on/by various international banks denominated in currencies like US Dollar,
Euro, Great Britain Pound, Japanese Yen, etc.

5.3 SWOT Analysis

SWOT Analysis identifies and analyses the main internal and external factors that will influence
the future direction and success of a business. It comprises of strengths and weaknesses which are
the internal factors and opportunities and threats which are the external factors that affect the
organization. Such analysis helps managers in strategic planning. SWOT analysis of Prabhu Bank is
as follows:

Strengths

 Good reputation in the budgeting industry.

Page | 36
  Dedicated, experienced and well trained employees.
 Up to date with the latest technology and information systems.
 Diversified product and services provided to customers.
 Proper links with the foreign banks.
 High capital base compared to other banks.
 Adequate number of branches all over Nepal.
 Well qualified and professional management team.
 Lower weighted average cost of deposit and higher interest rate of spread.

Weaknesses

 Inadequate marketing of its products and services.

 Need of effective manpower planning.
 Frequent problems in the ATM machines.
 Lack of quick customer response.
 The customer service department is not able to operate efficiently.

Opportunities

 It can take advantage of its good reputation and further expand its customer base.
 It can provide better training to their employees to be able to adapt themselves with the
new technology.
 Being technically ahead than the competitors can help Prabhu Bank to have an edge over
other banks.
 It can further increase its spread with the provision of new schemes.
 It can establish links with the foreign banks to provide extra facilities.
 It can take advantage of its high capital base and provide loan in productive sectors.
 It can come up with new innovative products and services.
 Reduction in the necessity of lending to the priority sectors.
 The bank has an opportunity to invest various other areas of rural development and
hydroelectricity.

Threats

 Political problems ongoing in the country.

 Lack of stable government.
 Rapid increase in the number of commercial banks.

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  Lack of attractive and profitable investments.
 International economic recession.
 Various rules and regulations imposed by the government/NRB.
 Unfavorable socio-economic condition of the country.
 Highly informed customers pose a challenge for the bank to provide better service.
 More competitive products being brought by other banks.
 Lack of effective manpower planning.

5.4 Problem Faced during Internship

While carrying out the task assigned by the supervisor, the intern faced different types of
problems. They are as follows:

 Though the instruction and required documents are clearly explained in the account opening
form, even then customers ask those for time to time and reasons for extra documents that
are already stated in back side of the form. So, it is tough to give them each guideline on filling
different types of form as well.
 The accountholder’s asked for the balance and cheque book without bringing the letter of
authority and citizenship with accountholder’s valid signature and account number.
 Some the customer disagreed to accept the charges for account closing and make argument
on this matter for long time. So, it becomes difficult to convince them about the bank’s
charges.
 Customers argue for updating Know Your Customer (KYC) from especially to show original
citizenship.
 After merger customers argued about not giving the information of the merger to them where
the information was given to them about a month ago through notice, newspapers and media.
 After merger it was also difficult to handle the customers and explain about the changes in
the account number, banks policy, etc.

5.5 Problem Solved in Internship

During the internship period intern faced problem because intern was new to the organization.
The following are the problem solved during the internship period:

 Whenever the customers come up with their problem in CSD, intern is unaware about the
right and accurate information on the subject matter. So intern has to consult with their
senior staff to give the information to customers.

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 Sometimes intern may give wrong information to the client due to lack of knowledge of
that department in the beginning. At that time, staff immediately correct our mistake and
give the right information.

CHAPTER 6
Conclusion And Summary

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6.1 Summary
Nepal being and under privileged country and more than ninety percent of people being
dependent upon agriculture, which sector is unable to provide full employment to the people.
HMG has to activate people in the nation’s development through overall industrialization of
nation. For which development of sound banking system is necessary.

Modern commercial banks make the economy always alive and smart to run and maintain day to
day commercial, economical and banking transactions. In short, banking transactions helps a
country to develop its economy swiftly.

At present commercial banks include joint venture banks are operating in Nepalese Banking
Industries. It is remarkable fact that any country cannot have a developed economy in the
absence of modern banking system. As any development, work needs a sufficient amount of
capital and the lack of sufficient capital is also one of the main reasons as Nepal has been
backward in developing its economy.

Therefore, it is utterly important to find out whether or not the banks are serving an important
contribution to develop different sectors of the economy. Cash and Bank Balance and Deposits
occupies major portion of banking income. It plays a vital role in updating the national economy.

There are too many banks and financial company in present market, which are trying to give more
interest and facility to the consumer for collection on deposit. For the collection of more deposit
Prabhu Bank should try to provide its scheme to other account holders also. It should try to give
other facility to the depositors for the collection of deposit like giving some gifts for the old
sincere customer.

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The bank should give first priority to agriculture sector and industrial sector because agriculture
and industrial sectors are main sources of livelihood. Its rules and regulation are not that strict.
So, it should amend its rules and regulation according to situation and central bank direction.

6.2 Conclusion

It is concluded from the observed analysis of above data that ratios control the major economic
activities of the nation. Therefore, it is very important for the policymaker to adopt appropriate
policy with calculation interest rate. Therefore, that large capital can be mustard at very low
capital cost. It will encourage the industrial and commercial activities eventually lending to better
economic condition growth, social economic development, and employment opportunities.

Descriptive and analytical research designs have been presented to analyze the financial position
of Nepal Prabhu Bank Limited. This study is based on secondary data obtain from various sources.

6.3 Recommendations

Some recommendations are being put forward on the basis of conclusion through study:

1. Now that the economic condition of the country deteriorating, there is a damages in
slackening of the business and industrial activities. So, the bank should not be interested
only in collecting huge amount of deposit by increasing interest rate only.
2. The banks mobilized capital should be made available for investment in productive
enterprise whether the business is of small, medium or large sized. Thus, no bank should
expand its credit to promote economic development more rapidly.
3. There is a service completion among joint venture bank, finance companies and insurance
companies may go to losses. So, the bank should give emphasis on modern technologies,
should be growth service oriented, train the staff, get up to date information about other
bank and high services should be put forward to customers.
4. Employees should be associated whenever possible in discussion with customer and
inspective and other business visit with the objective of developing communication and
familiarization between them and customers. All employees should be provided with
nameplates, which will give them identification and will help customer in knowing them
by name.
5. The bank should grab more opportunities as soon as possible by adopting efficient and
latest market strategies, traditional method should be left behind.

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 6. Government, NRB and commercial banks should take necessary steps to form and
regulate banking habit of Nepalese people especially people of rural areas.
7. Other than shareholders annual report, the bank should publish and distributed booklets
containing detail information about its activities and performances as well. This help to
maintain harmonious relationship between bank and customers.

Bibliography.
BOOKS AND ANNUAL REPORTS

Prabhu Bank Limited.(2015/2016).Annual Report.Kathmandu:PBL

Shrestha.M.K. & Bhandari ,D.B.(2010):Foundation of Financial Institutions and

Markets.Kathmandu: Asmita Book Publishers and Distributors Pvt.Ltd.

WEBSITES:-WWW.prabhubank.com.np

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Appendix.

QUESTIONNAIRE:
Name: - …………………………….
Address: - ……………………………….
Contact No: - …………………………….

1. How Is The Service Of Prabhu Bank Limited?

a. Excellent
b. Good
c. Average
d. Bad

2. Do you Satisfy With The Product Offered By Prabhu Bank?

a. Yes
b. No

3. Do you See The Advertisment Of Prabhu Bank Limited?

a. Yes

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 b. No

4. How Is The Representative’s Interaction Of Prabhu Bank?

a. Better
b. Not Better
c. Good
d. No Interaction

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