DECLARATION

I hereby declare that the project work entitled "FUNCTION OF

CUSTOMER SERVICE DEPARTMENT OF JANATA BANK NEPAL
LIMITED, GITANAGAR, CHITWAN" submitted to the Faculty of
Management, Tribhuvan University, Kathmandu is an original Peace of
work under the supervision of Mr. ………………. lecturer of Arunodaya
College, Gitanager, Chitwan and it is submitted in partial fulfillment of
the requirement for the degree of Bachelors of Business Studies (BBS).
This project work report has not been submitted to any other university
or institution for the award of any degree of diploma.

……………………………….
Arunodaya College
Gitanagar, Chitwan
Date : ……………………
 SUPERVISOR'S RECOMMENDATION

The project work report entitled "FUNCTION OF CUSTOMER SERVICE

DEPARTMENT OF JANATA BANK NEPAL LIMITED, GITANAGAR,
CHITWAN " submitted by ………………………………… of Arunodaya
College, Gitanagar, Chitwan, is prepared under my supervision as per the
procedure and format requirements laid by the Faculty of Management,
Tribhuvan University, as partial fulfillment of the requirements for the
award of the degree of Bachelor of Business Studies (BBS). I, therefore,
recommend the project work report of evaluation.

…………………………………….
Mr. …………………….
Arunodaya College
Date : ……………………
 ENDORSEMENT

We hereby endorse the project work report entitled "FUNCTION OF

CUSTOMER SERVICE DEPARTMENT JANATA BANK NEPAL LIMITED,
GITANAGAR, CHITWAN " submitted by ………………….. of Arunodaya
College, Gitanagar, Chitwan. in partial fulfillment of the requirements
for award of the Bachelors of Business Studies (BBS) for external
evaluation.

…………………………. …….………………………
Mr………………. Mr. Kumar Raut
Chairman, Research Committee for Principal
Arunodaya College Shree Arunodaya College

Date …………….
 VIVA–VOCE SHEET

We have conducted the Viva-Voce Examination of the

Project Report presented by

………………………….

Entitled

FUNCTION OF CUSTOMER SERVICE DEPARTMENT OF JANATA

BANK NEPAL LIMITED

and found project report to be the original work of the students and written
according to the prescribed format. We recommended the project to be
accepted as partial fulfillment of the requirement for

Bachelor Degree in Business Studies (BBS)

VIVA-VOCE COMMITTE

Mr. Ramji Sapkota ……………………..

Member (project Report Advisor) ……………………..

Member (External Expert) ……………………..

Date:
 ACKNOWLEDGEMENT

Writing a report in BBS 4 th year is a very crucial and compulsory taste provided by
Tribhuvan University, so every student's gains knowledge partially. The students
who enjoyed writing this report gain more knowledge. There was not practice of
field work assignment in past 4 year in bachelor level program. Resercher would
like to thank Tribhuvan University for providing opportunity to prepare a report on
their chosen topic for completion of BBS 4 th year. This fieldwork report is based on
the topic "FUNCTION OF CUSTOMER SERVICE DEPARTMENT OF JANATA
BANK NEPAL LIMITED, Gitanagar, Chitwan."

This case of study has been completed with the help of many individuals in
preparing this fieldwork report. It becomes essential to seek to the advice of
teachers, friends and seniors to all of whom a researcher deeply indebted. I feel
great pleasure in expressing my grateful indebtedness and I would like to express
my sincere thanks to Mr……………………….. lecture of Shree Arunodaya
College, Gitanagar Chitwan.

Finally I would like to a lot of thank whole JBNL Family for help in providing all
the necessary actual data and information. At last but not least, I wish to express
my deep appreciation to Madhu Khanal who helped me in computer typing and
designing

Thank you,

………………..
BBS 4th Year
 TABLE OF CONTENTS
Title Page i
Declaration ii
Supervisor Recommendation iii
Endorsement iv
Viva-Voce Sheet v
Acknowledgement vi
Table of Contents vii
List of Tables ix
List of Figure ix
List of Abbreviations x
CHAPTER –I : INTRODUCTION
1.1 Background of the study 1
1.2 Profile of organization 2
1.3 Objective 3
1.4 Rational 3
1.5 Review 4
1.5.1 Conceptual Review 4
1.5.1.1 Importance of Customer Service 4
1.5.1.2 Evolution of Banking Industry 5
1.5.1.3 Meaning of Commercial Bank 6
1.5.1.4 Function of Commercial Bank 7
1.5.2 Review of Previous Studies 8
1.5 Research Gap 10
1.6 Methods 10
1.6.1 Research Design 10
1.6.2 Population and Sample 11
1.6.3 Nature and sources of Data 11
1.6.4 Data Collection Procedure 11
1.6.5 Tools for Data Collection 11
1.6.6 Technique of Analysis 11
1.7 Limitations 12

CHAPTER – II: RESULTS AND ANALYSIS

2.1 Data Presentation 13
2.1.1 Introduction of customer Service Department 13
 2.1.2 Activities Carried Out by the Department 13
2.1.3 Organization Structure of JBNL 18
2.1.4 Service Provided by the Organization 19
2.1.5 Products of the Organization 21
2.1.6 SWOT Analysis 27
2.2 Findings 28

CHAPTER – III: SUMMARY AND CONCLUSION

3.1 Summary 29
3.2 Conclusions 29

REFERENCES
APPENDICES

LIST OF TABLES

Table Page
No. Titles No.
2.1 Various Saving and Accounts Offered By Janata Bank 22
2.2 Call Deposit Product Offered by Janata Bank 23
2.3 Fixed Deposit Pffered by Janata Bank 24
2.4 Interest Rates on Different Types of Loan 26
2.5 SWOT Analysis 27

LIST OF FIGURES

Figure
Page
No. Titles
No.
2.1 Organization Structure of Janata Bank ,Gitanagar Branch 19
 ABBREVIATIONS

ABBS - Any Branch Banking System

AD - After Death
ADSL - Asymmetric Digital Subscriber Line
ATM - Automated Teller Machine
BS - Bikram Sambat
CEO - Chief Executive Officer
CSD - Customer Service Department
Fig. - Figure
FY - Fiscal Year
JBNL - Janata Bank Nepal Limited
Ltd. - Limited
KYC - Know Your Customer
SWOT - Strength, Weakness, Opportunities, Threats
NP - Net Profit
OD - Operation Department
P. - Page
T.U. - Tribhuvan University
Rs. - Rupees
 CHAPTER –I
INTRODUCTION
1.1 Background
Undoubtedly most industries and businesses persistently Endeavour to
maximize customer value. Nonetheless this has globally become the hub of
marketing for every organization or industry. In as much as possible for any
company to probably reach this end would require the need to achieve
absolute customer satisfaction through offering incomparable services to
customers. Indeed Customer service is the ability to identify the needs of
customers and meeting those needs beyond their expectation within the
shortest possible time. In this light the focus of marketing is to address the
customers' needs, preference and attitudes. Arguably, marketing concepts
posit that the right avenue to start the search for new products ideas are the
customers' needs and wants Kotler (1991). Indeed, the success of any
organization depends largely on the extent to which that organization could
integrate its knowledge about the customers' needs, wants and preference with
its own creative capacity and skills.
Consequently, competitive edge is secured through intelligent identification
and satisfaction of customers needs better and sooner than competitors and
sustenance of customer's satisfaction through better customer service tools.
According to Foniell,(1992), Customer's satisfaction holds the potential for
increasing an organization's customer base, increasing the use of more volatile
customer mix and increasing the organization's reputation. To achieve
customer satisfaction which is key and crucial to the survival of the
organization, attention needs to be focused on the lifestyle and needs of the
customer. Indeed, cur service is the provision of services to customers, before,
during and after a purchase. Zeithami and Iitner (2003) defined customer
service as a series of activities designed to enhance the level of customer's
satisfaction where that product or service has met customer's expectation.
Customer service "varies by product, industry and customer. It however,
assume important dimension in service delivery and sales of product. This is
because service firms such as banks have to retain their customers and win
new ones if they are to remain in the market.
A bank is an institution, which deals with money and credit. It accepts
deposits from public and mobilizes the fund to productive sectors. It also
provides remittance facility to transfer money from one place to another.
Generally, bank accepts deposits from the business institution and individuals,
which is mobilized into productive sectors mainly business and consumer
lending. Bank is, therefore, known is a dealer of money. Banks arc the
principal source of credit for millions of individuals and families and for
many units of government. They are among the most important financial
institutions in the economy (Singh, 2014).
1.2 Profile of the Organization
Prabhu Bank Limited has gone through the various phases of its growth
trajectory over a short period of its existence. Growth of Prabhu Bank was
phenomenal. Especially after merger of Grand Bank Nepal Limited, Kist
Bank Ltd. Prabhu Bikash Bank Ltd. Gaurishankar Development Bank Ltd.
and Zenith Finance Ltd in, 2016, attaining the status of "A" class financial
institution licensed and regulated by the central bank of Nepal. Nepal Rastra
Bank. Prabhu Bank has completed years of journey since the inception and
has accommodated seven different financial institutions in its making. The
bank has a network of 137 branches and 126 ATMs across the country,
making it premier private bank in terms of geographical reach and clientele
segments with customer base of 850.000 among the private sector commercial
banks in Nepal.
As the leading banking and financial services group in Nepal, the Bank will
be there where growth is, connecting customers to the opportunities, enabling
business to thrive and economies to prosper and ultimately helping people to
fulfill their hopes and realize their ambitions. The Bank offers the full range
of banking and investment services for personal and corporate customers,
backed by the team of highly motivated young and dynamic professionals.
One of the bank's primary objectives is to reach out to the common people
with a host of helpful products and services that will assure their future
prosperity. Over a very short period of time, the bank has achieved a
significant degree of success in executing this objective thereby creating a
substantial base of loyal customers. Personalized service, prompt transactions,
wide networks, mobile Ranking and real-time account credit are few of the
core strength of the bank. It has been undertaking activities such as variety of
deposit schemes, loans and advances, Foreign exchange facilities; Trade
financing, Inward/outward remittances, market maker for government
securities. Non-Fund based service like issuing guarantees, letter of credits
etc. While ensuring adequate finance is a vital part in the setting up and
running of any business, it alone does not guarantee success. Success depends
on the other factors such as quality consultation and counseling. So the bank
has given due priority in developing human resources capable enough to
understand the need of customer and meet their requirements. The bank keeps
its customer at the center of all it does. Prabhu Bank believes that a bank is
only successful when its customers are successful.
1.3 Objective
The main objective of the study is to examine the functions of title. The other
Objectives are as follows:

 To identify the various services provided by the bank in Customer

Service Department.
 To analyze the banking process of CSD.

1.4 Rationale
Every BBS students of TU should go through the project work report in final
year of four year Program. The students can choose any industry relating to
their specialized subject in order to learn each and every aspects of the
organization through observation, interaction and work experience. The
project work report provides opportunities to observe stud and explore new
facts and understand realities about how organization functions. It further
helps the students to develop interpersonal communication skills, understand
professionalism skills, boost self confidence and explore new career
opportunities. Some other rationale of the study can be pointed as:

 The students can have clear view of establishment and working of the
conduct of bank thereby broadening the banking knowledge.
 The BBS level would remain incomplete without this study.
 This document can be kept as valuable asset in the library.
 This report can be a source of secondary data for researchers
1.5 Review
The review of literature will be analyzed as theoretical framework and review
of related studies. For this research propose, the review of literature will be
categorized into groups

 Conceptual review
 Review of related studies

1.5.1 Conceptual Review

The researcher reviews existing literatures on customer service in the Parbhu
Bank Limited. This chapter takes a look at the various variables that may
influence important customer service amid fierce competition from the
perspective of some writers and researchers. It starts with profile of the bank
under study through to the importance and nature of the customer practices,
Customer Satisfaction, Retention and Customer Loyalty. Customer
Relationship Building and its practical implications for the study.
1.5.1.1 Importance of Customer Service
Service quality has been viewed as a significant issue in the banking industry
by Stafford (1994). Since banking undifferentiated products, it become
services are generally characterized with imperative for banks to strive for
improved service quality if they want to distinguish themselves from the
competition. Positive relationship between high levels of service quality and
improved financial performance has been established by Roth and van der
Velde (1991) and, Bennet (1992).
Similarly, Bowen and Hedges (1993) documented that improvement in
quality of service is related to expansion of market share. In the current
marketing literature much attention on the issue of service quality as related
to customer& attitudes towards services is focused on the 20 relationship
between customer expectations of a service and the perceptions of the quality
of provision. This relationship known as perceived service quality was first
introduced by Gronroos (1982). Gronroos suggested that the perceived quality
of a given service is the result of an evaluation process since consumer makes
comparison between the services they expect with perceptions of the services
they receive. Hence, he concluded that the quality of service is dependent on
two variables: expected service and perceived service. Parasurament.
Al(1985) considered that a customer's assessment of overall service quality
depends on the gap between the expected and perceived service. Thus, the
key to managing perceived service quality is to minimize this gap. Zeithami
(1988) defined perceived service quality as the customers' assessment of the
overall excellence of the service. Cina (1990) posited that for a smooth
implementation of customer care programmer specific conditions must be set,
done and fulfilled. These are: total staff involvement, support from top
management, outlining customer requirements and obligations, adherence to
set down principles and modes of measuring the set goals.
1.5.1.2 Evolution on Banking Industry
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
history of banking dates back to the time when the first prototypes banks of
merchants of the ancient world (Assyria and Babylonia (currently Iraq), at
around 2000 B.C, made grain loans to farmers and traders who carried goods
between cities. The development of banking spread through Europe also and a
number of innovations took place in Amsterdam in the century and in London
in 17th Century. During the 20th Century, developments in the
telecommunications and computing caused major changes to the banks
operation. The world banking industry witnessed further changes in the
operational style, services demanded and the innovations in service delivery.
The first bank to be established was The Bank of Venice in 1157 A.D. in the
city of Venice, as an improvement to the Chamber of Loans, an institution
looking after the management of debt in the city. The Medici Bank that was
set up in Italy in 1397, the Bank of Barcelona in 1401 and the Bank of
Geneva in 1407 were some of the major notable banks to be established
following the Bank of Venice. The Bank of Vice and the Bank of Geneva
continued to operate until the end of the eighteenth century.
The Bank of England in 1694, the Bank of Scotland in 1695, and the Bank of
North America in 1782, the Bank of France in 1800 were the other major
establishments in the history of world banking industry. And the introduction
of banking Act in 1833 A.D in the United Kingdom, the growth of the bank
accelerated as bank could be established in the form of a joint stock company.
Historically, the primary purpose of a bank was to provide loans to trading
companies. Banks provided funds to allow businesses to purchase inventory,
and collected those funds back with interest when the goods were sold.
1.5.1.3 Meaning of Commercial Bank
The history of banking evolved through the establishment of commercial
bank which is the oldest form of bank. It is basically a profit making financial
institution that accepts deposits and provides loans to its customers. A
commercial bank can be defined as a type of financial institution that provides
services such as accepting deposits, making business loans, and offering basic
investment products. Commercial Bank can also refer to a bank or a division
of a large bank which more specifically deals with deposit and loan services
provided to corporations or large/middle sized business- as opposed to
individual members of the public/small business- retail banking or merchant
banks.
According to Nepal Commercial Act 2031 B.S. (1974 AD), 'A commercial
Bank refers to such types of hank which 'ices in money exchange, accepting
deposits. Advancing loans and other commercial transitioning except some
special functions dune by some specified bank such as Co-operative Bank,
Agricultural Bank arid Industrial Banks.'
Commercial banks are defined as leading financial institutions, which issue
demand liabilities used as means of payment and at the same time make loans
to business in a tradition that goes hack several hundred years ago. In course
of time, commercial banks have expanded their activities on both the asset
and liability side. They accept various kinds of time and savings deposits
while they have expanded their lending activities to include term loans
business, long-term mortgage loans and investment in debt securities of all
types of wide range of maturities. Commercial banks act as business term to
operate efficiently. The general role of commercial bank is to provide
financial services to general public and business, ensuring economic and
social stability and sustainable growth of the economy.
1.5.1.4 Functions of Commercial Bank
The functions of commercial banks are one of the major financial
intermediaries whose primary function is the transfer of monetary resources
forms the savers to the users. The transfers are made at certain prices and
conditions governed by broad policy parameters stipulated by central bank
authorities.
The functions of commercial banks are as follows:
1. Primary Functions
a. Accepting Deposits
b. Providing Loans
c. Investment

2. Secondary Functions
Besides the primary functions of accepting deposits and lending money,
banks perform a number of other functions which are called secondary
functions, these are given below:

 Issuing letters of credit, reveler's cheques, circular notes etc.

 Undertaking safe custody of valuables, important documents, and
securities by providing safe deposit vaults or lockers.
 Providing customers with facilities of foreign exchange transforming
money from one place to another, and from one branch to another branch of
the bank.
 Standing guarantee on behalf of its customers, for making payments for
purchase of goods, machinery, vehicles etc.
 Collecting and supplying business information.
 Issuing demand drafts and pay orders
 Providing reports on the credit worthiness of customers.

(Shrestha & Bhandari, 2010)

1.5.2 Review of Previous Studies
The customer satisfaction-retention link has received more attention among
marketing and management practioners and academics. Customer satisfaction
has long been regarded as a "proxy" for firm success since it is inextricably
linked to customer loyalty and retention%. Several authors (highlighted.
however. that the link between customer satisfaction and customer retention is
reliant, to some extent, upon other factors such as the level of competition on,
switching barriers, proprietary technology and the features of individual
customers. The relationship between these two key constructs is considered to
be far more complex than it might first seem. Satisfaction has a significant
impact on customer loyalty and, as a direct antecedent, leads to commitment
in business relationships, thus greatly influencing customer repurchase
intention.
Indeed, the impact of satisfaction on commitment and retention varies in
relation to the industry, product or service, environment etc. However,
customer commitment cannot be dependent only on satisfaction. Relational
switching costs, which consist in personal relationship loss and brand
relationship costs and involve psychological or emotional discomfort due to
loss of identity and breaking of bonds have a moderating effect on the
satisfaction-commitment link (Sharma and Patterson. 2000). Since relational
switching costs represent a barrier to exit from the relationship they can be
expected to increase the relationship commitment. High switching barriers
may mean that customers have to slay (or perceive that they have to) with
suppliers who do not care for the satisfaction created in t e relationship. On
the other hand, customer i satisfaction is usually the key element n securing
repeat patronage; this outcome may be dependent on switching bathers in the
context of service provision (Jones ci al., 2000). In fact, in certain conditions,
a customer might be less than satisfied with a service supplier, hut still
continue to deal with it because the costs of leaving are perceived to be too
high.
Thus, the so called loyalty programmers clearly are an example of
programmers designed to weaken switching barriers. Indeed, if the firm is
able to manage the customer switching costs, it can still retain the customer
even though the satisfaction may be lower. The longer the relationship, the
more the two parties gain experience and learn to trust each other.
Consequently, they may gradually increase their commitment through
investments in products, processes, or people dedicated to that particular
relationship. Moreover, a switch in suppliers involves set-up costs and
termination costs; the former include the cost of finding another supplier who
can provide the same or better performance than the current supplier or the
opportunity Cost of foregoing exchange with the incumbent, while the latter
include the relationship specific idiosyncratic investments made by the
customer that have no value outside the relationship.
Since a degree of social interaction between the provider and the customer is
often required for the service to be manufactured "the theoretical foundations
for the study of switching costs in a service context can be found in social
exchange theory Emerson. 1976). In fact, service encounters can be viewed as
social exchange with the interaction between service provider and customer
being a crucial component of satisfaction and 29 providing a strong reason for
continuing a relationship. Social exchange theory attempts to account for the
development. growth and even dissolution of social as well as business
relationships. In other words, people (or businesses) evaluate their reward
(cost) ratio when deciding whether or not to maintain a relationship. Rewards
and costs have been defined in terms of interpersonal (e.g. liking. familiarity.
influence), personal (gratification linked to self esteem, ego. personality) and
situation factors (aspects of the psychological environment such as a
relationship formed to accomplish some task).
Chaudhuri and Hallbrook, (2002) proposed the concept of customer loyalty
has received much consideration and attention from both academics and
practitioners in different industries, in increasingly competitive markets,
being able to build consumer loyalty is seen as the key factor in winning
market share and developing a sustainable competitive advantage. Banking
industry is no exception as it has high interaction with the customers, so
managers must understand the factors which influence the loyalty of the
customers towards their respective banks. It is always costly to attract new
customers, so the managers al customers and concentrate on different factors
which enhance the customer loyalty among the customers of the
organizations. During the past decade, the financial service sector has
undergone drastic changes, resulting in a market place which is characterized
by intense competition, little growth in primary demand and increased
deregulation. In order to increase customer loyalty, many banks have
introduced innovative products and services. Marketing success product and
service attributes which increase loyalty and share of wallet.
1.5 Research Gap
Many researchers have been done in the topic commercial banks by different
researchers. But no research was done in "Functioning of Customer Service
Department at Prabhu Bank Limited". So, this researcher is a first attempt in
this field.

1.6 Methods
Research methodology is the technique to achieve the stated objectives of the
study. This chapter studies how research is conducted, how the research is
made effective and what are the steps of research so that the study and goal of
the study arc easily achieved. Especially research refer sequential step's to be
Below by researcher at the time of solving problem or studying the concerned
subject matter in detail that include following steps.
1.6.1 Research Design
This study was carried out by using the primary data from the bank. Hence,
research design was highlighted for ascertain basic objectives of the study.
Research design includes define procedures and techniques which guide to
sufficient way for analysis and evaluating the study. As already mentioned the
main objective of this study is to analyze the customer service department of
Prabhu Bank Limited. Basically, this study deals with the customer service
department as case study. Hence this, analytical as well as descriptive
approach was used to evaluate the financial performance of the bank and to
obtain stated objectives.
1.6.2 Population and Sample
At present there are 28 commercial hunks are operating in Nepal. They
constitute the population sample among them, PBL as the growing national
level commercial bank was chosen for the study.
1.6.3 Nature and Sources of Data
To conduct this study, mainly primary data were used through the field
observation and personal interview schedule. Secondary data were taken from
annual reports of related office and their websites. So the major sources and
types of data were included from direct interview and field survey.
1.6.4 Data Collection Procedure
The collected data through different sources can't be used directly for the
analysis in their original form. So, those data were checked, re-evaluated,
edited and tabulated to bring them into appropriate form for the analysis
purpose. Moreover, different graph charts were presented according to
necessity to interpret visually and to make the reports attractive. The data
were tabulated according to subject matter and were shown in table in
sequential way. Similarly, the financial tools were used for the analysis and
interpretation of the financial performance of selected sample.
1.6.5 Tools for Data Collection
To carry out the present research tidy, questionnaire was the main tool for
data collections. Field visit and interview schedule were conducted
throughout the study period.
1.6.6 Techniques of Analysis
The data were analyzed through descriptive method. The data were obtained
from personal field visit and interview with the customer and bank staffs
profile. So, the data were analyzed through descriptive method as well as
using mathematical tools, i.e. tables and figures.
1.7 Limitations
The present study was limited to:

 This report only visualizes the arthritis carried out by CSD of the Prabhu
Bank Ltd.
 Bagar Branch and not of the entire organization as a whole.
 The study was carried out to fulfill the partial requirement of the BBS
degree.
 The data were observed from personal interview and field visit, so data
may not accurate.
 CHAPTER II
RESULTS AND ANALYSIS
2.1 Data Presentation and Analysis
The former selection deals with presentation and analysis of data regarding
the customer service department of Prabhu Bank Limited, Bagar, Pokhara.
2.1.1 Introduction of Customer Service Department
A company's Customer Service Department handles the concerns of
customers, answers customer's questions, and attempts to resolve customer's
complaints and tries to sell new services to them. In addition to resolving
customer's complaints and answering their questions, the customer service
department also takes suggestions from customers who have new ideas that
may improve the image of the company and attract new customers.
Customer Service Department (CSD) is one of the most important
departments in a hank. This department is also called as Information Desk as
customers first contact in this department for their queries It is a gateway to
any organization because it is the place where a client can get the answer to
almost all of its queries regarding the function and services of any
organization. Since the first interaction of the customer is with this
department, the image and reputation of the bank depend upon the effective
functioning of this department.
During the study period PBL, Bagar Branch, the researcher was placed in the
CSD where he had to deal with the customers by answering their queries,
marketing of various products and services, issuing application form for
opening different types of new account, providing account statement
accepting cheque book etc. He also helped the customers with their remit as
there was no separate Remittance Department in the Bagar Branch of PBL.
2.1.2 Activities Carried Out by the Department
The Customer Service Department of Prabhu Bank, Bagar Branch performs
the following activities and provides services to its customers:
a) Providing information to customers and solving their queries
b) Opening the account
c) Closing the account
d) Printing and issuance of cheque book
e) Issuance of ATM card
f) Writing application letter on behalf of customer
g) Filling up the deposit forms and cheques
h) Filling up the KYC forms
i) Filling up account activation forms.
j) Filling up the claim form and LDT tot remittance
The descriptions of the above activities are as follows:
a. Providing Information to Customers
Providing information to the customers about the banks offering and solving
the queries arising from customers is one of the major tasks of CSD which it
is supposed to carry out. Customers come in the bank with a lot of queries and
sometimes with the grievances. Listening to them attentively and solving
those problems is the major task. Customers generally want to know about the
deposit schemes offered by the bank, interest rates on different deposits,
balance on account etc.
b. Opening the Account
Customer need to open new account to keep deposit in the bank and to
perform other banking related activities. Opening an account is entering into a
contract with the bank. Only the party capable of contracting according to the
bank can open an account. PBL provides different schemes for opening an
account. Opening an account involves the first step to make customers to
come in its contract. A customer can select the account according to their
need and preference.
Requirement for opening account are as:

 Original citizenship of accountholder

 Photocopy of citizenship of nominee
 Two passport size photos of accountholder
 One passport size photo of nominee
 Minimum required balance according to the type of accounts

Procedures for opening account are:

 Customer is welcomed at the receptionist desk and asked to select the type
of account to be opened
 Account opening application is filled and necessary documents are
attached along with the form.
 The information of the customer is entered into the system and 20 digits
account number is generated which is given to the customer.
 Customer is requested to deposit the minimum balance (or more) in their
account.
c. Closing the Account
Account closing is another important task under account operation. The
customers close their accounts because of several reasons. Whatever the
reasons are, the customers are mainly convinced not to close their account.
Instead, they are requested to maintain minimum balance and keep their
account freeze. Losing a customer is a kind of Loss to the bank.
Procedures for closing account arc:
 First, the customer has to fill up the closing form where he/she has to
mention a/c number name of the a/c holder and the reason to close the
account.
 Along with the form, the customer has to submit the cheque book and the
ATM card if issued.
 The account bolder and the signature in the form are verified by the
authorized employee and then the respective account opening form is
searched from the store.
 Then, the account closing form along with the account opening form is
taken to the credit, remittance and cash departments to verify the sign on the
account closing form.
 Finally, authorized CSD employee closes the account and the remaining
amount is reimbursed to the customer from the teller.

d. Printing and Issuance of Cheque Book

Cheque is the important authentic paper that is required for customer to
withdraw money from their account. After opening an account, Customer is
provided cheque book. Likewise, a new cheque book is also issued after the
issued cheques are finished or incase of loss of the cheque book. The issuance
of new cheque book because of the loss of old one costs Rs.200.
Procedures for Cheque Book Issuance:

 Customer has to fill up the cheque requisition and activation slip that
contains accountholder's name, account number, signature of the account
holder, name and signature of the agent (if any).
 Upon receiving the cheque requisition and activation slip, the staff of the
bank verifies the signature and then prints the cheque.
 The printed cheques are made in a book form and details of the account
are tilled in the new requisition slip of the cheque book.
 After all this, the cheque book is recorded in the register and it is handed
to the customer after their signature in the register.
e. Issuance of ATM Card
Authorized person arriving for ATM card is provided the ATM. For this, the
stat! Searches the card as per the customer name in the box. Then the
customer is sent to operation department to get the pin. After the customer
comes with the pin, the form consisting of Accountholder's name, signature,
date and time is verified and photocopied. Then ATM card along with the
original form is handover to the customer with records of Debit Card
information in the ATM register.
f. Writing Application Letter on Behalf of Customer
Every customers doing banking transaction in a bank may not be literate.
Literate customers themselves write the application related to their problems
or needs. But in the case of illiterate customers, they come to CSD requesting
to write application on behalf of them. Their problem is asked and the
application is written accordingly.

g. Filling up the Deposit Forms and Cheque

In case of the customers who arc iDiterate, their deposit forms and cheques
are filled by researcher asking the required information and amount of money.
h. Filling up the KYC Forms
KYC is an acronym for "Know your Customer", a term used for customer
identification process. It involves making reasonable efforts to determine true
identity and beneficial ownership of accounts, source of funds, the nature of
customer's business, reasonableness of operations in the account in relation to
the customer's business, etc which in turn helps the banks to manage their
risks prudently. The objective of the KYC guidelines is to prevent banks
being used, intentionally or unintentionally by criminal elements for money
laundering. KYC has two components - Identity and Address. While identity
remains the same, the address may change and hence the banks are required
to periodically update their records. KYC update is the recent activity that is
carried out in all the commercial bank and instructed by Nepal Rastra Bank.
So as per the instruction, I distributed and helped the customer to fill up the
KYC. For KYC update, we were told to inform the customer who visit the
bank and who doesn't often visit the bank they were informed through
telephone calls.
1. Filling up Account Activation Form
Customers who do not have any banking transactions since more than six
months, the accounts are automatically deactivated. To continue the
transactions, customers have to activate the accounts. By taking the necessary
documents and details of the customers, the account activation forms are
filled.
j. Filling up the claim form and IDT R for remittance
PBL is providing remittance services to the customers. Many customers come
for remit sending and receiving those customers are being helped by filling
the claim forms which include the details regarding the sender and the
receiver. The details consist of sender and receiver name, address, contact
number, citizenship/passport/license number and the amount to be sent or
received. The Inter Dept Ticket (IDT) is issued by the CSD to the teller for
remit receiving. In case of remit sending, Miscellaneous Dept Receipt (MDR)
is filled up consisting the sender and receiver name along with the amount to
be sent to the teller.
k. Other Activities
There are several other activities carried out in CSD. They are pointed as
follows:

 Maintained all kinds of account related registers and tiled the account
opening related documents date wise in a proper place. And also tiled other
documents like KYC form, account activation form. SMS m-wallet. ATM. c-
banking request and amendment forms etc.
 Responded to balance inquiry and provided statement to the customers
upon verifying the signature, just to maintain confidentiality of the customer.
 Done photocopy of different documents like citizenship, licenses, passport
and other forms.
 Filled up the checklist form, account transfer form, amendment form of
m-wallet, ATM, c-banking etc.
 Kept records of SMS banking. C-banking, fixed deposit, balance
certificate and courier in-out.
 Also maintained the respective tiles of remittance sending and receiving.
The records of the remittance are also filled in separate registers.
 Responded to the phone calls of the customers as well as other
department staffs. The phone calls were also made to the customers regarding
information of ATM. KYC update etc.
2.1.3 Organization Structure of PBL
Prahhu Bank Limited, Bagar Branch is situated in the heart of Pokhara. There
are altogether seven employees working in different department of the bank.
The information is passed from the branch manager to all the employees very
effectively. The entire department the bank performs their task properly. It
has a flat and horizontal organizational structure. The departments are being
perfectly planned so as to perform several department works effectively.

Figure 2.1
Organizational Structure of Prabhu Bank, Bagar Branch

Branch Manager

Operational Department Credit Department

Customer Service/Remittance Cash

 Teller Bills & Clearing

2.1.4 Services Provided by the Organization

The services provided by organization with departments are given below:
2.1.4.1 Departments and Their Functions
There are basically two major departments in Prabhu Bank, Bagar Branch i.e.
Credit Department and Operation Department. In Operation Department,
there is Customer Service& Remittance, Bills & Clearing and Cash
Department. Each department has its own functions. The concerned
department performs their duties and responsibilities regarding the functions
of their departments.
a. Customer Service/Remittance Department
Customer Service Department (CSI J) is one of the major departments of this
organization. The CSD is also known as Information Desk and it plays a key
role in attracting the customers and maintaining image of the organization.
The entire customers' related tasks are done in this department like various
account opening. Providing correct information about bank's products and
services, counseling and motivating them to utilize the services offered by the
bank and satisfying their queries regarding hank and its services.
Further, CSI) offers issuing of cheques and balance statement, filling the
ATM/VISA Cards set-vice and maintaining the card registered. This
department is also the reception of the bank where the functions such as
handling telephone, transferring calls, receiving and sending mails,
forwarding document & files, maintaining those documents/files are carried
out.
There is no separate Remittance Department in Bagar Branch. Thus,
Remittance is also performed in CSD. The process of receiving and sending
of remit horn abroad or various parts of the country through Prabhu Remit is
carried out from CSD. Money Gram and Japan Money Express (JME) remits
are also performed. The remittance has helped many customers to receive or
send money at any place easily and quickly.
2.1.4.2 Teller/Cash Department
Cash department is one of the important and risky department as the
transaction are directly associated with real cash. Hence, the teller must be
very careful and must have great presence of mind while handling transaction.
The teller is responsible for the cash deposits and payments. They make
payment against cheque. withdrawal slip. managers cheque, demand draft and
other payable instruments by verifying the signatures of the concerned person
or party.
As operation in charge/head have direct responsibility and authority regarding
the cash department. the person is most is liable to any defaults and mistakes
occurred to this department and so are the tellers who must report to the
operation in charge in any abnormal situations. The operation head monitors
cash position and transfer excess funds to Nepal Rastra Bank (NRB) which is
the most important function of the bank. They perform other tasks such as:
vault book verification of cash and cash items.
Cash Department has other functions like counting, sorting cash properly and
bundling cash deposits according to demonstrations and currency. The
important function of cash department is to monitor cash position in view of
issuance coverage. Maintaining cash transaction and register and verifying
daily transaction list at the end of the day.
2.1.4.3 Credit Department
This department is one of the major departments of every bank. This
department has the major function of mobilizing the funds that is created by
the deposits through leading it in different sectors. This department provides
credit/loan to the customers, after looking and analyzing various documents
concerned with the loan demander such as: collaterals for the security
purpose, financial background, legal documents etc. to know the customers
feasibility. This department sets various interest rates according to the types
of loan provided as per the policy formulated for credit creation.
2.13 Products of the Organization
Basically every commercial bank offers major two types of products. These
are Deposits and Loans. Beside this, bank also offers various types of
products I" and services. The products offered by PBL are:
2.1.5.1 Deposit
Deposits are the major foundation upon which banks thrive and grow. They
are a unique item on a bank's balance sheet that distinguishes it from other
types of business firms. Deposits are the liabilities for bank. It provides most
of the raw material for bank loan and thus represents the ultimate source of
bank's profit and growth. The various types of deposits offered by PBL are:
a. Current Account
A Current Account is ideal for carrying out day-to-day business transactions.
It is a transactional non-interest bearing account where in a deposit is placed
with the Bank for an unspecified period. Which can withdraw required
through different means.
Prabhu Bank offers the following Current Accounts:
• Individual Current Accounts
• Institutional Current Accounts
b. Saving Account
Saving account is the interest bearing account in which the customers get
interest on the sum of money they deposit. It is interest bearing demand
deposit which is designed to attract funds from the customers who wish to set
aside money in anticipation of future expenditures. In saving account the
customer can deposit money and withdraw to the extent which is available in
the balance except minimum balance. This scheme is designed to facilitate
easy withdrawal of funds when required and to provide interest on the
remaining balance. Interest is paid on quarterly basis. Prabhu Bank offers
wide range of Savings Accounts as: Prabhu Smile Savings. Prabhu Aashirbad
Savings, Prabhu Normal Savings. Prabhu Student Savings, Prabhu Khutruke
Savings. Prabhu Foreign Savings, Prabhu Senior Citizen Savings. Prabhu
Shareholders Savings, Prabhu Salary Savings. Prabhu Paurakhi Bachat,
Prabhu Naranari Savings, Prabhu Special Savings, USD Savings. The List of
various Saving Accounts provided by Prabhu Bank along with minimum
balance and interest per annum can be highlighted from following table.
trable 2.1
Various Saving Accounts Offered by Prabhu Bank

Saving Accounts Minimum Balance (Rs) Interest Rate (%pa)

Source:www.
c. Call Account
Call account is a special account that is called on short notice. It is also
known as money at call and short notice. It is a blend of saving account and
preferred by business communities. it is ideal for carrying out day to day
business transactions by the corporate on which corporate have the privilege
of earning interest. Interest is based on the negotiation between the institution
and the bank. Prabhu Bank offers Prabhu Call Deposits and Prabhu Structured
Call Deposits. The table showing call deposit products with minimum balance
and interest is as:
Table 2.2
Call Deposit Products Offered by Prabhu bank

Deposit Products Minimum Balance Interest Rate (%p.a.)

Prabhu Call Deposits 10,000 Up to 2.00
Prabhu Structured Call Negotiable Negotiable
Deposits
Source: www. .com
d. Fixed Deposit Accounts
Fixed deposit accounts are normally designed to offer higher interest rate than
any other saving account. Customers can make fixed deposit for a certain
period of time in which they are not supposed to withdraw any amount.
Customers who do not generally require withdrawing the amount for daily
purposes and who have more money open this type of account. They
generally deposit large amount of money and meet their daily expenses
through the interest earned from the fixed deposit. The interest rate on fixed
deposit varies according to the maturity period. Interest is transferred to the
saving account So, if the customer already has saving account then no
requirement to open saving account Otherwise the customer has to open the
saving account along with fixed account.
Prabhu Bank offers the following Fixed Deposit Account

 Individual Fixed Deposit Accounts

 Institutional Fixed Deposit Accounts

Further these accounts can be categorized as Aadarsha muddati, Unnatishil

Muddati and swarnim Mudditi. This is presented in the table as follows:
Table 2.3
Fixed Deposits Offered by prabhu bank

Deposit Products Interest Rate (%p.a)

Institutional
1 month

Individual

Aadarsha
Unnatishil Muddati

Swrnim Muddati

2.1.5.2 Loans
Banks are expected to support their local communities with an adequate
supply of credit for all legitimate business and consumer financial needs and
to price that credit reasonably in the line with competitively determined
interest rates. How well a bank performs its lending function has a great deal
to do with the economic health of its region, because banks loan support the
growth of new business and jobs-within the bank's trade territory and promote
economic vitality.
Prabhu bank has divided its loan an financing among the following
headings:
a. Consumer Banking/Loan
Prabhu Bank's Consumer Banking Division offers a wide range of consumer
loan products and services to meet the individual financial needs. These wide
ranges of loans will enable the customers to move into their own home, or
buy their dream vehicle, or enhance their business, or brighten their child's
future. Our quick and ease loan application processing will ensure that your
application is processed in minimum time and in a hassle-free manner.
Products and Services under Consumer Banking include: Home Loan. Auto
Loan, Education Loan, Loan against Share, Hire Purchase. Real Estate Loan,
Personal/individual Loan (Term/Revolving), Chelibeti Laghu Uddhyamshil
Karja.
b. Small and Medium Enterprise (SME) Banking loan
Prabhu Bank's SME Banking Division offers a wide-array of financial
products to Small & Medium Enterprises. Whether you are already running or
starting a new or expanding your business, Prabhu Bank strives to provide the
entire spectrum of solutions. Products and Services under SME Ranking
include: Trust Receipt/STL/Import Loan. Demand Loan/Bridge Gap Loan,
Overdraft, Term Loan, Hire Purchase Loan and Loan against Share.
c. Corporate Banking
Two types of banking fall under this category they are:
1. Business Banking/Loan
At Prabhu Bank, we understand the financial needs of Large Corporate in
their ambitious growth plans towards building globally competitive
companies. With a primary focus on clients who are in need of bank finance
above Rs. 50 million, our strategy is to actively engage in providing capital
and operating solutions through teams of highly experienced and responsive
bankers, From manufacturers to service providers, we help our clients achieve
their goals. Products and Services under business banking include: working
capital financing, Term Loan, Hire Purchase, Import loan. Expert Loan, Short
Term Loan, Letter of Credit, Rank Guarantees Bills Purchase / Discounting,
Negotiation Collection. Foreign Exchange, Forward Contract, Micro finance
–Wholesale.
2. Consortium and Project Financing
Consortium & Project Finance Division of Prabhu Bank offers funded and
non funded facilities required to the large corporate in the nation for their new
projects, expansion and innovation. The bank offers various credit facilities
such as term Loan, working capital , letter of credit, Bridge gap loan etc. and
the credit facilities are designed accordingly to match project business
requirement and cash flow of the project/business, we are capable of
arranging consortium finance/loan syndications and also takeover the loans.

Table 2.4
Interest Rate on Different types of Loan

Lending Interest Rate (%pa)

Source :www. .com
2.1.6 SWOT Analysis
SWOT is an acronym for strength, weakness, opportunities and Threats. It is a
structured planning method that evaluates those four elements of a company.
It involves specifying the objectives of the company and identifying the
internal and external factors that are favorable an unfavorable to achieve that
objective. It is an analysis of internal as well as external environment of the
organization. The internal environment consists of the strengths and weakness
whereas external environment consists the opportunities and threats of the
organization.
The PBL, Bagar branch has also got its own Strengths, Weakness,
Opportunities and Threats. The major finding form SWOT analysis of PBL,
Bagar Branch are as follows:
Table 2.5 SWOT Analysis

Strength Weakness
 Good  Unm
working environment anaged physical lay out
 Qualit  Insuf
y services ficient marketing
 Good  Fewe
relation with customers r staffs
 Use of
new technology
 Large
networking of branches and ATMs
 Excell
ent management team

Opportunities
 New
investment opportunities
 Growi
ng international trade
 Introd
uction of innovative schemes and
services
 Impro
Threats
 Politi
cal instability
 Inten
se competition
 Chan
ge in customers preferences
 Perm
ission to foreign banks to enter in
vement and new innovation of Nepalese market
technology  Quic
 Major k innovation in banking technology
ity of local business

Source: Field Observation/Survey

2.2 Findings
The held observation provided the opportunity to understand, identify and
solve some of the problems faced by the bank. The major finding foundz in
the CSD of the bank are:

 PBI. Bagar branch is providing services to a

large number of customers inside and outside Pokhara Valley.
 The majority of customers doing the
transactions are from the nearby areas like Bagar, Deep, Lamachaur,
Batulechaur, Harichowk etc.
 The customer inflow in the bank is quite
satisfactory. Both the cash deposit and cash withdraw is done in continuous
manner.
 The hank provides wide ranges of products
and services to the customers. The remittance service in the bank is good
enough. People from nearby areas come for remit sending receiving through
Prabhu Remit.
 Money gram and JME remits are also
provided but these remits are done through head office.
 More number of customers prefers to do
loan transactions rather than other transaction as the bank charges reasonable
interest rates.
 There is good communication, healthy
completion and healthy relationship among the personnel's.
 CHAPTER III
SUMMARY AND CONCLUSIONS
3.1 Summary
This study was carried out to fulfill the requirement of Bachelor of Business
Studies, under Trihhuvan University. For the project work program, PBL
Bagar Branch was chosen due to the proximity from the residence. Both
primary and secondary sources of data were used in order to gather
information for the report. Various qualitative and quantitative approaches for
information generation were done along with self participation in the
workplace. This report will be significant to future researchers as well as PBL
itself to understand their performance.

Prabhu Bank Limited is the outcome after the merger of

………………………………………………………..With a shared vision of
"Power to Succeed……………………..". Prabhu Bank's Team is committed
in providing quality services and products to its valued customers with utmost
courtesy and care. The PBL Bagar Branch consists of two major departments
i.e. Operation department and Credit department. Within operation
department, it has got Customer Service Remittance department and Cash
department. The report basically focuses on the overall activities of Customer
Service Department. Customer Service Department (CSD) means the front
desk of any organization that enables face to face interaction with the
customers who visit the organization. For any organization, it is the very
place where any early impression to the clients is made and the image of the
organization depends upon the effective functioning of this department.
3.2 Conclusion
The field study in Prabhu Bank, Bagar Branch was a very fruitful experience.
From this study, the knowledge about the working environment and the
banking activities was gained and on-the-job experience of bank was realized.
The study refers to the Customer Service Department that deals directly with
the customer's enquiries, handling complaints and service distribution. PBL is
able to maintain strong relationship with its customer through various
customer oriented products and services.
During the study program, it was a different experience and exposure to the
real work scenario. The researcher learnt a lot about the banking sector and
banking operations. Researcher has acquired the objectives that researcher
had wanted to achieve. Researcher came to know about the various products
and services offered by PBL. After analyzing the inner functioning of the
bank, Internee found that each and every operation was so systematic and
efficient. There is a good management of the human resource. The formal
structure of the bank has helped extensively in the decision making from the
top level and from the lower Level as well. The employees of the PBL are
good enough to influence their customers, which facilitates the operation of
the bank.
1 got opportunity to observe, how people work in team and how they put their
synergized effort for better outcome. PRI is constantly attempting to provide
better and quality service to the customer. The completion of study in the
Parhhu Bank Bagar Branch has provided a great experience in the entire
academic Life. This has helped in enhancement of the financial instinct and to
gain knowledge about corporate culture which is going to be useful and
helpful in the future.
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Sharma. Laxmi……………… (2014). Customer Service Department

…………………..Prabhu Bank. ………………… road branch Unpublished
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