CHAPTER I

INTRODUCTION

1.1Background

The four years graduation degree of BBA at Prithvi Narayan Campus ,affiliated to
Tribhuvan University (T.U) necessitates students to undergo an extensive intensive
program,in the eight semester for the partial fulfillment of Bachelor in Business
Administration .The eight-week internship period which all BBA students are required to
undertake aims to train and prepare students for managerial functions,develop
interpersonal relationship and communication skills by putting them in “real-life
situations” through an organization .After the completion of internship ,it is mandatory for
the students to submit a report based on experiences gained and knowledge of the
institutions .Internship was done in Prabhu Bank Limited (PBL) atBirauta branch.The eight
week period began from June 15 to August 15. As an internee,it was a privilege to be
placed in various departments such as Customer Service Department andremittance
department of PBL.

The internship is the requisite of BBA program that carries a credit of 6hours.Every
student should go through 8 weeks long internship in any industry relating to their
specialized subject, in order to fulfill the partial requirement of BBA program .It helps to
equip the student with practical application of the conceptual inputs that familiarize
students with the overall operations of the organizations and the interaction of the total
environment within which they operate. It assists in improving the interpersonal and
communication skills required to sustain in the competitive business environment .It
provides a platform for gaining the essential managerial and public relationship skills and
is an excellent means for gaining work experience.

Financial sector plays a crucial role in the development of the economy. Banking sector
has a central role in establishing all the parts of the economy .Banking sector has emerged
as a major player in the service industry .With this truth in view the internship program is
designedto developing student’s skill in object–oriented business management,capable of
understanding and solving real life business related problems.It provides practical
exposure and helps students to understand corporate world .This course deals with the

1
fundamental concept of corporate worlds which are essential for any persons aspiring to be
the active participant of this competitive world.

As per the course requirement of the BBA program every eighth semester,the students
should prepare internship report after the completion of the two months internship in the
institutions.This internship has been fruitful because it has helped to see the same things
from the two opposite directions and find the differences in the perception of these two
completely opposite sides as a neutral observer.

Prabhu Bank Limited (PBL) a commercial bank ,was established to facilitate the consumer
with its deposit and credit facilities .Since the internship is completed in PBL ,this report is
outcome of the valuable real-life experiences obtained during the internship in that
organization.Getting involved in PBL as an intern in various departments internee was able
to confront the real job-place experience and got the chance to feel the different situations
from the perspective of both the employees and the customers.

Help desk or Customer Service Department is meeting center with new or first time
customer as well as general service providing to existing customers. In this
department,cheque book issuing, making transaction statement, new account opening,
account closing,passing deposit voucher and printing cheque are done.Help desk is the
desk where all required information are provided to the customers.Customer Service
Department is the primary level services,since the customer entering in bank has first
contact in this department with their queries .

Help desk department must be responsible for providing surface level all kind of needed
services to the new and existing customers. Customer satisfaction is depends in customer
service center. It is the most important department of any bank and other institutions .It is
the place of first contact for most of the bank.This department is considered as one of the
most valuable since customer is convinced to invest their saving in the organization.

Customer Service Department is very essential and vital for succession of bank and
satisfying to customers.Customer counseling is the most important function of this
department. This department is concerned with the counseling to the new customers as
well as the existing client regarding products and services provided in this branch.The
efficiency of help desk department or an organization is the outcome of quality of the
customer counseling that is provided(Laxman,2016).

2
1.2Objectives 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 situations.It is also a
platform to show the ability to mold the theoretical knowledge learned throughout the
BBA program as per the requirement of the job placement.

The objectives of the study are as follows:

 To identify the various services and facilities rendered by bank.

 To know about various activities done at customer service department.
 To develop interpersonal relations in the working environment.
 To develop and enhance communication skills to tackle the real life situations.
 To analyze the importance of various departments and their roles in the banking
sector.

1.3 Methodology

This report has been prepared on the basis of two months internship experience gained at
Customer Service Department and Remittance department of Prabhu Bank
Limited .Interaction with the staffs and the operational knowledge gained is the major
source of primary data for the study.It starts from the selection of the organization for the
internship, performance of different kinds of activities and placement in the organization
and last collection of various primary and secondary data for the preparation of the report.

1.3.1.Sources of Data

Generally the data can be collected from two major sources .They are as follows:

a) Primary Data
Primary data are those data,which are collected directly from the concerned person
personally and face to face on the spot .They are generally used in those times where
the secondary data do not provide an adequate basis for analysis. Here; the primary
data are collected from different sources:
 Different opinion of customer
 Observation
 PBL Employee

3
 b) Secondary Data:
Secondary data are those data which are generated from other sources directly or
indirectly .Those data are collected on the basis of following sources:
 Annual reports
 Web site :http//www.prabhubank.com.np
 Brochure
 Internship report of previous batch students
 Published Document

1.3.2Organization Selection

As the selection of BBA specialization for the final semester was Business Finance, the
selection of good organization was very important. Taking into consideration the numerous
options available for the internship,PBL a commercial bank of Nepal was chosen for the
unique set of advantages it offered. The bank was approached dropping recommendation
letter of collage and curriculum Vitae.Bank accepted the request and internee was provided
opportunity to do internship at Prabhu Bank Limited at Birauta branch.

1.3.3Placement

After a week,the date for an intern was informed and a contract letter was signed agreeing
all the terms and conditions of the bank.The internship was started from 15 July to 15
August 2017.Intern was appointed at Birauta Branch of Prabhu Bank Limited, Pokhara.

During the eight weeks of internship,internee was mostly placed in Customer Service
Department (CSD) and Remittance Department.However,the opportunity of gaining
insight knowledge about the operational process and other activities of various departments
within the branch was also provided in the bank.The encouraging and cohesive
environment made the process of learning easier.

1.3.4 Duration of Internship

As per the requirement of the BBA Curriculum, one has to complete eight weeks
internship period in the work place as per their partial fulfillment of BBA program
according to their specialization subject. So,in order to fulfill this requirement,an
internship was done for the two months starting from June 15 to August 15 from 10:00 am
to 5:00 pm .During this period the intern came to learn many more about the working
environment,work procedure and culture in different department.

4
 Table 1.1: Division of Weeks and Activities Performed

Activities /Weeks 1st 2nd 3rd 4th 5th 6th 7th 8th

Customer Service Departments

Remittance Department

1.3.5Activities Performed in Bank

Every department needs to perform a different functions and internee had the good
opportunity to learn and practice various activities.During the eighth weeks of the
internship intern has been involved in various department as explained below:

Customer ServiceDepartments

 Account operation (account opening and closing)

 Process from printing cheques to submitting to final customers.
 Assisting customers to fill various form(ATM, account
 Opening,account closing, SMS banking, e-banking,newsignature card,new
cheque,KYC).
 Signature card scanning and entering in software.
 Checking balance and finding account number.
 Printing bank statement
 Forwarding customers to respective department as per the requirement of
customers.
 Registering date,time and signature in ledger according to application number.

Remittance Departments

 Handling customers queries about remittance service.

 Providing, collecting and checking the web remit receipt and sending forms.
 Making ready for payments to the customer whose money is sent after filling and
cross checking the forms.
 Helping the customers fill in details in the form.
 Entering the information in banking software.
1.4Limitations

5
It was great opportunity to be an intern in the bank.The knowledge gained during the
course of internship was a rare feat.However, the internship had some limitations .The
main limitations of internship are listed below:

 The report is based on individual understanding and knowledge gained during the
internship period and theoretical knowledge that have been previously studied.
 It was difficult to have in-depth study due to the time constraints.
 The bank’s policy in keeping some matters confidential prevented from analyzing
various critical facts and issues.
 Time and resources constraints are the major limitations of this report.
 This report does not explain the overall functioning of the bank.
 The report cannot be generalized into entire banking industry.
 Busy schedule of organizations made it difficult to share overall knowledge they
have.
 Since the intern is confined to few departments,only the related data of limited
departments are available.

However, ignoring all limitations,it has been best tried to gain adequate banking
knowledge and sincerely perform the task assigned.

6
 CHAPTER II

INTRODUCTION TO BANKING INDUSTRY

2.1 Meaning and Definition of Bank

A bank is a financial institution that accepts deposits from the public and creates
credit .Lending activities can be performed either directly or indirectly through capital
markets .Due to their importance in the financial stability of a country ‘banks are highly
regulated in most countries’. Most nations have institutionalized a system known as
financial reserve banking under which banks hold liquid assets equal to only a portion of
their current liabilities.

It is a financial institutions established by law,which deals with money.In simple word,the

bank is an institutions engaged in monetary transactions.It is a depository financial
institution which purchases money and sells money for money.In this way,a bank is a
sensitive sector of the industry because it plays with the public money.The primary
operating activity of any bank is to collect fund in the form of deposit from the surplus
sector of the economy and transfer this collected fund to the deficit unit of the economy in
the form of loans.The benefit that the surplus unit gets by depositing their access fund in
the bank and the charge that the deficit unit pays for using the fund of the bank are both
expressed in percentage and that rate is known as the interest rate.The difference between
the lending interest rate and borrowing interest rate is called interest spread and this spread
is the major source of income of any bank.

Bank is a financial intermediary which creates the relationship with both the surplus units
and the deficit units.To create the relationship with these units,bank offers various
financial products and the person who purchase that product will knowingly or
unknowingly becomes the relative of the bank.The major financial products that any bank
offers to the public are various deposits schemes and the loan schemes .The one who are in
need of money or funds purchases the loan products as per their requirement and the one
who have excess funds purchases the deposits schemes.

Bank exists in the economy to perform the functions of the intermediary .Banks
intermediates not only the surplus and deficits units but also performs various management
activity to create a balance in the economy .It should perform the size inter-mediation

7
because in general surplus units are large in number but they less amount of surplus funds
and the opposite scenario is of the deficit side.Similarly,it should perform the maturity and
information intermediation as per the requirement.

In the present context,bank has become the basic need of the human which performs not
only the basic financial activities but also performs the non- financial activities to ease the
human life.According to Nepal Rastra Bank Act,“A bank is a financial institution which
provides financial services that may be in the form of accepting deposits, advancing
loan,providing necessary technical advices,dealing over foreign currencies,remitting funds
etc.”According to C.W.Crowther,“A bank is an institution which collects money from
those who have it to spare and who are saving it out of their income and lends this money
out to those who require it.

So,bank may be defined as financial intermediary between depositors and the credit
seekers .Bank is among the most important financial institutions in the economy and
essential business in thousands of local towns and cities.Bank plays different kinds of roles
like intermediary,underwriter,utility players
etc(http://internshipreportpresetation.blogspot.com/2015/10/internship-report-on-nepal-
bank-limited.html?m=1).

2.2 Origin of Banking

The concept of banking is not a modern concept.The concept had started to evolve in the
brilliant human mind immediately after the humans were able to realize and develop
money.Though money had made the human life much easier than before but ancient
humans started to realize the complexities that evolution of money had created in their
life .So,in order to overcome these complexities and the difficulties that were attached with
the benefit of money, the concept of banking emerged in the human mind.Earlier the
moneylenders and the landlords perform the banking activities as the informal banks but
later the activities of these people are formalized and the concept of bank as an institution
had emerged.

Moving towards the word “Bank”,it is thought to be derived from the Italian word
“Banco”,Latin word “ Bancus” and French word “Banquet” because all meant the bench in
which the bankers would keep money and its records .The Jews ofLambardly were thought
to be the early bankers who transacted third business at the benches in the marketplace and

8
when they were unable to meet their liabilities ,the depositors use to break their benches
and this tradition had given birth to a banking term “Bankrupt.”

Banks were first introduced in Rome with its vast trade networks that extended throughout
the Europe,Asia and much of Africa.Following the footsteps of this bank,other banks were
also established. Namely:Bank of Barcelona (1401), Bank of Genoa (1407),Bank of
England (1594) and the Bank of Amsterdam (1609) .Likewise India established its first
bank ,”Bank of Hindustan” in 1770.These modern banks gradually replaced the
merchants,goldsmith and money lenders.In 1960’s banking was introduced to world
because of increase in their worldwide operations and increase in multinational
companies(http://internshipreportpresentation.blogspot.com.br/2015/11/internship-report-
on-bank-of-kthmandu.html?m=1).

Nowadays, banks are referred to as lifeblood for business houses as they offer many
facilities like travelers cheque,insurance services,pension services and
otherinvestments.The crucial breakthrough in the modern banking history was made in
1694 A.D when the first modern bank “The Bank of England” was established .After the
establishment of this first English Bank,Banking sector had experienced various ups and
downs but still they persisted and because of that persistence they are now able to exist in
this 21st century world as one of the essential element of human life.

Presently banks are not only the deposits collecting and loan lending institutions but also
institutions which helps its customers from various ways as per their convenience and
ability with full security.They had been developed as the essential service providing
institutions in this rushing world .The banks had start affecting the lifestyle of the citizens
as well as the economy of the country as well.The recent recessionof 2008 is the outcome
of the inefficient banking practice and the world had to suffer much only because of the
inefficiency and negligence of a single banking sector.Hence, banking had become an
important element of the world economy in the present time
(internshipreportpresentation.blogspot.com/2015/10/internship-report-on-nepal-bank-
limited.html?m=1).

2.3 Evolution of Banking Sectors in Nepal

Banking service is the oldest service industry in Nepal. It has gone through the various
stages of evolution and development since the Vedic times (2000 to 1400 BC). Though the

9
modern banking institution has a very recent origin in Nepal, some crude bank operations
were in practice even in the ancient time in the Nepalese Chronicle, it was recorded that
the new era known as Nepal Sabbath was introduced by Shankhadhar, a sudra merchant of
Kantipur in 879 or 880 A.D; after having paid all the outstanding debts in the country. This
shows the basis of money lending practice in ancient Nepal. Towards the end of 8 the
century, GunkamDev had borrowed money to rebuild the Kathmandu valley. In 11th
century, during Malla regime there was an evidence of professional moneylender and
bankers. It is further believed that money lending business, particularly for financing the
foreign trade with Tibet, became quite popular during the regime of Mallas. However, in
the absence of any regulatory measures, the unscrupulous moneylenders were known to
have charged exorbitant rates of interest and other extra dues on loans advanced.

These inconvenience led the then prime minister Ranodip Singh (1877-1855) to establish
TejarathAdda with the introduction of a number of economic and financial reforms in
Kathmandu, which was a government financial institution supplying credit to the people at
5 % rate of interest against security of gold, silver and ornaments. During the time of
Chandra Shamsher (1907-1929), credit facilities of Tejarath were extended to some parts
of the country by opening its branches. However, the establishment of “KausiToshaKhana”
as a banking agency during the regime of King Prithvi Narayan Shah could also lay claims
to be regarded as the first step towards initiating banking development in Nepal.

Later, with the growing necessity of the commercial banks in the world, Nepal Bank
Limited (NBL), the first commercial bank of Nepal, was established in 1973 AD replacing
the older system or banking, under the special Banking Act.1936 having elementary
function of commercial bank as a semi government organization, without existence of a
central bank in the country. The inception of Nepal Bank Limited was a landmark in the
field of banking and financial sector in Nepal.

The first central bank named as the Nepal Rastra Bank (NRB) was established in 26 th
April 1955 with as objective of supervising, protecting and directing the functions of
commercial banking activities.

Another commercial bank fully owned by the government named as RastriyaBanijyaBank

(RBB) got established in 1965 under Banijya Bank act 1965 AD. In the present scenario
different types of banks are being practiced in Nepal, but among them commercial banks
play a vital role in the economic development of the country.

10
During the mid-1980s three foreign commercial banks opened branches in Nepal. The
Nepal Arab Bank which was co-owned by the Emirates Bank International Limited
(Dubai),the Nepalese government and the Nepalese public. The Nepal Indosuez Bank was
jointly owned by the French partners, RastriyaBanijya bank, RastriyaBeemaSanstha
(National Insurance Corporation), and the Nepalese public.

In 1993 A.D. Himalayan Bank Ltd was established under a joint venture with Habib Bank
Ltd- Pakistan and Nepal SBI under a joint venture between employee’s provident fund and
SBI. In 1994 A.D. Nepal Bangladesh Bank Ltd. was established under a joint venture with
IFIC Bank Ltd. of Bangladesh.

After 1995 A.D. Bank of Kathmandu, Nepal Credit and Commerce Bank Ltd., NIC Bank,
Lumbini Bank, Machhapuchhre Bank Ltd., Kumari Bank Ltd., Laxmi Bank Ltd.,
Siddhartha Bank Ltd., etc were established. Currently there are altogether 30 commercial
banks operating in Nepal (https://benmakehappy.blogspot.com/2015/08/internship-report-
of-sbi-bank-of-nepal.html?m=1).

2.4 Classifications of Banks

A modern banking system demands different types of banking services. So to fulfill all the
functions demanded by the customers, different types of banks emerged in the banking
industry specializing in different functional areas and with different purposes. The highest
authority on the pyramid is the central bank of Nepal, Nepal Rastra Bank. NRB decides
and formulates various guidelines for the banking sector in the country.

NRB has classified different banking and financial institutions broadly into four classes as
Class A, Class B, Class C and Class D. Different classes are classified on the basis of
capital requirement for their establishment.

Table 2.1: Classification of Banks

Class Type of bank No. of banks in Nepal(as of 2017)

Central bank 1
Class A Commercial bank 28
Class B Development bank 38
Class C Finance companies 30
Class D Micro finance development bank 46
Source:https://en.m.wikipedia.org

11
2.4.1 Central Bank

Central bank usually controls policy and may be the lender of last resort in the event of
crisis.They are often charged with controlling the money supplies,including printing paper
money.

2.4.2 Commercial Banks

Commercial banks primarily lend to business i.e. corporate banking .They perform
intermediary role by accepting deposits from saving units under various accounts and
lending money to needy deficit units.

2.4.3Development Banks

Development banks are established to provide capital and technological assistance for the
development of infrastructure of the country.

2.4.4 Finance Companies

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

2.4.5 Micro-Finance Companies

Micro-finance companies are sources of financial services for entrepreneurs and small
businesses lacking access to banking and related services. The two main mechanisms for
the delivery of financial services to such clients are (1) relationship based banking for
individual entrepreneurs and small businesses; and (2) group-based models, where several
entrepreneurs come together to apply for loans and other services as a group
(http://internshipreportpresentation.blogspot.in/2015/11/internship-report-on-nepal-
investment.html?m=1).

2.5 Commercial Banks in Nepal

The commercial banks are those banks which are established to accept deposits and grant
loan to the industries, individuals and traders with a view to earn profit. Apart from
financing, they also render services like collection of bills and cheques, safekeeping of
valuables, financial advising etc. to their customers. In Nepal, after the liberalization policy
adopted, the commercial banks started to bloom. The bloom was seen not only in terms of
their number and branches but also in the number and variety of services provided by

12
them. In the mid-1980s three joint venture commercial banks were established in Nepal –
The Nepal Arab Bank, The Nepal Indosuez Bank and Nepal Grindlays Bank. The number
grew to ten commercial banks by 1990 which grew to twenty by end of 2007. Currently the
number of banks, development banks, finance companies and microfinance counts to 28
commercial banks, 38 development banks, 30 finance companies and 46 microfinance
institutions in the country( https://en.m.wikipedia.org).

Functions of Commercial Banks

The functions of commercial bank can be classified into three categories. They are:

1. Primary Functions
 To accept various types of deposits like saving account deposit, current
account deposit and fixed deposit.
 To provide loans and advances in different forms like cash credit, money at
call, overdraft, discounting bills of exchange, term loans, etc.
2. Agency Functions
 To collect and clear cheque, dividends and interest warrant.
 To make payments of rent, insurance premium, etc.
 To deal in foreign exchange transactions.
 To purchase and sell securities.
 To act as trustee, attorney, correspondent and executor.
 To accept tax proceeds and tax returns.
3. General Utility Functions
 To provide safety locker facility to customers.
 To provide money transfer facility.
 To issue travelers cheque.
 To accept various bills for payments like phone bills, water bills, etc.
 To provide merchant banking facility.
 To provide credit cards, debit cards, smart cards, etc.

2.6 Present Scenario of Nepalese Banking Sector

In the context of present situation there is tough competition for banking industry. The
overall competitions have been increased over the gap of time. As, we know the economy
of Nepal is very small but number of service provider high. Due to this reason many

13
banking industry is facing lots of problem. Some are in the position of insolvent and some
are in the process of merger .The political instability is creating lots of problem in their
operation. Few banks are making their presence in market by providing security and
confidence to customer. Banking industry is failing to achieve their respected target. The
NRB has classified the financial institutions into “A” “B” “C” “D” categories on the basis
of the minimum paid-up capital and provide the suitable license to the bank or financial
institution. Group “A” is for Commercial Bank. “B” is for Development Bank, “C” is for
the Financial Institutions and “D” is for the Micro Finance Development Banks. There are
28 commercial banks, 38 development banks, 30 financial companies, and 46 micro credit
development banks .These days, modernized banking services such as the banking
software, ATM, E-banking, Mobile Banking, Debit Card, Credit Card, Prepaid Card etc.
are available in the banking system in Nepal(https://en.m.wikipedia.org).

2.7 Opportunities of the Banking Industry

The main opportunities of the banking industry are highlighted below:

 Given the demographic shifts resulting from changes in age profile and household
income, consumers will increasingly demand enhanced institutional capabilities and
service levels from banks.
 The deregulation has widened the scope of banking industry thus providing investment
opportunities in various sectors like hydropower, tourism, agriculture, housing etc.
 Banks today are provided with the opportunities of mergers, acquisition and joint
venture which if carried out properly can have significant impact in the industry as well
as to the economy as a whole.
 Likewise, advancement in technology has developed new ways and tools of performing
the banking activities that has led to the customer convenience.
 There are also opportunities to explore into the rural markets via innovative products
such as microfinance, mobile banking etc.

2.8 Threats/Challenges of the Banking Industry

The main challenges of the banking industry are highlighted below:

 There has been rise in inflation rate which is a challenge for the banking industry
because it definitely raises the interest rates too.

14
 There has been threat of stability of the system. It is because failure of some weak
banks has often threatened the stability of the system.
 To survive in a country where there is frequent change in government and its
policies about the banking industry is really a big challenge for this industry.
 Burning global issues of money laundering and terrorist financing are constantly
posing threats to the banks and thus most of the banks are following the KYC
(Know Your Customer) guidelines.
 Globalization and increasing mergers and acquisition are also causing the collapse
of many banks. Political instability is also the major threat Nepalese banking
industry is facing currently.

15
 CHAPTER III

BRIEF INTRODUCTION OF THE INDUSTRY

3.1 Background

From its humble beginning as a Finance Company to its current stature as one of the
largest private Commercial Bank of Nepal, Prabhu Bank Ltd has come of age and
experience. The Bank has completed years of journey since the inception and has
accommodated 7 different financial institutions in its making. The Bank has gone through
the various phases of its growth trajectory over a short period of its existence. The growth
of Prabhu Bank was phenomenal, especially after merger of Grand Bank Nepal Limited,
Kist Bank Ltd, PrabhuBikash 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. The bank has a network of 133 branches and 121
ATMs across the country, making it premier private bank in terms of geographical reach
and clientele segments with customer base of 850,000. 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 Banking 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

16
believes that a bank is only successful when its customers are successful.It has the largest
number of customers among all financial institutions in the country.Bank has remained
vigilant towards an increasingly competitive business environment and has pursued a
strategy of steady growth focusing on mergers and acquisitions. The key Management
Personnel include members of the Board, Chief Executive Officer and other executives of
the Bank(www.prabhubank.com).

3.2 Vision,Mission and Objectives

3.2.1 Vision:

The vision ofPrabhu BankLimited is “To support individuals, families and businesses to
attain financial independence and improve their financial wellbeing”

3.2.2 Mission Statement:

To become the leading commercial bank in Nepal by providingthe finest quality of

financial products and services tocustomer. Enhance our shareholders values,contribute to
the economic prosperity of the country and to create continuous learning and growth
opportunities for the people to standardize their quality of life.

3.2.3Objectives:

PrabhuBank Limited has the following objectives:

 Focus on building the positive net worth and meeting minimum capital requirement
over the coming five years.

 Focus on increasing the customer base and market share.

 Maximize the potential/efficiency of bank's staff.

 Focus on minimizing the risk associated with the business.

 Focus on providing the world class business solutions.

 Focus on increasing the sustainable profit.

3.3 Branches of PBL

The PBL is one of the leading banks that have large number of branch all over the Nepal. It
has spread its branches to the different places of Nepal focusing on rural and urban areas. It
has been successful to cover the large market share of Nepal. It has provided its services

17
through 133 branches. The bank has been successfully providing services to various
categories of potential customers like individual organization, senior citizen, women,
children, retired officer and so on.

Table 3.1 PBL Network Overview

Branches No of Branches

Inside Kathmandu Valley 44

Outside Valley Branches 89

Total Branches 133

(Source: Annual Report Prabhu Bank Limited)

3.4 Organizational Design and Structure

PBL has flat and horizontal organizational structure in different department. Each plays an
effective role in day to day operation and decision making easy and effective. Each
department is well planned so as to perform several departments' works. Basically, there
are two departments in PBL (Birauta Branch) credit department operation department.
Within the operation department, there are three sections such as teller (cash), customer
service, remittance and clearing. And within the credit department is loans facility. The
bank's organizational structure is presented in the following diagram:

Fig 3.1: Organizational Structure of PrabhuBank Limited, Birauta Branch

Branch Manager

Credit in charge Operation In-charge

Credit (loans)
Customer Service Teller (Cash) Remittance & Clearing

3.5 Product and Services of PBL

18
Product is the main source of the revenue of the organization. Service determines the flow
of customers. The main function of the bank is to provide service to its customers in an
effective and efficient manner. Under deposit section it include fix deposit and normal
saving account, similarly under the loan section it includes hire purchase loan, home loan,
business loan, loan against the security.

A. Deposit

Saving Accounts

The Savings account is meant for those individuals who have a habit of saving money from
their earnings so that they can use it when they require. It is a transactional interest bearing
account wherein a deposit is placed with the Bank for an unspecified period, which can be
withdraws whenever they need through Bank visit or through ATMs.
Prabhu Bank offers wide range of Savings Accounts as below:

 Prabhu Smile Savings

 PrabhuAashirbad Savings
 Prabhu Normal Savings
 Prabhu Student Savings
 PrabhuKhutruke Savings
 Prabhu Foreign Savings
 Prabhu Senior Citizen Savings
 Prabhu Shareholders Savings
 Prabhu Salary Savings
 PrabhuPaurakhiBachat
 PrabhuNaranari Savings
 Prabhu Special Savings
 USD Savings

Current Account

A Current Account is ideal for carrying out day-to-day business transactions. It is a

transactional non-interest bearing account wherein a deposit is placed with the Bank for an
unspecified period, which can be withdrawn whenever required through different.
However, Current Account may vary with the type of current account.

 Individual Current Accounts

19
  Institutional Current Accounts.

Fixed Account

This account is designed to collect fund from public for long period of time by providing
higher rate of interest. A Fixed Deposit Account is meant for those individuals and
corporate houses, who would like to earn higher interest on the fund, where a fixed amount
is held at fixed interest rate and is repayable (principal/interest) at a fixed future date. The
amount is payable on maturity. The interest is released in every three months.

 Individual Fixed Deposit Accounts

 Institutional Fixed Deposit Accounts

Tenure of FD

 3 months

 6 months

 9 months

 1 year

 2 years

 Above 2 years

Call Accounts

A Prabhu Call Account is ideal for carrying out day to day business transactions by the
corporate on which corporate have the privilege of earning interest.

B.Loan / Advances

Individual Resolving Loan

"Prabhu Individual Revolving Loan" an overdraft natured loan has been developed to
provide meet the personal financing requirement of salaried individuals, self-employed,
professionals, and owners of small family businesses.

Hire Purchase Loan

Our Vehicle Loan with its attractive features and simplicity in processing has been
designed with a view to fulfill the dreams of professionals, self-employed, business
executives and business houses/individuals who wish to own a vehicle of their own. Under

20
this product, we provide loans facility to purchase new/used vehicles as well as for
commercial purpose. It’s fast, convenient and hassle-free.

Housing Loan

Owning a house is a dream for many and PrabhuBank is always there to help realize the
dream under Prabhu home loan (PrabhuGharKarja) scheme. Prabhu Home Loan is a term
loan, developed to cater the personal financing needs of salaried individuals, self-
employed, professionals, and owners of small family businesses.

Education Loan

Prabhu Education loan has been designed to meet the aspirations of students for
completion of their studies both in and out of the country. Prabhu's education loan scheme
provides loan for those students who demonstrate ability, drive and ambition but do not
have the financial resources to achieve their goals.

Agriculture Loan

Based on the viability of the agriculture project/proposal, Agriculture Loan to finance the
short/long-term financing need of an individual/firm/company may be made available to
purchase tractor, seeds, fertilizers, insecticides etc and to do the farming on Coffee, herbal
products, poultry farming, vegetables, cereals, rainbow trout, etc.

SME Banking

Prabhu Bank’s SME Banking Division offers a wide-array of financial products to Small &
Medium Enterprises to support their business, whether you are already running or starting
a new venture or expanding your business.

Our products and services under SME Banking includes:

Funded Facilities

Funded facilities will include:

 Overdrafts (including revolving credits and short term advances)

 Short Term / Demand Loans
 Importer’s Loan / Trust Receipt
 Pre-shipment and Post-shipment financing
 Purchase / discount / negotiation of inward and outward bills.

21
  Project/Term Loan
 Hire Purchase Loan, which is taken to finance on the vehicles to be purchased by
firm/company for business use in line with PPG of Auto/Hire purchase loan.

Non- funded Facilities

Non-funded facilities will include:

 Letters of credit – sight &issuance.

 Guarantees – bid, performance, advance payments, supplier credit, others as per the
need.
 Negotiation of clean & documentary bills under LC/Non LC (subject to availability
of bank & country limit; discrepant documents may be negotiated subject to
exposure not exceeding the total funded lines and availability of bank & country
limit). 
 LC transfers.
 Export LC Confirmation.
 DAP(Documents Against Payment)/DAA(Documents Against Acceptance).
 CAD (Cash against Documents).

C. SMS Banking Services

Prabhu Mobile Wallet (mWallet) service is an easy and handy method of doing banking
transaction from mobile phones without having to visit bank. PrabhumWallet provides you
a secure connection to access to your bank account through a SMS based application that
needs to be installed in to your Smart Phone. You can directly access Google play store to
download Android application and App Store to download. Using such application of their
mobile phone, one can do various banking activities and enjoy the following services:

1. Enquiry

 Balance Enquiry
 Mini Statement (Last 3 Transactions)
 Banking Hour Enquiry
 Exchange Rate Enquiry
 Cheque Book Request
 Statement Request

2. Transaction Alert:

22
SMS Alert of every debit & credit transaction of 1000 or above.
3. Utility Payments:

 Recharge Cards:
 NT GSM, NT CDMA
 Broad Link/Broad Tel
 Dish Home
 NT TopUp:
 Prepaid Mobile
 Post Paid Mobile
 PSTN/ Landline
 ADSL Internet
 NcellTopUP
 GSM Post Paid Mobile
 PSTN/ Land Line
 ADSL Internet
 NT Bill Payment
 Load e-Sewa

4. Fund Transfer:

 Fund transfer to any accounts of Prabhu Bank

 Fund transfer to any accounts of Fonepay Member Banks

D. Internet Banking (E-banking)

Prabhu e-Banking Services is an internet based Service offered by the Bank to its valued
customers. E-Banking, being and Internet-based service is available anytime at your finger
tip, with the flexibility to take care of many financial transactions. Prabhu e-Banking
provides secure communications using 128-bit encryption security that assures you of
secure transactions made with the Bank.  Prabhu e-banking has dual factor authentication
with the features of One Time Password (OTP) for fundtransfer.

1. Enquiry Services:

 Account Information
 Account Statement

23
  Interest Statement
 Tax Statement

2. Requests:

 Cheque Book
 Good For Payment
 Stop Cheque

3. Messages:

 Messages to Bank
 Message From Bank

 4. Transaction Services:

 Balance Transfer
 Third Party Transfer

5. Utility Payments

 eSewa Account Recharge

 NT Postpaid Bill Payment
 NT PSTN Bill Payment
 NT ADSL Bill Payment
 NCell Top-Up

E. Locker Service

Prabhu Bank’s Safe Deposit Locker provides you with a safe and convenient place to keep
your valuables. Customers can access the locker any time during the Bank's business
hours. Each locker has a separate number and is fitted with a double key lock, which
ensures the safety of your lockers. You can keep your jewelries, important documents and
other valuables in the safe deposit locker with appropriate size.  We have different range of
locker sizes in our different branch location that suits your requirement.

24
F. Prabhu Money Transfer (Remittance)

PBL has introduced 'PMT Remit' - an online/internet based remittance service for the
purpose of facilitating transfer of earnings of Nepalese in foreign countries with the help of
available PMT agents. Along with inward remittance from foreign countries, PMT-remit is
powered by domestic money transfer facility through all of the bank's branches throughout
the country with very minimal charge.PMT Remit Service is also operated by agents of
Nepal Bank who exist in different locations of national and international topography.

G. Any Branch Banking Service (ABBS)

Any Branch Banking System (ABBS) provide customers with a flexible service for
banking from any branches located anywhere in the country. Through the nationwide
network of branches and an array of upcoming branches, one can enjoy Any Branch
Banking Service from any of the nearest Prabhu Branches. Now you can withdraw or
deposit amount, receive information about the current balance of your account from any
our branches. Prabhu Bank is providing ABBS service from the 133 branches.

H. ATM/ Debit or Credit Card

With the Prabhu Bank VISA Card you can avail of wide range of privileges. Prabhu Bank
VISA Debit Card enables wider access. With Prabhu Bank VISA Card you can access your
account 24-hours a day, 7 days a week and enjoy greater convenience to facilitate your
banking and financial needs.

Table 3.2: PBL ATMNetwork Overview

Branches No of Branches

Inside Kathmandu Valley 69

Outside Valley Branches 52

Total ATMs 121

(Source: Annual Report Prabhu Bank Limited)

25
VISA Debit Card

VISA Debit Card is a smart alternative to cash and meant to make shopping more
convenient. With the Prabhu Bank VISA Debit Card you can avail of wide range of
privileges. Prabhu Bank VISA Debit Card enables wider access to more than 400,000
ATMs and 2.5 million point of Sales (POS) terminals in Nepal, India &Bhutan.
WithPrabhu Bank VISA Card you can access your account 24-hours a day, 7 days a week
and enjoy greater convenience to facilitate your banking and financial needs.

Features/Service

 Linked with bank account and cardholder can use up to the balance available in
his/her account.
 Valid in Nepal, India & Bhutan.
 Acceptable at any ATM terminals connected with VISA networks for cash
withdrawal.
 Acceptable at any POS terminals connected with VISA networks for shopping of
goods or services.

Credit Card

VISA Credit Card is a payment card with the option of making purchase on credit as
‘Spend Now and Pay Later’. With the Prabhu Bank VISA Credit Card you can avail of
wide range of privileges. Prabhu Bank VISA Credit Card enables wider access to more
than 400,000 ATMs and 2.5 million Point of Sales (POS) terminals in Nepal, India &
Bhutan. You shall have the excess of Prabhu Bank VISA Credit Card 24-hours a day, 7
days a week and enjoy greater convenience to facilitate your need.

Features/Service

 Valid in Nepal, India & Bhutan.

 Interest free credit period of minimum 15 days to maximum 45 days
 Acceptable at any ATM terminals and any POS terminals connected with VISA
networks for cash withdrawal and shopping of goods or services respectively.
 No need to have an Account at Prabhu Bank Ltd.
 Flexible payment option of 10% to 100%.
 50% Cash Advance Facility.

26
Rupaiya Debit Card

Rupaiya Debit Card is a smart alternative to withdrawal cash from ATMs. Rupaiya Debit
Card enables wider access to more than 125 ATM terminals of Prabhu Bank in Nepal.
With Prabhu Bank Rupaiya Debit Card you can access your account 24-hours a day, 7
days a week and enjoy greater convenience to facilitate your banking and financial needs.

Features/Service

 Linked with bank account and cardholder can use up to the balance available in
his/her account.
 Acceptable at any ATM terminals connected with Prabhu Technology (PT).

International VISA Card

Prabhu Bank International VISA Card is prepaid card which is accepted at all VISA
Merchant outlets and VISA ATMs worldwide. This card provides easy payment option
while travelling abroad. Prabhu Bank International VISA Card can be issued to a foreign
currency accountholder and person travelling abroad using their passport facility.

Features/Services

Prabhu Bank International VISA Card is valid up to 1 years, within the validity period you
can use your card as often as you like.

 Card will have preset limit (equivalent to the eligible amount i.e. USD 2,500/-
against the valid passport), cardholder can use their card up to the limit.
 In case the card balance gets exhausted, the cardholder can reload the amount in
his/her card against the valid document.
 Card can be used at any ATM machine connected to Visa Network for cash
withdrawal.
 Card can be used at any POS terminal connected to Visa Network for the purchase
of goods and services.
 Transaction amount will be debited from the card balance on real time of
transaction.
 Along with the card one can also get his/her travel insured by buying travel
insurance from Prabhu Bank.

27
Benefits:

 No more hassle and risk of carrying cash.

 Convenience of accessing from any VISA ATM/POS for 24 hours a day and 365
days in a year
 No more hassle of chasing moneychanger for exchanging cash/traveler cheques.
 Balance re-loads option.
 One-stop financial solution- options of getting travel insured at attractive insurance
premium.

3.6 Capital Structure of PBL

Financial structure provides a framework for planning and control. Financial managers
need the information provided by evaluating both the firm's past performance and to map
future plan. It concentrates on financial statements analysis, which highlights the key
aspects of firm's operations.The financial statements of Prabhu Bank Limited shown
below:

Table 3.3 Shareholding Composition

S.N Ownership Percent

1 Local Ownership 100
1.1 Government of Nepal -
1.2 "A" Class Licensed Institutions -
1.3 Other Licensed Institutions -
1.4 Other Institutions 17.81
1.5 Individuals 82.19
1.6 Others -

2 Foreign Ownership -

Total 100
(Source: Annual Report Prabhu Bank Limited)

28
The table shows the shareholding composition of the Prabhu Bank Ltd. It is given that the
Local Ownership includes Government of Nepal, "A" class licensed institutions, other
licensed institutions, other institutions and others. The shareholders of PBL are mostly
individuals with 82.19% and 17.81% are other institutions.

Table 3.4 Capital Structure

Particulars FY 2073/2072 (Amount in Rs.)

Authorized Capital 10,000,000,000

Issued Capital 5,881,402,224

Paid-up Capital 5,881,402,224

(Source: Annual Report Prabhu Bank Ltd)

The Authorized Capital of the bank is Rupees 10 billion and Issued & Paid-up Capital is
Rupees 5.8 billion.The table presented above shows that Authorized capital, Issued capital
and Paid-up Capital for the PrabhuBanl Ltd as on Fiscal Year 2073/72(2015).

Fig 3.2 Capital Structure

12,000,000,000

10,000,000,000
Amount in Rs.

8,000,000,000

6,000,000,000

4,000,000,000
Column3
2,000,000,000

0
Authorized Cap- Issued Capital Paid-up Capital
ital

Types of Cpital

The above bar graph shows, the capital structure of Prabhu Bank Ltd where authorized
capital of the Bank is Rupee 10,000,000,000 divided into 100 million equity shares of
Rs.100 each, the issued capital of the Bank is Rs. 5,881,402,224 divided into 58.8 million
equity shares of Rupee 100 each and the paid-up capital of the bank is Rupee
5,881,402,224divided into 58.8 million equity shares of Rupee 100 each.

29
3.7 Organizational Performance

Bank had to operate in a challenging socio-political environment, marked by higher

inflation, natural calamities and blockade. Technology is an area which Prabhu bank
believes is going to give us a competitive advantage in the long term. They are committed
to invest and adopt new technologies to not only deliver our product and services more
efficiently but also to model our product and services in the future. Organization
performance is shown in following table and diagram:

Table 3.5 Net Profit

Year Net Profit (Amount in Rs.)

2072/2073 1,120,780,710

2071/2072 1,018,245,374

2070/2071 (290,005,479)

(Source: Annual Report Prabhu Bank Limited)

Fig 3.3 Net Profit

1,200,000,000
1,000,000,000
800,000,000
Amount in Rs.

600,000,000
400,000,000
200,000,000 Net profit
0
2070/2071 2071/2072 2072/2073
-200,000,000
-400,000,000
Years

The above table shows that net profit has rapidly increased in the year 2071/2072. PBL had
to face loss in the year 2070/2071.

They have participated and supported functions and projects aimed at serving national
priorities, promoting rural development, enhancing entrepreneurship, spearheading
financial outreach objective and supporting local communities. The bank and the Prabhu
team have contributed financially to help support the earthquake victims. Prabhu team was

30
there in several locations to directly distribute basic necessities in the immediate aftermath
of the earthquake.

Table 3.6 Deposits of PBL

Particulars FY2072/73 (Amount in Rs.) FY2072/71 (Amount in Rs.)

1.Local Licensed
Institutions 504,498,790 135,391,145
a. Current Account - -
b. Other Account

2. Foreign Banks

a. Current Account 1,402,596,240 1,488,546,184

b. Other Bank - -

Total 1,907,095,030 1,623,937,329

(Source: Annual Report of Prabhu Bank Limited)

Fig 3.4 Deposit of PBL

1,950,000,000
1,900,000,000
1,850,000,000
1,800,000,000
Amount in Rs.

1,750,000,000
1,700,000,000
1,650,000,000
1,600,000,000
1,550,000,000
1,500,000,000
1,450,000,000
2071/2072 2072/2073
Fiscal Year

31
 Table 3.7 Investment of PBL

Particulars FY2072/73(Amount in Rs.) FY2072/71(Amount in Rs.)

1. Nepal Government's 1,565,302,780 3,710,456,206

Treasury Bills

2. Nepal Government's 3,900,000 -

Citizens Bonds

3. Nepal Government's 2,821,100,000 332,000,000

Others Securities

4. Nepal Rastra Bank - -

Bonds

5. Foreign Securities - -

6. Domestic Licensed - 101,550,000

Institutions

7. Foreign Banks 912,050,000 152,325,000

8. Corporate Shares 610,706,169 304,640,603

9. Corporate Bonds & - -

Debentures

10. Other Investments - -

Total Investment 5,913,058,949 4,600,971,808

Less : Provision 86,000,000 87,996,256

Net Investment 5,827,058,949 4,512,975,553

(Source: Annual Report of Prabhu Bank Limited)

32
 Fig:3.5Investments in PBL

2072/73
Fiscal Year

2071/72

0 2,000,000,000 4,000,000,000 6,000,000,000 8,000,000,000

Investment Amount in Rs.

3.8 SWOT Analysis of PBL

SWOT analysis has been done as an analytical tool that is expected to help to understand
the different aspect of the Bank that comprises of strengths, weaknesses, opportunities and
threats. Understanding these various aspects helps the Bank to better leverage its strengths
to take advantages of future business opportunities while better understanding its
operational weaknesses to combat threats to potential growth. SWOT analysis in the
Strategic Plan is to help to determine the best opportunities to pursue to achieve growth
goals. It also helps the Bank to identify which strengths the Bank must develop in the near
future to improve its performance.

Strengths

 Strong capital base

 Highly qualified, valued, motivated and experienced people
 Extensive market
 Branch network of 133 as on 2017, a largest network among private commercial
banks
 121 ATMs as on 2017, a ATM network in the industry
 Diversified business portfolio in both deposit liability and risk assets

33
  Product diversification in customized way and wide range of products to ensure
complete banking solution
 Customer base loyalty and high visibility locations to attract customers
 Widespread, consistent and knowledge based leadership

Weaknesses

 Persistence of development bank & finance company legacy in some of the sectors
 Significant capital occupied by fixed assets
 Ailing synchronization of diverse organizational culture among the staffs
 Higher level of operating costs
 High number of employees that consequences higher staff cost
 Lower return rate to investors

Opportunities

 Technological advances
 Innovative products
 Brand extension
 Emerging markets
 Continued domestic expansion
 Building new client relationship
 Opportunity to increase products per customer rate as have strong customer base

Threats

 Intensified competitive environment

 Volatile political and socio-environment of the country
 Increased consumer bargaining trends
 Possibility of being sandwiched of regulated spread rate and increasing operational
cost of large network
 Increasing regulatory oversight

34
 CHAPTER IV

ANALYSIS OF ACTIVITIES DONE AND PROBLEM

SOLVED

During the internship in Prabhu bank,the internee was assigned mainly in Customer
Service Department and remittance department which helped internee to gain knowledge
of that department.

4.1Analysis of Activities Done

To develop student skill in object-oriented business management and to solve real life
business problems Tribhuvan University hasdeveloped a course of internship program for
8 weeks. It provides practical exposure and helps students to understand corporate
world .The eight weeks internship on Prabhu Bank Limited was really knowledge gaining.

4.1.1Products and Services Offered by PBL in Detail

While doing internship internee has to knowledge about the products and services provided
by the banks to the customers. PBL has provided the services of opening different types of
accounts to different types of customers like individual, partnership,corporate houses and
foreign citizens.It has provided the facilities of ATM card,paying electricity bills,SMS
facilities,e-banking facilities,remittance,and different types of loans to different types of
customers.Through SMS service customer can directly recharge balance on their mobile
phone, inquire about amount of balance in their account and ask for mini-statement of their
account.

Products and services offered by the bank in the form of accounts are as:

a) Saving Account:

Saving account is meant for those individuals who have a habit of saving money from their
earnings so that they can use it when they require. It is a transactional interest bearing
account wherein a deposit is placed with the bank for an unspecified period,which can be
withdrawn whenever required through different means.

Any amount can be withdrawn from a saving account up to the amount deposited. Under
normal circumstances, customers can withdraw their money from a saving account simply

35
by presenting cheques drawn to the bank. Withdrawals can also be made by using their
automated teller machine (ATM) card .Saving accounts are highly liquid. It carried
relatively low interest rate and normally can be withdrawn at the any time. It is design to
attract funds from customer, who wish to set aside money in anticipation of future
expenditure or financial emergencies. It is also called thrift deposit.

Saving account of the PBL is popular among its customer. Saving account is appropriate
for small saver. At present PBL is providing 5.50% interest to saving deposit, which is
subject to frequent change. Regarding minimum balance required for saving account is Rs
100.

Prabhu Bank offers wide range of savings accounts as bellow:

Table 4.1: Types of Account

Types of Account Minimum Interest Rate(% p.a)

Balance(Amount in Rs.)

Prabhu Welcome Savings - 7.50

PrabhuKhutruke Savings 1,000 6.50

Prabhu Senior Citizen Savings 1,000 6.50

Prabhu Salary Savings - 6.50
Prabhu Smile Savings 50,000 6.00
Prabhu Special Savings 10,000 5.50
PrabhuNarnari Savings 5,000 5.50
Prabhu Normal Savings 1,000 5.50
Prabhu Foreign Savings 1,000 5.50
PrabhuPaurakhiBachatKhata 1,000 5.50
Prabhu Student Savings 100 5.50
PrabhuAshirbadBachat 100 5.50
Prabhu G2P Savings - 5.50

36
 b) Current Account:

A current account is idle for carrying out day –to-day business transactions. It is a
transactional non- interest bearing account wherein a deposit is placed with the bank for
an unspecified period ,which can be withdrawn whenever required through different
means .Current account can be open by individuals or/and corporate for banking
transaction.A current account can be opened with a minimum amount as decided .In
Birauta branch,minimum balance required is Rs.10, 000. Depositor can deposit any
branch.Once account holder account is opened holder will receive own chequebook
containing 10 personalized cheques.To replace cheque book account holder must submit
cheque request slip which is at the back of current chequebook at home branch and bank
will arrange a new one for holder.

Some features of Current Deposits of PBL are:

 Withdraw Below Minimum Balance

 Free Cheque Book

 No Interest Rate

 Standing Instruction

c) Fixed Account:

Fixed deposits are deposits on which the depositor and the bank agree that the money will
not be withdrawn without substantial penalty to the depositor before a specific date. These
are frequently called certificates of deposits (CDs). Because of a substantial early
withdrawal penalty, fixed deposits are not as liquid as demand or saving depositors write
cheques against them. Fixed deposits also typically require a minimum deposit amount.
Wealthier individuals and business men have been offered fixed deposits for many years.
These deposits carry fixed maturity date usually covering 30, 60, 90, 180 days, 1 year and
above with fixed interest rates. More recently, fixed deposits have been issued with
interested that are adjusted periodically such as every 90 days.

Fixed deposit rates with varying maturity terms

 Up to 3 months--10%
 Above 3 months to 9 months--10%
 Above 9 months to 2 years--11%

37
4.1.2Analysis of ActivitiesPerformed in Customer Service Department

“Excellent customer service is the process by which organization delivers its services or
products in a way that allows the customer to access them in the most efficient ‘fair ,cost
effective ,and humanly satisfying and pleasurable manner possible” .Customer service is
the process ,not a set of actions that might include greeting the customer ,smiling ,asking if
you can help ,etc.Customer service is about how your organization delivers its product or
service.CSD is the department which is directly related to image creation and destruction
of the organization .Customer perceive any bank as good or bad depending upon the CSD
of that bank .So the officer of CSD is the liaison between the bank and the customers of
that bank.Efficient functioning of CSD also enhances the efficiency of the other operations
of the bank because the management of customers is a very difficult task and if they are
managed properly then the other officers can do their work properly without any problems
and disturbances.

It is very important to know that a highly satisfied customer stays loyal longer,buys more
as the organization introduces a new product,pays less attention to competing brands and is
less sensitive to price .Having a significant number of this kind of customers is only
possible through the efficient functioning of customer service department of any
organization .It would then inappropriate to say that this department is the key to the
success of any organization.

As an intern at PBL, the interneeperformed the following general activities such as:

 Receiving the visitors and customers

 Receiving and making telephone calls

 Filling KYC form

 Account opening

 Closing of account

 Filing and documentation

 Cheque printing

 Recording and issuance of ATM card

 Sending checkbook request

38
  Scanning and photocopy

 Bank statement

4.1.2.1Receiving the Visitors and Customers:

Internee was assigned the responsibility of receiving the client impressively. The visitors
are there for several purposes such as meeting a particular person, opening new account,
closing the existing account, making inquiries relating to debit card, ABBS system etc.
These all are dealt with cooperation of staff sincerely with all the respect and modesty
through the use of good communication skill.

4.1.2.2Receiving and Making Telephone Calls:

There are many calls made by the customers, clients and official staffs for different reasons
which are to be received by internee as representative of the staff of CSD. The incoming
calls are generally made for the balance inquiry, getting information on account opening,
account closing, knowing about banking products and many other query calls and the calls
made for particular employee is transferred to their respective department Sometimes
outgoing call has to be made if in case of any information is missed while opening an
account, to acknowledge about card arrival at the branch, to aware customers about KYC
update etc.

4.1.2.3Filling KYC Form

KYC means “Know Your Customer”. It is a process by which banks obtain information
about the identity and address of the customers. This process helps to ensure that bank’s
services are not misused. As per the direction of NRB, separate KYC form must be filled
to store the detailed information of customer. This is done to get the full information about
the customer. This also helps the bank while granting loans as well to find out whether the
customer is blacklisted or not. Therefore, the internee requestedthe old customers to do
KYCupdate for their convenience. Internee maintained records on the computer after
scanning of the signature is done.Internee was also responsible for scanning all the ATM
forms, Account opening forms and put them in their respective folders. The requirements
for KYC update are:
 Two Recent Passport Size Photographs
 Original citizenship card and its photocopy

39
4.1.2.4Account Opening:

Account opening is the most frequent activity done in customer service department .To
deposit the money or to banking transaction customer must open the account in the bank
which provides interest, security,liquidity,no risk etc.Customer can open their account as
per their favor from various types of accounts,which are shortly analyzed as follow:

a) Saving Account:
Requirement for Opening of Saving Account

 Completed Account Opening Form

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

License/Voter's ID)

 Power of Attorney (If the account operator is other than the

accountholder/applicant)

 Two Recent Passport Size Photographs of Applicant/Account Operator

b) Current Account:

Requirement for Opening Current Account

In Case of Limited Liability Company/Social Organization/School

 Completed Account Opening Form

 Certificate of Registration/Incorporation

 Articles of Association

 Memorandum of Association

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

License/Voter's ID)

 Two Recent Passport Size Photographs of Account Operator(s)

In Case of Proprietorship/ Partnership Firm

 Completed Account Opening Form

 Certificate of Registration/Incorporation

 Income Tax Certificate (PAN Card)

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  Partnership Deed (in case of partnership firm)

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

License/Voter's ID)

 Two Recent Passport Size Photographs of Account Operator(s)

c) Fixed Account:

Requirement for Fixed Account

 Completed Account Opening Form

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

License/Voter's ID)

 Power of Attorney (If the account operator is other than the

accountholder/applicant)

 Two Recent Passport Size Photographs of Applicant/Account Operator

4.1.2.5Closing of Account:

The essential requirement for closing an account is mentioned below:

 Application to close an account mentioning the reason behind.

 Return of cheque and ATM card

 Photocopy of citizen card.

The following points that should be considered while closing an account are:

 Specific account must be nil.

 Account holder should not have time deposit if s/he has can’t close the account.

 Account holder should be checked to see if s/he has bank loan then she can close
the saving account only if s/he has current account to pay he loan amount and
interest otherwise can’t close respective account.

4.1.2.6 Filing and Documentation:

Filing and documentation are very important task. The entire paper work has to be done
simultaneously to the computer work. Different files are maintained for filing different
documents. The account holders’ form, their signature cards, and their request slip all are

41
filed in separate files. The void cheques are also filed. The request for debit card issuance
is mailed to the card center daily. Such request is printed out and filed in a separate file.
The authorized letter received by the CSD is also filed.The cheque entry of the whole day
was also written on cheque book.

4.1.2.7Cheque Printing

Printing the cheques and issuing it as well keeping the records of the cheques issued in the
register maintained for the purpose after getting the signature of the customers. Customers
were asked to fill up the Cheque Requisition Form (in case of cheques to be issued for the
very first time) or the Cheque Slip in the cheque book (for the new book to the customers
to whom the cheques were issued previously).

4.1.2.8 Scanning and photocopy

The activity of making the photocopy of the documents such as the Citizenship Certificate
of the customers, the FD receipt and the other documents as asked by the staffs of the bank
was performed during the internship period. The account opening forms of the customers
(signatures of the accountholders and their photos) and other documents were scanned
during the period.

4.1.2.9 Bank Statement:

This is sheet that shows the transaction of a particular account in respect of debit and credit
balance and the balance available. Bank offers the bank statement on the request of
customer. Internee was assigned the job of providing the bank statement of the customer if
they asked about it.

4.3 Analysis ofActivities Performed inRemittance Department

Remittance transfers help its customers to remit money from one place to another through
agents appointed by the bank.The people working outside the country can send cash to
their relatives through this serviceof the bank. It is a reliable service which helps to send
money from one place to another .Remittances contribute to economic growth and to the
livelihoods of needy people worldwide .Moreoverremittance transfers can also promote
access to financial services for the sender and recipient,thereby increasing financial and
social inclusion.Hence in the globalized world this department has a vital role.

42
Internee have learned to carry out tasks like making payment of the money came through
different remit like himal remit, prabhu money transfer, money gram etc. Internee has also
learned to send cash to the different places of Nepal through Prabhu Money Transfer.

Activities performed in Remittance Department are highlighted below:

 Provided clients with forms called ‘Send Request Form’ when they need to send
money to other places and ‘Receive Request Form’ when they needed to receive
money sent from other places within the country.
 Debit vouchers were filled up when the client was to be paid received money,
credit vouchers to deposit money were filled when the client had to send money
and double entry vouchers were filled when the received remitted money was to be
directly deposited into the account.
 Records of the transaction were kept in the remittance ledger book for reference.
 At the end of the day, the debit amount must tally with payment amount recorded
in excel.Similarly ‘credit amount must match with the total incoming amount.
 Helping customers to fill up the forms
 Entering the information into the system software.

4.4 Problems Solved

Throughout the internship period Internee encounter some problems while carrying out
assigned tasks and solve these problems according to their nature:
 Problems related to incomplete information

Information flow is a delicate process which should occur in smooth manner. Whilst
during banking operation, the information could be incomplete which can create
misunderstanding between customers and bank. Intern solved this problem by
providing clear and complete information to customers whenever required.

 Problems related to Cheque and ATM not received by customers

Intern had to inform customers to come and receive their cheque and ATM in case, if
they had not received since the period of three to four months. Intern clarified those
customers to come and collect those cheques and ATMs before the disposal.

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 Problems related to the non-functioning of the system and various services

Whenever the intranet system of the bank and various services like E-banking, ATM,
SMS banking were not functioning, intern so far convinced the customers and tried to
offer possible alternatives. For instance, whenever ATM was out of service intern
offered a withdraw slip for convenience.

 Problems related to incomplete documents provided by the customers

Ifthe documents were incomplete for various transactions, intern had to inform the
customers and ask them to present the complete documents. For instance, intern had to
inform thecustomers to bring the missing documents while they request to open an
account and perform the transactions.

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 CHAPTER V

CONCLUSIONS AND LESSONS LEARNT

5.1 Conclusion

BBA program of Tribhuvan University is an object oriented business management

professional course under the FOM TU, with eight semesters covering an international
standard period of four years. The students studying this course are evaluated on the
grading system and are required to complete 120 credit hours within 4 years. Among
different management courses, BBA is one of the best management course designed by
TU.

An internship is the first step of learning experience at work environment after the
studying of theoretical knowledge in campus.It focuses to make the students participate in
the real life organizational setting and provide the opportunity to apply the knowledge and
skills they have learnt. This internship has been completed in Prabhu bank of Birauta
branch.It is good opportunity to do internship in popular commercial bank of Nepal.

PBL is one of the leading banks in Nepalese financial industry. PBL, as a pioneer in
introducing many innovative products and marketing concepts in the domestic banking
sector,represents a milestone in the banking history of Nepal as it started an era of modern
banking either customer satisfaction measured as a focal objective while doing
business .Today PBL holds one of the strongest networks,network in and outside
organization.PBL has succeeded to maintain good culture and discipline in the
organization.

The internship at PBL Bank helped intern to gain in-depth knowledge about real working
environment,interpersonal and communication skills,organizational culture and behavior,
professional qualities and team building spirit as well as working principles of commercial
banks.Besides observing and learning the various activities in the different departments,
intern performs the various tasks. During that period, intern found that customers are the
key focus and greatest asset of the bank.Thus,the bank always focused to maintain long
term relationship with customer and retain them by providing better services.Employees
are directly linked with these customers so employee must behave in decent and peaceful

45
way. Similarly,proper coordination among all departments is needed for growth of
organization.

During the internship period internee got chance to get familiar with the activities
performed in Customer Service Departments.The process of issuing new card to the
customers whose cards had been expired was learnt.In this course intern got an opportunity
to assess the requirements in a cheque ,deposit slip ,account opening form,account
closing ,the various information revealed by balance statement,the need of balance
certificate ,the requirements of dispatching new cards to the expired card holders and much
more. Overall,the internship program has been very fruitful in enhancing the practical
knowledge of the intern.

During the whole period of internship and the preparation of this report, internee learns a
lot about the banking sector and banking operation,about PBL in particular.The internship
has been fruitful in many ways to internee.This report, inparticular, has made intern know
about the various kinds of Finance and Account function that PBL has been
offering.During the internship,internee has learnt a lot of other aspects other than the
people (including staffs), to deal with the senior staffs,and to deal with the intern colleague
so as to make the working environment cozier and friendlier.This internship program also
helps in learning the behavioral issues which are most important within and outside the
organization.

Lastly,PBL is excellent in term of their services.PBL is one of the most promising banks
today and has an opportunity to increases their market share by improving their customer
satisfaction by overcoming their weakness and doing their best to retain quality services.

5.2 Lesson Learnt

Working as an intern in Prabhu Bank for two months,Internee was able to know the
working procedure of Customer Service Department of PrabhuBank
Limited.Furthermore,the internship helped internee to gain necessary skills to tackle
problems.Internee not only got exposure to the professional world but has been successful
to change attitude and behavior in the daily life spending .Learning the working
culture,general organization environment and workplace behavior .Being attached with
different department of Prabhu BankLimited, internee learned different things.

Following are the general lesson learnt during the internship points:

46
  Understanding the working environment of bank.
 Understanding the organizational structure of bank.
 Understanding the capital structure of Prabhu Bank Limited.
 Understanding the major function along with the products and services of bank.
 Knowing about the functions of customer service department.
 Dealing with customers and solving their queries.
 The process of account opening and closing.
 The process of issuing cheque book.
 Process of issuing new and expired or lost ATM card.
 Providing bank transaction statement to account holder.
 To check the customer sign with specimen signature.
 To search old signature specimen card and update his /her account.
 The importance of being punctual, manage time and being patient.
 Function of remittance department.
 Process of inward and outward remittance.
 Records of remittance and filing the documents.

Many lesson along with these, small and big, were learnt which broadened the knowledge
and brought work maturity in the intern.So,these two months of the internship was the time
where the intern got the most exposure to what it is like to work in real life than what was
learnt in the classroom.The internship program gave the intern the experience, which help
to build a platform and prepare for the future.

Key Skill and Attitudes Learnt

During the internship period at PBL,Birauta Branch Internee has learnedabout the
environment inside the bank. It has helped lot to grow and develop skills and attitude. It
helped a lot in linking theoretical knowledge that internee had gained at college with the
real and practical work life.

Key Skill Learnt

Skill is an ability and capacity acquired through deliberate, systematic and sustained effort
to smoothly and adaptively carry out complex activities or job functions involving ideas,
things, and interpersonal skills. Skills can be divided into general and specific skills. Some
general skills would include time management,teamwork and leadership, self-motivation
etc., whereas specific skills would be useful only for a certain job.

47
  Skills related to dealing with customers
 Filing and indexing
 Scanning and photocopying
 Making cheques and printing cheques
 Inquiry of current balance, past banking transactions, signature, account number,
statement etc.
 Making and printing statements as per requirement of the customers
 Filling forms and vouchers
 Handled issues of ATM
 Handling Remittance issues
 D-Mat account certificate distribution
 Issues related to mWallet

Attitudes Learnt

 Good Communication
 Responsibility towards Work
 Discipline
 Positive Attitude
 Team Work
 Punctuality
 Cooperation

48
 BIBLIOGRAPHY
Agrawal,Govinda Ram. (2065).Human ResourceManagement in Nepal.Kathmandu:Asmila
Books Publishers and Distributors Pvt.Ltd.

Gurung, B.(2015). Internship Report, Prabhu Bank Limited,BirautaAn Unpublished

Bachelor Degree Internship Report, BBA, PU

K.C,Laxaman.(2016).AStudyoncustomerdepartmentactivitiesofNepalBankLimited:http//
www.intershipreportpresentation.blogssport.in,Accessed on October 9,2017

Prabhu Bank Limited (2014-2015)Annual Report. PBL

Prabhu Bank Limited(2015-2016)Annual Report. PBL

Shrestha, M.K., & Bhandari, D.B.(2008).Financial Markets &Institutions.

Kathmandu:Asmita Books Publishers and Distributors Pvt.Ltd.

http://internshipreportpresentation.blogspot.com.br/2015/11/internship-report-on-bank-of-
kthmandu.html?m=1, Accessed on October 10,2017

http://internshipreportpresentation.blogspot.com/2015/10/internship-report-on-nepal-bank-
limited.html?m=1, Accessed on October 9, 2017

https://benmakehappy.blogspot.com/2015/08/internship-report-of-sbi-bank-of-nepal.html?
m=1, Accessed on October 11, 2017

http://internshipreportpresentation.blogspot.in/2015/11/internship-report-on-nepal-
investment.html?m=1,Accessedon October 10, 2017

http/www.nrb.org

http/prabhubank.com.np

http/www.wikipedia.com

http/www.google.com

https://en.m.wikipedia.org

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 APPENDIX

BALANCE SHEET

Capital and 20739(in Rs.) 2072(inRs.) 2071(in Rs.)

liabilities
Share Capital 3,881,402,220 3,208,885,224 2,000,000,000

Reserve and Fund 1,597,707,950 484,825,417 (851,067,535)

Debentures and - - -
Bonds
Borrowings - 24,830,500 -
Deposits 50,000,000,000 42,143,974,357 19,835,165,830

Bills Payables 30,783,000 28,034,993 22,596,853

Proposed Dividend - -
Income Tax - -
Liabilities
Other Liabilities 682,227,000 619,575,265 199,117,039
Total 56,192,120,170 46,510,125,756 21,205,812,188
Assets 2073(in Rs.) 2072(in Rs.) 2071(in Rs.)
Cash Balance 1,992,860,180 1,706,103,750 788,033,479
Balance with NRB 3,500,000,000 5,985,954,364 899,490,631
Balance with 2,008,546,180 1,623,937,329 272,472,950
Banks/Financial
Institution
Money at Call and 70,775,000 1,000,775,000 100,000,000
Short Notice
Investment 8,503,384,150 4,512,975,553 5,808,373,547
Loans Advance and 36,620,480,000 27,726,157,429 10,884,398,688
Bills
Fixed Assets 1,709,288,020 1,728,634,242 1,353,249,172
Non-Banking - - -

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Assets
Other Assets 1,786,786,640 2,225,588,089 1,099,793,720
Total 56,192,120,170 46,510,125,756 21,205,812,186

51