AN INTERNSHIP REPORT ON CUSTOMER SERVICE DEPARTMENT OF

PRABHU BANK LIMITED, BIRTAMODE BRANCH

Submitted by:

Kamala Kafle

TU Registration No:

Exam Roll No: 17548/16

An Internship Project Report

Submitted to:

Faculty of Management

Tribhuvan University

in the partial fulfillment of the requirements for the degree of

Bachelor of Business Administration

Mechi Multiple Campus

Bhadrapur, Jhapa

May, 2021
 Student’s Declaration

This is to certify that I have completed the Internship Report entitled “An Internship Report

on Customer Service Department of Prabhu Bank Limited, Birtamod Branch” under the

guidance of MukundaGhimire in the partial fulfillment of requirements for the degree of

Bachelor of Business Administration at Faculty of Management, Tribhuvan University. This

is to my original work and I have not submitted it earlier elsewhere.

______________________

Kamala Kafle

Date: May, 2021

ii
Certificate from the Organization

iii
 Certificate from the Supervisor

This is to certify that the internship report entitled “An Internship Report on Customer

Service Department of Prabhu Bank Limited, Birtamode Branch” is an academic work done

by Kamala Kafle submitted in the partial fulfillment of the requirements for the degree of

Bachelor of Business Administration at Faculty of Management, Tribhuvan University

iv
under my Guidance and supervision. To the best of my knowledge, the information presented

by her in the internship report has not been submitted earlier.

______________________

Signature of the Supervisor

Name: MukundaGhimire

Designation:

Date:

Acknowledgement

It gives us an immense pleasure to have this opportunity to learn and express our theoretical

knowledge in practical environment. The completion of this report study could not have been

possible without the participation and assistance of so many people whose names may not all

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be enumerated. I am humbly expressing the deep sense of gratitude to those people

contributing directly or indirectly to complete this report.

Firstly, I would like to express my sincere appreciation and word of thanks to Mr. Mukunda

Raj Gautam, the Branch Manager of Prabhu Bank Limited, Birtamod Branch for allowing

me to be the part of this organization. I am also grateful to my internship supervisor Mrs.

PabitraKadariya and Ms. ManishaPradhan who guided me tolerantly and patiently by

providing valuable advice, support as well as motivation. In addition, my sincere thanks go to

all the staffs of Prabhu Bank Limited for their kind support and cooperation.

I would also like to thank my supervisor, Mr. MukundaGhimire for his constant support and

guidance throughout the course of my report which has been constant source of inspiration

for me.

I would also like to express my special gratitude towards my parents and friends for their

support and encouragement throughout my internship period.

Table of Contents

Student’s Declaration..................................................................................................ii

Certificate from the Organization.............................................................................iii

Certificate from the Supervisor.................................................................................iv

vi
Acknowledgement........................................................................................................v

Chapter 1: Introduction..............................................................................................1

1.1 Background of the Study..................................................................................................1

1.2 Objectives of the Study....................................................................................................2

1.3 Methodology.....................................................................................................................2

1.3.1 Sources of Data.........................................................................................................2

1.3.2 Organization Selection..............................................................................................3

1.3.3 Placement..................................................................................................................3

1.3.4 Duration of Internship...............................................................................................3

1.3.5 Activities Performed in Bank....................................................................................4

1.4 Limitations........................................................................................................................5

Chapter 2: Introduction of the Industry....................................................................6

2.1 Industry Analysis..............................................................................................................6

Chapter 3: Introduction of the Organization..........................................................10

3.1 Introduction of the Prabhu Bank Limited.......................................................................10

3.2 Product/Service Provided by the PBL............................................................................11

3.3 Capital Structure of PBL................................................................................................15

3.4 Organizational Design and Structure..............................................................................17

3.5 Departmental Structure...................................................................................................18

3.6 SWOT Analysis..............................................................................................................21

Chapter 4:Analysis of Activities Done and Problem Solved..............................23

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 4.1 Analysis of Activities Done............................................................................................24

4.2 Problems Solved.............................................................................................................29

4.3 Observed Gap.................................................................................................................30

Chapter 5: Summary, Lesson Learnt and Recommendation................................31

5.1 Summary.........................................................................................................................31

5.2 Conclusion & lesson learnt.............................................................................................32

5.3 Recommendations..........................................................................................................34

References...................................................................................................................35

List of Tables

Table 1 Week Spent In A Bank……………………………………………………….…4

Table 2 Shareholding Composition…………………………………………………….17

Table 3 Capital Structure……………………………………………………………….17

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 List of Figures

Figure 1 Michael E. Porter’s Five Force Model……………………………………...8

Figure 2 Capital Structure…………………………………………………………...18

Figure 3 Organizational Structure…………………………………………………..19

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Figure 4 Customer Service Department…………………………………………….20

Figure 5 Cash Department…………………………………………………………..21

List of Abbreviations

ABBS Any Branch Banking Service

ATM Automated Teller Machine

CD Certificate of Deposit

CSD Customer Service Department

x
KYC Know Your Customer

PAN Permanent Account Number

PBL Prabhu Bank Limited

PMT Prabhu Money Transfer

PT Prabhu Technology

SMS Short Message Service

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Chapter 1: Introduction
1.1 Background of the Study

Bachelor in Business Administration Programme provides the opportunity to the students of

8th semester for the partial fulfillment of their Bachelor Degree to choose and work in the

organization they want as their internship project. It is the academic programme which

provides eight weeks period for the internship in the organization the students wants to relate

the actual working environment with the theoretical knowledge.

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.

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.

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 is provided

to the customers.
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Customer Service Department is the primary level services, since the customer entering in

bank has first contact in this department with their queries .Customer Service Department is

very essential and vital for succession of bank and satisfying to customers.

1.2 Objectives of the Study

The general objective of internship program is to make students familiar with the working

environment and gain the practical experience in the related field. 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.

However, the specific objectives of the study are as follows:

 To know about various activities done at customer service department.

 To develop the ability to deal with various kinds of customers with different

problems and requirements.

 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 three 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.Both primary as well as secondary data has been used in this

report.For the primary data collection, different activities and working environment of the

bank are observed, personal interview are taken, informal discussion, interaction and

inquiries with the staffs are made for the relevant information. And for secondary data
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collection, information from the official website of the bank, annual reports,brochures, books,

published documents etc has been used.

1.3.2 Organization 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,PBLa commercial bank of

Nepal was chosen for the unique set of advantages it offered. The bank was approached

dropping recommendation letter of college and curriculum vitae.Bank accepted the request

and internee was provided opportunity to do internship at Prabhu Bank Limited at Birtamode

branch.

1.3.3 Placement.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

February 21 to May 21. Intern was appointed at Birtamode Branch of Prabhu Bank Limited,

Jhapa.

During the twelve 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 two month 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 three months starting from February 21 to May 21

from 10:00 am to 5:30 pm. During this period the intern came to learn many more about the

working environment,work procedure and culture in different department.

Table 1
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Weeks Spent in the bank

Departments Weeks
S.N
1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th 11th 12th

1
CSD           
. 

2 Remittance  

1.3.5 Activities 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 Service Department

 Account operation (account opening and closing)

 Process from printing cheques to submitting to final customers.

 Assisting customers to fill various form(ATM form, account opening, account

closing, SMS banking, e-banking, new signature card, new cheque, KYC, cash

voucher).

 Signature card scanning and entering in software.

 Checking balance and finding account number.

 Printing cheques and bank statement.

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 Forwarding customers to respective department as per the requirement of

customers.

 Registering date, time and signature in ledger according to application

number.

Remittance Department

 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.

 Filling up cheque deposit voucher of customers for cheque clearance.

1.4 Limitations

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:

 Time and resources constraints are the major limitations of this report.

 This report does not explain the overall functioning of the bank and cannot be

generalized into entire banking industry.

 The systems were not allowed to be used by the interns.

 Busy schedule of organizations made it difficult to share overall knowledge they

have.

However, ignoring all limitations, it has been best tried to gain adequate banking knowledge

and sincerely perform the task assigned.

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Chapter 2: Introduction of the Industry

2.1 Industry Analysis

A bank is a financial institution that accepts deposits from the public and creates credit. 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.

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”.

Bank offer attractive product plans and schemes to attract the deposits and then mobilizes

their deposits in providing loan facility to the general public, business house, industries,

agriculture, and other needy sector by charging some interest rates. Commercial banks are the

integral part of the national financial system that functions on continuous basis on society.
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Industry Analysis under Porter’s Five Force Model

Porter’s five forces model has established itself as a core element of industry analysis.

Porter’s analysis framework is built on the following five market forces that shape the

strategy of competitors: threat of new entrants, threat of substitutes product or services,

bargaining power of buyers and suppliers as well as rivalry among existing competitors.

Porter’s concept is based on the knowledge that the strategy of an enterprise must orient itself

to its market environment, whereby the competitive strategy arises from a differential

understanding of the market structure and the knowledge of how it changes. The effect of

these forces determine the intensity of the competition in a market and with it its profitability

and attractiveness.

Therefore, the aim of the enterprise strategy should be reflected in the search for possibilities

for the reduction or use of these competitive forces relative to its own enterprise. In this

regard, Porter’s model is conductive to the analysis of the driving forces working in the

respective industry.

Figure 1.Michael E. Porter’s Five Force Model

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Porter’s framework is a useful and frequently utilized analytical tool to describe the

foundation of industry competition.

Industry Rivalry: A high degree of rivalry among the existing enterprises leads to high

competitive pressure and can lower profit margins and the profitability of individual

enterprises. In situations in which a large number of enterprises target similar market segment

with comparable strategy, in which market grows slowly, price is the most important

differentiation factor and high exit barriers exist, a negative impact on industry’s profitability

is effect.

Threat of New Entrant: The threat of new entrants can be determined by the entry barrier of

the market. The competitive pressure on existing enterprise increases with low entry barriers.

In such a situation important elements of the market can change due to the entry of new

market participants.

Bargaining Power of Buyer: Bargaining power of buyer determines to what extent customers

can influence enterprises by the amount of consumption and the pressure on margins.

Important indexes of a high degree of buyer power include: high fixed cost in the industry,

existence of supplements of the product or service, high degree of customer concentration,

customer’s knowledge of production costs, high growth rate of the market and a strong

individualization of customer demand.

Bargaining Power of Supplier: It affects industry profitability if, for example, a concentrated

supplier group dominates over existing enterprises in the market, which are not important

buyer for the suppliers. Then the industry faces high margin pressure by the suppliers.

Threat of Substitute Products: A threat of substitute product or services exists in particular if

cheaper or higher quality products and services are able to reduce existing sales volume of a
 9

market or an enterprise. The future sales potential of existing enterprises becomes limited and

industry competition increases.

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Chapter 3: Introduction of the Organization

3.1 Introduction of the Prabhu Bank Limited

A bank is a financial institution that accepts deposits from the public and creates credit. 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.

From its beginning as a Finance Company to its current position 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 196 branches and 152 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
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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 forgovernment 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. 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.

3.2 Product/Service Provided by the PBL

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.

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Deposits

Prabhu offers an array of deposit products which provides interest rates quite competitive

among the finance company of its class. Equipped with several distribution channels like

cards, largest Network of branches and ATMs and Extended banking hours, Prabhu offers its

depositors the freedom of 24hours a day, 365 days a year access to their deposit account.

Besides, the regular deposits accounts like current, savings and fixed term deposits, Prabhu

also offers many other special deposit schemes. PrabhuKhutruke Savings Scheme is

introduced mainly for small children and housewives. This saving scheme is intended to

make the young children be aware of saving from their early years. This saving scheme

facilitates not only the children but also housewives and low income earning group since this

account can be operated with minimal balance and regular small deposits.

ATM Card

Prabhu is providing self-service banking to its esteem customers through VISA Debit Card

with collaboration with Smart Choice of Technologies. Customers can transact from the

terminal on free of cost. VISA Debit Card can also be used for shopping and countries like

India and Bhutan.

Mobile Wallet Service

Prabhu Mobile Wallet service is an easy and handy method of doing banking transaction

from mobile phones without having to visit bank. Prabhu Bank customer needs to have

Prabhu Mobile Wallet application software installed in their mobile phones. Using such

application of their mobile phone, one can do various banking activities such as transaction,

enquiry and request.

E-Banking Service
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PrabhueBanking Services is an internet based Service offered by the Bank to its valued

customers. PrabhueBanking, being an internet based service, is available anytime at

customer’s fingertip with the flexibility to take care of many financial transactions as well as

viewing account statements, requesting cheque books and many more.

LockerFacility

Prabhu also provides locker facility to its valued customers from its own Head office

premises situated in Anamnagar. Prabhu bank has arranged an advance security system for

the security of its customer’s valuables put on locker. Prabhu bank has also insured every

locker.

Additional Services

For the Bank’s deposit relationships, there are other hosts of services available at Prabhu

bank, like implementing Standing instructions on accounts, issuing Balance Certificates,

certifying ‘Good for Payment’ on cheques. The online connectivity of all our outlets makes it

possible to remit funds domestically to and from any of the branches located throughout the

kingdom.

Lending

Prabhu, through its wide range of flexible products like Demand Loan, Time Loan and Short

Term Loan etc can accommodate all specific needs for the customers. Besides the regular

lending scheme Prabhu Bank also offers many other special deposit schemes.

Housing Loan

This loan makes the dream of owning a home a reality with attractive features available

beyond market.It is offerings at competitive interest rates and extended loan tenure, with

flexible repayment and partial payment features.

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Hire Purchase Loan

Prabhu Bank Hire Purchase loan makes commuting easier and owning a two or four wheeler

in reality at attractive interest rates, loan tenures and flexible repayment options with

financing available for large variety of vehicles, with special facilities to draw cash by

pledging a vehicle in the Bank’s name. Prabhu bank has designed a hire purchase loan

scheme to finance the private car or motorcycle to the professionals, self-employed, business

executives, and business houses and the transport like trucks, buses, minibuses, pickup

vehicles, microbuses, etc. to the operators, businessman, business houses, etc.

Education Loan

Prabhu’s education loan scheme provides loan for those students who demonstrate ability,

drive and ambition but do not have financial resources to achieve their goals.

Term Loan for Project Financing

Based on the viability of the project, Prabhu Bank provides term loan for project financing.

Before applying for loan the intended party must submit a proposal along with the feasibility

study report of the project. Financing will be made available.

Working Capital Loan

Based on the viability of the project and actual need of fund, Prabhu Bank provides working

capital loan in the form of overdraft. The intended business house should submit the proposal

for working capital loan. This loan will be granted based on the proposal and will take a form

of overdraft.

Consortium Loan
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Due to the changing political situation and the expected peace in the country, we expect more

economic activities in the country. This will attract the large investment opportunities in the

different project. NRB has prescribed the maximum amount of funding to a single borrower

to minimize the concentration of funding. Therefore, single financial institution is not able to

finance the mega project alone. With our expertise, we are capable of arranging consortium

finance for such large projects.

Agriculture Loan

Based on the viability of the agriculture project/ proposal, Prabhu Bank provides Agriculture

Loan to finance the short/ long term financing need of client. This loan is also provided to

purchase tractor, seeds, fertilizers, insecticides, etc.

Loan against Shares and Securities

The recent political development in the country has revived the hope for the economic

development and prosperity of the country. The NEPSE positively responded the recent

development and more activities and an upward trend is seen in the stock market. Those

investors not having fund in hand but wants to invest in stock market can apply for the loan

against shares and securities.

3.3 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:
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Table 2
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

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
Capital structure

Types of Capital FY 2075/2076 (Amount in Rs.)

Authorized Capital 10,000,000,000
Issued Capital 8,233,962,800
Paid-up Capital 8,233,948,524

The Authorized Capital of the bank is Rs. 10 billion and Issued & Paid-up Capital is Rs. 8.2

billion. The table presented above shows that Authorized capital, Issued capital and Paid-up

Capital for the Prabhu Bank Ltd as on Fiscal Year 2077/78(2020).

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12,000,000,000

10,000,000,000

8,000,000,000
Amount in Rs.

6,000,000,000

4,000,000,000

2,000,000,000

0
Authorized Capital Issued Capital Paid-up Capital

Types of capital

Figure 1. Capital Structure

Figure 2 shows the capital structure of Prabhu Bank Ltd where authorized capital of the Bank

is Rs. 10,000,000,000 divided into 100 million equity shares of Rs.100 each, the issued

capital of the Bank is Rs. 8,233,962,800 divided into 82.3 million equity shares of Rupee 100

each and the paid-up capital of the bank is Rs. 8,233,962,800 divided into 82.3 million equity

shares of Rupee 100 each.

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 (Birtamod Branch) credit department and operation department.

Within the operation department, there are three sections such as teller (cash), customer
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service, remittance and clearing. And within the credit department is loans facility. The

bank's organizational structure is presented in the following diagram:

Branch Manager

Credit In -charge Operation In-charge

Credit (loans)
C.S.D Teller (Cash) Remittance & Clearing

Figure 3.Organizational Structure

3.5 Departmental Structure

There are basically three major departments in PBL, Birtamod i.e. Operation department,

Account section and Credit Department. Within operation department, it has its customer

service, remittance, clearing and cash department. Each department has its own functions.

The concerned department performs their duties and responsibilities regarding the function of

their departments.

3.5.1 Customer Service Department (CSD)

CSD is one of the important departments of the organization. The entire customer’s related

tasks are done in CSD like various account opening, providing correct information about

bank’s products and services, counseling and motivating them to utilize the services offered
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by the bank and satisfying their queries regarding bank and its services. Another task of this

department is to print cheques, balance statement, clearing statement and transaction

statement of respective teller. This department is also a reception of the bank where the

functions such as: handling telephone, transferring calls, receiving and sending mails,

forwarding and maintaining files and documents are carried out. This department looks after

the ATM also by filling the form and maintaining the card registered. The following figure
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shows the structure of CSD:

Figure 4.Customer Service Department And Its Functions

3.5.2 Teller/Cash Department

Cash Department is one of the most important and risky departments as the transaction are

directly associated with real cash. Hence, the teller must be very careful and must have great
 21

presence of mind while handling transaction. In PBL, Birtamod, both teller works at one time

as the bank will be back. The tellers are responsible for the cash deposit and payment. They

make payment against cheques, managers’ check, and other payable instrument by verifying

the signature of the concerned person. Cash Department has other functions like counting,

sorting cash properly and bundling cash deposits according to demonstrations and currency.

The structure of cash department is given below:

Figure 5.Cash Department And Their Function

3.5.3 Account Section

This department includes the work related to share, management of accounts and

authorization of ECC cheques. Accountant handles all the accounts the branch in quarterly

basis. Administrator carries out the financing activities of the concerned branch as well as

work related to shares like managing bonus certificate including dividend cheque provided at

the year to the shareholders of the organization.

3.5.4 Credit Department

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This department is one of the major departments of PBL since the main objective of bank is

concerned with this department. This department has the major function of mobilizing the

funds that is created by the deposits through lending it in different sectors. This department

provides credit/loan to the customers, after looking and analyzing at various necessary

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 loans provided as per the

policy formulated for credit creation.

3.6 SWOT Analysis

SWOT Analysis identifies and analyses the main internal and external factors that will

influence the future direction and success of a business. It comprises of strengths and

weaknesses which are the internal factors and opportunities and threats which are the external

factors that affect the organization. Such analysis helps managers in strategic planning.

SWOT analysis of Prabhu Bank is as follows:

Strengths

 Good reputation in the budgeting industry.

 Dedicated, experienced and well trained employees.

 Up to date with the latest technology and information systems.

 Diversified product and services provided to customers.

 Proper links with the foreign banks.

 High capital base compared to other banks.

 Adequate number of branches all over Nepal.

 Well qualified and professional management team.

 Lower weighted average cost of deposit and higher interest rate of spread.
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Weaknesses

 Inadequate marketing of its products and services.

 Need of effective manpower planning.

 Frequent problems in the ATM machines.

 Lack of quick customer response.

 The customer service department is not able to operate efficiently.

Opportunities

 It can take advantage of its good reputation and further expand its customer base.

 It can provide better training to their employees to be able to adapt themselves with

the new technology.

 Being technically ahead than the competitors can help Prabhu Bank to have an edge

over other banks.

 It can further increase its spread with the provision of new schemes.

 It can establish links with the foreign banks to provide extra facilities.

 It can come up with new innovative products and services.

 Reduction in the necessity of lending to the priority sectors.

Threats

 Political problems ongoing in the country.

 Lack of stable government.

 Rapid increase in the number of commercial banks.

 Lack of attractive and profitable investments.

 Various rules and regulations imposed by the government/NRB.

 Unfavorable socio-economic condition of the country.

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 Highly informed customers pose a challenge for the bank to provide better

service.

Chapter 4: 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. To develop student skill in object-oriented business management and to solve

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real life business problems Tribhuvan University has developed a course of internship

program for 8 weeks. It provides practical exposure and helps students to understand

corporate world .The twelve weeks internship on Prabhu Bank Limited was really knowledge

gaining.

4.1 Analysis of Activities Done

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 perceives 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 internee performed the following general activities such as:

 Receiving the visitors and customers

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 Receiving and making telephone calls

 Filling KYC form

 Account opening

 Closing of account

 Recording, Filing and documentation

 Cheque printing

 Recording and issuance of ATM card

 Balance enquiry

 Providing and filling up different types of forms

 Scanning and photocopy

 Bank statement

Receiving 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.

Receiving 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.

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Filling 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. The requirements for KYC update are:

 Two Recent Passport Size Photographs

 Original citizenship card and its photocopy

Account Opening.Account opening is the most frequent activity done in customer

service department .To deposit the money or to conduct 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 such as saving

account, current account, fixed account.

Closing ofAccount.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.
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 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.

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 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.

Cheque 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).

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.

BankStatement.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.

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Remittance Department.Remittance helps its customers to transfer 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 service of 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.Moreover, remittance transfer 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.

Internee have learned to carry out tasks like making payment of the money came

through different remit like 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. Similarlycredit amount must match with the total incoming amount.

 Helping customers to fill up the forms.

 Entering the information into the system software.

 Cheque clearing is also done in remittance department so internee has to fill up the

cheque vouchers and answering customers queries about clearing.

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4.2 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. While 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.

 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.

If the 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 the customers to bring the missing documents while they request to open an

account and perform the transactions.

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4.3 Observed Gap

Knowledge gained from the academic courses seemed to be totally different in practice.

Although there is huge gap between theory and practice, the concept of the theory is essential

in the workplace. Practical knowledge is totally based on the task we performed in the

working environment. Dealing with various kinds of customers effectively can be sharped

through practice. Depth knowledge from the book about customer relationship cannot be as

effective as that in practice. Socio-cultural factors, the interpersonal relationship and mixing

with society is crucial task.

Whenever internee learn something through the help of books, get a mental picture as to what

should be, but after the completion of internship the internee found out that the textbooks and

the real world situation are two completely different matters because what we learnt in the

textbooks are not updated from time time where as in the real world one has to be updated in

order to compete and get success.

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Chapter5: Summary, Lesson Learnt and Recommendation

5.1 Summary

Nepal being an under privileged country and more than ninety percent of people being

dependent upon agriculture, which sector is unable to provide full employment to the people.

HMG has to activate people in the nation’s development through overall industrialization of

nation. For which development of sound banking system is necessary.

Modern commercial banks make the economy always alive and smart to run and maintain

day to day commercial, economical and banking transactions. In short, banking transactions

helps a country to develop its economy swiftly.

At present commercial banks include joint venture banks are operating in Nepalese Banking

Industries. It is remarkable fact that any country cannot have a developed economy in the

absence of modern banking system. As any development, work needs a sufficient amount of

capital and the lack of sufficient capital is also one of the main reasons as Nepal has been

backward in developing its economy.

Therefore, it is utterly important to find out whether or not the banks are serving an important

contribution to develop different sectors of the economy. Cash and Bank Balance and

Deposits occupies major portion of banking income. It plays a vital role in updating the

national economy.

There are too many banks and financial company in present market, which are trying to give

more interest and facility to the consumer for collection on deposit. For the collection of more

deposit Prabhu Bank should try to provide its scheme to other account holders also. It should

try to give other facility to the depositors for the collection of deposit like giving some gifts

for the old sincere customer.

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The bank should give first priority to agriculture sector and industrial sector because

agriculture and industrial sectors are main sources of livelihood. Its rules and regulation are

not that strict. So, it should amend its rules and regulation according to situation and central

bank direction.

5.2 Conclusion& lesson learnt

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, in particular, 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 banking such as

to socialize with 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.

Lesson Learnt

Working as an intern in Prabhu Bank for two months, Internee was able to know the working

procedure of Finance and Account department of Prabhu Bank. 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, workplace
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behavior, and other important aspects is the real prize awarded by the internship program to

internee. Being attached with different department of Prabhu Bank, internee learned the

following points:

• Various rules of NRB and importance of having every possible document in the operation

of account and finance activities.

• Learn about various banking income and expenses.

• Learn to face and handle problems effectively and efficiently.

• The importance of being punctual, manage time and being patient.

• Along with customer satisfaction, employee satisfaction also plays a great role in the

success of the bank.

• The need of bringing out all potential to move forward as an effectively and efficient

employee.

• The tough competition of banks for the survival and the tough competition in the banks for

employees as well as getting a job.

• Build up self-confidence.

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 will

help to build a platform and prepare for the future.

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5.3 Recommendations

With reference to the findings and the conclusion drawn out above, following are the

recommendation which can be sorted out. It is observed that the employees were

overburdened because of the heavy workload so they have to stay at branch office till late at

night. Though they were remunerated their efficiency is affected. Proper time management or

hiring more employees can minimize the burden of work. Bank has provided many facilities

to the customers like ATM Cards, E-Banking, Mobile Banking but only this is not enough.

The Bank should ensure smooth flow of services without any complaints from the customers.

There should be good communication between head office, corporate office and branches.

The bank should also show some responsibility towards society, by organizing different

social program, sponsoring and promoting educational health program. The bank should

monitor the behavior and attendance of the internee so that they are encouraged to be best and

feel like a part of their organization. The bank need to have a monthly meeting with all staff

including internee so that they can give some recommendation to banks during internship and

they may understand working environment easily. Hence, the bank should add more space to

the Birtamode branch for index files storage and other equipment. Lack of space makes the

bank look messy and unorganized.

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References

Annual report of Prabhu Bank Limited.

http/www.nrb.org

http/prabhubank.com.np

http/www.wikipedia.com

http/www.google.com