EVALUATION OF CUSTOMER SERVICE, CLEARING

AND CREDIT DEPARTMENT OF PRABHU BANK

LIMITED

BY

Jivan Tharu

7-2-302-23-2018

2180/18

Lumbini Banijya Campus

An Internship Report submitted to

Faculty of Management, Tribhuvan University

In partial fulfillment of the requirement for the degree of

BACHELOR OF BUSINESS MANAGEMENT (BBM)

Butwal-11, Rupandehi

Jestha 12, 2080

i
 Declaration

I hereby declare that the internship report entitled, “EVALUATION OF CUSTOMER

SERVICE, CLEARING AND CREDIT DEPARTMENT OF PRABHU BANK
LIMITED” submitted to the Faculty of Management, Tribhuvan University,
Kathmandu is an original report work done under the supervision of Dr. Bhagwati
Prasad Chaudhary, faculty member of Lumbini Banijya campus, Butwal and is
submitted in partial fulfillment of the requirements for the award of the degree of
Bachelor of Business Management (BBM). This internship report has not been
submitted to any other university or institutions for the award of any degree or
diploma.

________________________

Signature:

Jivan tharu

Date:

ii
RECOMMENDATION

iii
CERTIFICATE

iv
EVALUATION CERTIFICATE

v
 ABSTRACT

This internship report provides a comprehensive overview of my internship

experience at Prabhu Bank Ltd. The report is divided into several chapters, each
focusing on different aspects of the internship.

Chapter 1 serves as an introduction, outlining the objectives, methodology, sources,

and limitations of the report.

Chapter 2 delves into the introduction of the Banking and Financial Institutions (BFIs)
in Nepal. It explores the evolution of BFIs, their role in the Nepalese financial
landscape, and presents the current scenarios of BFIs in the country.

Chapter 3 is dedicated to introducing Prabhu Bank Limited. It discusses the bank's

background, highlighting its mission, vision, and objectives. Additionally, the chapter
provides an overview of the bank's various departments and the services offered
through its product portfolio.

Chapter 4 focuses on the activities carried out during my internship at Prabhu Bank
Limited. It highlights the specific tasks I was involved in, including document
scanning in the filing department and problem-solving in the Customer Service,
Clearing and Credit Department. It also discusses the challenges encountered during
these activities and the strategies employed to address them.

Finally, the concluding chapter summarizes the overall experiences and lessons
learned during the internship period. It reflects on the gained insights, skills
developed, and the significance of effective communication, problem-solving
abilities, and adaptability in a professional banking environment.

Through this report, a comprehensive understanding of the banking industry in Nepal,

the operations of Prabhu Bank Ltd., and the practical experiences gained during the
internship is presented. The report aims to contribute to the existing knowledge in the
field and provide valuable insights for future interns and researchers in the banking
sector.

vi
 ACKNOWLEDGEMENT

I worked hard to prepare this internship report. However, it would not have been
possible without the kind support and help of many individuals and organizations as
well. Their contribution is sincerely appreciated and gratefully acknowledged. At the
very outset, I feel deeply honored in expressing my heartfelt respect toward my
campus i.e. Lumbini Banijya Campus which has been a platform for my career
development.

Similarly, I take this opportunity to express my profound gratitude and deep regards
to my intern supervisor Dr. Bhagwati Prasad Chaudhary and program in charge of
BBM Mr. Madhukar Sharma for their exemplary guidance monitoring and constant
encouragement throughout the internship period.

Moreover, I would like to express my gratitude towards our campus chief Prof. Dr.
Tara Prasad Upadhaya sir for his kind co-operation and encouragement in completion
of this internship report. Further, I am highly indebted to all my teachers of Lumbini
Banijya Campus who has provided crucial information through orientation class
regarding preparation of my project work.

Furthermore, the experience I had with Prabhu Bank Limited was a great chance for
learning and professional development. I consider myself very lucky to get
opportunity and to be part of Prabhu Bank family. In this perspective, I would like to
express my deepest gratitude towards Prabhu Bank Limited and my supervisor Mrs.
Pabitra Sharma (OI), Mrs Laxmi Gaha (CSD), Mr Thakur Gautam (CM), Mrs Nita
Shrestha (ARM) and Rajeev Gautam (BM) for accepting my proposal and providing
me opportunity to be part of their family member for the duration of forty five days.

Likewise, I place a deep sense of gratitude to my family members who have been
immense source of insipiration during the preparation of this project work. I would
also like to thank my friends for their encouragement and motivation in preparing this
report.

Jivan Tharu

BBM 8th Semester Lumbini Banijya Campus

vii
 Table of Contents
TITLE PAGE.........................................................................................................................i
Declaration..........................................................................................................................ii
RECOMMENDATION.......................................................................................................iii
CERTIFICATE....................................................................................................................iv
EVALUATION CERTIFICATE............................................................................................v
ABSTRACT..........................................................................................................................vi
ACKNOWLEDGEMENT...................................................................................................vii
TABLE OF CONTENTS...................................................................................................viii
List of Table.........................................................................................................................x
List of Figures.....................................................................................................................xi
Abbreviations.....................................................................................................................xii
I. INTRODUCTION.................................................................................................1
1.1 Background................................................................................................................1
1.2 Objective of the study................................................................................................1
1.3 Methodology..............................................................................................................2
1.3.1 Selection of the organization..........................................................................................2
1.3.2 Placement.......................................................................................................................3
1.3.3 Duration of internship....................................................................................................3
1.3.4    Source of Data Collection...........................................................................................3
1.4 Limitation of the study...............................................................................................4

II.
INTRODUCTION OF THE BANK AND FINANCIAL
INSUSTITUTIONS IN NEPAL...........................................................................5
2.1 Introduction................................................................................................................5
2.1.1 Basis of classification....................................................................................................5
2.2 Evolution of Banking and Financial Institutions in Nepal.........................................6
2.3 Role of BFIs in economy of Nepal............................................................................8
2.4 Present Scenarios of BFIs in Nepal............................................................................9

III. INTRODUCTION OF THE PRABHU BANK LIMITED..............................11

3.1 Profile of Prabhu Bank Limited...............................................................................11
3.1.1 MISSION.....................................................................................................................11
3.1.2 VISION........................................................................................................................11
3.1.3 CORE VALUES AND ETHICAL PRINCIPLES........................................................12
3.1.4 CORPORATE SOCIAL RESPONSIBILITY............................................................12
3.1.5 NETWORKS OF PRABHU BANK............................................................................13
3.2 Organizational Structure..........................................................................................14
3.3 Products and Services provided by Prabhu Bank Limited.......................................14

viii
 3.4 Department in Banking Branch................................................................................15
3.5 Products at Glance...................................................................................................17
3.5.1 Welcome Savings.........................................................................................................18
3.5.2 Prabhu Foreign Unnati Savings....................................................................................18
3.5.3 Instant VISA debit card................................................................................................18
3.5.4 Prabhu mobile banking..............................................................................................18

IV. ANALYSIS OF ACTIVITIES DONE AND PROBLEMS SOLVED.............19

4.1 Activities performed in the organization.................................................................19
4.1.1 Customer service department.......................................................................................19
4.1.2 Clearing and Remittance department...........................................................................20
4.1.3Filling department.........................................................................................................21
4.2 Problems Encountered and Solved..........................................................................21

V. CONCLUSIONS AND LESSON LEARNT......................................................24

5.1 Experiences and lesson learnt..................................................................................24
5.2 Conclusion...............................................................................................................25
BIBLIOGRAPHY................................................................................................27

ix
 List of Table

Table No. Title Page No.

1.1 Placement duration during the internship 3

2.1 Minimum Capital requirement 6

2.2 Nature and functions carried by BAFIs 6

3.1 Networks of Prabhu bank ltd 13

x
 List of Figures

Figure No. Title Page No.

3.1 Prabhu bank core values 12

3.2 Networks of Prabhu bank ltd 13

xi
 Abbreviations

ADC : Analog to Digital Conversion Product

ARM : Assistant Relationship Manager

ATM : Automated Teller Machine

BBM : Bachelor of Business Management

BFIs : Bank and Financial Institutions

BM : Branch Manager

BAFIA : Bank and Financial Institution Act 2073

BOD : Board of Directors

CSD : Customer Service Department

CM : Credit Manager

CSR : Corporate Social Responsibility

CEO : Chief Executive Officer

FOM : Faculty of Management

GON : Government of Nepal

IPO : Initial Public Offering

KYC : Know Your Customer

LIC : Life Insurance Companies

MFIs : Microfinance Institutions

NRB : Nepal Rastra Bank

NLIC : Nepal Life Insurance Companies

OI : Operation In-charge

PBL : Prabhu Bank Limited

xii
POS : Point of Sale

PCs : Personal Computers

QR : Quick Response

ROs : Regional Offices

RTGS : Real Time Gross Settlement

SWIFT : Society for Worldwide Interbank Financial

Telecommunication

SMS : Short Messege Services

SMEs : Small and Medium Enterprises

TU : Tribhuvan University

xiii
 CHAPTER I

INTRODUCTION

1.1 Background

Tribhuvan University is the largest and oldest university in Nepal. It is the pioneer
university in providing management education and since its establishment it has been
providing the excellent education to the students. It provides a wide range of streams
in the educational sector among which management education holds a major position.
TU has designed various management courses under faculty of Management (FOM).
Among many courses, one of the outstanding developments is in the form of BBM.
For the partial fulfillment for the degree of BBM, every 8 th semester BBM students
are supposed to undergo internship training in any reputed organization and prepare
an internship report. In these perspectives, it is essential for the management internee
to get exposure of such issues.

The BBM program has incorporated eight weeks internship program with a view to
developing students’ skill in object-oriented business management, capable of
understanding and solving real life business related problems. So, being the student of
BBM in LBC the intern selected PBL and got involved in 45 days internship program.
During the period of internship, internee got the chance to learn many practical kinds
of stuff of the banking sector. As the topic is about the Clearing, Credit and Customer
Service Department Analysis of Prabhu bank limited, this project report is basically
focused on the services provided in the CSD Department and clearing department in
PBL.

1.2 Objective of the study

The internship program is undertaken for the partial fulfillment of the requirements
for the degree of BBM. The general objective of this program is to make students
familiar with the working environment and gain the practical experience in the related
field. This further helps the students to expose themselves to the real world of the
external environment about different aspects of management where they can apply
their theoretical knowledge. The main task of the internship program is to make a
study on the banking operations process, understand the services provided to its

1
customers, and have complete knowledge and functioning of the related departments.
These objectives can be jotted down as below:

 Gaining practical experience.

 Developing professional skills.
 Exploring career paths.
 Building a resume.
 Gaining insights into industry regulations, best practices, and the day-to-day
operations of a company.

1.3 Methodology

Completion of the internship is a combination of the different types of activities. It

starts from the selection of the organization for the internship, performance of
different kinds of activities and placement in different parts of the organization and at
last collection of various primary and secondary data for the preparation of the report.
In terms of data collection, both primary as well as the secondary source had been
used.

1.3.1 Selection of the organization

Selection of the organization is always a crucial task. As a student of entrepreneurship

and enterprise development, to convert theoretical knowledge into the practical field
my initial preference is to join the industry or manufacturing business organization.
Unfortunately, due to recent economic breakdown none of the business was looking
to keep an intern at the company. After searching for the many companies and being
rejected the last option was to choose the banking and financial institutions (BFIs). At
last, I chose PBL which is one of the leading commercial bank of Nepal. So, I gave
my recommendation letter given by campus and required document at PBL which I
knew would be perfect environment that is necessary for any student doing the
internship and got a chance to be a part of it for eight weeks.

1.3.2 Placement

I was placed in PBL, amarpath branch (taksar complex). During the internship period,
I was placed in CSD, Clearing, Credit and Remittance Department as well as filing

2
department. Every staff of PBL were very supportive and friendly. The organization
helped me to complete the internship period with the help of proper guidance.

1.3.3 Duration of internship

TU has prescribed minimum six credit hours for the internship which is equivalent to
eight weeks.

 Duration of internship started at 4th April 2023 and ended at 26th May 2023.
 Report to the organization after 10:00 am

The bank has closely monitored attendance, performance and conduct of an intern at
the workplace.

Table 1.1: Placement Duration during the Internship

Departments 1st 2nd 3rd 4th 5th 6th 7th 8th

CSD
Clearing
Filing
Remittance
Credit

1.3.4    Source of Data Collection

The term refers to the way of the collection of data and information. There are the
different source of collection of data and information. They are the primary source
and secondary source. Here, both of these sources are used to make the report
authentic.

A. Primary source:

Observing the work of staff how they deal with the customers and asking the
curious questions which came in mind related to the banking functions which
helped to acquire a lot of information from them. Dealing with the customers via
phone calls or direct contact and solving their queries and if the queries are
unknown asking the staff about it and observing how they solve it.

3
 B. Secondary source:

Official website of PBL, Wikipedia and Nepal Rastra Bank (NRB) website were
the major source for the collection of secondary source of the information. Annual
report and fundamental report of the bank was acquired from the sharesansar
website.

1.4 Limitation of the study

Despite most of the efforts undertaken to make the project more realistic, practicable
in terms of Nepalese context, there are certain limitations of the study:

 Limited scope and time for skill development: The duration of a 45 days
internship restrict the scope of the projects. It might not provide a
comprehensive overview of all aspects of banking operations, departments or
functions. Whereas, internship provide an opportunity to develop practical
skills, but a 45-day duration may not be sufficient to develop or master
complex banking skills.
 Limited depth of understanding: Banking is a complex industry with
multiple layers of operations, regulations and financial internship. A 45-day
internship may not allow for deep dives into complicated banking process,
complex financial products. Understanding of certain concepts or practices
may remain surface level due to time constraints.
 Limited independence: As an intern, we have to work under supervision or
guidance, limiting our autonomy and independent decision making. This can
restrict the ability to fully explore or implement the ideas within the
organizations.

Despite these limitations, a 45-days internship can still offer valuable insights,
hands-on experience and a foundation to build upon. It is important to recognize
the limitations and focus on knowledge and skills gained during the internship to
enhance our future academic and professional goals.

4
 CHAPTER II
INTRODUCTION OF THE BANK AND FINANCIAL
INSUSTITUTIONS IN NEPAL

2.1 Introduction

Bank can be defined as the financial intermediary between depositors and

entrepreneurs. The intermediation takes place when banks accept deposits from the
general public, corporate bodies, and private organizations and deploys those deposits
for profitable purpose in the form of loans and advances. An institution that collects
funds from various sources and invests such collected funds to persons and
organizations is known as financial institutions.

In Nepal BAFI Act, 2073 has categorized the BFIs into four categories:

A-level : Commercial Bank

B-level : Development Bank

C-level : Finance company

D-level : Micro-Finance Company

Non-categorized : Infrastructure Development Bank

2.1.1 Basis of classification

BAFI Act 2073 and NRB Act 2058 has categorized BFIs on the basis of minimum
capital requirement, function carried by BAFIA and their area of functions carried
NRB has categorizes BAFIs as A, B, C, D level but infrastructure development will
not come under below classification.

Minimum Capital Requirement

Table 2.1: Minimum capital requirement

Level National Level Up to 10 districts Up to 5 districts

A Rs.800 crore - -
B Rs.250 crore Rs.120 crore Rs.50 crore
C Rs.80 crore Rs.80 crore Rs.40 crore

5
 Level National level Regional level 4-10 districts 1-3 districts
D Rs.60 crore Rs.6 crore Rs.2 crore Rs.1 crore
Source: Nepal rastra bank

 Nature of function carried by BAFIs

Table2.2: Nature and function carried by BAFIs

Level Nature of function carried unit

A Which more specifically deals with deposit and loan services provided
to cooperation’s or large/middle sized business.
B Established with the view to promote industrial, agriculture, tourism
and hydro-power sector of the country.
C Supplies credit for the purchase of consumer goods and services by
purchasing time-sales contracts or merchants or by granting small
loans directly to consumers.
D Encompasses all aspects of financial services that deliver access to
low-income and undeserved people i.e. loans, micro insurance, micro
savings, etc.

2.2 Evolution of Banking and Financial Institutions in Nepal

The modern banking system in Nepal began in the early 20 th century with the
establishment of Nepal bank limited in 1937 B.S. Initially, the banking sector was
dominated by a few commercial banks that provided basic banking services.

The regulatory oversight of the banking sector started with the establishment of the
NRB in 1956 B.S. as the central bank of Nepal. The NRB was entrusted with the
responsibility formulating monetary policy, regulating BFIs and promoting financial
stability.

In the 1980s and 1990s, the banking sector in Nepal witnessed significant growth with
the establishment of several commercial banks, development banks and finance
companies. This expansion was driven by increased economic activity, liberalization
of the financial sector and government policies to encourage private sector
participation.

In the late 1990s, microfinance institutions (MFIs) emerged as a vital component of

the financial sector in Nepal. MFIs focused on providing financial services to low-
income individuals, marginalized communities, and small businesses. These

6
institutions played a crucial role in promoting financial inclusion and supporting rural
development.

Cooperatives also have a long history in Nepal, dating back to the early 20 th century.
They have played an important role in mobilizing savings, providing credit and
promoting community-based financial services. Cooperative banks and financial
institutions continue to operate alongside commercial banks and MFIs, particularly in
rural areas.

The banking sector in Nepal has embraced technological advancements in recent

years. BFIs have adopted internet banking, mobile banking, ATM networks and
electronic fund transfers to enhance convenience, improve efficiency and provide
customer experiences.

The NRB has implemented various regulatory reforms to strengthen the banking
sector and enhance financial stability. These reforms include measures to improve risk
management, corporate governance, capital adequacy, anti-money laundering
practices and financial reporting standards.

Nepal has gradually liberalized its financial sector to attract foreign investment and
foster competition. This has led to the entry of foreign banks and financial institutions
into the Nepalese markets, contributing to increased diversity and innovation in the
sector.

The NRB has placed increased emphasis to corporate governance and compliance to
ensure the soundness and integrity of BFIs. This includes setting standards for risk
management, capital adequacy, internal controls and disclosure requirements.

Thus, the evolution of BFIs in Nepal reflects the country’s economic development,
changes in regulatory frameworks and efforts to promote financial inclusion. The
sector has expanded, diversified and adopted technological advancements to meet the
evolving needs of the Nepalese economy and its population.

2.3 Role of BFIs in economy of Nepal

Banking and Financial Institutions play a crucial role in the economy of Nepal. Some
key roles and contribution of BFIs are given below:

7
 Financial Intermediation: BFIs act as intermediaries between savers and
borrowers, mobilizing savings from individuals and institutions and channeling
them towards productive activities. They provide loans, credit facilities and
financing to various sectors of the economy, including individuals, businesses,
agriculture, infrastructure and small-medium enterprises (SMEs). This facilitates
capital formation and supports economic growth.
 Payment system and money circulation: BFIs facilitate the smooth
functioning of the payment system enabling individuals and businesses to
conduct transactions, transfer funds and settle payments. They issue cheque,
provide electronic banking services, operate ATM networks and facilitate
domestic and international remittances. BFIs ensure the efficient circulation of
money within the economy, enabling economic activities and trade.
 Resource Mobilization: BFIs mobilize savings from individuals, households
and institutions and allocate them towards productive investments. They provide
a platform for individuals and organizations to deposit their excess funds, earn
interest, support entrepreneurial activities, finance investments and contribute to
economic development.
 Credit Creation and Economic Expansion: BFIs play a critical role in credit
creation, allowing businesses and individuals to access capital for investment,
expansion and consumptions. By providing loans and credit facilities, BFIs
contribute to increased economic activity, job creation and income generation.
They facilitate the financing of infrastructure projects, industries, agriculture and
other sectors that drive economic growth.
 Financial Inclusions: BFIs in Nepal have made significant efforts to promote
financial inclusion, especially in rural and undeserved areas. They provide
banking services, microfinance and tailored financial products to individuals
with limited access to formal financial institutions. BFIs have contributed to
poverty reduction, empowerment of marginalized communities and the growth
of small business through inclusive finance initiatives.
 Risk Management and Stability: BFIs play a critical role in managing
financial risks and ensuring the stability of the financial system. They employ
risk management practices such as credit assessment, monitoring and
provisioning to mitigate potential losses. BFIs also comply with prudential

8
 regulations and maintain adequate capital buffers to safeguard depositor funds
and maintain financial stability.
 Support for Government Policies: BFIs collaborate with the government in
implementing various economic policies and initiatives. They participate in
government bond auctions, Treasury bill transactions and other debt
management activities. BFIs also provide financial services to government
entities, including public sector organizations and institutions.
 Facilitating International Trade and Remittances: BFIs facilitate
international trade by providing trade finance services such as letters of credit,
guarantees and foreign transactions. They also play a vital role in handling
remittances from Nepali workers abroad, allowing efficient and secure transfer
of funds to families and beneficiaries within the country.

Overall, BFIs contribute to economic growth, financial stability and the well-being
of individual and business by facilitating financial intermediation, resource
mobilization, credit creation and financial inclusion. Their role in the economy of
Nepal is instrumental in supporting entrepreneurship, investment and sustainable
development.

2.4 Present Scenarios of BFIs in Nepal

As of mid-April 2023, the total number of BFIs shrunk to 119 comprising of 21

Commercial banks, 18 Development banks, 17 Finance companies, 63 MFIs and 1
Infrastructure development bank. Likewise, as of 10th May, 2023 15 Life Insurance
Companies (LIC), 15 Non-life insurance companies (NLIC) and 2 Re-insurance
companies are in operation.

The share of BFIs in total assets of the financial system stood at 79.99 percent in
mid-July 2021 compared to 78.86 percent in the previous fiscal year. Commercial
banks lead the financial system in share of total assets followed by development
banks. The share of MFIs is increasing whereas share of development banks. The
share of MFIs is increasing whereas share of development banks and finance
companies are contracting.

Electronic payment transaction has increased significantly due to the development

of payment infrastructure, policy of encouraging electronic payments and gradual

9
adoption of electronic payment instruments. For the facilitation of electronic
transactions, 10 institutions have obtained licenses for payment service providers.
The RTGS system has come into operation.

BFIs in Nepal are increasingly focusing on technology adoption to enhance their

operation and services. They are investing in digital banking platforms, mobile
banking apps and online payment systems to offer convenience to customers and
improve overall efficiency.

Nepal heavily relies on remittances from its citizens working abroad. BFIs play a
vital role in facilitating the inflow and distribution of remittances. Efficient
management of remittances, including remittance products, foreign exchange
transactions and distribution channels is a priority for BFIs.

Out of total 753 local levels, commercial banks extended their branches at 750 local
levels as of mid-September 2021. The number of BFIs branches reached 10882 in
mid-September 2021.

10
 CHAPTER III
INTRODUCTION OF THE PRABHU BANK LIMITED

3.1 Profile of Prabhu Bank Limited

The bank has gone through the various phases of its growth trajectory over a short
period of its existence. Growth of Prabhu Bank was phenomenal, especially after
merger of Grand Bank Nepal Limited, Kist Bank Ltd, Prabhu Bikash Bank Ltd,
Gaurishankar Development Bank Ltd and Zenith Finance Ltd in 2016, attaining the
status of “A” class financial institution licensed and regulated by the central bank of
Nepal, NRB.

The Bank has a network of 365 branches, 71 extension counters and 309 ATMs
across the country making it premier private bank in terms of geographical reach
and clientele segments with customer base of more than 3.1 million.

The Bank offers full range of commercial banking services for personal and
business customers. As a leading financial institution, the bank aims towards
connecting customers to the opportunities, enabling business to thrive and uplifting
economies to prosper. Consequently, helping people to fulfill their hopes and realize
their ambitions.

3.1.1 MISSION

To become the leading commercial bank in Nepal by providing the finest

quality financial products and services to our customer; enhance our
shareholders’ value, contribute to the economic prosperity of the country and
to create continuous learning and growth opportunities for our people.

3.1.2 VISION

“To support individuals, families and businesses to attain financial

independence and improve their financial wellbeing”

11
 3.1.3 CORE VALUES AND ETHICAL PRINCIPLES

The core values let the institute, customers and communities know what
they serve, who they really are and the principles by which they pledge to
conduct business. In essence, the bank believes that success can only be
achieved by being true to the core values and principles.

Figure3.1: Prabhu bank core values

3.1.4 CORPORATE SOCIAL RESPONSIBILITY

For Prabhu Bank, CSR has always been on top of the agenda. CSR for them
means embracing responsibility for the impact of their activities on the
environment, consumers, employees, communities, stakeholders and all
other members of the public sphere thereby managing our business
responsibly and sensibly for long term sustainable banking. Prabhu bank has
been conducting various activities for the welfare of the community and
leading employee engagement activities. Some of the major CSR activities
are given below:
 Bank has supported with steel shoe rack for Siddhababa Temple
located at Dovan, palpa.
 4 street lights worth Rs.24000 at main road of kalanki, Kathmandu
was provided by the bank in coordination with a Non-
Governmental Organization.

12
3.1.5 NETWORKS OF PRABHU BANK

Table3.1: Networks of Prabhu bank

Province name Districts covered Number of branches

Koshi 12 49
Bagmati 13 142
Madhesh 8 38
Gandaki 11 61
Lumbini 12 43
Karnali 6 13
Sudurpaschim 6 19

Figure 3.2: Networks of Prabhu bank

160

140

120

100

80

60 DISTRICT COVERED
NUMBER OF BRANCHES
40

20

0
I I I NI I
SH AT ES
H K
BI AL HI
M
O DA N
K GM AD
H N
LU
M AR AS
C
BA M GA K P
DUR
SU

13
3.2 Organizational Structure

An organizational structure refers to the framework that outlines how an organization

is designed, organized, and arranged to carry out its activities and achieve its
objectives. It defines the relationships, roles, responsibilities, and reporting
hierarchies within the organization. The organizational structure serves as a blueprint
for how work is organized, coordinated, and managed within the organization,
ensuring clarity, efficiency, and effective functioning of the overall entity.

Organizational structure allows the expressed allocation of responsibilities to different

entities such as branch, department, workgroup and individual. The head office of a
bank is located at Babarmahal, Kathmandu, Nepal. Board of Directors is the apex
body of the bank which formulates policies as well as strategies and provides
guidance to the management. The executive power is vested in the Chief Executive
Officer (CEO). The bank has different departments in its head office and five regional
training centers with residential facilities in five development regions. The BOD
comprises a total of nine members; four members representing Government of Nepal
(GON) and four members representing individual shareholders. Besides, one member
is nominated by the board as per the BAFIA. The board is supported by audit
committee and governance sub-committee in the area of internal control and good
governance respectively. The day by bay operation of the bank is executed by the
CEO. The CEO is closely assisted by four deputy general managers and 18 division
chiefs. Moreover, CEO is supported by Assets and liabilities management sub-
committee for various activities related to risk management. Hence, the bank has three
tier organizational structure consisting of Head Office, Regional Offices (ROs) and
Field Offices.

3.3 Products and Services provided by Prabhu Bank Limited

Prabhu bank aims to provide the comprehensive range of flexible and innovative
products and services to meets the changing needs of the customers.
Some of the major products and services provided by the bank are given below:
i. Deposits product: The bank offers a vary of deposit products which
provides interest rates quite competitive among the banks of its class.

14
 Some of the examples are: Normal Savings, Salary Savings, Welcome
Savings, Foreign Remit Savings and Fixed Deposit, etc.
ii. Loans and Advances: Prabhu Bank offers different types of loans and
advances to individuals, businesses, and various sectors. These may
include Prabhu auto/hire purchase loan, Prabhu home loan, Prabhu
education loan and Prabhu loan against share.
iii. Analog-to-Digital Conversion Products: ADC is an electronic process in
which a continuously variable, or analog, signal is changed into a
multilevel digital signal without altering its essential content. These
include products like: Debit/Credit Card, Mobile Banking and Internet
Banking.
iv. Foreign Exchange Services: Prabhu Bank provides foreign exchange
services, including buying and selling major currencies, issuing foreign
currency drafts, and facilitating international money transfers.
v. Remittance Services: Prabhu Bank provides remittance services,
facilitating the transfer of funds from abroad to beneficiaries in Nepal.
They collaborate with international money transfer companies and have a
network of branches and agents to offer efficient remittance services.
vi. Merchant Services: Prabhu Bank also provide merchant services to
businesses, enabling them to accept card payments from customers
through point-of-sale (POS) terminals and online payment gateways i.e.
Fone-pay.
vii. RTGS (Real-Time Gross Settlement): Prabhu Bank provides RTGS
services, enabling customers to perform high-value interbank fund
transfers in real-time. RTGS ensures immediate and final settlement of
transactions, allowing for fast and secure transfer of funds between banks
within the country.

3.4 Department in Banking Branch

In a bank's Branch Banking department, various specialized departments or roles exist

to support different aspects of branch operations and customer service. These
departments may include:

A. Customer Service: The Customer Service department is responsible for

assisting customers with their banking inquiries, addressing their concerns,

15
 and providing information about various bank products and services. They
handle account-related inquiries, provide guidance on banking procedures,
and help resolve customer issues. This department is responsible for
opening new accounts for customers, including savings accounts, current
accounts, and fixed deposit accounts. They gather customer information,
verify documents, complete necessary paperwork, and assist customers in
fulfilling the account opening requirements.
B. Teller Operations: The Teller Operations department consists of tellers
who handle routine customer transactions such as cash deposits,
withdrawals, cheque encashment, and fund transfers. They are responsible
for accurately processing transactions, verifying customer identification,
and ensuring compliance with banking procedures. This department
oversees the management and control of cash within the branch. They
ensure that there is an adequate supply of cash for customer transactions,
monitor cash levels, reconcile cash balances, and maintain security
protocols for cash handling.
C. Loans and Credit: The Loans and Credit department handles loan-related
activities, including processing loan applications, assessing
creditworthiness, conducting credit evaluations, and facilitating loan
disbursements for customers. The department builds and maintains
relationships with borrowers, providing guidance, support, and assistance
throughout the loan process. They address customer inquiries, explain loan
terms, and provide financial advice when needed. Good customer
relationship management helps in fostering long-term customer loyalty and
mitigating potential issues.
D. Operations Support: The Operations Support department provides
administrative and operational support to the branch. They handle tasks
such as document processing, account maintenance, record keeping, and
report generation to support the smooth functioning of branch operations.
This department also facilitates Letter of credit, credit bill payment,
BiBiNi and Society for Worldwide Interbank Financial
Telecommunication (SWIFT) fund transfer. This department also handles
the black listing process too.

16
 E. Remittance and Clearing Department: The Remittance Department focuses
on facilitating inward and outward remittances for customers. They handle
the process of receiving funds from overseas banks and distributing them
to the beneficiaries in Nepal. This department works closely with
international money transfer companies, correspondent banks, and
regulatory authorities to ensure smooth and efficient remittance services.
The Clearing Department manages the clearing process for cheque and
other financial instruments. They handle the clearance and settlement of
cheque presented for payment by customers of Prabhu Bank as well as the
processing of cheque issued by the bank's customers that are deposited in
other banks. The department follows the clearing guidelines and
procedures set by the central bank or clearinghouse to facilitate the smooth
exchange and settlement of cheque.
F. Filling Department: The Filling Department ensures the proper
management and organization of physical and electronic documents. This
includes categorizing, labeling, and storing documents in a systematic and
secure manner. It may involve creating a filing system that allows for easy
retrieval of documents when needed. The department maintains records of
various bank activities and transactions. This can include customer account
documents, loan agreements, financial statements, legal contracts,
regulatory compliance documents, and more. The Filling Department
ensures that these records are accurate, up-to-date, and stored in
compliance with legal and regulatory requirements. When other
departments or individuals within the bank require access to specific
documents or records, the Filling Department facilitates their retrieval.
This may involve locating the requested document, ensuring its
authenticity, and providing the necessary information to the requesting
party.

3.5 Products at Glance

Every product has unique features that help the bank to stay competitive in the
market. Some of the major products that is in high demand at the prabhu bank are
given below:

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3.5.1 Welcome Savings

 Minimum balance –NPR 0

 Competitive interest rate
 Free issuance of debit card for 1st year
 50% waiver on mobile banking registration charge
 Free ABBS charge up to the transaction of Rs 1 million

3.5.2 Prabhu Foreign Unnati Savings

 Account can be opened from aboard.

 Only available for people working aboard.
 Money should come through remit.
 Eligible to apply foreign quotas Initial Public Offerings (IPO).
 Eligible to 10.99% Fixed deposit interest rate.

3.5.3 Instant VISA debit card

 Card can be issued instantly.

 Free issuance of debit card for 1st year (only for new customers)
 Can be used in India also.
 Wider access to millions of ATMs and PoS terminals.
 Can access your account 24/7

3.5.4 Prabhu mobile banking

 SMS alert for every debit and credit transactions of 1000 or above.
 Bank account inquiry.
 Utility payments.
 Wallet loading, fund transfer and QR code payment system.

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 CHAPTER IV
ANALYSIS OF ACTIVITIES DONE AND PROBLEMS
SOLVED

4.1 Activities performed in the organization

As an intern, I will always be grateful and thankful that PBL gave an opportunity to
do intern at various departments during eight weeks period. As I got to learn various
activities from various departments but this report is specially focused on
CUSTOMER SERVICE AND CLEARING DEPARTMENT since the maximum
work hour in mine internship period were spent at those department. As I have
already described the functions of various departments in the previous chapters. Now
In this chapter, we will discuss about every activities performed during the intern
period as the major work of intern was to assist or help the staff and observe them
how they interact with the customers. I was lucky that in charge were very supportive
and they used to allow using the system to use because they also believed that intern
can learn through practical use of the system to be more efficient and to learn quickly.

4.1.1 Customer service department

 Assist the customers to fill out the form such as: a/c opening form, cash
deposit and cheque deposit voucher. Forms are provided to the customers
as per their related problems.
 We should assist in the process of onboarding new clients by collecting
required documentation, verifying client information, and ensuring
compliance with regulatory requirements. This may involve data entry,
document management, and coordination with other departments.
 Preparing the cheque books.
 Recording in the register after every service is given to the customers.
 As an internee of CSD, I was required to interact with customers who
wanted to enquire about their balances and I was responsible for providing
these customers with an inquiry and resolving their problems.
 All the forms should be segregated according to its title and should be filed
in different related index file. Intern should help maintaining and
organizing client-related documentation.
 Proper counseling to the customer with politeness.

19
  Interns in the CSD should help educate clients about various banking
products and services offered by the bank. This can involve explaining
features, benefits, and eligibility criteria for different accounts, loans,
credit cards, or investment products.
 I worked on the merged bank so I have to call those clients who have
double account on both bank and inform them to close one of the accounts
going to the nearest branch.

4.1.2 Clearing and Remittance department

 In this department, Cheque of other banks were collected and input of the
cheque details were done in the system. And the report of all cheque which
were posted throughout the days the result will come and if the customers
cheque report weren’t accepted for the payments then we should inform
them about to the costumer via. Phone and reason behind the cheque not
being accepted should be informed too.
 Some customer do the cheque clearing for the blacklist process, after the
cheque being bounced for three times the report should be provided to
them for further black listing process.
 All the accepted cheque should be checked again whether the balance is
transferred to the beneficiary account or not. If not, then the error has
occurred and then again balance should have to be transferred to their
account manually.
 At last, all the cheque which weren’t accepted should be separated and
should be kept on the separate clear bag and if the customer want to take
that cheque then again it should be recorded on the register and cheque can
be given to the customers.
 In the remittance system all the process can be through the system. Firstly
for the remittance procedure the receiver should always bring the true
identity card and one photo to be eligible to withdraw remit money. This is
new procedure system which is update NRB remit guidelines and many
customer complaints about it.
 And after that the receiver should provide the code which was given by
sender to them and it is checked into the remit system and after that all the
details of the receiver should entered into the remit system to complete the
procedure also their identity card and photo should be scanned and upload
into the system.
 After that the remit bill is printed through the system and already updated
KYC form also should be printed and the remit voucher also be filled to
withdraw the amount.

20
4.1.3 Filling department

 I helped with organizing and sorting physical files or electronic

documents.
 As an intern I have assisted in creating and maintaining indexes or
databases that track the location and contents of various documents. This
can make it easier to retrieve specific files when needed and improve
overall document management.
 When other departments or individuals require specific documents, I
should assist in retrieving them. This may include locating and retrieving
physical files.
 One of the tasks I took on was document scanning. I was responsible for
converting physical documents into digital format and storing in the PCs.

4.2 Problems Encountered and Solved

Throughout my internship at the bank, I faced various challenges that provided

valuable learning opportunities. One recurring issue was the lack of effective
communication between different departments. This resulted in delays in obtaining
necessary information or approvals for loan applications and other processes. Another
challenge I encountered was the manual and time-consuming process of document
retrieval from the archives. One common issue I faced was a high volume of customer
inquiries and complaints, which often resulted in long response times and customer
dissatisfaction. Another challenge I encountered was a lack of standardized
procedures for handling specific customer requests, such as account closures or
address changes. This resulted in inconsistencies and delays in processing customer
requests.

Over the course of my internship in the CSD of the bank, I encountered a significant
challenge where many customers lacked the necessary financial knowledge to
effectively use the mobile banking apps provided by the bank. Recognizing this issue,
I took it upon myself to provide personalized guidelines and support to assist
customers in navigating the mobile apps. I proactively approached customers during
their visits to the Customer Service Department, offering assistance and guiding them
through the mobile app functionalities. I patiently explained the different features,
answered their questions, and provided demonstrations where necessary. By taking
21
the time to understand their specific needs and preferences, I was able to tailor my
guidance to each customer's individual requirements.

During my internship in the CSD of the bank, I encountered a significant challenge

where many customers lacked financial literacy and were unfamiliar with the banking
products and services that could benefit them. Recognizing the importance of
empowering customers with financial knowledge, I took the initiative to provide
guidance and education about various banking products. As an intern, I understood
that financial literacy plays a crucial role in helping customers make informed
decisions about their finances. To address this issue, I went beyond my role in
customer service and took the opportunity to educate customers about the different
banking products and services available to them. I proactively engaged with
customers during their visits to the CSD, taking the time to understand their financial
goals, needs, and preferences. I then provided personalized guidance by explaining
the features, benefits, and eligibility criteria of various banking products such as
savings accounts, fixed deposits, loans, credit cards, and investment options. I used
simple language, examples, and visual aids to ensure that customers could grasp the
concepts easily.

During my tenure as an intern in the Clearing Department of the bank, I had the
opportunity to tackle various challenges, one of which was dealing with transaction
errors. It was a crucial task to ensure the accuracy and integrity of financial
transactions. I encountered situations where errors occurred due to incorrect account
numbers, missing information, or technical glitches in the payment systems. As an
intern, I took the responsibility of identifying and resolving these transaction errors. I
meticulously reviewed transaction records, cross-checked information with relevant
parties, and diligently worked towards rectifying the errors.

In my role as an intern in the Filing Department of the bank, I encountered a

significant challenge related to document scanning. The existing scanner we had been
using was slow and inefficient, which resulted in delays and hindered the productivity
of the department. Recognizing the need for a more efficient solution, I took the
initiative to propose the implementation of a new and faster scanner. The
implementation of the new scanner brought about a significant improvement in the
document scanning process. It dramatically reduced the time required to scan a large

22
number of pages, enabling us to meet tight deadlines and handle higher volumes of
work efficiently. The enhanced scanning speed and accuracy also minimized the
chances of errors and improved the overall quality of the scanned documents.

Overall, my internship in the CSD and Clearing Department enabled me to develop

strong problem-solving skills, effective communication techniques, and a deep
understanding of customer needs. By proactively identifying and addressing
challenges, I demonstrated my ability to contribute to the improvement of customer
service, efficiency, and overall customer satisfaction within the bank. These
experiences have reinforced my passion for delivering exceptional customer service
and my commitment to continuous improvement. I am grateful for the opportunities I
had during my internship to contribute to the bank's success, and I look forward to
leveraging these skills and experiences in my future endeavors within the banking
industry. In addition to the challenges and solutions I encountered during my
internship in the bank, I am grateful for the immense support and guidance I received
from the staff I had the privilege of working with. Their dedication, knowledge, and
willingness to help made a significant impact on my overall experience.

23
 CHAPTER V
CONCLUSIONS AND LESSON LEARNT

5.1 Experiences and lesson learnt

During my tenure as an intern in the bank, I had the opportunity to gain valuable
experiences and learn important lessons that have shaped my professional growth and
personal development. The following are some of the key experiences and lessons I
encountered during this period.

First and foremost, my internship provided me with hands-on experience in the

banking industry, allowing me to apply the knowledge and skills I had acquired
during my studies. Working in a real-world setting exposed me to the details of
banking operations, customer interactions, and the importance of attention to detail.
This practical experience not only deepened my understanding of the industry but also
enhanced my ability to adapt and thrive in a professional environment.

Furthermore, my interactions with customers taught me the significance of effective

communication and exceptional customer service. I quickly realized that active
listening and empathy were essential in providing a positive customer experience.
Understanding customer needs and finding appropriate solutions became a priority,
and I learned how to navigate challenging situations with professionalism.

One of the most important lessons I learned during my internship was the value of
continuous learning and adaptability. The banking industry is ever-evolving, with new
technologies, regulations, and customer expectations emerging constantly. I realized
the need to stay updated and embrace a growth mindset to thrive in this dynamic field.

Another key lesson I learned was the importance of flexibility and problem-solving
skills. As an intern, I encountered various challenges, such as resolving transaction
errors, addressing customer concerns, and managing time-sensitive tasks. These
experiences taught me to remain calm under pressure, think critically, and approach
problems with a proactive mindset. I developed a strong sense of calmness and
learned how to effectively navigate obstacles to achieve desired outcomes.

24
In conclusion, my internship experience provided me with invaluable experiences and
lessons that have shaped my professional journey. It taught me the importance of
practical application, effective communication, collaboration, continuous learning,
flexibility, and networking. These experiences and lessons have not only enhanced
my technical skills but have also fostered personal growth and a strong foundation for
future success in the banking industry.

5.2 Conclusion
In conclusion, my internship at the bank has been a truly rewarding experience.
Throughout my time here, I have gained invaluable insights into the banking industry
and developed essential skills that will benefit me in my future career.

During my internship, I had the opportunity to work in various departments, including

the CSD and the Clearing Department. These experiences allowed me to understand
the inner workings of the bank and appreciate the importance of seamless customer
service and efficient financial transactions.

I am incredibly grateful for the support and guidance I received from my supervisors
and colleagues throughout my internship. Their expertise, mentorship, and
encouragement have played a significant role in my professional growth. They have
provided me with opportunities to learn, contribute, and expand my knowledge in the
banking sector.

Furthermore, I am thankful for the chance to work with a diverse group of individuals
who shared their insights and experiences with me. The collaborative environment at
the bank fostered teamwork and allowed me to learn from my peers, enhancing my
interpersonal and communication skills.

Overall, my internship at the bank has provided me with a solid foundation in the
banking industry. I have gained practical knowledge, developed important skills, and
learned the importance of professionalism, adaptability, and continuous learning. I am
excited to take these experiences with me as I embark on my future career in the
finance sector.

Lastly, I would like to express my sincere gratitude to the bank for offering me this
invaluable opportunity. I am truly thankful for the trust placed in me and for the
support I received from all levels of the organization. It has been an honor to be a part
25
of the bank, and I look forward to utilizing the knowledge and skills gained during my
internship to make a positive impact in the financial world. My internship at the bank
has been a transformative journey that has equipped me with the necessary tools to
thrive in the banking industry. I am grateful for the experiences, lessons, and
relationships formed during this time, and I am confident that the skills I have
acquired will serve as a solid foundation for a successful career in finance.

In conclusion, my internship at the bank has been a truly rewarding experience.

Throughout my time here, I have gained invaluable insights into the banking industry
and developed essential skills that will benefit me in my future career.

26
 BIBLIOGRAPHY

Nepal Rastra Bank (2022) Lists of BFIs.

https://www.nrb.org.np/contents/uploads/2023/05/List-of-BFIs-Chaitra-2079-
English.pdf

NRB (2022) financial stability report

https://www.nrb.org.np/contents/uploads/2022/05/FSR-202021.pdf

Lists of
insurance.https://en.wikipedia.org/wiki/List_of_insurance_companies_in_Nepal#

Prabhu Bank Ltd (2023) Profile of the bank

.https://www.prabhubank.com/profile/profile-of-bank

Nepal Rastra Bank. (2022). Banks and financial institution (Monthly statistics).
https://www.nrb.org.np/category/monthlystatistics/?department=bfr

Bhandari, T., & Bista, R. R. (2022). Nepal Rastra Bank: Present Scenarios of BFIs.
Aksharanka Prakasan.

27