AN INTERNSHIP REPORT ON CUSTOMER SERVICE DEPARTMENT

OF PRABHU BANK LIMITED, CHABAHIL BRANCH

An Internship Report

Submitted by;
Himal khadka
TU Exam Roll No: 4829/19
Tu Registration No: 7-2-266-60-2019

Submitted to;
Office of the Dean
Faculty of Management, Tribhuvan University

In Partial Fulfillment of the Requirements for the Degree of

Bachelor of Business Management (BBM)

Department of Management, Nepal Mega College, Babarmahal, Kathmandu, Nepal

september, 2024
 ii

STUDENT’S DECLARATION

I hereby declare that this internship report entitled Customer Service Department of Prabhu
Bank Limited Submitted to Faculty of Management, TU is my original work done in the form
of partial fulfillment of the requirement of Bachelor of Business Management Degree under
the supervision of Mr. Yadap Chandra Neupane.

………………
Himal khadka
Nepal Mega College
Babarmahal, Kathmandu
 iii

APPROVAL LETTER

This is to certify that the internship report

Submitted By:
Himal khadka
Exam Roll Number: 4829/19
T.U. Registration Number: 7-2-266-60-2019

Entitled:
“CUSTOMER SERVICE DEPARTMENT OF PRABHU BANK”

I certify that I have read this document and in my opinion it is satisfactory in scope and
qualify as internship project report in partial fulfillment for the undergraduate course of BBM
program held in Nepal Mega College, Faculty of Management, Tribhuvan University.

…………………………..
Yadap Chandra Neupane
Supervisor
Date: Month Day, Year
 iv

RECOMMENDATION LETTER

This is to certify that the Internship Report

Submitted By:
Himal khadka
Exam Roll Number: 4829/19
T.U Registration Number: 7-2-266-60-2019

Entitled
“CUSTOMER SERVICE DEPARTMENT OF PRABHU BANK LIMITED”

Has been prepared and approved by this campus. This internship report is forwarded for
further examination.

……………………………
Madhukar Pandey
Vice-principal
Nepal Mega College, Babarmahal
 v

EVALUATION LETTER
 vi

ACKNOWLEDGEMENTS

This internship report entitled Customer Service Department of Prabhu Bank Limited has
been prepared in partial fulfillment of the requirement for the degree of Bachelor of Business
Management.
Furthermore, I would like to express my deep gratitude to Prabhu Bank Limited for providing
me this opportunity to be with them and giving me guidance and opportunity to move ahead
with internship objectives.
I would like to extend my gratitude to Madhukar pandey and yadap Chandra neupane for giving
me the responsibility to prepare this report along with their guidance, valuable advice,
continuous encouragement and motivational support. I would also like to extend my sincere
gratitude to Rupa chalisae the branch manager of the Chabahil Branch along with Pooja
Pokharel , sushil bhattrai and all the other staff members for supervising and instructing me at
work.
Finally, I would like to thank to my parents for their never ending love and support. I am also
greatly indebted to my friends who were a helping hand in the preparation of this report. I offer
my regards to all of those who supported me in any regard during the completion of the report.
Sincerely,

……………..
Himal khadka
September, 2024
 vii

TABLE OF CONTENTS

STUDENT’S DECLARATION ...................................................................................................ii

APPROVAL LETTER ............................................................................................................... iii
RECOMMENDATION LETTER ............................................................................................... iv
EVALUATION LETTER............................................................................................................. v
ACKNOWLEDGEMENTS ........................................................................................................ vi
LIST OF TABLES....................................................................................................................... x
LIST OF FIGURES ................................................................................................................... xi
ABBREVIATIONS .................................................................................................................... xii
CHAPTER I ............................................................................................................................... 1
INTRODUCTION ..................................................................................................................... 1
1.1Background .................................................................................................................... 1
1.2 Objectives ..................................................................................................................... 2
1.3 Methodology ................................................................................................................. 2
1.3.1 Selection of organization .................................................................................................. 2
1.3.3 Duration ............................................................................................................................ 3
1.3.4 Activities Performed ......................................................................................................... 4
1.4 Limitations .................................................................................................................... 4
CHAPTER II.............................................................................................................................. 5
INTRODUCTION TO THE BANKING INDUSTRY.............................................................. 5
2.1 Meaning of Bank........................................................................................................... 5
2.2. Origin of Bank ............................................................................................................. 6
2.3 History of Banking of Nepal ......................................................................................... 6
2.4 Meaning of Commercial Bank ...................................................................................... 7
2.4.1 Functions of Commercial Bank ........................................................................................ 7
2.4.2 Role of Commercial Banks ............................................................................................... 8
2.4.2.2 Financing Trade ............................................................................................................. 9
CHAPTER III .......................................................................................................................... 11
INRODUCTION OF PRABHU BANK LIMITED ................................................................. 11
 viii

3.1 Introduction ................................................................................................................. 11

3.2 Vision .......................................................................................................................... 11
3.2 Mission........................................................................................................................ 12
3.4 Capital Structure ......................................................................................................... 12
3.5 Objectives ................................................................................................................... 12
3.6 Current Board of Directors of Prabhu Bank Limited.................................................. 13
Note: PBL, 2024 ............................................................................................................... 13
3.7 Organizational Structure of Prabhu Bank Limited ..................................................... 13
3.8 Management Team...................................................................................................... 15
3.9 Branches of Prabhu Bank Limited .............................................................................. 15
3.10 Major Products and Services .................................................................................... 16
3.10.1 Deposits......................................................................................................................... 16
3.10.2 Loan .............................................................................................................................. 18
3.10.3 Other Services ............................................................................................................... 19
3.10.4 Any Branch Banking Service (ABBS) ......................................................................... 20
CHAPTER IV .......................................................................................................................... 21
ANALYSIS OF ACTIVITIES PERFORMED AND PROBLEM SOLVE ............................ 21
4.1 Analysis of Activities Performed ................................................................................ 21
4.1.1 Account Opening ............................................................................................................ 21
4.1.2 Dealing with customer ............................................................................................. 22
4.1.4 Issuing Cheque Books..................................................................................................... 22
4.1.5 Filing KYC Form ............................................................................................................ 22
CHAPTER V ........................................................................................................................... 25
CONCLUSION AND LESSON LEARNT ............................................................................. 25
5.1 Conclusion .................................................................................................................. 25
5.2 Lesson Learnt ..................................................................................................................... 25
References ................................................................................................................................ 27
Appendix A .............................................................................................................................. 28
Appendix B .............................................................................................................................. 29
ix
 x

LIST OF TABLES
Table 3.1 Capital Structure………………………………………………………………...12
Table 3.2 Board Members of Prime Commercial Bank Limited…………………………..13
Table 3.3 Management Team of Prabhu Bank Limited……………………………………15
 xi

LIST OF FIGURES

Figure 3.1 Organizational Structure of Prabhu Bank Limited…………………….14

 xii

ABBREVIATIONS

A/C : Account
ABBS : Any Branch Banking Service
ATM : Automated Teller Machine
BBA : Bachelor of Business Administration
CD : Certificate of Deposit
CSD : Customer Service Department
F.Y. : Fiscal Year
FD : Fixed Deposit
KY : Know Your Customer
NRB : Nepal Rastra Bank
PAN : Permanent Account Number
PBL : Prabhu Bank Limited
PMT : Prabhu Money Transfer
PT : Prabhu Technology
SMS : Short Message Service
 1

CHAPTER I

INTRODUCTION

1.1 Background

An internship is a form of job-based learning opportunity intended for people who want to gain
practical experience in a particular field of work. It entails working in the field of your choice
for a career. It provides the students with an opportunity to experience something worthwhile
and to learn about the corporate world.
The goal of Tribhuvan University is unique semester-based Bachelor of Business Management
(BBM) program is to produce management professionals who are creative, socially conscious,
and goal oriented, capable of handling middle level managerial roles in the quickly expanding
business sector both domestically and internationally. The curriculum provides real-world
knowledge, abilities, and skills needed to succeed in business internationally.
The primary goal of the internship part of the BBM program is to strengthen the theoretical
information students have already acquired with a combination of real-world experience. This
internship program offered the chance to put the academic side of education and learning to
use in real-world situations.
An internship fosters the growth of an intern’s self-esteem, professional demeanor, social
responsibility and interpersonal skills, among the other things. Students that participate in
internship’s gain strong collaboration abilities, which are essential in an organizational setting.
During my internship, I gained invaluable practical experience in handling customers,
addressing their concerns, and responding to their inquiries about the bank and its offerings. It
was quite difficult to be a accountable for the work. Understanding the many organizational
structures and how they operate, as well as learning about customer behavior and staff
member’s capacity to deal with a range of client’s requirements and desires were among the
internship program’s most significant learning experiences.
The intern of this report chooses to work with Prabhu Bank. The intern was much interested to
lean about a service industry. The interne specially chooses to learn about the emerging trend
of bank assurance services provided by the banks. Being a new service in Nepal, it is a topic
not studied before. The intern wanted to study about current service provided by Prabhu,
whether the customers are satisfied or not. And what additional service would be valued by the
customers, and how a Prabhu build an edge to capture the bank assurance service market. After
the completion of the internship, it is mandatory for the students to submit a report based on
 2

the experience gained and knowledge of the institution. This report is based on the internship
done in Prabhu Bank Limited at chabahil branch, 8 week period began from 10th june, 2024 to
5th august, 2024. As an intern, it was privilege to perform various activities in Customer Service
Department (CSD) of Prabhu Bank, chabahil Branch,

1.2 Objectives

The internship provides the opportunity for the practical exposure of theoretical knowledge.
The general objectives of the internship program were to enable the student is to transform the
academic knowledge learned for the years into the practical real life world. Beside this
internship program helps to provide the insights on the organization working culture, its
structure, and risk associated with it and how to deal with such complexity or risk. In addition,
it helped to developed report writing skills. Others objectives of internship are listed below:
 To identify the various products and services of Prabhu Bank Limited.
 To develop interpersonal relations in the working environment.
 To analyze the importance of various departments and their roles in the banking sector.
 To retain existing customer and in addition attract new customers.
 To develop and enhance communication skills.

1.3 Methodology

This study has followed the descriptive method. The information is collected through
observation, interview and analyzed accordingly. Completion of the internship is a combination
of different types of activities. It starts from the selection of the organization for the internship,
performance of different kind of activities and placement in different parts of 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 sources has been used. Primary
sources include observation of the working environment, direct interaction with customers,
interaction with staffs atr different levels of bank and personal experience and involvement in
operation conducted and information accessed. Secondary sources include annual report and
brochure of Prabhu Bank limited, website of Prabhu Bank, publications, and journal.

1.3.1 Selection of organization

The organization join fit and employee organization fit us always the basis of every selection
process. Selection of the organization for the internship program is always a crucial; task
because success in the fulfillment of the objectives of the internship complete depends on the
 3

type of the organization that has been selected, The intern need to select organization which
would help them to learn various aspects in the working environment, build up the confidence
level, and develop the interpersonal skills. As being BBM student and having specialization in
entrepreneurship, it was cruces; and difficult task to select the sector in which intern can do
internship. As intern was more interested in doing internship in a marketing agency and to
select the best institutions was too tough job. Then as bank was a good option to use intern
theoretical knowledge that intern have gained from different sources during three and half years
of campus and to broaden intern spectrum of knowledge about the baking, business and
financial sector. So, intern selected Prabhu Bank Limited for doing internship as it was largest
commercial bank in private sector which follows standard business procedure and contains
good organization culture. Intern thought that would give an opportunity to realize theoretical
knowledge into practical field.
In this competitive market only by our choice it’s not easy to get interns in reputed organization.
College provided recommendation letter which intern dropped in the branch office of Prabhu
Bank along required documents to the operation In charge (OI) and intern was assigneed.
Operation InCharge (OI) and as per requirement intern was placed in Customer Service
department (CSD) under the supervision of CSD head Mrs. Pooja Pokharel. Intern was required
to handle all the activities of the department under the guidance and supervision of CSD head.
The intern was kept in CSD for whole duration of the internship. In their department, intern
got an opportunity to deal with the customer in real environment. Intern learnt to open their
account, check their balance, issuing cheques and their banking transactions statement and
other activities related to its department. In addition, the other staffs were equally cooperative
and helped to learn the activities of the department.

1.3.3 Duration

The duration of internship has been defined for eight weeks or six credit hours of working time
at the organization by FoM, TU. Therefore, in order to fulfill these requirements, internship
was done for eight week period from 10a.m to 5:30 p.m. on each working day expect for Friday,
Intern worked the entire period in CSD and the bank had monitored the activities and
performance. This internship program has been very fruitful for the intern to get real life
experiences of the baking activities and was able to develop knowledge, build up confidence
level and develop interpersonal and communication skills and it will definitely help an
upcoming days. The eight week of internship period as positioned in chabahil branch.
 4

1.3.4 Activities Performed

Throughout the internship, the intern was able to participate in several departmental activities.
The intern spent the first 2-3 days learning form the chabahil branch personnel. After learning
this, the intern worked at the customer service counter, providing customers with a variety of
information. Dealing with customer’s various issues and questions was the main responsibility
of the customer service department. The intern was expected to give them general baking
information, such as perquisites for opening a new account, how to file different forms and
assistance filling out various vouchers and forms. The intern was not permitted to operate the
system since the bank has granted restricted access. Thus, interns primarily have time for
administrative tasks. The following were the works performed in Prabhu Bank during
internship:
 Scanning of the various documents, bills of the account department.
 Filling up of vouchers, forms and documents.
 Cheque writing and issuing the cheque to the customer.
 Handling telephone calls
 Handling customer’s queries and provide information through call and in person.
 Opening and closing of accounts.
 Entering the record in register of credit card, debit card and cheque receipts.
 Make calls to customers to collect their debit cards and cheques.
 Updating KYC form.
 Providing different kinds of forms to customers Such as Account Opening Form,
Account Closing Form, Account Activation Form, Debit Card, Mobile Banking Form,
and SMS banking Form etc.

1.4 Limitations

Interns in the banking sector can face several limitations, which can vary depending on the
institution, the nature of the internship, and the regulatory environment. Here are some the
limitations that intern faced during her internship:
 The bank employees were too busy with their own duties to spend much time
interacting with the intern.
 Since the majority of the data is gathered through observation and firsthand experience,
it does not provide a detailed overview of how the bank operates generally.
 Due to the 8-week internship period, a thorough investigation was not feasible
 5

CHAPTER II

INTRODUCTION TO THE BANKING INDUSTRY

2.1 Meaning of Bank

The financial intermediary known as a bank is responsible for receiving deposits and allocating
them towards lending activities, either directly or via capital markets. The Italian term banca
or the French word banque, both of which imply bench, are the sources of the bank word.
A bank is a type of financial institution that offers a way for people to send money to each other
quickly. A bank is a financial intermediary that has a government-issued license to do financial
business. Its main financial operations are borrowing and lending. It obtains credit by taking
deposits made on current accounts, accepting term deposits, and issuing debt instruments like
bonds and bank notes. It extends credit by investing in marketable securities, granting
installment loans, and making advances to clients on existing accounts. Financial institutions
known as banks take deposits of money that must be repaid quickly or on demand. A bank is
an establishment whose main business is the gathering of public funds that are momentarily
idle with the intention of transferring them to others for use as collateral.
A bank is a type of financial organization that gets money by accepting deposits from customers
and then lending that money or deposit to others at a profit. Put otherwise, the institution
collects a higher fee for loans than it does for deposits. Because they offer essential services to
both consumers and companies, banks play a significant role in the economy. As providers of
financial services, they offer clients a secure location to keep their cash. One can carry out
standard banking operations including deposits, withdrawals, check writing, bill payment, and
much more through a range of account types such savings accounts, fixed deposits, etc. Banks
offer both individuals and businesses credit options. This boosts the nation's economic activity,
creating jobs and contributing to the nation's economic expansion.
 6

2.2. Origin of Bank

Italy is where the current financial system was first developed. The first bank, known as the
Bank of Venice, was founded in Venice, Italy, in 1157 AD with the purpose of providing
financial support for the monarchy during conflicts. It is stated that at first, moneylenders in
Northern Italy operated out of public spaces, with each lender using a bench or table for
business. The ancient temples in Egypt, Babylonia, and Greece used a basic type of banking
where they borrowed money at high interest rates in exchange for the gold and silver stored for
safekeeping. A significant advancement in the banking industry was the founding of the Bank
of England in 1694. With the passage of the Banking Act in 1833 AD, which allowed for the
creation of commercial banks in the form of Joint Stock Companies, modern commercial
banking institutions were created. Modern banking is necessary because there has been no
increase in the circulation of notes. Following the founding of commercial banks under the
company act in the world's most industrialized nations, the current banking system reached its
complete development in the 19th century.

2.3 History of Banking of Nepal

Financial transactions took place in Nepal long before the establishment of a present bank,
according to historical records. An important historical example of primitive banking
operations is discovered in the years 880–897 AD. At that time of year, Shan Khadara, a well-
known trader in Nepal, succeeded in paying off all of the nation's outstanding obligations. In
celebration of this joyous occasion, he instituted a new year known as "Nepal Sambat." Based
on the material that is currently available, Guna Kama Dev borrowed money to rebuild
Kathmandu in 723 AD. The list was classified by Jayasthithi Malla, the ruler of Kantipur,
towards the end of the 11th century and featured people who dealt in money, or "Tankadhari."
Tankadhari were permitted to conduct financial transactions. The modern banking in Nepal
started with the establishment of Nepal Bank Limited. His majesty King Tribhuvan inaugurated
Nepal Bank Limited on November 15, 1937 AD.
Nepal Bank Limited is the first bank of Nepal and was formed as the joint venture between the
government and the private sector. The bank was the only financial institution of the country
until the formation of Nepal Rastra Bank in 1956 AD. In 1956 AD, Nepal Rastra Bank was
founded in accordance with the NRB Act 1955. Following the NRB's founding, three financial
institutions were created and given full government ownership. They were Rastriya Banijya
Bank (RBB) in 1966, Nepal Industrial Development Corporation (NIDC) in 1959, and
 7

Agriculture Development Bank (ADB) in 1968.Following Nepal's financial deregulation in the

1980s, Nepal Arab Bank Ltd. (now NABIL Bank Ltd.) was established in 1984 AD as the
country's fourth commercial bank and the country's first foreign joint venture bank. In Nepal,
there are currently 90 microcredit development banks, 24 development banks, 22 financial
firms, and 27 commercial banks. The monetary, regulatory, and supervisory body of Nepal is
the Nepal Rastra Bank. (Gyan, 2022)

2.4 Meaning of Commercial Bank

A commercial bank is a type of financial organization that takes deposits from the general
public and extends loans for both personal use and profitable investments. The transfer of
financial resources from savers to consumers is the main purpose of commercial banks, one of
the key financial intermediaries. These banks were founded with financial gain in mind. They
offer the greatest variety of activities and a substantial financial supply. Commercial banks
make their majority of their money from the gap between the interest rates they charge on loans
and the rates they allow on deposits, letter of credit, loans, locker facility and so on, they carry
out a number of tasks. With the exception of banks founded for a particular purpose, such as
development banks, cooperatives etc., commercial banks are those that are created to carry out
commercial operations. There are currently 27 commercial banks in the nation due to s steady
increase in the number of commercial banks throughout the years. There are now more
commercial banks, which has led to more competition between them.

2.4.1 Functions of Commercial Bank

Commercial banks provide various services to its customers. Some of the major functions of
commercial banks are as follows:
2.4.1.1 Accept Deposits
The first and foremost important functions of commercial bank are to accept deposits from
customer under various accounts. It operates fixed deposit, saving and current account to
provide different banking services to its customers.
 Current Account: This account enables customers to withdraw money at any time period
depending on their requirements. Generally, no interest is allowed to the customers in the
deposit of current account. It is mostly suitable for business organizations.
 Saving Account: This account contains the functions of both fixed and current accounts.
There are no restrictions in withdrawal or deposit. But such withdrawa; facility is limited.
A saving account is more suitable for individual.
 8

 Fixed Deposit Account: Under this account, amount is deposited in the bank for fixed
period for time. Bank allows highest rate of interest to this account and the interest rate
fluctuates depending on the time period for the deposit.
2.4.1.2 Provide loans
Another critical function of a commercial bank is to offer loans and advances to the
entrepreneurs and business people and to collect interest. For every commercial bank, it is the
primary source of profit. In this process, a bank retains a small number of deposits as a reserve
and offers the remaining amount to the borrowers in demand loans, overdraft, cash credit and
short run loans.
2.4.1.3 Credit Creation
Credit creation is one of the most important functions of the commercial banks. In order to earn
profit the bank accepts deposits and advances loans by keeping small cash in reserve to meet
day to day needs of the customers. When a bank gives loan, it opens an account in the name of
the loan taker and does not pay him in cash but allows him to draw the money according to his
requirements according to his requirements. By granting a loan, the bank creates credit or
deposit.
2.4.1.4 Financing Foreign Trade
A commercial bank helps in foreign trade by financing customers and by accepting foreign
bills of exchange according to the directions of the central bank. This function helps in
promoting the foreign trade of the county.
2.4.1.5 Transfer of Funds
Commercial banks are able to transfer funds of a customer to other customer’s account through
cheques, drafts, mail transfers, telegraphic transfers and so on.
2.4.1.6 Agency Functions
In modern time, commercial banks also act as an agent of the customer. However, banks charge
fee or commission for these functions. Some of these functions are collection of cheques, bills
and drafts, collection of interest, payment of interests, installment of loans, purchase and sale
of securities etc.

2.4.2 Role of Commercial Banks

Besides performing the usual commercial banking functions, banks in developing countries
play an effective role in their economic development. The majority of people in the country are
poor, unemployed and engaged in traditional agriculture. There is an acute shortage of capital
 9

in the country. People lack initiative and enterprise. Means of transport are underdeveloped.
Industry is mostly depressed and lack advance technology to compete against foreign products.
The commercial banks help in overcoming their obstacles and promote economic growth and
development. The roles of commercial banks are as follows:
2.4.2.1 Financing Industry
The commercial banks finance the industrial sector in a number of ways. They provide short
term, medium and long term loans to industry. In Nepal, the commercial banks undertake short
term and medium term financing of small scale industries and also provide hire purchase
finance. Besides, they not only provide finance for industry but also help in developing the
capital market in the county.

2.4.2.2 Financing Trade

The commercial banks help in financing both internal and external trade. The banks provide
loan to retailers and wholesaler to stock goods in which they deal. They also help in the
movement of goods from one place to another by providing all types of facilities such as
discounting and accepting bills of exchange, providing overdraft facilities, issuing drafts and
so on. Moreover, they finance both exports and imports of developing countries by providing
foreign exchange facilities to importers and exporters of goods.
2.4.2.3 Financing Agriculture
The commercial banks help the large agricultural sector in the country in a number of ways.
They provide loans to traders in agricultural commodities. They open a network of branches in
rural areas to provide agricultural credit. They provide finance directly to agriculturists for the
marketing of their produce, for the modernization and mechanization of their farms, for
providing irrigation facilities, for developing land etc. They also provide financial assistance
for animal husbandry, dairy farming, sheep breeding, poultry farming and horticulture.
2.4.2.4 Financing Consumer Activities
People in underdeveloped countries being poor and having low incomes do not possess
sufficient financial resources to buy durable consumer goods and services. The commercial
banks advance loans to customers for the purchase of such items as houses, scooters, fans,
refrigerators, etc. In this way they also help in raising the standard of living of the people in
Nepal and many such countries by providing loans for consumption activities.
2.4.2.5 Financing Employment Generation Activities
The commercial banks finance employment generating activities in developing countries. They
provide loans for the education of young children studying in engineering, medical science and
 10

other vocational institutes of higher learning, they advance loans to young entrepreneurs,
medical and engineering graduates and other technically trained persons in establishing their
own business. Such loan facilities are being provided by a number of commercial banks in
Nepal .The banks not only help human capital formation but also in increasing entrepreneurial
activities in the country. This helps in improving the employment rate in the country which is
turn increases economic activity in the country.
2.4.2.6 Helps in Monetary Policy
The commercial banks help the economic development of a country by faithfully following the
monetary policy of the central bank. In fact, the central bank depends upon the commercial
banks for the success of its policy of monetary management in keeping with requirements of a
developing country.
Thus the commercial banks contribute much to the growth of a country by granting loans, trade
and industry, by helping in physical and human capital formation and by following the
monetary policy of the country.
 11

CHAPTER III

INRODUCTION OF PRABHU BANK LIMITED

3.1 Introduction

Prabhu Bank Limited is a commercial bank in Nepal. The bank is an ‘A” class commercial
bank licensed by Nepal Rastra Bank and has branches all across the nation with its head office
in Kathmandu which provides entire commercial banking services. The bank’s shares are
publicly traded as an ’A’ category company in the Nepal Stock Exchange. The bank has been
maintaining correspondent relationships with various international banks from various
countries to facilitate trade, remittance, and other cross border services. Through these
correspondents, the bank is able to provide services in any major currencies in the world. 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
Limited, Kist Bank Ltd, Prabhu Bikash Bank Ltd, Gaurishankar Development Bank Ltd and
Zenith Finance Ltd, 2016, attaining the status of ‘A’ class financial institution licensed and
regulated by the central bank of Nepal, Nepal Rastra Bank. The Bank has completed years of
journey since the inception and has accommodated seven different financial institutions in its
making.

As the leading banking and financial services group in Nepal, the Bank will be there where
growth is, connecting customers to the opportunities, enabling business to thrive and
economies to prosper and ultimately helping people to fulfill their hopes and realize their
ambitions. The Bank offers the full range of banking and investment services for personal and
corporate customers, backed by the team of highly motivated, young and dynamic
professionals. One of the bank’s primary objectives is to reach out to the common people with
a host of helpful products and services that will assure their future prosperity. Over a very short
period of time, the bank has achieved a significant degree of success in executing this objective
thereby creating a substantial base of loyal customers. Prabhu Bank believes that a bank is only
successful when its customers are successful. Prabhu Bank Limited is able yo record a net
profit of 2.60 billion during the fiscal year of 2078/2079.
3.2 Vision

The vision of Prabhu Bank Limited is to support individuals, families and businesses to attain
financial independence and improve their financial well-being.
 12

3.2 Mission

To become the leading commercial bank in Nepal by providing the finest quality financial
products and services to our customer, enhance our shareholder’s value; contribute to the
economic prosperity of the country and to create continuous learning and growth opportunities
for our people.
3.4 Capital Structure

Capital structure refers to the particular combination of debt and equity used by a company to
finance its overall operations and breakdown of its components are given below:
Table 3.1
Capital structure (As on……….)

Core Capital Tier I Amount (Rs)

Paid up capital 23,542,489,832

Statutory General Reserve 4485,860,782
Retained Earnings 166,546,942
Unaudited Current Year Profit -
Total Core Profit 28,191,897,556
Note: PBL, 2024
Table 3.1 shows the components of capital structure represent the bank’s equity and general
reserve funds, providing a cushion against potential losses.

3.5 Objectives

The objectives of the bank are to provide banking services throughout the country and to
contribute in the socio economic development of the country. The major objectives of the bank
are as follows:
 To reach out to the common people with a host of helpful products and services that
will assure their future prosperity.
 To create a well-run, customer-focused organization with a solid structure for corporate
governance that is driven by the market.
 To adhering to strict risk-control protocols.
 To maintaining the highest standards in all interactions with suppliers, consumers, the
environment, and the community.
 13

3.6 Current Board of Directors of Prabhu Bank Limited

There are currently 6 members as Board of Directors in Prabhu Bank Limited as presented in
the given table below.
Table 3.2
Board member

Board of Directors Position

Lila Prakash Sitaula Chairman
Angir Man Singh Director
Tara Manandhar Director
Koshor Jung karki Director
Avishek Bajracharya Director
Brikha Bahadur Basnet Director
Note: PBL, 2024

Table 3.2 shows the independent directors who collectively guide the bank’s corporate
governance, risk management and financial oversight.

3.7 Organizational Structure of Prabhu Bank Limited

An organization structure defines how activities such as allocation, coordination and

supervision are directed towards the achievement of an organizational aims. 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 ban which formulated 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 departments in its head office and five
regional Training Center with residential facilities in five development regions.
 14

BOARD OF
DIRECTORS

CHIEF EXECUTIVE
OFFICER

OPERATIONS CONTROLS ADMIN &

& RISK OTHERS

CORPORATE RETAIL ASSET TREASERY RISK FINANCE INTERNAL

CREDIT BANKING MANAGMEN MANAGEMENT AUDIT
T

GENERAL LEGAL IT CONTRACT & ADVERTISING HR &

SERVICES
PROPERTY &PUBLICATION TRAININ
S G

Figure 3.1: Organizational Structure, PBL, 2024

Figure 3.1 shows a hierarchical arrangement with a Board of Directors at the top, overseeing
overall governance and strategic direction. CEO who manages day-to-day operations with the
help of heads of various departments.
 15

3.8 Management Team

The management team of a banking sector comprises key executives responsible for strategic
decision-making and overseeing operations. It includes the CEO, who leads the organization;
chief risk officer who handles risk management and other similar crucial roles are Senior
Deputy Officer, Chief Recovery officer, Chief Audit officer, Chief Business Officer Etc.

Table 3.3
Management Team (As on………)

Management Team Position

Ashok Sherchan Chief Executive Officer
Manoj Neupane Senior Deputy CEO
Mani Ram Pokharel Deputy CEO
Niraj Lamsal Chief Recovery officer
Renu Prasad Pandey Chief Audit Officer
Rajesh Bhandari CEO’s Office
Deepesh Pradhan Chief Risk Officer
Rashmi Pant Chief Business officer
Lekh Bahadur Pun Chief Business Center Officer
Riwas Shrestha Chief Credit Officer
Sugen Shakya Chief Global Market Officer
Note: PBL, 2024
The table 3.3 consists of senior executives responsible for the day-to-day operations and
execution of the bank’s strategy.

3.9 Branches of Prabhu Bank Limited

The head office of Prabhu Bank Limited is located in Babarmahal, Kathmandu. There are a
total of 56 branches of the bank within the Kathmandu valley whereas there are a total of 159
branches of the bank outside the Kathmandu valley meaning the bank has a total of 215
branches all over the country. The intern did her internship from Kapan branch in Kathmandu.
 16

3.10 Major Products and Services

The bank provides various different products and services like accounts options like saving and
fixed deposit accounts to e-banking, ATM card facilities and many more. Some of the major
products and services provided by the bank are as follows:

3.10.1 Deposits

The different types of saving in Prabhu Bank Limited are as follows:

2.10.1.1 Normal Saving
All individual can apply for normal saving. It has special features like minimum balance of
NPR 1000, Competitive interest rate and facility of debit card, Mobile banking and e-banking
facility. For normal saving specific requirements need to be fulfilled. For instance; Duly filled
Account Opening Application, Copy of valid ID card (Citizenship/ Driving License/Voter ID
etc.), recent Passport size photograph, address certification documents)
2.10.1.2 Special Saving
All individuals can apply for special saving. It has special features like individual can with zero
balance, competitive interest rate, 50% waiver on Debit card issuance charge, 50% waiver on
Mobile banking Registration charge, free cross-branch cheque issuance charge, free ABBS
charge up to the transaction of NPR 1 million. The requirements for this saving is duly filled
account opening application, copy of valid ID card, recent passport size photograph, address
certification documents.
2.10.1.3 Welcome Saving
All individuals can apply for special saving. It has special features like individual can with zero
balance, competitive interest rate, , 50% waiver on Mobile banking Registration charge, free
ABBS charge up to the transaction of NPR 1 million. The requirements for this saving is duly
filled account opening application, copy of valid ID card, recent passport size photograph,
address certification documents.
2.10.1.4 Salary Saving
Salaried individuals can only apply for salary saving. . It has special features like individual
can with zero balance, competitive interest rate, 50% waiver on Debit card issuance charge,
50% waiver on Mobile banking Registration charge, free e-Banking registration, free ABBS
charge up to the transaction of Rs 1 Million, 50% waiver on locker annual fee and many more
discounts on other charge.
 17

2.10.1.5 Khutruke Saving

Minors can only for this saving. . It has special features like minimum balance of NPR 1000,
Competitive interest rate. The requirements for this saving is duly filled account opening
application, copy of valid ID card, recent passport size photograph, address certification
documents.
2.10.1.6 Goodluck Saving
Students, employees, owners of college or university are eligible for this saving. The
requirements for this saving is duly filled account opening application, copy of valid ID card,
recent passport size photograph, copy of student/ employee ID card, address certification
documents. It has special features like individual can with zero balance, competitive interest
rate, 50% waiver on Debit card issuance charge, 50% waiver on Mobile banking Registration
charge, free e-Banking registration, free ABBS charge up to the transaction of Rs 1 Million,
DEMAT and Meroshare Online Registration free for 1st year, Rs 100 bonus to the account and
many more discount on other charge.
2.10.1.7 Foreign Unnati Savings
Migrant workers are eligible for this saving. Minimum balance, competitive interest rate,
account can be opened for abroad etc. are the special features of this saving. The required
documents for this saving are duly filled account opening application, copy of Visa/Passport
and other valid ID, recent passport size photograph.
2.10.1.8 Aashirbad Savings
Beneficiary of remittance are eligible for this saving. Minimum balance, competitive interest
rate, account can be opened for abroad etc. are the special features of this saving. The required
documents for this saving are duly filled account opening application, copy of Visa/Passport
and other valid ID, recent passport size photograph.
2.10.1.9 Fixed Deposit
All individuals can apply for special saving. The requirements for this saving is duly filled
account opening application, copy of valid ID card, recent passport size photograph, address
certification documents. It has special features like minimum amount for fixed deposit must be
NPR 5000, competitive interest rate and tenure of 3 months and above.
 18

3.10.2 Loan

There are various types of loans can be discussed as below:

3.10.2.1 Home Loan
This loan is provided to individuals who want to purchase land, land and building and to
construct residential buildings. Prabhu Home Loan is a term loan, designed to cater to the
personal financing needs of salaried individuals, self-employed, professionals and business
owners for the above.
3.10.2.2 Education Loan
Prabhu education loan has been designed to meet the aspirations of students for completion of
their studies both in and out of the country. Pabhu education loan scheme provides loan for
those students to demonstrate ability, drive and ambition but do not have the financial resources
to pursue higher studies.
3.10.2.3 Loan against Property
Prabhu loan against property has been designed to meet the short an long term financial
requirements of salaried individuals, self-employed, professionals and owners of small family
businesses. Such individuals can avail required loan as personal overdraft and term loan based
on the value of their real estate property and repayment capacity.
3.10.2.4 Loan against share
Prabhu loan against share has been designed to meet the short term financial requirements of
individuals against pledging of dematerialized shares in favor of Bank.
3.10.2.5 Vehicle Loan
Vehicle loan (Auto and Hire purchase) scheme has been designed with a view to fulfill the
dreams of professionals, self-employed and business executive who wish to own a vehicle
following a simple process. Under this product, loan facility is provided to purchase new/used
vehicles as well as for commercial purpose.
3.10.2.6 Personal Loan
Prabhu Bank is providing various types of other personal loans (i.e. Professional Loan,
Agricultural Loan etc.) to meet the financial requirements of individuals.
 19

3.10.3 Other Services

3.10.3.1 ATM Facility

The bank offers its account holder’s access to ATMs. Customers receive Visa debit cards with
PINs (Personal Identification Numbers) to ALLOW 24/7 ATM access. The bank offers a
number of ATM services, including quick cash, statement or balance inquiries, and cash
withdrawals.
3.10.3.2 Locker Facility
Customers of the bank can also use the locker services. Individuals who possess valuable like
as gold, silver, documents, etc., can utilize the bank’s locker service, which offers adequate
room and a unique coded ley for safety.
3.10.3.3 Remittance
Prabhu Remit is one of the prominent services of the bank through which bank is delivering
the fund transfer services for overseas migrant workers and Nepalese residing in overseas.
Similarly, domestic transfer services are also delivered within the country. “PRABHU REMIT”
service provides international fund transfer services where bank has also promoted the
“REMITTER”, “RECEIVER” to open the bank account with Prabhu Bank Limited. Prabhu
REMIT has tie-up with Prabhu Money Transfer for the payment of remittance through their
network within the country. PRABHU REMIT is a brand amongst the Nepalese residing in
overseas. Bank has tie ups with exchange houses, remittance service providers and banks in
Australia, Canada, Cyprus, Georgia, India, Japan, Kingdom of Saudi, Kuwait, Malaysia, Oman,
Qatar, South-Korea, UAE, United Kingdome (UK) and United State of America (USA) for
remittance services. It has 31 international remittance partners.
3.10.3.4 Mobile Banking
Prabhu Mobile Banking is an easy and handy method for hassle free banking transaction rom
mobile devices. For making any transaction, Prabhu Mobile Banking application needs to be
installed to your mobile phone which is available in Play store for android users and App store
for IOS users. Prabhu Mobile Banking has the duel channel accessibility i.e. Internet or SMS
as per your convenient.
 20

3.10.4 Any Branch Banking Service (ABBS)

With this feature, bank customers can manage their accounts from any branch location.
Consumers can access any information from any bank location, as well as deposit and withdraw
money.
3.10.4.1 Credit Card
Credit card is a payment card with the option of making a purchase on credit as ‘spend Now
Pay Later’. Prabhu Bank is providing this service associating with VISA International. Prabhu
Credit Card enables wider access to ATMs and Pos terminals and enjoys greater convenience
to facilitate your financial needs.
 21

CHAPTER IV

ANALYSIS OF ACTIVITIES PERFORMED AND PROBLEM SOLVE

4.1 Analysis of Activities Performed

In a bank there are several departments each with their own functions. Every department is
equally important for operation of day to day activities. Having several departments the intern
was placed to CSD as per their requirements. CSD is the most important department in the
bank as customer first contact in this department for their queries. Prabhu bank as pioneer in
banking product and services is regarded as the best in matter of customer services, to hold
grievances and to answer customer queries in a most effective manner. Every customer who
visits bank doesn’t come to open the account at first. They want to know about the product and
services offered by the bank. During customer visits its CSD staff responsibility to tell,
convince and encourage the customer to buy their product and services. Many customers feel
difficult to follow the lengthy procedures and they go in search of alternative one and to stop
from It., its CSD staff responsibility to make them easy while availing their product and
services. The success of any bank depends upon how fast their customer service is and how
CSD staff speak with customer. Today, many banks have made the slogan serve and speak
customer with smiley face and make your customer happy. The primary objectives of CSD are
to disseminate the information, listen and handle customer grievance and build customer
relationship. The major activities performed at CSD activities are as follows:

4.1.1 Account Opening

One of the crucial jobs done in the customer service division is opening accounts. Before
obtaining financial services, a client must open a bank account. The terms and conditions for
each kind of account that a financial institution offers are established by the institution itself
and are categorized into widely recognized types such saving accounts, current accounts, loan
accounts, etc. Customers receive an account number when their account is opened. A series of
numbers that represent a customer’s identity at a bank is called an account number. Birth
certificate and citizenship of guardian is required for minor account and for individual
citizenship and valid document is required.
 22

4.1.2 Dealing with customer

Direct consumer interactions take place in the customer services department. The intern was
tasked with listening to the complaints and questions from the clients and coming up with
suitable answers. Consumers may have a variety of questions, including those about creating a
new account, terminating an existing an existing one, or requesting information on cardholders
and other services.
4.1.3 Handling Telephone Calls
Taking and returning phone calls is another important duty carried out in the customer service
division. Customers were typically called to update their KYC forms and provide their financial
details. The intern was also entrusted with calling consumers to initiate the inactive account; in
order to activate the bank accounts, the customers needed to bring a photo ID and proof of
citizenship.

4.1.4 Issuing Cheque Books

Customers of Prabhu Bank who create a new account with the bank within a day are given a
checkbook. Additionally, the intern worked in check inventory, which involved giving
customers new checkbooks and maintain their entries. And involved given a new cheque book
to existing customers after receipt of last slip of cheque book.

4.1.5 Filing KYC Form

Filing KYC form is method by which bank get data regarding the customer’s address and
identity. This procedure aids in preventing improper usage of the bank’s services. To store the
customer’s detailed information, a second KYC form must be completed according the NRB’s
instructions. Intern help customers to fill out the KYC form and provide necessary information
regarding it.
4.1.6 Photocopy, scanning and updating
Photocopy of original document is necessary in different work of bank so CSD staff take copy
of document him/herself. Scanning of document is another important work in CSD. Various
documents are scanned for backup purposes and to mail in respective department. At first
scanning of account opening document is also necessary to upload it in finacle. Scanning of
signature is also necessary to upload it in software.
4.1.7 Balance inquiry and banks statement dispatching
Customer visit for inquiring the balance in his/her account or in the account of person who
have issued the cheque.so, that she/he can make confirmation of sufficient balance availability
 23

for presenting the cheque. While telling the balance of account holder, Staff also makes
confirmation is that real account holder or not by checking signature, asking contact number,
family details etc. Account holder sometimes requires bank statement also which is used by
the CSD staff. The bank statement is provided as per the customer request of any time period.
If the customer wants statement twice then twenty rupees is charged during the period of my
internship.
4.1.8 Providing different forms and information
Except account opening form, different types of forms are provided to the customer. Mobile
banking form, credit card form, account statement form, balance certificate form, signature
change form, card captured form, mobile number change form, account activation are form etc.
are provided through CSD. If a person does not know to fill form, CSD staff assists to fill the
form.
4.1.9 Filing and Indexing
After the consumer fills out a number of forms, they need to be kept up to date. The intern was
assigned to file the various forms in a record file and process them so that they were saved in
tab pad in a sequential manner after completing the various forms, mobile banking forms, check
requisition slips, ATM forms, and demat account forms, among others. Maintaining the forms
in chronological order was crucial to preventing their loss or misplacing even though it was an
extremely time-consuming and backbreaking task.
4.2 Problem Solved
CSD and problems are not-detachable terms. One of the main functions of CSD is to solve the
problems. During the internship period, the following problems were solved.
 The CSD staff face daily is to manage the angry customer who had to face problem due
to malfunctioning of the ATM machine and the CSD officer clarifies the actual scenario
and apologizes if it is due to the fault of the machine otherwise pointed out the fault of
the customer.
 The system used by Prabhu Bank often stop which caused delay of the work of customers
and customers blame the staff for delay in the work which sometimes intern had to explain
about the system.
 Sometimes due to various reasons, the customer’s account would be debited twice for the
same charge or something similar to this occurs. Also, sometimes the ATM machine
doesn’t provide the cash but the account is debited. This and other kinds of system errors
 24

make the customer dissatisfied and hence the dissatisfied customer arrives at CSD and
this kind of problems are to be handled by the CSD officer and intern.
 An intern face difficult situation due to the malfunctioning of the SMS services as well
as the e-banking services. Customers do not know how to reset their device when they
forgot pin or password after requesting bank to reset it. So, intern has to solve that
problem by seeing the device themselves and provided form according to their problems.
 During peak hours, the bank became overcrowded with customers, making it challenging
to give prompt service. As a result, interns assisted bank staff members with minor tasks
like photocopying and paper working filing, freeing up time for them to concentrate on
more crucial work.
 Sometimes, customers unable to fill out information due to various reasons like lack of
Basic English, drawing map etc. In the form, intern had to fill out form a draw map by
asking to customers.
 In absence of staff during lunch time, an intern had to provide information regarding the
fixed deposit interest rate, charge related to debit cards and many more.
 25

CHAPTER V

CONCLUSION AND LESSON LEARNT

5.1 Conclusion

The opportunity to complete internship at such a reputed bank of Nepal was really a valuable
and unforgettable experience where there were several opportunities to learn and grow. The
internship made it possible to learn about the bank and about banking institution in general.
Especially, the services provided by the CSD and the activities that are performed there in came
to the knowledge. In customer service department, the intern had worked for eight weeks. It is
the place where most of the interns were placed for a longer period of time. The reason is there
comes more people for their various purpose like account open, getting their debit card and
cheque book, giving requisition slip for the new cheque book, renewal of debit card and fixed
deposits, for bank statements and e-banking etc. During internship what intern observed about
the product and services of the bank similarly must have good communication and
interpersonal skills as people of different nature arrive there. Some people don’t want to wait
for a minute; they want quick service, some want to get service first. So to manage all the issue
we must have good communication skills and interpersonal skill.
While concluding this report, the intern is intensely satisfied with the internship and its
outcome. The bank features cordial working environment which makes jobs easier to perform
since there always are other employees who are ready to support and help whenever needed.
The bank incorporated family-like environment where the presence of empathy among the
employees helps them to understand one another’s situation and provides suggestions on
banking as well as to receive the customers warmly, listen what they have to say and help them
in all possible ways. The bank is determined in delivering the best to the stakeholders in every
possible aspect and believes in mutual growth, which is reflected in its brand promise
“Together Ahead”. This experience will not only be beneficial today but also in the future when
the intern should work in the real life. The experience of internship was incredible which
boosted the confidence level and enhance interpersonal communication skills of the intern. It
developed interaction skills and shaped up personality too.

5.2 Lesson Learnt

The internship was an opportunity to learn several things that matter in corporate life as well
as in general life. Working in real life situation practically is not as simple as we think of. It
 26

requires high dedication, commitment and discipline. This internship program had helped to
transform in the positive way. Many things related to bank and banking was learnt by watching,
listening and doing. An opportunity to learn and do new things practically in the work place at
Prabhu Bank was a great experience. Some major learning’s and understandings acquired from
the internship program are as follows:
 During the first day, an intern learnt about the photocopy machine and scanning various
documents.
 One of the most important lessons an intern learnt during my internship is never
communicate with customer according to your mood, first of all analyze their way of
talking their gestures and talk to them according.
 One’s skill of communication, speech, body gestures, attire, punctuality and compliance
somewhat reflect how professional he/she is at his/her job. Therefore, one must maintain
professionalism while performing jobs to create positive impression of one and to win
trust of others.
 The most important things in an organization is work related skills or working skills.
Those with good working skills can take the organization to higher level and in return
can get rewards and personal achievements. Therefore, working skills are important for
both organizational goals and personal goals.
 Learned about the importance of communication and coordination among employees.
For instance, the approval of accounting opening must be approved by CSD staff and
Operation In charge. This shows the importance of coordination.
 Confidence is everything in CSD. During internship, an intern build confidence and able
to provide information to customers regarding different queries and also able to handle
telephone calls.
 27

References

 Thapa k .(2019). Banking Law & Regulation .Kathmandu: Khanal

Publication.

 Risal, N. & Poudel, S. (2020). Banking Law & Regulation. Kathmandu :

Samjhana Publication .

 WIX.COM, (2018) Banking history of Nepal. Retrieved from

https://blog365.wixsite.com/blog/single-post/2015/11/14/banking-in-nepal-
a- history-of-banking-system-in-nepal

 NRB, (2024) Monetary policy. Retrieved from

https://www.nrb.org.np/category/monetary-policy/

 PBL,(2024). Demat. Retrieved from https://www.prabhucapital.com/about-

us/who-we-are?tabKey=prabhu-capital

 PBL,(2024). Organizational Structure Retrieved from

https://www.prabhubank.com

 PBL,(2024). Board of Directors. Retrieved from

https://www.prabhubank.com/profile/department-heads

 PBL,(2024). Managemant Team. . Retrieved from

https://www.prabhubank.com/profile/our-leadership

 PBL,(2024). Prabhu Capital Retrieved from

https://www.prabhucapital.com/about-us/who-we-are?tabKey=prabhu-capital
 28

Appendix A

Internship Placement Letter

 29

Appendix B

Exam Admit Card