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CHAPTER 1

INTRODUCTION
1 Background of the Study
Every student gains the theoretical knowledge from the regular classes which is not so
easy to implement in real life settings of the organization. Bachelors Business
Administration (BBA) program is the blend of theoretical and practical knowledge,
five credit hours have been assigned for internship to blend the theoretical and skills
acquired in the classroom situation with the real setting of the organization.
Internship is a vital practical learning platform that every BBA student must undergo
in the final or eighth semester for eight weeks to relate the theoretical knowledge to
the practical exposures under real time scenario. It targets to train and prepare
students for managerial functions, develop students' interpersonal and communication
skills by encouraging them to interact with different types of people in the
organization.
However, internship is the requirement of BBA students for the partial fulfillment of
the total course. It helps interns to work as a trainee or lower level assistant in any
occupation to gain practical experience that one requires heavily. Thus, internship is
the first step of any graduating student that makes him/her eligible to compete in the
real world. This internship report covers an overview of general banking procedures
of Prabhu Bank Limited. Here, focus is made in knowing the framework and
guidelines of various departments and their working process. The study is at its layer
covering a department i.e. Customer Service Department.
CSD is a primary level department that generally deals with the customers directly.
This department is basically, directed towards providing the surface level assistance to
the customers. Surface level assistance regards to provide general information about
the banking system, product and services provided by the bank, providing the basic
materials like bank vouchers, forms, cheque book, bank statement, cards etc.

Customer Service is the front desk of any bank. It provides all information to
customers. For any bank it is the main and most important department which needs
to deal with customer more than any department in the bank.it is the very place which
makes an early impression to the clients. The image and reputation of the bank highly
depend upon the effective functioning of this department.
It is very important to know that highly satisfied customer becomes loyal and buys the
Banks new products, pay less attention to competing bank and less effective to price.
Having a significant number of this kind of customer is only possible through
efficient functioning of Customer service department (customer service department,
2012).
Customer Service Department can be operate more smoothly by using convenient
days and hours of operation, using new technology ,excellent online services,
providing customer service training to related department staff and by using other
techniques and equipment suitable for the respective department.

2 Objectives of the study


The objective of this report is to explain personal experience during internship period.
The main objective of this internship program was to fulfill the partial requirement for
the degree of BBA program. Internship program provides an opportunity to get into
the corporate world. It helps to develop real managerial skills to become a fullfledged manager. The main objective of this internship program was to achieve
practical knowledge of the corporate world and to learn about overall banking
procedure of commercial banks and their impact on bank productivity and
profitability. As this report had to be prepared in an assigned title Customer Service
Department, the objectives of this report are:
To gain knowledge about process of opening different account like normal
savings, student savings, khutruke savings etc.
To learn about the day-to day operation of the CSD department of the bank.
To gain knowledge about issuance of ATM card, Cheque book, Statement,
etc.To know about account closing process and requirements during closing
account.

1.3 Methodology of the Study


The report is basically prepared as per the experience of work while doing the
internship. The materials have also ben prepared from interviews, booklets, websites,
and published documents. So this report contains primary as well as secondary data.
1.3.1 Sources of Data
This report writing is based both on secondary and primary data of Prabhu Bank
Limited. For the secondary data: annual reports, several articles, bulletins publication
and thesis reports are studied. In the same way, for the primary data: I had interned in
the Prabhu Bank, Thamel for eight weeks. During the intern period, I had visited
customer service department, marketing department, remittance department, cash
section and to the loan department for one week each. Then the extra week was spent
at the bank as miscellaneous jobs. During the period I chose to write report on the
Customer Service Department of the Prabhu Bank. For this, I asked for the permission
with branch manager Mr. Arun Kumar Maharjan and he granted me for the line that I
chose. After that I asked with the head of the CSD and obtained accurate and reliable
information which I was looking for.
The data which are originally collected by an investigator or an agent for the first time
for the purpose of statistical enquiry are known as primary data. The data is, thus,
original in nature. For this report, I have collected the Primary data through interview,
questionnaires with staffs and self observation by me during my intern period. The
data highlights the real and factual information about the bank.

Data which are not originally collected but obtained from some published or
unpublished sources are called secondary data. These types of data are not original in
character so it is also called second hand information. Secondary data can be collected
with the help of primary data. In other words, the data, which have already been
collected, compiled and presented earlier by any agency, may be used for the purpose
of investigations are called secondary data. All the secondary data were collected

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from annual reports, several articles, bulletins publication, and journals of the Prabhu
Bank and taken from the website.
1.3.1

Organization Selection

For the specialization in the field of finance, I had certain options to choose the
organization that offers the most of the information. So, I chose Prabhu Bank Limited
as it has the best offerings to the students. As for the fulfillment of the course and me
being finance specialized student, I have to choose a financial institution among
which financial company are the most advanced type which carry number of financial
transactions.
Prabhu Bank's performance has been very good in recent past. Furthermore, the
organizational layout and setting was tempting to work. It has many departments so
the trainee have more options and opportunities to learn about how different
departments in an organization functions, how they are interrelated and how their
activities are combined to achieve the objectives of the organization.
1.3.2

Placement

For conducting the internship, I was placed in the Prabhu Bank, Thamel Branch. The
intern was first familiar with the bank and banking environment. During the eight
weeks of internship period I was placed in altogether 4 departments.
They are as follows:
1
2
3
4

Customer Service Department (CSD)


Clearing
Remittance
ATM

1.3.4 Duration
The duration I had stayed in different departments is presented in the following table:
Department
CSD
Clearing
Remittance

Weeks
1

11

ATM

1.4 Activities Performed in Customer Service Department


During the course of eight weeks internship first two weeks was spend in Customer
Service Department. In CSD department, following tasks were performed: opening
and closing account, preparation and issuance of new cheque books, issuance of
statement of account, balance certificates, Credit & Debit Advice, Advance Payment
Certificate (APC). Various types of forms as demanded by customers are also issued
from CSD only.
Two weeks was spend in Clearing Department where customers deposit cheques of
other banks into the Prabhu Bank.
Two weeks was placed in Remittance department to gain knowledge about the Inward
and Outward Prabhu Remittance. Through Prabhu Remit, people can send and receive
money all over the Nepal and people from abroad can also send money in Nepal
through Prabhu Remit to anyone.
Then two weeks placement was in ATM Department where different activities was
performed related to ATM. The major jobs to be done in ATM are: loading cash in
ATM, and reconcile the records in ATM.

1.5 Limitations of the study


The limitations of study are listed as below:

Eight Weeks of internship program is not enough for learning overall

functioning of the Department at its core depth.


Organizational regulation and secrecy norms did not allow accessing required

data as to prepare and know in depth about bank.


Since Internship is conducted in a single organization, cross-sectional analysis
and comparative study of different organizations of the industry is not

possible.
Any work done through the software expose the name of the user in the
transaction list that is needed to be verified by officers. All staff of the

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organization did have their own user. No interns are allowed to use their

software for any purpose.


Only the information from the lower level assistant is accessible which was
very limited. The middle or upper level staff did not want to unveil their data.

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CHAPTER 2
INTRODUCTION OF THE BANKING INDUSTRY
1

Background

A modern industrial society cannot be run by self-financing of entrepreneurs. Some


institutional assistance is necessary to mobilize the saving of community and to make
it available to the entrepreneurs. The people who save in small odd lots also want an
institutional which can ensure safety of their funds together with liquidity. Bank
assures with a future facility that the fund can be drawn back in case of need. From a
broader social angle, Bank act as a bridge between the user of capital and those who
save but cannot use the fund themselves. The idle resources of community are thus
activated and brought to productive use.
The banking sector is largely responsible for collecting household saving in terms of
different types of deposit and regulating them in the society by lending different
sectors of economy. The different sector has now reached to the most remote areas of
the country and has experienced a good deal in the growth of the economy. By
lending their resources in the small scale industries under intensive banking program
has enabled the banks to share in the economic growth of the economy.
The banking system has capacity to add to the total supply of money by means of
credit creation. The Bank is a dealer in credit of its own and other peoples
(crowther, 2009). It is because of ability to manipulate credit that the banks are used
intensively as a tool of monetary policy. They thought channeling of funds into one or
the other direction on a priority basis or intending it to one or other on confessional
terms and conditions, influences the flow of funds and thereby the nature economic
development.

2.2 Origin of Bank


It is very hard to collect the correct information of the origin of bank because there is
much controversy as to the origin of the word bank. There is different opinion on the
origin of bank. According to one opinion, the term bank was originated from Italian

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word Banco which refers to the bench on which the bankers keep their money and
records.
The bank was first used in Italy. It is proved by one another opinion as well. In
another opinion, Italy had to face economic crisis in 1171 due to a great war. Hence,
the government decided to raise involuntary loan of one percent from the property of
each citizen at 5% rate of interest. That loan was called monte or joint funds in
Italian language. Since at that time most parts of Italy had German ownership, the
German word Banck was used for monte. Later these words were converted into
banco in Italian language, Banke in French language and Bank in English
language.
The bank had started in Italy in 12th century as a public bank. The first public bank
was the Bank of Venice established in 1175. After that Bank of Barcelona was
established in 1401, and Bank of Genoa in 1408 as public banks. In 1609, Bank of
Amerterdam, a famous bank was established. In reality, the history of modern banking
had started from Bank of England only in 1694. But the modern joint stock banks
were established in England only in 1833. The Banque de France was established in
France in 1807. Later the banks were established in other parts of the world.
2.3 Meaning of Bank
A bank is a financial institution, which provides financial services. It is an important
institution for the people to secure their property and promote their savings. Simply, a
bank is a medium to collect deposits from the general people and provides loan,
which demand charging them certain rate of interest. Generally, the institutions, which
collects deposits from its customer and advance them loans is called a bank.
In the same way, a bank is a financial institution that collects money from those who
have it as spare or who are saving it out of their income and lends this money out to
those whom requires it. Bank runs on business lines with a view to earning profits on
the other hands is primarily meant to shoulder the responsibility of safeguarding the
financial and economic stability of the country. A bank simply carries out the word of
exchanging money, providing loan, accepting deposit and transferring the money.

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Bank is an intermediate for deposit and borrowing of fund. It is a place to keep


valuable things or money and also it is a source to get money. Normally bank means
commercial bank whose main functions are to accept deposits, grant commercial
loans and operate various monetary activities. In fact banks are the lifeblood of
commercial development of nations. They are the indispensable necessities for the
development of agriculture industry, trade and commerce of a country. Today, banks
play vital role creating financial market to increase the volume of financial activities.
Lastly, Bank is money oriented. Bank is an institution which collects deposits from
various small/big individuals/institutions spreading all over the country and mobilizes
it into productive sectors in profitable ways because bank needs interest income in
return. In banking sector, all the parties Depositor, Bank & Borrower are in profit.
This is the beauty of banking.

2.4 History of Bank in Nepal


In Nepal, modern banking transaction started in country just before the Second World
War but the transaction of money and banking was not sure and where it was
established due to lack of information. At first people did their transaction as Barter
and Monetary System. Before 1936 in Nepal there were no banks at all. A few
money lenders carried out all the monetary transaction. The need of the masses are
met by indigenous money lenders and as a matter of fact; very large portion of
productive activity of county still remains completely outside preview of the
organized banking system.
Truly speaking, for the first time, merchant and gold smiths were doing the banking
activities. Merchants, who deal not only in goods but also in bill of exchange, which
provide for the remittance of money and payments of accounts at a distance without
shipping actual wins. The gold smiths were doing banking activities that received
deposits and lend money to their client or customers. The ancient or primitive people
were excited keeping their valuable thing like, ornaments and money in their houses.
They kept those things at gold smith because of safety motive. The gold smith
accepted the deposit from others and began to issue receipts promising to pay the

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value of demand and utilize the deposit in the various profitable ways. Besides they
lent it out at interest and discounted the trade bills of the merchants.
Towards the end of 11th century Jayasthiti Malla classified the people in 64 classes on
the basis of their occupation. This list includes a class called tankadhari. Tank means
money or price and Dhari means the owners of monetary transaction who accept the
money. In this way tankadhari gave money to people who had suffered or needed
money but they charged fixed interest rates and other extra dues on loans advanced.
They kept land and goods at pledge and provide money for personnel or business
work at certain interest rates. But later, it showed lot of inconvenience because they
cheated, betrayed and did fraud to earn money. In this way the time at Tankadhari
came to end.
After Tankadhari, Prime Minister Rano Deep Singh established Tejarath in 1933 as
an institution. Tejarath was a government financial institution supply credit at 5% rate
of interest against security of gold, silver and ornaments. Prime Minister Chandra
Shamsher (1901-1929) credited facilities of Tejarath were extended to some other part
of the country by opening its branches. In order to control the high rate of interest
ranging from 35% to 75% legislative measures were taken. Those measures made the
moneylenders powerless to file suit against their debtors even in case of default. Thus,
Tejarath was replaced by a commercial bank known as the Nepal Bank Limited
during the time of Juddha Shamsher.
After Tejarath adada (institution) there was no other institution in Nepal. Thats why,
Nepal Bank Limited was set up in 1936 had been assisting in the involvement and
institutionalization of trade and commerce. Before it there was no bank that accepted
deposit and provide facilities. In a country like Nepal, only such institution couldnt
fulfill the need of the masses. In the history of Nepal, to solve the problem for the first
time, Nepal Bank Limited was established in B.S.1994 Kartik 30 th day of Laxmipuja.
That time Nepal Bank Limited started authorized capital of Rs. 1 crore, issued capital
Rs. 25 lakhs and paid up capital of Rs. 8.42 lakhs. It was established by government
and public shares which was 51% and 49%. At first 12 employees were working
under Nepal Bank Limited, out of 12, 4 were foreigners from abroad and remaining 8
employees were from our county.

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After this, to develop banking sector and to help the government formulate monetary
policies, NRB was set up in 2013 B.S. (26 th April 1956) special act. Then the second
commercial bank of Nepal was Rastriya Banijya Bank established in 2022 B.S.
(1959 A.D.). Then establishment of NIDC in 2016 B.S. helped to develop industrial
sectors. The Agriculture Development Bank established in the year 2024 B.S., Nepal
government adopted liberal economic policies and allowed for the establishment of
private as well as joint venture banks under collection with different foreign banks.
Since then the banking sector of Nepal has developed a lot.
The introduction of modern banking practices among the general public after the
incorporation of Nepal Arab Bank (renamed as Nabil Bank since 2002) and Nepal
Grindlays Bank Ltd. (renamed as Standard Chartered Bank Ltd). Nepal Arab Bank
was the first joint venture bank incorporated in the country. It was incorporated in
2041. Presently 30 commercial banks are in existence.
Thus, banks are those institutions whose functions are related to:

Creation of money
Credit acceptance
Deposits from the people
Forwarding of loans
Transfer of money
Agency functions to customer, etc.

Problems Faced By Banking Industry in Nepal

The current political situation of the country is not fixed. The unfixed and rapidly
changing political situation of the country creates confusion among the customers.
Due to political instability and lack of confidence, banking sectors are losing major
share of business. At the meantime, the interference from government, political
leaders and higher valued shareholders is also a major problem faced by banks
currently. Financial institutions have become very complex and sophisticated in the
way they operate. The products and services they offer tend to be more and more
complicated.

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Presently, the Nepalese banking sector is facing a huge problem and is in the critical
stage. So, in order to cope with this problem NRB has directed the financial
institutions to go in the process of mergers and acquisitions. In the present scenario,
following are the major problems being faced by the banking sector in Nepalese
market:
The liquidity problem has started since fiscal year 2010/11, when the Maoist
government had taken the policy if showing the sources of fund when the amount
deposited exceeds NPR 1 million. The problem has been increasing due to lack of the
government spending. The business man and Bankers has argued the delayed budget
and disbursement of development expenditures are causing liduidity crisis. The
withdrawal of large amount of money by depositors especially from NRB and Nepal
Army has drastically reduced reserves in the banks, which is serious problem for both
financial institutions and economic system of the country. As per the Nepal Rastra
Bank's policy, no commercial bank can deposit its money in finance companies and
development banks till mid of July. As long as NRB doesn't change this policy,
finance companies and development bank will have to face liquidity problems
(Sapkota, 2011).
Nepal's financial market opened up international investment since 2010. So, another
greatest challenge facing the domestic institutions is their ability to compete
effectively in a more liberalized environment due to skills gaps which are still lacking
in critical areas, particularly in the area of credit and treasury risk management.
According to Anil Shah, who is a well-known name in the banking sector in Nepal,
claims that Nepal is now in sinking trend. The whole economy of the country had
suffered badly due to political instability, power outage, labour disputes and insecurity
among others. He also says that the greatest it is challenge of the banking sector.

CHAPTER 3
INTRODUCTION OF PRABHU BANK LIMITED
3.1 Introduction of Prabhu Bank Limited
Prabhu Bank Limited is one of the renowned banks of Nepal, established under Banks
and Financial Institutions Act, 2063 to provide banking and financial services. With

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112 branches in both established and faster growing markets throughout the nation,
Prabhu Bank Limited aims to be where growth is, connecting customers to
opportunities, enabling businesses to thrive and economies to prosper and ultimately
helping people to fulfill their hopes and realize their ambitions. Prabhu Bank Limited
serves more than 650,000 customers nationwide through its business like Personal
Banking, Business Banking, Infrastructure financing and other financial services. Its
network covers 32 districts and aim to be acknowledged as one of the nations leading
bank.
Prabhu Bank is named after successful merger of four banks and financial institutions,
Kist Bank Limited, Prabhu Bikas Bank Limited, Gaurishankar Development Bank
Limited and Zenith Finance Company Limited on 15th September 2014. The
convergence of corporate culture between these four institutions resulted in a
successful merger and now has become a key player in the market having 112
footprints throughout the nation. The Bank is one of the largest private sector banks in
the country in terms of footprints, ATM network, customer base and number of staffs.
The existing branch network covers almost all parts of the country i.e. Major financial
centers, Terai, Mountain and remote areas of the country, even in that place where no
any banking institution has reached before.
Prabhu Bank has become glorify with its corporate slogan Power to Succeed. For
the success of above slogan Prabhu Bank is committed to deliver quality services to
customers, generating good return to shareholders, providing attractive incentives to
employees and serving the community through stronger corporate social
responsibility (CSR) endeavor.

3.2

Capital Structure of Prabhu Bank Limited


Table 3.1. Capital structure

S.
N.
1.

Particulars

Existing

Authorized Capital

1000000
0

Ashad End
2073
10000000

Ashad End
2074
10000000

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2.

Issued Capital

3850662

5887362

8000000

3.

Paid Up Capital

3208885

3208885

5850662

4.

Right Share Issue

641777

1470351

5.

Acquisition from NDB

30740

6.

Merger with Grand Bank

2000000

7.

Proposed Bonus Share

3.3

678988

Mission, Vision and Objectives of Prabhu Bank Limited

Mission
Our Mission is to become the leading bank by providing the best quality financial
products and services to our customers, enhancing our shareholders value,
contributing to the economic prosperity of the country and creating excellent
opportunity for our employees.
Vision
Our Vision is to become the best bank based on operational excellence and superior
financial performance.
Objectives

To contribute to the sustainable development of the nation by mobilizing

domestic savings and channeling them to productive areas


To use the latest banking technology to provide better, reliable and efficient

services at a reasonable cost


To facilitate trade by making financial transactions easier, faster and more

reliable through relationships with foreign banks and money transfer agencies
To contribute to the overall social development of Nepal

3.4

Products and Services provided by Prabhu Bank Limited

Prabhu Bank is established with a vision of providing better services to the customers.
It has adopted a modern banking concept i.e. customer is the king of the market so it
always tries to pool the customers through intensive qualities services that could
satisfy the customer.
The services provided by the bank are as follows:

3.4.1 Deposits:

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Like any other bank, Prabhu Bank accepts deposit from individuals, business
oganizations and other institutions. It offers different kind of deposits like
a) Current Account
Current deposit is a type of no-interest bearing deposit in whch customer can make
any number of deposits and withdrawls of demand to suit every business need. PBL
has tailor made current account which highky meets needs of todays fast growing
enterprises.
b) Saving Account
PBL offers normal saving account facility t cater the saving habits of individuals and
households. Initial deposit ranges depend on the type of saving account that customer
preferred. Minimum balance also differs according to the types of saving account.
Different type of saving account of PBL is:

Prabhu Smile Savings

Prabhu Aashirbad Bachat

Prabhu Normal Savings

Prabhu Student Savings


b) Fixed Deposit

Fixed Deposits can be opened with minimum balance with a minimum balance of Rs
45000. Interest is payable quarterly. Penal interest is levied on withdrawal of FD prior
to maturity. Tax is deducted at source from the interest on saving deposit as per the
income Tax Act 2058.
c) Other Account
There are various other types of account available in PBL to attract the new
customers. Like salary savings which is specially focused on staff savings. In these
types of account, the bank is offers high level of interest rates as compared to the
other types of account.

3.4.2 Loan/ Advances


Corporate loans SME loan is aimed at meeting the financial ambitions of small and
medium businesses. It is distributed to meet the working capital as well as fixed term
requirement of applicant.
a) PBL Consumer loans

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Bank provides at most competitive terms, various loan facilities such as loan against
fixed deposits/ government bonds, loan against gold and silver, loan against stable
future income etc that help to manage personal eeds of the customers.
b) PBL Personal loans
It is a flexible loan disbursed for the borrowers social, personal or business purposes
in order to fulfill all personal and business financial requirements. It is provided
against the land and building. Personal loan may be personal term loan and personal
overdraft loan.
c) PBL Auto Loans
This loan is provided for purchase of new vehicles. Auto loans are provided for both
private and commercial use. This is provided to any salaried and self-employed
individuals and companies having regular and stable source of income. The loan is
provided to Nepalese citizen only.
d) PBL Home loans
This loan is provided for purchase of land, purchase or constructs a building on it,
purchase of bungalow constructed by builders, developers, renovation, modification.
This is provided to any salaried and self-employed individuals and companies having
regular and stable source of income. The loan is provided to Nepalese citizen only.

3.4.3 Other Services


Besides the above mentioned functions; the Prabhu Bank Limited provides number of
other services listed as:
a) SMS Banking
Prabhu Bank Limited presents SMS(Short Message Service) Bamking service to its
valuable customers. In SMS banking service one can get message alert for his/her
transaction from his account. PBL SMS banking ervices has following features:

b)

Secured transaction with pin code


Instant balance information
Last three transaction with current balance
Pin code changing facility
Account statement print request
Internet Banking
This is another type of service provides wide coverage of services to its
valuable customer so that they can check their balnce, transfer fund, cheque

stop, cheque issue etc through the internet network.


c) Any Branch Banking Services

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All branches are enabled for ABB services. This service is free of charge to the
banks customers. In this service customer having account with PBL can
access their account from any online PBL branch. (summarize only in two
paragraphs)

3.5. Organization Design and Structure


The design and structure of the bank consists of various levels of owners and the
employees. However the organization begins with the board members who decide
about the bank problems and the future progress and the plans. Organization Structure
means to distribute power and allocate resources in an organization. The hierarchy of
Prabhu Bank starts from the Board of Directors followed by the Chief Executive
Officer. It is simply the order in which authority is organized, who answers to whom
is clearly mentioned. Hierarchy suggests there is a head that makes the final decision
is included by the hierarchy. The head could be anyone as per the branch, department
or the company as a whole.

3.6 Branch Network of Prabhu Bank Limited


As of Fiscal Year 2073/74, the Bank has all together 112 branches across the country,
out of which 49 branches are inside Kathmandu Valley and 89 branches are outside
Kathmandu Valley. Some list of branches is shown in appendix.

3.7 Brief Profile of Prabhu Bank Thamel Branch


Prabhu Bank Thamel Branch started its operations with a view and objective of
extending professionalized and efficient banking services to various segments of the
society in the Thamel area and thereby contributes in the economic development of
the area as well as country. The bank recognizes the value of offering a complete
range of services not only to corporate but also to individual.
Prabhu Bank Thamel Branch has various departments, such as: Customer Service
Department, Teller/Cash Department, Remittance Department, Back Office, Credit
Administration Department and so on.

3.8 Future Plans

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PBL aims at becoming stronger and bigger then at the present. The main aim of the
bank is to open many more branches all around the country at customer convenient
locations. PBL is planning to open its branches even in the remote parts of the
country so that the people in those areas can also get a world class banking service.
PBL will continue to introduce new services such as DEMAT account in the market
for easy and secure electronic share buying and selling and electronic distribution of
dividends. Bank has been pursuing merger and acquisition with complete
undertandingof the value it gains with numerous M&A till date. Bank will carry on
M&A strategy to have synergetic effect in area like: capital, operating, financial, or
managerial and such.
Post- merger challenges have been observed among the Customer Service Department
throughout the bank. In the current intense competition situation, the pan has been
developed to make the customer service much effective and customer friendly. PBL is
highly dedicated to minimize risks like operational risk, liquidity risk and such.

CHAPTER 4
ACTIVITIES PERFORMED AND PROBLEM SOLVED
4.1 Activities Performed In Customer Service Department
The commercial banks offer additional services for the customers convenience and to
make banking a pleasure. The very first thing that the people seek in organization is
the prompt service and the person at the customer service desk properly handles them.
The people at the customer service desk must be ready to sort out every problem at
any moment.
Customer service is a series of activities designed to enhance the level of customer
satisfaction that is, the feeling that a product or service has met the customer
expectation (etal, 2000). Under the supervision of the department head, the activities
carried out in this department are:

4.1.1 Opening an Account


Account opening is one of the most important activities done in CSD. Accounts are
opened in the form of personal account and corporate account. The various forms of

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account are: Prabhu Smile Savings, Prabhu Aashirbad Bachat, Prabhu Normal
Savings, Prabhu Student Savings, Prabhu Khutruke Savings, Prabhu Foreign Savings,
Prabhu Senior Citizen Savings, Prabhu Shareholders Savings, Prabhu Salary Savings,
Prabhu Paurakhi Bachat, Prabhu Naranari Savings, Prabhu Special Savings, Prabhu
Current Account, Prabhu Call Deposit.
Various schemes are available keeping in mind the saving need of customers. There is
a special provision for the student account with only one hundred minimum balance
with ATM facility but do not get cheque facilities. In order to open an account the
customer should fill in the account opening forms and submit documents required for
opening an account to CSD. CSD opens an account only after obtaining all required
documents and complying with the regulations related to opening of account.
Keeping in mind the above discussed thing and knowing what exactly the Customer
Service is, I was taught with the general rules for opening of an account which are as
follows:

Customer should personally be present for opening of new account in Prabhu


Bank in case of both personal and corporate account.

Only in some exceptional cases, accounts can be opened in absence of the


customer only when CSD in-charge is satisfied about the identity of the
customer and correctness of the information provided in the account opening
form after discreet inquiries.

While opening an account, customers are required to fill up the form


containing all the detailed information along with their specimen signature and
type of account preferred to open.

Citizenship and its Xerox copy along with two passport sized photos are
compulsory along with the name and detail of the beneficiary.

Accounts in foreign currency can also be opened, but it should be permitted by


Exchange Control Regulations.

An initial deposit should be made to open an account. The initial deposit is the
minimum amount that should be maintained to open an account.

After knowing all these things, I was allowed to personally interact with the customer
and help them to fill up the form. Many times customers requested to fill up the form

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showing their inability. Apart from this, other activity done was making the Xerox
copy of their citizenship card and verifying the photocopy with my signature and
providing the specimen card for the clients on their demand to change their signature
for different reasons (change in writing habit, change in ownership, change in
authorized person/bearer etc). Final activity in account opening was keeping the
record of account opened in respective account books and attaches the form
numerically in the index file.
4.1.2

Cheque Order, Issue and Print:

Initially, cheque book is issued on opening a new account or on use or on the loss of
previously issued cheque book. Cheque book are also provide on the receipt of the
request from the customer.
Here the first activity done is receiving the requisition slip as the order from the
customer. As soon as the slip is received the signature needs to be verified and then
record is to be maintained in the cheque order book and finally in the cheque issuance
register at the delivery of cheque. Cheque Book can be received only by authorized
person or nominated by them. Always be careful while handling Cheque book and
ensure that Cheque book has been received by concerned authorized person or
nominated person only.
4

Account Statement

Statement is much essential to have the full proof of amount deposited or issued.
Thus, analyzing this factor Prabhu Bank has made provision of providing account
statement as per Customer Requirement.
Only in the absence of the CSD in-charge, I was given a chance to use Pumori Plus
Software (i.e. banking software) to print the account statement. The thing that is to be
kept on mind before providing the account statement is that the account statement is
only provided to the person demanding it and if any second person demands the
account statement then he has to bring a paper where there is the clear specification
which clearly specifies to provide the statement to the person holding the paper with
the valid account holders signature.

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Tele Banking Facility

Prabhu Bank has also provided its customers the telebanking facility, for different
services. Customers do not have to deal personally instead they can even get their
work done just by contacting with the Prabhu Bank Representative on telephone. This
was an interesting activity to do because I had the chance to deal with the customers
different kind of queries which helped to develop the interpersonal conversation skill
and know what was their response about the organization.
4

Balance Checking

Most of the customer approach CSD in order to check the balance to make sure that
their cheque will not be returned due to the insufficient amount and that their amount
have been deposited. I was also permitted to check the balance on customer demand
using the software but needed to make sure that the balance I was checking was of the
person demanding.
4

Receive cheques for clearing

All the cheques that needed to be sent for collection are given in the CSD. The cheque
deposit voucher with its carbon copy needs to be filled up with the information like
name and address of account holders, cheque date and cheque number, account
number of Prabhu Bank, amount in word and figure separately, and the name of the
bank whose cheque is used for clearing. And finally the account number in the Prabhu
Bank which is to be debited in inward clearing and credited in outward clearing
should be mentioned in the back side of the cheque used.
As soon as the cheque is received the stamp must be put on both the deposit vouchers.
Among the two cheque deposit vouchers one had to be given back to customer so that
the customer could claim on the bank if the cheque is not cleared on time. The inward
clearing can be committed within ten to fifteen minutes but outward clearing takes at
least same or next working day. All the received cheques and attached vouchers were
finally recorded in the bills for collection book and were sent to the clearing section.
If any cheques are returned then it was necessary to call a respective person and
inform them that their cheques are returned. The return could be due to following
reasons:

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Lack of sufficient balance

Mismatch of signature of account holders

Use of Post dated cheques

Mismatch in amount in figure and words

If the cheque is not sent to the respective branch of the account

If the cheque is of non member financial institutions of clearing department

Receive letter and documents

Almost every day different letter and documents were brought from the head office
and other places. Those letter and documents were first handled by CSD. After
receiving the letter and documents those were entered in the respective book with
proper date, place and with the main subject line of each letter or document. These
letter and documents was then sent to the managers office. The manager after
studying the letter and document returned them back to the CSD ordering to distribute
them to the respective departments.
4

Put record of ATM order

The growing demand of ATM led to the numerous customers come to the CSD and
demand for the ATM cards. They were served by giving the ATM request form to new
as well as for existing customer and ATM lost/damaged form to exiting customer who
have lost/damaged their ATM. The customers were required to fill up the form and
submit to CSD back again which needed to be recorded and sent to the system
department. Whether the ATM of a certain customer is available or not was also
checked in CSD.
4

Account closing

At first when the existing account holder comes to close the account, it is first task of
CSD to convince the customer to not closing the account. If they are not convinced
then only the account closing form is issued. The account holder must be present to
close the account along with the cheque book and ATM card issued by the bank.
Name, account number, and the reason for closing the existing account should be
mentioned in the account closing form.

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After the account closing request is received from customer, this form is taken by
CSD for the no objection in all departments (credit, foreign transaction, and
operation). If the account is of large deposit or transaction it is taken to the branch
manager for the approval. The remaining balance after deduction of closing charge is
provided to the account holder through cheque. And all remaining cheques and ATM
are received in the teller. These are cancelled and destroyed later on by Operation
Incharge.
4.1.10 Other services
The above discussed are the important activities that was done and the other different
activities done were providing the customers with different relevant information,
providing different kind of forms like account opening form, locker request form,
account closing form, draft form, remittance receipt form, cash deposit form, cheque
deposit form, NTC bill payment form, ATM request form etc.

4.2 Activities performed in Remittance Department


Remittance is the process of transferring or receiving fund from one place to another
through various modes of payment such as Swift, Draft, Pay Order and Electronic
Money Transfer Service etc. Outward remittance is the process of sending fund to
some other branch or bank within or out of the country. Inward remittance is to
receive fund from some other branch or bank. The parties involved in a fund transfer
are the remitter, remitters bank, beneficiary and beneficiarys bank. We can also say
that present economy is characterized by remittance economy. Our economy today
has been strongly supported by the remittance activity.
4.2.1 Flow of funds in remittance operations
The flow of funds within the remittance operations are depicted in the figure below.
Each remittance company has agent in various countries throughout the world. The
process of remitting funds is simple. An individual contact an agent of the remittance
company in the country where they reside, presents the cash they want to remit, pays
the fares, and supplies information of recipient. The agent deposits the cash in a local
bank account to be transferred of the recipient. The agent deposits the cash in a local
bank account to be transferred to the company bank account. At the same time the

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agents faxes or emails or online information, including the amount, the sender,
recipient and instructions as to where deliver to a clearing house. The clearinghouse
contacts the agent closet to where the recipient lives and delivers the cash and the
transaction is completed.
Prabhu Bank has been providing the remittance facilities to the people of Nepal from
the very beginning. The remittance at Prabhu Bank and activities done are discussed
below:
4.2.2 Inward Remittance
Inward remittance is the fund flowing into Nepal from other country or transfer from
within the country. They basically come from people working abroad who send their
earnings to Nepal, and payments made by foreigners to Nepalese businesses for the
goods they have imported from Nepal. Prabhu Bank is playing a crucial role in
facilitating to and from across globe.
In order to facilitate remittances of Non-Resident Nepalese (NRN's) residing in
U.A.E, Bahrain, Kuwait and Saudi Arabia, Prabhu Bank is a step ahead. It holds
special drawing arrangement with different exchange houses by which customer
saving is safely and quickly get available to beneficiary. The banks own web based
online remittance product Prabhu Remit facilitates remittance from UAE, Qatar,
UK, and Bahrain to more than 132 locations in Nepal.
4.2.3 Outward Remittance
Outward remittances involve transferring funds from Nepal to other countries. The
major reason that creates need for outward remittances could be the payment for
imports, payments for abroad universitys fees, transfer of saving made by foreigner
to their country etc.
For rest of the world, Prabhu Bank has maintained agency relationship with
"renowned banks" that have worldwide branch network. Prabhu Bank provides USD,
GBP, EURO drafts on SCB or transfer business payments, university fees and
miscellaneous transfers via SWIFT to any corner of the world.

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4.3 Activities Related to Cheque Clearing


Each and every financial institution issue cheques to their account holders and the
account holders can make payment through the cheque to any third person and party.
The cheque is always drawn against balance maintain at the account. When the payee
presents the cheques at the bank counter then that must make a payment to the payee
if there is enough balance in the account and other condition for honoring cheques is
compiled with. This is known as clearing of the cheque is responsible of the clearing
department (nepal electronic cheque clearing rule book, 2011).
4.3.1 Types of clearing
From the point of the banking system clearing can be of two types. Inward clearing
refers to the cheques drawn on home bank i.e. Prabhu Bank, that are received from
other banks for clearing purpose. The out clearing of other banks to the home bank is
inward clearing for home bank. This inward clearing process is start after returning
from the NRB clearing house with its advice.
Outward clearing refers to the cheques of other banks deposited by the customers for
realization in Prabhu Bank. In other to receive the outward clearing services the
customer must have an account in the bank. The cheque received for outward clearing
is generally sent the next working days to the clearing house.
4

Procedures of Clearing Cheque

Clearing starts when the depositors fill a deposit slip and provides it to the bank for
clearing along with the cheques. At the time of accepting the cheque, the department
representatives verify the following things before accepting the cheques.

The details in deposit slip should be correct and should match the cheque.
The cheque should not be post dated and stale not more than 6 months.
The payee endorsement should be present.
The bank on which the cheque is drawn should be the member of clearing
house.

Once accepted, the department clears the cheque by putting dated clearing stamp on
the deposit slip with signature and returns the receipt to depositor. The clearing
register is maintained to record the detail information of clearing cheque. The clearing
sheet, which of detail of cheque to be presented to a particular bank are generated
from computer and attached to respective sheet. The cross stamp of Prabhu Bank on

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face of cheque and makes the endorsement on the reverse of the cheque. The cheques
along with the clearing sheet are presented to the respective banks in the clearing
house. Likewise other bank also presented their cheque to Prabhu Bank.

4.4 Activities Related to ATM


ATM is plastic money that is issued by the banks to their customers in order to make
the easy withdrawals from their account balances. Thus, it is also called as Debit
Card. Prabhu Bank Limited also issues a Visa and SCT debit card, Prabhu Rupiya
Card and Credit Card to its account holders. In debit card section, the trainee has
involved in various tasks such as making request for debit cards, receiving and sorting
of cards and PIN numbers, making the ledger and index, distributing cards and PIN
as well handling the several grievances of the cardholders which are explained below:
4.4.1

Making request for debit cards:

At first the request of ATM receives are verified by branch manager. After that all the
request of ATM are compile and type in excel which include account holders name,
account number and issued date etc. And this information is mailed to head office.
After the request has been sent, the request material is recorded as a future purpose.
4.4.2

Receiving and sorting

After making the request, the cards are prepared and sent from head office within 7
days of request. Thus, the received ATM cards are sorted and send a message to the
concern account holder. The cards and PINs of the branch requests are properly stored
and indexed in an efficient manner as to make the distribution effective. The single
envelope is allotted to each card and PIN in which instruction lists are also enclosed
within it.
4.4.3

Distribution

After making the proper indexing of cards, there need to perform the task of
distributing the cards and PINs to the account holders whenever they make demand
for the cards. While distributing the cards, the agent was responsible for verifying
whether the card is of the respective account holder or not. For, the major procedure
was taken as signature verification and the image system that appear in the software
provided by the institution. Only passing through these steps, the agent was instructed
to distribute the cards and Pin number.

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CHAPTER 5
CONCLUSION AND LESSON LEARNT
5.1. Conclusion
Internship is an academic; curriculum based practical work experience in a particular
field of study that enhances student learning. The purpose of the internship is to
provide student an opportunity to practice various management practices in real
world. It provide student with an understanding of how organization operate. Two
months internship at Prabhu Bank Limited has been valuable and fruitful. Besides
knowing about core concepts and ideas on CSD, Clearing, Remittance and ATM
internee was able to gain knowledge on various functional as well as corporate areas
of the organization. The internship at Prabhu Bank can be taken as an initial step for
the internee to enter into real organizational practices. Various activities are performed
in a CSD such as, account opening, filing, preparing cheque book, registering
statement etc. Hence the customer service department serves the customers by
performing these functions. Besides, the report deals with the activities performed
under other departments as well where the trainee was executed. The other
departments are cheque clearing and ATM. It contains information about the various
activities conducted under these departments.
Hence the internship has proved to be a fruitful experience providing a chance to
actually work in the real settings which helped enhance the knowledge and qualities.
Moreover Prabhu Bank offered a rotation internship program whereby the interns are
rotated to different departments as per their requests. This helped to have an overall
picture of the working of the financial institution.

5.2 Lesson Learnt


The internship period and the report preparation phase both were highly beneficial for
the trainee. It provides an opportunity to have a broader knowledge about the banking
sector, banking operations. Specifically, the internship and the report preparation
have helped me in knowing about the activities of CSD, Clearing of cheque,
Remittance and ATM in Prabhu Bank.

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The internship has been rewarding in several ways for the trainee. Apart from banking
knowledge, trainee has learnt following things:

Trainee got an opportunity to learn about several aspects of CSD, Clearing,


Remittance and ATM.

Trainee learnt about numerous aspects such as the way of dealing with different
people, dealing with senior executives as well as with other intern colleagues for
the creation of congenial environment.

Moreover, this experience helped me to know the importance of confidence,


assertiveness, punctuality, decision making abilities etc. and develop such values
in me.

Trainee has been able to develop some qualities which will be helpful throughout
life.

Working in the Prabhu Banks environment have let me to know that when there is
the high degree of socialization within personnel of an organization the more
friendly will be the environment and people work well despite of heavy workload.