i

YOUR TOPIC

By:
Write Your Name

Write your Campus/College name

TU Exam Roll No: 18XXX/….
TU Registration No:

An Internship Report Submitted To:

Office of the Dean
Faculty of Management
Tribhuvan University

In partial fulfillment of the requirements for the degree of

Bachelor of Business ……..

Kathmandu
June, 2024
 ii

Student’s Declaration
I hereby declare that this internship report entitled “Customer Service Department of
Prime Commercial 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 ………… degree under the supervision of Mr. ………………....

……………………………..

Write your name

Write your campus/college

TU Exam Roll No: …………

TU Registration No: ………….

Duse

iii

Use Campus/College Letter Head

Approval Letter
This is to certify that the internship report

Submitted By:

Your name

Exam Roll Number: ………..

T.U. Registration Number: …………

Entitled:

“TOPIC”

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 ……
program held in campus NAME, Tribhuvan University.

………………………..

Write name of supervisor

Supervisor
Duse

iv

Use Campus/College Letter Head

Recommendation Letter
This is to certify that the Internship Report

Submitted By:

Write your name

Exam Roll Number: ……….

T.U. Registration Number: …………..

Entitled:

“TOPIC”

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

……………………………….

Write Name of Campus Chief/Principal of College

Campus
 v

Evaluation Letter Given by Intern Organization

This is to certify that the Internship Report
 vi

Acknowledgements

This internship report entitled “topic” has been prepared in partial fulfillment of the
requirement for the degree of Bachelor of Business …… .

Furthermore, I would like to express my deep gratitude to Intern organization 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 ……., ……., and …………. 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 ……………… the branch manager of the Samakhushi branch
along with ………., ……….., ……………….. and all the other staff members for
supervising and instructing me at work.

Finally, I would like to thank 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,

……………….

June, ……….
 vii

Table of Contents

Title Page .....................................................................................................................i

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

Approval Letter ......................................................................................................... iii

Recommendation Letter ............................................................................................ iv

To Whom It May Concern ...........................................................................................v

Acknowledgement ..................................................................................................... vi

Table of Contents ..................................................................................................... vii

List of Tables ...............................................................................................................x

List of Figure.............................................................................................................. xi

Abbreviations ........................................................................................................... xii

CHAPTER I: INTRODUCTION ...................................................................... (1-4)

1.1 Background .......................................................................................................1

1.2 Objectives .........................................................................................................2

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

1.3.1 Selection of Organization............................................................................3

1.3.2 Placement in Organization ..........................................................................3
1.3.3 Duration ......................................................................................................3
1.3.4 Activities Performed ...................................................................................3
1.4 Limitations ........................................................................................................4

CHAPTER II: INTRODUCTION TO THE BANKING INDUSTRY......... (5-11)

2.1 Meaning of Bank ...............................................................................................5

2.2 Origin of Bank ..................................................................................................6

2.3 History of Banking in Nepal .............................................................................6

2.4 Meaning Of Commercial Bank .........................................................................7

2.4.1 Functions of Commercial Bank ..................................................................9

 viii
2.4.2 Role of Commercial Banks .......................................................................11
CHAPTER III: INTRODUCTION OF PRIME COMMERCIAL BANK (12-21)

3.1 Introduction .....................................................................................................12

3.2 Vision ..............................................................................................................13

3.3 Mission ............................................................................................................13

3.4 Capital Structure..............................................................................................13

3.5 Objectives .......................................................................................................14

3.6 Current Board of Directors of Prime Commercial Bank Limited ...................14

3.7 Organizational Structure of Prime Commercial Bank Limited .......................15

3.8 Management Team .........................................................................................16

3.9 Branches of Prime Commercial Bank Limited ...............................................16

3.10 Major Products and Services .........................................................................21

CHAPTER IV: ANALYSIS OF ACTIVITIES PERFORMED AND

PROBLEMS SOLVED................................................................................... (22-27)

4.1 Analysis of Activities Performed ....................................................................22

4.1.1 Accounts Opening .....................................................................................23

4.1.2 Dealing with the Customers ......................................................................23
4.1.3 Handling Telephone Calls .........................................................................23
4.1.4 Issuing Cheque Books ...............................................................................24
4.1.5 Filling KYC Form .....................................................................................24
4.1.6 Issuing ATM Cards ...................................................................................24
4.1.7 Issuing Account Statements ......................................................................24
4.1.8 Filling Demat Account ..............................................................................25
4.1.9 Filling Other Forms ...................................................................................25
4.1.10 Filing and Indexing .................................................................................25
4.2 Problems Solved .............................................................................................27

CHAPTER V: CONCLUSION AND LESSON LEARNT .......................... (28-30)

5.1 Conclusion ......................................................................................................29

 ix
5.2 Lesson learnt ...................................................................................................30

REFERENCES
 x

List of Tables
Table 3.1 Capital Structure .......................................................................................... 13

Table 3.2 Board Members of Prime Commercial Bank Limited ................................. 14

Table 3.3 Management Team of Prime Commercial Bank Limited ........................... 16

 xi

List of Figure
Figure 3.1 Organizational Structure of Prime Commercial Bank Limited ................. 15
 xii

Abbreviations
ABBS : Any Branch Banking System

A/C : Account

AD : Anno Domini

ATM : Automated Teller Machine

BOD : Board of Directors

CEO : Chief Executive Officer

CSD : Customer Service Department

DEMAT : Dematerialized Account

NEPSE : Nepal Stock Exchange

NIDC : Nepal Industrial Development Corporation

NRB : Nepal Rastra Bank

PCBL : Prime Commercial Bank Limited

PIN : Personal Identification Number

RBB : Rastriya Banijya Bank

 1

CHAPTER I

INTRODUCTION

1.1 Background

An internship is a work-related learning experience for individuals who wish to

develop hands on work experience in a certain occupational field. It involves working
in your expected career field. It gives the students a valuable experience and a chance
to get exposed to the business environment.

The Bachelor of Business Management (BBM) of Tribhuvan University is a special

program in semester system designed to develop socially responsive, creative, and
result oriented management professionals to fill up the middle level managerial
positions in the rapidly growing business sector in Nepal and abroad. The program
offers practical knowledge, skills and competencies to achieve business success
globally.

The main objective of introducing internship in BBM program is to provide a blend of

practical knowledge to the theoretical knowledge that is gained till now. This
internship program provided an opportunity to convert the theoretical aspect of
learning and studies into the practical use.

Internship helps to develop intern’s interpersonal skills, confidence, professional

attitude, behavior, social responsibility and so on. Each internship experience should
provide a learning experience for the participants. Internship helps the students in
developing strong teamwork skills which is vital in an organizational setting.

Internship provided me with valuable real life experiences like dealing with customers
and trying to solve their grievances and answering their questions regarding the bank
and its services. Being responsible towards the work was very challenging. One of the
most important experiences of the internship program was to know the various forms
of an organization and their functioning, learning customer behavior and the ability of
employees to handle various customers with various needs and wants.
 2

1.2 Objectives

The primary objective of doing internship is for the partial fulfillment of requirement
for the degree of Bachelor of Business Management (BBM). The general objectiveof
this program is to make students familiar with the working environment and gain the
practical experience in the related field. This further helps the students to expose
themselves to the real world of the external environment about the different aspects of
management where they can apply their theoretical knowledge. The main task of the
internship program is to make a study on the banking operations process, understand
the services provided to its customers and have complete knowledge and functioning
of the related departments. Besides this, specific objectives of internship are as
follows:

 To know about various financial products and services provided by the bank.

 To learn how to handle customer grievances regarding the various products

and services provided by the bank.
 To examine various front office and back office activities being performed in
Customer Service Department.

 To develop the communication and interpersonal skills by interacting with the

customers in CSD.

1.3 Methodology

Methodology refers to a contextual framework for research, a coherent and logical

scheme based on views, beliefs and values that guides choices researchers make. This
study is mostly descriptive in nature where the facts and findings are presented in a
systematic manner. In this internship report, primary and secondary information were
used. The primary data has been acquired through practical knowledge gained
throughout the internship period. Direct involvement in the daily activities of the bank
and communication with the supervisor, staff and customers serve as the primary
sources of data in this study.

Furthermore, the secondary data refers to data that is collected by someone other than
the primary user and as such the secondary data used in this study includes annual
report of Prime Commercial Bank Limited, website of NRB, and website of PCBL.
 3

The secondary sources of data were great sources of information as they were official
websites and published materials of the relevant organization.

1.3.1 Selection of Organization

Organization selection is a crucial factor in an internship because it is the place where

internee gains practical knowledge, builds up confidence, develops interpersonal skills
and so on. The knowledge of real world scenario is obtained from the organization.
For selecting this organization curriculum vitae, citizenship and recommendation
letter from college are provided to various banks. In this process, Prime Commercial
Bank Limited had accepted intern application for the internship and given me the
opportunity to get familiar with the bank. Intern was to get the opportunity to work as
intern at the bank in Samakhushi branch.

1.3.2 Placement in Organization

Intern was allowed to complete internship from the Prime Commercial Bank Limited,
Samakhushi branch. During the internship period, internee was placed in the customer
service department. The supportive and friendly environment in the organization
helped the intern to complete the internship period through the proper guidance of the
staffs of the customer service department. Throughout the internship period, internee
got an opportunity to deal with the sort of banking issues prevailing in the customer
service department.

1.3.3 Duration

The duration of internship of BBM program as per the faculty of management, TU is

8 weeks. Intern completed this duration in the customer service department of the
bank. The internship program has been very fruitful for the internee to get real life
experiences of the banking activities of the organization.

1.3.4 Activities Performed

During the internship period, intern was placed in the customer service department
of Prime Commercial Bank Limited, Samakhushi branch. The activities performed
by the intern at the bank are as follows:

 Opening personal and company account.

 4

 Helping the customers in filling up the various forms like account opening
form related to personal account, joint account, fixed deposit form, cash
deposit slip, cheque deposit slip etc.
 Issuing of cheque books, ATM cards and account statements.

 Doing various bank office work like cheque binding, filing of documents,
register entry, checklist filing etc.
 Dealing with customer grievances and trying to solve their queries.

 Performing other tasks such as photocopy, filing, register maintaining of

account opening and cheque etc.

1.4 Limitations

 It does not give the detail view of the overall functioning of the bank since
most of the information is collected through personal experience and
observation.

 Time allotted for the internship was 8 weeks, so detailed analysis was not
possible.

 Since the study was focused mainly on one topic, collected information could
not be presented.
 Banks staff’s were very busy with their own work so they had little time to
interact with the internee.
 5

CHAPTER II

INTRODUCTION TO THE BANKING INDUSTRY

2.1 Meaning of Bank

Bank is the financial intermediary that accepts deposits and channels those deposits
into lending activities, either directly or through capital markets. The term bank was
derived from an Italian word banca or from French word banque both meaning bench.
A bank is a financial institution that provides a system for easily transferring money
from one person to another. A bank is a financial intermediary licensed by the
government to perform financial transactions. Its primary activities include borrowing
and lending money. It borrows money by accepting funds deposited on current
accounts, by accepting term deposits and by issuing debt securities such as bank notes
and bonds. It lends money by making advances to customers on current accounts, by
making installment loans and by investing in marketable debt securities and other
forms of money lending.

Banks are financial institutions that accept funds in the form of deposits repayable on
demand or in short notice. A bank is an organization whose principle operations are
concerned with the accumulation of temporarily idle money of the general public for
the purpose of advancing to others for expenditure.

A bank is a financial institution that makes a profit by taking people’s deposit and
lending that deposit or money at a profit. In other words, the institution chargers more
money for its loans than it pays on deposits. Banks are a very important part of the
economy because they provide vital services for both consumers and businesses. As
financial services providers, they give customers a safe place to store their cash.
Through a variety of account types such as savings account, fixed deposits etc one can
conduct routine banking transactions like deposits, withdrawals, check writing, bill
payments and so much more. Banks also provide credit opportunities for people and
corporations. This increases economic activity in the country increasing employment
and economic growth of the country.
 6

2.2 Origin of Bank

The modern banking system has been originated in Italy. The first bank was called the
Bank of Venice and was established in the year 1157 AD in Venice, Italy to finance
the monarchy in wars. It is said that moneylenders in Northern Italy originally traded
in open areas, with each lender working from own bench or table. A simple form of
banking was practiced by the ancient temples of Egypt, Babylonia and Greece, which
loaned at high rate of interest for the gold and silver deposited for safekeeping.
Establishment of Bank of England in 1694 AD was a great development in the
banking sector. The modern commercial banking institutions had been developed after
the enactment of the Banking Act in 1833 AD, which provided freedom for the
establishment of commercial banks in the form of Joint Stock Company. The lack of
increase in the circulation of notes leads to the need for modern banking. The modern
th
banking system was fully developed in the 19 century after the establishment of
commercial banks under company act in the leading countries of the world.

2.3 History of Banking in Nepal

Historical evidences show that money business existed in Nepal before the
establishment of a modern bank. A notable example of old banking activities can be
found historically in 880-897 AD. That time of the year had a famous merchant in
Nepal by name of Shan Khadara who was successful in paying clearly all the
outstanding debts of the country and he introduced one new year by name of ‘Nepal
Sambat’ on that happy occasion. Available information indicates that in 723 AD,
th
Guna Kama Dev borrowed money to rebuild Kathmandu. Towards the close of 11
century Jayasthithi Malla ruler of Kantipur classified the list included “Tankadhari”
meaning money dealers. Tankadhari were authorized to deal in money business .

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.
 7

Nepal Rastra Bank was established under the NRB Act 1955 in 1956AD. After the
establishment of the NRB, three financial institutions were developed under full
ownership of the government. They were Nepal Industrial Development Corporation
(NIDC in 1959 AD), Rastriya Banijya Bank (RBB in 1966 AD) and Agriculture
Development Bank in 1968 AD.

After the financial liberalization in Nepal in the 80s, a fourth commercial bank in
Nepal, or the first foreign joint venture bank was set up as Nepal Arab Bank Ltd (now
NABIL Bank Ltd (in 1984 AD. Currently there are 27 commercial banks, 24
development banks, 22 financial companies and 90 micro credit development banks
in Nepal. Nepal Rastra Bank is the central bank of Nepal and is the monetary,
regulatory and supervisory body of all commercial banks, financial institutions and
micro finances in the country.

2.4 Meaning of Commercial Bank

A commercial bank is a financial institution which accepts deposits from the public
and gives loans for the purpose of consumption and investment to make profit.
Commercial banks are one of the major financial intermediaries whose primary
function is the transfer of monetary resources from the savers to the users. These
banks are established to earn profit. They have the widest range of activities and they
provide a large amount of money supply. The difference between the rate of interest
allowed on deposits and charged on loans granted is the main source of earning of
commercial banks. They perform several functions as various types of deposit
facilities like the current, saving and fixed deposit, letter of credit, loans, locker
facility and so on.

Commercial banks are those banks which are established to perform commercial
functions except those which are established for specific purpose like development
banks, co-operatives etc. There has been a steady rise in the number of commercial
banks in the country and as such there exists 27 commercial banks in the country at
present. With the increase in the number of commercial banks, the competition among
them has also increased.
 8

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 function of commercial bank is to accept deposits
from customers under various accounts. It operates fixed deposit, saving and current
account to provide different banking services to its customers.

 Fixed Deposit Account: under this account, amount is deposited in the bank
for fixed period of time. Bank allows highest rate of interest to this account
and the interest rate fluctuates depending on the time period for the deposit.

 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 function of both fixed and current
accounts. There are no restrictions in withdrawal or deposit. But such
withdrawal facility is limited. A saving account is more suitable for
individuals.

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 shot 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
 9

allows him to draw the money 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 country.

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 interest,
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 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 these obstacles and promote economic growth and development.
The roles of a commercial bank 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 country.
 10

2.4.2.2 Financing Trade

The commercial banks help in financing both internal and external trade. The banks
provide loans to retailers and wholesalers 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 Generating 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 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. Thus the banks not only
help human capital formation but also in increasing entrepreneurial activities in the
 11

country. This helps in improving the employment rate in the country which in 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.
 12

CHAPTER III

INTRODUCTION OF PRIME COMMERCIAL BANK

LIMITED

3.1 Introduction
Prime Commercial Bank Limited is a commercial bank of 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 Kalmalpokhari, Kathmandu which provides entire
commercial banking services. Prime Commercial Bank Limited was incorporated in
September 2007 as the 21st commercial bank in Nepal. The bank is a Category ‘A’
Financial Institution registered under the “Banks and Financial Institutions Act” of
Nepal. It has been established by prominent business personnel and professionals
from diversified areas with a prime objective of providing 'Banking Services to
Everyone' in the country where still large number of population are deprived of
Banking Services.

The bank has established itself as an emerging player in financial sector with focus in
customer service excellence maintaining excellent relationship with valued customers.
It is counted among the top 10 commercial banks in Nepal by independent raters and
publications in the country. The bank has been gaining customer trust and loyalty by
proving its services through its 48 branches inside the Kathmandu valley and 143
branches outside the Kathmandu valley. Prime Commercial Bank Limited is
committed to opening its doors of opportunities to all its stakeholders through quality
products and services to customers, satisfactory return to stakeholders, attractive
incentives to employees and service to the community. Its objective is to stimulate the
Nepalese economy and take it to newer heights. The major concern of the bank is to
facilitate the national economy by making customers life easier by providing various
banking services. It also aims to facilitate the nation’s economy and to become a
major competitive force globally. The policies of Nepal Government and Nepal Rastra
Bank rules and regulation preside over Prime Commercial Bank Limited. Prime
Commercial Bank Limited is able to record a net profit of NRs 1.01 billion during the
fiscal year 2076/2077.
 13

Prime Commercial Bank Limited is a commercial bank that is constantly trying to

provide new products and services to its customers depending on their needs and
requirements as the bank deeply cares and values its customers. The bank is
constantly trying to innovate and provide quality services to the customers.

3.2 Vision

To become a significant contributor to the economic development of Nepal by

distinguishing the bank as an efficient, competitive, safe and top quality financial
institution.

3.3 Mission

To offer financial services and become the bank of choice by dedicating the progress
and growth of the institution to the community, employees, customers and
stockholders by promoting economic growth and becoming a responsible corporate
citizen.

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 growth. The capital structure and
breakdown of its components are given below:

Table 3.1
Capital structure (As on …..)

Core Capital Tier I Amount (Rs)

Paid up capital 2,245,746,000
Statutory General Reserve 99,140,866
Retained Earnings 65,591,620
Unaudited Current Year Profit 370,015,266
Total Core Capital 2,780,493,753
 14

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:

 Providing excellent customer service by offering personalized quality services

and products.

 To build an efficient, market-driven, customer focused institution with good

corporate governance structure.
 Following strict risk-control mechanisms.

 Maintaining the highest standards in all relationships with customers,

suppliers, environment and community.
 Prudent expansion and vigilance.

3.6 Current Board of Directors of Prime Commercial Bank Limited

There are currently 7 members as BOD of Prime Commercial Bank Limited as
presented in the table below:

Table 3.2
Board Members
(As on ……)

Board of Directors Position

Mr. Rajendra Das Shrestha Chairman
Mr. Udaya Mohan Shrestha Director
Mr. Narendra Bajracharya Director
Mr. Gajendra Bista Director
Prof.Dr. Mangala Shrestha Independent Director
Mr. Prachandra Man Shrestha Director
Mr. Manoj Poudel Director
 15

3.7 Organizational Structure of Prime Commercial Bank Limited

Figure 3.1
Organizational Structure

BOARD OF DIRECTOR

CHIEF EXECUTIVE OFFICER

GENERAL MANAGER

DE PUT Y GE NERAL DE PART ME NT AL

MANAGER HE ADS

CREDIT HEAD TRE ASURY HE AD HR HEAD OPERATION HEAD

BRANCH MANAGER

SUBORDINAT ES

SUPPORTING STAFF
 16

3.8 Management Team

Table 3.3
Management Team
(As on …..)

Management Team Position

Mr Narayan Das Manandhar Chief Executive Officer
Mr. Sanjeev Manandhar General Manager: Corporate
Mr. Amrit Charan Shrestha General Manager: Operations
Mr. Moti Kaju Tuladhar Deputy General Manager: Corporate

3.9 Branches of Prime Commercial Bank Limited

The head office of Prime Commercial Bank Limited is located in Kamalpokhari,

Kathmandu. There are a total of 48 branches of the bank within the Kathmandu valley
whereas there are a total of 143 branches of the bank outside the Kathmandu valley
meaning the bank has a total of 191 branches all over the country. The intern did his
internship from the Samakhushi branch in Kathmandu.

3.10 Major Products and Services

The banks 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 Prime Commercial Bank Limited are as follows:

Prime Gold Saving

Savings account targeted to customers from various sectors. Minimum balance should
be twenty five thousand with services such as on demand statement, free cheque
book, free internet banking etc.
 17

Prime General Saving

A saving account specifically for Nepalese citizens with minimum balance of two
thousand five hundred. Free of cost facilities such as Any Branch Banking System
(ABBS), internet banking, balance certificate, payment of NTC bills at counter etc.

Prime Premium Griha Laxmi Saving

Savings accounts geared towards any Nepalese female citizen with privilege facilities
such as 50% off on ATM cards (One time), 50% discount on remittance fees etc.

Prime Jeevan Surakshya Bachat Khata

A savings account for Nepalese individual of age group 18 years and above with
product features such as accidental insurance, critical illness insurance and
hospitalization insurance.

Prime Saral Bachat Khata

Eligible for Nepalese individuals of age group 18 years and above with insurance
package of both accidental insurance and hospitalization insurance along with free of
cost facilities such as demat account for two immediate family members, cheque
book, internet banking etc.

Prime Jestha Nagarik Samman Bachat Khata

Eligible for Nepalese senior citizens of age group 50 years and above with insurance
package, free of cost facilities like cheque book, mobile bank, balance certificate and
privilege facilities such as debit card issuance fee 25% waiver on standard tariff
charge, locker margin 25% waiver of standard tariff charge etc.

Prime Student Saving

Students of plus two or higher colleges of any faculty are eligible for this savings
account. If the student is under the age of 16 then birth certificate is required instead
of citizenship certificate. No minimum balance is required for using this saving
account plus the holders of this account are provided with certain free of cost services
like mobile banking, e-banking, cheque book etc.
 18

Prime Teacher Saving

Salaried teachers of schools, colleges or any education facilities are eligible for this
savings account provided they have letter from employer or office I.D. card is
obtained for authentication purposes.

Prime General Employee Saving

Prime bank provides this product to salaried employees. Customers looking to use this
product must provide the bank with the letter from their employer or their office I.D.
for authentication and verification purposes.

Fixed Deposits

Prime Bank provides fixed deposits depending on the time period such as 3 months, 6
months, above 6 months to below 9 months, 9 months and above, 1 year and above, 2
years and above for institutions customers and up to 1 year and above for individual
customers and the interest rate varies depending on the time period of the fixed
deposits from 5% to 7.5%.

3.10.2 Loan

The various types of loan can be discussed as below:

Home Loan

This loan is provided to customers who want to buy or construct their own home. This
product is targeted to salaried employees, entrepreneurs and fixed income group with
rd
maximum amount of finance to be 2/3 of the total construction or purchase price of
the house. With the help of this product the bank is trying to fulfill the wishes of all
Nepalese families of owning their own personal home by provide affordable loan
schemes for the Nepalese households.

Auto Loan

Prime Bank launched a ‘Prime Vehicle Scheme’ to purchase new vehicle as well as
second hand vehicle not older than 5 years from the date of manufacture of the
vehicle. The bank provides financing up to 80% of the financing cost.
 19

Education Loan

To achieve your dream for higher education, Prime Commercial Bank offers ‘Prime
Scholar Loan’ for future scholars. By this product, the bank assists their customers to
achieve higher degree from the country & abroad. The major features of this loan are
very low and competitive interest rate, quick processing and prompt approval, 5 years
to repay the loan after the final disbursement. The customer should be a Nepali citizen
with at least a plus two level degree. Expenses that can be included on loan are fee
payable to college/university as tuition fees, examination fees, library, laboratory fee,
residence fee and other related fees.

Mortgage Loan

In order to meet the personal financing needs, all you have to mortgage your personal
fixed assets property (land/land & building) to bank. It is easy, simple and hassle free
with quick turnaround time. There are two types of mortgage loan provided by the
bank which are mortgage term loan and mortgage overdraft loan. Both the type of
loans are provided for the purchase of consumer durable, medical treatment, marriage
ceremony, and starting new business and to finance personal expenses etc.

Equipment Loan

This is a simple facility to cater the financing needs of doctors and contractors in
order to setting up business. It is easy, simple and hassle free with quick turnaround
time. The bank extends the equipment loan for the purchase of equipment/ machinery.
Professionals – doctors and contractors bearing a Nepalese citizenship with reliable
source of income are eligible for this loan.

Loan against Shares

You do not have to sell your securities, just pledge them with the bank and get
overdraft facility up to a value determined on the basis of market value of securities
pledged by you. This facility will allow flexibility in funds withdrawal and repayment.
Individuals, firms and companies are eligible for the loan. The bank advances loan
against public and/ promoter shares of Public Ltd. companies listed in Nepal Stock
Exchange (NEPSE).
 20

3.10.3 Other Services

ATM Facility

The bank provides ATM facility to its account holders. Visa debit cards with PIN
(Personal Identification Number) are issued to customers to enable 24 hour ATM
facility. The ATM services provided by the bank are cash withdrawal, fast cash,
statement or balance enquiry etc.

Locker Services

The bank also provides lockers services to its customers. People having valuables like
gold, silver, documents etc can use the bank’s locker services with special code
number keys for the safety with ample space with the bank.

Remittance

Remittance is a payment of money that is transferred to another party. It is a sum of

money sent by someone working abroad to his or her family back home. The bank
provides wire transfer which is a highly secure and efficient method of fund transfer
which helps customers transfer money from your account to another account all across
the globe. The bank also provides customers to get a demand draft in a foreign
currency in Indian Rupee, US Dollar and Pound Sterling. Customers can send the
demand draft to the beneficiary, who receives payment from drawee bank on
presenting the draft. Customers can receive payment from all the branches sent via
various services such as MoneyGram, Western Union Money Transfer, IME, Himal
Remit etc.

Mobile Banking

Prime mobile banking is an easy banking system that allows customers to use banking
facility anytime and anywhere through your own mobile phone. One can do various
banking activities and enjoy services as fund transfer, enquiry such as mini statement,
balance enquiry, statement request etc and transaction alert and utility payments.
 21

Any Branch Banking System (ABBS)

This facility allows customers of the bank to operate their account from any of the
bank’s branches. Customers can deposit or withdraw money and acquire any
information from any branch of the bank.

Bank Guarantees

It is a type of financial backstop offered by the bank to its valued customers. The bank
guarantee means that the lender will ensure that the liabilities of a debtor will be met.
In other words, if the debtor fails to settle a debt, the bank will cover it.

Credit Card:

Prime Visa Credit Card is a payment card that enables you to pay a merchant for
goods and services you purchase and will serve you as a source of great value and
extreme convenience.
 22

CHAPTER IV

ANALYSIS OF ACTIVITIES PERFORMED AND

PROBLEMS SOLVED

4.1 Analysis of Activities Performed

Customer service is a department of a company is that is concerned with customer

service. It is a direct one-on-one interaction between a customer making a purchase
and the representative of the company that is selling it. It is the front desk of any
organization which provides all the necessary information to the customers. For any
organization, it is the main and most important department which needs to deal with
customer more than any department in the bank. It is one of the busiest departments in
the banks and it is the very place which makes an early impression to the clients. The
image and reputation of the bank depends upon effective functioning of the
department. It is the first place where the customers first get the service. As different
activities such as opening new accounts of customers, closing existing account,
issuing cheque books, balance inquiry and providing statements, issuing debit cards ,
etc. are performed.

It is very important to know that the highly satisfied customer becomes loyal and buys
the organization’s new products, pays less attention to competing banks and is less
effective to price. Having a significant number of this kind of customers is only
possible through the efficient functioning of Customer Service Department (CSD) of
any organization. It would then not be in appropriable to say that this department is
the key to success of any organization. Customer service can be maximized by using
convenient days and hours of operation, using new technology, excellent online
service, customer service training and by using other techniques and equipment.

Excellent customer service can improve the bank's ability to lure affluent prospects,
elevate the bank's profitability, lower bank operation costs, and create greater
customer loyalty. When a bank invests in training its customer service staff,
impressive results may follow.
 23

4.1.1 Accounts Opening

A bank account is a financial account maintained by a bank or other financial

institution in which the financial transactions between the bank and a customer are
recorded. Account opening is one of the most important tasks performed in the
customer service department. In order to receive banking services, a customer has to
open a bank a/c first. Each financial institution sets the terms and conditions for each
type of account it offers, which are classified in commonly understood types, such as
savings accounts, current account, loan accounts etc. Once the account is opened, the
customers are provided with an account number. An account number is a set of
numbers which reflects the identities of customer in the bank. Account opening in
bank requires various necessary documents such as citizenship, birth certificate. I.Ds,
and contains various procedures. A customer can use the banking system only after
opening an account in the bank.

4.1.2 Dealing with the Customers

The customer service department is where you interact with the customers directly.
Intern was assigned the responsibility of hearing the customers queries and grievances
and providing appropriate solutions to the said problems. Customers could have
several queries such as opening a new account, closing the existing account, making
enquiries relating to ATM cards and other services etc.

4.1.3 Handling Telephone Calls

Many calls are made by the customers, clients and official staffs for various reasons.
Making and receiving phone calls is also a major task performed in customer service
department. Generally phone calls made to the customers was regarding updating
KYC form and providing their financial information. Intern also was tasked with
making phone calls to customers regarding the activation of their accounts as they
were dormant so the customers were asked bring their citizenship and a photo for the
activation of their bank account.
 24

4.1.4 Issuing Cheque Books

A cheque refers to a negotiable instrument that contains an unconditional order to pay

a certain sum mentioned in the instrument, from the drawer’s account, to the person to
whom it is issued, or to the order of the specified person or the bearer. PCBL provides
cheque book to its customers with the first two days of opening a new account in the
bank. Internee also worked in cheque inventory i.e. providing customer new cheque
book and keeping their entry.

4.1.5 Filling KYC Form

KYC stands for “Know Your Customer”. It is a process by which banks obtain
information about the identity and address of the customer. This process helps to
ensure that the bank’s services are not misused. As per the direction of the NRB,
separate KYC form must be filled to store the detailed information of the customer.
The internee also generated the KYC code in the bank’s system by filling the
information provided in the KYC form in the computer.

4.1.6 Issuing ATM Cards

An ATM card is a payment card or dedicated payment card issued by a financial

institution which enables a customer to access their financial accounts via its and
other’s automated teller machines and to make approved point of purchase retail
transactions. ATM cards can be used for performing transactions such as deposits,
cash withdrawals, obtaining account information etc. The customers are required to
fill a form for the ATM card service. It usually takes about 15 days to get an ATM
card from the date of filling the form. Intern was asked to issue ATM cards to
customers after verifying the customer’s signature. The customers were then sent to
counter number 3 for the pin that is required for the activation of the ATM card.

4.1.7 Issuing Account Statements

An account statement is a periodic summary of account activity with a beginning date

and an ending date. Customers in the PCBL were to fill a statement requisition slip in
order to get a statement account. Firstly, intern was tasked with issuing statement
requisition slip to the customers. When the requisition slip was completed, statement
was printed.
 25

4.1.8 Filling Demat Account

A demat account is short for dematerialization account that is used to hold shares and
securities in electronic format. The purpose of opening a demat account is to hold
shares that have been bought or dematerialized thus making share trading easy for the
users during online trading. The demat account in the bank also included “Mero
Share” and CRN form. The customers were to fill in the necessary information and
the demat account would be activated roughly 30 days after filling the form.

4.1.9 Filling Other Forms

Banks provide various different services to the customers so there were many
different forms that needed to be filled in order to use such services such as e-banking
form, mobile banking form, customer request form, signature change form and many
more. Furthermore, the intern was also required to help customers to fill cash deposit
slips and cheque deposit slip and even cheques if the customers asked them to.

4.1.10 Filing and Indexing

There are a lot of forms that need to be maintained after they have been filled by the
customer. After the completion of filling various different forms such as account
opening form, mobile banking form, cheque requisition slip, ATM form, demat
account etc the intern was tasked with filing the different forms in a record file and
were processed to be stored in a tab rag in a sequential way. It was a really time
consuming and back-breaking work but it was very important to maintain the forms in
a sequential manner in order to make sure that the forms don’t get misplaced or lost.

4.2 Problems Solved

As in all facets of life, problems arise and it was the same in the customer service
department of the bank. One of the main functions of the CSD is to solve the
grievances and problem faced by the customers. During the internship period, the
following problems were solved.

 One of the most frequent tasks performed by the intern was to help the customer
fill the account opening form. Many customers didn’t know how to fill the form
properly as some didn’t understand the English language or the terminologies
used in the form. To solve this problem, as an intern, they were made clearly
 26

understood about the terminologies used by translating in simple and

understandable language which could help them in filling the form.

 The intern also had to help many customers in filling the demat form as well as the
form was very long and the customers had to fill in a lot of information. In the
form, the customers also had to make a map of their home from the bank so the
intern in some occasion had to make the map by themselves by asking the
customers the directions to their home.

 Intern had to issue cheque to a customer and all the process of issuing were
completed like entry in the register, approval of the supervisor and so on. As the
customer had to withdraw some cash as well, they waited in the counter while
forgetting about the cheque in the customer service department and after they
withdrew some cash they left without taking their cheque book. To solve this
problem, the intern had to call the customer after getting the number through
checking the bank system and the customer came back to get their cheque book
back.

 In the bank many people had dormant accounts. To manage this problem the
intern was tasked with calling the customers with dormant account. The customers
if the account were individual were asked to bring their citizenship and in case of
minor, birth certificate along with a passport size photo whereas if it were
company account then they were asked to bring their company stamp along with
the necessary documents to reactivate their accounts.

 In the bank, the internee was tasked with marketing duties as well. Intern had to
talk to people one on one and convince them to open bank accounts in the bank.
This task took a lot of convincing but through proper marketing tools the intern
was able to bring in 11 new customers for the bank through persuasion and
communicating to the customers about all the new products and services offered
by the bank.

 During the internship there were many aggressive customers who were very
difficult to deal with. Many a times, the interns were cursed at but with the
cooperation and guidance from the senior staff members, such customers were
handled properly.
 27

 During the internship there were instances where customers used to

complain about account debit without their knowledge about the transaction. The
intern used to hand over “non-dispense of cash but a/c debited form” and inform
the bank’s authorized staff.

 The bank was crowded with customers during peak hours so it was difficult to
provide immediate services to the customers so internee helped the bank staffs in
idle works such as photocopy, filling documents, etc so that the staff can focus on
the important work.
 28

CHAPTER V

CONCLUSION AND LESSON LEARNT

5.1 Conclusion

The main objection of internship is to obtain the professional experiences and

supplement the theoretical knowledge that has been learnt so far. The internship
program not only provides practical experience to students but also helps to make
necessary improvement in order to fit in their desired field. Internship in Prime
Commercial Bank Limited helped the intern to learn more about the PCBL but also
the banking sector as a whole. The internee realized the excellent services provided
by the bank to its customers and also the working environment of the bank.

Internship was a valuable learning experience for the internee as it has broadened the
intern’s knowledge, vision, ability, management skill and confidence to perform in
real working environment. It was a great chance to learn about the banking sector. The
practical cases are rather different from what we study in theoretical sense.
Furthermore, the intern has also become more versed to socialize with diverse group
of people, to deal with the senior staff, and to deal with fellow interns so as to make
the working environment more cheerful, pleasant and friendly. Moreover, the
supervisor were very helpful and friendly in the internship program which made the
intern very motivated to work honestly and wholeheartedly.

Although the time period was always a obstacle in learning more about the banking
sector, it was still a nice experience of learning in such a short period of time at
PCBL. Thus, the knowledge and experience endowed with this study will surely be
constructive towards the future of intern’s career and professional life.

During the internship, the internee also realized that the bank is committed in
providing quality and timely services to its customers and strives for the overall
growth and development of the country. The bank aims to reach every nook and
corner of the country in order to increase the quality of life of Nepalese people all
over the country by providing the customers with vital and life changing banking
services.
 29

The internship program was a real eye opener and a small glimpse of what the real
world really looks like. It was like a practice session for future professional
endeavors. This experience should greatly help the internee in future real life
employment work. The learning experience was very helpful and educational due to
the guidance and supervision of the staff of the bank. The internee will surely cherish
this experience for the rest of his life.

5.2 Lesson Learnt

It has been a great working experience at PCBL at Samakhushi branch, where the
intern gain a lot of practical knowledge about banking sector and its activities which
will surely be beneficial for the future career prospects of the intern. The duration of
the internship lasted for around 8 weeks and the internee were to learn various
different thing about the banking sector. The most important lesson the intern learnt
during the internship period is how to perform the various tasks in the organization, to
cope with real life working environment etc. Furthermore, the internship also helped
in shaping his character and personality to a greater extent. Some of the lessons learnt
during the internship period are as follows:

 The working process of dealing with customers while providing service and
handling complaints and queries that should be satisfactory for the customers.

 Essential qualities required for being a crucial part of an organization such as

honesty, sincerity, diligence, punctuality, confidentiality as well as working under
pressure were learned.

 Role of communication and inter-personal skill while handling the customer and
dealing with their grievances is a very valuable skill learnt during the internship.

 The importance of a friendly environment that makes the working place more
enjoyable giving all the members an opportunity to know each other and develop
friendly relations with the members.

 Learned how to use the photocopy machine and scanner to copy, can the
documents for documentation purposes.
 30

 Learned that the importance of teamwork and cooperation in an organizational

setting is very important in completing the work in a timely and effective manner.

 The internship helped the intern to build self confidence in communicating with
customers and staff alike.
 The intern realized that working in an organization is a lot more difficult and
grueling than anything the intern had done before and it takes a lot to keep oneself
motivated to perform one’s duties and responsibilities in a proper manner.
 31

Bibliography

Risal, N., & Poudel, S. (2020 ). Banking Law & Regulation. Kathmandu: Samjhana
Publication.
Thapa, K. (2019). Banking Law & Regulation. Kathmandu: Khanal Publication.

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