RECOMMENDATION OF COLLEGE
i
RECOMMENDATION OF ORGANIZATION
ii
DECLARATION
I hereby, declare that the internship report entitled “An Internship Report on Customer
Service Department of Prime Commercial Bank Ltd” submitted to College of Applied
Business, Office of Dean, Faculty of Management, Tribhuvan University is my original
work done in the form of partial fulfillment of the requirement of Bachelor in Business
Administration (BBA) under the supervision and guidance of Mr. Bashu Dev Dhungel.
_______________________
Sneha Shrestha
Roll No.: 12078/13
T.U. Registration No: 7-2-360-75-2013
iii
ACKNOWLEDGEMENT
I take this opportunity to express my profound gratitude and deep regards to the Faculty
of Management, Tribhuvan University for providing internship program in the final
semester for the student of Bachelor of Business Administration.
I would like to thank to Mr. Ramesh Pandey, Principal, College of applied Business for
providing me this opportunity to gather such practical knowledge and Mr. Basu Dev
Dhungel, Faculty Member, College of Applied Business for his invaluable guidance,
comments and suggestions throughout the course of the project.
The internship opportunity I had with Prime Commercial Bank, Sorakhutte was a great
chance for learning and professional development. Thus, I would like to express
gratitude to Mr. Geha Ranjan Joshi, Branch Manager and Mrs. Shrijana Shakya, Head
Loan Department for providing me the platform to work as an intern. I would like to
thank Mrs. Binita Subedi, Operation In-charge, who provided me the placement in the
required department in the organization. Also, I would like to express my sincere
appreciation to Mr. Nimesh Man Pradhan, Ms. Sazada Shrestha and Mrs. Jenny
Shrestha for their support, co-ordination, and valuable suggestion and support.
My deepest thanks to all the staffs of PCBL and staff of College of Applied
Business(CAB) who have supported me during my period of internship.
Lastly, I would like to express my sincere appreciation to all the people who have
contributed in one way or other for the successful completion of this report.
iv
TABLE OF CONTENTS
RECOMMENDATION OF COLLEGE ......................................................................... i
RECOMMENDATION OF ORGANIZATION............................................................ii
DECLARATION ..........................................................................................................iii
ACKNOWLEDGEMENT ............................................................................................ iv
TABLE OF CONTENTS ............................................................................................... v
LIST OF TABLES ......................................................................................................viii
LIST OF FIGURES ...................................................................................................... ix
LIST OF ABBREVIATIONS ........................................................................................ x
Chapter One ................................................................................................................... 1
INTRODUCTION ..................................................................................................... 1
1.1
Background of the Study ............................................................................. 1
1.2
Objective of the Study ................................................................................. 2
1.3
Methodology................................................................................................ 2
1.3.1 Organization Selection .............................................................................. 2
1.3.2 Placement .................................................................................................. 3
1.3.3 Duration .................................................................................................... 3
1.3.4 Activities ................................................................................................... 3
Chapter Two................................................................................................................... 4
INTRODUCTION OF THE INDUSTRY ................................................................. 4
v
2.1 Background of Bank ........................................................................................ 4
2.2 Definitions of Bank .......................................................................................... 5
2.3 History of Banking in Nepal ............................................................................ 5
2.3 Introduction to Commercial Banks .................................................................. 6
2.3 Challenges, Opportunities faced by Commercial Bank in Nepal .................... 7
2.3.1 Threat of New Entrant .............................................................................. 7
2.3.2 Power of Suppliers .................................................................................... 7
2.3.3 Power of buyer .......................................................................................... 8
2.3.4 Availability of Substitutes......................................................................... 8
2.3.5 Competitive Rivalry .................................................................................. 9
Chapter Three............................................................................................................... 10
INTRODUCTION OF THE ORGANIZATION ..................................................... 10
3.1 Brief History .................................................................................................. 10
3.1.1 Vision ...................................................................................................... 10
3.1.2 Mission.................................................................................................... 11
3.2 Business Volume ........................................................................................... 11
3.3 Products and Services .................................................................................... 12
3.3.1 Consumer Loan ....................................................................................... 13
3.3.2 Business Loan ......................................................................................... 13
3.3.3 Deposits................................................................................................... 15
vi
3.3.4 Other Services ......................................................................................... 15
Chapter Four ................................................................................................................ 16
ANALYSIS OF THE ACTIVITIES ........................................................................ 16
4.1 Customer Service Department ....................................................................... 16
4.2 Problems Identified ........................................................................................ 21
4.3 Problem Solved .............................................................................................. 21
4.4 SWOT Analysis of PCBL .............................................................................. 22
Chapter Five ................................................................................................................. 25
CONCLUSION (LESSONS LEARNT) .................................................................. 25
5.1 Conclusion ..................................................................................................... 25
5.2 Lessons Learnt ............................................................................................... 26
BIBLIOGRAPHY .................................................................................................... 27
APPENDICES ......................................................................................................... 29
vii
LIST OF TABLES
Table 1.1 ........................................................................................................................ 2
Table 3.1 ...................................................................................................................... 12
Table 3.2 ...................................................................................................................... 14
Table.3.3 ...................................................................................................................... 15
Table 3.4 ...................................................................................................................... 15
Table 4.1 ...................................................................................................................... 22
viii
LIST OF FIGURES
Figure 2.1 ....................................................................................................................... 9
ix
LIST OF ABBREVIATIONS
ASBA: Application Supported by Block Amount
ATM: Automated Teller Machine
BR: Base Rate
CAB: College of Applied Business
CDD: Customer Due Diligence
CSD: Customer Service Department
ECC: Electronic Cheque Clearing
KYC: Know Your Customer
LC: Letter of Credit
NEA: Nepal Electricity Authority
NRB: Nepal Rastra Bank
PCBL: Prime Commercial Bank Limited
x
Chapter One
INTRODUCTION
1.1Background of the Study
A college education will help a graduate into a profession by conferring a degree, which
demonstrates an academic proficiency in various theoretical and practical examples of
ways that a job might be performed. The education we get in college will provides us
the theoretical knowledge that helps us to grow in our professional life.
An internship is a period of work experience within an organization or company,
usually undertaken by university students or recent graduates who is looking to gain
relevant skills and experience in a field. Internships can be full time or part time, paid
or unpaid, and can last from week to a year, depending on the department and company
in question.
In today’s competitive market only having good degree is no longer enough. Thus,
more and more students look for additional experience to give them the edge when
applying for graduate positions. Internship will help gain invaluable professional
experience as well as will help the intern of grow their self-confidence and self-esteem.
Thus, understanding the needs and benefits of internship, Tribhuvan University has
incorporated internship program for the partial fulfillment of Bachelors in Business
Administration(BBA). The main aim of this internship is to provide a student with a
real life on the job exposure and an opportunity to apply the theoretical concepts in real
life situations. Consequently, in accordance with the curriculum of TU’s BBA program,
an internship program, of 12 weeks at Prime Commercial Bank Ltd (PCBL), Sorakhutte
Branch was undertaken by the intern.
1
1.2 Objective of the Study
As a partial fulfillment of the requirements of the Bachelors in Business Administration
program of TU, a twelve-week internship was done at Prime Commercial Bank Ltd.,
Sorakhutte Branch in Customer Service Department(CSD).
The major objective of this internship is to understand the real working environment of
organization, and to implement academic knowledge in practical field. The other
subsequent objectives are listed as follows:
•
To understand the operation flow of Customer Service Department at PCBL.
•
To experience a working relationship with professionals.
1.3 Methodology
The following section indicates the methodology used to prepare the internship report
are explained as follows:
1.3.1 Organization Selection
For completing the internship program, banking sector was selected as to match the
intern’s future prospect in the respective sector. The organization was selected seeing
the prospect of learning environment. The following table showcases the detail of the
organization where the internship was done.
Table 1.1
Organization Selection
Sector
Banking and Financial Institution
Name of the Organization
Prime Commercial Bank Ltd
Address
Sorakhutte, Kathmandu
Head Office
Kamalpokhari, Kathmandu
2
1.3.2 Placement
For the internship, the intern was placed in Sorakhutte Branch of PCBL. During the
period of three months of internship, the intern was placed in Customer Service
Department (CSD).
1.3.3 Duration
The internship program for the intern started from 3rd May 2017 till 25th July 2017 that
is in total twelve-weeks. The working hours started from 9:30 am to 5:30 pm on Sunday
to Thursday and 9:30am to 2:00 pm on Friday.
1.3.4 Activities
During the period of the internship, the intern was assigned various tasks. The different
activities performed are as follows:
•
Dealing with customer queries and grievances regarding balance enquiry,
opening of new account, issues faced in banking facilities.
•
Searching the Nepal Electricity Authority (NEA) payment amount using
Intranet.
•
Making cheques.
•
Issuing cheques, ATM card and ATM pins, account statements
•
Keeping record of the people using locker facility.
•
Keeping record of the newly issued cheques, and ATMs.
•
Helping customers in filling up forms like account opening form, NEA bill
payment voucher, cash deposit voucher, cheque deposit voucher, mobile
banking application, internet banking application, visa debit card application
and remittance voucher.
•
Completing the account opening firm after the account has been opened by
adding checklist and CDD.
•
Follow up calls to customers regarding their arrival of cheques and return of
cheques of clearing.
•
Tallying the details in clearing cheque and cheque deposit voucher.
3
Chapter Two
INTRODUCTION OF THE INDUSTRY
2.1 Background of Bank
History of banking and finance goes back to the early stage of human civilization, when
it was growing in the cradles of diverse cultures. The concept of banking was born when
the early people learned to exchange goods and commodities. As the concept of money
came in existence, the gradual developments started and the first banks were established
in Europe in the fourteenth century. This was made possible by the developments of the
legal and accounting systems which enables money-tracking.
Establishments of banks encouraged people to share their wealth for huge dealings. The
17th century marked another change when the first stock markets started rolling. It also
provided the business sector and the government an opportunity to collect funds by
selling equity and the money-borrowing concept was altered.
In history, the primary purpose of a bank was to provide liquidity to trading companies.
Banks advanced funds to allow business to purchase inventory, and collected those
funds back with interest when the good were sold. Commercial lending today is a very
intense activity, with banks carefully analyzing the financial condition of its business
clients to determine the level of risk in each loan transaction. Banking services have
expanded to include services directed at individuals and risks in these much smaller
transactions are pooled. A bank generates a profit from the differential between what
level of interest it pays for deposits and other sources of funds, and what level of interest
it charges in its lending activities. This difference is referred to as the spread between
the cost of funds and the loan interest rate. Historically, profitability form lending
activities has been cyclic and dependent on the needs and strengths of loan customers.
In recent history, investors have demanded a more stable revenue stream and banks
have therefore placed more emphasis on transaction fees, primarily loan fees but also
including service charges on array of deposit activities and ancillary services
(international banking, foreign exchange, insurance, investments, wire transfers, etc.)
4
2.2 Definitions of Bank
Thus, a bank is a commercial or state institution that provides financial services,
including issuing money in form of coins, banknotes or debit cards, receiving deposits
of money, lending money and processing transactions. It is an institution established to
safeguard money of people, which is used to make loans and investments.
According to World Bank, ‘banks are financial institution that found in the form of
deposits, repayable on demand or in short notice’.
According to Banking and Financial Institution Act, 2063 ‘A bank means a corporate
body incorporated to carry on financial transactions’.
2.3 History of Banking in Nepal
The first commercial bank in Nepal, Nepal Bank Limited (NBL), was established in the
year 1994 B.S. This was a major milestone in the history of Nepal, as the country
entered into official financial system. After nineteen years of its establishment, almost
after two decades Nepal Rastra Bank (NRB) was established in the year 2013 B.S.
One decade later, Rastriya Banijya Bank Ltd. And Agricultural Development Bank Ltd.
established in the year 2022 B.S. and 2024 B.S. respectively. 47 years after the first
bank was established in Nepal, the first privately owned commercial bank, Nabil Bank
Ltd, was established in the year 2041 BS.
Seven more commercial banks were added in a decade after 2041 B.S. Only four
commercial banks were established from the period of 2051 B.S. to 2063 B.S. There
are mainly two reasons for it. In this time, the country saw sluggish economic growth
due to the Maoist insurgency. The second reason being the reluctance on issuing
incense by the regulatory body, NRB.
After the Maoist insurgency came to an end in the year 2063 B.S., at least one
commercial bank was established every year until last year. The banking industry, like
other sector, saw growth in the absence of ongoing conflict. However, this sector was
also not immune from poor governance, corruptions and scandals. The government
owned banks were the most effected once due to direct political interference in the
5
banking activities. Now again the number of commercial are set to decline due to the
monetary policy to this fiscal year which requires commercial banks to have paid up
capital of at least Rs 8 Arba by the end of Ashad 2074. This brief time frame given to
quadruple the paid-up capital have forced banks to merge with each other creating fewer
commercial bank in the new fiscal year.
2.3 Introduction to Commercial Banks
A commercial bank id referred to as the type of financial institution that provides
services such as accepting deposits, making business loans and offering basic
investments products.
Currently in most jurisdictions, commercial banks are regulated and require permission
to operate. Operational authority is granted by bank regulatory authority and provides
rights to conduct the most fundamental banking services such as accepting deposits and
making loan; there are also financial institutions that provide selected banking services
without meeting the legal definition of a bank.
According to Banking and financial Institution Act 2063, commercial banks come
under Class ‘A’ financial institution that are engaged in collecting other people money
and offering various solution to individual business and other people. As per the
directives, the various financial transaction carried out by commercial banks are as
follows:
•
Accepting deposit with or without interest, and refund such deposit.
•
Supplying credit as prescribed by NRB.
•
Dealing in foreign exchange, subject to the law in force.
•
Supplying credit for hire purchase, hypothecation, leasing, housing and service
business.
•
Engaging in merchant banking business, subject to the directives of NRB.
•
Making arrangement for jointly supplying credits on the basis of co-financing
in agreement entered into for the division of the collateral paripassu.
•
Issuing guarantees on the behalf of its customers, having such customers
execute necessary bonds in consideration thereof, obtaining security, and
6
acquire their movable or immovable assets as collateral or on mortgage, or the
assets of third person as collateral.
•
Supplying credit against the guarantee provided by any domestic or foreign
bank or financial institution.
•
Issuing, accepting, paying, discounting or purchasing and selling letter of credit,
bill of exchange, promissory notes, cheques, travelers cheques, drafts or other
financial instruments.
•
Acting as agent of NRB on the conditions prescribed by NRB and carrying on
governmental and other transactions on behalf of Government of Nepal
2.3 Challenges, Opportunities faced by Commercial Bank in Nepal
Commercial banks deal with activities of trade, commerce, industry and agriculture that
seek regular financial and other help from banks for growing. As financial intermediary,
the commercial banks also play a key role as implementing body for central bank. Thus,
to overview there are various threats as well as opportunity. Thus, to analyze the
industry’s competitive advantage Michael Porter’s Five Forces Model is used. Hence,
the understandings are as follow:
2.3.1 Threat of New Entrant
With so many new banks entering the market each year the threat of new entrants should
be extremely high. However, due to mergers and bank failures, the average number of
total banks has decreased to 28. A core reason for this biggest barrier of entry for the
bank industry is, trust.
Because the industry deals with other people’s money and financial information, new
banks find it difficult to start up. Due to the nature of the industry, people are willing to
place their trust in big name, major banks who they consider trustworthy. The banking
industry has undergone a consolidation in which major banks seek to serve all of
customer’s financial needs under their roof.
2.3.2 Power of Suppliers
Capital is the primary resource on any bank and there are major four suppliers of capital
in the industry:
7
a. Customer deposits
b. Mortgages and loans
c. Mortgage backed securities
d. Loan from other financial institutions.
By utilizing these four major suppliers, the bank can be sure that they have the necessary
resources required to service their customer’s borrowing needs while maintaining
enough capital to meet withdrawal expectations. The power of the suppliers is largely
based on the market, their power is often considered to fluctuate between medium to
high.
2.3.3 Power of buyer
The individual doesn’t pose much of a threat to the banking industry, but one major
factor affecting the power of buyers is relatively high switching costs. If a person has
one bank that services their banking needs, mortgage, savings, checking, etc; it can be
a huge hassle for that person to switch to another bank. To try and convince customers
to switch to their bank they will often in times lower the price of switching, though
most people still prefer to stick with their current bank. The internet has greatly
increased the power of the consumer in the banking industry. The internet has greatly
increased the ease and reduced the cost for consumers to compare the prices of
opening/holding accounts as well as the rates offered at various banks.
2.3.4 Availability of Substitutes
Some of the banking industry’s largest threats of substitution are not from rival banks
but from non-financial competitors. The industry does not suffer any real threat of
substitutes as far as deposits or withdrawals, however insurances, mutual funds, and
fixed income securities are some of the many banking services that are also offered by
non-banking companies. There is also the threat of payment method substitutes and
loans are relatively high for the industry. For example, big name electronics, jewelers,
car dealers, and more tend to offer preferred financing on “big ticket” items. Often times
these non-banking companies offer a lower interest rates on payments then the
consumer would otherwise get from a traditional bank loan.
8
2.3.5 Competitive Rivalry
The banking industry is considered highly competitive. The financial services industry
has been around for hundreds of years, and just about everyone who needs banking
services already has them. Because of this, banks must attempt to lure clients away from
competitor’s banks. They do this by offering lower financing, higher rates, investment
services, and greater conveniences than their rivals. The banking competition is often a
race to determine which bank can offer both the best and fastest services, but has caused
banks to experience a lower return on assets. Given the nature of the industry it is more
likely to see further consolidation in the banking industry. Major banks tend to prefer
to acquire or merge with other banks than to spend money marketing and advertising.
Figure 2.1
Porters Five Forces Model
Threats of new
entrants
Bargaining
power of
suppliers
Competitive
Rivalry
Threat of
substitute
products
9
Bargaining
power of
customers
Chapter Three
INTRODUCTION OF THE ORGANIZATION
3.1 Brief History
Established in September 2007 as the 21st Commercial Bank in Nepal, Prime
Commercial Bank Limited is an ‘A’ category financial institution which is 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. About seventy percent of the
share of the bank lay in the hands of three hundred and eighty-nine promoters.
By maintaining excellent relationship with its valued customers, the bank has been
successful to establish itself as an emerging player in financial sector with focus in
customer service and is counted among the top 10 commercial banks in Nepal by
independent raters and publications in the country. The bank was awarded with ‘The
Best Bank of Asian- Pacific Region’ by Europe Business Assembly (EBA) in March
2016. Also, it was awarded ‘The Bizz 2016 Business Award’ from World
Confederation of Businesses (WORLDCOB) in August 2016.
The bank has its share listed and traded actively in the Nepal Stock Exchange (NEPSE).
The fifty-five branches of the bank inside and outside the valley has made easier for its
customer to access its products and services.
The core vision, mission and objective of the organization are:
3.1.1 Vision
Vision is a statement which clearly and concisely communicates the businesses overall
goals, and can serve as a tool for strategic decision making across the organization. The
vision of PCBL is to position itself as a leading and well-established banking institution
in its kind and establish it as “Bank with Difference” with a slogan that states, ‘Sharing
Dreams Changing Lives’.
10
3.1.2 Mission
Any organization when it mentions the mission it refers to the company’s business., its
objectives and its approach to reach those objectives. Mission statement of PCBL are
as follows:
•
To make a qualitative lending in the Nepalese market to support all kinds of
businesses including personal need of Nepalese citizens.
•
To render quick and prompt banking services to the customers.
•
To involve in aggressive marketing and business promotion to promote the
banking products and awareness among the citizens where the country has
number of people who are still deprived from the banking services.
•
To introduce new banking services and products.
•
To run the institution with an efficient and professional management.
•
To develop good corporate governance and ensure adherence to the central bank
as well as prevailing rules and regulations.
•
To develop an effective internal control system, management information
system(MIS) and compliance.
3.2 Business Volume
Business volume indicates the various investment. It showcases the segregation of
investment portfolio into held for trading, held to maturity and available for sale
category. Thus, segregation of investment portfolio of PCBL is as follows:
11
Table 3.1
Segregation of Investment Portfolio of Prime Commercial Bank Ltd
Investment Portfolio
Amount (Rs.)
a.
Held for Trading
-
b.
Held to Maturity
5,893,099,494
Treasury Bills
989,311,100
Nepal Government Development Bond (3 years)
3,234,150,000
Money at Call
48,224,484
Other Investments
1,621,413,910
Available for Sale
232,169,420.47
Nepal Clearing House Ltd
2,500,000
Mahila Sahayatra Micro Finance Development Bank Ltd
14,000,000
Mero Micro Finance Bittiya Sanstha Ltd.
14,000,000
Nepal Electronic Payment System Ltd.
15,000,000
Global IME Samunnat Scheme
37,972,680
Nepal Doorsanchar Co. Ltd. (NTC)
112,057,495.47
NIBL Pragati Fund
10,274,070
NIBL Equity Fund
11,265,040
NMB Hybrid Fund
12,619,210
Nepal Life Insurance Co. Ltd.
2,480,925
c.
(Source: BASEL III Report 2073; Prime Commercial Bank Ltd)
3.3 Products and Services
The core services of a bank are normally taken as deposits, loans, clearing, remittance,
etc., but in the current generation with the advancement of recent technology and the
needs of the customers, new services are added by the banks. Banks also Launch new
schemes so as to attract the potential and retain the existing customers. PCBL offers a
wide range of products and services designed to make banking easier and to match
every customer’s requirements. The different product and services provided by PCBL
are as follows:
12
3.3.1 Consumer Loan
Consumer loan are such kind of borrowing that is borrowed by a party for their own
purposes. These are the loans mostly used for personal, family or household purpose.
PCBL provides various kinds of consumer loans which are as follows:
a. Home Loan
The housing finance scheme gives an excellent opportunity to have own house and is
carefully tailored to suit the requirements and match the customer’s capacity. It is
generally provided to salaried person, entrepreneurs and fixed income group. The
maximum amount of Home Loan Finance currently is up to a maximum of two third of
the total construction/purchase price of the house. For furnishing, finance from the
bank’s part will be 70% of cost of such furnishing.
b. Auto Loan
Like other products, this is also another easy finance scheme to purchase new vehicle
as well as second hand vehicle not older than 5 years from the date of manufacture of
the vehicle. It is very easy and quicker finance scheme launched by our bank. The auto
loan is of two types:
•
Private Auto Loan
•
Commercial Auto Loan
c. Loan against Share
The bank pledges the securities and provide overdraft up to a value determined on the
basis of the market value of securities pledged by the customers. This facility will allow
flexibility in funds withdrawal and repayment.
d. Gold Loan
One can pledge their gold/silver with PCBL and get gold/silver loan facility instantly.
PCBL finances up to 65 % in gold loan.
3.3.2 Business Loan
Any businesses require an adequate amount of capital fund to start up the business or
to expand the business. Thus, in the absence of total required funds with the business
13
companies take out business loans for financial assistance. The varieties of business
loan provided by PCBL which are as follows:
a. Term Finance
PCBL will take up feasible projects for funding from fixed capital to working capital
loan. Project financing will help the clients to acquire or finance fixed assets which will
be in the form of a long-term loan for acquiring or purchasing machinery, equipment,
land and building. The tenure of repayment is based on cash flow.
b. Letter of Credit (LC) and Bank Guarantees
PCBL issues various bank guarantees to meet different requirements for various
purpose such as import/export of products, Bidding for tenders, issuing performance
bonds, advance payment guarantees and custom guarantees. It can also issue local
guarantees against counter guarantees of acceptable foreign banks.
There are other several loan products. Thus, the rate of these products are as follows:
Table 3.2
Rate of Interests of Prime Commercial Bank Ltd.
Category
Lending rates
Deprived Sector (Institutional and retail)
BR + 0.50% to 5 %
Overdraft
BR + 1.00% to 5 %
Working Capital Loan
BR + 1.00% to 5 %
Cash Credit
BR + 1.00% to 5 %
Demand Loan and Term Loan
BR + 1.00% to 5 %
SME Loan
BR + 1.00% to 5 %
Hire Purchase
BR + 1.00% to 5 %
Loan against FD
BR + 3% or FD rate + 2% whichever
higher
Loan against Share
BR + 2% to 5%
Home Loan
BR + 2% to 5 %
Base Rate as of Ashad 2074 is 10.64%
(Source: Prime Commercial Bank Ltd.)
14
3.3.3 Deposits
There are various products under deposits some of which are interest bearing and some
not. The products and the interest rates are as follows:
Table.3.3
Normal Deposit Rates of Prime Commercial Bank Ltd.
Deposits
Interest Rate (in %)
Prime Premium Senior Citizen Saving
8.25
Prime General Saving (minimum balance Rs 2500)
7.25
Prime Employees Saving/ Teacher saving/ Student Saving
7.25
Prime Grihalaxmi bachat
6.25
Prime General saving (minimum Balance Rs 1000)
6.25
Locker Saving
6.25
Prime Bidhyut Saving Account
(Source: Prime Commercial Bank Ltd)
6.25
Table 3.4
Fixed Deposit Rate of Prime Commercial Bank Ltd.
Deposits
Rates (in %)
6 months and Above
9.00
1 year and Above
(Source: Prime commercial Bank Ltd)
11.00
3.3.4 Other Services
a. SMS Banking
This service enables the customer to track their account details anytime from anywhere
when they have accessible to the mobile service and network. SMS banking provides
the facility to customer to know if any banking transaction takes place of above Rs. 500
through phone message which is known as SMS Alert.
b. E-banking Service
This service facilitates in balance enquiry and seeing the account statement that shows
the transactions, interest statements and tax statement as well by logging in to the bank’s
website. They are provided with a customer code and password which is known only
by them.
15
Chapter Four
ANALYSIS OF THE ACTIVITIES
This chapter deals with the activities done by the intern at PCBL during the internship
period. The intern was placed in different departments to learn various activities
conducted by the bank and to support the normal operation of the organization. Based
on the experience the functions of the organization have been critically analyzed.
4.1 Customer Service Department
For any organization, customers are the center of the business as they are the one who
uses the product/ service of the organization. Thus, by providing an excellent customer
service can help improve the organization to lure affluent prospects, elevate the
profitability, lower operation cost and create greater customer loyalty.
Hence, customer service department is the front desk of the bank which is one the most
important department as it directly deals with customer for solving their queries and
problems. Also, they are the enablers in bank who exposes the customer with the
banking product. It is one of the busiest departments in the banks and is the very place
that makes an early impression to the customers (Banjara, 2012).
The highlight of CSD was the interaction with the customers. It is the front office in the
organization, thus the various activities carried out under it and the tasks performed by
the intern were:
a. Account opening
There are various account schemes available at PCBL. These schemes vary, mostly in
minimum balance required, interest rate provided and facilities. Thus, the various tasks
performed by the intern for the process of account opening are as follows:
•
Checking the presence, the required documents for opening account of
customer.
•
Help customer to fill details in the form and photocopy the necessary document.
•
Complete any missing details in the form.
16
•
Open the account using Pumori software system.
•
Forward the completed file to supervisor, to approve it.
•
Prepare the cash receipt slip and provide account number to the customer.
•
Direct the customer to cash counter to make cash deposit.
•
Prepare checklist and put all the necessary documents in the paper file.
b. Distribution of debit card
Debit Card is payment card which enables the customer with the option of making
purchases at merchant location as well as cash withdrawal from ATMs with access to
their bank accounts. It is a convenient financial management tool. It offers many
benefits, however at the same time also carries many responsibilities to the holder
thereof. To facilitate debit card distribution, the various task done by the intern are as
follows:
•
Call the customers via telephone and ask them to collect their debit card from
branch.
•
When the customers arrive to collect debit cards, check for the debit card in card
box which is separated alphabetically. Also, look for card pin in separate pin
box.
•
Record the entry in card active register which includes date, account name,
account number and card number.
•
Ask the cardholder to put his signature to verify his/her identity.
•
Verify the signature using Pumori.
•
If the signature is verified provide the card to the respective person.
c. Preparation of Cheque Book
A cheque is a document or instrument usually a piece of paper that orders a payment of
money from a bank account. The drawer writes the various details including the
amount, date, and a payee on the cheque and signs it, ordering their bank, known as the
drawee to make the payment. In PCBL, customers can issue new cheque only from the
branch from where they initially opened their account. Thus, for the process the tasks
done by the intern are as follows:
•
Help the customer fill old demand slip.
•
Keeping the filled demand slip in box of batch cheque making.
17
•
At the end hour of bank making the cheque of that particular day.
•
Tear the leaves of the cheques to make cheque book.
•
Put demand slip at the back of cheque and staple all the leaves together.
•
Enter the cheque issued in the ledger containing reference number, account
name, account number, number of leaves, and cheque number.
d. Dormant Form
The account will be dormant, which means be converted into passive state when there
is no transaction for more than six months. This blocks any withdrawal activities of that
account. This is done mainly to protect the account holders who are out of the country
and cannot access their account to protect from fraudulent access.
Customers if wants to remove the dormancy needs to go to the respective branch where
they initially opened their account. Then they need to fill a re-activation. This process
is done through CSD, thus the tasks done by the intern regarding dormant account are
as follows:
•
Provide reactivation form to customer.
•
Check details such as date, account name, account number, reason for not using
the account and signature on the form.
e. Internet Banking
PCBL introduced internet banking service also known as E-banking (electronic
banking), allows the customers to avail online banking transactions from any part of
the world. Using this service, they can check their bank statements, and do balance
enquiry by logging in to the website of PCBL. This is free of cost service and can be
activated by filling up a form. To activate the service, responsibilities of the intern are
as follows:
•
Provide the E-banking form to the account holder.
•
Check the details in the form that has been filled.
•
Provide the completed form for receiving customer code and password to use
the e-banking facility.
•
Get the signature before and after receiving the customer code and password.
18
f. Closing Account
The account will be closed when a person or organization does not need the account
anymore. The account can be closed on the branch where the account was present
because the original file will be on that branch only. The intern helped in this on
following ways:
•
Provide the account holder account closing form where his details of account
and the reason for closing the account needs to be disclosed.
•
Ask for the unused cheque leaves and debit card.
•
Verify the customer through his/her signature and photograph.
•
Find the original file of the customer from the cabinet and attach the unused
cheque leaves and debit card to it.
•
Take the file to supervisor to verify and to get the withdrawal cheque.
g. Signature/phone number change
Sometimes the signature or address will change so the same changes are needed to be
made in the account also. This is done in the branch where the account was opened
because there will be original file present. Thus, the various activities performed by the
intern regarding that are as follows:
•
Provide signature change form and signature card to the account holder.
•
Check the details filled in the form and the presence of photo and signature of
the account holder in the signature card.
•
Provide the document to supervisor to verify the signature and to approve the
new signature.
•
Scan the signature card to upload it to Pumori.
h. NEA Bill Payment (Ratnapark Counter)
PCBL facilitates payment of electricity bill of customers whose bill is of NEA
Ratnapark Counter. Customers can either link the facility with their bank account which
automatically deducts the amount in bill of every month or they can pay cash every
month.
19
The bills which have not been paid for more than two months cannot be processed using
this facility. Such customer needs to go to NEA counter itself for the payment of their
electricity bill.
For paying the bill which is not linked with the customer’s account, the following
activities are done:
•
Providing the NEA Bill Payment voucher to fill it to customer.
•
Checking the total about of bill after rebate or penalty.
•
Sending the customers to cash counter to make the payment.
For activating the facility of linking account to pay the bill:
•
Providing the customers, the NEA standing instruction form.
•
Checking the details of the customer.
•
Providing the form and NEA bill to supervisor to activate the service.
i. Remittance
PCBL facilitates receiving Money sent through remittance service. Customers can
receive payments from both domestic transfer and international transfer. PCBL does
not have their own remit but is linked with other remittance which are IME Remittance,
Western Union Money Transfer, CG Finco Money Transfer, MoneyGram, City
Express, Reliable Remit. The various tasks performed by the intern are as follows:
•
Checking the code number.
•
Helping customers with filling the form for receiving the money.
•
Photocopying the identity card of the customer. The identity card should be
citizenship card, voter’s id or driving license.
j. Other Facilities:
CSD also conduct other facility such as locker facility, mobile banking, Nepal Telecom
bill payments. Thus, the intern coordinated in the following ways:
•
Providing customers, the respective form to activate the service.
•
Checking the details of customer.
•
Providing the documents to supervisor for activating the facility.
20
•
For Nepal Telecom bill payment requesting the customer to make payment is
cash counter.
4.2 Problems Identified
CSD is the department which directly deals with the customers’ queries and problem.
This department is responsible for keeping the customers familiarize with the bank and
making the banking process easier for customers by tackling with their problem.
However, no part of organization is problem. Thus, various problems identified during
the period of internship are as follows:
•
Lack of proper task division to the employees.
•
No proper division of departmentalization of the functions such as remittance,
cheque making, NEA Pill payment are all collaborated within CSD.
•
Delay in information sent by NEA regarding the bill amount.
•
Lack of proper management of completed files.
•
Lack of centralization of activities such as re activation of account, KYC
Update.
•
There is no proper system that showcases which cheque is associated to which
customer accordance to the cheque number.
•
Time to time crashing of remittance facility.
•
Many new customers do not come to take their cheques, leading to more
cheques that needs to be destroyed.
4.3 Problem Solved
During the period of internship, the various problem solved were as follows:
•
Help in filing account opening forms and signature card.
•
Help in sorting old cheque and ATMs that needs to be destroyed.
•
Following up the customers who have not come to receive ATMs and cheques
before destroying the old cheques and ATMs.
•
Recording the number of printed cheque indicating the number of cheque
assigned to customer in particular date in chronological order.
21
4.4 SWOT Analysis of PCBL
SWOT stands for: Strength, Weakness, Opportunity, Threat. A SWOT analysis guides
you to identify your organization’s strengths and weaknesses, as well as broader
opportunities and threats. It enables an organization to have a comprehensive insight
about the current position in the industry compared to the competitors. It provides the
organization a scope to improve strategic position in the market by understanding your
strength and weaknesses at the same time by analyzing the threat and opportunities
created by the environment. Here, the internal strengths and weakness of PCBL as well
as the external opportunities and threats are discussed.
Table 4.1
SWOT Analysis of Prime Commercial Bank Ltd.
Internal
Factors
External
Factors
Positive
Negative
Strength
Weaknesses
•
Good Customer Service
•
Technology
•
Innovative Products
•
Product Promotion
•
Efficient Administration
•
Vast network
Opportunity
Threat
•
Branch Expansion
•
Level of Competition
•
Banking Software
•
Technological Advancement
•
Change in rate of interest
a. Strengths
Strengths are the internal factors of an organization which can be used to achieve
organization’s goals. It describes what an organization excels at and separates it from
its competitors. For PCBL, the following are to be considered as its strengths:
•
PCBL provides quality services to the clients compared to its contemporary
competitors. The bank believes in maintaining special relationship with their
customers and promotes in building long-term relation with them.
22
•
PCBL has offered various kinds of deposit schemes by which people have
opportunity to save their small money.
•
PCBL has and efficient administration as it can be seen by the work done in a
timely and systematic manner. There is close relationship between the employees
and management though the chain of command is maintained strictly.
•
PCBL has vast network system in the nation, thus helping customers to transact
through the bank from one place to another. It has 51 branches nationwide to
help the customers.
b. Weaknesses
Weakness is internal characteristics that might inhibit or restrict the organization’s
performance. These are the factors that stop an organization from performing at its
optimum level. For PCBl, these are its weaknesses:
•
One of the major weaknesses of PCBL is the technology used by the bank. With
the change of time, technological advancement is essential to survive in the
competition.
•
PCBL lacks in promotion of their products and services that delays and
decreases the number of customers of the bank.
c. Opportunity
Opportunities are the favorable external factors that an organization can use to give it a
competitive advantage. Such opportunities for PCBL are as follows:
•
Besides expanding in the urban areas, PCBL has prospects to open more
branches that will eventually enhance the government’s effort at receiving the
rural economy as well as reaching more people by better service.
•
With the advancement of technology, there are high quality banking software
which will make the banking operations easier and smooth.
d. Threat
Threats are such conditions in the general environment that may hinder a company’s
efforts to achieve strategic competitiveness. The potential threats that can be seen in the
general environment are as follows:
23
•
In recent years, the number of private bank is increasing. These banks always
pose a threat for others by coming up with their new product line, innovative
technology, etc.
•
With time, technology id getting advances and most of the private banks are
upgrading their operating system to survive in the industry. However, PCBL is
lagging as most department still dependent on manual work rather than
technology.
•
The market rate of interest has been increasing because of the various monetary
policy that has been circulated by NRB. This has increased most interest rate
increase to decline it market for facilities such as loan and increasing the default
risks.
.
24
Chapter Five
CONCLUSION (LESSONS LEARNT)
5.1 Conclusion
PCBL has been established as a prominent business house that has been providing
diversified banking services to people in different corners of the country. The bank has
established itself as an emerging player in financial sector with focus in customer
service excellence maintain excellent relationship with valued customers within ten
years of its establishment. Also, it has successfully acquired two development banks:
Biratlaxmi Bikas Bank Ltd and Country Development Bank Ltd in the recent days and
has expanded its reach to thirty four different places of the country outside the valley.
PCBL has been providing internship facility as well to enhance the facility received by
the customer as well as to enhance the skilled labor of the nation. By taking the twelve
weeks internship program at PCBL, Sorakhutte Branch in CSD, the intern received the
opportunity to get familiar with the banking environment as well as functioning of the
CSD department.
For student planning to enter the permanent work force, internship provides a great
chance to learn by doing in a setting where you are supervised by work-place
professional, and have the opportunity to achieve your own learning goals, without the
responsibilities of being a permanent employee.
The major objective of the study is to understand the operation flow in the customer
service department at the same time, get an insight onto the banking operations in
general. By doing the internship program for twelve weeks in PCBL mostly in the
customer service department, the intern was able to understand the importance of
customer service in an organization. The intern observed various activities done at CSD
that aid in the development of the intern’s interpersonal and communication skills.
25
5.2 Lessons Learnt
The duration of internship lasted for twelve weeks and during the period of time, the
intern got the opportunity to directly work with the professionals and in a practical
environment that proved to be quite fruitful to understand the real scenario as well as
to use the theoretical knowledge in real life situation. Thus, some of the major learning
from the twelve-week internship are as follows:
•
Learnt to deal with customers of different personality.
•
Learnt about different banking facility provided by the bank.
•
Learnt using the banking software for opening account, updating KYC, finding
out the numbers of customer, making new cheques and activating e-banking.
•
Learnt about the documents required to open a new account.
•
Learnt to verify the signature and the remaining number of cheques before
making new cheques.
•
Learnt to print bank statements.
•
Learnt to update Know Your Customer (KYC) in the system.
•
Learnt about different forms to be filled by customers for different issues faced
by them.
•
Learnt to check account number and balance of customer.
•
Learnt to find the NEA bill amount.
•
Learnt scanning and uploading customers signature along with their photos
aligning with their respective account.
Furthermore, after the completion of the internship and the internship report, the intern
has been able to understand the banking operation to some extent.
26
BIBLIOGRAPHY
Banjara,
P.
(2012).
www.blogspot.com.
Retrieved
from
Blogspot:
http://customerservicedepartmentofbank.blogspot.com/2012/04/introductionof-customr-service.html
Bhandari, D. (2003). Banking and Insurance: Principle and Practice. Kathmandu:
Aayush Publication.
Bhandari, D. (2017). Business environment in Nepal. Kathmandu: Ashmita Books
Publishers and Distributors.
M.C Karthy, D. (2004). Business Policy and Strategy : Concepts and Reading. New
Delhi: AITBS Publication.
Nepal Rastra Bank. (2073). Unified Directives-2073. Unified Directives.
Prime Commercial Bank Ltd. (2017). Prime Commercial Bank Ltd. Retrieved from
Prime Commercial Bank Ltd: http://www.primebank.com.np
Prime Commercial Bank Ltd. (2073). Disclosure under BASEL III as at 31.12.2073.
Kathmandu: Prime Commercial Bank Ltd.
Rai, N. J. (2017). About Us: Kantipur Publications Pvt. Ltd. Retrieved from Kantipur
Digital Corp. Web site: http://kathmandupost.ekantipur.com
Rose, P. S., & Hudgins, S. C. (2014). Bank Management and Financial Services. New
Delhi: Mcgraw Hill.
Share
Sansar.
(2017).
Retrieved
from
Share
Sansar
Website:
http://www.sharesansar.com
Suresh, P., & Paul, J. (2016). Management of Banking and Financial Services (3rd ed.).
Delhi: Pearson.
Thapa, R. B., & Rawal, D. B. (2015). Principles and Practices of Nepalese Banking.
Kathmandu: Buddha Publication.
APPENDICES
Appendix 1
List of Commercial Banks in Nepal
S. No.
Name of Banks
1.
Agricultural Development Bank Limited
2.
Bank of Kathmandu Lumbini Ltd
3.
Century Commercial Bank
2016 (After
Merger)
2011
4.
Citizens Bank International limited
2007
5.
Civil Bank Limited
2014
6.
Everest Bank Limited
1994
7.
Global IME Bank limited
8.
Himalayan Bank Ltd
2014 (After
Merger)
1993
9.
Janata Bank Nepal Ltd
2010
10.
Kamari Bank Ltd
2001
11.
Laxmi Bank Ltd
2002
12.
Machhapuchchhre Bank Ltd
2012
13.
Mega Bank Nepal Ltd
2010
14.
Nabil Bank Ltd.
1984
15.
Nepal Bangladesh Bank Ltd
1994
16.
Nepal Bank Ltd
1937
17.
Nepal Credit and Commercial Bank Ltd
1996
18.
Nepal Investment Bank Ltd
1986
19.
Nepal SBI Bank Ltd
1993
20.
NIC Asia Bank Ltd
2013
21.
NMB Bank Ltd
22.
Prabhu Bank Ltd (merged with Grand bank)
23.
Prime Commercial Bank Ltd
2015 (After
Merger)
2014 (After
Merger)
2007
24.
Rastriya Banijya Bank Ltd
1966
25.
Sanima Bank Ltd
2012
26.
Siddhartha Bank Ltd
2002
27.
Standard Chartered Bank Ltd
1987
28.
Sunrise Bank Ltd
2007
(Source: www.nrb.org.np)
Establishment
(A.D)
1968
Appendix 2
Organizational Structure
Chairman CEO
Senior GM
Secratery
GM
Deputy GM
Assistant GM
Assistant GM
Head Corporate
Banking
Head Loan
Administration
Head
Reconcilation
Head Operation
Head Accounts
and Treasury
Head General
Service
Head Retail
Banking
Head Cash and
Transfer
Head R & D
Head Legal
Head Card and
Remittance
Head Internal
Audit and
Compliance
Head Trade and
Finance
Head Human
Resources
Branch
Manager
Head IT
Head Credit
Administration
Appendix 3
Management Team
S. No.
Name
Designation
1
Mr. Narayan Das Manandhar
Chief Executive Officer
2
Mr. Sanjeev Manandhar
General Manager
3
Mr. Moti Kaji Tuladhar
Deputy General Manager
4
Mr. Bhai Raja Tuladhar
Deputy General Manager
5
Mr. Nepal Bhusan Shrestha
Head, Corporate Credit Department
6
Mr. Suresh Man Singj
Head, Credit Risk Management
Department
7
Mr. Ananta K Chapagain
Head, Consumer Loan Department
8
Mr. Prashant Raj Dangol
Head, Compliance Department
9
Mr. Narayan Pd. Shrestha
Head, Credit Administration Department
10
Mr. Milan C. Maharjan
Head, Internal Audit Department
11
Mr. Sunil Maharjan
Head, Information Technology
Department
12
Mr. Mahesh Debb Pande
Head, Treasury Department
13
Mr. Aanand Subedi
Head, Operation Department
14
Mrs. Bandhana Manandhar
Head, Human Resource Department
15
Mr. Ramesh Bhandary
Head, General Administration
Department
16
Ms. Arpana Lacoul
Head, Trade Finance Department
17
Ms. Sweachha Karki
(Source: Prime Commercial Bank Ltd)
Head, Finance Department
Appendix 4
Branch of Prime Commercial Bank Ltd.
S No.
Branches
S No.
Branches
1
Kamalpokhari Central Office
27
Sindhuli Branch
2
Ason Branch
28
Taplejung Branch
3
Bagbazar branch
29
Gorkha Branch
4
Balaju Branch
30
Birtamod Branch
5
Kalimati Branch
31
Battar Branch
6
New Baneshwor Branch
32
Nepalgunj Branch
7
Gatthaghar Extension Counter
33
Birgunj Branch
8
Chabahil Branch
34
Traffic Chowk Branch
9
Koteshwor Branch
35
Damak Branch
10
Mangalbazar Branch
36
Biratchowk Branch
11
Old Baneshwor Branch
37
Surunga Branch
12
Patan Branch
38
Budhabare Branch
13
Sorakhutte Branch
39
Gauradaha Branch
14
Panauti Branch
40
Inaruwa Branch
15
Samakhusi Branch
41
Kanchanbari Branch
16
Newroad Branch
42
Letang Branch
17
Banepa Branch
43
Chandragadi Branch
18
Bhairahawa Branch
44
Chakraghatti Branch
19
Bharatpur Branch
45
Puspalal Chowk Branch
20
Biratnagar Branch
46
Gaurigunj Branch
21
Dharan Branch
47
Khandbari Branch
22
Itahari Branch
48
Tumlingtar Branch
23
Jiri Branch
49
Sidhuwa Branch
24
Kawasoti Branch
50
Narayangard Branch
25
Manakamana Branch
51
Butwal Branch
26
Pokhara Branch
(Source: Prime Commercial Bank Ltd)