1.1            Background of the Study:

Camad College has helped to produce skilled human resources necessary for the nation. It is the conscientious learning center where students at different levels prepare to meet the challenges and opportunities of the 21st century. It offers premier graduate program of Bachalors of Business Administration (BBA) which requires the students to complete a six to eight weeks of internship program. After the completion of internship, the students are required to prepare a project report on a topic relevant to the work they were assigned during the internship.

An intern has to prepare project report at the end of the internship period but the main objective of the internship is to get the hands-on experience of the real world organization. It also helps to develop the skills required to handle the day to day operation in an organization. This will allow the students to be prepared for the upcoming corporate challenges by experiencing real time working environment.

Upon subsequent research to find the best suitable organization to match both my major and area of interest, I selected the Prabhu Bank Ltd. Sukedhara, Kathmandu for my Internship. This internship program was approved by Camad College, affiliated to Pokhara University (PU).

1.2            Objectives

The Faculty of Management, PU has its ultimate objectives of preparing students for professional pursuits of business, industry and government. The core objective of the internship is to fulfill the requirement of the BBA program as prescribed by the PU. Apart from this, the internship was completed with the objective of getting practical knowledge in a professional setting aimed to expand our academic, professional, and personal learning. As a result of this experience, followings objectives has been achieved:

Ø  To gain knowledge about organizational environment.
Ø  To understand the general banking transaction and operations.
Ø  To develop skills in the application of theory to practical work situations.
Ø  To work in the various functional areas within the bank and learn how each area contributes to the bank as a whole.
Ø  To determine my own strength and weakness.

1.3            Methodology

This report is based on the information gathered by myself directly from the workplace. Primary data constitute a major part of this report.

Beside observation at the organization, some of the facts and figures have been collected from the organization’s websites as secondary data.

The collected data are processed several and grouped into several items for their analysis. The processed data are then presented in the form of table. Narrations to the data are provided when required to explain the relationship of data analyzed.

Selection of organization, placement in different departments, and duration in particular selection and the process of gathering information for final report are of the some universal steps followed by every internee to generate their report.

1.4            limitations of the study

The study would have been even more effective if the following limitations could have been tackled.
·         The timeframe of two months hardly enough to learn all the banking activities.
·         Restricted access to higher level information pressed a limit on the scope of the study.
·         Some departments weren’t allowed for internship which led to failure of covering all departments.

2.1         Introduction of Institution
A bank is a financial institution licensed to receive deposits and make loans. Banks may also provide financial services, such as wealth management, currency exchange and safe deposit boxes. There are two types of banks: commercial/retail banks and investment banks. In most countries, banks are regulated by the national government or central bank.

The Bank has gone through the various phases of its growth trajectory over a short period of its existence. Growth of Prabhu Bank was phenomenal, especially after merger of Grand Bank Nepal Limited, Kist Bank Ltd, Prabhu Bikash Bank Ltd, Gaurishankar Development Bank Ltd and Zenith Finance Ltd in, 2016, attaining the status of “A” class financial institution licensed and regulated by the central bank of Nepal, Nepal Rastra Bank.
The Bank has completed years of journey since the inception and has accommodated Seven different financial institutions in its making.  The bank has a network of 137 branches and 126 ATMs across the country, making it premier private bank in terms of geographical reach and clientele segments with customer base of 850,000 among the private sector commercial banks in Nepal.
As the leading banking and financial services group in Nepal, the Bank will be there where growth is, connecting customers to the opportunities, enabling business to thrive and economies to prosper and ultimately helping people to fulfill their hopes and realize their ambitions. The Bank offers the full range of banking and investment services for personal and corporate customers, backed by the team of highly motivated, young and dynamic professionals.
Personalized service, prompt transactions, wide networks, mobile Banking and real-time account credit are few of the core strength of the bank. It has been undertaking activities such as variety of deposit schemes, loans and advances, Foreign exchange facilities, Trade financing, Inward/outward remittances, market maker for government securities, Non-Fund based service like issuing guarantees, letter of credits etc.
While ensuring adequate finance is a vital part in the setting up and running of any business, it alone does not guarantee success. Success depends on the other factors such as quality consultation and counseling. So the bank has given due priority in developing human resources capable enough to understand the need of customer and meet their requirements. The bank keeps its customer at the center of all it does. Prabhu Bank believes that a bank is only successful when its customers are successful.

2.2        Mission and Vision:


To become the leading commercial bank in Nepal by providing the finest quality financial products and services to our customer; Enhance our shareholders’ value, contribute to the economic prosperity of the country and to create continuous learning and growth opportunities for our People.


To support individuals, families and businesses to attain financial independence and improve their financial wellbeing.

2.3        Corporative Objectives:

One of the bank’s primary objectives is to reach out to the common people with a host of helpful products and services that will assure their future prosperity. Over a very short period of time, the bank has achieved a significant degree of success in executing this objective thereby creating a substantial base of loyal customers.
The other Objectives are:
Ø  To ensure the continuity of banking services.
Ø  To protect and enhance the stability of the financial system.
Ø  To protect and enhance public confidence in the stability of the financial
Ø  To protect public funds, including by minimizing reliance on extraordinary public financial support
Ø  To protect depositors and investors.
Ø  To improve community awareness of the bank's services by launching a branch marketing program.
Ø  To Increase number of consumer deposit accounts and consumer mortgages.

Social responsibility of business is towards society. Accountability of business is towards stakeholders. Stake holders are individuals or groups who have interest in the business. Social responsibility is voluntary. Corporate accountability is an obligation.

2.4        Capital Structure of Prabhu Bank Limited
The Authorized Capital of the bank is Rupees 5 billion and Issued & Paid Up Capital is Rupees 3.20 billion.
Authorized Capital

The authorized capital of the Bank is Rupee 5,000,000,000 divided into 50 million equity shares of Rupee 100 each.
Issued Capital:

The issued capital of the bank is Rupee 3,208,885,000 divided into 32.08 million equity shares of Rupee 100 each.

Paid Up Capital:

The issued capital of the bank is Rupee 3,208,885,000 divided into 32.08 million equity shares of Rupee 100 each.

2.5        Major markets and customers

PBL expands its services for the development of the trade and industry in the country. It has been operating its business in many places of Nepal. Its major market is viewed to be every nook and corner of the country so it is extending further more branches in the various cities in the near future.

2.6        Accounts and their interest rates in Prabhu Bank:

2.7        Organizational strategies

Globalization of business is having significant impact on human resource management. In information society, human resource is at the cutting edge, which shows that human resource professionals are becoming much more important in the organization. Organization considers human resource department as playing major role in staffing, training and helping manage the people so that people and the organization are performing at maximum capability in highly fulfilling manner.

We believe that competent people can do miracles even with the small resources and draw wealth out of barren land. We target to attack the most qualified employees and match them to jobs foe which they are best suited for. Our effort is focused to enhance morale and productivity, limit the job turnover, help the organization increase performance and bring high level of professionalism in the organization. We indentify, assess and select employees who embody high level of performance.

One of the best and strongest aspects considering our human resource management is our ‘work ethics’. Work ethics we believe is one of the most important and must to workplace productivity. Considering the fact that work ethics and attitude that employees bring to their job each day can affect a firms’ overall performance. It provides a significant assistant for an organization to build up their store of hardworking, effective employees even during the times of downs and difficulties. Thus, human resource management is an integral part of the organization. We effectively use employees’ skills.

Moreover, to improve their skills, we provide training and development opportunities and increase employees’ satisfaction with the jobs and work conditions. And, we make sure that our employees are well guided, trained and polished to ensure the availability, retention and utilization of a competent and willing workforce in the organization. And, as and, we also ensure that we offer right mixture of rewards to attract and retain the targeted talents.

We follow and believe in recruiting and retaining those with the history of having good work beliefs principles and knowledge. Nurturing the kind of cultures that support behaviors that reflect hard work, offering incentives that translate into superior work performance are important. Team work is our motto and we aim to bring out the best of our employees and recognize and reward them for what they deserve.

2.8        Major services provided by Prabhu Bank Ltd.

·         Deposits
·         ATM Card
·         Mobile Wallet Service
·         E-Banking Service
·         Locker Facility
·         Lending
·         Housing Loan
·         Hire Purchase Loan
·         Education Loan
·         Term Loan for Project Financing
·         Working Capital Loan
·         Consortium Loan
·         Agriculture Loan
·         Loan against Shares and Securities

2.9        Functions of Prabhu Bank

2.9.1 Accepting Deposits

The most important function of Prabhu Bank is to accept deposits from the public. Various sections of society, according to their needs and economic condition, deposit their savings with the banks.

Therefore, keeping the needs and interests of various sections of society, banks formulate various deposit schemes. Generally, there are three types of deposits which are as follows:

·   Current Deposits

The depositors of such deposits can withdraw and deposit money whenever they desire. Since banks have to keep the deposited amount of such accounts in cash always, they carry either no interest or very low rate of interest. These deposits are called as Demand Deposits because these can be demanded or withdrawn by the depositors at any time they want. Such deposit accounts are highly useful for traders and big business firms because they have to make payments and accept payments many times in a day.

·   Fixed Deposit
These are the deposits which are deposited for a fixed period of time. This period is generally not less than one year and, therefore, these are called as long term deposits. These deposits cannot be withdrawn before the expiry of the stipulated time and, therefore, these are also called as time deposits.
The interest rate on fixed deposits are generally high because banks can these deposits for fixed period without having the fear of being withdrawn. If, withdrawn before the maturity period bank charges certain amount.

·   Saving Deposit
In such deposits, money up to certain limit can be deposited and withdrawn. On such deposits, the interest rate is very low. The main objective of saving deposit is to mobilize small savings in the form of deposits. These deposits are generally done by salaried people and the people who have fixed and less income.

2.9.2 Giving Loans

The second important function of commercial banks is to advance loans to its customers. Banks charge interest from the borrowers and this is the main source of their income. Banks advance loans not only on the basis of the deposits of the public rather they also advance loans on the basis of depositing the money in the borrowers. In other words, they create loans out of deposits and deposits out of loans. This is known as credit creation by commercial banks.

Modern banks give mostly secured loans for productive purposes. In other words, at the time of advancing loans, they demand proper security or collateral. Generally, the value of security or collateral is equal to the amount of loan. This is done mainly with a view to recover the loan money by selling the security in the event of non-refundable of the loan. At times, banks give loan on the basis of personal security also. Therefore, such loans are called as unsecured loan. Banks generally give following types of loans and advances:

·         Cash Credit

            In this type of scheme, banks advance loans to its customers on the basis of bonds, inventories and other approved securities. Under this scheme, banks enter into an agreement with its customers to which money can be withdrawn many times during a year. Under this set up banks open accounts of their customers and deposit the loan money. With this type of loan, credit is created.

·         Demand Loans

These are such loans that can be recalled on demand by the banks. The entire loan amount is paid in lump sum by crediting it to the loan account of the borrower, and thus entire loan becomes chargeable to interest with immediate effect.

·         Short Term loan

These loans may be given as personal loans, loans to finance working capital or as priority sector advances. These are made against some security and entire loan amount is transferred to the loan account of the borrower.

·   Over Draft

Banks advance loans to its customers up to a certain amount through overdrafts, if there are no deposits in the current account. For this banks demands security from the customers in terms of minimum balance and charge very high interest rate.

·   Discounting of Bills of Exchange

This is the most prevalent and important method of advancing loans to the traders for short term purposes. Under this system, banks advance loans to the traders and business firms by discounting their bills. In this way, businessmen get loans on the basis of their bills of exchange before the maturity period.

·   Investment of Funds

The banks invest their surplus funds in three types of securities- Government securities, other approved securities and other securities. Government securities include both, central and state governments, such as treasury bills, national savings certificate etc. Other securities include securities of state associated bodies like electricity boards, housing boards, debentures of Land Development Banks units of UTI, shares of Regional Rural Banks etc.

2.9.3 Agency Functions

Banks function in the form of agents and representatives of their customers. Customers give their consent for performing such functions. The important functions of these types are as follows:

(i)                 Banks collect cheques, drafts, bills of exchange and dividends of the shares for their customers.
(ii)               Banks make payment for their clients and times accept the bills of exchange of their customers for which payment is made at the fixed time.
(iii)             Banks pay insurance premium of their customers. Besides this, they also deposit loan installments, income tax, interest etc. as per requested by the customer.
(iv)             Banks purchase and sell securities, share and debentures on behalf of their customers.

2.9.4 Miscellaneous Function

Besides the functions mentioned above, banks perform many other functions of general utility which are as follows:
(i)                 Banks provide locker facility to their customers for the safe custody of valuable assets of their customers such as goal, silver, legal documents etc.
(ii)               Banks collect necessary and useful statistics relating to trade and industry.
(iii)             Banks give reference for their customers.
(iv)             For facilitating foreign trade, banks undertake to sell and purchase foreign exchange.
(v)               Banks advise their clients relating to investment decisions as specialist.
(vi)             Banks issue letters of credit.
(vii)           Bank does the under-writing of shares and debentures also.
(viii)         During natural calamities, banks are highly useful in mobilizing funds and donations.
(ix)             Banks provide loans for consumer durable like Car, Air-conditioner and Fridge etc.

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