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3.1   Background of Internship             
Internship is a period during which an individual works for an organization or a company in order to get experience through direct involvement in daily activities of the organization. It gives a valuable experience and a chance to get exposed to the business environment. Interns are usually college or university students, but they can also be high school students or post graduate adults seeking skills for a new career. Student internships provide opportunities for students to gain experience in their field, determine if they have an interest in a particular career and create a network of contacts. It provides real world experience. It is a system by which the students get an opportunity to experience the real work environment through indulgence into the real task accomplishment where one learns by doing things.
This internship program is designed by Pokhara University for the period of eight weeks for the partial fulfillment for the degree of BBA-BI. Being the student of BBA-BI program, and specializing in Banking and Insurance, it was preferable to choose internship in the banking sector to gain experience and practical knowledge about it.
I choose Prabhu Bank, Kalimati, to have a general idea about the banking activities. I got a chance to put my theoretical knowledge to a practical know-how and internship program is all about gaining a practical knowledge about the subject matter.

3.2  Internship Activities

Various roles/ jobs were assigned to me during the internship program. I completed my internship program at Prabhu Bank working in various departments. A brief description on the jobs performed by me in all these departments is as follows:

Customer Service Department

In the customer service department, I was assigned with the following tasks:
·         Statement handling and printing
·         Account opening and closing
·         Handling ATM cards
·         Issuing of cheque book
·         Handling e-banking facility
Remittance Department

Prabhu Bank Limited, operating under the guidelines set by The Government of Nepal and Nepal Rastra Bank, offers one of the safest and the most secured means of money transfer to Nepal. Remitters can send money to Prabhu bank from any part of the globe through our correspondent banks, exchange houses and banks in the Middle East and using Himal Remit and Western Union, our in-house remittance software.

SWIFT Transfer

Prabhu Bank offers fast and reliable money transfer services through SWIFT. Your bank account with us can be credited with remittance from anywhere in the world. The remitter has to mention the Prabhu bank’s SWIFT Address and the beneficiary details to transfer money to Nepal through us. We cater the need of customers to remit fund from anywhere in the world, denominated in major currencies, through SWIFT.

Demand Draft

We have draft drawing arrangement with our correspondent banks in different countries. Prabhu honors bank drafts on/by various international banks denominated in currencies like US Dollar, Euro, Great Britain Pound, Japanese Yen, etc.

3.3  SWOT Analysis

SWOT Analysis identifies and analyses the main internal and external factors that will influence the future direction and success of a business. It comprises of strengths and weaknesses which are the internal factors and opportunities and threats which are the external factors that affect the organization. Such analysis helps managers in strategic planning. SWOT analysis of Prabhu Bank is as follows:


·         Good reputation in the budgeting industry.
·         Dedicated, experienced and well trained employees.
·         Up to date with the latest technology and information systems.
·         Diversified product and services provided to customers.
·         Proper links with the foreign banks.
·         High capital base compared to other banks.
·         Adequate number of branches all over Nepal.
·         Well qualified and professional management team.
·         Lower weighted average cost of deposit and higher interest rate of spread.


·         Inadequate marketing of its products and services.
·         Need of effective manpower planning.
·         Frequent problems in the ATM machines.
·         Lack of quick customer response.
·         The customer service department is not able to operate efficiently.


·         It can take advantage of its good reputation and further expand its customer base.
·         It can provide better training to their employees to be able to adapt themselves with the new technology.
·         Being technically ahead than the competitors can help Prabhu Bank to have an edge over other banks.
·         It can further increase its spread with the provision of new schemes.
·         It can establish links with the foreign banks to provide extra facilities.
·         It can take advantage of its high capital base and provide loan in productive sectors.
·         It can come up with new innovative products and services.
·         Reduction in the necessity of lending to the priority sectors.
·         The bank has an opportunity to invest various other areas of rural development and hydroelectricity.


·         Political problems ongoing in the country.
·         Lack of stable government.
·         Rapid increase in the number of commercial banks.
·         Lack of attractive and profitable investments.
·         International economic recession.
·         Various rules and regulations imposed by the government/NRB.
·         Unfavorable socio-economic condition of the country.
·         Highly informed customers pose a challenge for the bank to provide better service.
·         More competitive products being brought by other banks.
·         Lack of effective manpower planning.

3.4  Problem Faced during Internship

While carrying out the task assigned by the supervisor, the intern faced different types of problems. They are as follows:
·         Though the instruction and required documents are clearly explained in the account opening form, even then customers ask those for time to time and reasons for extra documents that are already stated in back side of the form. So, it is tough to give them each guideline on filling different types of form as well.
·         The accountholder’s asked for the balance and cheque book without bringing the letter of authority and citizenship with accountholder’s valid signature and account number.
·         Some the customer disagreed to accept the charges for account closing and make argument on this matter for long time. So, it becomes difficult to convince them about the bank’s charges.
·         Customers argue for updating Know Your Customer (KYC) from especially to show original citizenship.
·         After merger customers argued about not giving the information of the merger to them where the information was given to them about a month ago through notice, newspapers and media.
·         After merger it was also difficult to handle the customers and explain about the changes in the account number, banks policy, etc.
3.5  Problem Solved in Internship
During the internship period intern faced problem because intern was new to the organization. The following are the problem solved during the internship period:

·         Whenever the customers come up with their problem in CSD, intern is unaware about the right and accurate information on the subject matter. So intern has to consult with their senior staff to give the information to customers.
·         Sometimes intern may give wrong information to the client due to lack of knowledge of that department in the beginning. At that time, staff immediately correct our mistake and give the right information. 

4.1       Summary

Nepal being and under privileged country and more than ninety percent of people being dependent upon agriculture, which sector is unable to provide full employment to the people. HMG has to activate people in the nation’s development through overall industrialization of nation. For which development of sound banking system is necessary.

Modern commercial banks make the economy always alive and smart to run and maintain day to day commercial, economical and banking transactions. In short, banking transactions helps a country to develop its economy swiftly.

At present commercial banks include joint venture banks are operating in Nepalese Banking Industries. It is remarkable fact that any country cannot have a developed economy in the absence of modern banking system. As any development, work needs a sufficient amount of capital and the lack of sufficient capital is also one of the main reasons as Nepal has been backward in developing its economy.

Therefore, it is utterly important to find out whether or not the banks are serving an important contribution to develop different sectors of the economy. Cash and Bank Balance and Deposits occupies major portion of banking income. It plays a vital role in updating the national economy.

There are too many banks and financial company in present market, which are trying to give more interest and facility to the consumer for collection on deposit. For the collection of more deposit Prabhu Bank should try to provide its scheme to other account holders also. It should try to give other facility to the depositors for the collection of deposit like giving some gifts for the old sincere customer.
The bank should give first priority to agriculture sector and industrial sector because agriculture and industrial sectors are main sources of livelihood. Its rules and regulation are not that strict. So, it should amend its rules and regulation according to situation and central bank direction.
4.2   Conclusion
It is concluded from the observed analysis of above data that ratios control the major economic activities of the nation. Therefore, it is very important for the policymaker to adopt appropriate policy with calculation interest rate. Therefore, that large capital can be mustard at very low capital cost. It will encourage the industrial and commercial activities eventually lending to better economic condition growth, social economic development, and employment opportunities.
Descriptive and analytical research designs have been presented to analyze the financial position of Nepal Prabhu Bank Limited. This study is based on secondary data obtain from various sources.
4.3  Recommendations
Some recommendations are being put forward on the basis of conclusion through study:
1.      Now that the economic condition of the country deteriorating, there is a damages in slackening of the business and industrial activities. So, the bank should not be interested only in collecting huge amount of deposit by increasing interest rate only.
2.      The banks mobilized capital should be made available for investment in productive enterprise whether the business is of small, medium or large sized. Thus, no bank should expand its credit to promote economic development more rapidly.
3.      There is a service completion among joint venture bank, finance companies and insurance companies may go to losses. So, the bank should give emphasis on modern technologies, should be growth service oriented, train the staff, get up to date information about other bank and high services should be put forward to customers.
4.      Employees should be associated whenever possible in discussion with customer and inspective and other business visit with the objective of developing communication and familiarization between them and customers. All employees should be provided with nameplates, which will give them identification and will help customer in knowing them by name.
5.      The bank should grab more opportunities as soon as possible by adopting efficient and latest market strategies, traditional method should be left behind.
6.      Government, NRB and commercial banks should take necessary steps to form and regulate banking habit of Nepalese people especially people of rural areas.
7.      Other than shareholders annual report, the bank should publish and distributed booklets containing detail information about its activities and performances as well. This help to maintain harmonious relationship between bank and customers.

Prabhu Bank Limited.(2015/2016).Annual Report.Kathmandu:PBL
Shrestha.M.K. & Bhandari ,D.B.(2010):Foundation of Financial Instititions and Markets.Kathmandu:Asmita Book Publishers and Distributors Pvt.Ltd.


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