27211911 internship at prime commercial bank nepal
TRANSCRIPT
Kathmandu University School of Management
Kathmandu College of Management
Internship ReportAs part of the requirement for BBA Program
Course Code: RIS 401
Internship Employer
Prime Commercial Bank Ltd., New Baneshwor Branch
Work Supervisor: Mr. Geha Ranjan Joshi
New Baneshwor, Kathmandu
Intern
Kushal Sundar Shrestha,
Date: 27 July 2009.
SIGNATURE PAGE
1
I/We certify that I/We have read this Internship report. In my/our opinion, it is
satisfactory in scope and quality as a project in partial fulfillment for the undergraduate
course of ‘Internship’ held at the Kathmandu College of Management.
Comments
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
______________________________
_____________________
(Project Evaluator)
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COPYRIGHT © 2009
All rights reserved by the authors. No part of this report may be reproduced, stored in a
retrieval system, or transmitted, in any form or by any means, electronic, mechanical,
photocopying, recoding, or otherwise, without the prior written permission from the
author.
Date: July 27, 2009
Kathmandu College of Management
(Affiliated to Kathmandu University)
3
DISCLAIMER
The author of the report is not responsible or liable legally, or by any other means against
the result of the report. Any consequent decision based on this report shall not make the
author responsible.
The view expressed in this report is as per the finding and research undertaken. These do
not reflect the single rule of thumb nor is endorsed by the College.
However, every precaution has been taken to make the repot outstanding and correct. The
author assumes no responsibility for error or omission.
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DECLARATION
I, the undersigned declare that this project entitled is a result of my own study/ research
carried out in the year 2009. It has not been previously submitted to any other university
or any other examination (s).
Signature
_______________
Kushal Sundar Shrestha
BBA (2005-2009)
Kathmandu College of Management
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ACKNOWLEDGEMENT
I would like to express sincere gratitude towards Mr. Sanjeev Manandhar (General
Manager) at Prime Commercial Bank Ltd., New Baneshwor who gave me the
opportunity to work in the Bank.
I would also like to forward my gratitude towards Mr. Geha Ranjan Joshi,
(Relationship Manager), Mrs. Anupa Joshi (Customer Service Department), to Mrs.
Kiran Siwakoti (Teller Department), Mrs. Pratikshya K.C (Assistant) Customer
Service Department, Mr. Bikrant Rana (Assistant) Loan Department who guided me,
throughout my Internship program.
My special thanks go to Ms. Sajana Shrestha (Personal Relationship Manager) who
guided me for Deposit Marketing. I gratify towards Prime Commercial Bank Ltd. And all
the members of the organization for their kind support.
At my successful completion of the internship, I would like to thank Mr. Amit
Bajracharya, (Loan Department) Head Office for instructing me and providing the
essential material for making this report. Likewise I am also thankful to Mr. Lakhpa
Gelu Sherpa (Internship Coordinator) KCM and Mr. Arun Bajracharya
(Undergraduate Coordinator) KU for their valuable suggestion and concepts.
My sincere thanks go to Mr. Sujan Karki and Mr. Sarthak Karki, BBA Graduates of
KCM for their motivation, support and valuable suggestion from time to time.
Lastly, I would also like to thank Mr. Bishnu Raj Adhikari, Principal, KCM and Mr.
Vinay Sharma, Director, KCM for guiding and helping me in each and every stage of
the BBA course and the Internship Study and all the faculty members at KCM without
whose help this report would not have been possible.
Sincerely,
Kushal Sundar Shrestha
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Executive Summary
Prime Commercial Bank is the Nepal 21st commercial bank; with a vision of touching the
life of each and every individuals and organizations by providing quality banking
services at a competitive pricing. PCBL was registered in the Office of the Company
Registrar Kathmandu under the Ministry of Industry, Commerce and Supply, on
2064/04/01 B.S. in accordance with the Company Act 2063 of Nepal.
The bank is concerned with rendering quick and prompt banking services to the
customers, to make a qualitative lending in the Nepalese market to support all kinds of
businesses including personal needs of the Nepalese citizens. There are around one
hundred and seventy staff members, who are working for PCBL. The bank focuses on
providing customer service and extends personalized service to gain confidence of the
customers who are still deprived of basic banking service. Throughout my Internship
tenure, I had worked under Customer Service Department and Deposit Marketing at New
Baneshwor Branch.
I choose to perform my internship at banking industry to better understand the role of
banks in the economy. Through the environment analysis, banking industry is only one of
the major industries, which is able to place as a strong investment sector despite of large
competitor base. If we look after the current scenario and market then, about the banking
scenario of Nepal there are all together around twenty five, commercial bank in Nepal,
were all these commercial banks are running on profit compared to other industries such
as textile, carpets, tire industry. Despite of the fact, that Nepal is developing nation with
primitive market structure, every commercial bank are capable of turning profit out of
every activities that they make.
Internship at PCBL has been one of the most significant internship experience that I have
ever has, as this internship opportunity has helped me to analyze my internal strength and
weakness and developed me professionally. With continuous hard work and effort, from
Deposit marketing I was able to develop clients base of 118 accounts and deposit base of
Rs1.29 million, within ten weeks period. This experience taught me importance of
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personal relationship and consequently, helped to develop interpersonal relationship
skills.
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Table of contents
SIGNATURE PAGE
COPYRIGHT
DISCLAIMER
ACKNOWLEDGEMENT
EXECUTIVE SUMMARY
TABLE OF CONTENTS
LIST OF TABLES
LIST OF FIGURES
LIST OF ACRONYMS
9
Part One
Operational Duty
Section I
1. Background2. Objectives of internship3. Introduction of the Prime Commercial Bank Limited
Section II
1. Roles and Jobs performed in Internship2. Projects carried out during internship period 3. Strengths and weaknesses in carrying out projects
Section III
1. Roles of departmental heads and intern’s supervisors2. Lessons learned from co-workers
Section IV
1. Initial and end expectations/perceptions2. Skills and knowledge acquired in internship 3. Impact of skills and knowledge in intern’s future decision making
Part Two
Specific Assignment undertaken
Section I
1. Brief background of the Deposit Marketing Assignment.2. Objectives of the Deposit Marketing.3. Scope of the Deposit Marketing.
Section II
1. Review of related Literature Section III
1. Conceptual framework
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Section IV
1. The methodology and procedures Deposit Marketing
Section V
1. Observation of the Project
Section VI
1. Conclusions of Deposit Marketing2. Recommendations of Deposit Marketing
11
Reflections
Conclusion
Bibliography
Appendix I
Appendix II
Appendix III
About the Author
12
List of Tables
1. Table 1: Internship Objectives
2. Table 2: Development of Banking in Nepal
3. Table 3: Capital Structure
4. Table 4: Board of Directors
5. Table 5: Bank Products and Services
6. Table 6: Role of PCBL to Nepalese Economy
7. Table 7: Competitor Analysis in terms of Current Position
8. Table 8: Competitor Analysis in terms of Products and Service Offered
9. Table 9: Strength and Weakness
10.Table 10: Learning Experience
11.Table 11: Skills Acquired at Internship
12.Table 12: Skills required for Deposit Marketing
13.Table 13: Numbers and Types of Financial in Nepal
14.Table 14: About Commercial Bank of Nepal
15.Table 15: Products and Service Promoted during Deposit Marketing
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16.Table 16: Interest Rate Structure of Commercial Banks
17.Table 17: Composition of Deposit
18.Table 18: Procedure of Deposit Marketing
19.Table 19: Observation in Deposit Marketing
14
List of Figures
1. Figure 1: Capital Structure of the Bank
2. Figure 2: Board of Directors
3. Figure 3: Organization Structure of Prime Commercial Bank Ltd.
4. Figure 4: Organizational Structure of PCBL, New Baneshwor Branch
5. Figure 5: Client Base Developed During Deposit Marketing
6. Figure 6: Organization structure of PCBL, New Baneshwor Branch
15
List of Acronyms
PCBL: Prime Commercial Bank Limited.
CSD: Customer Service Department.
NABIL: Nepal Arab Bank Limited.
I.P.O: Initial Public Offering
MIS: Management Information System
BOD: Board of Directors
PABSON: Private Association of Boarding Schools of Nepal
CEO: Chief Executive Officer
AIC: Agriculture Inputs Corporations
NOC: Nepal Oil Corporations
NIDC: Nepal Industrial Development Corporation
HR: Human Resource
FNCCI: Federation of Nepalese Chamber of Commerce and Industries
GM: General Manager
FD: Fixed Deposit
CA: Current Account
CC: Call Account
SSA: Staff Salary Account
OD: Over draft
PG: Prime Gold Saving Account
PS: Prime Saving Account
BOA: Bank of Asia
SCT: Smart Card Technology
ATM: Automated Teller Machine
DGM: Deputy General Manager
SWIFT: Society for Worldwide Interbank Financial Telecommunication
GLD: Gold Loan Department
PGC: Prime Gold Certificate
PGL: Prime Gold Loan
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KCM: Kathmandu College of Management
VOITH: Vaidya Organization of International Trading House
NRB: Nepal Rastriya Bank
MNC: Multi National Corporations
LC: Letter of Credit
AL: Auto Loan
TQM: Total Quality Management
17
Part OneOPERATIONAL DUTY
SECTION I
1. Background
Prime Commercial Bank Limited (PCBL) arrived at banking industry as the 21st
Commercial Bank in the country with the mission of "Banking Service to Everyone".
PCBL provides quality banking services, along with aim to touch the life of each and
every individual customer. PCBL has highly focused on customized service and
competitive pricing, to provide extended valued service at competitive pricing.
PCBL has developed marketing strategy, for being positioned as personal bank when
customer hunts for financial service from a financial institution. The concept of PCBL
emerged among the prominent business personnel and professionals from diversified area
with a prime objective of providing 'Banking Services to Everyone' in the country, as
they believes, large number of Nepalese population is still deprived of basic banking
services. The bank, started its banking function, with two other new competitor banks,
even though bank has proved its superiority and achievement larger than its competitors,
in terms of market position, deposit, clients base. The bank has endeavored to position
itself as technology savvy, for adjoining the customer’s requirement for customized
service. PCBL is highly alarmed to experiment the concept of Total Quality Management
and Kaizen, to enhance its service for more customer, along with vision to developing
long term relationship.
PCBL products and services have been designed to cater requirements of the market,
hence the bank is always ahead in experimenting new concepts of products, service, and
constantly seeking opportunity to provide extended valued service to its customer to
make difference in the banking industry of Nepal.
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2. Objectives and Goals of Internship
As per the Curriculum of Kathmandu University, I had a wonderful opportunity of
getting a real life working experience in an organization, which would add value to me as
a student.
Before starting my Internship at Prime Commercial Bank Limited, New Baneshwor
branch, I had thoughtfully planned my objectives, and developed strategy to achieve it
during my internship tenure. Being student of Management, I have completed various
courses, on understanding various managerial aspects; hence in order to experience those
managerial aspects after understanding in the classes, an Internship experience was
necessity. I have attached essay on my internship goal at the appendix II, which conveys
brief idea about my internship goal.
I have developed certain internship objectives and expressed it in quantitative terms,
which I expect to achieve at the end of my internship; these objects are explained as
below.
Table 1: Internship Objectives
Internship Objectives
a. To gain experience on Deposit marketing in Door to Door Marketing and Personal Selling.
b. To achieve institutional deposit of Rs.1 crore (Rs. 10 millions) above.
c. To have client base more than 100 clients
d. To learn about Customer Service/ Relation Mgmt such as
i. Attending Customer.
ii. Managing Clients Information System.
iii. Related Operations through Customer
Service Department.
e. To commit 40% of Internship time at learning above duty.
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Achievement
These goals where achieve to a greater extent. I acknowledge that these objectives were
achieved through my operations, time management, sincerity, personal efforts and hard
work that I have devoted, during assigned internship period.
During this internship period, I bought total institutional deposit of Rs. 1.29 crores (Rs.
12.9 million) within ten weeks period of time through deposit marketing from total 118
clients both public and corporate clients.
At the same time, I learnt various operational work of customer service department, such
as attending customer, managing clients’ information system and many more.
Considerably, I was able to spend 40% of my internship period at Customer Service
Department as, in order to conclude Deposit marketing in good quantitative figures as
planned. Spending 60% of my time at Deposit Marketing and 40% of my time at
Customer Service Department (CSD) is highly complementary with Deposit Marketing
and Customer Service Department, in order to achieve targeted objective from deposit
marketing. Prior to going for Deposit Marketing one needs to understand the Banks
offered products and service, along with clients requirement and their nature. Customer
Service Department also helped to track clients and develop personal relationship with
clients. Synergy of Customer Service Department and Deposit Marketing has helped me
to achieve above desire objective.
I believe this experience has added tremendous value in me in various aspects, which
would help me in my future careers and higher studies.
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3. Introduction of the Prime Commercial Bank Limited.
Brief History of Banking in Nepal
The history of banking in Nepal dates back to the 14 th Century. Milestones in
development of today’s modern banks are captured in the table below:
Table 2: Development of Banking in Nepal
14th Century Introduction of "Tankadhari"
1938 B.S. Establishment of "Tejarath Adda"
1994 B.S. Establishment of Nepal Bank Ltd.
2013 B.S. Establishment of Nepal Rastra Bank
2013 B.S. Industrial development centre
2016 B.S. Conversion of Industrial development center into Nepal
Industrial Development Corporation. (NIDC)
2022 B.S Establishment of Rastriya Banijya Bank
2024 B.S. Establishment of Agricultural Development Bank.
2041B.S. Nepal Arab Bank Ltd. (NABIL Bank)
2042 B.S. Nepal Investment Bank Ltd.
2043 B.S. Nepal Grind lays Bank (Standard Chartered Bank)
2049 B.S. Himalayan Bank Ltd.
2064 B.S. Prime Commercial Bank Ltd.
Introduction
21
The Prime Commercial Bank Limited, the 21st commercial bank registered in the Office
of Company Registrar Kathmandu under the Ministry of Industry, Commerce and
Supply, on 2064/04/01 B.S. in accordance with the Company Act 2063 of Nepal. The
bank got its certificate of commencement as financial institution of Class “A” on
2064/05/30 B.S. under the Nepal Rastra Bank Act 2058, Banking and Financial
Institution Act 2063 and other applicable Acts of government of Nepal. The bank
commenced its operations as financial institution on 2064/06/07 B.S. corresponding
English date September 24, 2007.
The Bank 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
head office of the PCBL is situated in New Road Kathmandu and has 4 branches in the
valley including the head office and three other branches outside the valley which makes
a total of 7 branches at present, with new upcoming branches throughout the country.
PCBL, started its banking service to the public , with two other banks , where PCBL has
successfully able to better position itself in the market, in compared to other banks, in
short period of time.
CAPITAL STRUCTURE
22
The authorized capital of the bank is NPR 1500 million, of which 1000 million is the
issued capital and the total paid up capital of the bank at present is 700 million. The
promoter share constitute the major portion of the bank share which stands up to 70% of
the total capital structure and remaining 30% will be held by the general public for which
the bank launched I.P.O on May 24,2009. The Bank had the highest paid up capital from
the promoters among all the commercial banks in the country at the time of its
commencement.
Table: 3 Capital Structure
S. No PARTICULARS AMOUNT (NPR)
1 Authorized Capital 1500
2 Issued Capital 1000
3 Paid Up Capital 700
Figure 1: Capital Structure of the Bank
70%
30% PROMOTER SHARE
GENERAL PUBLIC
The above Figure 1 and Table 3 explain the Capital Structure of Prime Commercial Bank
Limited.
BANK VISIONS
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To position itself as a leading and well- established banking institution in its kind and
establish it as 'Bank with Difference'.
MISSION
a. To make a qualitative lending in the Nepalese market to support all kinds of
businesses including personal needs of the Nepalese citizens.
b. To render quick and prompt banking services to the customers.
c. To involve in aggressive marketing and business promotions to promote the banking
products and awareness among the citizens where the country has large number of
citizen who are still deprived from the banking services
d. To introduce new banking services and products.
e. To run the institution with an efficient and professional management;
f. To develop a good corporate governance and ensure adherence to the Central Bank
Directives as well as prevailing rules and regulations;
g. To develop an effective internal control system, Management Information System
(MIS) and compliance.
OBJECTIVE OF THE BANK
24
The main objectives of the bank in accordance with the Nepal Rastra Bank Act 2058,
Banking and Financial Institution Act 2063 and Company Act 2063 of Nepal are as
follows: -
a. To provide world class and reliable banking services provided safeguarding the
interest of the shareholder and the depositors are taken care off.
b. To uplift the Nepalese Economy by investing in the agricultural, industrial, service,
and other commercial sectors and providing the required financial assistance both
from the internal and external sources.
c. Maximum utilization of available skills, labors and capital by setting up commercial
activities both in rural and urban Nepal and assisting the government to manage these
industries for poverty alleviation.
d. Acting as a financial intermediary and collecting the scattered funds around the
economy and bring it into use for institutional investment purposes.
e. The bank will endeavor to establish itself as technology savvy, customer friendly and
try to maintain good relationship with its customers.
VALUES
a. The bank focuses on customer service and extends personalized service to gain
confidence of the customers;
b. The professional management team of the bank upholds a strong belief on team
work to deliver extraordinary result to the organization;
BOARD OF DIRECTORS AND MANAGEMENT TEAM
25
The bank focuses more on leadership skills and working in teams capabilities in its
management team. These two factors are considered as key success factors for any
organization. The rising trend of globalization and recent management turnover in the
leading bank of the world owing to recession has started demanding dedicated
professionals and PCBL is no exception to it.
The management team should not only be able to compete domestically, but also have an
international exposure as at present is 21st century world, with numerous opportunities to
be exploited, as well as sustain the great degree of rising competition in the sector. PCBL
management team comprises of experienced professionals with years of experiences in
different commercial bank and other financial sector of the Nepal.
The management team of the bank is committed towards the uplift men of the bank in the
height of success through customer satisfaction. The professionals comprising of present
Boards of Directors (BOD’s) and the management teams are as follows
Board of Directors
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Table 4: Board of Director
NAME OF THE
DIRECTOR
DESIGNATION EXPERIENCES
Mr. Narendra
Bajracharya
Chairman Past President Hotel Association of Nepal.
Experience in the Banking sector for past 30
years.
Mr. Uttam Narayan
Shrestha
Director 32 years of experience in Agricultural
Development Bank.
General Manager in NIDC Capital Market for 2
years.
General Manager Cottage and Handicraft
Industry for 1 Year.
Mr. Rajendra Das
Shrestha
Director 30 years of experience in industry and trading
house.
Mr. Shyam Bahadur
Shrestha
Director 4 years of experience in insurance companies
20 years of experience in Pharmaceutical
Industry
Mr. Uday Mohan
Shrestha
Director 2 years of experience in Banking Sector
25 years of experience in Hotel Industry
Mr. Umesh Shrestha Director President for PABSON for 6 years
30 years of experience in educational
institutions.
Above table 4 explains about the brief background about the Board of Directors of Prime
Commercial Bank Limited.
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Structure of Board of Directors
Figure 2: Board of Directors
Above figures shows the hierarchy of Board of Directors of Prime Commercial Bank
Limited.
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Narendra BajracharyaChairman
Uttam Narayan Shrestha(Director)
Udhya Mohan
Shrestha(Director)
Rajendra Das
Shrestha (Director)
Umesh Shrestha(Director)
Shyam Bahadur Shrestha(Director)
MANAGEMENT TEAM
Mr. Narayan Das Manandhar, Chief Executive Officer
Mr. Narayan Das Manandhar holds Master Degree in Commerce. He had his overseas
studies on financial management in United Kingdom. He has achieved remarkable
portfolio in his working career. He has altogether 34 years of working experience in
various reputed Financial Institutions. He has utilized his skills and shared his knowledge
as a Chief Executive Officer (CEO) in Lumbini Bank and Nepal Bangladesh Bank, and
contributed valuable time at Rastriya Banijya Bank as an Executive Director. He has also
worked as Deputy General Manager in Agriculture Development Bank Nepal. He has
also shared his experience in Rice Export Company as General Manager, FAO project as
Development Consultant, Rastriya Chamal Karkhana, Land Reform and Savings
Corporation.
To his credit, he also had the experience of working as member of various committees
constituted by the government of Nepal and also as Board of Director in various
institutions Agriculture Inputs Corporation (AIC), Nepal Oil Corporation (NOC). He had
attended to various international seminars conducted by various international agencies
such as APO, FAO, UN, and the US Government.
Mr. Sanjeev Manandhar, General Manager
Mr. Sanjeev Manandhar is a young professional having academic background of
Chartered Accountancy with graduation in science. He has gained 10 years of working
experience in auditing, finance and banking field. He has worked, as a member of
Management Team appointed jointly by World Bank and Central Bank for restructuring
purpose, in the position of Chief Operating Officer and Chief of Main Branch Office in
Rastriya Banijya Bank for four and half years. He has been a member of Board of
Directors of Nepal Investment Bank Ltd and Nepal Industrial Development Corporation
(NIDC) Capital Market. He has also worked as a Chief Internal Auditor of Nepal
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Indosuez Bank (a member of Credit Agricole Indosuez, France) which is presently a
Nepal Investment Bank. He has also an experience as a Finance Manager in Nepal
Telecommunication Corporation for two years and also shared his knowledge and skills
as audit manager at CSC and Co (chartered accountant firm). He has gained experience
as a lecturer in The Institute of Chartered Accountant of Nepal as well.
Mr. Moti Kaji Tuladhar, Deputy General Manager (Corporate)
Mr. Tuladhar holds an academic qualification of Master in Public Administration. He has
shown his working proficiency in different financial institutions and other organizations.
He has worked as Assistant General Manager in Global Bank Ltd. He has also worked as
an Executive Manager in Bank of Kathmandu for 12 years and as Assistant Manager in
Nabil Bank Ltd for 10 years. He has working experience in Indian Embassy for five years
and in Hotel Soaltee Oberoi for 5 and half year as well.
Mr. Bhai Raja Tuladhar, Deputy General Manager (Operations)
Mr. Bhai Raja Tuladhar holds Master Degree in Business Administration and has gained
19 years of working experience in banking sector. He has working experience of 12 years
as an Assistant Manager to Assistant General Manager, at Nepal Bangladesh Bank. He
has also worked for 7 years in Agriculture Development Bank, as an Account Assistant to
Branch Manager. He has received International Banking Course Training, conducted by
State Bank of Pakistan and also attended various banking training programs and
seminars.
Mr. Bhusan Shrestha, Head of Credit
Mr. Shrestha has an academic background of Master in Business Administration with
specialization in Marketing Research. He has shared his knowledge and skills in different
fields. He has worked for seven years in Nepal Investment Bank Ltd and was Deputy
Head of Credit Department of that Bank. He has also worked as Teacher/ Accountant in
Budhanilkantha Primary School, as a Marketing/ Sales Manager in Shrestha
Pharmaceuticals.
30
Mr. Suresh Man Singh, Head of Marketing
Mr. Singh has completed Executive-Masters Degree in Business Administration. He has
worked as Marketing and Operation Manager in Global Bank Ltd. He has also shared his
knowledge & expertise in various Department/ Branches of Bank of Kathmandu viz.
Branch Manager of Thamel , Nepalgunj & New Road Branch, as a Manager in Branch
Development & Control, Personnel & Administration (Accounts additional) & Central
Logistics (HR additional), as an Officer in operation department, as a Supervisor in
remittance department of the same bank. He has also worked as an Assistant in export
L/C & accounts department and as a Supervisor in Remittance department of Nabil Bank.
Mr. Sujan Pradhan, Head of Operations
Mr. Pradhan has an academic qualification of Master in Business Administration from
Manila, Philippines. He has worked as a head of operations and also handled ATM
Department in Nepal Investment Bank (Former Credit Agricole Indosuez Bank Ltd.). He
holds remarkable working experience in Accounts Department, Foreign Exchange &
Treasury Department at the same bank. He has taken various training programs of
International Banking from Japan, International Trade from London and Foreign
Exchange & Money Markets from Singapore.
Mrs. Anita Pradhan, Head of HR and Administration
Mrs. Anita Pradhan holds Master Degree in Business Administration. She has experience
of handling various portfolios in different Financial Institutions. She worked as a branch
Manager of Pulchwok Branch in Nepal Credit and Commerce Bank. She has worked as a
Researcher and Analyst in NIDC Capital Market Ltd., as a Manager in Hisef finance Ltd.
and as a Chief of Department in Marketing, Personnel/ General of Nepal Credit &
Commerce Bank Ltd. She has collected various trainings in Presentation and Negotiation
skill from British Council & FNCCI, Management of Finance Companies from MAC
Consultants, Writing for managers from British Council, Corporate Financial
31
Management by Higher Education Development Co-operatives Ltd., Fund Management
from UTI Group of India, Project Appraisal from NRB Training Center, Mutual Fund
Scheme and Financing from City Bank and other banking activities conducted by NRB.
Mr. Manoj Khadka, Head of Trade Finance
Mr. Manoj Khadka is a holder of Master degree in Business Administration. He has
worked as an Officer-In-Charge of International Trade Department in Bank of
Kathmandu Limited. He has also worked as a Branch Manager of Pokhara, New Road,
and Thamel Branch of the same Bank. He has participated in training/workshop/seminars
from International Trade Financing organized by MAC, International Banking organized
by SCB, Trade Financing conducted by NRB, Leadership for Business Excellence by
Institute of Banking Management, Pune (India), Enhancing Competitiveness through
Total Quality Management by NGCCI, MAN, and NQPCN. He has enhanced his career
by gaining additional working experiences as a lecturer from Pokhara College of
Technology, conducted various in-house training programs on Import & Export LC,
Local & International Guarantees, Banking operations at Bank of Kathmandu.
32
Organizational Structure of Prime Commercial Bank Limited
Figure 3: Organization Structure of Prime Commercial Bank Ltd.
The above figure explains the organization structure of Prime Commercial Bank Limited.
33
Chief Executive Officer
General Manager
Deputy General Manager
(Corporate)
Credit Department
Marketing Department
Operation Department
Deputy general Manager
(Operational)
HRM Department Trade Finance
Organizational Structure of Prime Commercial Bank, New Baneshwor
Branch
Figure 4: Organizational Structure of PCBL, New Baneshwor Branch
The above figure 4 explains the Organizational Structure of Prime Commercial Bank,
New Baneshwor Branch.
34
Branch Manager (Mr. Ashok Khadka)
Relationship Manager (Mr. Geha Ranjan Joshi)
Gold Loan Department (Mr. Ram
Bhakt Thapa)
Customer Service
Department (Ms.
Pratiksha K.C)
Cash Department (Ms. Kiran Shiwakoti)
Ms. Srijana Gajurel
Ms. Aarti Shrestha
Operations Departments (Mrs. Anupa
Koirala)
Mr. Naresh Pandit
Marketing Department (Mr.Bikrant
Rana)
Ms. Sajana Shrestha
BANK PRODUCTS AND SERVICES
The products and services of PCBL have been designed in a unique manner which
focuses on catering all the needs of the target customers. The bank aims on being chosen
as the first bank, to satisfy all the banking needs of the customers. The bank ensures its
clients with the positive attitude towards the client’s needs and strong mutual
relationship, the bank will be able to nurture the clients business and dedicate itself
towards the clients.
Table 5: Bank Products and Services
S.N
O
PARTICULARS MINIMUM
BALANCE (Rs)
RATE OF
INTEREST
BASIS OF
CALCULATION
SAVINGS
SAVING DEPOSITS
1 Public Savings 100.00 4% Monthly Min Balance
2 Normal Savings 1,000.00 4% Monthly Min Balance
3 Privilege Savings Not Required 4.25% Daily Balance
4 Prime Savings 50,000.00 4.50% Daily Balance
5 Prime Gold Savings 100,000.00 6% Daily Balance
6 Call Deposit Savings Negotiable 3% - 7% Daily Balance
FIXED DEPOSITS
1 Up to 1 Year Negotiable 6.75% Daily Balance
2 1 Year - 2 Year Negotiable 7.00% Daily Balance
3 2 Years and Above Negotiable 7.25% Daily Balance
BORROWINGS
BUSINESS LOANS
1 Overdraft As per the needs. 11% - 12% Daily Balance
2 Working Capital
Loan
As per the needs. 11% Daily Balance
3 Short term / As per the needs. 11% Daily Balance
35
Demand Loan
4 Term Loan As per the needs. 11% - 12% Daily Balance
5 Export Credit As per the needs. 10% Daily Balance
6 Hire Purchase Loan As per the needs. 10.50% -
11.50%
Daily Balance
7 Loan Against FDR As per the needs. FDR Rate +
2%
Daily Balance
8 Loan Against USD
Pledge
As per the needs. 7.50% Daily Balance
9 Trust Receipt Loan As per the needs. 10% Daily Balance
10 Loan Against
Government Bonds
As per the needs. 12% Daily Balance
11 Loan Against Share As per the needs. 10% Daily Balance
12 SME Loan As per the needs. 11.50% Daily Balance
CONSUMER LOAN
1 Loan Against Gold
and Silver
As per the need 11% Daily Balance
2 Mortgage Loan As per the need 12% Daily Balance
3 Professional Loan As per the need 11.50% Daily Balance
4 Equipment Loan As per the need 11% - 12% Daily Balance
5 Education Loan As per the need 11% Daily Balance
6 Housing Loan As per the need 11% - 11.5% Daily Balance
Along with above mentioned products of the bank the PCBL also provides
complimentary services such as Free ATM cum Debit Card, Free SMS Banking and Free
E- Banking to most of its products for extended facilities. In order to provide the ATM
and debit card services to the clients PCBL have tied up with Smart Card Technologies
(SCT Network) which have the most number of outlets across the country and accepted
almost all the parts of the country.
36
Contribution of Prime Commercial Bank Limited to the Economy
Commercial banks can be defined as organizations whose principal operations are
concerned with the accumulation of the temporarily idle money of the general public for
the purpose of advancing to other for expenditure.
Nepalese commercial banking industry is almost seven decades old dating way back to
the first commercial bank Nepal Bank Limited. After the economic liberalization and
deregulation in the 90s, Nepalese banking industry has seen some major developments
not only in terms of growth but also in terms of competition and efficiency. Nepalese
banking industry is also one of the few industries in the country that was able to excel
and grow even during the Maoist insurgency period. Nature of Nepalese commercial
banking industry can be summed up in few key points. They are given below:
a. Highly competitive in nature with as many as 26 commercial banks (and increasing)
b. Customer base for almost all banks are almost the same-all banks target the same
c. Presence of Joint-venture banks, Private Banks and government banks
d. Tight regulation by Nepal Rastra Bank (NRB) in most aspects of banking activities
Likewise, talking about Prime Commercial Bank Limited, is a 21st commercial bank of
Nepal, which is bright outcome of professional people from diversified background to
provide “Banking Service to everyone” in the country, basically for mass population,
who are deprived of Banking Services. PCBL commenced it commercial banking service
from September 24, 2007, after obtaining license of operation for Commercial bank from
Central bank. PCBL, started its banking service to the public , with two other banks ,
where PCBL has successfully able to better position itself in the market, in compared to
other banks, in short period of time.
37
Since its operation on September 2007, till date PCBL, has seven branches, including
Head office at New Road, and has further plan for extending its banking service to
various part of Nepal, where banking service aren’t available.
Table 6: Role of PCBL to Nepalese Economy
Roles of Prime Commercial Bank Limited to the Nepalese Economy
a. Loan for Economy Development
b. Providing Service at minimal cost.
c. Providing Innovative Products
d. Increasing Competition Standards
e. Sustainable Growth
a. Loan for Economy Development
Prime Commercial Bank Limited is the 21st commercial bank in the Nepal. As new
commercial bank, PCBL would provide lending facility to mass, which would help them
for various investment opportunities, gradually uplifting their living standards. Equally
PCBL would also provide lending facility, to the mass for other multiple development
activities.
b. Providing Service at minimal cost
As a new commercial bank, PCBL is concerned for providing its banking service to the
people at minimal cost to better position itself in the market, proper product placement,
and also to extend it service to potential clients, which provide mutual benefit to people
and economy and ultimately extending the market share of the bank.
c. Providing Innovative Products
In order to sustain in the competitive environment and to offer competitor advantage to
the customer, PCBL has launched various innovative products in the market such as
Prime Gold Loan (PGL), and Prime Gold Saving (PGS). With respect to market needs
38
and wants, PCBL will be inclined towards market and develop more suitable innovative
products and service. The bank is also tempted to experiment new concept for products
and services.
d. Increasing competition standards
PCBL has entered into the market with better competitive strategies, vision, mission and
objective so it can develop proper brand equity of PCBL in Nepalese market, which has
finally increase the competition standards of overall banking sector in Nepal.
e. Sustainable growth
If we go thorough current Nepalese Banking industry scenario, there are various other
banks that have penetrated domestic market. In order to better position them self, other
banks such as Sunrise Bank, Citizen and Bank of Asia (BOA) they are coming up with
aggressive marketing with various schemes, which would look very much competitive.
But PCBL has different approach, as they are coming up with the concept of sustainable
growth, where they aren’t taking too much risk of the public money, which would
position them self as more trust worthy bank, which isn’t ready to take risk with public
deposit.
Competitor Analysis
In the section, I have allocated three commercial banks, which is of same batch to PCBL,
as it would be much more appropriate to compare with. Here I have thought of comparing
four banks including PCBL.
There three other banks are
a. Sunrise Bank Limited,
b. Citizen Bank Limited,
c. Bank of Asia Limited,
d. Prime Commercial Bank Limited.
39
Competitor Analysis can be performed in two methods
a. In terms of Current Position
Here the Current Position, of the banks is compared in term of Deposit, Loan Disbursement, Total Assets, Operating Profit and Net Profit. This helps to identify the current position of the bank and its performance.
Unaudited Financial Results of Commercial Banks (Quarterly)As at Third Quarter (13/04/2009) of the Fiscal Year 2065/2066
Table 7: Competitor Analysis in terms of Current PositionCITIZENS20
(Rs “000”)
PRIME2
(Rs “000”)1
SUNRISE22
(Rs “000”)
BOA23
(Rs “000”)
Deposit 9198236.0 9280870.4 10042465.9 6623192.0
Loan Disbursed 6976211.0 9061876.7 7708345.6 6181553.0
Total Assets 11277068.0 10984614.8 12028593.1 8776381.0
Operating Profit 102349.0 146197.1 103962.4 50337.0
Net Profit 65212.0 93034.5 66157.9 32033.0
In the above table, name of the banks are properly ordered in terms ascending order. As
Citizen Bank20 is 20th Commercial Bank of Nepal and BOA23 is 23rd Commercial Bank of
Nepal.
If we go through the above table, we can observe that Sunrise Bank has the largest share
of deposit, where PCBL comes second in terms of deposit likewise, and Bank of Asia
(BOA) shares lowest share of Deposit, within the batch. In terms of loan disbursement,
PCBL has the largest share and BOA has the lowest among all four. In terms of Total
Assets Sunrise has the highest Total Share and BOA has the lowest Total Assets.
Similarly, in expression of Operating Profit and Net Profit, PCBL is far ahead than other
three banks, within the batch.
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b. In terms of Products and Service Offering.
Generally, there are various ways in which the banks can be compared in terms of
Products and service offered, but I have selects following criteria for comparing the
banks calculating their efficiencies.
Table 8: Competitor Analysis in terms of Products and Service Offered
CITIZENS20 PRIME21 SUNRISE22 BOA23
Interest Rate on Saving
(Highest % offered On Daily Balance) 7.5% 6.00% 6.60% 6.00%
Fixed Deposit
(Max Interest offered) 8.5% 7.25% 6.25% 8.00%
Overdraft
( Max Interest Charged) 12.25% 11.00% 12.5% 11.00%
Term Loan
( Max Interest Charged) 12.00% 11.00% 12.5% 12.00%
Housing Loan
( Min Interest Charged) 9.00% 11.00% 9.75% 14.00%
In the above table, name of the banks are properly ordered in terms ascending order. As
Citizen Bank is 20th Commercial Bank of Nepal and BOA is 23rd Commercial Bank of
Nepal.
Looking at the above table, in terms of Interest rate Max offered at Saving Account
Citizen Bank is offering 7.5 % on daily balance which is highest among the all four banks
and BOA and PCBL are the banks to provide lowest interest rate on daily balance. In
terms of Fixed Deposit Citizen Bank is offering 8.5% where as Sunrise Bank is offering
lower interest rate of 6.25%.
Differently, in terms of Loan, if observe through Overdraft Sunrise Bank is charging
more than any other bank, among all four banks, which is 0.25% higher than Citizen
41
Banks. In terms of Term Loan, Sunrise bank is charging 12.5% which is the highest
among all four banks, where PCBL is charging the lowest interest of 11%. Finally in
terms of Housing Loan, Citizen bank is charging lowest interest rate of 9.00%, where as
BOA is charging highest interest rate of 14%.
Through looking at the both the Table No: 7 and Table No: 8, it is clear that PCBL is
performing well in the market and has better operation efficiently. Despite of providing
lower interest rates on Deposit, PCBL is successful to allocate higher number of deposit
after Sunrise bank. Correspondingly, even in terms of loan disbursement PCBL is also
performing amazingly regardless of charging higher interest rate, PCBL is largest share
of loan disbursement.
From above comparison, it is clear to understand that, PCBL is performing better and has
better greater opportunity of extending the market share.
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SECTION II
1. Roles and Jobs performed during the Internship
Roles Performed
During my Internship at PCB, I got opportunities to perform various roles that are as
follows
a. Performed Marketing role during Deposit Marketing, in order to bring public deposit
base at the New Baneshwor Branch.
b. Performed Sales Roles at New Baneshwor Branch, by explain the products and
service of the banks to the customers and clients
c. Performed Information Role, by communicating the necessary information’s to the
potential client and offer them required documents and formats for preparing their
report.
d. Performed Assistant Role, by assisting marketing manager and marketing department
by helping them to formulate strategies and effectively implement those strategies, in
which the bank can effectively convert those potential clients into existing clients.
These are the roles that I had performed during my internship at PCBL, New Baneshwor
Branch, for ten consecutive weeks. Performing these roles has added value on me that
would also help me for my future careers.
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Jobs performed in Internship
As an Intern at Prime Commercial Bank Limited, as our operation duty, I had to perform
activities at Customer Service Department
Customer Service Department
According to Wikipedia “Customer service is a series of activities designed to enhance
the level of customer satisfaction that is, the feeling that a product or service has met the
customer expectation.” The Customer Service department is responsible for handling,
order processing, product and service questions, pricing information, system transfers,
and other general inquiries. Like every organization, PCBL is also highly concerned
regarding customer satisfaction, where increase customer satisfaction relates to increase
in the productivity of the PCBL. In order to increase its customer service, the bank has
applied and experiment the concept of Total Quality Management and Kaizen.
Responsibilities at Customer Service Department
a. Attending Customers
At the PCBL, when clients pay visit into the bank, they are first greeted by the front line
staff positioned at Customer Service Department and they are asked about their purpose
of visit. Then Customer are guided or followed by the staff as per their requirement, after
understanding their purpose. For example if they want to open an account, they will be
systematically guided by the staff through the selling process.
b. Explaining Products and Services to Clients
There are various functions about CSD; Selling function is one of the core functions of
CSD, where any tangible products aren’t sold but bank’s intangible products that are the
banks deposit accounts are explained to the customer. PCBL has various products and
service; each and every product is explained in general to the customer. If the Customer
is convinced, and if they are able to align the product attributes with their requirement
then they likely to open a bank account.
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c. Managing Clients Information System
Another important functions carried out at CSD, is managing customer data base, from
clients first account entry to clients account termination. Here at CSD, were had an
opportunity to use Pumori Banking Software, where I was assigned to process
information of account application form into information system, that generate, clients
information, including other crucial information such as customer’s account number to
their funds deposited at the banks. This opportunity made me familiar with the banking
software.
d. Maintaining Customer Files
As operational duty, I had to work for CSD, where I was also assigned to manage the
files and Documents relating to customer accounts, for further smooth and efficient
functioning, which would benefit overall corresponding departments, for example Cash
and gold loan department. After the clients information are kept into the information
system of bank, the hard copy data such as signature specimen card and application forms
should be efficiently managed, for future reference. At CSD I had to maintain hard copy
documents including account application form, check requisition, check inventory, ATM
issued registers, and statement registers. These documents where correctly managed with
the objective to provide reference in future.
e. Providing Checks and Receiving Checks Requisition
At CSD Check requisition form received, which are basically attached to the customer in
the account opening form, and after opening an account, and check requisition form is
processed to develop customer’s checks. After processing the check requisition, we
provided them checks them within two days of receiving check requisition.
f. Attending telephone calls
Attending phone calls of customer and transferring the, call to the respective department
was another responsibilities carried out at Customer Service department. So in order
words, we had opportunity to learn some receptionist experience too.
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g. ATM and Debit Card Issuing and Verifications.
As in terms of Nepalese Market, people are getting much more mesmerized by the ATM
(Automated Teller Machine) card culture and people are highly interested having one.
When I was positioned at CSD I got an opportunity, to manage the disbursement of ATM
and Debit card of Smart Choice Technology (SCT). I had to manage the disbursement
through an effective process, first customer gives, ATM /DEBIT card application, then
after receiving, we send the applied form to concerned department of Head office, and
then ATM/DEBIT card is received to the branch CSD after around two weeks of time.
When customers arrive at CSD to receive their card, we verify the card no, card pin
number at first and then the customer’s signature to ensure the card goes into the safe
hands, and when thing goes properly the card is given to the card holder or the right
customer.
This was basic process explained in short about the ATM/DEBIT card issuing and
verification process.
Contribution towards the Organization
My contributions to the PCBL, at the end of my internship can be categorized as below.
a. Marketing banks Products and Service
b. Developing Brand Equity
c. Brought 118 Clients with total deposit base of 1.29 crores.
d. Brought client to start SWIFT transfer from New Baneshwor Branch
e. Identified and converted clients to start Staff Salary Account.
As an intern, my contribution to the PCBL as mentioned above, within short span of ten
weeks. Above mentioned achievement are outcome of my hard work, sincerity, personal
skills, and network and loyalty.
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2. Projects carried out during internship period
During my Internship, as the project, I had carried out Deposit marketing, which is
generally every intern is assigned at internship. At deposit marketing interns had to
perform door to door marketing and personal selling to increase deposit base in the bank
and increase the client base, from both individual clients and corporate clients.
Deposit marketing is promotional process; through which products and service of bank is
explain to targeted audience and matching the audience financial requirement with the
communicated products and services.
Prior to beginning deposit marketing, I had to take Internship Orientation class at Head
Office, New Road. Our internship orientation class was taken by Deputy General
Manager (DGM) Moti Kaji Tuladhar. He gave us clear instruction and motivated us by
sharing his words of experience and knowledge. Later I was assign to New Baneshwor
Branch, where I performed Deposit Marketing for consecutive ten weeks. At the end of
ten week I was successful enough to bring total deposit of 1.29 crores to the bank,
through 118 clients. During deposit marketing at New Baneshwor Branch, I was able
bring first corporate client for SWIFT transfer and Staff Salary Saving Account.
During my Deposit Marketing I performed following marketing
a. Individual Deposit Marketing
I marketed banks products and services to the individual public, initially in order to
commence my marketing in general. For individual marketing I started from marketing
products to my relatives and my friends whom at I knew. I communicated to my relatives
and friends from telephone and informed them about my internship at PCBL and my
marketing assignment. From Individual marketing I got self confidence and I understood
the concept of deposit marketing. By end of my internship I was able to have around
47% of Individual Clients, in numbers they would be around 55% clients.
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b. Corporate Marketing
Another side of deposit marketing was corporate marketing where, I visited around
corporate offices; I had opportunity to market PCBL products to Organization situated at
New Baneshwor Area. The experience of corporate marketing was completely different
from that of individual deposit marketing. For Corporate Marketing, I tracked Insurance
Companies, Media Houses, Educational Consultancy, Saving and Co operative, Non
Profit Organization, Business Houses and many more. At the end of my internship I was
able to cater around 53% of the clients were corporate clients out of which 63 accounts
were opened.
In corporate marketing, I offered Call Deposit, Current Account, Staff Salary Account
and Fixed Deposits as per the requirement of the Organization.
c. Swift Marketing.
The Society for Worldwide Interbank Financial Telecommunication (SWIFT) operates a
worldwide financial messaging network which exchanges messages between banks and
other financial institutions. SWIFT also markets software and services to financial
institutions, much of it for use on the SWIFT Net Network, and ISO 9362 bank identifier
codes (BICs) are popularly known as "SWIFT codes". The majority of international
interbank messages use the SWIFT network. As of November 2008, SWIFT linked 8,740
financial institutions in 209 countries. SWIFT transports financial messages in a highly
secure way, but does not hold accounts for its members and does not perform any form of
clearing or settlement.
During my marketing assignment, I had an opportunity to perform marketing for SWIFT
Transfer service of the bank, from where bank charges certain fee on the total amount
transferred. For SWIFT transfer I basically target Educational Consultancy and Business
Houses. Since our branch was new and despite of having SWIFT transfer service, due to
lack of clients SWIFT transfer weren’t initiated. So during my deposit marketing, I along
with another intern happen to bring first clients International Multi-trade, Mr. Dilip
Shrestha, who used SWIFT transfer to send Euro currency to Cyprus to Americano
College of Cyrus.
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d. Credit Marketing
Credit marketing, basically refers to finding clients for loans. Credit Marketing is also
knows as Loan Marketing. Though Credit Marketing isn’t the assigned task I got from
the bank, but due course in deposit marketing, I happen to communicate with the clients
and they asked for loans. In my experience, most of the clients were demanding for
Overdraft, Auto Loan, and Housing Loan. Since I didn’t had any authorization regarding
loans, in order to satisfy my clients, all I could do was to recommend the client to the
relationship manager and explain him about the clients background in short and arrange
meeting for both sides.
Figure 5: Client Base Developed During Deposit Marketing
This Figure explains that number of client made, during deposit marketing at PCBL.
From total of 118 clients 53% of clients were corporate clients and likewise remaining
clients were individual clients.
To Support the Methodology used in performing deposit marketing assignment, I have
attached my Interview with work supervisor along with another intern at appendix III.
49
3. Strengths and weaknesses in carrying out projects
Table 9: Strength and Weakness
Strength Weaknessa. Positive attitudeb. Energetic c. Continuously learningd. Good team playere. Able to Inspire othersf. Ability to develop PRg. Persistence and
Commitmenth. Punctual and Honesty
a. Introvert sometimesb. Lack of proper planningc. Over committing various taskd. Unable to carry out work correctly e. Speedy in work.f. Losing focus quickly
I believe that life is a learning experience and being able to understand my own strengths
and weaknesses can help me to be better individuals in my future career that I choose to
do. Knowing myself and what I can do, can help me to understand and overcome my
weaknesses.
One of my greatest strengths at work that I posses, would be my positive mindset towards
my work. When I am assigned certain task or when I am performing a task, I always
perform with a positive attitude, which boost up my confidence level and increases my
productivity. Once I begin my work, I work with all my energy, I don’t like to perform a
work being lame and I don’t believe in languorous performance, whenever I do a work I
put 100% of me on my work. I think I have always considered about myself is that, I am
a human being and no one is perfect. But I always believe with my positive mindset that
one can be nearly perfect, for which one should be always motivated and interested in
constantly improving one’s skill and knowledge. I enjoy speaking, listening and giving
input to my team members with this perspective I suppose myself to be a good team
player, as I feel that I can also add some value in team effort, as I am always charged
with energy along with clear intention.
Similarly, I strongly believe in being polite and displaying humble behavior can inspire
people for synergized team effort. I assume that I have good interpersonal skills through
50
which I can have good public relationship. Another Strength of mine would be is that I
always keep my effort to be persistent and constant, until and unless I achieve that is
targeted. If I am assigned a task, even though I face challenges, those challenges don’t
influence my persistent and constant energy for that work. These are the strengths of
mine which I have discovered and analyzed through my internship opportunity.
Despite of having strength it is also clear that I do have certain weakness, which I need to
analyze and convert it into strength for my further progress of my career. I am generally,
extrovert, but I have realized that at certain point of time and certain cases I act as
introvert, I tend to stay alone, after work, I less prefer to go out with friends. I understand
I have good intern personal skills, but sometime being introverts prohibits me to make
new friends and colleagues sometimes. Likewise I cannot make efficient planning, for
carrying out my work. Being energized sometime, I tend to make promises that I can’t
keep, which generally is the root of cause of disputes within me and my team members.
Likewise sometimes, I want my works to be in completed in higher pace that ultimately
reduces my corrective in action. My concluding weakness that I have felt is that I tend to
lose focus easily and quickly, because whenever I attend to customer, I get diverted
easily, where I cannot understand their actual requirement and services. In my real life
experience I had to various consequence of losing focus easily.
These are my basic weakness and I am looking forward to have to improve weakness to
strategically convert them into my strengths
SECTION III
3. Roles of departmental heads and intern’s supervisors
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Figure 6: Organization structure of PCBL, New Baneshwor Branch
In above diagram, Organizational Structure of PCBL, New Baneshwor Branch is
explained. PCBL, New Baneshwor is fully functional branch that has all the required
facilities, more than any other branches of other banks. Further explaining PCBL
Baneshwor branch, the branch is basically divided into four departments as show above
in figure as below.
Branch Manager
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Branch Manager (Mr. Ashok Khadka)
Relationship Manager
(Mr. Geha Ranjan Joshi)
Gold Loan Department
(Mr. Ram Bhakt Thapa)
Customer Service
Department (Ms.
Pratiksha K.C)
Cash Department (Ms. Kiran Shiwakoti)
Ms. Srijana Gajurel
Ms. Aarti Shrestha
Operations Departments (Mrs. Anupa
Koirala)
Mr. Naresh Pandit
Marketing Department (Mr.Bikran
t Rana)
Ms. Sajana
Shrestha
Mr. Ashok Kumar Khadka is positioned as Branch Manager for New Baneshwor Branch,
of Prime Commercial Bank. Mr. Khadka is chiefly responsible for directing the bank
towards its objective and looking after the overall smooth functioning, which focuses on
achieving the targeted objectives set by the BOD of the bank. Mr. Khadka is basically
focused on making strategic decisions and planning the objectives of the bank. Roles of
Mr. Khadka can be classified as followings.
a. Maintain personal contact with customers and all employees on the branch to insure
customer satisfaction.
b. Conduct weekly department head meetings to reinforce bank standards and
procedures.
c. Conduct performance evaluations for all department head and key personnel as
scheduled.
d. Conduct weekly branch evaluations with department head to determine any action
necessary to maintain and elevate branch standards, setting goals and objectives to be
reviewed during the next branch evaluation.
e. Analyze and implement any actions necessary to maximize local market share.
f. Represent the Bank on all local community matters and insure that representation
creates goodwill and promotes community economic development.
Relationship Manager
Mr. Geha Ranjan Joshi is positioned as Relationship Manager for New Baneshwor
branch. Mr. Joshi functions under the Supervision of Branch Manager. Being a
Relationship Manager, Mr. Joshi is also responsible for handling and controlling the
overall functions and activities of loan department of the branch. Mr. Joshi is also
assigned as supervisor for all the interns received at the bank. As explained above Mr.
Joshi handles all the customer that pay visit to branch with the objective of acquiring loan
from the bank, similarly he also seeks to develop and maintain long term relationship
with the clients, in order to increase the clients’ base of the bank for particular branch.
53
Mr. Joshi main job is to look after the execution of the strategy and decisions and looking
after the general operations of the banks and other departments of the bank. Roles of
Relationship Manager can be classified as:-
a. Develop the Bank's long-term strategic partnerships with the clients
b. Develop an in-depth knowledge of client's vision, strategies, programs and projects
c. Develop an understanding of client's day-to-day administrative and banking activities
d. In charge of the loan department.
e. Supervise other departments of the Branch.
Cash Department
As any other bank, PCBL also consist Cash Department, where it is solely concerned
about receiving and clearing checks. In terms of receiving both cash deposit and checks
deposits, and disbursing both cash withdrawals (for cash withdrawals account holders can
ask withdrawal slip, if they want to withdraw amount less than five thousand, for higher
amount, they can use checks) and checks withdrawals.
Here Ms. Kiran Siwakoti is assigned as department head where as Ms. Shrijana Gajurel,
and Ms. Arati Shrestha as positioned to assist Cash department. Cash department is
supervised by Mr. Joshi where as Ms. Siwakoti is highly responsible for major functions
like checks deposit and withdrawals. Similarly, Ms. Shrijana and Mrs. Arati Shrestha are
positioned to both support and assist for effective and efficient functioning of Cash
Department. The roles of Ms. Siwakoti as department head can be classified as
a. To supervise, process of everyday transactions, including deposits, withdrawals,
transfers, and payments,
b. To influence others staffs of Cash department to provide quality customer service,
each and every time a customer walks through the door.
c. To reconcile the every transactions made by the Cash department and verify the
transactions.
Customer Service Department
54
Customer service is a series of activities designed to enhance the level of customer
satisfaction. With the motive to enhance customer satisfaction at new Baneshwor branch,
PCBL management has placed experienced and diligent personal at CSD.
The CSD is the first place of interaction of the client with the bank and I got maximum
opportunities to learn and perform almost all the functions of the CSD and help the bank
to carry out its operations and functions. When entered the bank as an intern CSD
formally looked by Mrs. Koirala, who was later promoted and transferred to the
operations department and Ms. Pratiksha became the new in charge for the CSD of the
branch. While working with Mrs. Koirala I had great pleasure to learn and experience the
major functions and jobs of the CSD. Similarly it was also a good experience to work
under the guidance of Ms. Pratiksha, where I learned some of the crucial functions such
as operating customer information system along with other different functions of the CSD
as mentioned earlier. Roles of Ms. Pratiksha K.C as customer service department head
can be classified as
a. Carrying out interpersonal role and acting as organizational figurehead
b. Carrying out Liaising function with both the external customers and internal
customers
c. Executing informational role, for monitoring customer, disseminating information to
concerned person of other departments as per requirement.
d. Handling disturbance among the interns, customers, and resolving conflicts by
negotiating, influencing and coaching interns, customers.
Marketing Department
The marketing department concerned with developing the public relations of the branch,
which is managed by Mr. Rana under the supervision and guidance of Mr. Joshi. The
marketing department is responsible for identifying the clients and their needs and
offering them the best products and services, which satisfy their thirst of a reasonable
service. While working under the marketing department I was responsible and had to
55
report to Ms. Shrestha regarding my daily activities and for daily feedback purposes. The
roles of Mr. Rana as head of marketing department can be classified as.
a. To provide information to the interns about the Organization, Products and
Service offered and clients information.
b. To guide interns for the deposit marketing
c. To segment local market among the interns and assign responsible for segmented
markets
d. To evaluate and control the marketing activities of the every intern.
Gold Loan Department (GLD)
PCBL as being 21st commercial bank of Nepal, it has to be competitive and continuously
innovative, in terms of product, concept, attributes and ideas. Before a year, PCBL came
out with the new product concept of Prime Gold Certificate (PGC) , where customer can
deposit their gold to the bank, and bank issued certificate to the depositor customer
stating, they have deposit certain weight of gold at the bank. The PGC seemed to be
effective products to those customers, who went for lockers for safeguarding their assets.
With the concept to further improve PGC, the bank came up with the concept of Prime
Gold Loan (PGL). Where customers could deposit their gold and take away loan as per
the scheme within less period of time. This concept is still one of the successful products
of PCBL. Gold Loan Department came into existence, in order to support the PGL
product. The main function of GLD is to ensure and verify the quality and determining
the value of gold that is brought by the customer. Mr. Ram Bhakta Thapa is positioned as
head of GLD, who checks the quality of gold and calculates it market value to supports
loan department for making specific decision for granting loan. The roles of Mr. Thapa as
head of Gold Loan Department can classified as
a. To ensure the quality of the gold,
b. To determine the market value and financial value of the gold,
c. To assist Relationship manager for making decision regarding providing loan to the
customers
56
Operation Department
The operation department is managed by Mrs. Koirala under the supervision of Mr. Joshi.
Operation Department is held responsible for looking after the overall operations of the
bank. It’s the duty of the operations department to ensure the effective operation of the
entire placed department, making them available the required resources, maintaining and
updating the different forms of inventory of the branch along with looking after the daily
transactions and account opened by the bank. The roles of Mrs. Koirala as the head of
Operation Department can be classified as,
a. To meet, exceed all service and process related parameters as laid
b. To efficiently monitor responsibilities assigned to the other department
c. To carry out strategy for implementing the banks objective and mission
d. To ensure the customer satisfaction, through Total Quality Management.
4. Lessons learned from co-workers
Internship at PCBL is one of the most precious lesson experience and corporate exposure
that I have gained so far as a management student. I must mention that working
environment at PCBL is very admirable compared to other organization where I have
performed internship.
Explaining about the work environment, every employee of the branch from the top to
bottom, whether it’s Branch manager or assistant teller everyone carries the feeling of
pride for working at PCBL which is very much essential for work productivity. Along
with that, management has made such a environment where every employee give their
full effort to their work, including their honesty, co cooperativeness. One of the good
culture intensity that I found among the employee is that everyone holds the caring
attitude towards each other, which is highly essential for teamwork. Everyone displays
the feeling of collective responsibility, exhibit feeling of trust among each other that
makes a boost up in their performance. Sharing my experience of working with fellow
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workers, I would say it was a productive, prolific and fruitful experience along with
exposure.
Learning is basically a continuous process, where knowledge is gained over time, which
reflects permanent change is behavior. Within this excellent opportunity, I have learned
things both personally and professionally.
Table 10: Learning Experience
Personal Experience
Explaining about personal learning, I have learned and realized that whatever, where ever
you work one always needs to have positive attitude for better performance, this helps to
gain self confidence. I have learnt to be extrovert; communicative to the co workers,
earlier, as I was a bit introvert being less open communicative with others. I have realized
one should trust team members as trust influence your involvement and maintain the
creativity within the team members. While working in team I also came to realize, one
factor which maintains the team chemistry and combined effort is mutual respect among
members.
Personally I also have learnt things that helped me to understand and analyze my
weakness and converting them to my core strengths. While performing in group or team
work, every member should have a feeling of collective responsibility; this makes equal
participation in the task from every team member and no one beholds the idea of
scapegoating. Equally one should take care of their team members because a task is result
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Personally Learning Professionally Learning
a. Positive Attitudeb. Extrovertc. Trustd. Mutual Respecte. Collective
Responsibilityf. Feeling of Caring and
Pride
a. Punctualityb. Marketing Skillsc. Communicating Skillsd. Customer Handling Techniquese. Motivating Skillsf. Using Pumori Software.g. Product Presentation skills
of combined effort and if one member doesn’t work as standards, the whole team attempt
to assignment is pulled back or dropped down.
Professional Experience
At the work environment, I got a good opportunity to see, how people work in team and
how they put their synergized effort for better outcome. I learnt from my supervisor, if
you are at work you should learn to respect client’s time so I learnt to be punctual. I also
learnt other personal and marketing skills from Ms. Sajana Shrestha about how to
develop marketing skills as she used to motivate us for every effort we put into.
Respectively, from her orientation I realize importance of customer handling techniques,
as customer are diversified, everyone doesn’t have similar taste, attitude, perception and
similar preference over particular product. She used to repeatedly tell me that for good
marketer one should always have efficient communication skills with proper mix of
polite words and tone adding hospitable behavior for winning the hearts of customer.
During my work experience with Ms. Pratikshya K.C, I had an opportunity to learn and
use Pumori Software what is used in bank for managing client’s database and accounts.
Finally from managerial perspective, I have learnt that while working in team one should
posses leadership skills have motivating skills and consider motivate every team
members for good synergized effort.
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SECTION IV
4. Initial and End expectations/perceptions
With the due course of Kathmandu University, every individual undergraduate student
has to acquire an internship experience, from an organization before, completing the
undergraduate course.
In terms of my experience, I thought of having an internship experience at a commercial
bank of Nepal. Through the environment analysis, banking industry is the only, one of
the major industries, which is able to place as a strong and successful sector despite of
large competitor base and poor political environment. If we further look towards the
current scenario and market, about the banking scenario of Nepal there are all together
around twenty six, commercial bank in Nepal, were all these commercial banks are
running on profit compared to other industries such as textile, carpets, tire industry.
Despite of these fact, that Nepal is developing nation with primitive market structure,
every commercial bank are capable of making profit out of every activities that they
perform. According to Report of Central Bank of Nepal, by the end 2065 B.S, total Net
Profit earned by all the twenty six commercial bank was about more NRS.210 cores
(NRS.21 million). Out of which, new commercial banks were making lower profits, near
around two to three cores, one thing I found out that, new commercial banks are facing
the challenges better position themselves in the market and the for the organizational
growth.
I realized that going to the newly established bank, where I would get an opportunity to
learn many things, if I relate my internship with my future career. I personally believe
that where there is a problem, there is an opportunity, so thought of accepting challenges
to learn new things. Similarly, looking through the tables of new commercial bank, I
found Prime Commercial Bank Limited, as the organization that I was looking for as new
banks has new management team more challenges and more threats, with regard of
learning more, and I applied for the internship.
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After applying for the internship, I was a bit confused about from where should I start my
internship, where shall I place myself so I get to learn more and sharpen myself interns of
my future career. Thoughtfully thinking, I decided of doing my internship at, Credit
department. Basically, the banks collects money from the public and in return, provide
certain interest, here the challenges lies in capitalizing the resources that is available to
the bank. Basically, option available to the bank would be grating loan to the needy
people, at the same time bank has to consider about three things that are risk, return and
time. Mobilizing the resources and converting it into profitable venture isn’t an easy job,
along with expectation to develop personal relationship, I decided myself that I would be
applying at the Credit Department of Prime Commercial Bank Limited as I found it more
challenging.
With perception to apply for Credit Department at PCBL, I had the option to choose the
branch as PCBL had around seven branches including the head office located at New
Road. As earlier I was a bit confused regarding which branch I should be applying for, as
three branches are out of Kathmandu valley and as per remaining branch, four option was
available, New Road as head office, New Baneshwor branch, Patan Branch, and finally
Balaju branch. I was very much confused deciding the branch so I had to consult with
Senior Alumni of Kathmandu College of Management (KCM) Mr. Sujan Karki. He
suggested me to target for the Head Office situated at New Road. With discussion and
analyzing myself about the four branches within the valley, I found that head office more
justifiable than other six branches compared because of the following reasons,
a. New Road as a financial hub.
New Road is the financial hub, busiest high street of Nepal. It literally refers to a four
lane street in the center of Kathmandu. However, the term also denotes the neighborhood
of the street. It is one of the busiest marketplace and trendiest hangouts of Nepal. New
Road area is situated at Kathmandu, the capital of Nepal, where it lies at the centre of the
capital. Since the history New Road is considered as the trading place where seller from
different place used come and buyers from all over the country used to come and trade
for the products which they liked. Even today, New Road is the most develop market that
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country has to offer. Looking through the consumer buying behavior of local people of
Kathmandu, they prefer shopping at New Road from apparels to other electronic gadgets,
rather than their shopping at their local residential market.
b. Larger market
New Road as the most diversified market, where this market has to offer versatile
products. Every merchant prefer to open their store at New Road at first compared to
other markets available in the country. New road receives visits from more than ten
thousand potential buyers every day, resulting higher customer flow and economic
transaction than any other market.
c. Being the Head Office.
Generally in every organization, head office carries more function and department than
any other branch, with high amount of work loads and opportunity; with higher customer
flow.
These are the core reason why I was highly convinced to apply for New Road branch and
I believe doing so I would add value at the end of my internship. So, I finally decided to
do my internship at Prime Commercial Bank Limited, New Road head .
Prior Expectation
I had an expectation from PCBL, to learn various things, initially. Achieving my
internship objective was one of my highest expectations that I had on top of all.
Discovering in dept about me and understanding my strength and weakness was another
expectation that I had. I wanted to explorer myself and analyze my core weakness and
generate strategies to overcome my weakness. After applying for internship at Prime
Commercial Bank Limited, they asked me to attend the internship orientation class on
19th February. We had internship orientation class at head office, which was hosted by the
Mr. Moti Kaji Tuladhar, Deputy General Manager of PCBL. I had a good experience,
taking that class, I began to understand about Banking environment and PCBL’s position.
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After internship orientation, I was informed that I have been assigned to New Baneshwor
Branch, for Customer Service and Deposit marketing. I talked to DGM and explained
him about my targeted internship as per placement, but he told me that he couldn’t help
me regarding my planning. But he explained me that PCBL provides internship in just
Customer Service and Deposit Marketing. I was really angry about the circumstances it
wasn’t as per my prior expectation, I wanted to learn something, but I was positioned
somewhere else and as I didn’t find marketing as new and challenging though I had prior
experience of Marketing at Vaidya Organization of International Trading House
(VOITH), Toyota during my Sales Internship. But I didn’t have any other option, either
so I forced myself as I didn’t had enough time to hunt for other organization.
I was somewhat convinced about Customer Service Department but, idea about Deposit
Marketing Highly bugged me out. Earlier I thought go personally visiting people and
asking for deposit individually wasn’t something challenging as per the standards, so I
was technically ignoring, in other words I would say “I didn’t wanted to do it”. This was
what I felt the beginning at the internship, but later I as time went by I enjoying as I had
to prove myself to the bank and to myself for self actualization.
My main target doing internship at Credit Department was because that Nepal is a
developing country, where there aren’t much productive sector where, despite of these
fact banking markets boosting up like anything from year to year. Banks are the main
source of capital for Real Estate sector so I planned working at credit department would
given me the chance to know about the loan disbursement system and helped me to know
the major real estate clients
Post Expectation.
Anyhow, later I was convinced in a way for deposit marketing and customer service as I
didn’t had other option. With my positive attitude towards my work made to learn many
things even in deposit marketing, which initially I didn’t preferred. Somewhere,
somehow I have heard that an objective without a plan is a wish, so I started to make a
plan about carrying out Deposit Marketing. At the beginning I had targeted individual
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public deposit as plan but later on I realized that I can make my work more enjoyable and
value adding by focusing and targeting corporate clients and deposits, where I could learn
about other organizations and their business ideas, trends. Focusing on Corporate sectors
would also help me to analyze the competitor bank’s trend activities and products along
with interest offering, which was crucial for deposit marketing. I was prepared about the
circumstance that I have to face during my deposit marketing assignment, from
competitor’s bank.
Throughout my internship at customer service and deposit marketing, I have managed to
learn many things personally, academically and professionally. Through customer
service, I was capable of learning customer handling skills. With continuous effort and
keen interest I was also able to I understand how bank channelizes it resources, i.e.
deposits, how deposits are collected and how are they disbursed. During this assignment,
initially phase, I went to my relatives and colleagues convincing them and asking them to
open an account at the bank and deposit particular resource at the bank; I had genuine
experience understanding the human behavior and their concepts. From that very moment
I felt that life is much harder and challenging I know and experienced seen, because
things never goes like we expect as Deposit Marketing was very much difficult task.
My firsthand experience, at PCBL, enlightened me that, about the importance of money
and it actual worth and how people are really concerned about their expense. In other
words I came to know true and harder part of life. But this experience shall never be
wasted as, I have capitalized this experience to make myself bold, tougher, hard working
and stronger and luckily, I had it possible to convert my actual weakness into my
strengths. As per my experience, I have gained various skills and enhance the existing
skills, I developed communication skill, leadership skills, developed presentation skills,
where as I also developed habit of analyzing environmental variable from managerial
aspects. I developed some positive traits such as being punctual, politeness, and
behavioral respect towards customer despite of their stay away attitude.
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At the end of my internship, I am happy about my achievement and my experience and
about the overall operation of Customer Service Department, which isn’t that much easy,
as one says, and one perceives, and from Deposit Marketing I was able to develop the
client base for PCBL branch with 118 clients with total deposit of NRS 1.29 million.
Though I didn’t like to work for marketing department, but with my positive attitude
towards I was able develop clients’ base of around 118 clients. I believe this was one of
the most challenging jobs that I had ever performed and I feel good about this
achievement.
My perception at end was completely changed after the internship experience about
deposit marketing than before, as earlier I almost hate deposit marketing as I didn’t
preferred to perform door to door selling but, as time went on by I started to admire my
given assignment, and now I can say, I enjoy whatever I do for Deposit Marketing
whether I communicate, talk with people, present the product to the people through door
to door marketing and personal selling I enjoying doing so. For this part of my effort and
motivation, I would also like to thank PCBL bank management, as they provided the
official visiting card of PCBL, where my name was written on it. I was highly motivated
and felt good, as that made me feel that I am the official part of the bank, and it was much
easier for me to visit corporate organization.
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5. Skills and Knowledge acquired in internship
Doing Internship at PCBL has provide me the opportunity to gain following skills which
I believe, has added value and benefited me for my future career. The skills acquired
during my internship period can be classified as
Table 11: Skills Acquired at Internship
Skills acquired at Internship
a. Strong work ethicb. Dependable and responsiblec. Adaptabilityd. Gain Self Confidencee. Problem solving Skillsf. Interpersonal skillsg. Networking Skillsh. Presentation skills
I develop strong work ethics from my internship, which is very important for an
employee, which also define their interest in their work along with their skills. I also
learnt to depend on others, as it is very important for a team member to depend on other
team member, to successfully accomplish assign goal. In my earlier stage of internship I
was to extend self dependent on towards my work , and as result I tried to do every task
without coordinating with team members others, but later I realized how wrong I was.
Deliberately I learn to adapt to different environment and culture. Before doing internship
at PCBL, I had prior sales internship at VOITH for TOYOTA, I found the organization
culture different and diverse, but later understood and I learnt to adapt to various working
environment and culture.
I also had opportunity to enhance my Presentation Skills, Interpersonal Skills and
Networking skills. At the end of my internship period I was successful enough to develop
client base of more than hundred clients through above learnt skills.
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Skills and knowledge required in internship
Writing about the skills required for deposit marketing as per my conclusion would be
four skills,
Table 12: Skills required for Deposit Marketing
Skills Required for Deposit Marketing
a. Patience
b. Positive Attitude
c. Interpersonal Skills
d. Presentation skills
e. Consistency.
From my experience for deposit marketing, I believe one should develop the trait of
being patient, because as per my experience when I paid visit to clients they would
entertain us by listening to our presentation and promise to do as per their convenience to
enjoy our services. Here I would like to share experience of mine, once I had followed a
client, nearly about more than eighty days, but I could find any positive sign of response
from that client, despite of visiting more than 10 times. Similarly there were many cases
where clients used to respond after a month. So I believe one should have be patient.
Positive attitude is also considerably highly essential, required for a marketer. One has to
face various demoralizing consequences while paying visit to individual and corporate
clients. I would like to share one of my experiences, where highly demoralized and
downhearted by the clients. I don’t think, it would sound ethical to name the
organization, but there was a state, where I went to an organization with motive of
Deposit marketing. I explained her about my background, my purpose to visit their
organization and requested inquire to the Financial Manager about me and my visit so
that I could have small chitchat. She made me to wait for about two hours and later she
told me that her Manager has said that “My organization isn’t interested in doing
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business or developing any sort of relationship with new bank life yours”. That was such
a bitter and harsh experience, but I didn’t lose that quickly, I believed myself and
constantly kept trying, and finally, I happen to bring good amount of deposit to the bank,.
So from my experience I would say positive attitude is very important thing to have. At
the same, other interpersonal skill and presentation skill is also required; as from my
experience I felt that one should be able to connect the products and service to the client’s
requirement and make a good explanation about the product that is suitable.
Finally, another required skill for a marketer to have is consistency, marketer should be
harvesting equal amount of interest and effort to their work, whatever be the
consequences, as deposit marketing task isn’t that much easy as it seems to be. So I
believe that one should love this work and always put constant effort to be successful in
deposit marketing.
6. Impact of skills and knowledge in future decision making
I believe these skills and knowledge learnt at PCBL will surely help me to shape up my
future career. Being a management student, I learnt skills and I got chance to have close
observation regarding managerial skills from my supervisor that shall help me in taking
rational decision in my life. Although the skills, knowledge and experience that I
currently have is not enough for taking up the sole responsibilities of the bank, I would
require more experience and further technical skills. I personally believe this can be done
by completing my higher studies like: MBA.
However, I am aware of the working environment of a bank. So, I can utilize my
experience that I have gained to enhance my career choice and also learn more to decide
upon what would be the best career path that I can choose. Hence, this has been a
wonderful experience for my academics and my career decisions which will pave a way
for the near future.
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Part TwoSPECIFIC ASSIGNMENT
SECTION I
4. Brief background of Deposit Marketing Assignment.
As specific assignment at PCBL, I performed deposit marketing, where I had to bring
deposit from individual and corporate through marketing. I was given time frame of ten
weeks to perform this task. Through this particular assignment I have learnt many
banking tools and its products and services. Crucially I was also able to understand
client’s requirement along with interpersonal skill, network skills and presentation skills.
Banks and Financial institutions in Nepal
Financial system of Nepal is still in its primary stage of development. Small and fast
growing financial sector comprises of commercial banks and other financial institutions
like development banks, finance companies, cooperatives. The banks in Nepal fall under
two categories of government owned banks and public banks. The government banks are
few as compared to the private banks in Nepal. The public banks are greatly expanding
year after year presently there are twenty six commercial banks including three
government owned banks.
Even though there are only three government banks, these three banks are the largest
banks in all aspects from deposit and credit mobilization to the number of branches in
operation. The financial sectors mentioned below are solely governed by Nepal Rastra
Bank (NRB).
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The following table shows the categories of banks as per the NRB Act.
Table 13: Numbers and Types of Financial in Nepal
S.N. Types of financial institutions Class Number
1 Commercial Banks A 26
2 Development Banks B 58
3 Finance Companies C 88
4 Micro- Credit Development Banks D 12
5 Saving and Credit Cooperatives Not
Classified
16
6 Non Governmental Organizations Not
Classified
46
Total = 246
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As for the statistics of Nepal Rastra Bank Presently there are 26 commercial Banks,
including both government and public limited banks, the statistic below shows their starting
operation date and the Banks Head Office.
Table 14: About Commercial Bank of Nepal
S.N Names of the Banks Operation Date Head office1 Nepal Bank Limited 11/15/1937 Kathmandu2 Rastriya Banijya Bank Limited 1/23/1966 Kathmandu3 Agriculture Development Bank Limited 1/2/1968 Kathmandu4 Nabil Bank Limited 7/16/1984 Kathmandu5 Nepal Investment Bank Limited 2/27/1986 Kathmandu
6Standard Chartered Bank Nepal Limited 1/30/1987 Kathmandu
7 Himalayan Bank limited 1/18/1993 Kathmandu8 Nepal SBI Bank Limited 7/7/1993 Kathmandu9 Nepal Bangladesh Bank Limited 6/5/1993 Kathmandu10 Everest Bank limited 10/18/1994 Kathmandu11 Bank of Kathmandu Limited 3/12/1995 Kathmandu
12Nepal credit and Commerce Bank Limited 10/14/1996 Kathmandu
13Nepal Industrial & Commercial Bank Limited 7/21/1998 Biratnagar
14 Lumbini Bank Limited 7/17/1998 Narayanghat15 Kumari Bank Limited 4/3/2001 Kathmandu16 Laxmi bank Limited 4/3/2002 Birjung17 Siddhartha bank Limited 12/24/2002 Kathmandu18 Machhapuchhre Bank Limited 10/3/2000 Pokhara19 Citizens Bank International Limited 6/21/2007 Kathmandu20 Prime Bank Limited 9/24/2007 Kathmandu21 Sunrise Bank Limited 10/12/2007 Kathmandu22 Bank of Asia Limited 10/12/2007 Kathmandu23 Development Credit Bank Limited 1/23/2001 Kathmandu24 NMB Bank Limited 11/26/1996 Kathmandu
25 Global Bank Limited 1/2/2007 Birjung26 Kist Bank 25/01/2066 Kathmandu
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Deposit Accounts
Deposit account is a current account at a banking institution that allows money to be
deposited and withdrawn by the account holder, with the transactions and resulting
balance being recorded on the bank's books. Some banks charge a fee for this service,
while others may pay the customer interest on the funds deposited.
Deposit at Bank is process where an amount of money placed either at call (redeemable
or withdraw able on demand or for a fixed period.
Marketing
According to Philip Kotler
“Marketing is the process of planning and executing the conception, pricing, distribution,
and promotional of ideas, goods, and services to exchange that satisfy the perceived
needs, wants and objectives of individual and organizations.”
According to Wikipedia
“Marketing is an integrated communications-based process through which individuals
and communities discover that existing and newly-identified needs and wants may be
satisfied by the products and services of others.”
Marketing in Bank
Marketing approach in banking sector had taken significance after 1950 in western
countries and then after 1980 in Turkey. New banking perceptiveness oriented toward
market had influenced banks to create new market. Banks had started to perform
marketing and planning techniques in banking in order to be able to offer their new
services efficiently. Marketing scope in banking sector should be considered under the
service marketing framework. Performed marketing strategy is the case which is
determination of the place of financial institutions on customers’ mind. Bank marketing
does not only include service selling of the bank but also is the function which gets
personality and image for bank on its customers’ mind. On the other hand, financial
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marketing is the function which relates no congenitally, differences and non similar
applications between financial institutions and judgments standards of their customers.
The reasons for marketing scope to have importance in banking and for banks to interest
in marketing subject can be arranged as:
Change in demographic structure: Differentiation of population in the number and
composition affect quality and attribute of customer whom benefits from banking
services.
Intense competition in financial service sector: The competition became intense due to
the growing national banking perceptiveness and recently being none limiting for new
enterprises in the sector. Increase in liberalization of interest rates has intensified the
competition. Bank’s wish for increasing profit: Banks have to increase their profits to
create new markets, to protect and develop their market shares and to survive on the basis
of intense competition and demographic chance levels.
The marketing comprehensions that are performed by banks since 1950 can be shown as
in following five stages:
i. Promotion oriented marketing comprehension
ii. Marketing comprehension based on having close relations for customers
iii. Reformist marketing comprehension
iv. Marketing comprehension that focused on specializing in certain areas
v. Research, planning and control oriented marketing comprehension
The Marketing Mix in Banking Sector
Recently, banks are in a period that they earn money in servicing
beyond selling money. The prestige is get as they offer their services
to the masses. Like other services, banking services are also
intangible. Banking services are about the money in different types
and attributes like lending, depositing and transferring procedures.
These intangible services are shaped in contracts. The structure of
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banking services affects the success of institution in long term. Besides
the basic attributes like speed, security and ease in banking services,
the rights like consultancy for services to be compounded are also
preferred.
a. Price
The price which is an important component of marketing mix is named
differently in the base of transaction exchange that it takes place.
Banks have to estimate the prices of their services offered. By
performing this, they keep their relations with extant customers and
take new ones. The prices in banking have names like interest,
commission and expenses. Price is the sole element of marketing
variables that create earnings, while others cause expenditure.
While marketing mix elements other than price affect sales volume,
price affect both profit and sales volume directly. Banks should be very
careful in determining their prices and price policies. Because mistakes
in pricing cause customers’ shift toward the rivals offering likewise
services. Traditionally, banks use three methods called “cost-plus”,
“transaction volume base” and “challenging leader” in pricing of their
services.
b. Distribution
The complexities of banking services are resulted from different kinds
of them. The most important feature of banking is the persuasion of
customers benefiting from services.
Most banks services are complex in attribute and when this feature
joins the intangibility characteristics, offerings take also mental
intangibility in addition to physical intangibility. On the other hand,
value of service and benefits taken from it mostly depend on
knowledge, capability and participation of customers besides features
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of offerings. This is resulted from the fact that production and
consumption have non separable characteristics in those services.
Most authors argue that those features of banking services make
personal interaction between customer and bank obligatory and the
direct distribution is the sole alternative. Due to this reason, like
preceding applications in recent years, branch offices use traditional
method in distribution of banking services.
c. Promotion
One of the most important elements of marketing mix of services is
promotion which is consist of personal selling, advertising, public
relations, and selling promotional tools.
d. Personal Selling
Due to the characteristics of banking services, personal selling is the
way that most banks prefer in expanding selling and use of them.
Personal selling occurs in two ways. First occurs in a way that customer
and banker perform interaction face to face at branch office. In this
case, whole personnel, bank employees, chief and office manager,
takes part in selling. Second occurs in a way that customer
representatives go to customers’ place. Customer representatives are
specialist in banks’ services to be offered and they shape the
relationship between bank and customer.
e. Advertisement
Banks have too many goals which they want to achieve. Those goals
are for accomplishing the objectives as follows in a way that banks
develop advertising campaigns and use media.
i. Conceive customers to examine all kinds of services that banks
offer
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ii. Increase use of services
iii. Create well fit image about banks and services
iv. Change customers’ attitudes
v. Introduce services of banks
vi. Support personal selling
vii.Emphasize well service
Advertising media and channels that banks prefer are newspaper,
magazine, radio, direct posting and outdoor ads and TV commercials.
In the selection of media, target market should be determined and the
media that reach this target easily and cheaply must be preferred.
Banks should care about following criteria for selection of media.
i. Which media the target market prefer
ii. Characteristics of service
iii. Content of message
iv. Cost
v. Situation of rivals
Ads should be mostly educative, image making and provide the
information as follows:
i. Activities of banks, results, programs, new services
ii. Situation of market, government decisions, future developments
iii. The opportunities offered for industry branches whose development
meets national benefits.
f. Selling promotional tools
Another element of the promotion mixes of banks is improvement of
selling. Mostly used selling improvement tools are layout at selling
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point, rewarding personnel, seminaries, special gifts, premiums,
contests.
Deposit Marketing
Deposit marketing is process of convincing people or organization through effective
communication plan, about the products or services of a financial institution and
influencing them to make deposit their financial resource to particular financial
institution, with believe to provide them both monetary and non monetary benefits, and
developing long term relations.
By Kushal Sundar Shrestha
Deposit marketing is promotional process; through which products and service of bank is
explain to targeted audience and matching the audience financial requirement with the
communicated products and services.
Methods of Deposit Marketing
a. Direct or Personal Marketing,
Marketing method through which, products are sold through involving person to person
contact.
b. Enterprise Marketing,
Enterprise marketing is one of the complex process. It is also knows as Request on
proposal. An institution market their product and service to customer by letting customer
know their product through submitting proposal.
c. Door to Door Marketing,
Door-to-door is a marketing technique in which a marketing officer or marketer walks
from one door of a house to another trying to promote a product or service to the general
public, in order to increase sales or to meet specific objective.
d. Telephone Marketing
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Telephone marketing is a method of direct marketing in which a marketing officer
solicits to prospective customers to know about products or services, over the telephone.
These are the basic method through which deposit marketing can be done, in order to
increase number of customer to bank and raise deposit fund for bank at the same time.
Products and Service Promoted during Deposit marketing
Table 15: Products and Service Promoted during Deposit Marketing
S.NO PARTICULARS MINIMUM
BALANCE (Rs)
RATE OF
INTEREST
BASIS OF
CALCULATION
SAVINGS
SAVING DEPOSITS
1 Public Savings 100.00 4% Monthly Min Balance
2 Normal Savings 1,000.00 4% Monthly Min Balance
3 Privilege Savings Not Required 4.25% Daily Balance
4 Prime Savings 50,000.00 4.50% Daily Balance
5 Prime Gold Savings 100,000.00 6% Daily Balance
6 Call Deposit Savings Negotiable 3% - 7% Daily Balance
FIXED DEPOSITS
1 Up to 1 Year Negotiable 6.75% Daily Balance
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2 1 Year - 2 Year Negotiable 7.00% Daily Balance
3 2 Years and Above Negotiable 7.25% Daily Balance
CURRENT ACCOUNT
1. Current Account 5000.00 *1
CALL ACCOUNT
1. Call Account 1,00,000.00 4% - 8% Daily Balance
STAFF SALARY ACCOUNT
1. Staff Salary Saving *2 4% Monthly Min Balance
Condition applied
*1 Generally interest isn’t paid on current account*2 if an organization open current account, PCBL provides Complementary staff salary account where at zero balance
5. Objectives of Deposit Marketing
Deposit marketing at PCBL is basically, organized procedure of making intern
understand about the concept of deposit and developing selling and communicating skills
along with developing relationship with clients.
Objective of Deposit marketing are
a. To increase base of public deposit and corporate deposit
b. To promote the financial products services of the bank.
c. To develop brand equity of the bank
d. To convert potential clients into actual clients and develop long-term relationship
6. Scope of the Deposit Marketing.
Generally the scope of this study is to identify the potential customer for the bank and
converting the potential clients into actual clients through persuade clients the
comparative advantage of PCBL products and service, compared to competitor’s
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products and services. This assignment is limited in terms geographical boundary,
customers and the objective of the assignment.
As PCBL is new, deposit are its raw material for its growth and which helps them to be
more competitive and advance, as we know that if banks are able to utilize their raw
material which is deposit, they could be more productive and competitive in market in
terms of their product and other financial services such as loan. It is quite significant to
clearly segment the market, identify the potential customers and promotion of financial
products and services is also equally important.
SECTION II
2. Review of related Literature
Every Financial Institution has basically three major sources of cash inflow or source of
funds for their effective functioning, whether that is commercial bank, finance company,
Multipurpose cooperative or Micro Finance. The major source of funds can be classified
as,
a. Deposit
b. Initial Public Offering. And
c. Interbank Lending
Among all these source of funds, Deposit are the main and the vital source of funds.
DEPOSIT
According to Australian State Bank Act 1994 - SECT 4
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Deposit means a sum of money paid to the Bank on terms:
(a) under which the Bank is obliged to repay the money, with or without interest or a
premium, and either on demand or at a time or in circumstances agreed by or on behalf of
the person making the payment and the Bank,
(b) Which are not referable to the provision of property or services or the giving of
security?
“Deposits are the claim of customers over the bank on their account”
By Muhammad Yasir
Basically Deposit is foundation upon which banks thrive and grow. They are unique item
on a bank’s balance sheet that distinguishes it from other types of business firms. The
ability of a bank’s management and staff to attract checking and saving account from
business and consumers is an important measure of the bank’s acceptance by the public.
“Deposits are the raw material for bank loans and thus represents the ultimate source
of banks profit and growth”.
By Peter S. Rose
Deposit collection is the main and crucial source of funds, because deposits are provides
most of the raw material from bank loan, which is the ultimate source of bank profits
growth. When a bank collects bank deposits from the mass, cash reserve is generated, and
excess reserve could be used for granting loan.
As Peter S. Rose has explained in his book Commercial Bank Management
Deposit can also be used to analyze the bank’s effectiveness as bank should be able to
raise deposit at lower cost and capitalize the deposit to produce profit by giving loans.
According to Peter S. Rose, every bank has to deal with to Manage Deposits are:
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Key Issues that bank have to deal with the deposit are
i. Where can the bank raise funds at the lowest possible costs?
ii. How can management ensure that the bank always has enough deposits to
support the desired volume of loans and other service?
In order to efficient service to the mass client, commercial bank has to have strong
deposit reserve, in other words banks needs to have strong cash holdings that support
their every financial service. Hence, Banks collects deposit from the people, through
deposit account and banks present their innovative ideas to develop deposit accounts
schemes to suit various need of their customers.
Types of Deposit offered by Banks
According to www.wikipedia.com, there are basically four types of deposit that banks
caters to increase their deposit reserve. There are basically three forms of deposit, but
banks present themselves, innovative ideas to attract to more customers, that satisfy
different customer and their different needs.
a. Transactional Deposit
A transactional Deposit is targeted to an organization that requires frequent access to
their deposited funds on demand, through a variety of different channels. Transactional
deposit is targeted to organizations that deposit funds and withdraws fund frequently.
Transactional Deposit are also knows as Current Deposit, Demand Deposit or checking
deposit.
Transactional accounts are meant neither for the purpose of earning interest nor for the
purpose of savings, but for convenience of the business or personal client. A customer
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can deposit or withdraw any amount of money any number of times, subject to
availability of funds.
b. Saving Deposit
Saving deposit based on the principle that customer for deposit funds and doesn’t
withdraw their funds frequently, for which financial institution pays interest. Saving
accounts are targeted to low income people and to those not needing to draw money
frequently. As a condition the minimum amount to deposited and maintained is also pres-
specified, which is differs bank to bank. Banks provides interest in saving accounts and
banks are free to fix the interest rate themselves.
c. Time Deposit
Is money deposited at a banking institution that cannot be withdrawn for a certain "term"
or period of time. When the term is over it can be withdrawn or it can be held for another
term. The longer the term or time, the better would be the yield or interest on the money.
A certificate of deposit is a time-deposit product. This is also known as Fixed Deposit.
In compared to other accounts, there rate of return is a bit higher, generally, in
comparison to other types deposit.
Though deposited amount cannot be access or withdrawn for stated time period until,
maturity, however depositor can enjoy the loan against fixed deposit as required.
Interest Rates Offered on Different Types of Accounts
People are always driven by the interest rate, whenever they think of depositing their
funds. Consequently banks offer different rates of interest in different deposits to
magnetize their customers. The rate of interest on deposit depends on the following
factors.
a. Maturity of Deposit
Every Commercial Bank’s interest rate is always directly influenced by time span of
maturity of deposit. Longer the maturity period of deposit, higher will be the interest rate.
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This is mainly because of time value of money and the frequent upward slope of the yield
curve. Basically for saving deposit bank provides minimum interest because, it isn’t
withdrawn frequently, but can withdrawn at any point of time. Likewise bank doesn’t
provide any interest to current deposit because deposits are withdrawn frequently.
However at time deposit or fixed deposit, bank provides huge interest as the deposits
can’t be withdrawn at all until the maturity time.
b. Amount of Deposit
The amount of deposit also determines the interest rate. Higher the minimum balance for
deposit, higher would be the interest rate. Principally the minimum balance requirements
are differed as per banks their policy, to magnetize customer. Generally, to get higher
deposit, this information is mostly shared with customer before they open deposit
account, because institution is always looking for higher deposits.
c. Size and Perceived Risk and Exposure
The size and perceived risk exposure of the bank may play a role in determining interest
rate. It is likely to be true that Standard Charted Bank of Nepal provides lower interest
rate for saving deposit compared to newly established banks, because of greater size and
strengths of Standard Charted Bank, whereas, new bank provides greater interest rate to
the customer for saving account.
d. Marketing Philosophy and Goals
Marketing Philosophy and goals of the banks also influence interest rate. In order to
magnetize and raise deposit bank, come up with various innovative ideas and schemes
that motivate customer to make deposit. With the objective to grab the customer of
competitors, banks provide higher interest rates. At the same time, old and established
bank is providing lower interest, to discourage customer because they have good clients
and they don’t look further to increase clients whom they cannot serve. We can take
Nabil Bank and Standard Chartered Bank as an example.
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e. Liquidity Position
When banks have high liquidity and low demand for loans, which mean lower investment
opportunity, they offer low interest rates to discourage deposits vice versa. Looking at
present scenario, due to Initial Public Offering of various new commercial banks, there is
liquidity crunch, in the market then in order to raise banks base of deposit, all the bank
are coming up with revised interest rate. For example, Machhapuchhre Bank Ltd is
providing around 8% for time deposit or fixed deposit.
The Structure of interest rate offered by the commercial banks in Nepal is as follows
Nepal Rastra Bank
Bank & Financial Institution Regulation Department
Statistics Division
Interest Rate Structure of Commercial Banks (%)
Table 16: Interest Rate Structure of Commercial Banks
Type of DepositsPercent per Month
Mid March 2009 Mid April 2009
Saving DepositsTime Deposit 1 Months 3 Months 6 Months 1 Year 2 Year and Above
2.00 – 6.50 1.50 – 5.251.50 – 5.501.75 – 5.752.50 – 7.252.75 – 7.75
2.00 – 6.50
1.50 – 5.251.50 – 5.751.75 – 6.252.50 – 7.502.75 – 8.00
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Source:
a. http://bfr.nrb.org.np/bfrstatistics.php?
tp=interest_rate_structure&&vw=1000
b. http://www.nrb.org.np
Looking after the changed rate in above table, we can see that percentage of interest has
been increase within period of a month because of liquidity crisis, banks are offering
higher deposit rate to raise deposit.
Composition of Bank Deposit
Various types of deposits held by financial institution at bank at a time period are
influenced by the public demand. Likewise other factors such as bank fund raising
policies, including the services fees charged and the interest offered on various deposit
schemes. At the same the marketing advertisement and promotional activities of banks
also influence customer to make deposit on respective banks.
Three different deposit offered by the can be show in the following table
Table 17: Composition of Deposit
Type of Deposit 2007 2008 % Increased
Demand Deposits 1017750.9 1055610.9 3.719967
Saving Deposits 3851401.7 4779618.9 24.10076
Fixed Deposits 1859868.8 2161887.6 16.23872
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Call Deposits 700780.2 1097998.2 56.68225
Other Deposits 70913.2 100414.0 41.60128
Total Deposit 7500714.8 9195529.6 22.59538
In the above figure, composition of deposits has been shown in the table above. By
looking from the above table we can figure out that deposit collection of bank is
increasing course.
Demand deposits holds around 11.47 % of the total deposit, where as saving deposit
consist of around 52% and fixed deposit consist 23.5 % of total deposit. Likewise call
deposits consist 12% and other deposit consist of 1.1% of the total deposit. From the
above table we can conclude that within short period of year the total deposit has been
increased by 22.59%. The highest proportion of fixed and saving deposits is due to the
higher interest rate being offered in these deposits.
Mobilization of Deposit
In simple terms Deposit is the claim of customer over the bank on their account. When
bank collects deposit bank has to pay certain interest to the customer for putting his
resources over the bank. Hence in order to pay interest of the depositors bank mobilize
the funds deposited by the depositors. Basically there are two way through which bank
mobilize the available funds
a. Making Finances/ Lending’s
Principally, banks mobilize the deposit through making finance to loan, because of
positive return of loan, which can be substantial source of return. While mobilizing
deposit over lending bank helps provide opportunity to productive sector to have working
capital create working capital for business as bank never invest their deposit over toward
unproductive sector as they are always afraid about failure of a sector. This helps
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gradually strengthens the particular sector and finally overall national economy is
benefited.
b. Investing in various financial markets
Here the investment functions are usually performed by Treasury Office of the entire
bank. Mostly Treasury invests deposit for,
i. Ensuring optimum utilization of available resources.
ii. Rising additional resources required for meeting credit demands.
iii. Managing market and liquidity risks
The available investment markets for the bank would be money market, capital market
and foreign exchange market. By investing on bank tries to get optimum profit, that must
be great than the cost of acquire deposit, so that they can grant loan to the market at the
same time.
SECTION III
2. Conceptual framework
The objective of deposit marketing is to increase develop brand equity, to increase the
client base, and increase the funds which PCBL, would be efficiently using for its growth
and further development.
Basically, there are various approaches that could have been done for deposit marketing.
The best possible approach would be
a. Personal Marketing
I used this approach for deposit marketing where, I promoted the banks products and
service to public and corporate organization, staying at CSD in those cases, where
potential clients visited banks by themselves to understand the current products and
services and benefits. At the very moment, I explained and presented them each product
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and their benefits of plus at the end I used to ask them about their requirement, and then I
tried matching the products with their requirement. Finally provide them my offer my
opinion regarding the best possible match.
For example, If an ABC organization wants to deposit huge funds and want to have
benefit of daily interest. Initially, my question to the client would be about the how much
funds would they be depositing, because in this case, for an organization, banks cannot
provide saving account, until and unless they are non profit making organization. For
Profit making organization, banks can provide, current account, but that current account
won’t be appropriate because they are asking for daily interest. In my opinion regarding
the best possible match would be Call account or Call option, because bank can provide
interest on daily basis, if an organization promises to maintain deposit balance of huge
amount.
b. Enterprises Marketing
This approach is a bit complex for marketing, where one needs to look through the
market and identify and then select the potential client plus search for the concerned
person. Then after a formal proposal is made in the name of the organization explaining,
about the possible products that would be provide benefit to them. This approach is a
kind of exploratory approach where traveling should be made.
c. Door to Door Marketing
Another significant approach, for deposit marketing used for deposit marketing was Door
to Door marketing. About 60% of my clients were the outcome of door to door
marketing. For public deposit, I initially visited doors of my relative, and then my friends
from which I was successful to develop 30 clients. For Corporate marketing, I had to
travel within New Baneshwor, Min Bhawan, Bijulibazar and Anamnagar and pay visit to
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potential organization, by planning my route. From door to door marketing I learnt most
of the things; it was one of the most precious experiences of my life.
d. Tele Marketing
Tele marketing approach was basically used for following up the previously visited
clients. From Tele marketing, I would understand their inquisitives for PCBL products
and services.
These four approaches were basically carried out while performing Deposit Marketing
for PCBL, New Baneshwor Branch.
SECTION IV
2. The Methodology and Procedures of Deposit Marketing
At the beginning my mind was clean regarding starting deposit marketing so I sat down
and started to think how to do it and from where should I starting it. For the procedure, I
used to take a look around the New Baneshwor market for corporate clients and note
down the potential corporate clients. Then I after divided the organization on the basis of
their nature.
The decided the organization on the following basis
a. Financial Institution
b. Education Consultancy
c. Insurance Company
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d. Advertisement Company
e. Pathology labs and Clinique
f. Trading company
g. Tours and Travels
h. Employment Overseas
i. Media Houses
j. Investment Companies
k. Computer services
l. Automobiles Dealers.
m. School and Colleges
After dividing the potential organization, I started to analyze the available product that
can be offered to those organizations.
There various relevant products were
a. Current Account
b. Staff Salary Account
c. Fixed Deposit
d. Call Account
e. Swift Transfer / TT
These were the basic products which would be relevant to the corporate clients. For
Financial Institution such as Saving and Co operative organization, Call account was
appropriate, because as PCBL was providing interest to these accounts from 4% to 8% on
daily balance, which was very appealing for them. While going for call account, we
visited more thirty five financial institutions. As in term of Insurance companies, I
presented Fixed Deposit Account with a better interest rate, more than published rate by
taking authority and having short discussion with branch manager. One of the prime
potential clients was Shikhar Insurance; where I talked with Mr. Binesh Maskey for
(Fixed Deposit) FD for NPR 1 crores, but later Shikhar Insurance happen to deposit Rs
10 lakhs for period of 16 months.
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For education consultancy, I planned SWIFT transfer and Current account with benefit of
Staff Salary account as the possible product. Though our bank had SWIFT service, PCBL
New Baneshwor didn’t have clients for SWIFT transfer, so in other words, the SWIFT
service wasn’t in use. I visited most of the education consultancies situated at New
Baneshwor areas and likewise, as an outcome I along with another intern, was successful
in finding client Mr. Dilip Shrestha of International Multi Trade, who used SWIFT
transfer service from the branch for the first time. Hence I can say that I was able to bring
the first client for swift transfer, who transferred around more than 50000 Euros to
Cyprus. This was one of my best achievements, during my deposit marketing experience.
Similarly, I planned to target business house, pathology labs and Clinique, media house,
school and colleges, automobile dealers, and tours and travel with Current Account with
Staff Salary account as complementary.
The procedure for deposit marketing, explained about can be made in following points
Table 18: Procedure of Deposit Marketing
Procedure of Deposit Marketing
1. Diving the Market into Segment
2. Identify the Available Clients in the Segments
3. Understanding the Nature of Business
4. Selecting the potential clients
5. Understanding their basic Financial Service
requirements
6. Determining the useful product for the Clients on
the basis of their requirements
7. Explaining the benefits and Comparative advantage
8. Converting into actual clients / Taking Feed back
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These are the procedure regarding deposit marketing. For deposit marketing I generally
used four approach, direct marketing, door to door marketing, enterprise marketing and
telephone marketing. In terms of door to door marketing I used to visit around more than
ten organizations on average. Before beginning door to door marketing I used to travel
around the market and understand it geography and then divide the market into Segments
as per convince. Then after I used to identify the about all the positioned clients and then
try to understand their business.
After identify, I used to classify the clients on the basis of their goodwill, because there
are clients in the market whom can only be serve by the high profile Banks only, so I
tried to eliminate those organization from my list. Clients who couldn’t be entertained by
PCBL would be classified on the basis of their goodwill, organization structure and
general discussion with relationship manager. For example, DHL Express. Though DHL
express was within our vicinity, we knew that those companies where Multi National
Corporations (MNC) whom our bank couldn’t entertain financial services in terms of
cost. These are big companies who require Over Draft (OD) without collateral at lower
cost. Since PCBL is new commercial bank, it cannot provide OD facility to its clients
without collateral and the cost of OD at PCBL because, PCBL is new commercial bank
as it hasn’t able to cater its service in larger quantity like other high profile banks such as
Everest Bank, Standard Charted Bank.
Then after selecting the potential clients, I would go for door to door marketing, through
general inquiry with financial manager, I used to understand their financial requirement
and with which bank they are working with. After identifying their requirement, I used to
offer and then present them our service with comparative advantage in general, basically
explaining what other banks are offering. Study about the competitors, within the vicinity
is made before approaching to the customer. When I finish my presentation, I would ask
for their response, generally in big house organization, they would take time to discuss in
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their board meeting. Later after some couple of days I use to take feedback either from
phone calls or even from visiting their office once again. Majority of time I used to take
feedback from visiting the office.
This is the general procedure, how I followed during my Deposit marketing at PCBL, in
order to meet the targeted objective of my internship.
SECTION V
2. Observation of Deposit Marketing.
My internship at PCBL, I one of the good real life experience that I ever had, which is
very important to management student like me. Working out for deposit marketing as
specific assignment, helped me to analyze my skills knowledge and my capabilities. I
generally use personal selling, door to door marketing, enterprises marketing and
telephone marketing for deposit marketing.
In order to make my observation more systematic and scientific, I would divide my
observation as below,
Table 19: Observation in Deposit Marketing
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Observation in relation to
Deposit Marketing
a. Observation of PCBL Environment
b. Observation of Local Banking Culture
c. Observation of Competitors
d. Observation of Clients
e. Observation of Clients Needs.
a. Observation of PCBL environment
Observation of PCBL environment can be divided into external environment and internal
environment. I worked in New Baneshwor Branch, and during ten weeks of internship, I
was able to observe both internal and external environment. In terms of external
environment, as 21st bank of the economy, it has to face many challenges and
competition from various deep rooted strong competitors of New Baneshwor. Equally
bank is more open to potential rising market, as the local transactions of Baneshwor is
increasing and bring more opportunities within it.
Internal Environment about the branch, I would say the management is successful to
adapt efficient human resource management at low cost strategy. The New Baneshwor
branch human resources consist of ten full time employees from Branch Manager to
General assistant. I have observed good synergy and bonding between the employees,
that is essential for team work for providing outstanding output.
b. Observation of Local Banking Culture
New Baneshwor is rising market of Kathmandu, where the transaction of economy is
increasing as the market size is increasing, with innovation business ideas compared to
past. Talking about the banking culture, rather than bank people are more attracted
towards financial institution such as Saving and Cooperative and Finance Companies,
because of their Door to Door service (for collecting financial resources from customers
which Commercial Bank cannot provide) and the higher interest rate for deposit. As the
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Nature of local market they are more inclined towards C class and D class financial
institution.
c. Observation of Competitors
Since New Baneshwor market potential and capacity is increasing, more and more banks
are coming up with innovative ideas to increase gain market share. About the
competitors, the strongest competitor would be Everest Bank, Standard Charted Bank. As
from my marketing observation and interaction with clients, Everest Bank has the highest
base of customer portfolio and was able to develop good relationship. Likewise, Nabil
Bank, Nepal Investment Bank and Himalayan Bank are in process to build their branch in
New Baneshwor.
d. Observation of Nature of Clients
During my specific assignment, I came to know about the nature of clients and their
business with close eye view. I visited and dealt with Financial Institution, Education
Consultancy, Insurance Company, Advertisement Agencies, Pathology labs and Clinique,
Trading company, Tours and Travels, Employment Overseas, Media Houses, Investment
Companies, Computer services, Automobiles Dealers, School and Colleges. The New
Market was much more diverse in term of nature of business within the market.
e. Observation of Clients Needs.
Performing marketing helped me to analyze and understand the customer perspective
towards understanding their needs, regarding banks financial services and products. As
from my experience I have divided my clients as Individual clients and corporate clients.
Both of these clients have different needs, but few aspect of requirement was similar.
For Individual clients, interest offered on deposits was the important factor along with
other services such as and ATM/ Debit Card. From my experience, I was successful bring
individual clients, because of ATM/ Debit cards as they were highly attracted towards
ATM/ Debit card.
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For Corporate clients, the important factors would be Evening Counter Service, Interest
Offered, Minimum Balance and Personalized Service. Major of Financial Institution,
were seeking from Late Evening counter and Personalized service. Similarly, Minimum
Balance requirement also helped us to develop new relationship with new clients. As for
the current account for established banks the minimum requirement for a current account
is around Rs. 20000 in average, where as PCBL current accounts minimum balance
requirement is Rs.5000, where we explained the clients that Rs.15000 can be added to
their working capital, enhancing their business efficiency.
SECTION IV
3. Conclusions of Deposit Marketing
Prior to executing deposit marketing I have planned conceptual framework, gone through
some literatures and used methodology. My methodology I basically based on need
sensitivity analysis of the targeted customer. Around 80% of Deposit marketing was
based on the Planning and remaining 20% my Deposit marketing was based on
experiment basis.
For developing methodology, I targeted clients and their nature, type and size and
considerably divided my products and service that PCBL can offer. Through analyzing
the needs of the clients in general, I made a systematic approach of serving different
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financial service and products to different customer as per their requirement, that can be
successful in the deposit marketing approach and as outcome I was capable enough to
achieve targeted objective. By the end of my internship, I was able to develop client base
of 118 accounts and deposit base of 1.29 million, from both individual client and
corporate clients by offering, different saving account, Current account (CA), Staff Salary
accounts (SSA), Call Account (CC) and Swift Transfer.
For example, if an organization is Educational Consultancy, I would have basically three
financial products and service to offer that would be Current Account, Staff Salary
Account and Swift Transfer as other products such as Call Account, Prime Gold Saving
wouldn’t be appropriate to them. My Planning of methodology was based on Need
Sensitive analysis because I believed to work for deposit marketing with concept and
approach of “ONE SHOT ONE HIT” rather consequently trying “HIT AND TRIAL”
approach and method. As I couldn’t afford to follow hit and trial approach because, it
would cost considerable time, effort and resources which are always finite and limited.
Hence I carried out Need Sensitive Analysis for Deposit Marketing task, which turned
out to be successful.
4. Recommendations of Deposit Marketing
Being 21st commercial bank of Nepal, PCBL has to face cut throat competition in the
market. Due to higher density of available commercial bank in the market, each
commercial banks are fighting with each other to better prove own self. Competition has
risen in that level where every bank should carefully plan their strategies and activities.
Likewise PCBL management is using pause/proceed stability strategy, to survive in this
intense market, which is safer approach for the banks safety and regulations.
This approach might be better in the current scenario, but if we think about the future
scenario, then I would say PCBL, is losing the race in terms growth, opportunities and
brand equity. Marketing activities of the PCBL is considerably low compared to other
new commercial banks. Similarly advertisement promotion of the banks should increase
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along with effective promotional campaign in the market. Bank should be highly
concerned for developing brand equity in the market and maintaining long term
relationships, with their clients. PCBL as new commercial should come up with more
innovation products and schemes with better offers and benefits which can attract more
customers and that would be medium for the bank to develop long term relationship with
its potential customer.
PCBL management wishes to improve its deposit base, as strong deposit base is highly
required for new commercial bank. This can be achieved by focusing more on potential
depositors need and developing products relative to them. At the same time PCBL,
should focus on promoting new kinds of innovative products, targeted for potential
depositors.
REFLECTIONS
Conclusion of Internship
An internship is an educational plan which integrates classroom knowledge and practical
work experience in industrial, business, or government work situations. It allows
students to have opportunity to imply academic theories and principles to action, to test
out career interests and to develop skills and abilities through carefully planned and
supervised programs related to the career of their choice.
Through my internship experience at PCBL, I was successful enough to achieve my
internship objective that was targeted and planned. I earlier had planned for Credit
Department at Head Office at New Road, but I had to work at the New Baneshwor
99
Branch, where I got more exposure and more experience, than I would have received in
Head Office, as from my experience I came to know that branch are generally more open
and it posses high opportunity for intern to learn banking function than in Head office.
Ten weeks later I finished my internship working under Customer Service Department
and Deposit Marketing, and I must compliment as a wonderful experience.
My objective was to get a deposit base of more than Rs. 10 million or Rs. 1 crore,
similarly to have clients base of more than 100 clients. By the end of my internship I was
successful enough to bring total deposit of Rs 12.9 million (Rs 1.29 crore) and clients
base of 118 clients, which is one of my greatest achievement so far. Likewise, I along
with another intern was successful to bring first clients to initiate first SWIFT transfer
from the bank and was even successful enough to bring first client for Staff Salary Saving
account.
During my internship opportunity I was able to understand the corporate work culture,
environment through managerial perspective, being able to cooperate and comprehend
the true concept of working with people in a team. I also came to understand where I
really stand in terms of my knowledge, analytical skills, communication skills, ability and
my intern strength to accept and succeed challenges and I also learnt more about
responsibility. Regarding Deposit marketing I was successful enough to utilized my
concepts of subject matter learnt at college about marketing, sales manages and where as
I was able to utilize my ideas of financial management. I also was able to visualize the
current scenario of Nepalese financial system. I deliberately learned the majority of
operation of Customer Service Department including various task from attending
customers to managing their information system. I came across my strength and
weakness and fortunately I had opportunity to turn my weakness in to strength. I
somewhat discover my internal strength and further capitalize on those strength to
develop relationship with the clients.
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At PCBL, I found everyone to be honest, polite along with good work ethics, and much
more I was able to see the practical implication of Organizational behavior that I learnt
within the closed four walls of classroom. All my knowledge that I have learnt at class of
KCM turned out to be managerial tools and now I have learned to use these tools
efficiently and effectively as per requirement.
I believe my experience at PCBL will sure guide me in my future career. I am grateful
and proud to have internship at good organization like Prime Commercial Bank Limited.
BIBLIOGRAPHY
References
Peter S. Ross (1999), Commercial Bank Management, Fourth Edition,
Finance Series, Mc-Graw Hill, International Edition, Library of Congress
Cataloging-in-Publication Data.
Stephen A Ross (2003) Fundamentals of Corporate Finance, Tata McGraw-
Hill Edition, Sixth Edition, Tata McGraw- Hill Publishing Company
Limited, New Delhi.
101
Philip Kotler and Gary Armstrong (2006) Principles of Marketing, Eleventh
Edition, Pearson Education, Sanat Publications Limited.
NRB (2008), Banks and Financial Institution statistics, Mid April 2009
Annual Reports of Various Banks and Financial Institutions
Brochure. Prime Commercial Bank
Nepal Rastra Bank, Banking and Financial Statistics Department Commercial Banking Statistics, Different Issues, Kathmandu, Nepal.
Appendix I
Personal Relation Developed During Deposit Marketing
S.
N
Name of Person Organization Product
Proposed
1. Binesh Maskey Shikhar Insurance FD
2. Narayan Prajuli Prudential Oversea P. Ltd CA, SSA
3. Suraj Koirala Shuba Laxmi Marketing CA
4. Arjun Karki Mero Mobile CA,CC,OD,SSA
5. Suresh Khakurel Sankalpa Prof. Academy CA,SSA
6. Sudip Budhathoki Naya Patrika, Einstein Edu, CA,SSA,OD
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Conslt
7. Bibek Adhikari Alfa Beta Edu Consultancy CA,SSA,CC
8. Kiran Shrestha Casion Everest CA,CC,SSA
9. Maneesh K. Singh Broad link Networks and Com. CA,SSA
10. Dipendra Khatiwada Mercantile Commodity Exchange CC,CA,SSA
11. Suresh Sing Smart Snack and Food Pvt Ltd. CA.SSA,CC
12. Ramesh Raut Water Communications CA,SSA
13. Nasa Institute Ujwal Siwakoti CA,SSA,SWIFT
14. Cambridge Institute Gopal Bhandari CA, SSA,OD
15. G.P Aryal Everest Hotel OD,CA,CC,SSA
16. Ashok Siwakoti National Cooperative Bank Ltd CC
17. Rabin Dahal Nobel Academy CA,SSA,CC,OD
18. Rajesh Shrestha Deep Laxmi ( Hyundai Auth Dealer) CA,SSA,AL
19. Suraj Adhikari Gurkha Re employment P. Ltd CA, SSA, CC
20. Joseph Sebastian Boss Magazine CA,SSA
21. Min Prasad Lamsal Thopa Thopa Saving and Co. Ltd CC
22. Nilima Shahi Deep Jyoti Saving and Co. Ltd CC,FD
23. Salina Poudel Safalta Int’l Edu Consultancy SWIFT,CA,SSA
24. Raju Shrestha Flying Institute CA,SSA, PG
25. Dr. Dilip Kumar Jha Baneshwor Dental Care Center PG
26. Deepak Shah Radio Audio Pvt. Ltd. CA, SSA
27. Surya Thapa Beijing Garden P Ltd CA, SSA
28. Hitler Bishet Hamro Sanchiti Multi- Coop Ltd. CC
29. Madhusudhan Jangam TAFE Vocal Institute CA,SSA
30. Prabal Saakha SAU Automobile CA,SSA,OD,LC
31. Gyanendra Basnet ACME Holiday Tours Pvt. Ltd PS,CA,SSA
32. Kumari Rana Galactic Edu Service Pvt. Ltd CA,SSA
33. Pramila Singh EPS School CA,SSA
34. Ishwor Adhikari Patshala Academy Pvt Ltd CA,SSA
35. Ishwor Adhikari Columbus College Pvt. Ltd CA,SSA
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36. Sanu Mal Lamsal Sona Saving and Coop Pvt. Ltd CC
37. Ram Gautam Gautamshress Multi Coop Pvt. Ltd CC
38. Sunil Kharel Aphanta Saving and Coop Pvt Ltd. CC
39. Bijaya Dhakal Kopila Saving and Coop Pvt. Ltd CC
40. Nabaraj Bajgain Buddha Academic Pvt Ltd CA,SSA, OD
41. Dilip Shrestha International Multi-Trade. Pvt Ltd. CA,SSA,SWIFT
42. Komal Upadhaya Group 4 Falck Nepal P Ltd. PG,PS
43. Dikshyant Bhatta Budhanilkantha Intl. Academy CA,SSA
44. Rajan Khadka (Nd’s )Baneshwor Café P. Ltd CA,SSA
45. Youba Bhatta SAGIP Consultancy P. Ltd CA,SSA, SWIFT
46. Manish Ghimire Motif Edu Consultancy P. Ltd CA,SSA,SWIFT
47. Dev Anamani Anamani Edu Consultancy P. Ltd CA,SSA,SWIFT
48. Raju K.C Swayam Intl P. Ltd CA,SSA,OD
49. Nikhil Agrawal (NIIT) Info Edge P. Ltd CA,SSA, OD
50. Bhisma Bhandari Nepal Korea Dongsan P. Ltd CA,SSA
During my internship, I had an opportunity to develop personal relationship, with more
than five hundred clients both individual and corporate clients from New Baneshwor,
Bijulibazar, Min Bhawan, Shanti Nagar and Anamnagar. Above table shows the prime
customer, with whom I was able to develop personal relationship,
Appendix II
Internship Goals
I Kushal Sundar Shrestha currently pursuing my Bachelor’s of Business Administration
(B.B.A) from Kathmandu College of Management affiliated to Kathmandu University
has a vision of becoming a nation’s top businessman of the future, having conglomerate
business
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With respect to future mission and vision, I thought of joining KCM to have the best
possible course of management with the expectation to have wide exposure to the
Nepalese corporate world that would reflects for proper entrepreneurial development.
The college also holds various events which helps a student having vision and mission to
develop their leadership skills as well as volunteer in different seminars so that the
students can be updated with the recent happenings of the world and provides various
internship opportunities so that the student can develop a proper mixture of the
theoretical knowledge as well as practical application in the real environment. The
internship will help me to get accustomed to the working culture of a corporation which
will be of great contribution in my future. Moreover this internship experience would
grant be a wonderful platform to get exposure of corporate culture, which would help me
to learn the effective functioning real life Corporation.
My academic goal of my life is to complete my Master’s of Business Administration
(M.B.A) from a reputed university from Asia and complete my Bachelors of Business
Administration from Kathmandu College of management with good CGPA of 3.5. Along
with my studies, I had managed by family business and had contributed my 40% time to
the business and remaining part to my studies, so that I could imply the effective
techniques learnt from the closed four walls of college to real world business and has
helped me to comprehend and manage the business from finance to human resources with
the help of managerial techniques learnt from the class. My real business experience has
made me to be more specific about my future vision.
From a Business aspects, banks has been a crucial external part of an organization, as i
learnt from my business experience, that an Organization cannot thrive, until and unless
its financed as supported by the bank. With the motive to learn the banking culture and
their organization, I planned to do my internship at one of the commercial bank of Nepal.
As part of my internship, I am positioned in Customer Service Departments at Prime
Commercial Bank Limited New Baneshwor branch. Even though I had experience of
dealing with customer in my organization from sales manager level, I got more
opportunity to interact with the customers and understand their behavior from bird eye
view. I had good opportunity to handle customer, their queries, dissatisfaction and
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receive insight about the product and services about other banks and their interest rates
which is of great aid to competitive analysis of banks in Nepal, which I would be
analyzing in my internship report. From my business experience I believed that for a
business venture to be successful, one needs to be close to its customer. My perception
was made more clear when I had further work experience at the customer service
department at the bank, where management always believe that the success of any
organization lies in providing maximum satisfaction to the customer and maintaining
long term relationship. The internship program helps a lot in achieving my targeted goals.
During this internship I received exposure opportunity, where I got to imply practical
approach to the theoretical management skills learnt in the classes and orientation to the
real working scenario, realizing the work pressure and the team commitment to complete
the task allotted within the prescribed time limit. The work allotted can’t be
procrastinated and have to completed within the prescribed time else it can lead to
harmful results and ultimately lead to loss of jobs. Being an under graduate I get to be
accustomed to the corporate working conditions which can further illustrated by an
experience during the internship period.
During my 23year of life experience I have came across various obstacle and hindrance,
but I am happy that these tough experience made me bold and tougher both mentally and
physically. I finished my school leaving certificate (SLC) with First Division from
Dipendra Police Higher Secondary Boarding School, Sanga Kavre, where I spent about
ten years of boarding life. Likewise about my Higher Education, I finished my Higher
Schooling from United Academy, Kumaripati, Lalitpur with First Division. In order to
purse my future goal, vision and mission, I joined Kathmandu College of Management
for my BBA. I believe this was one of my wisest decisions that I have ever made in terms
of pursing my future dream, of becoming a prominent Businessman. From KCM, I had
various opportunities to develop entrepreneur, manager and leadership skills. I had taken
part in Annual General Meeting (AGM) of Development and Credit Bank Limited
(DCBL) along with AGM of Management Association of Nepal (MAN). Similarly I got
wonderful opportunity to be Vice President of Junior Achievers forum, and other many
activities. Likewise in terms of Entrepreneurship, I got terrific opportunity to run college
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canteen as project assignment, for a semester, along with my some of my classmate,
where I was assigned as Chief Executive Officer (CEO). This opportunity helped me to
demonstrate and develop entrepreneur and leadership capabilities. Under this project, we
had taken loan of Rs 40000 from Student Council, where we paid Rs. 10000 on the first
month of operation.
In my life I am most grateful to the god for almighty first by giving me courage to all the
hindrances of my life, my parents who have always been an inspirations for me and
guided my path when I was in a state of dilemma and lastly to my college Kathmandu
College of Management by providing various opportunities to develop my strengths and
overcome the major weakness in me and my personality. I am also grateful to all those
individuals and institutions that have played a major part in my life and helped me to
shape my personality and opinions. The most important thing in my life at the moment is
to complete my internship at Prime Commercial Bank and accomplish my targeted
objective. I have great expectation to learn many things from the bank about the
corporate world and culture. This very internship will also provide me break to build
personal relation with many prime people and organization, which would be beneficial
for my future.
Before I finish I am greatly thankful to god, family and friends who have always been
with me and been a source of motivation for me and always expect me to achieve and
fulfill my dream and who supported me when I had intricacy.
Appendix III
Interview with Supervisor
The Prime Commercial Bank limited was incorporated on September 24, 2007 and
commenced its operations from the same day. With the concept of providing banking
service to everyone, the bank was started from eminent professionals having years of
experience in the hospitality industry mainly banks and hotels. The catch line of the bank
is “Sharing Dreams and Changing Lives”. The head office of the bank is situated in New
Road Kathmandu and have total of 4 branches in the valley including the head office and
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three other branches in the valley which makes a total of 7 branches at present with new
upcoming branches throughout the country. For the purpose of carrying out the survey at
the bank I questioned Mr. Geha Ranjan Joshi the PR Manager of Baneshwor branch as
well as my supervisor.
In order to join a bank or make banking as a career a candidate should be a graduate and
have completed masters from any discipline, but commerce is the most preferred stream.
The completion of masters only is not sufficient but one should have completed it with at
least 60% in aggregate and should be aware with the banking scenario and environment
of the country. If a candidate has a prior experience then it will be an added advantage
else the candidate should join the bank as a trainee, refine their required skills and then
join the bank as a full time employee. With the rising numbers of new upcoming banks
the entrance test in the bank is also getting tough, which enable a bank to select the best
candidate for them. Along with a written test based on GMAT and SAT basis a group
discussion and Personnel Interview is carried out and then only a candidate is appointed
to join the bank. Apart from the theoretical knowledge during these three stages of
selection a candidate should demonstrate that he is well aware of the market scenarios
and conditions which will be an added advantage for the customers.
The Relationship Building and Networking skills are considered to be the essential skills
that a candidate should have while joining the bank. In all the departments of the bank
from customer service to operations, from trade to credit department and every other
department, these skills are required in order to carry out the task with effectiveness and
efficiency. If a person has these skills then they can interact with other staffs and
potential clients of the bank with a great degree of confidence and convert the existing
relationship into business relationship. Apart from the Relationship Building and
Networking skills the other essential skills required in order to pursue the career in
banking sector are willingness to learn new things, able to work under pressure and
capable of undertaking challenging works. Apart from the required skills one must be
able to prove himself in all the assignments undertaken by him and complete then tasks in
the time allotted for him. The time management skills also plays a significant role in the
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banking career and one must abide by the time allocated for them to complete the
required tasks.
In order to develop the relationship and networking skills a person should always be
extrovert in nature and lay great emphasis on communications skills. The communication
plays a vital role in building up relationships with others as well as maintaining cordial
relations with other which is often a tougher job, than building relationship. The various
tactics in order to develop communication skills are reading newspaper, practicing
question and answer discussion, participating in group discussion and communicating
with others. The initiation of communication with strangers are often difficult and one
should always seek for mutuality among each others in order to begin the communication
such as hobbies, sports, magazine or any other ways in which the communication can be
started. Once the communication has been started then the foundation of building the
relationship has been laid and the relationship can be developed. Therefore in order to
develop the communication skills a bank employee should be genuinely interested in the
people and look for mutuality with clients.
The Prime Commercial Bank Limited started its operations with two other banks starting
its operation in short period of time. If compared with other recent bank which started its
operations after the establishment of Prime Bank, they have more branches at present but
the branch concept of their bank differs from the branch of Prime Bank. The branch of
other banks are restricted to the collection of deposit and withdrawals only whereas from
every branch of Prime a customer can avail all the services and doesn’t have to go to
head office for other services apart from deposits and withdrawals. The large percentage
of loan disbursed itself speaks about the success of Prime Commercial Bank Limited. The
bank at present is in its expansion phase are coming up with its new fully fledged
branches throughout the valley.
The rising scope of banking sector with new and innovative products and services being
introduced daily aroused Ranjan Sir a banking career. According to the sir “the work in
banking sector is interesting and not repetitive as in other private organization, the work
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to be performed keeps on changing in regular interval and doesn’t make a person life
boring doing same type of job daily.” Ranjan Sir worked in Everest Bank Limited before
joining Prime bank and gained a lot of experience and knowledge while working in
Everest Bank and later got appointment with Prime Bank. He says that while working in
bank he gets an opportunity to meet different type of people and build relationship and
contacts with them. The rising competition among the banks has created many challenges
as well as opportunities which makes banking a successive career if utilized with
effectiveness and efficiency.
The banking provides an opportunities in many departments and there are different sorts
of work available in the bank, with each department asking different level of knowledge
and experiences. The different sorts of work available ranges from cash department and
tellers to customer service department, from trade finance to retail banking, from
administration department to remittance department, from finance department to accounts
department and from legal department to reporting department. A candidate must know
in which department they wants to work prior joining to the bank and should have the
required competencies and skills required for that department. Apart from the nature of
work and required qualifications the ability to work constantly under pressure also
differs. The cash department requires more focus and concentration than compared with
other departments as the teller will be responsible for the mismanagement of the cash.
The bank and other financial institutions come under the supervision of Nepal Rastra
Bank and are guided by the supervision and laws of the central bank. It’s mandatory for
al the financial institutions to abide by the laws and bylaws of Nepal Rastra Bank, to
avoid penalties and restrictions of the central bank. Nepal Banker Association under the
chairmanship of Mr. Sashin Joshi is the association associated with the commercial banks
of Nepal and works for the supervision and development of the financial sector of the
economy. It make suggestion and recommendation to the central bank regarding how the
desired goal of the government can be made and basically how banking sector can be
enhanced and make access to all parts of the country. The Nepal Banker Association is
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not a political organization, but has its impact on the overall performance of the banking
sector of the country.
The rising number of banks throughout the country has brought significant changes in the
banking industry. The banking sector is flooded with different type of product and
services with new product and services coming up on regular basis. Previously the
banking sector used to be a banker market. The customer used to come to the bank and
avail the banking product and services. The customer was contended with one particular
bank and avail the services of only one bank, but in today’s scenario the customer can
never be contended with a single bank. The bank used to be a bankers industry but now
have shifted towards the customer industry which is the major changes emerging in the
banking sector. The rising number of banks in the economy has created many challenges
as well as opportunities at the same time. The banks are in cut throat competition, with
new and advanced products emerging daily and stiffen the competition among the banks.
Apart from keeping the pace with the competition, maintaining and retaining satisfied
customer base is another challenge, which the other banks can take the advantage of
attract them towards themselves. The rising numbers of bank have also saturated the
economy of the country which haves made it difficult for the banks to carry out their
operation in an efficient manner. The bank provides with new and innovative products
with a thorough professional environment of the organization, which is the most
important rewarding thing considered by my supervisor. The scope of banking is
increasing on at an alarming speed which provides more opportunities and a good pay
scale to almost all the staffs of the banks, which are considered to be the most satisfying
factors for most of the employees pursuing in the banking career. The time schedule of
the supervisor is not fixed by any extent. He believes in completion of the present work
of the bank and leaving the office. He says that if he has completed his work early, then
he have the full right to leave the office before the scheduled time of the bank, if not than
he have to work for an overtime and complete his work before leaving the office. The
normal operating time of the bank is 9:30 A.M – 5:00 P.M (Sunday – Thursday) and 9:30
A.M – 3:00 P.M (Friday) and Saturday is a holiday. The normal working time of the
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supervisor is 9:30 A.M – 7:00 P.M (Sunday – Thursday) and 9:30 A.M – 5:30 P.M on
Friday.
The banking sectors acts as a heart of an economy and plays an important role in the
development of the economy. In the absence of the banking sector we cant imaging the
smooth functioning of any economy. Even the banking gives an employee an
international exposure and is affected by the international global cycle, so the scope of
the bank is not restricted to the national level only. Therefore everything happening in the
economy as well as on international level has its impact on the banking sector, and as
bank manager and the employee a banker should keep a close watch on major happening
of the world, so as to reduce the negative outcomes of the major changes happening
around the globe.
If a candidate wants to pursue his or her career in the banking then they should lay a great
emphasis on improving their grades at the undergraduate and graduate levels. They
should try to score to their potential and keep updated themselves with the recent
happenings and events across the globe. Apart from the theoretical knowledge, a
candidate should have the practical knowledge and should demonstrate their capabilities
in logical reasoning and financial reasoning to justify their view points. If a candidate has
worked as a trainee in a commercial bank or a private organization then they are more
aware of the actual working scenarios and are more suitable than the others, so a prior
work experience can be an extra benefit for a candidate before joining the bank.
In conclusion I would like to express my sincere gratitude towards Mr. Geha Ranjan
Joshi for sharing his views with me and giving me the required time to complete my
survey and answering to my questions patiently and willingly. Without his viewpoints
and expertise ideas this survey couldn’t have been completed, and his thoughtful ideas
have helped me showed me the direction. His view points have definitely acted as
guidance for me.
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About the Author
Name : Kushal Sundar Shrestha
Address : New Baneshwor, Kathmandu
College : Kathmandu College of Management
Internship : Prime Commercial Bank
Email : [email protected]
Phone number : 9851074762
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Registration Number : A005965-05
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