Internship Report On Prabhu Bank Limited Babarmahal, Kathmandu Submitted By

1.6 Financial structure

Financial structure is the way in which a company’s assets are financed, such as short-term borrowings, long-term debt and owner’s equity. Financial structure differs from capital structure in that capital structure accounts for share of the bank are held by government. However, the bank’s financial structure is mentioned below.

Table 1: Financial Structure

Prabhu Bank Ltd.
Condensed Consolidated Statement of Profit or Loss
As on Quarter ended 3rd Quarter 2078/79

Bank
Current year			Previous Year corresponding
Particulars	This Quarter Ending	Upto this quarter		This Quarter Ending	Upto this quarter
Interest income	4,481,172	12,142,440		3,185,965	9,658,864
Interest Expenses	(2,983,050)	(7,819,316)		(2,046,624)	(5,823,498)
Net Interest Income	1,498,122	4,323,123		1,139,341	3,835,366
Fees and Commission income	296,199	996,473		283,237	906,049
Fees and Commission expenses	(16,190)	(46,888)		(41,125)	(88,519)
Net Fees and Commission income	280,009	949,585		242,113	817,529
Net Interest, Fees and Commission income	1,778,131	5,272,708		1,381,454	4,652,896
Net trading income	28,787	172,341		191,310	518,792
Other operating income	65,223	194,062		(14,745)	221,473
Total operating Income	1,872,140	5,639,111		1,558,018	5,393,161
Impairment (charge )/ reversal for loans	(134,315)	79,623		273,877	462,085
Net operating income	1,737,825	5,718,734		1,831,895	5,855,246
Operating expenses	-	-		-	-
Personnel expenses	(669,825)	(2,134,874)		(546,414)	(1,809,101)
Other operating expenses	(300,233)	(807,391)		(298,130)	(771,206)
Depreciation and amortization	(75,252)	(215,834)		(77,825)	(218,452)
Operating profit	692,515	2,560,635		909,526	3,056,488
Non -operating income	289	14,371		488	46,421
Non -operating expenses	(4,334)	(45,275)		22	(114,670)
Profit before income tax	688,470	2,529,731		910,036	2,988,239
Income tax expenses Current tax Deferred tax	(197,558) -	(775,111) (1,697)		(319,114) -	(878,632) -
Profit/ loss for the period	490,913	1,752,923		590,922	2,109,607

1.7 Financial performance
Financial performance is a complete evaluation of a company’s overall standing in categories such as assets, liabilities, equity, expenses, revenue, and overall profitability. Financial performance is a subjective measure of how well a firm can use assets from its primary mode of business and generate revenues. The term is also used as a general measure of a firm's overall financial health over a given period.
Table 2: Key performance indicator

Earnings per share	19.52	Market price per share	219
Price Earnings Ratio	11.91	Return on total assets	1.19%
Net worth per share Rs.	158.40	Liquidity ratio	24.76%

The net interest income of prabhu bank limited in 3^rd quarter of 2078/2079 is Rs.4,332,123 which is increased by Rs. 487757 as compared to previous year 3^rd quarter data. Similarly net fees commission income is increased by Rs. 132056 and net operating income is increased by Rs 5718734 . Profit for this period is Rs 1752923 and the profit is decreased by Rs 356684 in corresponding of previous year.


CHAPTER II

JOB PROFILE AND ACTIVITIES PERFORMED

2.1 Activities performed in the organization

During two months of internship at Prabhu Bank, main Office, Babarmahal, Kathmandu i worked at only one department i.e Trade operation department. I don’t get the opportunity to work in whole trade operation department since I have worked only in the LC department which is one part of trade operation department. While working as a part of the real organization setting outside the classroom learning, I got an opportunity to learn standard working practices of an organization and management practices.
Table 2.1: Department worked during the internship

Working Period (Week) Department	1	2	3	4	5	6	7	8	9
LC Department

During the internship, I was provided various tasks. I as an internee was allowed to do only certain task on order to maintain confidentiality of the company.
I have performed the following activities:

2.2 Problems identified

I faced certain problems during my internship days in PBL. The major problem in the bank for the trainee in my department was the work know-how and workload problem. Being the internee in the bank I was expected to perform all the given activities at the prescribed hour. During the first week of internship I was assigned to work at enquiry department where I need to give various forms for account opening, new/renew Debit card, dispute declaration, mobile banking etc and help the customers to fill those forms if they didn’t understand any term/s. I was also new to such work and there was no immediate supervise to guide me through. During first week my fellow interns used to teach me thus I faced problem of technical knowhow from day internship was started. But as the time pass by with the help of other bank staffs and my fellow interns I became familiar with the work. Few problems that I have faced during my internship are as follows:

1. 
   My supervisors sometimes forget that I was new to the field.
   
2. 
   During the peak hours (10:30 to 1:00) the flow of customers is too high so it is difficult to handle customers.
   
3. 
   During internship, I need to attend both regular college lectures and regular banking work, the change in schedule of my regular activities it was difficult to manage socializing activities as before.
   

The main objective of the internship is to help students understand the real working environment as well as to apply the knowledge they have gained in the classroom into the real business practices. The internship enables the students to be acquainted with the practical aspect of the Nepalese business environment. This program also helps to know how the organization as a whole operates and also how communication takes place and activities are coordinated in the corporate world. Thus, the internship program can be regarded as a fruitful opportunity for the students of MBA to be familiar with the corporate work environment of Nepal. I have learned to entire work in the departments and I was also able to cope up with the problem that was faced during my work in bank. Above mentioned are the basic problems that I have faced during my internship period at Prabhu Bank.

2.3 Problems solved

During the internship program lots of problem raised and had to face that situation. People always learn from difficult situation, your best effort is seen in that situation. That is analysis period. By facing those problems I could also found out the way to solve those problems. They are as follows:

1. 
   Handle the entire customer at once during excessive workflow.
   
2. 
   Many issue of ATM card dysfunction were heard and relayed that information to the IT department at bank in order to address such issues.
   
3. 
   Incorrect information on account opening forms was checked and corrected accordingly to prepare a valid and accurate database of customers.
   
4. 
   Fraud by the customer was identified; wrong information by the customer makes it difficult for the staff to approval of loan.
   

2.4 Intern’s key observations

During the internship at Prabhu Bank on various departments I got chance to observe so many thing. Since it is one of the renowned Bank, I felt it will provide me with the practical exposure in the respective field. During my internship period the staffs of PBL were very cooperative and guided me all the way till the end of my 2 months internship program. All the knowledge gained in this whole period will surely be handy for my carrier in the field of loan lending. The theoretical knowledge that gained in our college is now backed up with this internship program due to its practical nature. Furthermore, to learn new lessons which were not covered in our classes.The environment of PBL was mobile, everybody own works. It was exciting to see the real professional environment of the office. There were many departments, each specializing in its own field. I was very comfortable for they provided me with their senior staff as my instructors and respected staff took me too many departments to help me gain good knowledge about the real time scenario of an organization. Due to the confidential nature of the organization I am not allowed to expose the name and some working procedure of the organization.
As already mentioned above, I was only familiar with the aspect of loan, therefore it took some time to get used to the practical knowledge and keep in pace with practical procedures. Even, encountered some absolutely new subject matters that I had exposed before in our college. The key things that I have observed during my internship period are as follows.The key things that I have observed during my internship period are as follows:

1. 
   The cheque book and ATM cards are provided from the respective branch in which the customers have account only. Because of this customer face problem of time delay, compulsion to visit the branch even they are outside the city they need the cheque book and ATM card.
   
2. 
   The credit lending is a long procedure so the customers have to wait for long time for loan.
   
3. 
   Customers have to wait for more than one week for getting ATM card form the date of request.
   
4. 
   The performance of the employees are appraised time and again which signifies the employee’s satisfaction in the organization.
   
5. 
   Customer’s privacy was given the highest priority.
   
6. 
   Different departments are well managed so that customer has not face problem to found the related departments regarding their work.