Internship Report On Prabhu Bank Limited Babarmahal, Kathmandu Submitted By

Corporate customers
These are the types of customers who generally make the transactions in larger quantity. Their transactions are very high and they have huge investment. They are beneficial for the bank also as their work is huge. They are also given first priority.


Daily customers
These are the customer who comes on daily basis to do various transactions. They may come deposit (current, saving & fixed), to withdraw cash, to take loan (educational, home, agriculture, student, term etc.), to open account (personal, joint etc.). They are not given much priority as corporate customers.

1.4 Products and services

Banking Industry is a service oriented business. Such services are created by the banks and are consumed by the ultimate customers. PBL’s major commercial banking products and services include:

1. 
   Deposits
   
2. 
   Loans and advances
   
3. 
   Agency services
   
4. 
   Remittance
   
5. 
   Non-funded services
   
6. 
   Other services
   

Deposit products of PBL

Collecting the deposit from its customers is the major activities of the banks. PBL deposit under different types of accounts:

1. Current deposit/demand deposit:

Current deposits also known as demand deposits are the deposits that public make where thee bank and FI do not, generally, provide any interest in lieu of unlimited cheque writing facility. Demand deposit accounts offer greater liquidity and ease of access as compared to term deposits. Depositors of current deposit can withdraw any or all sum of money from the demand deposit without any restrictions. Features of demand deposits are as follows:

1. 
   Money deposited can be withdrawn at any time without prior notice and restrictions.
   
2. 
   Generally, Banks does not provide interest on current account.
   
3. 
   Depositors are offered a liquidity in lieu of interest in demand deposit accounts.
   
4. 
   Banks must ensure proper liquidity to enable the current deposit holder to withdraw their money on demand.
   
5. 
   The bank can ask deposit holders to keep minimum balance in the current account.
   
6. 
   Providing safety of fund to the larger businessperson and depositors is the main purpose of current deposit.
   

2. Saving deposits

Saving deposits are subject to restrictions on the number of withdrawals as well as on the amount of withdrawals during any specified period. Further, minimum balance may be prescribed in order to offset the cost of maintaining and servicing such deposits. Saving deposits are deposits that accrue interest at fixed rate set by the bank. Saving deposits are suitable for the individuals who wish to deposit small amounts out of their current income. Features of saving deposits:

1. 
   It is often first banking product people use.
   
2. 
   By these deposits facilities, bank offer certain percentage of interest on the deposit but restrict in number of cheques that could be drawn and the amount of withdrawal on certain period.
   
3. 
   It is less liquid deposit products compared to current deposits.
   
4. 
   It is suitable for developing the habit of saving among the customers.
   
5. 
   In the case of bankruptcy, the saving account holders have better privilege compared to current deposit holder and fixed deposit holders.
   

Major saving account products of PBL are as follows:

1. 
   Normal saving account
   
2. 
   Khutruke saving account
   
3. 
   Welcome saving account
   
4. 
   Foreign saving account
   
5. 
   Special saving account
   
6. 
   Salary saving account
   
7. 
   Good luck saving account
   
8. 
   Asirbad saving account
   

3. Term deposit/fixed deposits

Term deposits, also known as time deposits, are investment deposits made for a predetermined period of time, ranging from a few month to several years. The depositors receive a predetermined rate of interest on the term deposit over the specified time period. As the banks and FI need not to maintain liquidity for a certain time period and thus can invest such fund in long term profitable opportunities, they also tend to offer higher rate of return to the depositors compared to saving accounts. After the expiry of time, the depositors will have an option to re-depositing or withdrawing the sum of money. Following are the features of fixed deposits:

1. 
   The deposited amount cannot be withdrawn on demand i.e. the sum of money can only be withdrawn on the maturity.
   
2. 
   There is an option to renew the deposit or withdraw the sum after the maturity of the fixed deposits.
   
3. 
   Banks offer higher rate of interest in lieu of less requirement of liquidity.
   

Major fixed deposit products of PBL are:

1. 
   Normal fixed deposit
   
2. 
   PBL special fixed deposit
   
3. 
   PBL corporate fixed deposit
   
4. 
   Corporate Bulk Deposit
   
5. 
   Diamond fixed deposit
   

Lending product of PBL

Lending is another core function of the bank, and is one of the major source of earning. On an average out of total income of the bank, 60-70% of income consists from lending activities. Since lending activities provides major portion of income to the banks, the product design, delivery need to be customized, flexible and should be modified as per the need of the customers. Commercial banks provide following types of loans to the customers.
PBL offers short-term as well as long term loans to individuals and organizations in the form of the bank credit, which is a secured loan carrying a certain rate of interest. There are various types of bank credit provided by PBL, which are as follows:

1.