Professional Documents
Culture Documents
DEBREMARKOS ETHIOPIA
Internship Report
submitted to; Department of Accounting and Finance
Tesfaye Shumye
ID Number 1573
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1. Introduction
Generally, the objective of this practical attachment is to assess the performance of commercial
bank of Ethiopia Debremarkos Abma branch. The extent to which commercial Bank of Ethiopia
Abma branch is realizing its vision and mission and performance of the organization in relation
to its objectives. The intention of this practical attachment or internship was to increase
student’s knowledge and enable student to compare what have learnt in so far in class and what
have experienced in during the time of practice. To produce well qualified, self-reliant, active,
change agent and real problem solver student. In addition, the other objective is to investigate
equal participation of commercial Bank of Ethiopia with other bank to it realizes to its visions,
mission and objective. Not only limited to this but also emphasis the problems faced by me while
I was performing this practical attachment. Thus, practical attachment suggests solutions and
some of policy implication toward reducing the problems based on finding.
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Part One: Organizational Report
It has more than 1,616 branches stretched across the country and has opened four branches in
South Sudan. Currently CBE has more than 25 million account holders and the number of
mobile banking and internet banking subscriber’s reached more than 1.1 million. Similarly the
number of card holders has reached 2.8 million as of June 30th 2016.
It has pioneer to introduce modern banking to the country and the first bank to introduce
Automatic Teller Machine (ATM) services for local users.
CBE also is pioneer to introduce Western Union Money Transfer services early 1990’s and
currently working with other 20 money transfer agents like Xpress Money, Money Gram
Dehabishil, etc. The bank has strong relationship with 50 renowned foreign banks and has a
SWIFT bilateral arrangement with more than 700 other banks across the world.
Currently CBE has merged with construction and Business bank and increased its market size
and capital.
Ethiopia
1.2.1 Mission
The bank highly committed to best realize stakeholders values through enhanced financial
intermediation globally owned and supporting national development priorities, by developing
highly motivated, skilled and disciplined employees as well as state of the art technology. We
strongly believe that winning public confidence is the basis of our success.
i. Integrity
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-we are committed to the highest ideals of honor and integrity
-we strive to act in an honest and trustworthy manner
-we firmly adhere to ethical principles
ii. Customer Satisfaction
-we strive to excel our business and satisfy our customers
-we are committed to offer the highest quality service to our customers and aspire to be
branded with quality in the minds of our customers and the general public
iii. Employee satisfaction
-we are committed to employee training and professional growth
-we distinguish our employees as valuable organizational resources
-we recognize our employees for their achievements
iv. Learning organization
-we are committed to anticipate and respond to internal and external changes through
constant improvement and adaptation
-we strive to establish a culture that nurtures individual and group learning
v. Teamwork and collaboration
-we recognize the importance of teamwork for our success
-we support one another and work co-operatively
vi. Public trust
-we understand that the sustainability of our business depends on our ability to
maintain and buildup public confidence
vii. Value for money
-we use resources carefully to save expense, time or effort
-we deliver the same level of service for less cost, time or effort
-we deliver a better service or getting a better return for the same amount of expense,
time or effort
viii. Decentralization
-we are committed to delegate operations and decision-making responsibilities
ix. Corporate citizenship
-we value the importance of our role in national development endeavors
-we abide by the laws of Ethiopia and other countries in which we do business
-we care about the welfare of the society and the environment
1.2.3 Vision and Objectives of CBE
The vision of the bank is to become a World-Class Bank by the year 2025.
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Enhance growing market share
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the job given to all departments.
1.4 Action Taken by the Bank to realize its Visions & Mission and the
CBE implemented various actions to modernize and increase quality of service such as IT
infrastructure, the card banking system, integrated Banking Solution (Core Banking), internet
and mobile banking. It has been installing ATM cash dispensers & other e-banking systems
across the country and providing Visa-branded card payment service. Even though the number
of mobile & internet banking users are few compared with total population of the country, the
bank has been taking various measures to increase the number of mobile and internet banking
users.
The bank trains its employee in order to improve quality of service deliverance, to develop their
skill and to create awareness on the policy and objectives of the bank. A corporate human
resource development strategy had been developed and implemented such as:-
Agreement signed with international and consultancy firms and higher education
institutions like Frankfurt business & Management university to provide the
developmental training on continuous basis;
Large developmental and technical trainings programs are provided;
Succession planning and career Management system developed;
Performance Management System (PMS) developed and implemented
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In addition to that CBE opened its own library at Addis Ababa to develop its employee
knowledge and skill.
The bank establishes reliable information system and database for customer profiles and other
relevant information centrally stored and accessed.
CBE has been using various measures to increase its deposit amount, customer base and
foreign exchange earnings. Some of the measures taken by the bank are:-
CBE
Like any financial organizations Commercial bank of Ethiopia can also be affected by changing
environment. Therefore, it is necessary to know SWOT analysis of the bank. It provides a
strategic SWOT analysis of the bank business and operations. The following are some of the
SWOT analysis of CBE:-
Strength of CBE-
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customer’s in ways that competitors can’t imitate;
Customer loyalty
Weakness: -
competitive market
Population growth
New products and Services:-
growing economy
New Technology
Vision to become World Class Commercial Bank in 2025
Threats:-
growing competition
external business risks
1.6 Challenges & Problems of CBE
Like any financial organizations, CBE has faces various challenges in its day to activities and in its
strategic action. The following are among the problems that faces CBE at current time
1. Inflation: - Since recent times inflation has become the main global and domestic economic
challenge. Before the 2008 global financial crisis there was also inflation and as the economies
of Asian countries like China and India grew at a faster rate the demands for raw materials rose,
and it was mainly caused by international demand hikes. But after the crisis many developed
countries followed the policy of financial easing and released their currencies in to the global
economy. And increase in the money supply has created a massive global inflation and that is
felt here in Ethiopia.
For CBE the high rate of inflation has serious implication. Since it gives loans at a fixed rate of
interest as inflation rises their profit margin will be diminished. And as for a long period of time
the rate of inflation is higher than the deposit saving interest rate, the depositors will be less
motivated to deposit their money in a bank.
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2. Low infrastructure in the country: - absence of basic infrastructure in the country hinders
the bank not to provide modern banking services to the society. The following are some of
challenges of CBE related with poor infrastructural facility of the country:-
provide modern bank services to the society. In addition to that frequent failure of
network creates customer dissatisfaction of the bank. Even though CBE introduces some
modern banking service like ATM, Visa cards, mobile and internet banking in capital city
and in some regional cities, majority of the society missed to enjoy with the
technological advancement which has been entertained elsewhere in Africa and the rest
of the world due to the absence of infrastructural facilities.
4. Competition from other Bank:- there are many other bank that compete with CBE. They
always provide new products and service to their customers and their service excellence
increases from time to time. In addition to that private banks provide credit service to private
sector and CBE gives priority to provide credit service to government & sectors that have
impact on national economic development.
As CBE planned to become world class bank in 2025 it apply various approaches to solve or
minimize its problem & challenge in order to achieve its goals. It provides financial support to
government in order to minimize poor infrastructural facility like telecommunication and
electric power supply.
CBE also used various methods to create awareness and to increase its customer base. It used
Door to door, browser, various TV, and Radio channels, discussion with stakeholders and other
methods to create awareness on bank products and services to the society.
CBE also introduces new and modern technology to its customer periodically. The users of
modern banking services increasing from time to time and the number of branches opened
across the country reached more than 1616 now .
Today, more than ever before, CBE aggressively expanded its presence in all directions of the
country. Despite the flourishing of other private commercial banks in the country, CBE has
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remained potent and is in the lead in terms of assets, deposits, capital, and customer’s base.
Customer service officer department is one of the sectors of commercial bank of Ethiopia shanto
branch. It performs its duties and responsibility by setting specific and feasible goals and
objectives which support to speed up customer satisfaction and profit
maximization of the bank.
or division.
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2.3 objective and major responsibilities as well as activities of the department
/division
3) Telegram – that means send outgoing message and receive incoming message fro m other
branch.
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service.
● I accomplish a given work punctual and honestly by obeying the rules and regulat ion of
the organization.
● Protecting the office resource from damage.
● I gave different service for department and customers.
● I fill different forms by helping customers.
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took to overcome the challenges are:-
By reading and understanding various documents like various Memo and Manuals
Induction from manager/supervisor about the workflow, office manner and customer
handling .
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plans to undertake. In addition to that it enables to know theories and principles I have
learned in a class practically. Therefore, practical attachment has paramount benefits to my
study and to my future career in the field.
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Many of the theories that we learned in the class are directly or indirectly related with practical
work that I observed. Let us see some of the theories applied in the work place.
◆ principle of marketing used to identifying customers need and want.
◆ consumer behaviour used to know customers behaviour.
◆ civic and ethical education used to respect bank rules and regulations .
Example: punctuality
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academic life.
Organizational background, its mission, vision and values, organizational structure, SWOT
analysis, and various challenges and problems that affect organization at current time of CBE
has investigated in the attachment.
CBE has largest commercial bank in the country and it has huge capital, skilled manpower and
more than 1616 branches stretched across the country. The organization has the capacity and
willingness to contribute to economic growth of the country by mobilizing resources of the
country.
Various challenges and problems that faced organization in general and CBE shanto branch
particularly in current time has investigated. Some of the challenges of CBE that indicated
above are inflation, lack of infrastructures, lack of awareness about the banks product and
service and competitive environment. In addition to that big internet connection/network
problem and inefficiency of materials are the major challenges of CBE
shanto branch.
4.2 Conclusion
The attachment ascertains that creating strong relation between university and employers has
great advantages for students, university and generally for the society. Many Ethiopian higher
education institutions do not create practical attachment chance for their students. Rather they
focused on teaching theoretical part and that creates challeng
for the students in their employment after they complete academic life.
On the other hand many challenges and problems observed in the organizations where the
practical attachment was conducted and knowing challenges and problems of organizations
may develop problem solving skill of the students. Therefore, conducting practical attachment
is important for students, university, employers and for society generally.
4.3 Recommendation
Based on the findings of the practical attachment, the following are recommended for the
concerned organs:-
The university should increase duration time of the practical attachment;
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Service excellence is useful for CBE to compete with private banks. The bank should
expand modern banking service specially E-banking service to its customer;
CBE should give due attention for research and development;
CBE should take action to mobilize and collect resources from growing economy of the
country;
The university should provide adequate budget for practical attachment;
The university should strength linkages with organizations where the attachment
conducted;
The university should give orientation/induction about practical attachment to their
students. It enables students to become pre-oriented about practical work environment.
Like other private bank CBE should pay better salary to its employee due to employee
satisfaction is one among the values of the bank, in addition to that better salary may
reduce skilled and experienced employee flow to private bank.
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5. References
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