ADDIS ABABA UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF ACCOUNTING AND FINANCE

“ ASSESSMENT PRACTICAL INTERNSHIP REPORT ON

HIJRA BANK AT WOLDIA-DANA BRANCH “

Name............................... Nejat Ahmed

ID,NO...............................UGR/5768/13
Section............................. III
Year.................................. IV

Submitted to; Mr. Sintayehu D

Submission Date; Nov,10,2023
Addis Ababa - Ethiopia

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ACKNOWLEDGEMENT

First of all, I would like to extend my special thanks to ALLAH for giving me peace of mind
and helping me to accomplish my task from inception to the end. Next to God, my hearty thank
goes to my family for that graciously of knowledge, wisdom and inspiration required for the
successful completion of my practical attachment practice and my proposal preparation.
Secondly I would like to thanks for Addis Ababa University specifically the College of
Business and Economics for providing this opportunity to do internship program to enhance
my learning. Finally, I would like to express my very deep gratitude to all the staff of Hijra
Bank woldia-dana branch Specifically the for their warm welcome, overwhelming response
and cooperation shown during my internship period.

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Table of Contents............................................................................................................. Page

Abbreviations ............................................................................................................................ 4
List of figures .............................................................................................................................4

Abstract ......................................................................................................................................5
Chapter One; Introduction .....................................................................................................6

1.1 Introduction ..........................................................................................................................6

1.2 Background of the organization ...........................................................................................6

1.3 Cardinal Issues .....................................................................................................................8

1.3.1 Mission and Vision of Hijra ...............................................................................8
1.3.2 Core value .............................................................................................................8
1.3.3 Product and services ..............................................................................................9
1.4 The Governance and organisational structure of Hijra Bank.................................................9
1.5 Objectives of the Report .....................................................................................................11
1.5.1 General Objectives ..............................................................................................11

1.5.2 Specific Objectives .............................................................................................11

1.6 Significance of the attachment ...........................................................................................11

1.7 The Methodology of the Report ..........................................................................................12

1.8 Limitations of the Report ....................................................................................................12

Chapter Two; Data presentation, analysis, discussion and reflection ................................13

2.1 Customer service department of Hijra Bank.......................................................................13

2.2 Major responsibility and tasks ............................................................................................14

2.3 Observation gap..................................................................................................................16
2.4 Learning and experience ....................................................................................................16
Chapter Three; Summery, conclusion and recommendation.............................................17

3.1 Summery ............................................................................................................................17

3.2 Conclusion .........................................................................................................................18

3.3 Recommendation ...............................................................................................................18

Reference .................................................................................................................................19

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Abbreviation
1. AAOIFI – Accounting and Auditing Organization for Islamic Financial Institutions
2. PLS - profit and loss sharing
3. CEO - Chief Executive Officer
4. CFO - Chief Financial Officer
5. CRO - Chief Risk Officer
6. CSD – Customer service department
7. KYC – Know Your Customer
8. ATM – Automated Teller Machine
9. CIF – Customer Identification Form

List of figures
Figure 1.1 ... Logo of Hijra Bank

Figure 1.2 .... Structure of Hijra Bank

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ABSTRACT

This internship report provides an overview of my experience and learning during my

internship at Hijra Bank as an accounting and finance student. The report covers the general
responsibilities of my position at the bank. Throughout my internship, I gained a strong
understanding of banking operations, accounting principles, financial analysis and a
comprehensive understanding of Shariah-compliant banking practices and the principles that
govern them. I was also able to gain valuable experience working with a team, learning from
mentors, and utilizing various software programs. The report concludes with a reflection on
the skills and knowledge I gained during the internship and how they will benefit me in my
future career. Overall, my experience at Hijra Bank was invaluable to my professional
development as an accounting and finance student.

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 CHAPTER ONE
INTRODUCTION
1.1 Introduction
This paper is prepared to accomplish the course professional in accounting that enables as to
show the applicability of theoretical course of accounting in the real world business
environmental, as known there three business enterprise these are manufacturing,
merchandise and services enterprise and they play a greater role in the economy and social
aspect development of a country. And I conduct my professional practices in services
enterprises type of business, which called Hijra Bank.

In the following pages the reports include the detail description of the assignment that I was
handling, mission, vision and objective of the Bank. As well as, problems and suggested
solutions, finally conclusion and recommendation.

1.2 Background of the organization

Banking has an integral part of the global economy and it plays a crucial role in providing
financial services, such as deposit-taking, lending, investment management, and payment
systems. They act as intermediaries between savers and borrowers and facilitate economic
growth. One of the main aspects of conventional banking is the practice of charging and
paying interest on loans and deposits .

Islamic banking emerged as an alternative to conventional banking to address the concerns

related to charging and paying interest. It also referred to as Shariah-compliant finance,
refers to financial activities that adhere to Shariah (Islamic law). It offers financial services
and products that comply with the principles of Islamic law, including the prohibition of
interest. Islamic banks operate on the concept of profit and loss sharing (PLS) instead of
charging or paying interest. This means that instead of lending money and expecting a set
interest rate in return, Islamic banks participate directly in the investment or business venture,
sharing both the profits and losses. This creates a more equitable and cooperative relationship
between the Islamic bank and its customers.

Hijra Bank is a fully Sharia-compliant interest-free bank in Ethiopia that was established on
January 16, 2020. It upholds the core values of HIJRA, which stand for Honesty, Inclusivity,
Justice, Responsibility, and Agility. The establishment of Hijra Bank represents a significant
step towards the development of inclusive and ethical financial solutions in Ethiopia. What

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sets Hijra apart is that it uses a core banking solution accredited by AAOIFI, which is
periodically reviewed and approved by a Sharia Advisory Committee comprising of seven
members, including Sheiks, imams, and respected religious scholars. Additionally, the Bank
is unique in using a Core Banking System that was acquired from the first and only AAOIFI-
certified Sharia-compliant software solutions.

The Hijra Bank Woldia-Dana branch is a regional branch of Hijra Bank. It is located in the
town of Woldia and started its operations on May 12, 2023. Woldia-Dana branch is
strategically positioned to cater to the financial needs of the local community. It offers a
range of banking services, including current and savings accounts, business banking, personal
financing, and trade finance. The bank's primary objective is to address the banking needs of
both Muslims and non-Muslims by adhering to Islamic principles. These principles
emphasize the avoidance of interest-based transactions (riba) and promote socially
responsible and morally acceptable investments. Additionally, the branch is equipped with
advanced banking technologies to ensure convenient and secure transactions for its valued
customers.

Figure 1.1 Logo of Hijra Bank

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1.3 Cardinal Issues

Any organization either governmental or non governmental has its own mission, vision, core
value and objective. In its work, so that Hijra Bank have its own cardinal issues in its service.
There are as follows

1.3.1 Mission and vision of Hijra Bank

The mission of Hijra Bank is to offer innovative and customer-focused Sharia compliant
banking services and products, utilizing advanced technology and dedicated professionals to
generate sustainable value for its stakeholders. The Bank aims to provide ethical financial
solutions while promoting economic development and financial inclusion and It aims to meet
the diverse banking needs of individuals, businesses, and communities, while adhering to the
principles of Shariah (Islamic law). It is committed to delivering excellent customer service,
fostering partnerships, and contributing to the growth and welfare of society.

Driven by its vision to become the leading partner in ethical banking, Hijra Bank is rapidly
expanding into new territories and currently operates 75 branches across the country. This
growth has positioned the bank as one of the fastest-growing banks in the nation. It aspires to
be recognized for its innovation, customer-centric approach, and positive impact on the
communities it serves. Hijra Bank aims to actively advance Islamic banking principles,
sustainable finance, and social responsibility in order to achieve long-term growth and
prosperity for its stakeholders. Additionally, the bank has embraced digital technologies, such
as mobile and internet banking, to promote financial inclusion for over 350,000 customers
nationwide. Alongside its regular banking operations, Hijra Bank actively supports the
advancement of the Islamic banking system through media campaigns and community
engagement.

1.3.2 Core value

H Honesty

I Inclusive

J Just & Fair

R Responsible

A Agile

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 1.3.3 Products and services
✓ Wadia savings account
✓ Mudarabah savings account
✓ Mudarabah Fixed Time Investment Account
✓ Murabaha working capital financing
✓ Murabaha project financing
✓ Salam financing
✓ Ijarah (capital good lease financing)
✓ Kafalah (Letter of Guarantee), and
✓ Fee-based banking services (Wakallah, money transfer, etc.).

And during the fiscal period, Hijra Bank introduced three major product lines:

✓ Hijra_Kesb
✓ Hijra_Al Tifl
✓ Harameiyn

1.4 The Governance and organisational structure of Hijra Bank

Hijra Bank is designed to ensure transparency, accountability, and an efficient decision-

making process. Here is a breakdown of the key aspects of its governance and organizational
structure:
Board of Directors: The Board of Directors is responsible for setting the overall strategic
direction of the bank and supervising its operations. It consists of highly experienced
professionals with diverse backgrounds, who provide expertise in areas such as finance,
banking, and legal.
Executive Management: The Executive Management team is responsible for the day-to-day
management and operations of the bank. This team is led by the CEO)and includes other key
executives such as CFO, CRO, and heads of various business units.
Committees: To assist in effective decision-making, the bank has established several
committees within its governance structure. These committees include an Audit Committee,
Risk Management Committee, and Nomination and Remuneration Committee. Each
committee consists of board members and high-level executives who bring specific expertise
in their respective areas.
Internal Controls: Hijra Bank has implemented robust internal control mechanisms to ensure

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compliance with regulatory requirements and mitigate operational risks. These controls
include comprehensive risk management frameworks, regular internal audits, and rigorous
compliance processes.
Organizational Structure: Hijra Bank follows a functional organizational structure. Different
functional units such as retail banking, corporate banking, operations, risk management, and
finance work under the guidance of the Executive Management team. This structure allows
for effective coordination and specialization within each department.
Compliance and Ethics: The bank places a strong emphasis on compliance with legal and
regulatory requirements, as well as ethical conduct. It has established a dedicated compliance
department responsible for monitoring and ensuring adherence to applicable laws and
regulations.
Transparency and Reporting: Hijra Bank is committed to maintaining transparency in its
operations and reporting. The bank provides regular financial statements, annual reports, and
updates to shareholders, regulators, and other stakeholders to keep them informed about its
financial performance and operations.

Figure 1.2 Structure of Hijra Bank

1.5 Objectives of the Report

1.4.2 General Objective

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The Overall objective of this practical attachment report is to provide a comprehensive
overview and reflection of my internship experience. The report aims to document and
showcase the knowledge, skills, and insights I have gained throughout the internship period. It
serves as a means to assess the growth, professional development, and the value of the
internship program at Hijra Bank.

1.4.3 Specific Objectives

✓ To provide a clear and detailed description of my specific role and responsibilities

during the internship at Hijra Bank, including outlining the tasks and projects I was
involved in.
✓ To demonstrate how applied the theoretical knowledge I acquired during my education
to real-world situations at the bank.
✓ To describe my personal and professional growth during the internship, documenting
the new skills, competencies, and insights I have acquired.
✓ To explain how the internship contributed to my development, both in terms of
technical expertise and soft skills.
✓ To assessing the strengths and weaknesses of the internship program at Hijra Bank

1.5 Significance of the attachment

Practical attachment is an essential for the development of the practical and professional skills
required for a real work and an aid to prospective employment. It helps students the opportunity
to apply knowledge in real work, exposing students to work methods not taught in the
university and as well as assessing students interest in the occupation he/she 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.

There are a lot of significant of practical attachments for the students, university and for
society. Some of the significances are listed below:-
✓ Practical attachment gives students the opportunity to apply the knowledge and skill
they have acquired on campus in a real-life work situation
✓ It enables student to be familiar with practical work when they complete their academic
year:

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 ✓ It develops student's research making skill.
✓ It develops student's skill to solve challenges or problem that they faced during
academic year or their practical work,
✓ It enables employers to recruit graduates familiarized with practical work
✓ It enhances employability skills of the students.
✓ It helps students' to develop decision making skills, critical thinking skills, increased
confidence and self-esteem

1.6 The Methodology of the Report

This report has been prepared on the basis of experience gathered during the period of
internship and my own learn and understanding. The entire process has been made by collecting
primary data which played a crucial role in writing down the report and secondary data was
necessary to provide additional support and structure or It needed for supportive structured
build-up to the report. the methodology or the method in which way the data will be collected
was as follows;

➢ Primary data sources: This involved Inspecting different desks, talking with
employee's in the office and organized and planned analysis are the main resources.
➢ Secondary data sources: This included gathering information from brochures, the
bank’s website, and other relevant secondary data sources. To identify the execution,
control and monitoring process of the banking system, an extensive and elaborate study
of the existing files, clarifications of specific cases, and observation interviews with
employees were conducted.

1.7 Limitations of the Report

This study has been prepared on the basis of observations and experience gained during
internship period. It is confined only in the Customers Service Department.

The following are the limitations of the study:

➢ The bank's policy on keeping some matters confidential presented from analysing
different activities.
➢ The interpretation and conclusion were drawn within the limitations of individual's
knowledge and judgment abilities and on the basis of data provided and other published
and unpublished sources. So it may lack the profession al and expert touch.
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 ➢ This report takes into consideration only about general activities and does not include
the minor details about each and every activity performed in the bank due to the time
constraint.

CHAPTER TWO

DATA PRESENTATION, ANALYSIS, DISCUSSION AND REFLECTIONS

2.1 Customer service department of Hijra Bank

As an organization has several departments, Hijra Bank has also got various departments where
activities are carried out according to their nature and function. All departments perform their
work independently and all the departments having the aim to achieve same organizational
goal. During the two months' internship program I got an opportunity to work on Customer
Service Department of Hijra Bank S.C, woldia-dana Branch to accumulate learning experience
of banking activities.

Customer service representatives who work for banks answer customer questions about basic
banking services, such as account balances and fees. They also help customers protect their
accounts by reviewing suspicious activity, reversing transactions and reissuing compromised
debit and credit cards.

The job duties of a bank customer service representative at Hijra Bank S.C includes

✓ Answer questions about account types and banking products, such as CDs, loans and
Credit cards
✓ Filing and Documentation
✓ Account Opening and closing
✓ Assist banking customers who are victims of frau d, theft or identity theft
✓ Assist customers with replacing lost or stolen credit or debit cards

2.2 Major responsibility and tasks

Customer service department is basically the front desk of bank, as this is the department where
customer first contacts with the bank. The reputation and image of bank is highly determined

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by this department. This is department where the bank delivers its product and services to the
customer. The staff of this department should have fair knowledge of all departments so, that
they can answer the customer queries. Customer service department intends to attract the new
potential customer and retaining the existing ones. All the activities of this department is to
satisfy the customer. Customer department is also concern with revenue generation which mean

to increase the profit. If the old customer are unhappy with this department or with bank then
the bank should bear loss. The bank should find new customer which incurred expense for bank
as well as the reputation and image will be damage of bank. This department is also known as
bridge for bank as this department is link between customer and other department. So, this
department is crucial for bank. The intern serve customer by providing product and service
information. The interns distribute cheque. I serve customer by providing various form like
debit card, Account opening for and many more. The major functions I performed by intern in
CSD department are as follows:

1) Account Opening; With the proper verification of all required documents, new account is
opened. It is very essential to know all the details of customers before opening of an
account. To open an account in a bank is related to enter into a contract between a person
or an institution and a bank. Account Opening Procedure:
• The account opening from should contain account name, account holder number,
nominee name and signature.
• Account number is given as per registered sequence following computer system rule to
open the account in computer.
• If there is any discrepancy of document found by the manager or operation in charge
then the customer is in formed about that and is asked to clear the discrepancy.
• The manager or Operation in-charge approve the document
• Then the customer is requested to deposit the minimum re balance next day as
prescribed
• in the assigned account number.
• Then customer is requested to collect the cheque next day and customer is released.
They will be informed through a phone call after their debit card is ready.
• Then, documents are checked as per details given in Account Opening Rules according
to
• the nature of the account.

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 • The documents are returned to CSD after the authorization.
• Signature is scanned for the computer access. All other information related to the
customer is written in the account opening section for the future reference The account
opening form and KYC along with other necessary documents are kept in a serial order
as per account number for future reference.
2) Customer Query Handling ;As a Customer service staff during intern ship, intern most of
the time was spent in handling the numerous queries of various walk-in customers. I gave
the information that they wanted. Many customers were interested to learn about the
product and services, which the intern happily obliged. In addition to that, the intern
answered queries on other products, services, transaction hours, Account Reactivation and
so on.
3) Filing and Documentation; Filing and documentation are very important task that staff of
Customer service has to do. The entire paper work has to be done simultaneously to the
computer work. There are different types of file for filing documents. The account holder's
form, debit card request form, sms alert form, mobile banking request form, cheque
requisition form etc. are filed in their respective files. Other documents like ATM
Acknowledgment, card capture form, account reactivation, account category change etc.
are filed in their respective files.
4) Checking The Form Filled Up by The Customers; All the customers may not be aware
about the procedure to fill up the form, so the intern checked the different form filled up by
the customers such as Remittance Form, Deposit Form, Account Opening Form, Account
Closing and Transfer Farm, SMS Alert Form, Debit Card Application Form, CIF Term
Deposit Form and asked the customers to fill up the missing part.
5) Helping Customers to FilI Up The Form; As all the customers are not literate, some may
be illiterate, some may be too old, some may have eye problem, some may be disable. So,
I helped the customer to fill different form such as Remittance Form, Deposit Form,
Account Opening Form, and Transfer Form.

2.3 Observation gap

Theories are developed after testing the phenomena several times. This phenomenon consists
of facts and truths that have been collected from the universe. After a long research a theory is
developed and read by the knowledge seeking groups. After reading the theories, different

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people understand the same thing in different ways due to their different perceptions, ability,
intelligence and other psycho-socio factors. It is quite obvious that the facts are not understood
in the same way as they were learnt. The intern also faced this complexity while trying to
implement the theoretical knowledge into practice Socio-cultural factors, interpersonal
relationship seems to be simple in theory but in the practice maintaining interpersonal relation
ship and mixing with the society and professionals is a crucial task.

The concepts relating to customer satisfaction are easy to understand by reading books but it is
really hard to satisfy problematic customer. The practical framework has been observed
differently than the etiquettes of corporate culture The complex methodology of different
management formulae learnt from books has been easily applied in software.

Understanding customers' psychology and tackling with their grievances in the field is not as
easier as writing in books. Thus, for an efficient learning, both the theoretical and practical
exposure is the must. Both cannot be considered as standalone requisites for skill development
and cannot be compared. They are complementary terms.

2.4 Learning and experience

I had worked as an Internee in Hijra Bank for two months as per required by University. During
my Internship, there was a tremendous atmosphere in Hijra Bank. I learned so many things
from their management like how to work in a standard place. They are using their own made
software which is used by Bank for online transactions.

✓ The most important benefit of this internship is that I got practical exposure of work
place.
✓ I got practical experience of working practices related with my field.
✓ I learned that how to manage things and how to create balance among work life
✓ and personal life.
✓ These learned management practices are going to be very helpful for me while on job.
✓ Management experience from every aspect was really very much friendly
✓ During my internship I learned how to talk and behave with employees and senior
management.

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 ✓ During my internship I have seen that no extra burden given to any employee. But if
there is a need of extra work the manager always do himself (on importance basis) and
went back to home when not a single work remaining
✓ I learned that the behavioural issues are most important inside the organization.
Customers feel satisfied when they are behaved properly. The misbehaviour and the
delay in providing service adversely affect the organizational image
✓ Intern learnt that the important aspects for effective customer service includes knowing
customer's need, identifying key services activities and delivering superior service and
follow up.
✓ Lastly, the I learnt an idea and insight knowledge of work environment and organization
culture. I learnt how theories and concepts are applied in practice in the day-to-day
business operation and tackle problems and handle objection in work place The
internship program was very helpful to boost up the confidence level of the intern.

CHAPTER THREE

SUMMERY, CONCLUSION AND RECOMMENDATION

3.1 Summery

An internship is an educational plan that integrates classroom knowledge and practical work
experience in industry, 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.

Within short span of time, the I got acquainted with the general knowledge of the banks
activities. I got opportunity to know about the banking environment as well as the functioning
of the bank. Customers are the key to success; thus, they should be properly treated and
entertained. Employees are directly connected to these customers so employees must behave
in a decent and peaceful way. Personal relation is must to retain the customers. Customer
service is a series of activities designed to enhance the level of customer satisfaction.
Customer service department. provides valuable support and services to customers. Working
on the customer service. department helped me to learn various operating activities. Almost

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all the minor detail of the bank related issue can be handled through this section. The
cooperation from the staff members made the me easy to learn the different activities in very
short duration of time.

3.2 Conclusion

Everyone are studying a lot of in the class room as well as lecture hall but that full fill when
those class room and lecture hall studies going to be implemented. That is different
experience and needed experience for every one in the world. According to the curriculum I
had the great internship training in one of growing private company in Hijra Bank. Actually
now a days practical experience much needed than theoretical base studies. I spent around
two months at the company for my internship training the training gave to me such
opportunity to enhance my knowledge and skills with the practical business environment.
This hind of training much needed for every student in their life

Especially now every company give for their newly recruited people first six or three month
as training period after that they gave the appointment as permanent according to this practice
we can evaluate the vital part of the internship training Especially the department and the
faculty allowed the students to get the intern ship training as their wishes but that should be
met with their specialization and discipline of the study. In the future the faculty and each
department should consider internship training with public quoted company as well as
multinational company that will help the students more to learn and enhance the skill and
knowledge. Also the period of the internship the faculty supervisor should be visited to the
student's internship training organization that will encourage the students and monitor the
students in a proper manner.

3.3 Recommendations

It was an interesting experience to do internship at Banks Staffs are very cooperative and due
to their help intern was able to learn about modern banking I suggest that such an internship
program highly integrative for the students of management education so that student should
be enquired with the knowledge of practical world. On the basis of the above observations,
learning and tasks performed, I would like to put some suggestions, which will enable the
bank to compete with other banks more effectively and efficiently.

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▪ Now a days many banks are establishing in Ethiopia. So bank should be competent
enough to compete with them
▪ To make people aware of its services bank should use more effective promotional
tools like advertisement through F.M, T.V, and other social media etc.
▪ Today is the age of modern technology. So it must be quick in adopting new
technology in comparison to its rivals.
▪ During the intern period, most of the customers of the bank did not seem to know
about the different products of the bank such as internet banking. SMS banking and
other products that could fulfil the diversified need of the customers So, it appears
that the bank needs to focus on promoting the products and only providing new
products is not enough.
▪ During the peak hours, the Customer Service Department gets overcrowded. There is
always a long queue of people for account opening and closing Since most of the
people have problem while filling the forms, there should be a different section for
filling the forms with the assistance of staff members.

Reference

✓ From myself day to day activities(trainings),

✓ Written document of the Hijra bank ,
✓ Ask employees of Hijra Bank,
✓ Looking for official websites of Hijra Bank which is https://hijra-bank.com/ ,
https://hijra-bank.com/about-us/

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