INJIBARA

HEALTH
SCIENCE AND
BUSINESS
COLLAGE DEPARTMENT OF ACCOUNTING AND
FINANCE
INTERNSHIP INDIVIDUAL ASSIGNMENT

Name Id number
1 ABEBAW AMARE 12/570

Submission date

INJIBARA, ETHIOPIA

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 Abstract

The gole of this study is to study the financial activity of how the account
department commercial bank of Ethiopia zengena branch limited is conducted. The
main objective includes to understand the accounting concept, to keep complete
records of every financial transaction systematically and scientifically and To
present data within the help of accounting entries.

Every business transaction cause at least two change in the financial position of

business concern at the same time - hence ,both the changes must be
recorded in the book of account . Otherwise the book of
account will remain incomplete and the result ascertained
therefore will be inaccurate. The fundamental principle of
double entry system lies in analyzing these two changes
(parties) involved in business transaction and properly
recording of bothe the change in the book of account. There is
no exception to thise principle. If a complete picture of the
transaction is to be reflected through book of accounts,the
double entry system must be duly observed. Otherwise the
book of account will fail to provide complete information.

addition, the other objective is to investigate equal

participation of commercial bank of Ethiopia zengena branch
to it realize to its vision, mission, objectives and core value of
the organization. To increase student knowledge and enable
student to produce well qualified, self reliant, active , change
agent and real problem solve students .
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Acknowledgement
I am really thankful to them ,I would like to express my very great appreciation to
myAZEMRAW AYENEH for this valuable and constructive suggestion during the
planning and development of this report work his willingness to give his time so

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generously has been very much appreciated.
I would like to thanks the staff of the following organization for enabling me to visit their
office to observe their daily. I am making this report not only for marks but to also
increase my knowledge thanks again to all who helped me.
I would like to great thanks give to almightily my god he has helped me in every aspects
of my life. Next I would like to express my heartfelt gratitude to my advisor MESRET
his heart felt advice and helped me. I would also like to all commercial bank of Ethiopian
zengena branchiin workers’ am immensely grateful thanks to Ato ABEBAW
WORKNHI. Finally I would like to thanks my families and all people that assist me in
providing me helpful information for fulfillment of this internship practice paper.

Executive summary

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This report is about my internship program with commercial bank of Ethiopia zengena
branchi limited. In this comprehensive report, I have discussed about every major aspect
of the bank, which I observed and perceived during my internship program.

In this report you will find the detail about the bank right from its incorporation to the
current position. Along with it , the processes, policies and procedures of the bank are
also discussed in detail.

During my internship program, I mainly worked in Retail Banking ,General Banking and
Finance. All the departments have been discussed in detail all the policies and procedures
have been described thoroughly.

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As the main purpose of internship is to learn by working in practical
environment and to apply the knowledge acquired during the studies in
a real world scenario in order to tackle the problem using the
knowledge and skill learned during the academic process,In this report
the detailed analysis of the organization has been done and all the
financial,technical,managerial and strategic aspect have been evaluated
to analyze the current position and financial aspect of the bank.

In the end the learning and experience section consists of all the policies, processes,
practice and procedures which I have undergone through and learned during my
internship program.

Thise report also contains my perception about the employee's satisfaction, motivation
level and the working environment of the organization.

Acronyms

ATM :- Automated teller machine

POS :- Point of sale

EJ :- Electronic journal

LCY :- Local currency

FCY :- Forign currency

EBT :- Earning before tax

HR :- Human resource

CBE :- Commercial bank of Ethiopia

HSBC :- Hongkong Shanghai banking corporation

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CDS :- Certificate of deposit

SBBO :- Small bowl banctual organization

CM :- Credit memos

DM :- Debit memos

TR :- Transfer retrieve

FT :- Fund transfer

FR :- Fund retrieve

LAN :- Large area network

BIE :- Bachelor of industrial engineering

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 CHAPTER ONE

INTRODUCTION

Commercial Bank of Ethiopia (CBE) is one of the oldest public banks established in 1942
as a State Bank. Since then, CBE has gone through different reforms and mergers coming
out as one of the most reputable and biggest commercial banks in the country. it has more
than 30 million account holders in its 1500 plus branches stretching through the country it
out reaches to individual depositors small and medium scale business and private and
public mega investment project has made in the largest single bank in the country CBE
played a significant role as both as the enjoin of the country economic growth and
mobilizing saving for further investment. in its effort in being part of the solution for the
environmental degradation and its subsequent impact on individual citizens or business
CBE has the capacity to reach out to million in both increase in awareness and building
adaptive capacity through providing environing environmental friendly credit line.
Furthermore as a responsible cooperative institute, CBE has the mandate to formulate
environmental and social internal policies that reflect the current local and global climate
change realities and its subsequent impact particularly on its business customer and
partners throughout the country. The bank has around 22,908 employees who staff is
head of quarters and it’s over 1000 + branches positioned in the main cities and regional
towns. The latter include 120 branches in the national capital Addis Ababa.
CBE provides credit for working capital and explanation and facilitate of local and
international trading activities.

In the 1974 revolution commercial bank of Ethiopia got its strength by emerging with
privately owned Addis Ababa bank. Commercial Bank of Ethiopia (CBE) is one of the
oldest public banks in a State Bank. Since then, CBE has gone through different reforms
and mergers coming out as one of the most reputable and biggest commercial banks in
the country.

The commercial bank of Ethiopia which is striving to embark into world class commercial bank,

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rendering state of the art and reliable service to its millions of customers both locally and abroad.
The business strategy of the bank was focus on the stakeholders serves. The number of branches
now a day reached 500 and stretched across the length breadth of the country. CBE combines a
wide capital base with more than 10,000 talented and committed employees. In 2011 whom it
regard as it key assets from banking development. The state owned commercial bank of Ethiopia
still dominates the market in terms of asset deposit, capital and customers base and branch
network, deposit the growing competition from private bank over the last 15 years. This make it
one of the it one of the most reliable and strong commercial bank in the country and the region.
Its strong capital base above 67 years of rich experience in the market and large branch network
throughout the country on able the bank to accommodate large demand for banking service, bank
from private and public companies and to increase its overall revenue on sustainable base.
Zengena branchi is one of grade 1 branch which is found in Amhara region far from Baharidar
around 65 k.m to the north direction under the domain of Addis abeba district. All the banking
activities of the branch have been performed by clerical and non-clerical staffs. The current
Manager of this branch is Ato ABEBAW WORKNHI.

Chapter two

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 Background of the organization

2.1 vision of the organization

_ To become a world-class commercial bank by the year 2025.
_ We are committed to best realize stakeholders' needs without compromising the wellbeing of
our environment and society through Enhanced financial intermediation globally, supporting
national development priorities, deploying highly motivated, skilled and disciplined employees as
well as state-of-the-art technology.

2.2 mission of the organization

_ Under Promise and Over Deliver" - Exceeding customers and market expectations, based on
sustained business models (win-win), with highly qualified, motivated human resources and
generators of value propositions and unique solutions for our Customers.
_ The bank strongly believe with win win model to the base of success.
2.3 values of the organization
_ Quality service: - The bank committed to offer quality service to customer aspires to
brand to with quality is the mind of customer and general public.
_ working together as team - The bank workers work with through interrelated aspect of
to give service to the customer and success the bank goals and also respect diversity view
point's.
_ Innovation- The bank encourages new ideas that can improve customer experience and
the bank experience.
Corporate citizenship: -The bank abides by the law of the Ethiopia and other countries
in which it do business.
Customer Satisfaction: -The bank strives to excess in it is business and satisfy
customers.
Employees: -The bank recognizes the employees as valuable organizational resources.

2.4 objective of the organization

Commercial banks play a critical role in the country's financial system by providing :- _liquidity
through the creation of loans, access to money on deposit and the availability of revolving debt
using credit cards.
_ To develop competence with other private banks
_ To maximize profit of the bank by creating difference

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_ to provide financial services to the general public and business, ensuring economic and social
stability and sustainable growth of the economy. In this respect, credit creation is the most
significant function of commercial banks.
_ To maximize customer satisfaction

2.5 Goal of the organization

Commercial bank is that financial institution whose primary function is :-
_ To accept deposit in all denominations from the people and offers loan for the purpose of
consumption or investment.
_ About the operating principles that guide our internal conduct as well as our relationship with
our customers, partners, and shareholders.
_ Enhanced financial intermediation globally, supporting national development priorities,
deploying highly motivated, skilled and disciplined employees as well as state-of-the-art
technology.

2.6 strategies of the organization

The Commercial Bank of Ethiopia (CBE) has unveiled a new strategy aimed at increasing the
private sector's portion of its lending portfolio from 13 to 40 percent in the next five years. The
state bank, which expects to issue 100 billion birr in loans this fiscal year.
The opinions expresses here in the post "Commercial Bank of Ethiopia to implement its New
Five-year Strategy" are those of the individual’s contributor(s) and do not necessarily reflect the
views of Business Info Ethiopia, BIE Intelligence PLC, its publisher, editor, or any of its other
contributors.

2.7 major activities/function performed in the organization

The primary functions of a commercial bank are accepting deposits and also lending funds.
Deposits are savings, current, or time deposits. Also, a commercial bank lends funds to its
customers in the form of loans and advances, cash credit, overdraft and discounting of bills,
Check Payment. Remittance, Collection and Payment of Credit Instruments, Foreign Currency
Exchange, Consultancy.

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 Chapter 3

Report of internship
3.1 Branch Customer Service Practice

3.1. 1 branch opening and closing time

The branch was mainly open at 1:00 o’clock by manager branch operation and manager
branch business as well senior branch operation –cash together with manager branch
operation open vault at 1:45 and immediately distribute cash to branch banking officer
before 1:55 by signing SBBO-cash cash book register then branch banking officer start
their task or day today activity up to closing time. The branch was closed for the entrance
of our customer at 11:30 and branch banking officer send to SBBO-cash both by
physically cash for full bundle of each denominations and petty cash through system
separately after they made balance. And then manager branch operation and senior
branch banking officer –cash enter to full bundle of cash to main vault including petty
cash after they transfer and authorize through T-24 system.so the day today activities
were closed.

3.2 Opining book account

What is account opening process?
Account opening process means the by which the client submit to the bank an account
opening application from together with all information and document required for
performing client due diligence and identification in accordance with the applicable
regulation.
What is account opening document?
Identify and address proof such as a valid pass port, voter ID card, pan card, permanent
driving license, adhere card, or ID card by central or state government, schedule
commercial bank employment proof.
What is bank account book?
A pass book or bank book is a paper book to record bank or building –society transaction
on deposit account.

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Pass book is record of transaction taken place between a banker and a customer it is
called pass book as it pass between the banker and customer ,whenever transaction are
taking place it is conclusive evidence of banking transactions.
Who can open saving account?
This account can be any individual above 18 years old, who do not have officially valid
kyc(know your client )documents there are many restrictions in operation of that account
due to release kyc .account can be converted to regular saving account submission of
kyc document.
What kyc means – kyc means known your customer and sometimes know your client
Kyc check is mandatory process of identifying and verifying the client identify when
opening an account and periodically over time .in other word ,bank must make sure that
their client are genuinely who the claim to be.
Account opening process
Customer or client want to account opening book the staff member to unfold information
clients we need or capture to material. for example valid id , photo, passport size then
check –the next steep account opening applicant from together with all information then
customer crate and then scan to send center to authorize ,then final step formal correct
Accept to center .so the bank of branch we using customer ID depend on opining book .
Another way rejects reason or case the center e_ mail attaches to send the branch of bank.
then the branch of bank to see reason or caused of reject so the bank incorrect document
book convert to correct information of customers final or ending step pass register book
customer signature then deposit birr . e.g 100 birr
There are steps to open bank account
1 Decide the type of bank account you want to open
2 Approach any bank of choice and meet its bank officer
3 Fill up bank account opining from – proposal form
4 Give reference for opining your bank account
5 Submit bank account opining form and documents
Advantage of account opining book
1 Bank account offer convince: e.g online bill pay
2 Bank accounts are safe or money protection

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3 It’s an easy way to save money
4 Bank accounts can help you access credit

3.2.2 CBE Birr

CBE birr to open or provide a customer cell phone number and a customer can open more
than one account with different cell phone numbers.

Eligibility criteria
_ Account should be open by individual name
_ An individual ages greater than or equal to 18 years
_ Eligible for CBE birr service as _ long as they are able to provide cell phone numbers.
_ Required document for identification
_ One of the following valid identification cards (IDS) shall acceptable to open customer
CBE birr account. These ID can be:
_ Keble ID cards
_ Farmers association ID cards
_ Employment and pension ID cards
_ School, college and university ID cards
_ Deriver operator lichens
_ Tax identification ID cards
_ Passport or Ethiopian community ID
_ Pass port for foreigners
_ Work or residence permits
How to using CBE birr
CBE birr to open we using code *847#,then the next step old pin and “0” active select
language and then enter old pin , next step New pin the last conform pin.
CBE birr including
Welcome to CBE birr
_ Send money
_ Cash out
_ Buy air time
_ Buy goods

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_ Pay bill
_ My account etc.

3.2.3 Mobile banking

Mobile banking is very convenient in today digital age with many bank offers impressive
apps. The ability to depose a check, to pay for merchandise to transfer money to friend
or find an ATM.
Mobile banking is the act of making financial transaction on a mobile device (call phone,
tablet, etc.).
Mobile banking open we using account number.
What do I need for mobile banking?
Some banks require the customer to register for mobile banking by filling up a
registration form and submitting an identify proof with the form to a bank branch. The
customer is required to download the banks mobile banking application from the apps
store, based on the make and model of the mobile phone they use.
How does the mobile banking work?
customer to register form after send message to customer mobile with in pin code then
the next step mobile banking is to open we using code *889#then the next step old pin
next step we using activation code then the next step enter new pin and then conform
pin .
Mobile banking including: _ log in
_ pin
_ welcome to CBE mobile banking
1 My accounts: these means customer check balance
2 Transfer to CBE account: these means account to account transfer
3 Air time: these means top up mobile card
4 Transfer to CBE birr wallet
What is the difference between online banking and mobile banking?
Mobile banking is performed on using a portable device, such as a smart phone or tablet.
E.g *889#
Online banking can be carried out on any device with on internet connection or
Wi-Fi .E.g desktop or laptop computer, smart phone, tablet.

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Advantage of mobile banking
_ You can access mobile banking service from any place at any time.
_ Mobile banking reduce the need to visit banks for minuscule banking activities.
Disadvantage of mobile banking
_ Mobile app fraudulent transaction.

3.3 SWOT analysis

Swot analysis it is an identification of a given organization their own strengths,
weakness, opportunity, and threats by giving services to the customer.
3.3.1 Strength of the organization
_ Commercial bank of Ethiopia it is public
_ It give personal service e.g pay payroll system, pay bill, pay education purpose, pay
rent house, pay electricity's purpose
_ It give trainings for its employee to improve profession
- It software expertise
- Easy access to capital and finding
- Strong share of customer
- Easy to use apps
- sometimes there is big connection problem that makes customer anger
- focus on internal marketing
- Highly automated system
- Use CBE birr to prevent wastage of time
- Use ATM machine and e.t .c
3.3.2 Weakness of the organization
_ The customer are sufficient but the human resource lack
_ Lack of superior service quality
_ some workers of the bank not give service properly
_ There is no generator
_ There is no punctuality ( being on time )
_ Lack of print machines

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 _ Lack of administration system
_ There are chair and computer problem for the use of staff sits
_ Undelivered visa card increase from day to day.
-All staffs focused mainly on digital banking activities rather not consider other service
activities like deposit and withdrawal as the result the customer were overcrowded
throughout the day.
3.3.3 Opportunities of the organization
_ Expand our number of stores and give credit to the customer
_ Develop customer relationships culture
_ Commercial bank of Ethiopia koye feche branch has very large number of
customers
_ Economic growth of country
_ Attract new customers through special offers
_ The existence of opportunities to use modern technology
3.3.4 Threats of the organization
- High level of inflation
- Uncertain market conditions
- Security problem
- Infrastructural problem
_ problem of electrical power
_ most people are having less knowledge about taking loan from bank

3.4 problem observed that affect the organization at current time and
its crucial issue
We have observed the following problems for the branch;

_ All staffs focused mainly on digital banking activities rather not consider other service
activities like deposit and withdrawal as the result the customer were overcrowded
throughout the day.

_There is lack of human resource in the branch from 10 front maker windows 7s are
functional.

_ Problem of Network system

_ There is a printer problem from many printers three are functional.

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_ There are chair and computer problem for the use of staff sits

_ Undelivered visa card increase from day to day.

_ system <set up > problem and stuck

_ Network server problem
_ There are old broachers and notice papers attached at different branch walls instead of
notice board.
3.5 Suggested solution or measure to be taken solve or at least minimize the problem time
its
_ The organization should have provide a quality service for its customers to being a
good competitor in the market
_ It should full fill at the necessary material which are technically improved to facilities
its service
_ Resource consumption way should be wise and manageable
_ Establishing good maintenance system
_ Most of time problem is network happen according to this I try to see the problem and
solution by different methods
- Installing new network server and hub
- Giving maintenance to LAN network
- Correcting by head office in Addis Ababa
- Cheaking the problem happens conditions see the cables and network servers
In addition to network problem there are another problem happen same times for example
desktop troubleshooting , copy machine , computer varies attacking , banknote counter
and other to all this problem solved by Ict center department .

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 Chapter four

Summery and conclusion

4.1 Summery
A commercial bank is a financial institution that grants loans, accepts deposits, and offers
basic financial products such as savings accounts and certificates of deposit to businesses,
as opposed to a retail bank that provides similar financial products to individuals. A
commercial bank makes money primarily by providing different types of loans to
customers and charging interest.
The bank’s funds come from money deposited by the bank customers in saving accounts,
checking accounts, money market accounts, and certificates of deposit (CDs). The
depositors earn interest on their deposits with the bank. However, the interest paid to
depositors is less than the interest rate charged to borrowers. Some of the loans offered by
a commercial bank include motor vehicle loans, mortgages, business loans, and personal
loans.
In addition to this the commercial bank of Ethiopia give prominent services Employee
sales practice is very excellent especially by digital banking that means mobile banking
recruitments, visa recruitments CBE birr recruitments etc. concerned managers take
target for employees by divided all branch targets to each employees daily, weekly,
monthly, quarterly and annually. Employees have evaluated by their performance daily
base by business manager and give reward for quarterly to best performed employees.
But some employees have limitation or gaps on cross selling, up selling and money
tracing practice.

4.2 Conclusion
The Commercial Bank of Ethiopia has more than 30 million account holders who can be
entertained by a number of services. With money digitization in mind, the bank has now
more than two and a half million internet banking users as of last year. It is the first bank
to introduce modern banking to Ethiopia. It was once the leading African banks with
assets of 1.1 trillion Birr as of June 30th, 2017. It now has over 1500 branches across the
country and plays a significant role in the economic progress and development of the
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country. It is the first bank to introduce Western Union Money Transfer Services in the
country and currently working with more than twenty money transfer agents like Atlantic
International, epress Money, and Money Gram. CBE has reliable and enduring
relationships with internationally recognized banks across the world. Well-built
correspondent relationship with renowned foreign banks like Commercial Bank A.G.,
Royal Bank of Canada, City Bank, HSBC Bank, it also has a swift bilateral arrangement
with more than 700 others banks throughout the world. Act as a government
representative bank directed to the larger company working with import, and export
businesses. Commercial Bank of Ethiopia has one of the most powerful mobile banking
services, in terms of its popularity, with more than two and a half internet banking users.
Its ATM service is all around which makes it easy to withdraw money wherever you go.
Apart from that, its integration with many day-to-day providers is putting much burden
off on traditional banking. Internet, Mobile, and CBE Birr are of alike services as share
the same functionalities with the public, with minor changes and updates.
I would like to appreciate bank the branch Management and staff members to show the
direction of how to prepare internship practice by different mechanisms such as :-
- By interviewing
- By give relevant information and
- By giving the direction how to get their own general evidence from websites.
Lastly a time limitation to cover detail activities in the check list of service each and
every each.

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 Chapter five

Recommendation
The following points are recommendation about commercial bank of Ethiopia in general
way such as:-
- Bank of Ethiopia (CBE) has faced some challenges relating with e- payment service.
Among the challenges Security, Standardization, Regulatory and Legal Issues,
Infrastructure, Heavy Investment Costs, and Socio-Cultural Challenges are the serious
ones. And it affected the development of the service as expected.
- commercial bank of Ethiopian need to develop their credit risk management capacity-
the high level of provision held for poorly performing assets mainly loans and advances
is affecting the profitability of Banks. Hence, improving performance require to institute
a strong credit risk management system that can efficiently identify bankable borrowers
and a system that can monitor their performance after the loan is granted. In addition, the
regulatory framework should support and make sure banks to have strong credit risk
management practice. This can be done though strengthening the internal risk
management system to assist the identification, measurement and monitoring of credit
risk as well as directing the supervision focus towards credit risk. Income diversification
should also get focus- The share of income from foreign operation in the form of service
charge is found to be one of key drivers of the performance of commercial bank of
Ethiopian. Hence, banks should divert their attention towards maintaining the proper mix
of non-interest bearing assets which can generate fee incomes and their loan exposures.
The focus to introduce fee based services which are less exposed to credit risk should be
one of the areas that Ethiopian banks need to work for in the future if they need to sustain
their profitability performance.
-There should also be control over overhead costs- the share of overhead costs (non-
interest expense) in the total expense appears to be a significant determinant factor of
performance. Therefore Banks should engage themselves in cost control activities like
introducing technology based banking services and limiting excessive branch expansions
which potentially reduce costs via reducing the number of staff to be employed and the
branch opening costs. This should however be done without compromising the future

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growth motives of banks.
I recommended the branch to improve with the following points in koye feche branch in
specific way such as:-

-all staffs focused on the day to day activities for all CBE products like cross selling, up
selling, money tracking, customer base, digital banking and customer service experience.

-As much as possible by communicating district HR the branch should be increased

additional human resource.

-By communicating the concerned district organs branch should be fulfilling printer,
computer, and chair etc. problems

-The branch should be assigned staffs to deliver the customer for delivering visa cards

-The branch should be avoiding old broachers and they were found in different branch
walls.

There are sufficient customer so due to these additional window is necessary.

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