COLLAGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF ECONOMICS
SUMMER PRACTICAL ATTACHMENT REPORT ON
COMMERCIAL BANK OF ETHIOPIA BUBA BRANCH

NAME ID NO

MELAKU BELETE……………………SSAD/219/13

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Table of Contents
Acknowledgement..................................................................................................................................iii
ABSTRACT...........................................................................................................................................iv
LIST OF ACRONYMS...........................................................................................................................v
CHAPTER ONE.....................................................................................................................................1
1.1 Back ground of the organization........................................................................................

1.1.2Vision of the organization.....................................................................................................2

1.1.3 Mission of the organization..................................................................................................2
1.1.4 values of the organization....................................................................................................2
1.1.5 Objective of the organization...............................................................................................2
1.2 Organizational Structure....................................................................................................

1.3 The extent to which the organization is realizing its visions and missions and
performance of the organization in relation to its objectives.................................................

1.3.1 Strength, weakness, opportunity and threat (SWOT) analysis of the organization........4
1.4 Strength of the organization................................................................................................

1.4.1 Weakness of the organization..............................................................................................4

1.4.2 opportunity of the organization...........................................................................................4
1.4.3 threat of the organization.....................................................................................................4
1.5 current problems observed that affect commercial bank of Ethiopia buba branch.....

1.6 suggested solution(measure)taken to solve or at least minimize problems.....................

CHAPTER TWO....................................................................................................................................6
PART TWO ACTIVITY REPORT.........................................................................................................6
2.BACK GROUND OF CUSTOMER ACCOUNT AND TRANSACTION SERVICE
DEPARTMENT......................................................................................................................................6
2.1 Objectives and major responsibilities as well as activities of the department or
division........................................................................................................................................

2.1.1 Objective of the department................................................................................................6

2.2 Major duties and responsibilities of the department........................................................
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 2.3 The responsibilities and major activities me as a member of department.....................

2.4 Performance Evaluation of my activities...........................................................................

2.5 Problems encountered on the job and remedial measures...............................................

2.6Problem division or department or suggested solutions....................................................

CHAPTER THREE.................................................................................................................................9
PART THREE ATTACHMENT EVALUATION..................................................................................9
3. RATIONALES OF PRACTICAL ATTACHMENT...........................................................................9
3.1 Significance of practical attachment..................................................................................

3.2 Relevance of organization with my study..........................................................................

3.3 Applicability of the theories and other in class on the real world or practical work
environment................................................................................................................................

3.4 Major problems that I faced during the attachment......................................................10

3.5 Suggested solution and way forward for attachment.....................................................10

CHAPTER FOUR.................................................................................................................................11
4. CONCLUSION AND RECOMMENDATION.................................................................................11
4.1 Conclusion...........................................................................................................................11

4.2 Recommendation................................................................................................................11

4.3Reference.........................................................................................................................................13

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Acknowledgement

First of all, my deepest thanks go to the Almighty God for his endless help and make me to
stay in life to this day and enables me to complete my internship. I also would like to express

my deepest gratitude to Mr. Tesfaye Kemsi (manager) for her enthusiastic support from the
preparation until the final discussion of this internship with frequent follow up my activities
and guide me.

I am greatly thanks for my family they had been assisted my schooling life and to give advice
how can I goes with my planning activity to finish my academic schooling in this university.

Finally, I would like to acknowledge all individual and institutions that have helped me
materially and morally during the preparation of this paper.

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ABSTRACT
Generally, the objective of this practical attachment is to assess the buba branch commercial
bank of Ethiopia on to performance measurement. The extent to which buba commercial bank
is realizing its visions and missions and performances of the organization in relation to its
objectives.

To increase student’s knowledge and enable student to compare what have learnt so far in
class and what have experienced in summer practical. 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 buba commercial bank
with other bank to it realizes to its visions, mission and objective. Not only limited to this but
also emphasis the problems faced by student while performing summer practical attachment.
Thus, practical attachment suggests solutions and some of policy implication toward reducing
the problems based on finding.

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 LIST OF ACRONYMS

CBE-Commercial Bank of Ethiopia

HRM-Human Resources Management

FP-Financial Performance

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 CHAPTER ONE
1. INTRODUCTION

Part one organizational report

1.1 Back ground of the organization
The service of banking was started many years ago in Ethiopia. It dates back to the establishment
of the bank of Abyssinia in1906.
After the Ethiopia victory over fascist Italy the state bank of Ethiopia established by proclamation
issued in august 1942. Although the intension was to establish issued it as fully fledged
commercial bank, a year later in 1943 it was given additional central banking function until it was
splinted in 1963 commercial bank of Ethiopia and national bank of Ethiopia.
Commercial bank of Ethiopia was legally reestablished in 1963. It is the leading bank in Ethiopia
to introduce modern banking system. Commercial bank of Ethiopia is 100% government owned. It
is also leading bank in Africa within asset of 158.11billion as June of 13, 2013. The bank places a
catalytic role in economic progress in development of the country. Currently commercial bank of
Ethiopia has more than 35million account holders it is pioneer to introduce western union money
transfer service in early 2015s. In currently work is other 20money transfer agent like money gram,
Atlantic international, x-press money and so, on. It has more than 1833 branches stretched across
the country as June of 30, 2015.
buba branch one of the new branches of commercial bank of Ethiopia. It has been established in
1984. It was located chancho town. Commercial bank of Ethiopia buba branch started working
within few employees but, currently there are 52 employees as June of 2015 and 12813 customers.

In general, by adopting or accepting different modern working technical commercial bank of Ethiopia
in buba branch tries to achieve it is vision, mission and to bring desire economic development in the
country.

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CARDINAL ISSUES (Mission, Values, vision and objective)

1.1.2Vision of the organization

 To become world class commercial bank by the year 2025.

1.1.3 Mission of the organization

 The bank committed to best realize stock holders need through enhanced financial inter
mediation in global and supporting national development priorities by developing highly
motivated, skilled and disciplined employees as well as the state of the art technology.

 The bank strongly believes that winning the public confidence is the basis of it is success.

1.1.4 values of the organization

 Corporate citizenship: -The bank abides by the law of the Ethiopia and other
countries in which it does business.
 Customer Satisfaction: -The bank strives to excess in it is business and satisfy
customers.
 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.
 Innovation: -The bank encourages new ideas that can improve customer experience
and the banks experience.
 Team work: - The bank recognizes the importance of team work for the bank success
and also respects diversity of view point.
 Integrity: - The bank committed to the highest ideal honor and integrity
 Employees: -The bank recognizes the employees as valuable organizational resources.
 Public confidence: -The bank understands that the sustainability of bank business
bank it depends on its ability to maintain and build up public confidence.

1.1.5 Objective of the organization

Every organization is established for their own objectives. To achieve they have to work
hard and follow up effectively.

Commercial bank of Ethiopia buba branch has the following objectives.

 To implement management information system

 To develop competence with other private banks
 To build change for all bank staffs
 To deposit mobilization service
 To enhance and facilitate the development of the country

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 To maximize profit of the bank by creating difference
 1.2 Organizational Structure
Organizational structure is the most important part for office to achieve its objectives and
mission

BRANCH

A/SENIOR CUSTOMER
SENIOR BRANCH CONTROLER CHIEF CASHIER
SERVICE

CUSTOMER
BRANCH CONTROLER SERVICE MANAGER ACCOUNTANT

CUSTOMER
SERVICE OFFICER

FOREIGN

 How the organization is organized to achieve objectives and mission?

All departments in this organization are related to each other. The other department can control the
activity of other. Also, they control each other to minimize the problem on job, to be fair and
acceptable by every department. To achieve the objective and vision they obey responsibility for the
job given to all departments. Let we see to how they control each other;

The customer service officer reports the daily activity to the A/senior customer service officer. Also
pass all physical tickets done on transaction daily to the branch controller to ensure their activity by
comparing the recorded transaction on the system. A/senior customer service reports his or her activity
to the customer service manager. Customer service manager reports to branch manager. Branch
controller passes all tickets to senior branch controller after ensured the balance on physical counted
tickets and on system became equal. Then senior branch controller again check and report to branch
manager. So finally all activity in bank is controlled by the manager of the bank.

1.3 The extent to which the organization is realizing its visions and missions
and performance of the organization in relation to its objectives.
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The commercial bank of Ethiopia buba branch was well organized to realize its cardinal
issues. It improves banking service from time to time and innovate new technology to give
satisfaction for customer.

1.3.1 Strength, weakness, opportunity and threat (SWOT) analysis

of the organization
The commercial bank of Ethiopia buba branch is governmental organization has its strength and
weakness side there are also have good opportunities and threats that speed up and retard the bank over
all work process respectively.

1.4 Strength of the organization

 Strong corporation between management and employees
 By innovating new technology increase its profitability from time to time
 The organization makes good relationship with other local banks and 50
foreign banks.
 The bank has qualified and experienced management who done the activity of
the bank very well.

1.4.1 Weakness of the organization

 Weak information and file management of some workers
 Sometimes there is big connection problem that makes customer angry
 There is some inefficiency material like chair tables and computers for trailing
staffs

1.4.2 opportunity of the organization

 The commercial bank of Ethiopia buba branch have very large number of
customers and big market opportunity because of its found near to Merkato
market center
 The development of infrastructure and investment in the country play great role
for the bank.

1.4.3 threat of the organization

If the organization follows the current organizational structure for the future may face the
following challenges.

 Volatility of currency
 Poor credit culture and know how about banking and its service within the society
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  Spread of HIVAIDS and other vector disease decrease the number customer of the
bank
 Some new and revised regulation of the National bank of Ethiopia or government.

1.5 current problems observed that affect commercial bank of Ethiopia

buba branch
 The primary problem regarding the historical back ground of the organization. This
problem rises due to lack of organized and return document in the organization
 High competition from aggressive expansion of private financial institution
 Wastage of resource like use telephone line for personal call repeatedly
 Inefficiency of office materials like computers, furniture and others when
compared to the number of customers

1.6 suggested solution(measure)taken to solve or at least minimize problems

The possible solution I suggested for such problems are the following.

 The organization appraisal system should be based on efficiency and effectiveness

that means
Resource consumption way should be wise and manageable.
 To solve the problem a lack of data about historical back ground of the
organization, I gather some information from head office and try to document with
the help of my supervisor.

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 CHAPTER TWO

PART TWO ACTIVITY REPORT

2.BACK GROUND OF CUSTOMER ACCOUNT AND TRANSACTION

SERVICE DEPARTMENT
Customer account and transaction service department is one of the sectors of commercial bank of
Ethiopia buba 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.

2.1 Objectives and major responsibilities as well as activities of the

department or division.
2.1.1 Objective of the department
 To smoothly implement integrated banking solutions in retail banking operation of
customer service process.
 To have single source of reference to perform.
 To determine duties and responsibilities that each employee at all level in the customer
service process.

2.2 Major duties and responsibilities of the department

1) Account opening: - there are many types of accounts those are:-

 Saving account – is interest bearing deposit opened by legal and physical persons,
organization and association.
 Demand deposit account – shall mean an interest bearing account opened only by
customers who are literate.
 Special demand account – means a non interest bearing account that is opened to full fill
the request of customer who for one not wants interest for their deposit.
 Fixed time deposits – a type of account deposit is received at certain period of time
without movement a minimum of three month and attracts higher interest rate than others.
 Earmarked account – means account opened with other description after the name of the
account holders such as club, business n and work shop account.

2) Duties related to cash

 Cash withdrawal
 Cash deposit

3) Telegram – that means send outgoing message and receive incoming message from other branch.

4) Handling foreign exchange – exchange of other currency into birr.

5) checker activities – means checking daily tickets which are filled and written manually, by

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comparing the information and balance existing in the computer system.
2.3 The responsibilities and major activities me as a member of department
As department member I also have the responsibilities of performing the activities of the department.
Based on those general activities, I perform the following specific activities as an apprentice, when I
was participating at commercial bank of Ethiopia buba branch.

 I opened account for more than 50 customers by supporting employees

 I participated in different writing and typing activities that help for customer service.
 I accomplish a given work punctual and honestly by obeying the rules and regulation of the
organization.
 I gave different service for department and customers.

2.4 Performance Evaluation of my activities

From the first day that I have started practical work on foreign transaction department;

 I could understand how transaction is made

 I could understand the difference between domestic and foreign transaction

2.5 Problems encountered on the job and remedial measures

There are some problems which affect me on my activities of 45 days. Some of these problems are
from the organization and some are from customers. As organization some the problems are lack of
seats, lack of user (access) for me and others are the problem of light and network those hinder my
activities to not serve customer properly. From customers some customers don’t care about criteria’s to
be fulfilled properly rather than looking only about the service.

- Some of them don’t sign on the ticket and some signature on the ticket and on the book are different

- No correct order of sender name which is difficult to serve customer

- Some of them bring incorrect account which the system is not read

Remedial solution I have taken

- By using the user of my friend, I have done my activities with my friend

- Through customer I have told to them to fill criteria properly

- I have told to branch manager to find solution how customers fill all criteria

2.6Problem division or department or suggested solutions

The major problems that face the department are the following:
 There is big connection or network problem, specially the first two weeks I started my
practical attachment.
 There is inefficiency of some materials like chair, table and so on.
 Some workers have problems on their behavior and didn’t give proper service to customer.

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 Asking concerned body to get enough networks that help to provide proper service for
customer.
 To solve the problems of inefficiency of materials by asking additional budget for the
department and purchasing this materials and make available for the department.

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 CHAPTER THREE

PART THREE ATTACHMENT EVALUATION

3. RATIONALES OF PRACTICAL ATTACHMENT

Rationales of the practical attachment are the practical reason to decide how to act on the attachments
some of the following listed is reason of practical attachment.

- It is for that the apprentice should compare and contrast the economic thought with practical work

- It is for that the apprentice to check the relation he/she has with others on work etc.

3.1 Significance of practical attachment

Since the main objective of this practical attachment course is producing qualified, confident and
competent students, it has the following major significances.

 It will minimize training cost incurred by employers

 Benefiting university in such a way that can produce well trend man power, gathering
information for problem solving researches

3.2 Relevance of organization with my study

From starting date of my practical attachment as the general with the branch and particularly with the
department there is good connection with my study in foreign remittance transaction. Theoretically
since I have studied about foreign remittance in class and in my practical study how to make
transaction of that remittance this organization is relevant with my practical study. In other way as
general as organization there is also good connection with my study that for that foreign transaction is
the department of the organization and my study is related with it that has relation with Economics
again the organization and my study have good connection.

3.3 Applicability of the theories and other in class on the real world or practical
work environment
Applicability of theories in practical work environment is very interesting and important. In
economics field there are many theories that applied on real world. Some theories which are
applicable when I conduct this practical attachment are the following.

 The theories of principle accounting used to prepare workers payroll

 The theories of international trade used to show exchange of currency.
 From English point of view we can get how to write report correctly and fluently.

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3.4 Major problems that I faced during the attachment
I faced many problems, during I work this practical attachment the major ones are mentioned
as follow as: -

 The transportation system is very crowded, because of this it is difficult to me reach work
place on time.
 Shortage of some extra or additional working materials like chair and computers for trainers.

3.5 Suggested solution and way forward for attachment

The problem mentioned above are solved by:-

 To solve transportation problem I try to wake up early

 The organization should have to buy additional materials like chair and computers that help for
training

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 CHAPTER FOUR
4. CONCLUSION AND RECOMMENDATION
4.1 Conclusion
This practical attachment contains information, include introduction, background of the
organization, cardinal issues, goals of the organization, organization’s structure, etc. It covers
background of commercial bank buba branch. The office is standing for promoting gender
mainstreaming, women empowerment and respecting women and child right. Working toward
elimination of discrimination and violence against women and child

I observed some issues like the professional status of the staff members, punctuality of the
staff members and gender in the organization.

Generally, I gained some experience due to this practical attachment such as how to work in
cooperation with other, etc. The main problem I found,society have low information about
banking system,negative attitude of society toward the term bank and department. Lack of
information and lack of enough time are other problems; however, I tried to do my best in
order to overcome or give related solution to those challenges.

4.2 Recommendation
While doing my practical attachment, I observe some issue of my eyes. Therefore, I would
like to suggest on some issues that I observed during accomplish my practical attachment in
buba district at commercial bank of buba. Firstly, I would like to suggest on the effort of the
office toward promoting development of bank system study area. Banking system is the
process of treating every banking activity and is also way creating relationship with customer.
It is the development issues that recognize the involvement of both man and women in
development process.

However, the office is lag behind in order to promote growth which is the backbone of
development. This is due to lack of enough information in the organization which play a great
role in order to meet its objective. The organization needs to change this situation by looking
for bank expert which play a great role in order to promote banking system.

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Finally, I would like to suggest to Commercial Bank of buba have to work properly to achieve
their goals and also to address other problems by working in cooperation with other
organization, especially non-governmental organization.

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Reference
 The annual report of the company by the march 31 of 2015
 The website of the organization; www.combank.et, http//www.CBE
service /PROD/Browser Service/.
 The interview; information from the employers of the organization.
 The daily and weekly activities.

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