ARBA MINCH UNIVERSITY COLLEGE OF AGRICULTURAL

SCIENCES DEPARTMENT OF RDAE PROGRAM OF AGRO

ECONOMICS

TITLE:- INTERNSHIP REPORT ON COMMERCIAL BANK OF

ETHIOPIA (CBE)

COURSE: PRACTICAL ATTACHEMENT

NAME: LEMLEM MARKOS

ID NO: NSR/2424/14
ACNOLEGMENT

I would like to express my gratitude towards commercial bank of Ethiopia Bedesa branch
all staff members for their kind cooperation and encouragement which help me in
completion of this practical attachment.
Table of Contents
ACNOLEGMENT...................................................................................................................................................2
ABSTRACT.............................................................................................................................................................3
LIST OF ABREVATION........................................................................................................................................4
CHAPTER ONE......................................................................................................................................................5
1.1 Historical Background of the commercial Bank of Ethiopia.........................................................................5
1.2 Mission, Values and Vision of the Commercial Bank of Ethiopia................................................................5
VISION...........................................................................................................................................................5
MISSION.........................................................................................................................................................5
CORE VALUES..............................................................................................................................................5
1.3. Objectives of CBE........................................................................................................................................6
1.4 The Governance and organizational structure of CBE..................................................................................8
1.5 Action Taken by the Bank to realize its Visions & Mission and the Performance of the bank in relation to
its objectives........................................................................................................................................................9
1.6 Strength, Weakness, Opportunity and Treat (SWOT) Analysis of the CBE...............................................11
1.7 Challenges & Problems of CBE..................................................................................................................12
CHAPTER TWO...................................................................................................................................................15
Methods on how the exercise carried out..........................................................................................................15
2.1 The responsibilities and major activities me as a member of department...............................................15
2.2 Performance Evaluation of my activities.....................................................................................................15
2.3 Challenges and Problems encountered on the job and remedial measures..................................................15
2.3 Problem of division or department and suggested solutions...................................................................16
2.4 Discussion based on the observation and data collection............................................................................17
CHAPTER THREE................................................................................................................................................19
ATTACHMENT EVALUATION.....................................................................................................................19
Objectives of Practical attachment....................................................................................................................19
General objectives.........................................................................................................................................19
Specific objectives:........................................................................................................................................19
3.1 Significance of Practical Attachment..........................................................................................................20
3.2 Relevance of Practical Attachment to my studies.......................................................................................20
3.3 Applicability of theories and others in class on Practical Work..................................................................20
3.4 Major Challenges and Problems that I faced during Practical Attachment.................................................21
Summary................................................................................................................................................................22
Conclusion..............................................................................................................................................................23
Recommendation....................................................................................................................................................24
References..............................................................................................................................................................25
ABSTRACT
Generally, the objective of this practical attachment is to assess the performance of
commercial bank of Ethiopia at wolait, Bedesa branch. The extent to which realizing its
vision and mission and performance of the organization in relation to its objectives. The
intention of this practical attachment was 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
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 we
were performing this practical attachment. Thus, practical attachment suggests solutions
and some of policy implication toward reducing the problems based on finding.
LIST OF ABREVATION

ATM- Automated teller machine

CBE- Commercial Bank of Ethiopia

CSO- Customer service officer

CSM- Customer service management

SWIFT- Society for Worldwide Interbank Financial Telecommunication

HSBC Hong Kong and Shanghai Banking Corporation

CHAPTER ONE
1.1 Historical Background of the commercial Bank of Ethiopia
The history of Commercial Bank of Ethiopia (CBE) dates back to the establishment of the
State Bank of Ethiopia in 1942. CBE was legally established as a share company in 1963.
Since then, it has been playing significant roles in the development of the country. Currently
CBE has more than 40+ million account holders in its more than 1940+ branches and the
number of Mobile and Internet Banking users also reached more than 6.6 million and 37k.
Active ATM card holders reached more than 8.3 million and 17 million CBE Birr users.

1.2 Mission, Values and Vision of the Commercial Bank of Ethiopia

VISION
To become a world-class commercial bank financially driving Ethiopia's future..

MISSION
“We are committed to realizing stakeholder’s value through enhanced financial
intermediation globally, deploying highly motivated and skilled employees.”

CORE VALUES
Our core values detailed below are the operating principles that guide our internal conduct as
well as our relationship with our customers, partners, and shareholders.

Integrity

 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

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

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
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

Teamwork and collaboration

 we recognize the importance of teamwork for our success

 we support one another and work co-operatively

Public trust

 we understand that the sustainability of our business depends on our ability to

maintain and buildup public confidence

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

Decentralization

 we are committed to delegate operations and decision-making responsibilities

 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.

1.3. Objectives of CBE

1.3.1 General objectives

 To contribute to the general economic development efforts of nation

 Enhance growing market share
 Expanding the bank’s capital base
 Provide differentiated, varied and value added banking services ,
  Maximizing profitability through increased efficiency

1.3.2 Specific objectives

 Protect the interest of the bank against any harmful cause, internal and external.

 Protect the employees against unfair exploitation of labor and improper

utilization of effort and skills.

 Support the members during the time of financial distress and unlawful
eviction or dismissal from job.

 Promote the meet customer satisfaction via employee’s satisfaction.

 Raise awareness on right and duties of employees in line with existing

national laws, international labor conventions and human resource
principles.

 Promote to establish and enhance network communication with local and

international unions and federations
1.4 The Governance and organizational structure of CBE
All departments in this organization are related to each other. The other department can
control the activity of other. Also on their daily activities they must report to the body which
controls each department. 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.
1.4.1 The manager

Plan, manage and coordinate the overall branch banking activities;

 Work towards enhancing Branch competitive position; Review, consolidate,

recommend and forward Branch budget proposal to District Director;

 Perform regular assessment on all branch related work practices and propose
improvement alternatives;

 Set team objectives, goals and performance standards and facilitate team
alignment and goal cascading;

 Ensure compliance of Branch performers with rules, regulations, and standards of

service

1.4.2 The business manager

 Facilitate the provision of efficient and high quality service to customers;

 Prepare and implement periodic job rotation plan for the staff under his/her
supervision;

 Ensures that the standard service delivery time is meet and properly handle the
customer’s request;

1.4.3 The operation manager

 Supervise the operational activities (GL balancing, cash operations, bulk

transaction processing, archiving and logistics) in the Branch;

 Develop periodic operational plan for the branch’s back office team;

 Maintain and monitor standard operational service delivery time;

1.5 Action Taken by the Bank to realize its Visions & Mission and the
Performance of the bank in relation to its objectives
Currently, commercial bank of Ethiopia goes various steps to realize its goals and objectives.
It has been opening various branches across the country and launching various products &
services to meet the dynamic needs of the society.
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:-

 Competency gap analysis, training need assessment conducted ;

 Competency directory and a training curriculum developed;

 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

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:-

 It creates intensive awareness throughout the country to bring non-banked society to

bank and to mobilize resources.

 It uses prize linked saving promotion

  Higher interest rate for targeted societies such as Women, Youth teen and student than
ordinary saving interest rate.

 Intensive promotion by using various channels such as TV, Radio, Browsers, etc…
about the products & services of the bank.

1.6 Strength, Weakness, Opportunity and Treat (SWOT) Analysis of the 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:-

1.6.1 Strength of CBE

 Secure and reliable services tailored to meet customers’ needs;

 It gives priority to public interest ;

 Over 60,000 committed, skilled and experienced employees

 Strong management-it can help CBE reach its potential by utilizing strengths
and eliminating weakness;

 Decentralized working environment

 Innovative Culture: it helps CBE to produce unique products and services that
meet their customers need ;

 Size advantages: it lowers CBE’s risk’s, the larger CBE gets, the more
resources they have to pursue new markets and defend themselves;

 Economies of Scale: it is the cost advantages that CBE obtains due to size, the
greater the volume, the greater the advantages;

 Technology: superior technology allows CBE to better meet the needs of their
customer’s in ways that competitors can’t imitate;

 Customer loyalty
1.6.2 Weakness

 competitive market

 investment in research & development

 low salary compared with many private bank

 presence of offline branches

1.6.3 Opportunities

 income level is at a constant increase

 Population growth

 New products and Services:-

 growing economy

 New Technology

 Vision to become World Class Commercial Bank in 2025

1.6.4 Threats

 increase in labor costs

 growing competition

 external business risks

1.7 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

 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.

 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:-

 Low telecommunication infrastructure-absence of modern telecommunication

infrastructure especially in peripheral part of the country hinders the bank to 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.

 Lack of road’s creates rural society not to use bank

 Frequent Electric power Failure

 Lack of awareness on the bank products and services by the society- even though
the number of customers that used bank increased periodically, majority of the society
of our country has no awareness on bank products and services.
 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 2026 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
remained potent and is in the lead in terms of assets, deposits, capital, and customer’s base.
CHAPTER TWO
Methods on how the exercise carried out
2.1 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 Bedesa branch.

● I opened account for more than 20 customers by supporting employees

● I check the name, date and signature of the customer to be filled properly.

● 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.

● Protecting the office resource from damage.

● I gave different service for department and customers.

● I fill different forms by helping customers.

2.2 Performance Evaluation of my activities

From the first day that I have started practical work on Customer service department;

● I could understand how to deliver bank service to customers.

● I could understand the different type of communications in the organization at all.

● I have good communication with others at work place.

● To ask necessary data I could communicate with my manager from time to time etc…

2.3 Challenges and Problems encountered on the job and remedial

measures
As I am new for the job I have faced various challenges during the practical work. Some of
the problems that encountered me during the practical work time are summarized below:-

i. Low knowledge about the office manner of the bank: - at the beginning time of the
practical work I have a little knowledge of the manner of the bank like wearing &
working time.
 ii. Low knowledge about the work flow/process of the bank

iii. Low knowledge about the function of office materials/equipment

iv. Low knowledge about the rules & directives of the bank

v. Low skills about the customer handling of the branch

In order to overcome the above problems I was took various actions. Some of the actions that
I took to overcome the challenges are:-

 By reading and understanding various documents like various Memo and Manuals
related with the bank workflow/process.

 By asking senior staffs and manager / supervisory about the workflow, office manner,
and related issues

 By reading various books and materials from other sources

 Induction from manager/supervisor about the workflow, office manner and customer
handling.

2.3 Problem of division or department and suggested solutions

2.3.1 Problems of division or department

■ There is a big internet connection problem or network problem.

■ 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.

2.3.2 Suggested solutions for the problems

■ 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

■ The office should have hire authors employees as additional.

2.4 Discussion based on the observation and data collection
2.4.1 Background of the department/division where I worked

The commercial bank of Ethiopia (CBE) Bedesa was located on East wolaita sodo district
that was founds in the SNNP regional state in Wolaita Zone, Damot weyda woreda. And the
bank was established during the year 2011 g.c. During the year of establishment the CBE
Bedesa branch started by (13) employees, including the branch manager, now the branch has
more than 22 employees.

The CBE Bedesa branch employees are performing their activities effectively and honestly.
Customer service officer department is one of the sectors of commercial bank of Ethiopia
Bedesa 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.

2.4.2 Objectives and major responsibilities as well as activities of the department or

division.

Objective of the department.

● To ensure standardization and uniformity in the customer service process.

● To smoothly implement integrated banking solutions in 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

 To provide efficient and quality service to its customers.

2.4.3 Objective and major responsibilities as well as activities of the department

/division

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 no 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 and work shop account.

2. Duties related to customer service

 Opening account
 Pay cash& receive cash

3. Telegram – that means send outgoing message and receive incoming message from other
branch.
CHAPTER THREE
ATTACHMENT EVALUATION
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.

Objectives of Practical attachment

General objectives:

 To apply the knowledge and skill we have acquired on campus in a

real-life work situation.

Specific objectives:
 To narrow the gap between theoretical knowledge and practical
skills related with my study.
 To develop decision making skills, critical thinking skills,
increased confidence and self-esteem.
 To improve employability skills
3.1 Significance of Practical Attachment
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;

 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.

3.2 Relevance of Practical Attachment to my studies

I have acquired a lot of benefits from practical attachment to my studies. Some of the
relevance’s of practical attachment are stated below:-

 Many operational part of the bank are related with theoretical knowledge that I
acquired from my study, so it enables me to develop my theoretical knowledge with
practical skill.

 It helps me to apply knowledge I gained in the classroom.

 Practical work enables me to narrow the gap between theoretical knowledge and
practical skills related with my study.

 It enhances learning and understanding of issues relevant to a particular area of study.

3.3 Applicability of theories and others in class on Practical Work

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 behavior used to know customers behavior.

 Civic and ethical education used to respect bank rules and regulations.

Example: punctuality

3.4 Major Challenges and Problems that I faced during Practical Attachment
There are a lot of problems that I faced during my practical attachment.

I. Time constraint- the duration is not enough to cover all work processes.

II. Budget constraint- there is no budget given from the university

III. The linkage between university and the organization that I conducted practical
attachment is not strong

In order to overcome the above problems the following action should be considered:-

 The practical work duration should be increases

 The university should give budget for practical attachment

 The university should be actively involved in assisting students in getting

organizations where they conduct their attachment
Summary
The main objectives of this practical attachment was to give students the opportunity to apply
the knowledge and skills they have acquired on campus in a real-life work situation, to
expose students to a work environment, common practices, employment opportunities and
work ethics in their relevant field, to strength linkages between university and employers, and
to identify challenges and problems that students will face on the job after they complete their
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 Bedesa 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 Bedesa branch.
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 challenges 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.
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.

 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.
References

 Some oral information from employees

 Information from written documents of organization

 Direct information from the supervisor of the organization

 From employees of organization

 Some from daily activities