BLUE NILE COLLAGE

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF ACCOUNTING AND FINANCE

PRACTICAL ATTACHEMENT REPORT ON COMMERCIAL BANK OF

ETHIOPIA ABAY MADO BRANCH

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Advisor name: Amsalu
STUDENT NAME:ID NO

1. KINDALEM ALEHEGN................................492/13
ACKNOWLEDGEMENT

First of all my deepest thanks goes to the almighty God for his endless help and make me to stay
in life to this day and enable me to complete my report. I am grateful to my family due to their
support by any means like transportation and other need. My deepest gratitude goes to MR. for
his enthusiastic support from the preparation until the final discussion of this organizationwith
frequent follow up my activity and guide me. . Finally I would like to acknowledge all individual
and institution that have helped me materially and morally during the preparation of this report.

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EXCUTIVE SUMMARY

Generally the objective of this practical attachment is to assess the abaymadobranch commercial
bank of Ethiopia on the performance measurement. This report paper reflects about the
commercial bank of Ethiopia inabay mado branch it employees, organizational structure, its
policy, rule and regulation. This practical attachment is prepared based on the information that
collected from the commercial bank is realizing its vision and mission and performance of the
organization in reaction to its objective. In addition the other objective is to investigate equal
participation of abaymadocommercial bank with other bank to it realize to its vision, mission and
objective. Not only limited to this but also emphasize the problem faced by student while
performing summer practical attachment. Thus practical attachment suggests solution and some
of policy implication towards reducing the problem based on findings.

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. Acknowledgement……………………………………………………………………..l
Executive summary…………………………………………l
Table of content
chapter one
1. Overview of the organization……………………………………………………..
1.1 Brief history……………………………………………………………………………
1.2 Introduction /backgraundof the organization…………………
1.3 Policy of the organization……………………………………………………….
1.4 Competitors and any other important issues………………………….
chapter two
2. About the organization……………………………………………………………….
2.1 Organizational hierarchy chart……………………………………………….
2.2 Number of employees……………………………………………………………
2.3 Main office…………………………………………………………………………….
2.4 Introduction of all the departments……………………………………….
2.5 Comments on the organizational structure…………………………….
chapter three
3 Plan of the organizationprogram…………………………………………………
3.1 Brief introduction of the branch……………………………………………..
3.2 Starting and ending dates of my internship…………………………..
3.3 Name of the departments in which I got trained………………
chapter four
4 Reflection the organization program…………………………………………….
4.1 Efficiency ,Effectiveness and SOWT analysis
5. Conclusion…………………………………………………………………………………….
6 Recommendation………………………………………………………………………..
7 . Reference and source…………………………………………………………………..

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CHAPTER ONE. Overview of The Organization

1.1 Brief history

One of the predominant bank operating in Ethiopia is 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. Commercial bank of Ethiopia was legally established as a share company in
1963. In 1974 commercial bank of Ethiopia merged with the privately owned by Addis Ababa
bank. Since then, it has been playing significant roles in the development of the country.
Currently CBE has more than 35 million account holders who can be entertained by number of
services. CBE is the first bank to introduce modern banking to Ethiopia. It was once the leading
Africa banks with asset of 485.7 billion birr as of June 30 th,2017.it now has over 1500 branches
across the country and play a significant role in the Economic progress and development of the
country . with money digitization in mind the bank, the bank has now more than two and half
million internet banking users as the last year. It has also more than 1824 branches and the
number of mobile and internet banking users also reached more than 5.5 million as of June 30,
2022, active ATM cardholders reached more than 7.7 million.

Commercial bank of Ethiopia abaymado branch is one of commercial bank of Ethiopia branch
that established ....................................................

1.2 Introduction/back ground of the organization

Commercial bank of Ethiopia is the first bank in Ethiopia to introduce ATM users for local users.
Commercial bank of Ethiopia is also pioneer to introduce western union money transfer service
early 1990 and currently working with in other 20 money transfer agents like express money,
money gram, dahabshen etc, the bank has strong relationship with 50 renowned foreign banks
and has swift bilateral arrangement with more than 700 other banks across the world.

Vision, Mission Value and objectives of commercial bank of Ethiopia

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Mission

The bank highly committed to best realize stakeholder value through enhanced financial
intimidation globally owned and supporting national development priority by developing highly
motivated, skilled and disciplined employee as well as state of the art technology. We strongly
believe that winning public confidence is the basis of our success.

. Vision

To become world class commercial bank by the year 2025

1.3 Policies of commercial bank of Ethiopia

There are different kinds of policies of the organization among them the followings are some of
the policies of the organization. These are:

 International banking policy

 Customer management policy
 Physical safety and security policy
 Credit policy
 Liquidity management policy.
1.4 competitors’ and any other important issues
It measures the levels of competition among the commercial banks of Ethiopia by taking a
sample of the seven private commercial banks ,i.e. Awash International Bank, Bank of
Abyssinia, Dashen Bank, United Bank, wegagen Bank and Nibe International Bank, and
commercial bank of Ethiopia by Using the panzer-Rosse approach.

Commercial Banks and thrift institutions compete in various ways for deposit of customers,
commercial bank offer full range of services and attract customers with one-stop banking and
commercial banks offer checking account. Convenience and size of branch or ATM network
seem to be the most common way

Strength, Weakness, Opportunity and Threat (SWOT) analysis of the

organization
The commercial bank of Ethiopia

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Abay mado branch is governmental organization has its on strength and weakness side there are
also have good opportunities and threats that speed up and retard the bank over all work process
respectively

Strength of the organization

o Strong corporation between management and employees
o By innovating new technology increase its profitability from time to time
o Good efficiency and ethical conduct of staffs
o The organization makes good relationship with other local banks and 50 foreign
banks
o It’s give training for its employees to improve their profession
o The bank has qualified and experienced management who done the activity of the
bank very well.

Weakness of the organization

o Some workers of the bank not give service to the customer properly
o Weak information of some workers
o Sometimes there is big connection problem that makes customer angry
o There is some inefficiency material like chair tables and computers for trailing staffs

Opportunity of the organization

 The commercial bank of Ethiopia abaymadobranch has large number of
customers.
 The development of infrastructure and investment in the country play great role
for the bank.
 Steady and fast growth of population is good opportunity for increase bank
customer.
 Availability of qualified work force in the market
 Development of information technology

. Threat of the organization

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

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  Volatility of currency
 Competitors share of the market (spread of branches of private banks)
 Poor credit culture and know how about banking and its service within the
society
 Some new and revised regulation of the National bank of Ethiopia or
government.
 Economic condition of the country

CHAPTERTWO

Abouttheorganization
2.1Organizationalhierarchychart

2.2 Number of employee

CBE in abaymado branch for the first time or the organization starts the business by 15
employee including the branch manager currently at this branch there are44 employee.

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 2.3 Main office

Commercial bank of Ethiopia is located on Addis Ababa or Addis Ababa is the main office CBE
includingabaymadobranch.

2.4 Introduction of all department

Branch Manager:- he perform over all controlling activity o f the bank.

Customer service manager:- assist branch manager and invite new customer.

NBO:- perform payment to customer .

Branch auditor:- checking of book balance and ensuring error free book of account.

Chief cashier:- ensuring compliance with daily cash holding limit of branch.

Customer service officer: to deliver serivice to customer.

The bank has a process oriented corporate structure and each process headed by a process
owner and the Management of the bank reports to the President. The bank performs its
operations through its Core and Support Process.
i. Core process:- this process consists of three sub-processes

A). Customer Accounts and Transaction System (CATS)

This process is responsible for managing and follows up of the accounts of its customers and
transaction services.
B). Trade Services
This process is responsible for all international banking operation of the bank.
C). Credit Services
This process involves in all credit related issues of the Bank
ii. Support Process:- this process consists of eight sub-processes

Develop HR strategy, policy and procedure;

 Employs and develops existing and future human resources of the bank
 Handles various employee services such as payroll, pension, and health care.

B). Information System (IS):-This process is responsible for

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  Data processing and information management;
 System development and customization;
 Network configuration and setup;
 Software and/or hardware procurement;
 Implementing IS quality and change management

C). Facilities Management: - This process is responsible for the following major tasks
 Procurement of goods & services;
 Construction of buildings;
 Maintenance of buildings, vehicles and office equipments;
 Providing transportation service for the other bank organs; and
 Disposal of used assets

D). Finance
Responsible for all accounting & finance related issues
E). Business Development
This process is responsible for
 Conducting research on various issues;
 Building the image of the bank;
 Awareness creation on services and products;
 Ensuring a state of being in accordance with the banks policies, procedures and practice
with all of the applicable laws, regulations, code of conduct and standard of good
practice.

F). Internal Audit

 Learning/conducting performance, financial, compliance and information system audits;
 Providing consulting services for the banks management and staff;
 Providing key input for the development of risk based strategic and annual internal
audit plan.

G). Legal and Loan Recovery

 Advising & court proceeding activities;
 Minimizing or mitigating legal risks;
 Providing professional advices for the banks management and other processes

Products and Services of CBE

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Commercial Bank of Ethiopia provides various products and services to its customer and has
launched various types of products and services by targeting various and specific segment of
the society. The following are some of the products and services provided by the bank:-
-Deposit products: - it includes Saving Accounts, Women Saving account, Minor saving
account ,Youth teen saving account, Youth saving account, Condominium saving (Housing
Deposit), Special demand deposit accounts, fixed time deposit accounts, Current or checking
accounts
-Commodity Exchange Account: - it includes an ECX Settlement account, Member Pay-in,
Member Pay-out, Member clearing pay-in, Client pay-in, Client pay-out, Limited member pay-
out, and member clearing pay-out.
-Credit Products & Services: - short, medium & long term loans
-Trade Service Products and Services: - it includes import & export related services such as
documentary letter of credit, cash against document, letter of credit advance payment,
consignment and small items export, and letter of guarantee.
-Foreign Currency Accounts

-Diaspora Accounts- Includes current account, fixed deposit, Non-transferable saving account,
Non- reparable birr account and special housing account.
-Incoming Money Transfer
-Outgoing Money Transfer- such asnon-repatriable account, Non-transferable account & local
current…………….
Organizational structure is the most important part for office to achieve its objectives and
mission

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

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. Let we see to how they control each activity.

2.5 comments on organizational structure

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CBE inAbay madobranch have same problems .

 there is big internet connection problem

 there is inefficiency of same materials like ; chair, table and so on

same workers have problem on their behavior and did not give proper service to customer.
suggested solution for the problem
 Askingconcerned body to get enough network that help to provide proper service
customer’
 It should full fill all the necessary materials which are technologically improved to
facilitate its service.
 The organization should have provide a quality service for its customer to being a good
compotator in the market. The organization appraisal system should be based on
efficiency and effectiveness that means resource consumption way should be wise and
manageable.
 solve the problem of inefficiency of materials by asking additional budget for the
department and purchase this materials and make available for the department .

To solve the problem a lack of data about historical back ground of the organization, I advise to
gather some information from head office and try to document with the help of supervisor.

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chapter three

3. Plans of the organization program

3.1 Brief introduction of abaymadobranch is one of the new branches of CBE which
established in ...................... ...... It located in bahirdardistrict of Ethiopia. CBE
abaymadobranch is located in Weast bahirdar which is started by few employee but now there
are 44employees and 39 employees are male and the remain is female . In this branch it has
more than 34,000 customers , it has 10 messeget

3.2 starting and ending date of the internship

I started my report preparetion program in june 28/10/2016 ECand I finished my

reportpreparetionprogram in jun augest 8 /12/2016 EC

3.3 departments in which I got trained

In the first week I worked in lobby area which is helping customer who are illiterates who cannot
write and read. In the rest of the week I worked in customer service department like account
opening. In the last week I saw how to chak the chakers the difference non cash transaction and
what the auditors do .I some experience from this organization report. like;- how to respect
customer,

- commincation expriance

- panctuality or time use effectively

chapter four

4. Reflection the organization program

I participated from the internship program I did see, read, and hear different things from these I
least some of them as follows.

When I was work on internship program I have acquired a lot of benefit from practical
attachment to my study, same of the relevance of practical attachment are stated below

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. The responsibilities and major activities of me as a member of department

As a department member I also have the responsibilities of performing the activity of the
department. Based on the general activities, I perform the following specific activities as an
apprentice when I was participating at commercial bank of Ethiopia of Abaymadobranch.

 I opened account for many number of 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.
 I protecting the office resource from damage.

 I also observe how to communicant employer to customer.

 I participated in different writing and typing activity that help for customer’s service.
 I keep the office resource from damage.
 I check the name, date and signature of the customer to be full filled properly when the
customer deposit , transfer, exchange and withdrawal of many,
 I can also read different rule, regulation and policy of the organization,
 I also read different forms formality and properly I understand and how to full fill that
paper to customer.

As a department member I also have the responsibilities of performing the activity of the
department. Based on the general activities, I perform the following specific activities as an
apprentice. When I was participating at commercial bank of Ethiopia of Abaymadobranch.

I accomplish a given work punctual and honestly by obeying the rules and regulation of the
organization.

I gave different service for department and customer

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

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

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 problem observed that affect the organization at current time and its critical
issue
Current problems observed that affect commercial bank of Ethiopia abaymadobranch.The
primary problem regarding the historical back ground of the organization. This problems rises
due to

 lack of organized and return document in the organizations

 Lack of superior service quality

 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

Summary of the Attachment

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 CBEabaymadobranch
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

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service and competitive environment. In addition to that big internet connection/network
problem and inefficiency of materials are the major challenges of CBE of abaymado branch.
Conclusion
Many Ethiopian higher education institutions do not create practical attachment chance for
their students. Rather they
focused on teaching theoretical part and that creates challeng for the students in their
employment after they complete academic life. On the other hand many challenges and
problems observed in the organizations where the practical attachment was conducted and
knowing challenges and problems of organizations may develop problem solving skill of the
students. Therefore, conducting practical attachment is important for students, university,
employers and for society generally.

Recommendation

Based on the findings of the practical attachment, the following are recommended for the

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concerned organs:-
 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.
- in addition to this I recommend the organization

it has serivce delivery problem so the organization request National bank tofull fill
this problem .

." also request computer,chair and other material access from Nationalbank.

5. References

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  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

APPENDIX
BluenileCollege OfBusinessandEconomics
DepartmentofAccountingandFinanceSurveyquestionnaireforassessingpracticeincommerci
albankofEthiopia”Purpose:thisquestionnaireisdesignedtocollectprimarydataaboutthenatureofpr
acticeincommercialbank ofEthiopiain abaymadoBranch.

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Dearrespondents
1.
ThisquestionerwhichregardtocommercialbankofEthiopiathankyoucooperation.Pleasenotthatthe
reisnoneedofwritingnameforquestionyoufeelisrightonthespaceleftblank
1.Personalinformation

2Gendermalefemale

3.Age<3031-4041-5051-60above604.Whatisyourpositioninthisorganization?
____________________________5.Experience1-4year5-910-14year16-
20>206.Educationstatus:accountingmanagementeconomicsother
II.Questionnaires1.Poorstandardizedcreditpolicyandpoorcreditriskmanagementarethemostinter
nationalcausedcreditrisk?
Stronglyagreeagreedisagreestronglydisagree2.Whichofthecommonsourceofmajorproblemsresul
tinriskofdefault?Weaknessincreditriskmanagement
Weaknessincreditgrantingandmonitoringprocess
2.RiskofdefaultismostlikelyseenonNewcustomersexistingcustomerbothThereisno
3.Doesthebankmakenecessarypreventivemethod beforeandafterdisbursements?YesNo

4.Doesyourbankgiveadvisoryandtrainingservicetoitscreditcustomerssoastopreventrisk?YesNo
5.Doesyour customer
willingtodiscloseeveryinformationthebankneedsforloansprocessingandriskmanagement?YesNo
6.Whichofthefollowingisresponsibleforaddressingcommercial bank informationinyourbank?
SupervisorcreditriskmanagementdepartmentSeniormanagedcreditofficeallofthem
7. commercialbankpolicy
ofyourbankprovidesriskidentificationmeasurementStronglyagreeagreeDisagreestronglydisagree
18.Toastomaintaintheinterestofshareholdersyour commercialbankpolicy?
Extremelyparticipatoryparticipatorylessparticipate
9.Creditriskisfrequentlyoccurredduringenterseeneconomicsituation?
StronglyagreeAgreeDisagreestronglydisagree

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10. guidelineandprocedurethatexplainobjectiveandprincipleofcreditriskmanagement?
YesNo
11.Ifyouranswerforquestionno12yes,isthepolicyandprocedureapprovedbyboardofdirector?
YesNO

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