Salele university

SALALE UNIVERSITY
COLLEGE OF BUSINESS AND ECONOMICS
ACCOUNTING AND FINANCE
INTERNSHIP PRACTICAL ATTACHEMENT REPORT
ASSESMENT OF THE VALUE CHAIN ACTIVITIES ON COMMERCIAL BANK
OF ETHIOPIA IN SHEBEL BERNTA BRANCH

PREPARED BY: ERMIAS GETE…….RU 0624/13

ADVISOR: MR. HAYLU TESFAYE

FICHE, ETHIOPIA
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ACKNOWLEDGEMENT
Above all I would like to praise the al-mighty God. Then my deepest gratitude and thanks goes
to my Boss Ato Gebeyehu manager of Commercial Bank of Ethiopia Branch of Shebel bernta
his UN reserved advice to finalize this practice attachment.

My heart full gratitude is also to all sub managers and all bank workers for their ideal assistances
and it’s also to my beloved brothers who gave me financial support, an ideal and moral supports.
Finally, I would like to acknowledge my deepest thanks also goes to our department head and its
all campus lecturer who gave me this chance.

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ACRONYMS AND ABBREVIATION

ATM Automated teller machine

CATS Customer Accounts and Transaction System

CBE Commercial bank of Ethiopia

IT Information Technology

KYC Know your customer

NBE National Bank of Ethiopia

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ABSTRACT
The important of this practical attachment is to enable and develop the students their own thoughts and
goals through attaching to different governmental and private business organizations and observe the
practical working environment and share the new insights and provide the trainer with smooth transition
from the non-campus environment to the working environment. The purpose of this practical attachment is
to assess the history of commercial bank in Ethiopia, the function of commercial bank, identify the strength
and weakness of CBE and assess the impact of value chain activities on commercial bank of Ethiopia. The
practical attachment exercise was carried out through theoretical and practical-based practical training
experience that prepares trainees for the tasks they are CBE found to be important for conducting various
types of functions. However, the challenges observed are that the parameters are subjective and broad in
definition. In areas like business risk and management risk are found to be subjective to rate.

Finally, recommendations and conclusion made based on the results of the practical attachment. Key
recommendations include promote successful business which are working with the bank creates awareness
about the contribution of CBE for poverty alleviation through credit provision to micro finance institution s
and through the establishment of CBE foundation. Promote and advertise aggressively though branches,
mass-medias educational institutions, pamphlets,
ACKNOWLEDGEMENT.......................................................................................................................................................i
ACRONYMS AND ABBREVIATION.................................................................................................................................ii
ABSTRACT...........................................................................................................................................................................iii
CHAPTER ONE......................................................................................................................................................................1
INTRODUCTION...................................................................................................................................................................1
ORGANIZATIONAL REPORT.............................................................................................................................................1
1.1 Background of organization..............................................................................................................................................1
1.2 vision of commercial bank of Ethiopia.............................................................................................................................2
1.3 mission of commercial bank of Ethiopia.........................................................................................................2
1.4 Objective of the organization..........................................................................................................................................2
1.5 SWOT Analysis.................................................................................................................................................................2
1.5.1 Strength of CBE..............................................................................................................................................................2
1.5.2 Weaknesses of CBE........................................................................................................................................................3
1.5.3 Opportunity of the organization.....................................................................................................................................3
1.5.4 Threats............................................................................................................................................................................4
1.6 Organizational Structure of Commercial Bank of Ethiopia..............................................................................................4
1.7 The extent to which the organization is realizing its visions and missions and performance of the organization in
relation to its objectives...........................................................................................................................................................6
CHAPTER TWO.....................................................................................................................................................................7
OVERALL INTERNSHIP EXPERIENCE.............................................................................................................................7
2.1 How I Got into the Organization?.....................................................................................................................................7
2.2 The major problems that face the organization are the following.....................................................................................7
2.3 Suggested solutions (measure) taken to solve for the problems.......................................................................................7
The possible solution I suggested for such problems as follows............................................................................................7
2.4 Major problems that I faced during the attachment........................................................................................................8
2.5 Suggested solution of the problem that faced during practical attachment.....................................................................8
The problem mentioned above are solved by: -......................................................................................................................8
CHAPTER THREE.................................................................................................................................................................9
THE OVERALL BENEFITS GAINED FROM THE INTERNSHIP....................................................................................9
3.1 Introduction.......................................................................................................................................................................9
3.2 Practical Skill....................................................................................................................................................................9
3.3 Theoretical knowledge......................................................................................................................................................9
3.4 Interpersonal communication skill..................................................................................................................................10
3.5 Team playing skill...........................................................................................................................................................10
3.6 Leadership skills..............................................................................................................................................................10
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3.7 Entrepreneurship skills....................................................................................................................................................10

3.8 Work ethics....................................................................................................................................................................11
CHAPTER FOUR.................................................................................................................................................................12
CONCLUSSION AND RECOMENDACTION...................................................................................................................12
4.1 Conclussion.....................................................................................................................................................................12
4.2 Recommendation.............................................................................................................................................................12
4.2 Reference.........................................................................................................................................................................14

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 CHAPTER ONE

INTRODUCTION
ORGANIZATIONAL REPORT
1.1 Background of organization

In modern economy a strong and study financial system is a pillar of economic growth and development. The availability
of banking facilities and unfolding banking services outreach are the major facilities of development and expansionary
activities.
Commercial bank of Ethiopia (CBE) is one of the oldest public banks. The history of commercial bank of Ethiopia dates
back to the establishment of the state of bank of Ethiopia in 1942. CBE was legally establishment as a share company in
1963. In 1974; CBE merge with the privately owned Addis Ababa bank. Since then, it has been playing significant role in
the development of the country. Currently CBE more than 40 million account holders in its more than 1900 branches and
the number of mobile and internet banking users also reached more than 6 million as of June 30 , 2023. Active ATM card
holders reached more than 7.7 million.
The bank has already envisaged the banking industry is becoming very competitive, especially with the establishment
of an increasing number of new private Banks. Beyond the local competition the vision of CBE is “to be a word class
Commercial bank by 2025”. To be a word class bank CBE to prepare itself for the forthcoming challenges in order to safe
guard and improve its position.
On the other hand, the customer base is widened from individual and small household to large [Link] is crucial for
CBE to be able to meet the needs and increasing demand of customers for better and improved products or service in items
of banker- customer relationship.
The commercial bank of Ethiopia introduced modern banking to [Link] was the first bank in Ethiopia to partner
with western union, introduce ATM, and add mobile banking to its list of services .
Today, Ethiopian in the diaspora can send money home through the CBE’s 20+ international money transfer partner,
which include western union, money gram, and world remit. In addition to its partnership with international money transfer
services, the CBE has a strong SWIFT connection with more than 700 foreign banks worldwide.
The bank’s mission is committed to realize stake holder‘s values through enhanced financial
intermediation using the best professional and technology. Actually, modern project finance
by commercial banks is generally thought to have begun in the 1930s when a Dallas bank
made a nonrecourse loan to develop an oil and gas property.

Shebel bernta Branch one of the new branch of commercial bank of Ethiopia.. Commercial bank
of Ethiopia Shebel bernta Branch started working within few employees but, currently there
are 46 employees as July of 2014 and more than 45000 customers.
In general by adopting or accepting different modern working technical commercial bank of Ethiopia in Shebel bernta
branch tries to achieve it is vision, mission and to bring desire economic development in the country

1.2 vision of commercial bank of Ethiopia

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To become the world class commercial bank in real world

1.3 mission of commercial bank of Ethiopia

CBE are committed to best realize stakeholders, needs through enhanced financial intermediation
globally and supporting national development priorities, by deploying highly motivated,
skilled and disciplined employees as well as state-of -the art technology. We strongly
believe that winning the public confidence is the basis of our success

1.4 Objective of the organization

Every organization is established for them on objectives. To achieve they have to work hard
and follow up effectively.
Commercial bank of Ethiopia at Shebel bernta branch has the following objectives.
❖ To implement management information system.
❖ To maximize customer satisfaction.
❖ To develop competence with other private banks.
❖ To compete with other branches and will be lead it.
❖ To establish performance base incentives.
❖ To deposit mobilization service.
❖ To enhance and facilitate the development of the country.
❖ To maximize profit of the bank by creating difference.
1.5 SWOT Analysis
Strength and weakness are one of many tools that can be used to map out an organization’s
strategy. Strength are any internal assets such as motivation of employees, technology
and financial strength of the organization, etc. which enable the business to exploit
arising opportunities and to achieve its goals. Weaknesses are internal deficits that make
it difficult for the business to achieve its goals.

1.5.1 Strength of CBE

 Respecting the law of the organization
 The bank has a skilled and competent employee and a bank with high integrity.
 Good efficiency and ethical conduct of staffs
 The other strength of CBE is its accessibility. The bank now a day opens new branches.
 CBE saves customers time by using online T-24 electronic system.

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 It give excellence service for its customer which most of its customer get satisfaction in proper manner
 They respect each other and also they give priority for their work

1.5.2 Weaknesses of CBE

CBE sometimes faces the failure of network and power system and poor customer handling;

 The bank gives loan service for selected and feasible economic sector.
 CBE still lacks the proper banking infrastructure.
 There is no sufficient number of ATM machine.
 There is no available cash balance in the ATM machine especially on Sunday and other holiday’s
1.5.3 Opportunity of the organization
 Global market
 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
 Growing economy
 Growth rate and profitability
 Availability of educated man power in the town.

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1.5.4 Threats
 Increase in labor cost
 Volatility of currency
 Economic condition of the country
 Poor credit culture and know how about banking and its service within the society
 Connection problems
 External business risk
 Financial capacity
1.6 Organizational Structure of Commercial Bank of Ethiopia
Organizational structure is the most important part for office to achieve its objectives and mission. This
structure is developed to establish how an organization operates and assists an organization in obtaining its
goals to allow for future growth. The structure is illustrated using an organizational chart.
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Figure 1: organization structure of CBE

How the organization is organized to achieve objectives, vision and mission

All departments in this organization are related to [Link]

o
the other department can control
the activity of other. Also, on their daily activities the
must report to the body which controls
each department. Also, they control eachother to mini 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
checks and report to branch manager. So finally, all activity in bank is controlled by the manager
of the bank.

1.7 The extent to which the organization is realizing its visions and missions and
performance of the organization in relation to its objectives.
The commercial bank of Ethiopia Shebel bernta branch I 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.

Workers of the organization are accountable to their customer and good information for every sector
commercial bank of Ethiopia Shebel bernta branch its mission and vision through giving the above
service

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CHAPTER TWO
OVERALL INTERNSHIP EXPERIENCE
2.1 How I Got into the Organization?

As the University academic curriculum, the student who finish third year second semester Accounting and
Finance program, students expected to take the internship program this is done by taking a formal letter or
request from university linkage for internship place for third year second semester. This formal letter or
request let me to ask different company (organization) to practice the theoretical knowledge those I have
learned so far in the class. During last year after the end of semester II apply many letters for different
companies by paper and orally with best regards, but I was lucky to get an acceptance from Shebel Town,
commercial bank and gave me the chance to train and I went to Shebel town at commercial bank to join and
to practice the theoretical knowledge learned in the class. As I arrived first day to the commercial bank, I
got a good acceptance from Shebel bernta branch staff workers, operators of the Bank. Shebel bernta
branch gave the positive answer to host me for the required period.

2.2 The major problems that face the organization are the following.
 There is a connection or network problem, specially the first two day's I started my practical
attachment.
 There is inefficiency of some materials like chair, table, and ATM machine and so on.
 There is no Wi-Fi in the organization
 Connection problem
 Workers have problems on their behavior and didn’t give proper service to customer.
 The problem of liquidity of cash in the tiller mostly at the resting time of cash control.

2.3 Suggested solutions (measure) taken to solve for the problems

The possible solution I suggested for such problems as follows

 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 these materials and make available for the department.
 Misbehavior that disturbs working condition and improperly, must be punished according to rules
and regulation of the organization.
 The cash control give sufficient cash for each tiller before go out from the off

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2.4 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 major problem in my Region civil war
 At the beginning time they didn’t give me full freedom to do activities independently.
 Shortage of some extra or additional working materials like chair and computers for trainers.
 Some employees are not interested for sharing their experience.

 Lack of transport service.

 Lack of computer in the office.

 There are more apparent students in the organization and sometimes the banker is not voluntary to
show especially computerized part.

 The money given to us is not enough to cover the basic needs during take the practical attachment.

2.5 Suggested solution of the problem that faced during practical attachment
 The problem mentioned above are solved by: -
 To solve in civil war in Government and in May Region peoples
 I trying to adapt new environment and working condition gradually by studding behavior
of department member and sharing experience among them.
 To solve transportation problem, I try to wake up early.
 Use taxi to cover transport problem.
 The organization should have to buy additional materials like chair and computers that help for
training.
 The organization should give the opportunity for students to participate in a given activities
freely in order to improve their knowledge and producing self-confident professionals.
 We tried to cover our expense with the help of our family.
 Customer service is an important but broad concept in the banking industry .in essence banks are
service based business so most of their activities evolve elements of service. While they do sell
banking and financial products; there is often little tangible product variations among their
offerings
 Due to the shortage of transportation system, it was difficult to me reach on time in work place

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CHAPTER THREE
THE OVERALL BENEFITS GAINED FROM THE INTERNSHIP
3.1 Introduction

During the internship at Commercial bank of Ethiopia I had gained so many advantages. So, these one
month of the internship program could able to connect the gap between student life and professional life.
This internship program provided a plat form to introduce ourselves in professional field. We have greatly
benefited from working with the dedicated professionals in the Commercial bank of Ethiopia. The Bank
has provided a conductive working atmosphere among the staffs. This has opened doors for understand
what is waiting for us when I have finished and will graduate studies at this field.

3.2 Practical Skill

In terms of improving my practical knowledge during my internship at this institution gained a lot of practical knowledge, mainly in
the field at work I was assigned to and among them, I saw how to fill in various forms, how to withdrawal cash, how to deposit a cash,
how to transfer a cash from one account to another account, how to work with mobile banking CBE BIRR and visa Card, in addition,
I was able to see the work of the branch as a whole and thus I gained a sufficient understanding in t
3.3 Theoretical knowledge
The internship program has given me the opportunity to increase my theoretical knowledge to a high level
there were a various point that interested the experts working in the institution and required close analysis:

 Among the conceptual knowledge you have.

 Procedures for opening new accounts.
 Making a cash withdrawal and deposit.
 Make cash balance after working hours.
 Knowledge of work management and personnel control techniques.
 Seeing issues related to payment and price in relation to the contract agreement.
 Looking at issues between investors and borrower

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3.4 Interpersonal communication skill

After I joined this institution, I had a good relationship with my personal relationships when I was doing
the work assigned to me and as a result it learning various things, which mean that, there are a lot of
clients who come to the institution to be treated.
According to the role assigned to me I have a good relationship by communicating with the client who
comes looking for my position reason has helped me expand my horizons of communication with
people.

3.5 Team playing skill

in view of the fact that this institution receives a large number of customers every day in order to serve
customers properly and efficiently the staff in the room strive to work efficiently by cooperating and reading
and taking to each other I have been providing efficient service and as a result.

I have been able to see how an employee works together with other staff members and as a result I have
tried to acquire sufficient knowledge of how to work together with a professional and a colleague.

3.6 Leadership skills

One of the benefits that I got after entering this institution is to improve my leadership skills and this is
mainly by seeing the manager of the institution in the four weeks of working days that I spent at the
institution, how he surprises our employees and how the staff of the institution should provide efficient and
fast service to customers and when he gives orders and by asking about the work he does.
I took the experience that I said would be useful to me and I was able to learn how a manager or head of an institution
should lead the institution under responsibility and what kind of leadership skills should be used to provide good service to
customers by coordinating and stimulating employees

3.7 Entrepreneurship skills

In relation to entrepreneurship skills as this institution is a national and international institution it is an
institution that is working hard in terms of entrepreneurship in order to stand out from many competitive and
competitive organization it works so I was able to see that an institution needs to do different innovation to
be a head of other competing organization and in terms of improving my entrepreneurship skills in any
institution.

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3.8 Work ethics

The other benefit I gained this internship is related to work ethics which is that I was able to see what kind
of ethics an employee should wear in the institution where he works and different work ethics among them.
I learned how to treat customers in a manner that conforms to work ethics, I have seen that it is possible to
bring about change by working together with each other in a manner full of discipline

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CHAPTER FOUR
CONCLUSSION AND RECOMENDACTION
4.1 Conclussion
Commercial bank of Ethiopia (CBE) is the leading commercial bank in the country with a remarkable
contribution for participates in national development projects. Commercial bank of Ethiopia (CBE) is using
a modern technology by the branches, leading bank in introducing a new banking service to the public,
skilled and competent employees and a bank with employees of high integrity. Commercial bank of Ethiopia
also plays a great role by financing a national development project through strengthen its financial status.
The bank develops its financial strength and profitability by using value chain activities. However
commercial bank of Ethiopia (CBE) faces different challenges in order to achieve its long- and short-term
plans. The major challenges to determine its long- and short-term plans and profitability are commercial
bank of Ethiopia still lacks the proper banking infrastructure, like Birr counting machine, printer, copy
machine etc. The bank also faces the failure of network and power system, electricity. In commercial bank
of Ethiopia, low level of motivation of employees, poor customer handling, and use of inferior technology,
financial difficulties and such factors make it hard for the business to utilize arising opportunities and make
it vulnerable to competitors and other adverse factors in the business environment. Commercial bank of
Ethiopia has other limitations on electronic payment machines, such as there is no sufficient number of
ATM machines, no available cash balance in the ATM machine especially on Sunday and other holidays
and low level of network performance.

4.2 Recommendation
While doing my practical attachment, I observe some issue that negatively affect the organization. Some
of them are the following

 Some employees haven't self-confidence due to have taken any practical training before start
your work.
 Some of the employee isn’t punctual.
 Some of rule and regulation of the company is not apply.
 The number of employee more than enough.
 There isn't a good leadership manager.
Therefore, I would like to suggest the commercial bank of Ethiopia Shebel bernta branch should be
take the following recommendations In order to improve the weakness the organization.
 Give a practical training for first level employees.

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 Establish permanent rule and regulations.

 Assign employees depending on ability.
 Choose a best employee as a leadership.
 The manager of a company should be treating each employee.
On some issues that I observed during accomplish my practical attachment in Shebel bernta branch at
commercial bank of Ethiopia 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 (participation) of both man and women in development process.

• Finally, I would like to suggest to Commercial Bank of Ethiopia at Shebel bernta have to
work properly to achieve their goals and also to address other problems by working in
cooperation with other organization.
• The manager must be motivate the employees.

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4.2 Reference
 Company document
 Commercial bank of Ethiopia (2022/2023) annual report AA Ethiopia.
 [Link]
 Commercial bank of Ethiopia public website.
 Branch Manager Mr. Gebeyehu (2023) challenges and prospects of commercial
project financing in CBE.

 The interview ,information from the employers of the organization

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