PART ONE

1. Organizational report
1.1 Background of the organization
The banking sector occupies a very important position in the country's economy, acting as an
intermediary to all industries, ranging from agriculture, construction, textile, manufacturing, and
so on. The banking industry thus contributes directly to national income and its overall growth
(Dash & Das, 2009) and although the banking sector is the backbone of any economy and this
gains more importance for a country (Chandani et al., 2014).
Bank of Abyssinia was the first bank established in Ethiopia based on the agreement between
Ethiopian government and National bank of Egypt in 1905 with a capital of 1 million shillings.
However, bank of Abyssinia was closed at in 1932 by Ethiopian government under Emperor
Haile Selassie and replaced by Bank of Ethiopia with a capital of pound sterling 750,000.
Following the Italian occupation between1936-1941, the operation of bank of Ethiopia ceased
whereas the departure of Italian and restoration of Emperor Haile Selassie’s government
established the state bank of Ethiopia in 1943.However, State bank of Ethiopia was separated
into National bank of Ethiopia and commercial bank of Ethiopia S.C. to separate the
responsibility of national bank from commercial banks in 1963. Then, on December 16, 1963 as
per proclamation No.207/1955 of October 1963 commercial bank of Ethiopia control all
commercial banking activities (Fasil and Merhatbeb, 2009).
Now a day commercial bank of Ethiopia has playing a catalyst role in the economic growth of
the country through enhancing and financing major projects. Following the implementation of
the privatizations and liberalization financial institution during 1991 the commercial bank of
Ethiopia strives in increasing its accessibility across the country. Currently commercial bank of
Ethiopia has more than 1625 branches and above 27 million customers. The bank had also
invested more in IT projects to transform its traditional banking since 2012. After the first grand
transformation plan (GTP) the banks was aggressively working on the expansion of its service by
deploying different technologic product. Now the bank holds 62% of the industry market shares.
The bank capital had also reached more than half of trillion. The number of active card user of
the bank reached more than 9 million and the mobile banking users are also more than 5 million.
The bank has also more than 62 thousand employees including outsourced staff. The key

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 strategic objective of the banks is ensuring the national development and creating financial
included society by the use of the art of technology.
1.2 Cardinal issues (mission, vision, values and objectives)
1.2.1 Objective of the commercial bank of Ethiopia
Commercial banks are financial institution that accept deposits from their customer, then uses
those deposit to make loan for individuals and business in return to get income from such loans.
Thus the objectives of commercial banks are two folds, to offer variety of services to individual
and business customer and to collects payments including fees. Charges and interest from the
loan they grant to their customer. To exceed its objective commercial bank of Ethiopia has three
strategic objectives. These are business growth, business excellence and digitalization.
1.2.2 Vision of Commercial bank of Ethiopia
The vision of the bank is to become world class commercial bank by the year 2025.
1.2.3 Mission statement of the commercial bank of Ethiopia
The mission of the bank is maximizing shareholders value through enhanced financial
intermediation, using the best professionals and technologies. The branch shares this corporate
mission.
1.2.4 Values of the commercial bank of Ethiopia
The bank has 8 corporate values that have to be share across its branches. These are:
1. Integrity –dealt with the highest ideal of honor and trustworthy
2. Service excellence –offering highest quality service to the customers with good standards
3. Professionalism-having employee who take ownership and responsibility
4. Empowerment –consider employees as the most valuable asset of the bank and recognize
delegation of duty and responsibility.
5. Learning organization –anticipating and responding internal and external changes
6. Team work –respect one another and co-operate in work
7. Respect for diversity –fostering an environment of inclusiveness and listen to one another and
respond appropriately
8. Corporate citizenship –we are abided by national and international law and regulation and
caring about the society welfare and environment

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 1.3 Organizational structure or branch structure
BRANCH
MANAGER

OPERATION MANAGER BUSINESS MANAGER CONTROL MANAGER

SENIOR OPERATION SENIOR BANKING

BANKING OPERATION BANKING

CASH ATTENDENT JUNIOR OFFICER

BANK TRAINEE
1.4 The extent to which organization realize its mission and vision
To realize its mission and vision CBE had designed three overarching strategies.
1. Business growth –ensuring sustainable profitability, increase financial resource, enhance
resource allocation, ensure financial soundness and increase customer satisfaction.
2. Business excellence –ensure product and price differentiation ,enhance accessibility and
improve risk management and compliance
3. Digitalization –enhancing information capital and enhance employee leadership and
competency
Therefore by ensuring these three strategies CBE can realize its mission and vision.
1.5 SWOT analysis of the bank
 Strengths
▪ Enhanced accessibility;
▪ HR strength with large trainable staff;
▪ Clear vision and corporate business strategy;
▪ Management and employee’s consensus on the top priority accorded to deposit mobilization;
▪Regular follow-up of deposit mobilization performance and branches visits made by the
management
 New products;
 E-payment channel and card banking;

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 Good experience in mobilization strategy down to the branch level;
 Large customer base;
 The expansion of the CORE banking system to most of the CBE branch
 Weakness
▪ Low supply of loanable funds in contrast to excess demand for credit;
▪ Delay in supply of office equipment & furniture relative to rapid branch expansion;
▪ Skill gap among the staff in areas of marketing and customer service;
▪ Lag in mobile banking technology;
▪ Limited banking products;
▪ Deposit balance concentration in few accounts (large low value accounts);
▪ Increased volatility of deposit;
▪ Low utilization rate of the E-payment channels (ATM, POS and Internet)
 Opportunities
 Low supply of loanable funds in contrast to excess demand for credit;
 Sustained high overall economic growth;
 Broad based/diversified economic growth, shifting towards job creating sectors (industry,
services)
 Rapid growth in number of SMEs that would create employment opportunities;
 Increasing agricultural productivity, which enhances income of agricultural households;
 Large unbanked population;
 Large public and private investment and employment;
 Good support from central and local government organs;
 Potential support of local influential personalities to the efforts of the bank;
 Strong public trust on the bank;
 Remittance and large Diaspora community.
 Threats
 Low financial literacy and low level of public awareness in saving and banking services
 Scattered settlement and low urbanization rate that hinders branch opening
 High dependency ratio
 Frequent interruption in telecommunications and power supply
 Low saving culture and high resource wastage in unproductive way

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 growing competition from other banks and non- bank financial institutions
 Drought diverts resources to immediate consumption and reduce saving
 Volatile commodities’ prices in the world market
 Lack of support from development partners
 Rising operating costs particularly rent for branch offices.
1.6 problems observed that affect the organizational at current and its critical issues
As the bank the major problem that hinder banking services are socio-cultural challenge, political
instability, increased competition in the industry and infrastructure related issues. Thus this all
have greater impact on the performance of the bank
1.7 suggested solution for the problem observed
The measure that the bank has to mitigate the above problems: creating awareness on the
importance of saving and diversifying its product. Expand its accessibility through branch
expansions and the use of technology. Also to minimize infrastructure issue such as electric
utility problem the bank use generators. Work aggressively on the usage of digital technology
PART TWO
2. ACTIVITY REPORT
2.1 Background of the department
The department or the branch that I have done my attachment is hayu branch. The branch was
located around franco and operating on the rented building of Ayu international hotel building.
The branch is one of the commercial bank of Ethiopia branch opened under adama district. It
was opened august 15, 2017. The branch delivers service to its customer by 18 employees. The
numbers of the branch customers are more than 7 thousand. The main activities performed by the
branch are accepting of deposit and paying cash for the customers. Generally the branch share
and implement the strategic objectives set by the bank at the corporate level.
2.2 Objective and responsibility of the branch
The major objectives and responsibility of the branch is ensuring the implementation of the
corporate objective to achieve the bank vision, mission and values and providing quality service
to the customer of the bank.
Major activities of the branch
 Accepting of deposit
 Paying cash

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 Selling diversified product of the bank which is maintained and segregated on the basis of
demographic features.
 Creating awareness creation on the uses of bank on various occasion
 Offering foreign remittance receiving service
 Exchange of currency denomination
2.3 Responsibility of the trainee
The main objective of on job training for student is to know the practical implementation of what
theoretically learned. I have learned and observed the above main activities of the branch and I
have captured better knowledge how to handle and serve customer queries. Since the operation
of the banking services are more risky, my duties were simply looking how the above activities
are performed by the branch staff in detail.
2.4 performance evaluation of my activity
The supervisor guides and gives order to me and evaluates my activities on weekly basis.
2.5 problems encountered on the job
The problem I have seen during my stay was on the first day of the training I was feel very much
stress and afraid. Then on the next day I feel free and started my training in a well manner. On
the first week of my training I was assigned on the reception area to write on the voucher for the
customers. During my stay on that area I have encountered the problem of shortage vouchers and
I have informed the branch supervisor the case and I recommend them that it’s better to maintain
sufficient voucher for customers, unless otherwise, it might create customer dissatisfactions.
2.6 problems of the branch and suggested solution
The major problem of the branch is: 1. Overcrowdings of the customers
2. Narrowness of the branch
3. Absence of Air conditioning (AC)
4. Absence of security camera
I suggested the branch for the above problem in the way that to minimize the over crowd ness of
the customers the branch must widen it office and increase the number of performer to minimize
the customer waiting time. The branch must append AC to its wall to protect bad air.

PART THREE
3. ATTACHMENT EVALUATION

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 3.1 Rationales of practical attachment
The rationale in offering attachment in higher institution as academic program is to benefit
students from in form of experiences and exposures. Some of the benefits are help as future
career, gaining practical experience on what is theoretically learned. On the hand it helps to
improve interpersonal skill and develop job expectation.
3.2 significance of practical attachment
The significance of practical attachment is it helps the students to understand how the theoretical
learning coincides with the practical application in the business environment. It is the bridge
between theory of the class room and practical world. Thus I have captured better experience and
knowledge in this regards during my stay in the organization.
3.3 Relevance of the organization and your activities to your study
The organization supported me on how I understand the activities of its business. In some
instance the concept of classroom learning and practical application differ. For instance in the
bank all activities are performed by computerized system and no records of journal entry. The
journal entry automatically passed by the computer.
3.4 Applicability of theories and others in the real world or practical work
The auditing, marketing and accounting concepts are used in the organization. The market
theories such as customer acquisition technique and retention methods are more used in the
branch. The branch use post audit procedure. The auditing take place after transaction processed.
3.5 problems faced during attachment and its suggested solution
Some of the problems I have observed during my stay in the branch are:
 To some extent I have seen shortage of deposit slip
 Copy machine may not work properly
I have commented the branch to maintain sufficient material to offer efficient and effective
service to the customer.

PART FOUR

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7. CONCLUSSION AND RECOMMANDATION
7.1 CONCLUSSION
The purpose of the attachment is to give the students opportunity to gain experiences and
exchange of knowledge. It also helps the student to use their theoretical knowledge in to real
situation and provide opportunity for the students in developing their marketing skill. The
attachment will also benefit the students in their future careers.
7.2 Recommendation
As it was explained on the background the branch share the corporate strategies to enhance and
ensure the vision of the bank. The branch must aggressively work on maximizing customer
service delivery. The concerned organ of the bank should widen the branch in-house area to
minimize the overcrowdness of the customers.

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