WOLAITA SODO UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF MANAGEMENT

PRACTICAL INTERNSHIP REPORT ON COMMERICAL BANK OF

ETHIOPIA BODITI BRANCH

PREPARED
BY: EYERUSALEM GUNTA
ID NO We/160/12
ADVISOR: ME SELE K.(Ass. prof)

APRIL, 2024
WOLAITA SODO, ETHIOPIA
ABSTRACT

The report provides an overview of the Commercial Bank Of Ethiopia, including its history,
objectives, mission, vision, and goals. It also examines the different wings of the bank, its overall
activities and its features and functions. The report also covers my job details, observations, and
learning during the internship, as well as an in-depth analysis of the bank's credit approval and
risk management procedures.

I hope that this report will provide valuable insights into Commercial Bank Of Ethiopia and the
banking industry as a whole.
ACKNOWLEDGEMENT

I would like to express my sincere gratitude to Mr Birahanu Fola for her guidance and support
throughout my internship at Commercial Bank Of Ethiopia.. I would also like to thank the
management and staff of Commercial Bank Of Ethiopia for their cooperation and assistance in
providing me with the opportunity to gain valuable experience in the banking industry.
EXECUTIVE SUMMARY

An summary of Commercial Bank of Ethiopia, including its goals, history, mission, and vision
during my internship, is given in this paper. It also looks at the bank's various branches, its
general operations for 2023 and 2024, and its attributes and capabilities. The report includes a
detailed examination of the bank's credit approval and risk management processes in addition to
work specifics, observations, and lessons learned during the internship. A SWOT analysis of the
bank and suggestions for future enhancements round out the study..
ACRONYMS

CIB: Commercial Bank Of Ethiopia

SWOT: Strength, Weakness, Opportunity, Threat

 CHAPTER ONE

INTRODUCTION

1. Organizational Report

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.

The bank's capital also soared to 63.1 billion birr, representing 27.7% of the total capital registered by
the banking industry. Additionally, its total assets reached 1.3 trillion birr

In 1974, CBE merged with the privately owned Addis Ababa Bank. Since then, it has been playing
significant roles in the development of the country. CBE is the pioneer to introduce modern banking to
the country.

Commercial Bank Of Ethiopia H.Q, located at — Gambia Street, Addis Ababa. Established with the
commercial banking business objectives, AIB is undertaking a universal commercial banking
services such as deposit mobilization, lending of money, remittance service, and international
banking services and interest free banking.

The word "CBE" as part of the name of Commercial Bank Of Ethiopia. (CBE) bears two
meanings: the initials of the Ethiopian capital city, where the Bank was founded to carry out its
historic duty, and new concepts or innovations. However, via branches that will ultimately
emerge in the near future, potential clients from all across the nation will be introduced to the
fresh vision and cutting-edge concepts and methods that were first brewed in CBE.

The Commercial Bank Of Ethiopia. are mainly engaged in the provision of financial services,
export business, manufacturing and services. The members of the major shareholders are mainly
low and middle income citizens. The Micro Finance Institutions also address the financial needs
of the "Unbanked" citizens.

CBE endeavors to be an inclusive Bank that addresses the financial needs of different income
groups in the country. It has the plan to penetrate the huge market that host low and middle
income people through Cooperatives and Micro Finance Institutions. CBE will expand its
operating by opening new branches at market centers within and outside Addis.

The Bank has now launched Electronic banking systems such as Card banking known as CBE-
Card (ATM and POS), Mobile Banking named as CBE-Cash, Agent Banking-CBE Agent and
Internet banking namely Oro-Click. The number of AIB branches have now reached 8250
throughout Ethiopia all connected by core banking system.

The Bank is now one of the most influential and popular private banks in Ethiopia and also
known for pioneering Interest free banking services. Commercial banking service such as deposit
mobilization, lending of money, remittance service, and international banking services and
interest free banking. Preparations are already underway to start Internet and mobile banking
services. Currently, The bank's capital also soared to 63.1 billion birr, representing 27.7% of the total
capital registered by the banking industry. Additionally, its total assets reached 1.3 trillion birr
1. Cardinal issues

Objectives

Objectives of Commercial Banks The objectives of commercial banks are two-fold; to offer a wide
variety of services to individual and business customers, and to collect payments including fees, charges
and interest on the products and services provided to customers for the purpose of generating profits for
shareholders ...We will strive to develop innovative solutions and products, deliver customer-
driven services, operate with integrity and accountability, and support our growth through
continuous innovation, efficiency, and proactive management.

Mission Statement:

“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. Our goal is to earn the public's trust while
providing comprehensive and top-notch commercial banking services that provide genuine value
to the interests of shareholders.

Commercial Bank Of Ethiopia mission is to provide our clients with access to secure, fair, and
affordable financial products and services. We are dedicated to providing customer-centered
solutions and actively engaging with local and global communities. We will strive to
demonstrate leadership in corporate governance and sustainability while creating value for our
shareholders.

Vision:
A world-class commercial bank financially driving Ethiopia's future.. Our goal is to leave a legacy of
distinction, creativity, and accessibility to finance. Our goal is to create a preeminent financial
organization that improves both the communities we serve and the lives of our clients. Our goal
is to become the preferred supplier of safe, dependable, and ethical financial services.
Goals:
Our goal at Commercial Bank Of Ethiopia is to become a leader in providing financial solutions
for our customers and our communities. We aim to provide access to high-quality customer
service, modern technology, and innovative products. We will also work to make our products
and services accessible to undeserved markets and communities. Lastly, we strive to become one
of the most trusted and respected financial institutions in the market.
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
 Service Excellence
 Professionalism
 Empowerment
  Innovative Organization
 Teamwork
 Respect for Diversity
 Corporate Citizenship

We are dedicated to providing complete, top-notch commercial banking services while

upholding the public's confidence and bringing genuine value to the interests of shareholders..
1.2. Organizational structure
The Commercial Bank of Ethiopia has a well-defined organizational framework that facilitates
the activities of the bank. The organizational structure has departments and subsidiaries, and
each department has a team of professionals that are required for efficiently managing the
operations of the bank. The top management is divided into the executive board and board of
directors. The executive board is responsible for the overall functioning of the bank and making
strategic decisions for the company.
The board of directors is responsible for formulating the policies and implementing the plans.
The
other departments in the bank include the credit department, operations department, marketing
department, treasury department and the compliance department. Each department is headed by a
manager and has professionals with the appropriate skills and knowledge to fulfill the respective
tasks
1.3. The extent to which the organization is realizing its visions and missions and
performance of the organization in relation to its objectives
Commercial Bank of Ethiopia Boditi branch was well organized to realize its cardinal issues. It
improves banking service from time to time and innovate new technology to give satisfaction for
customer.
Workers of the organization are accountable to their customer and good information for all sector
of this branch to achieve its cardinal issues through giving the above service. Commercial Bank
of Ethiopia appears to be well-organized and focused on realizing its visions and missions. This
is evidenced by its continuous efforts to improve its banking services and innovate new
technologies to give customer satisfaction. To begin with, the bank has set clear visions and
missions that guide its operations. These include
providing quality banking services to its customers, becoming a leading financial institution in
the
country, and contributing to the development of the economy. The bank's commitment to these
objectives is reflected in its continuous efforts to improve its banking services. For instance, it
has
invested in new technology that allows customers to access banking services conveniently and
efficiently. This includes mobile banking, internet banking, and ATMs, among others.
Additionally, the bank has a customer-centric approach that is aimed at providing personalized
banking services to its customers. This is evident in the way it trains its staff to be friendly,
courteous, and professional when dealing with customers. The bank also regularly seeks
feedback
from customers to identify areas where it needs to improve its services. Furthermore, the bank's
performance in relation to its objectives is impressive. It has been able to grow its customer base
and increase its market share over the years. This is a clear indication that its efforts to improve
its banking services are bearing fruit. The bank has also been able to maintain a strong financial
position, which has enabled it to provide credit facilities to its customers and contribute to the
development of the economy.
In conclusion, Commercial Bank of Ethiopia Boditi branch appears to be well-organized and
focused on realizing its visions and missions. Its efforts to improve its banking services and
innovate new technologies to give customer satisfaction have enabled it to grow its customer
base, increase its market share, and maintain a strong financial position.
1.4. Strength, Weakness, Opportunity and Threat (SWOT) analysis of the organization
Commercial Bank of Ethiopia is a leading commercial bank in Ethiopia that has successfully
served its customers with quality services by leveraging its existing strengths, minimizing
weaknesses and making the best use of opportunities. The following SWOT analysis highlights
the key strengths, weaknesses, opportunities and threats of the Commercial Bank of Ethiopia
Boditi branch
Strengths
 Highly experienced and professional management team
 Extensive network throughout the country
 Wide range of services and products
 Superior customer service
 High customer satisfaction
Weaknesses
 Limited presence in the international market
 Lack of proper risk management
 Lack of investment in technology
 Dependence on traditional methods of operation
Opportunities
 Expansion in the international market
 Investment in technology
 Strategic partnerships with other organizations
 Increasing customer base
Threats
 Increasing competition
 Regulatory uncertainties
 Economic downturns

1.5. Current Observed problems that affect Commercial Bank Of Ethiopia

I can provide some common problems that may affect any Commercial Bank of Ethiopia in
Addis Ababa town or Elsewhere of Sodo and Boditi. These include:
1. Security concerns: Banks are always at risk of being robbed or targeted by fraudsters. In
some
cases, employees may also be involved in such activities. Therefore, ensuring security measures
are in place is crucial.
2. Technological issues: With the increasing use of technology in banking operations, any
technical malfunction could result in loss of data or interruption of services. This could lead to
inconvenience and loss of trust from customers.
3. Poor customer service: Poor customer service could lead to dissatisfaction among customers,
who may choose to take their business elsewhere. This could ultimately affect the bank's
reputation and revenue.
4. Lack of transparency: Banks need to ensure transparency in their operations, especially in
regards to fees, charges, and interest rates. Failure to do so could lead to mistrust and customers
leaving the bank.
5. Lack of liquidity: Banks need to ensure that they have enough liquidity to meet customer
demands. Failure to do so could lead to delayed transactions or even bankruptcy.
It is important to note that these problems are not specific to the Commercial Bank of Ethiopia
Boditi branch but are general problems that can affect any bank branch in the region or
elsewhere sodo and boditi to address these problems, banks need to be proactive in their
approach and ensure that they have robust measures in place to mitigate these risks.
6,lack of organized and return document in the organization
7,Lack of superior service quality
8,High competition from aggressive expansion of private financial institution
9,Wastage of resource like use telephone line for personal call repeatedly
10,Inefficiency of office materials like computers ,furniture and others when compared to the
number of customers
11,File management and documentation improperly among some workers.
12,Inappropriate work load on some employees during lunch time due to insufficient
management
of employee work.
1.6. Suggested solution (measure) taken to solve or to minimize the problems
The possible solution that I suggested for such problems are as follow:
 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
competitor in the market
 The organization appraisal system should be based on efficiency and effectiveness that
means resource consumption way should be wise and manageable.
 To solve the problem a lack of data about historical back ground of the organization, I
gather some information from head office and try to document with the help of my
supervisor.
 For the problem regarding employees and their work, I suggest that, there should be one
sector that manages employees and their work in this organization.
 The bank should have be give periodic training to its workers to increase their efficiency
for their responsibilities.
 The employee of the bank should have be work hard for attaining the organization vision
and the like
CHAPTER TWO
2. Activity Report
2.1. Introduction
In this chapter I discussed different activities of the bank in different departments of this branch.
Next I also discussed my responsibility during this few days of the year.
2.2. Objectives and major responsibility as well as activity of the Department
2.2.1. The main objective of the Commercial Bank of Ethiopia Boditi branch
  To realize the need of Commercial Bank of Ethiopia, its mission, vision and values
through enhanced financial inter-mediation globally.
 Supporting national development priority by deploying highly motivated, skilled and
disciplined employees.
 Introducing modern art of technology.
2.2.2. Major Responsibilities and activities of the Commercial Bank of Ethiopia
 To satisfy its customers through rendering quality service
 Giving fast service by supporting latest technology like T-24, software, E-Payment, visa
card,ATM, Mobile banking, Internet banking.
 It also serve by introducing a new services like woman saving ,teenager saving, youth
saving, educational saving and interest free saving.
 Generally, teaching the society deeply about saving culture, how they changes and
improving the living standard.
2.3. My responsibilities and major activities
I have had some responsibilities and activities in organization during my practical
attachment.
 Present on the time or punctuality is my aforementioned responsibility.
 Working what manager ordered me.
 I check the name, date and signature of the customer to be filled properly.
 I create customer channel in order to open account for customers by supporting employees.
 I gave different service for department and customer
 Protecting the office resource from damage
 Observing and attending working activities
 Analyzing customer satisfaction from service they got
 Organizing report of what I observed from daily activities in the branch.
 Asking on working activities and any other information about organization questioned to me.
 Considering what I have learned in the class with related to practical activities.
2.4. Evaluation of My performance
I have performed my activities in the organization with full communication with manager and all
staff employees. I try to work major activities of work in organization like: how to deposit
money,
how to withdraw money, how to transfer money, how to check balance of my operation, how to
control finance in the bank, how to audit etc.

I can provide you with a general framework for evaluating an intern's performance in a business
management setting.
1. Professionalism: One of the key aspects of evaluating an intern's performance is their level of
professionalism. This includes factors such as punctuality, dress code, attitude, and
communication
skills. Did you arrive on time, dress appropriately for the workplace, maintain a positive attitude,
and communicate effectively with your colleagues and superiors?
2. Work Quality: Another important factor is the quality of the work you produced during your
Internship. Did you complete tasks accurately and efficiently? Did you demonstrate a strong
Understanding of business management principles and apply them effectively in your work? Did
you take initiative and go beyond the assigned tasks to add value to the organization?
3. Learning: An internship is a learning experience, so it's important to evaluate your ability to
learn and grow during your time at Commercial Bank of Ethiopia Boditi branch Did you ask
questions and seek feedback to improve your performance? Did you take advantage of training
opportunities and use them to enhance your skills? Did you demonstrate a willingness to learn
from your mistakes?
4. Teamwork: In a business management setting, teamwork is essential. It's important to
evaluate
your ability to work collaboratively with colleagues and contribute to the success of the team.
Did
you communicate effectively with your team members? Did you respect and value the
contributions of others? Did you demonstrate a willingness to help out when needed and take on
additional responsibilities when appropriate?
5. Initiative: Finally, it's important to evaluate your ability to take initiative and be proactive in
your work. Did you identify opportunities to improve processes or procedures and take action to
implement changes? Did you suggest new ideas or solutions to problems? Did you demonstrate a
strong work ethic and a desire to succeed?
Overall, your performance as a business management intern at Commercial Bank of Ethiopia
will depend on a combination of these factors. By evaluating your performance in each of these
areas, you can identify your strengths and areas for improvement and take steps to enhance your
skills and knowledge.
2.5. Problems encountered on the job and remedial measures
I have taken The major problems (challenge ) that I faced The staff members are so busy so that
they don’t give me enough priority in the first week and not give all responsibility to me
confidently. The other problem was I have not got a chance of doing the activities of the
department individually. This has its own effect on checking my effectiveness for the work. Due
to this reason I work with senior officer and assistant manager to share experience and to check
my effectiveness..

2.6. The Problem Division of The Departments And Suggested Solutions

The major problems of the organization are the following:
There is a big internet connection problem or network problem, especially in the first two
weeks I started my practical attachment.
There is inefficiency of some materials like chair, table and so on.
Some workers have problems on their behavior and didn’t give proper service to
customer.
2.7 Suggested solutions for the above 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.
Some misbehavior that disturb working condition and improperly, must be punished
according to rules and regulation of the organization.
 CHAPTER THREE
3. ATTACHMENT EVALUATION
3.1. Rationales of practical attachment
This practical attachment is very help full for student in order to make well minded in any
Work
that done in any governmental and non-governmental organization. This Attachment is guideline
which helps the students to know and understand the theory with a Little effort and improve their
abilities. This practical attachment also has a great advantage for the students and the major
rational of this practical attachment was that to know the theoretically learned course & gained
Knowledge are applied & implemented in real world environment and to improve education
through practical
work.
Another rationale of this practical attachment is supporting students to know the working
environment, how to work & gaining experience from the peoples in the work environment and
increase networking in order to reduce unemployment.
3.2. Significance of practical attachment
This practical attachment has a great significance for students.
Some of them are discussed below:
 It helps the students to understand how works are implemented practically.
 It helps the students how learned theories are applied in the working environment.
 It helps the students to apply their skill & knowledge on the job what they have gained
from learned theoretically in the class.
 It helps the students to have experience & to know work ethics.
 It helps lecturers to identify their students’ ability in practical working environment.
 To develop network between students and working environment.
 To develop opportunity of work.
 To encourage and develop student confidence in work area.
Generally ,this practical attachment when I participate and work through my location has too
much
significance.
3.3. Relevance of the organization and my activities
The organization in which I do my practical attachment Commercial Bank of Ethiopia Boditi
branch is relevant for my field of study. Because, some courses I learned in the class were related
to what I worked in the organization. For instance, I obtain the knowledge about principle of
accounting starting from source document up to preparation of financial statement. The
organization evaluates my performance that helps me to be a self-confident employee in the
future
3.4. Applicability of the theories in the class and activities on real world or practical
working environment
The theories discussed in class are extremely applicable to the working environment at Oromia
Bank. Learning these theories can help you develop a better understanding of the bank's business
operations, customer service procedures, and overall financial management. With this
knowledge,
you can more efficiently complete tasks during the internship and gain valuable insights into the
inner workings of the bank. You may also be able to apply the theories to the management of
your
own finances, giving you the confidence to make informed decisions.
The application of theories in practical work environment is very low. There is a big difference
on
theories and practical work environment. On my attachment, I faced differences between theories
that what I have learned in class and practice that I have done. Where is the money created?
Where is it going? Who does it? This book is about the biggest scam in plain sight in history«.
This is how you read the description of G. Edward Griffin's book entitled the creature from
Jekyll Island, and since its publication it has been one of the best-selling books that explicitly
talks about the power behind the Federal Reserve. According to the theories, the Rothschilds are
the ones that control most of the banks of the world.
They are also at the forefront of what is called an international Zionist conspiracy, focused
entirely
on imposing what is known as the New World Order. Their power goes even beyond the banks,
even having entire governments working for them (like that of the United Kingdom) thanks to
gigantic loans.
3.5. Major problems that I faced during the attachment
 It takes too much time to adopt the organization environment, rules and regulation.
 Supervisor is very busy so that he cannot give full orientation to me about the activity that I
have going to perform completely.
 Finally, the network break up is the main problem that obstacle to me on this attachment.
3.6. Suggestion solution
To solve those problems I have tried to create good relationship with staff members, then they
try to give me useful information and everything that I wanted and they support me to solve the
stated
problem.
 CHAPTER FOUR

4. CONCLUSION AND RECOMMENDATION

4.1. Summary and conclusion
The Commercial Bank of Ethiopia Boditi branch internship has been a fulfilling experience. I
was able to learn more about documentation, risk management, and credit approval in addition to
gaining insights into how a commercial bank operates. The bank offers its clients high-quality
services and has an effective management structure. The bank's opportunities, threats,
vulnerabilities, and strengths are outlined in the SWOT analysis.
This practical attachment was conducted at Commercial Bank Of Ethiopia Boditi branch.
Generally the main objective of this practical training was to determine how the theoretically
learned courses are applied in the real world and I able to know to what extent theories are
implemented in this bank. I practice my full time in this branch. The report includes historical
background of the organization, Structure and its present existence including its present
performance, its objectives, mission, Vision and values. The explanation for attachment
evaluation part is given in brief way which includes rationales of practical attachment,
significance and applicability of the theories and others in class on the Practical work
environment. Practical attachment is also important for the student because, it Improve our
awareness about practical working environment: reduce the problems after Graduation increases
our future working interest.
4.2. Recommendation
4.2.1. Recommendation for university
 I recommend that universities should create favorable practical program for students that may
result in development of practical performance for future career.
 University should follow their students in everywhere they do this practical attachment,
because there are many students that may never do their practice appropriately.
4.2.2. Recommendation for Organization
Based on the findings, the following are the recommendations for Commercial Bank Of Ethiopia
Boditi branch
 Invest in technology – The bank should invest in the latest technological solutions to
improve
its services. This will enable the bank to better serve its customers and remain competitive in
the market.
 Expand into new markets – Commercial Bank of Ethiopia Boditi branch should expand
into international markets to increase its customer base.
 Increase focus on risk management – The bank should invest in training to increase its
knowledge and expertise in risk management.
 Form strategic partnerships – The bank should form strategic partnerships with other
organizations to increase its reach and customer base.
4.2.3 New employees should have hired to reduce the load of work in the organization.
 The organization should have created awareness inside the society to increase customer’s
number and to develop the habit of saving of the society.
 It’s better if the government buys service car for the bureau of each and every branch of
CBE.
It must have improved its customer handling system more than what competitors do to
get the highest public trust.
 To attract more qualified workers the appraisal system should be based on Standard & the
employee performance
 To conclude, Commercial Bank of Ethiopia is a customer-centrism bank in Ethiopia
providing its customers with quality services. The bank has an extensive network
throughout Ethiopia with more than 8250 local branches and ten departments in the
capital city of Addis Ababa and Wolaita Sodo City four branch Bodity Two area Branch
Damote Gale and Boditi branch. The internship has been a great learning experience and
has enabled me to gain knowledge about various aspects of the banking industry.
Reference
 www Commercial Bank Of Ethiopia.com
 From written document in the bank
 From employee of the bank
 From Manager and vice manager
 From some customer’s of the organization
 From the Staff member generally
 The reference for Oromia bank is: Einarsdottir, M., Faix, F., & Friberg, D. C. (2017). The
Commercial bank Of Ethiopia: Expansion and development beyond borders. Corporate
Governance: An International Review, 25(4), 298-31