BAHIR DAR UNIVERSITY COLLEGE OF BUSINESS AND ECONOMICS DEPARTMENT

OF ACCOUNTING AND FINANCE

REPORT FOR INTERNSHIP PROGRAM AT COMMERCIAL BANK OF ETHIOPIA

COMBOLCHA BRANCH

PREPARED BY

ANWAR MOHAMMED..............................................1205988

SUBMISSION DATE: - 18/06/2015 E.C

SUBMITTED TO: - Dr. ALEMNEH

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ABSTRACT
Accounting and finance plays greater role for every financial and non-financial institutions and
organizations especially in detecting and preventing errors as well as preparation of different types of
financial statements. For this matter I preferred to conduct my internship program in CBE combolcha
branch one of the typical example of financial institutions because I believed that it a huge
organization with experienced professionals and helps me to better understand the theoretical courses
with in practical working environments.

The objective of this report is to assess what I get throughout the internship period from different
working departments of the CBE combolcha branch and also I have tried to recommend what I feel the
internship program.

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 ACKNOWLEDGEMENTS
First of all I would like to thank Allah for his almighty and endless help to
complete my internship program.

Secondly I would like to express my deepest gratitude for CBE combolcha

branch manager Ato Mebratie Molla for his continuous support and guidance
from the begging to end date of my internship. And also I would like to thank all
employees of CBE combolcha branch especially w/ro Hana for their hot
welcome, sharing of experience and professional advice.

Finally I would like to extend my thanks for my beloved families for their
financial and moral support throughout my internship period.

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 EXCUTIVE SUMMARY
Commercial bank of Ethiopia is the largest government owned financial institution
that plays a great role in promoting overall financial and economic development
of our country by providing many types of financial services to customers. In this
report I also tried to assess issues related to values, missions, visions, organization
structure and services provided by commercial bank of Ethiopia.

The internship program is very essential especially for accounting and finance
students and it helps us in integrating theoretical courses with practical working
environments and also it contributes for our future professional and carrier
development.

In this report I also tried to mention departments of the CBE combolcha branch
where I performed some tasks and the roles I played in each department. In
general I get lots of practical knowledge from the experienced workers such as
time management skill, team work skill and communications skill.

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Table of Contents
BRIEF HISTORY OF CBE................................................................................................................................6
INTRODUCTION TO CBE...............................................................................................................................7
1.1 OBJECTIVES OF COMBOLCHA BRANCH..............................................................................................8
1.2 MAJOR PRODUCTS AND SERVICES FOR CBE......................................................................................8
1.2.1 Deposit Products and Services....................................................................................................8
1.2.2 Credit Products and Services......................................................................................................8
1.2.3. Interest Free Banking.................................................................................................................9
1.2.4. Electronic Payment Services......................................................................................................9
1.2.5. Money Transfer and Foreign exchange Services........................................................................9
1.3 CBE INFORMATION SECURITY POLICY................................................................................................9
1.4 COMPTETORS of CBE......................................................................................................................9
1.5Number of employees at combolcha branch....................................................................................10
1.6 ORGANIZATIONAL HIERARCHY OF CBE...........................................................................................11
1.7 MAIN OFFICES OF CBE COMBOLCHA BRANCH.................................................................................11
1.8 WORKING DEPARTMENTS IN CBE COMBOLCHA BRANCH...............................................................12
1.8.1 General Management :............................................................................................................12
1.8.2 Controlling Department:...........................................................................................................12
1.8.3 Operations Department:...........................................................................................................12
CHAPTER TWO...........................................................................................................................................13
2.1 PLAN OF THE INTERNSHIP REPORT..................................................................................................13
2.2 INTERNSHIP TRAINING AREAS.........................................................................................................13
2.3 ACHEIVEMENTS FROM THE INTERNSHIP PROGRAM.......................................................................14
2.3.1 DIGITAL BANKING OFFICER.......................................................................................................14
2.3.2 ACCOUNTANT POSTION............................................................................................................14
2.4 MY REFLECTION ON THE OVER ALL INTERNSHIP PROGRAM...........................................................14
2.5 SKILL TRANSFER FROM THE INTERNSHIP.........................................................................................15
2.5.1 communication skills................................................................................................................15
2.5.2 Team work skill.........................................................................................................................15
2.5.3 Time Management skill.............................................................................................................15
CHAPTER THREE........................................................................................................................................16
RECOMMENDATION ON THE INTERNSHIP PROGRAM...........................................................................16
Helps me to apply my theory............................................................................................................16
Helps me to get a feel for the work environment..............................................................................16
helps me to know myself and to get confidence...............................................................................16
Helps to build networks.....................................................................................................................16
BRIEF HISTORY OF CBE

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. 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. Currently CBE has more than 35 million account
holders in its more than 1838 branches and the number of Mobile and Internet Banking users
also reached more than 5.5 million as of June 30, 2022. Active ATM card holders reached more
than 7.7 million.

CBE is the first bank to introduce modern banking to Ethiopia. It was once the leading African
banks with assets of 485.7 billion Birr as of June 30th, 2017. It now has over 1500 branches
across the country and plays a significant role in the economic progress and development of the
country.

CBE is also the first bank to introduce Western Union Money Transfer Services in the country
and currently working with more than twenty money transfer agents like Atlantic International,
Xpress Money, and Money Gram. CBE has reliable and enduring relationships with
internationally recognized banks across the world.

CBE strongly believes and understands that there is an impact on communities and the
environment due to its business activities which in turn will have a significant risk on its credit
lines and the overall economic growth of the country

Combolcha branch is one division of the largest CBE and it is established in 1968 E.C in
kombolcha city. Initially it provides services like deposit, loan, foreign exchange and financial
advice services all these services provided manually. Today it provides services like deposit,
loan, interest free banking, electronic banking and many others digitally .
 INTRODUCTION TO CBE
CBE is like any other business it is financial institution established for maximizing profit by
providing financial services to its customers. It generates revenue by charging fees for services
performed and interest revenue from loans provided to customers. It also plays a crucial role in
facilitating economic development by providing working capital loans, trade loans, and
customer loans to support the industrial, service and agricultural sectors financially .

VISION

Commercial bank of Ethiopia has a vision of becoming a world-class commercial bank financially
driving Ethiopia's future by promoting economic development.

MISSION

Commercial bank of Ethiopia is committed to realize stakeholder’s values through enhanced

financial intermediation using the best professionals and technology .

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: The bank committed to the highest ideal honor and integrity.
Professionalism and empowerment
Innovative Organization: The bank encourages new ideas that can improve customer
experience and the banks experience.
Teamwork: The bank recognizes the importance of team work for the bank success and
also respects diversity of view point.
Respect for diversity and corporate citizenship
Quality service & excellences: The bank committed to offer quality service to customer
aspires to brand to with quality is the mind of customer and general public.
Public trust: we understand that the sustainability of our business depends on our ability
to maintain and build up public confidence.
Employee satisfaction: The bank recognizes the employees as valuable organizational
resources.
 Public confidence: The bank understand that the sustainability of bank business bank it

depends on its ability to maintain and build up public confidence.

1.1 OBJECTIVES OF COMBOLCHA BRANCH

Every organization is established for their own objectives. To achieve they have to work hard
and follow up effectively.

Commercial bank of Ethiopia combolcha branch has the following objectives.

To implement management information system.

To maximize customer satisfaction.
To develop competence with other private banks.
To build change for all bank staffs.
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

1.2 MAJOR PRODUCTS AND SERVICES FOR CBE

1.2.1 Deposit Products and Services
The Bank provides different deposit products and services that enable customers to save
money and store valuable property.

Savings Account

This is an interest-bearing deposit account. CBE offers different types of savings accounts
designed to address needs of different sections of the society . 5

Fixed Time Deposit

This deposit account allows customers to deposit their money for agreed term without
movement and receive a higher interest rate than the prevailing interest rate for savings . 5

Diaspora Account

This account is designed for Ethiopians and foreigners of Ethiopian origin living abroad and
companies owned by them to deposit money in USD, GBP or EUR.5

1.2.2 Credit Products and Services

CBE provides credit for working capital and expansion and facilitation of local and international
trading activities. It also provides short, medium and long term loans.
The following are the major loan types provided by CBE.

• Overdraft Credit Facility • Merchandise Loan Facility

• Warehouse Receipt Financing • Pre-shipment Export Credit

Facility

1.2.3. Interest Free Banking

Sharia-compliant finance or Interest Free Banking Service is an alternative banking service that
operates based on the principles of Sharia which prohibits at the core the receipt and payment
of interest as well as working in areas forbidden by the religion of Islam.

CBE offers the following Interest Free Banking Services:

• Deposit and Investment and financing and guarantee

1.2.4. Electronic Payment Services

CBE provides different banking services via electronic channels.

CBE Birr and transfer Money Buy goods and pay Bill

Check Balance, ATM and mobile banking Internet banking and point-of-
sale terminal (POS)

1.2.5. Money Transfer and Foreign exchange Services

6CBE provides services local and international money transfer as well as purchases of foreign
currencies፡

1.3 CBE INFORMATION SECURITY POLICY

CBE are committed to safeguarding the confidentiality, integrity and availability of
all physical and electronic information assets of the company and its clients to
ensure that regulatory, operational and contractual requirements are fulfilled.

1.4 COMPTETORS of CBE

Like any other businesses CBE have also competitors who involves in the financial industry and
also there is a competition to maximize their profit by attracting large amount of customers and
by maximizing their market share. For example in kombolcha city there are many privately
owned banks like bank of Abyssinia, Awash bank, Abay bank, Dashen bank and many others
who provide the same financial services like CBE. So in order to maximize its profit and market
share CBE should provide better financial services to its customers because of business is
impossible without customers. Until now CBE is the dominant one but in the near many privately
owned banks are emerged as a strong competitor for the bank industry. The newly formed
 banks are trying to shift the banks work to them by exceeding commercial bank of Ethiopia by
more salary for their employees and by providing some advanced services for customers

1.5Number of employees at combolcha branch

Role of employees Number of employees

Branch Manager 1

Line Managers 3

Senior Officers 7

Customers relationship officer 1

Digital Officer 1

Branch Control Officer 2

Banking Business Officer 12

Junior Banking Officer 8

Cash Office Attendants 2

Lead Security Officer 1

Customer Service Managers 2

In general commercial bank of Ethiopia has around 22,908 employees, who staff its
headquarters and its over 1000+ branches positioned in the main cities and regional towns. The
latter include 120 branches in the national capital Addis Ababa. Consequently combolcha branch
of CBE have more than forty employees including branch manager, customer service managers,
senior officers, customer relationship officer and many other employees.
1.6 ORGANIZATIONAL HIERARCHY OF CBE

1.7 MAIN OFFICES OF CBE COMBOLCHA BRANCH

The main office for CBE is located in Addis Ababa. But in kombolcha it has no main offices and
all CBE branches in kombolcha. Including the combolcha branch they use the North East Region
Dessie district as their main office. The Dessie district is located in city of Dessie that is 20
kilometers far from kombolcha including the combolcha branch use the North East Region
Dessie district as their main office.
1.8 WORKING DEPARTMENTS IN CBE COMBOLCHA BRANCH
CBE has many departments with their own specific functions .But specifically in combolcha
branch they have three main departments such as general management, business department,
operations department and controlling department with their own specific delegated tasks.

1.8.1 General Management:

This department develops and executes overall business strategies. It is responsible for the
entire organization. General management deals with determining overall business strategies,
planning, monitoring execution of the plans, decision making, and guiding the workforce, and
maintaining punctuality and disciplinary issues..

This department mainly concerned with providing financial services to customers, mobilizing
resources through different means and digital banking

1.8.2 Controlling Department:

This department mainly deals with managing quality of services provided to customers,
assuring completion of error free transactions and managing and improving relationship
between employees of the organization.

1.8.3 Operations Department:

It performs tasks like back office, cash management and facilities management .
CHAPTER TWO
2.1 PLAN OF THE INTERNSHIP REPORT
My internship program lasted for more than a month from 25th of August to full of September.
But in this short period of time I experienced a lot about the nature, functions, roles and
structures of financial institutions practically beyond theoretical back grounds

As I mentioned before I conducted my internship program in one of our country's prominent

example of financial institutions that is commercial bank of Ethiopia, combolcha branch that is
located in city of kombolcha. I preferred to conduct in CBE because of it is one of the largest
financial institution that plays a great role in promoting overall financial and economic
development of Ethiopia and it is best suited organization for undertaking internship by a
business and economics student.

2.2 INTERNSHIP TRAINING AREAS

 In the first week of my internship I met one of the businesses banking officer and they sit on the
front stage and they have direct contact with many customers per day. And also I had the
opportunity to adopt wide variety of customers’ interests and behaviors. The business banking
officer processes many routine transactions per day usually their activity needs to be accurate
and free from errors.

Some major activities for business banking officers are

Receiving from and providing cash to customers

Opening and closing different types of customers’ accounts

Giving foreign currency exchange services to customers

Making reconciliation and checking their cash balance

2.3 ACHEIVEMENTS FROM THE INTERNSHIP PROGRAM
From these area I understand what formalities needs to be fulfilled by customers to get
services , the way of treating wide variety of customers with different interests and being error
free and accurate during undertaking and recording customer transactions.

I also fill account opening files for customers collecting photographs, ID copy and providing to
customers service officer for authorization.

I opened some customers’ accounts by using the customers’ services officer system access and I
have tried to solve simple customer problems by identifying their needs and referring to the
appropriate body.

2.3.1 DIGITAL BANKING OFFICER

This department mainly concerned with providing digital banking services such as mobile
banking, ATM cards and internet banking services to customers.

In this area I played some roles like filling CBE birr, ATM cards, mobile banking and internet
banking formats to customers, activating dormant CBE birr and inactive mobile banking
accounts by collaborating with digital banking officer. And also I show how to use these digital
products to customers.

2.3.2 ACCOUNTANT POSTION

I also try to spend nearly one week with the accountant of the CBE branch and I have tried to understand
the basic journal entries maintained for transactions and prepared income and balance sheet
statements.

And also I have tried to undertake works related with preparing employees payroll sheets by using inputs
of employees time attendance data for calculating employees gross earning and calculating their net pay
by considering all allowable deductions including income taxes under the Ethiopian tax rules.

2.4 MY REFLECTION ON THE OVER ALL INTERNSHIP PROGRAM

As I mentioned above I have tried to undertake works with accountants, customer service
officer and digital banking officer. All these areas need to undertake their works with great
accuracy. Especially when the accountant maintains journal entries for transactions and the
business and digital banking officers must have collect correct data from customers. As an
internee I get practical knowledge about financial institutions and their services, also
introduced to largest organization with diverse culture and varied customers interests, and
introduced to some roles of accountants such as making journal entries and payroll sheets as an
accounting and finance student.

Since CBE is a typical example for financial institutions in Ethiopian context it helps me to better
understand the course financial institutions and markets. Because CBE provides short term and
long term loans to the deficit sector of the economy as well as it plays the role of maturity
intermediation for long term fund borrowers and short term fund creditors. Even if it is not that
much expanded it provides liquidity function by exchanging the great Ethiopian renaissance
dam bond for cash to the bond holders.

2.5 SKILL TRANSFER FROM THE INTERNSHIP

After the internship program I can say that I am efficient in acquiring necessary skills such as

2.5.1 Communication skills

I spent more than a month with in more than three service areas and I have better coordination and
communications with the business and digital banking officers, other internee students and the
managers. Communication is necessary because cooperation is key of success to organizations.

2.5.2 Team work skill

I also had the chance to meet other three internee students from other universities we
accomplish many tasks together and this helps me to acquire team work and cooperation skill .

2.5.3 Time Management skill

CBE have regularly scheduled working hours for employees and I always attend my internship
work on time like any other CBE employee and this helps me to use my time with a program.

In my opinion the internship program is very essential for all business and economics students
because it helps us to look at our surrounding business environments and to gain practical
knowledge and experience about what we learnt in theory. It is necessary for acquiring skills for
our future carrier development and professional quality because there are many experts,
professionals and qualified individuals who transfer basic practical knowledge for us.
 CHAPTER THREE
RECOMMENDATION ON THE INTERNSHIP PROGRAM
In my opinion the internship program is absolutely necessary for undergraduate
students and for their future career development for the following reasons .
Helps me to apply my theory
Internships offer me the chance to put what I am learning into action, in a real-world
environment. This helps me to better understand the theories and strategies I have been
reading about, cementing the learning process and giving me a greater focus.

Helps me to get a feel for the work environment

For students who are exploring our career options, this internship is great! By joining a team,
we will have a much better understanding of what it’s like working at a particular company and
get a clearer idea of the industry itself. This knowledge will help us in our job hunting in the
future, giving us a better idea of the types of jobs we want.

Helps me to know myself and to get confidence

Helps me to l have a much clearer idea of my own strengths, weaknesses, likes and
dislikes. Most importantly, knowing that I have hands-on experience will give me far
more confidence when it comes to job seeking and interviews.

Helps to build networks

We’ll meet colleagues and team members, take part in meetings and get to know new people
in a professional environment.
REFERENCE