BULE HORA UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF MARKETING MANAGEMENT
SUMMER PRACTICAL ATTACHMENT REPORT ON
COOPREATIVE BANK OF OROMIA S.C, FERENSAY LEGASIYON
BRANCH

NAME: SUFAN ABUSHE

ID No: RU 3636/13

Bule Hora University, Bule Hora, Ethiopia

Aug 17, 2022.

ABSTRACT
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 During the practicum the report was processed to access the skill gap attachment and the

problems observed host organization, the causes of the problems and their solutions on the

respective services and products of my training. The report was conducted on both bank service

and product of OB. The required data was collected by using direct observation, discussion with

concerned parts, using observed service, product and office documents. All the problems caused

because of shortage skilled manpower, lack effective strategies and poor integrity and

organizational commitment to properly implement the lined to the goals of organization bank

industry, lack of commitment, good attitude, skill, knowledge, integration, coordination etc. of

the stake holders of the organizations.

ACKNOWLEDGEMENT

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First of all, my deepest thanks goes to Almighty God for his endless help and make me to stay in
life to this day and enables me to complete my internship. I also would like to express my
deepest gratitude to Mr. Mohamed manager of OB UTA WAYU branch for his enthusiastic
support from the preparation until the final discussion of this internship with frequent follow up
my activities and guide me. I am greatly thanking for my family they had been assisted my
schooling life and to give advice how can I goes with my planning activity to finish my academic
schooling in this University. Finally, I would like to acknowledge all individuals, families and
institutions that helped me materially and morally during the preparation of this paper.

List of Acronyms:

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SWOT: strength, weakness, opportunity and threat

CBO: Cooperative Bank of Oromia

AA: Addis Ababa

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CHAPTER ONE: ORGANIZATIONAL OVERVIEW
1.1. INTRODUCTION
The modern banking industry is a network of financial institutions licensed by the state to supply
banking services. The principal services offered relate to storing, transferring, extending credit
against, or managing the risks associated with holding various forms of wealth. The precise
bundle of financial services offered at any given time has varied considerably across institutions,
across time, and across jurisdictions, evolving in step with changes in the regulation of the
industry, the development of the economy, and advances in information and communications
technologies.
Banks as financial intermediaries are party to a transfer of funds from the ultimate saver to the
ultimate user of funds. Often, banks usefully alter the terms of the contractual arrangement as the
funds move through the transfer process in a manner that supports and promotes economic
activity. By issuing tradable claims (bank deposits) against itself, the bank can add a flexibility to
the circulating media of exchange in a manner that enhances the performance of the payments
system. These deposits may support the extension of personal credit to consumers (retail
banking) or short-term credit to nonfinancial businesses (commercial banking). If so, the bank
aids the management of liquidity, thus promoting household consumption and commerce. By
facilitating the collection of funds from a large number of small savers, each for a short period,
the bank promotes the pooling of funds to lend out in larger denominations for longer periods to
those seeking to finance investment in larger capital projects. Financing investment may take the
form of underwriting issues of securities (investment banking) or lending against real estate
(mortgage banking). By specializing in the assessment of risk, the bank can monitor borrower
performance; by diversifying across investment projects, the bank minimizes some types of risk
and promotes the allocation of funds to those endeavors with the greatest economic potential. By
extending trade credit internationally (merchant banking), the bank can facilitate international
trade and commerce. As one last example, by lending to other banks in times of external
pressures on liquidity, the bank can manage core liquidity in the financial system, thus
potentially stabilizing prices and output (central banking).

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1.2. Historical Background of Cooperative Bank of Oromia.
The history of cooperative banks has been traced back to the financial exclusion faced by many
communities in the 19th century. With the industrial revolution, the emerging financial services
sector was primarily focused on wealthy individuals and large enterprises in urban areas. The
rural population, particularly farmers, small businesses, and the communities they supported,
were excluded from financial services. Thus, cooperative banks were originally set up to correct
this market failure and to overcome the associated problems of asymmetric information in favor
of borrowers.
In respect of Ethiopia, the country has a very low financial service coverage as mainstream
financial institutions are heavily tilted towards the urban centers with good physical
infrastructure, leaving the rural areas underserved. Traditionally, ‘Equbs’ and ‘Idirs’ are informal
institutions that are deeply ingrained in the life of communities and have also been serving
financial needs of the rural society to some extent. Reluctance and low capacity of the formal
financial institutions in the country to serve rural community, a demand-supply gap prevailed in
financial market especially in rural areas, coupled with farmers’ awareness to be organized into
cooperatives and the increasing need to finance cooperatives called for establishment of a
cooperative bank. Furthermore, finance appeared to be the critical bottleneck to sustain the
cooperative institutions and ultimately the farmers. It was all these glitches that initiated the
inception and establishment of Cooperative Bank of Oromia.
Haile Gebre Lube, regarded as the founding father (proponent) of Ethiopia’s cooperatives,
brought the idea of founding the bank for he believed that the best way to fight poverty is
through cooperation. Formally establishing a project office in 2002, the bank’s formation was
realized with majority of shareholders being the cooperative societies. The bank then is
commercially licensed in October 2004 and commenced operations in March 2005. As there are
no legal provisions that allow establishment of a cooperative bank in the country, the bank was
registered in accordance with article 304 of the commercial code of Ethiopia.
The Bank has broad ownership base and diversified ownership structure. It comprises
Cooperatives and Non-Cooperative members. Cooperative member includes Primary
Cooperatives, Cooperative Unions and Cooperatives Federation whereas, non-Cooperative
members includes Organizations, Associations and individuals.

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The Coopbank is now one of the most profitable banks in Ethiopia having a total asset value of
more than ETB 139.56 billion. The bank has 738+ branch networks, 11.2 million account
holders, and more than 11,500 employees. Ferensay legasiyon branches among the branches of
the bank.
1.3. Mission, Vision and Core values.
1.3.1. Vision:
To be the leading private bank in Ethiopia by 2025.

1.3.2. Mission
We root our foundation in communities to provide banking solutions that create greater customer
experience with emphasis to cooperatives and agro-based businesses through proper use of
human resource and up-to-date technologies to maximize stakeholders’ value.
1.3.3. Core Values
The following set of values will serve to guide the words and actions of all our employees;
 Integrity
 Customer Satisfaction
 Learning Organization
 Teamwork
 Cost Consciousness
 Concern for Community

1.4. Corporate Brand Identity

The Bank’s corporate identity is expressed in numerous ways, both explicitly and implicitly.
When considering identity in a broad sense, the term corporate image is often used. It deals with
the general impression of the bank held by the general public, other organizations, interest
groups, including employees, and it touches virtually all aspects of the bank’s activities
The purpose of managing corporate identity is to achieve clear and effective identification of all
activities, consistent with strategic plans for communicating programs.
The bank’s identity should convey a sense of purpose, quality and integrity. It is a task that
requires the full support of senior management and the active involvement of those concerned.

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1.5. The Organizational structure.
1. General share holder
The proper functioning of any association of persons, large or small, requires that the members
of the association come together from time to time to discuss matters of common interest and to
take decisions by common consent or by a majority as may be possible. Like any others
association, a company must also hold meetings for its proper functioning. A company meeting
may be defined as an assembly of persons connected with the company who wish to discuss and
decide matters related to it. Shareholders’ meetings are essential instruments through which the
owners of a company are able to exercise their powers over a company.
Every shareholder has the right to participate in shareholders meeting, the right to vote, the right
to challenge the decision passed, the right to receive dividend, appoint proxy and inspect
documents to make informed decisions. The meetings of shareholders are classified into general
and special meeting.
2. Board of Directors
Share Company being legal person cannot act by itself. It must act through some human agency.
The persons by whom the business of the company is carried on are, termed as directors and
group of directors as an institution is termed as board of directors. The board of directors is the
supervisory and managerial body of a share company. It is established by general meeting from
among the shareholders. The board of directors has power given to it by the law, the
memorandum of the company and decision of general meeting of the shareholders. In general,
the boards of directors’ posses subject to the limit of the company business purpose the power to
act in all circumstances on behalf of the company. Banking company shall be persons with
honesty, integrity, diligence and reputation to the satisfaction of the National Bank. The directors
shall possess the qualification and competency requirements put down by the law and their
appointment have to be approved by the National Bank of Ethiopia.

3. General Manager/CEO

The power of the manager is the power that is delegated by the board of directors. The person to
act as general manager of the banking company has to get the approval of the National Bank of
Ethiopia. Boards of directors decide on substantial policy issues which will be implemented by

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general manager. The general manager carries on day today activities of the company. He/she
represents the company in relation to third parties. He/she enters into contract on behalf of the
company. Hiring and firing of employee of the company, signing on negotiable instruments are
day to day activities of the general manager. The manager has to perform all his activities
according to the power delegated to him, and according to the statutes of the company and the
law.

Furthermore, general manager occupies the position of a trustee for the company and he has to
safeguard the interest of the shareholders and the company. General manager is liable for
damage resulting from infringement of his power or violation of law, statutes and from deliberate
or negligent acts of mismanagement. Such liability may be incurred to the company or third
party as well as individual shareholders. In such case he is liable to the company and third party.
Currently the CEO of cooperative bank of Oromia is Mr. Deribie Asfaw.

4. Executive managers
They are who interested to perform the function relating to policy matters, implementation and
supervision.
5. Functional departments
At head office levels and branches are in charges of the implementation of policy and strategies
of the bank.
6. Auditors
Auditors are other components of the corporate governance under Ethiopian Law. Auditors are
appointed by shareholders and are entrusted with the external control of the company. Their
main functions are to audit the accounts of the company, certify certain information provided to
the shareholders, and prepare reports which must be submitted to the general meeting of
shareholders.
There are two types of auditors; internal and external auditors. The Commercial Code deals with
the appointment, removal, remuneration, powers and duties and liability of auditors. Auditing is
one mechanism of disclosure and transparency under the principles of corporate governance.

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Figure 1. Organizational structure of the Bank.

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1.4 Performance of the Organization.
To achieve the vision, mission and objective of the organization all departments should have to
discharge their responsibility. The employees, directors, team manager, branch manager and
staffs shall comply with their responsibilities. Additionally, the organization should have to be;

 Efficiently provides services in accordance with standards settled

 Comply with the laws and directives national bank to minimize risk.
 Efficient and accurate handling of operational duties.
 Proper utilization of resources and technologies.
 Proper customer handling.
 Timely reporting to the concerned organ.
 Appropriate utilization of human resource and material resources and the like are those
realize the vision, mission and objective of the organization.
1.5. Aanalysis of Organizational performances
1.5.1. Strength: The bank has strength in the following area.
 The bank work with various national and international organizations.
 The bank Have motivation to work with small scale, medium scale and farmer.
 The motivation to introduce new products such as Michu and Furtu platform.
 Technology usage.
 Workers commitment.
 Working on cultural and community-based works
 The bank is well known in discharging its social responsibility
 Working with cooperative societies.
 Lack of head office and fixed asset such as buildings
1.5.2. weakness:
Some the weaknesses are as follows
 Lack of liquidity
 Disagreement between management
 Lack integrity
 Poor facility and resource management and utilization.
 Noncompliance of supervisory body order

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1.5.3. Opportunities:
The best opportunities are as follows:
 The bank is commenced building of several buildings to solve lack of offices and
fixed assets.
 Availability of customer interested to work with the bank.
 Experienced employees available.
 The Chance to work with foreign banks and organizations.
 Opportunity to work with cooperative societies and Unions.
 Digital plat form such as Michu and Furtu will bring business opportunities
1.5.4. Treats:
The following are the serious treats under considerations:

 High competition among other banks.

 political instability and peace problem in the country will have impact on the bank.
 Global and national financial crises and inflations.
 Poor saving culture of the societies.
 Development in technology may change this market beyond their ability to adopt.
1.6. Problems at Ferensay legasiyon branch.
The primary problem regarding the historical background of the organization. This problem rises
due to lack of organized and return document in the organization.

 Lack of customer.

 hate and stigma the surrounding people must wards the bank.

 Lack of liquidity as the bank is in liquidity problem.

1.7. Suggested Solution (Measure) Taken to Solve or at Least Minimize Problems.

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The possible solution I suggested for such problems are the following: -

✔ It should have to arrange its document in proper manner.

✔ It should fulfill all the necessary materials which are technologically improved to facilitate
its service.

✔ It should have increase its customer through promotion and customer attractive activity.

✔ It should have increase customer satisfaction by using technological instrument such as

mobile banking, ATM, and so on.

CHAPTER TWO: ACTIVITY REPORT

2.1. Background of the Department/Division Where You
Working.
Customer service officer department is one of the sectors of Oromia Bank
Shashamane town Uta Wayu branch. It performs its duties and responsibility by
setting specific and feasible goals abd objectives which support to speed up
customer satisfaction and profit maximization of the bank.

2.2. Objectives and Major Responsibilities as well as Activities of the

Department or Division.

2.2.1. Objectives of the Department.

◉ To ensure standardization and uniformity in the customer service process.

◉ To smoothly implement integrated banking solutions in customer service

process.

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◉ To have single source of reference to perform.

◉ To determine duties and responsibilities that each employee at all level in the
customer service process.

◉ To provide efficient and quality service to its customer.

2.2.2. Responsibility of the Department.

1) Account opening:- there are many types of accounts those are:

◆ saving account -- is interest bearing deposit opened by legal and physical

persons, organization and association.

◆ Demand deposit account -- shall mean an interest bearing account

opened only by customers who are literate.

◆ Special demand account -- means a non interest bearing account that is

opened to fulfill the request of customer who for one not wants interest for their
deposit.

◆ Fixed time deposits -- a type of account deposit is received at certain

period of time without movement a minimum of three month and attracts higher
interest rate than others.

◆ Earmarked account -- means account opened with other description after

the name of the account holders such as club, business group, and workshop
account.

2) Duties related to customer service:

◆ opening account

◆ pay cash and receive cash

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3) Telegram - that means send outgoing message and receive incoming message
from other branch.

2.3. The Responsibilities and Major Activities Me as a Member of

Department.
As a department member I also have the responsibilities of performing the
activities of the department. Based on those general activities , I perform the
following specific activities as an apprentice , when I was participating at OB Uta
Wayu branch.

✔ I opened account for more than 45 customers by supporting employees.

✔ I checked the name, date and signature of the customers to be filled

properly.

✔ I participated in different writing and typing activities that help for

customer service.

✔ Protecting the office resources from damage.

✔ I fill different forms by helping customers.

✔ I gave different service for department and customers.

2.4. Performance Evaluation of My Activities.

From the first day that I have started practical work on customer service
department:

◆ I could understand how to deliver bank service to customers.

◆ I could understand the different type of communications in the organization at

all.

◆ I have good communication with others at work place.

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◆ To ask necessary data I could communicate with my manager from time to
time etc...

2.5. Problems Encountered on the Job and Remedial Measures.

There are some problems which affect me on my activities of 45 days. Some of
these problems are from the organization and some are from customers. As
organization some the problems are lack of seats, lack of user(access) for me and
others are the problem of electricity and network those hinder my activities to
not serve customers properly. From customers some customers don't care about
criterias to be fulfilled properly rather than looking only about the service.

Some of them don't sign on the ticket and same signature on the ticket and on
the pass book are different.

No correct order of sender name which is difficult to serve customer

Some of them bring incorrect account number which the system don't read.

Remedial solution I have taken.

◉ I have worked most of the time by standing due to lack of seat.

◉ I have told to the branch manager these problems to be minimized.

◉ Through customers I have told them to fill the criteria properly.

2.6. Problem Division or Department or Suggested Solutions.

The major problems that face the department are the following:
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◆ There is a big internet connection problem or network problem.

◆ There is inefficiency some materials like chair, table, paper, voucher and so on.

◆ Some workers have problems on their behaviour and didn't give proper service
to customers.

Suggested solutions to the problems.

◆ Asking concerned body to get enough network 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 those materials and make available for the
department.

◆ The office should have hire authors employees as additional.

CHAPTER THREE: ATTACHMENT EVALUATION

3.1 Rationales of Practical Attachment.
Rationales of the practical attachment are the practical reason to decide how to
act on the attachments some of the following listed is reason of practical
attachment.

◉ It is for the case that the apprentice to realize the theory in class to real world
through practice.

◉ It is for that the apprentice should compare and contrast the economic
thought with practical work.

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◉ It is that how the problem is identified and the solution is found.

◉ It is for that the apprentice to make strong the relation he/she has with others
on work etc.

3.2 Significance of Practical Attachment.

Since this practical attachment is the connection between theory in class and real
world it has significant. Some of the significance of this practical attachment;

◆ Help to know and compare the relationship between the theory and
real world.

◆ To increase the confidence of students on future work.

◆ To identify the problem in the company for necessary solution.

◆ Help to apply the theory in class for future expected activities.

◆ Help for students how to identify and find solution for problem.

◆ Help to teach others the acceptability of theory in class.

◆ Increase confidence of student for research and etc

3.3 Relevance of Organization with My Study.

From starting date of my practical attachment as the general with the branch and
particularly with the department there is good connection with my study in foreign
remittance transaction. Theoretically since I have studied about foreign transaction
in class and in my practical study how to make transaction of that remittance this
organization is relevant with my practical study. In other way as general as
organization there is also good connection with my study that for that foreign
transaction is the department of the organization and my study is related with it

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that has relation with International trade department again the organization and my
study has good connection.

3.4 Applicability of the Theories and Others in Real World or

Practical Work.
Applicability of theories in practical work environment is very interesting and
important. In economics field there are many theories that applied on real world.

Some theories which are applicable when I conduct this practical attachment are
the following:

The main activity of bank is accepting, depositing and lending money to its
customers which really related to banking and insurance course.

✔ The theories of microeconomics for showing how to maximize profit and

creating customer satisfaction.

✔ The theories of principle accounting used to prepare workers payroll.

✔ The theories of international economics (trade) used to show exchange of

currency.

✔ From English point of view we can get how to write report correctly and
fluently.

3.5 Major Problems Faced Me During the Attachment.

I have faced many problems, during I work this practical attachment the major
ones are mentioned as follows as:

◆ At the beginning time they didn't give me full freedom to do activities

independently.

◆ Lack of the data of the organization as the branch.

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The problems related to this is how to start to write the report whether as whole
or as branch.

◆ To keep the secret of the organization the manager didn’t give me response
about the problems currently faced the organization.

◆ Shortage of some extra or additional working materials.

◆ Some employees are not interested for sharing their experience.

◆ The main problems faced me on this practical attachment are the problem of
lack of the seat and user which affect me to not work as expected.

3.6. Suggested Solution and Way Forward for Summer Attachment.

The problems mentioned above can be solved by:

◆ I was try to adapt new environment and working condition gradually by

studying the behavior of department member and and sharing experience among
them.

◆ 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.

◆ I have got some data about the organization from the employers and from
my daily activities.

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CHAPTER FOUR: CONCLUSION, RECOMMENDATIONS and
SUMMARY

4.1. Conclusion
Oromia Bank can't wait to achieve an integral service and product planning; the
situation is serious in terms of social and economic profit. The risk is very high and
demands sooner actions. It is necessary to integrate accounting principle
strategies (organizational) with a domestic service program (small actions).

Implementation of an integral customer service system will avoid social and

economic risks of every local condition and will maximize the quality of service.
Traditional bank management strategies, focusing only on routine services are too
simple in today's bank management practice. This work can help to resolve the
problems not only in OB, even in others banks of the area with the same situation

4.2. Recommendations
While I doing my practical attachment, I observe some issue in lens of my eyes.
Therefore, I would like to suggest on some issues that I observed during
accomplish my practical attachment at OB Shashamane town Uta Wayu branch.
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Firstly, the OB should have to expand its branch around small town in order to
service competition from its competitors.

Secondly, I would like to suggest on the effort of 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 woman in development process.

However, the office is lag behind in order to promote growth which is the
backbone of the development. This is due to lack of enough information in the
organization which play a great role in order to meet its objective. The
organization needs to change this situation by looking for bank expert which play
a great role in order to promote banking system.

Finally, I would like to suggest OB Shashamane town Uta Wayu branch have to
work properly to achieve their goals and also to address other problems by
working in cooperation with other organizations, especially non-governmental
organizations.

4.3. Summary

Oromia Bank was established in accordance with pertinent laws, regulations and the 1960
commercial code of Ethiopia, by the monetary and banking proclamation No 83/1994 and by
licensing and supervision of banking proclamation No 592/2008. to provide banking service and
product. It was registered on 29 October 2004 in accordance with article 304 the commercial
code of Ethiopia and was licensed by National Bank of Ethiopia as proclamation 84/1994 that
provide for licensed and business. The banking commercial on 8th march 2005.

Oromia Bank S.C (OB) formely known as Oromia International Bank (OIB) was established on
the 18th of september, 2008 according to the 1960 commercial code of Ethiopia. Oromia Bank
has begun its operations a month after its foundation on the 25th of October, 2008.
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References
The annual report of the organization by the April 22 of 2017.

The website of the organization; www.OBbank.et, http//www.OB

servlet/PROD/Browser Servlet/.
The interview; information from the employers of the organization.
The daily and weekly activities.

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