COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF ACCOUNTING AND FINANCE

Group 18

INTERNSHIP REPORT

BUNNA INTERNATIONAL BANK ARBAMINCH BRANCH

Group members ID

1) KENZIA FEDILU ………………….………SSHR/1262/12

2 KIRUBEL SIYUM …………………SSHR/1294/12

3) KIRUBEL TIZAZU…………………..SSHR/1296/12

4) MELAKU YIRMANI…………....…… SSHR/1472/12

5) MESFIN CHAFO………………………. SSHR/1533/12

6) MIHIRETU DUBALE……………..…….SSHR/1566/12

ARBAMINCH ETHIOPIA SUBMISSION DATE FEB 2023

ACKNOWLEDGMENT

Even if we have no word to express our feeling to thanks to God. First of all we would like to
thank almighty God ( allah ) in helping and leading us in every microseconds on our life.

We would like thanks to bunna international bank workers they helping us to complete our goal
and effective achievement, and also especially we would like to thank bunna international bank
manger at arbaminch branch ( sikela ) Mr alemayehu, Mr goche ( bunna international bank
arbaminch branch human resource officer).

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Abstracts

Bunna international Bank S.C. is among the private banks in Ethiopia which has recently has
joined the Banking business of Ethiopia following the ideal monetary improvements saw in the
nation. The bank has officially above 100 branches in Ethiopia and they serve provide their
services, the arbaminch branch is one them. It’s located at the downtown of the city at around
sikela. it provides services since 2015. bunna bank is one of recently formed commercial bank in
Ethiopia. It is service sector that provide financing and investing an asset on core sectors and
profitable opportunities. In 4 days of our internship we gladly experience many things related to
our fields such as customer service and reception, cash and cash equivalent treatments, and
payroll sheet of employee of the organization.

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Table of Contents
Chapter One: Introduction..........................................................................................................................1
Background study....................................................................................................................................1
Mission vision and core value..................................................................................................................1
Nature of the organization......................................................................................................................2
Organization’s activity............................................................................................................................3
Chapter Two: Objectives of the internship..................................................................................................5
primary objectives...................................................................................................................................5
specific objectives....................................................................................................................................5
Chapter Three..............................................................................................................................................6
Initial job responsibilities.........................................................................................................................6
Educational value of the internship.........................................................................................................7
Chapter Four................................................................................................................................................7
Critical analysis and conclusion...............................................................................................................7
SWOT Analysis.........................................................................................................................................7
Conclusion...............................................................................................................................................9
Appendix...............................................................................................................................................10
Chapter One: Introduction
Background study

Bunna international Bank S.C. is among the private banks in Ethiopia which has recently has
joined the Banking business of Ethiopia following the ideal monetary improvements saw in the
nation.

The Bank has obtained its license from the National Bank of Ethiopia (NBE) on June 25, 2009,
in accordance with Licensing & Supervision of Banking Business Proclamation No. 592/2008
and the 1960’s Commercial Code of Ethiopia.

The Bank officially commenced its operation on October 10, 2009 with subscribed & paid-up
capital of Birr 308 million and Birr 156 million, respectively. Bunna International Bank has more
than 11,200 shareholders, which makes it one of the strongest public-based private banks in
Ethiopia. However, the paid-up capital has increased to over Birr 2.1 Billion, and the number of
shareholders has increased to over 13,024, which makes it one of the strongest and public based
private Banks in Ethiopia.

The bank has officially above 100 branches in Ethiopia and they serve provide their services, the
arbaminch branch is one them. Its located at the downtown of the city at around sikela . it
provides services since 2015.

Mission vision and core value

Vision
To become one of the top there commercial banks in Ethiopia by the year 2030. And to be a
public-powered and uniquely flavored Bank.

Mission
To provide commercial banking services to enhance values of key stakeholders and win public
trust using professional employees and state of the art technology. and to provide distinctly
flavored banking services with unparalleled commitment to enhance values of our key
stakeholders and ensure public trust through diversification, state-of-the-art technology, and
ethically motivated...

Core values

 Winning: they have a strong conviction to outperform thee banning competition in an

ethical manner: by striving for excellence and exercising highest level of professionalism.

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  Respect: they respect each other’s value. Difference and contribution to our customers,
our shareholders ourselves one vendors and our community. And also recognize that
everyone is important and has a role to play. They focus on support collaboration and
care while we treat our customers shareholders. Regulatory body and the society.
 Responsibility: they act responsibly to balance the interest of our stakeholders.

Nature of the organization

bunna bank is one of recently formed commercial bank in Ethiopia. It is service sector that provide
financing and investing an asset on core sectors and profitable opportunities.

Services
 Deposit & account services
 Loan and advance services
 International banking services
 Forex bureue services
 Loan and international money transfer services
 Local and international guarantee ….. and so on.

Unique Services

These services enable customers to overtime meet future plans and for contingency. This account
is designed for the business community, salaried individuals, NGOs and etc

 Bunna Gold Checking Account

It is a multi-service interest-bearing current account package

 Bunna Star
 Bunna Investment

It is recurring deposits account with a cumulative term deposit feature.

 Bunna Negotiable Order of Withdrawals

 Bunna Money Market

An interest-bearing current account that facilitates the fund transfer process from current account
to this special interest-bearing account

 Bunna Salary Drawing Account

 Bunna Special Purpose Account

Loans

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Bunna offers different types of loans for legitimate commercial and personal activities. The
following loan services Advances, Regular overdraft facility, temporary overdraft facility, Over
drawls On, Regular O/D, Advance on import bills, Merchandise loan, Term loan, Guarantees,
and letter of credit facilities.

Acceptable Collaterals include

 Buildings
 Motor Viechles
 Machinery and equipment
 Trade receivable
 Share Certificates

Other Services

Bunna Bank Share Company (BB) runs its operations with modern information technologies for
its value-adding customer services. Furthermore, BB is running different ICT projects to create
more convenience for the customers to reach them anytime, anywhere, any device. BB is also
working to enhance the infrastructure for organizational, national, and international business
connectivity.

BB’s Core Banking Services, Customer Relationship Management, and straight-through-

processing capabilities are powered by Infosys Finacle. BB has integrated its services with the
Ethiopian Automated Transfer System (EATS), National Switch (EthSwitch), Ethiopian
Commodity Exchange (ECX), and the Ethiopian Credit Reference Bureau (ECRB).

Organization’s activity

The baking system of bunna international bank (arbaminch branch) is divided in to three major
division. These divisions are:

 General banking
 Credit and Advance Department

General banking activities

General banking is the starting point of all the banking operations of BIB. It is the department,
which provides day-to-day services to the customers and develops banker customer relationship
by opening different types of account and by providing prompt services to the customers.
Officers of this department have to perform the task given below :

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  Opening new account
 Account closing
 Paying order issue
 Cheque book issue
 Clearing house activity
The general working department is divided into four parts to work effectively.
 Account opening
 Clearing
 Account
 Cash
Credit and advance service
Bank’s basic work is to create a channel through depositing money from the surplus unit and
provide funding to borrowers. Thus the necessity of credit department in bank occurs. The credit
department is a very important department of a bank. The money mobilized from ultimate
surplus units are allocated through this department to the ultimate deficit unit (borrower). The
success of this department keeps a great influence over the profit of a bank. Failure of this
department may lead the bank to huge losses or even to bankruptcy. Standard Bank’s credit
department also tries to do their job perfectly. Credit and Advance department has four sections
they are- Loan, Statement, Recovery and Bank Guarantee.

Lending Criteria of BIB Entrepreneur has to be creditworthy and competent enough to run the
proposed industry. The project should be viable from organizational technical, commercial, financial
and economic points of view. Some principles or standards of lending are maintained in approving
loans in order to keep credit risk to a minimum level as well as for successful banking business. The
main principles of lending are given below:

Liquidity: Liquidity means the availability of bank funds on short notice. The liquidity of an
advance means it repayment on demand on due date or after a short notice.

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Safety: Safety means the assurance of repayment of distributed loans. To ensure the safety of loan
the borrower should be chosen carefully. He should be a person of good character & capacity as well
as bank must have to maintain eligible number of security from borrower.
Profitability: Banking is a business aiming at earning a good profit. The difference between the
interest received on advances and the interest paid on deposit constitutes a major portion of the bank
income, besides, foreign exchange business is also highly remunerative. The bank will not enter into
a transaction unless a fair return from it is assured.
Intent: Banks sanction loans for productive purpose. No advances will be made by bank for
unproductive purposes though the borrower may be free from all risks.
Security: The security offered for an advance is an insurance to fall bank upon in cases of need.
Security serves as a safety value for an unexpected emergency. Since risk factors are involved,
security coverage has to be taken before a lending.

Chapter Two: Objectives of the internship

As a partial fulfillment of the requirements of the BA degree of Arbaminch university collage of
business and economics, we undertook 4 days of internship in Bunna international bank,
arbaminch branch. There were two objectives (primary and specific) of the internship for us.
Following are the details of the internship:

primary objectives

 understanding of the workplace, performing of the activities and engaging

oneself in the working environment
 Develop several accounting skills that will be required in the future

specific objectives

 acquire knowledge of overall banking procedure of commercial banks and their

Impact on banks productivity and profitability,
 Understand the basic operation and services of the commercial banks.
 Understand the level of activities that are essential in generating profitability in
banking sector.

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Chapter Three
Major work done

The 4 days of our internship have been very instructive for us. Bunna international bank
arbaminch branch has offered us opportunities to learn and develop our self in many areas and
achieve our training objectives. After a brief orientation of the bank policies and rules, we were
assigned to work in the reception and customer assistant section on first day.

Initial job responsibilities

During the four days some of the activities that we have worked during our internship were
familiar with what we have studied at Accounting and finance. Many tasks though, such as
[ assistance to the users of bank who need help, segregate and assemble different types of
documents which are used by the bank, give usage highlights to the new users of digital banking
system , providing recent information to the users of the bank which are currently launched by
National bank of Ethiopia]. Participating and learning new skills, both hard and soft, has given
us a chance to find out which areas we want to work in after we complete our internship.

In day two we notice and experience how to treat customer service windows and how to
transaction recording when transaction occur. BIB use cash basis accounting system and every
recording processes pass through digital system including closing entries at the end of the
working day.

On other days we gladly experience cash related fields such as petty cash, checking system,
internal control. In this case when we come to petty cash it is reserved to day to day small
activities and reserved from bank’s safe room. Check is a cash equivalent instrument , it has
some requirements to use check such as trading license, customer of the bank, minimum cash
amount at BIB minimum amount is birr 1000 to use check. And internal control is the most
sensitive issue in the cash basis system because cash is very vulnerable to fraudulent and scam.

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We notice there is separated man power to record the transaction and cashier to prevent this
situation.

In BIB we notice how to prepare payroll sheet of the employee at bank. The salary of the
employees including basic salaries, fuel allowance, house allowance, hardship allowance and so
on, and all the salaries are taxable including hardship allowance. The deduction includes
employees income tax, pension (11% from employee and 18% from the bank) and social
securities and the other things about payroll is confidential,.

Educational value of the internship

The skills acquired from relation to the profession and business environment through the work
were recording the transactions in the cashbook, recording the transactions in general and
subsidiary ledger, verifies the sign of account holder , whether the deposit slip is written
properly, amount of money is given by the clients, amount written in numeric figure and amount
written in word on check and also how to prepare payroll sheet, the techniques to manage
challenges which is related to banking practices etc.

Chapter Four
Critical analysis and conclusion

SWOT Analysis

The SWOT analysis consists of analyzing organizational strengths and weaknesses, and its
environmental opportunities and threat. It helps to identify a strategic niche that the organization
might exploit. SWOT analysis is needed for every organization to identify their strength,
weakness, opportunities and threats as well as every individual for their success. Here the
strength and weakness are generally related with internal environment of the organization on the
other hand opportunities and threats are generally related with external environment of the
organization.

Strength

The followings can be seen as the strength of the Commercial bank of Ethiopia.

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BIB bank has been given the rating as one of best ten positions as far as speediest development
in private division bank.

 The bank believes in maintaining personal relationship with its clients. One of the major
goals of the bank is to build long term relationship with the customer and to create value
for them.
 The bank has its presence above 50 cities and towns.
 Bunna International Bank. has a very efficient administration. The work is done in a
timely and systematic manner for which the efficient administration is responsible.
 The banks financial positions have great growth rate every year which is, major positive
sign for any bank.

Weakness

 Lesser no. of branches compared to its competitors

 The bank hasn't modern promotion way to attract new customer to be members of the
bank.

Opportunity

 Branch Expansion in different areas of the countries.

 Going to foreign markets and exploring the new economies Providing quality service is
one of the major goals of BIB. Though BIB is still lagging behind in upgrading their
software system, the bank has the prospect to select high quality banking software which
will make the banking operation fast and smooth.

Threats

 technology is getting advanced. However, Prime Bank Ltd. is lagging behind. As the
technology is getting advanced, most of the banks, especially private banks are upgrading
their operating system to survive in the industry.
 Foreign banks
 Competition is always a major threat for any organization. In recent years, the number of
private bank is increasing.

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Conclusion

On our internship time Bunna international bank is one of well-known banks in Ethiopia . It is
committed to provide high quality financial service to contribute to the growth of the country. As
bank it is creating employment opportunity for the educated youth, alleviating poverty and
raising the standard of living of limited income group.

The Bank has made remarkable progress, practically in every sphere of its activities. Customers
are quite satisfied about the online banking. The bank has a good reputation by their good saving
interest and customer service.

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Appendix

 Manger of bunna bank arbaminch branch

 human resource management
 digital payroll of employees
 cheque and cash equivalents

 http//www.bunnainternationalbank.com

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