Nib International Bank S.

Text
Name: Desta Merga
Id: 102574
2022 Accounting section I

Internship
report

Tenure of Joining:

From July 14 - Sep 2

Yielded to: Mr. Tadios

Friday, October 7, 2022

“Man is an animal that makes bargains: no other animal does this - no dog exchanges bones with
another.”

Adam Smith, The Wealth of Nations

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 Table of Contents
Acknowledgement .....................................................................................................3

Abstract ......................................................................................................................4

List of Acronyms/Abbreviation .................................................................................5

Introduction ...............................................................................................................6

BACKGROUND .....................................................................................................7

History........................................................................................................................8

Mission, vision and value of Nib Bank ....................................................................9

S.W.O.T Analysis.....................................................................................................10

Department of work and responsibility: .................................................................11

what I had learned ..................................................................................................12

NIB’s Products ........................................................................................................13

Cheque enquire .......................................................................................................14

Account opened today .............................................................................................15

Data Gathering Tools..............................................................................................16

Reference .................................................................................................................17

appendix...................................................................................................................18

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 Acknowledgement
It is my responsibility to pay reverence, respect and veneration and to give praise and credit to the
source of all knowledge, and truth. And we do that by saying (or scribing) the almighty who
sometimes called ‘YAHWE’, and sometimes called Jesus and sometimes called ‘elshadai’ will be
satisfied-Amen.
I wish to show my genuine appreciation to Nib International Bank S.C and to all those who had
been there mentoring and critiquing without exhaustion. Especially and, specifically my advisor
Mr. Tadios; Subsequently, we’d like to thank the following people. for they had been a great help:
Mrs. Yehenew Mengestu MBA. (manager at tropical branch)

Mr. Temesgen Getaneh, Mrs. Kidest Tezera, Mrs., Amsal(accountant), Mr. Mezgebu
Meseye (cashier).

Last but not least, a debt of gratitude to all members of Nib International Bank staffs who
sometimes had been prodigious and sometimes obliging.

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 Abstract
In a Dynamic society where everything is fluid and so much volatile only dynamic people can
build sustainable organizations and only effective employees can contribute effectively. Business
in a sense is, constant un-ease and anxiety, it is intently accompanied by busy-ness (hence the name
business). The main elucidation of this examination is to assess the banking world with vivid
experimental inquiries, such as: how can a bank be neutral of races and profiling? How frauds can
be better handled so on and so forth. The purpose of this research was investigating factors
affecting communication inside and outside of the stuff. A questionnaire survey was undertaken
among 6 employees of the branch company to analyze their perceptions regarding those predefined
culture of banking. In this study, the researcher used descriptive research design and data was
collected through close-ended questionnaires. According to the study, in order to maintain
neutrality among a culture where there is diversity, it is found that the banking business is indeed
obliged to be frugal with these factors: public exposures, hiring diversified employees and finally
cut of the public from excessive know how if the bank with strict management to certain creed.

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 List of Acronyms/Abbreviation
I. NIB – Nib International Bank
II. SWOT – Strength, Weakness, Opportunity and Threat

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 Introduction
As we all know Nib Bank is one of the primary and prolific among alike bank in our time. The
prospect idea of nib bank wants to address is being an icon of service excellence and a leading
commercial bank in Ethiopia. And it has set to provide customers with focused and innovative
technologies.
The most primary strength of nib bank has no racial profile like Oromia bank and Amhara bank or
religious hindrance like hijira and some other banks. I think the main weakness is the shortage of
branches and that is planned to be fixed in the future. As a used there are many Opportunities:
wide working space: allows to function tasks more flexibly, variety or services and so on.
There are 6 basic folders important for nib bank activities:
Retailer opening, Financial application, Nib report, Interest free banking, External user admin
online banking

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BACKGROUND
Nib bank is probably the primary bank we have in our mind, which proprietor is shared stake has
been established in the late 90’s with capital of Birr 150 million and 717 Shareholders. The bank
is one of the finest and viable among alike banks in our time. In year 1999, Oct 8 it officially began
giving services to clients. Until now, it has been rolling in the business world with fine and modest
benefits by enhancing its features day to day.

By the time, it had been established, 15 years ago it had only 27 staff members and stipulate basic
services such as card base and normal savings. Meanwhile, the bank enhanced its capability by
having added 4770 more employees and multiple digital banking techs.

Nib bank in a sense we can say the first bank without cultural, racial religious prejudices, and also
the first one to maintain neutrality among other competitive rivals in the business. Nib bank now
has a reputation range to compete with the best providers with ready-to-go services through the
impressive complex digital as well as manual banking system (not forgetting it only has been there
for 15 years). Up to this day the bank has created more than 5000 job opportunities; not to mention
remote workers. Unlike equal budgeted company’s, nib bank work with only limited efficient
employees. Using these employees, it gives 24/4 service aided with ATMs.

For the past 16 active years, the company has evolved through many stages. One is: The
competence phase; in which the Bank tries to fit to the financial business world. as I have learned
from my studies, NIB has been promoting its business using many systems such as: blogging, TVs,
Instagram, and sponsorship platforms.

The second one is a virtual platform crisis: which we all are familiar with. “To some extent, we
have passed that crises,” told me Mr. Yehenew Mengestu. (manager at tropical branch.)

The final stage is client managing crisis and competitiveness. This is the main happening on every
business in every growing nation. Nib bank, since very first day managed to cope up with volatile
environment and welcomed every obstacle with strategic moves. However, was late using basic
trivial platforms, such as: opening, TV shows, billboard advertisement etc.

Through and through, starting with 150 million capitals, and 700 stake holders now have evolved
into a giant, not only multi-millionaire, but multi-billionaire business surpassing 4000
stakeholders. The new skyscraper HQ is also planted in the midst of business arena
‘Mexico’[legehar.]

Overall, I believe the bank is in a stable and suitable recurring business but has yet to reach its full
business and art potential; having its bright and dark sides nib bank is functioning safe and sound
for the time being.

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 History
The name has been used in the parliaments, in political campaigns, in farm fields, in the military
strategy of sun Tzu, Honoring and signifying those who are prolific, abundant and hard
maneuverers. Bee. Nib International Bank was established on 26th of May 1999 below license no.
LBB/007/99 in accordance with the business Code of Ethiopia and therefore the Proclamation for
Licensing and oversight of Banking Business Proclamation no. 84/1994 with the paid up Capital
of birr 27.6 million and approved capital of Birr 150 million by 717 Shareholders. The Bank
commenced its operation in 28th of October 1999 by only 27staff members. It joined the industry
next to the 5th authorized bank being the 6th licensed private bank in the nation.

Other than rendering consummated Domestic and International Banking services, the Bank applied
Mobile and web Banking thru which it issues NIB cards and has placed its ATM’s at varied
locations throughout the Country to produce its distributed merchandise in convenient ways to its
customers. Moreover, to boost the applying of contemporary banking technologies and supply
competitive service via multiple card banking services, the Bank has established a strategic
partnership with MasterCard, VISA and Union Pay branded cards, thus making the bank ice
breaker by providing international payment service. A complete preparation to upgrade the Bank’s
T24 application to the newest and strong unleash is completed.

With a read to introduce new varieties of merchandise, apart from the previous innovative
merchandise and services Gojo-Guzo foreign exchange (FX)linked deposit and loan merchandise,
credit merchandise to employment agencies and staff operating abroad to boost FX generation and
Murabaha interest free funding merchandise were developed.

The development of the third strategic set-up is currently at implementation part and putting a
brand new structure formulating policy manuals and cascading the assorted targets of the strategic
arrange to the implementing units.

The coming Billion buck construction of NIB’s Headquarter and Hawassa buildings are increased
as per the schedule and therefore the construction of 4-kilo and Hosahna buildings would be
absolutely completed in 2018/19 budget year.

Among others, the Bank has registered a gradual growth in all aspects of its operations since its
initiation. At the tip of March 2018/19, its total deposits and loans and advances stood at regarding
25.1 billion birr and 17.5 billion severally. Total assets conjointly grew to regarding 31.1 billion
and paid up capital to 2.5 billion. the extent of proceeds before tax reached 673.1 million birr in
March 2018/19. The Bank’s shareholders are intent to 4,585 and therefore the total variety of
consumers exceeds 812,627. The Bank’s staff reached over 4,797 as of March 2019.

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 Mission, vision and value of Nib Bank
These are the main ideas that Nib Bank wants to address.

I. Vision
To be an icon of service excellence and a leading commercial bank in Ethiopia.
II. Mission
To provide customer focused, and innovative banking services through motivated
staff and state of the art technology.
III. Values

Transparent
Accessible
Teamwork
Accountable
Results-oriented
Innovative

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 S.W.O.T Analysis
strength:
the most primary strength I think is that nib bank has no racial (Oromia bank for Oromo
people, Amhara bank for Amhara) or religious hindrance/stereotype. the best thing about
nib bank is it is not for certain group of people, it isn’t for certain group of religion, it is
just for all human beings.
nib bank has the 3rd greatest net revenue as reported in allaboutethio.com[1] in 2018.
The bank now has 520,000 customers. It is better in contrast to mainstream banks.

shareholders also recently agreed to increase the bank's capital to five billion ETB with
the shares only being sold to existing shareholders.

weakness
shortage of branches.
Accessibility: the face to face interaction involve no alternative language usage.
High interest rate for loans, that consequentially exclude the middle class.
No mainstream ads.
Shortage of ATM in remote areas
No alternative power usage, if the light is out no alternative ways to reach the access

Opportunities
The brand has already broad horizon, thus helps the bank acquire instant trust from
customers.
The HQ is placed in the midst of business arena that help the business prevail even
more.
Wide working space allows to function tasks more flexibly

Trait
High governmental tax soon banks. If the tax keeps coming up so does the interest, so
does excluding middle class so on and so forth.
Authority “There is no art which one government sooner learns of another than
that of draining money from the pockets of the people.”
Adam Smith,
If the bank couldn’t adapt with the tech era, soon demerits might outshine more than
the merits; this is to say, now more than ever alike banks are accumulating customers
by various bait methods unlike nib bank. Addition to that other banks are working
with foreign finance systems, such as PayPal, pioneer unlike again nib bank.
Bitcoin.

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 Department of work and responsibility:
The main position I was assigned in tropical branch of NIB bank was: messenger.

Messenger in bank is: a central theme that carries message for one point to another, and also is
assistant for the client as well as the accountants.
My tasks were specific.

As for the first days of my initiation I had to went through how most of banking
process work.
in the next phase, my task was to assist clients with writing applications (deposit
application, withdrawal application and so on).
I also was tasked with enfolding money and marking.
Counting accumulated money using counting machine is also one of my chore during
the internship.

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 what I had learned:
There are 6 basic folders important for Nib bank activity

1. Retailer opening: most of the time tellers uses them.

2. financial application: financial resource of the bank.
3. Ethio-model bank menu- transferring of money from one bank to another
4. external user admin online banking.
5. NIB Report- working report of the bank
6. Interest free banking- no interest bearing ex wada, Qard, Haje saving.

Previously, (During the prior policy and law of account opining issuing of national bank of
Ethiopia) to open a personal account, individuals could be hosted with due photos; but now,
because of the new instruction ruled by the national bank of Ethiopia, customer must show up with
two passport sized and renewed ID card.
The system encompassed multiple products such as ladies’ account, youth, individuals, etc.

To create [open] each of this account, it has its criteria to be met. For instance: to open a children’s
account, a birth certificate, and legal guardian ID card are necessary and must be met.
When some ones show up and inquires an opining, we don’t just accept the inquire and open
account. Because there are many criminal experts with bank fraud, we first cross-check whether
the individual is a criminal or not by sending a registration through the national bank of Ethiopia.

If the individual gets caught with any kind of chicanery, he won’t be able to debit money or create
an account ever again.

We open account after checking the information submitted and going through these steps
attentively.

There is a list called sanction list. This list prevents terrorists such as ‘ISIS’ from opening account.
We also go through the list while opining account. That should be noted bar none.

By the fault of anybody if the bank happened to open an account for such individual or group, a
fine of 10 thousand birrs will be foisted.
For the misdeed the HQ will hold the band /branch responsible; the branch also holds the individual
amenable.
Using simply full name, it can be checked weather the individual is involved in such crimes.
In the prior opening procedure, there wasn’t a procedure that necessitate the usage of mother’s
name. but with the new procedure, mothers should be included; that is because it helps identify
discrimination of same name with same father name.
After checking job status, income, and other follow-ups, we confirm by our signature saying ‘I
checking the individual is not criminal’.

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By the prior procedure of bank, when an opening occurs, only the branch will be notified of the
individual. But now, the teller opens the account, the accountant approves, and finally sent to head
office[HQ].

After thoroughly cross checking the info given by branches, the head office sends back the
approval of the opening.

NIB’s Products
1. Savings account is an interest bearing deposit. Individuals, organizations and associations
can maintain saving accounts as long as they are legal and meet the procedural requirements
set by the Bank.
2. Special Saving Account This account is a saving account established for those who are
interested to save with interest and also effect payments through cheques. Special savings
are interest-bearing accounts operated by cheques.
3. Demand Deposit Account (current or checking account) is a non-interest bearing account
and is opened or operated by literate customers only.
4. Nib Kefo Deposit Account No matter what your business is, whatever you do, you can save
even fraction of cents every day but you don’t need to come to our bank. We are coming to
your home with our innovative saving service known as Nib kefo Saving.
5. Fixed time deposit is a deposit mobilized for a specific period of time. It attracts higher
interest rate than the prevailing saving interest rate.
6. Lucy deposit account is women saving account established to encourage women to save and
earn higher interest rate.
7. Gojo/Guzo Saving Account This account is established for those customers who want to
save money to purchase a house or Vehicle. This account can be opened by all Ethiopian
nationals, who receive their remittance either through International Money Transfer Agents,
SWIFT or exchange the hard currency at any of NIB’s branches.
8. New born saving is a saving service and it has designed for kids and depicts NIB’s great
concern for posterity. In this saving service parents will save for their new born babies.
9. Student Saving Deposit Account This deposit account is established to students to attend
higher education and settlement of cost-sharing scheme. Students at any college or university
can open student saving account with an initial deposit amount not less than Birr 10(ten).
10. Prestige Saving Deposit Account This account shall be established for organizers of Equb,
Idir, religious organization and others.
11. Senior Citizens Saving Account.
12. Children Saving Deposit Account.
13. Children Saving Deposit Account.
14. Special Demand Deposit Account.
15. Executive Special Saving Deposit Account.
16. Non Resident Currency & Deposit Account.
17. Holiday, Vacation Special Purpose Saving Account.

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These all are what Nib Bank provides his customers with. And also planned to widen the
alternative in order to allure new customers and to widen his horizon.

Cheque enquire
Cheque presented: this enquire display all cheque number those are paid or cleared
of the given account.

Enter account number.

Click find.

Stop cheque: this entire allow you to view all stopped cheque for a given account
number.
Enter account number.

Click find.
Revoked cheque: revoked cheque for a given account.
Cheque register supplement: this enquire is a general enquire which display all type
of cheque status i.e. presented, stopped revoked, returned of a given account.
SWEFT: for example, is someone abroad want to send money to me, it goes the bank
that is the customer and if I don’t have a bank account, there is a secret number that
will be sent to me, then, I can go to the branch and collect the money with the secret
number sent to me and my Id, but if I had a bank account, he would have sent it to me
on my own account I need the SWEFT address of the bank, if I say to any bank, I
need the secret number that will be sent.
LMTS: For example, if I want to send money to someone in country-side without
having a nib bank account from the money send to them cutoff the commission and if
there is a branch in their area, they will take it by ID.
Account to account transfer: this functionality allows transferring fund from one
client account to other client account from internal account to client account.
Retail operation

Account transfer

Account to account transfer

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Enter the following information
Debit account: the fund will be deducted from.
Debit amount: the amount to be deducted from debt account.
Credit account: account the fund will be transferred to.

: Make sure the debit account balance is sufficient and verify the signature and commit
the transaction.
Nib kefo: It’s like a box and give to customer, even though they are told to bring it in
a month, but most of the time they keep it for two or three month. The key will be kept
with the bank, when they bring the box, it will be opened and counted in front of them
and entered in to their account.

As I understood it, current account opining balance Initial deposit amount is 500.
All cheques should be written in color.
Writing postdated or stale dated cheques is prohibited.
If the relation stops for some reason, the customer shall return back the unutilized check
leaves immediately.

Account opened today

This menu allows to filter account on today.
Account enquire

Account opened today—find

Here Without inserting any data on the filed just click find.
Then, the account that opened today display.

: Locked amount this enquire allows to view the locked amount found on an account
and the reason of locking.
Account enquire

Locked amount

Insert the account number that you want to view the detail of locked amount and click
find. See the reason of locking.

Beginning balance 111,000

Debit balance 90,315

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 Credit amount 121,200
Cash 77,615
Surrender: additional money
Communicating target for the financial year.

Following the revision of the 3rd strategic plan by considering the current macro as
well as micro economics environment. The operational plan and budget of the bank
for financial period has been prepared.
During the preparation of the plan, all districts and concerned department have been
actively participated in the process of sitting operational target and the feedback
obtained has been considered due attention.
After making a thorough and rigorous decisions, a deposit, foreign exchange, account
opening and E – channel. Target are set for the financial period.

For example, financial period 2022/23 accordingly, your branch is expected to

mobilize a not local deposit of birr 52,696,421.63 to reach the total deposit of
89,259,782.89-birr loan and advance birr 37,141,196.98. foreign currency equivalent
of USD 199,000.00. And open 3456 new deposit account to reach a total number of
account of 4,802.00. Starting from July 1, 2022 up to June 30, 2023. Moreover, the
number of mobile and internet banking subscribe and ATM card subscribe are
expected to be recruited during the year are 1,627 and 1,901.
According to this plan, the employees in the bank will take their own responsibility.
For example, at different times, different area tries to open an account, the employees
often have trouble because most people don’t use the account and don’t provide
photos. In general, complete information is not available. The number of account
given, according to the plan and the amount of money has to fill the number. So
everyone will do their best in this one year. Whether the branch has many customer or
not, or whether many people come during the day, the main objective is to be able to
make the plan successful and this was our recent responsibility.

Data Gathering Tools

The primary data collection method I used was collected through observation throughout my stay
in the bank, questionnaires and interview. To collect the data from the targeted I presented close
ended and open ended question. The questionnaire data are collected by using Likert scale using a
5-point satisfaction scale, and with forward questions. Alongside the questions, explanations had
been given for open ended questions and interview. The secondary data collection method I used
is through internet and online prewritten papers on the bank. I also had the chance to look
thoroughly into their social media usage such as Instagram, Facebook. Additional to that I used
the free call center #9698, I interviewed the marketing office as well.

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Reference
1. https://www.nibbanksc.com/
2. .t.me//nibbanksc.com
3. DINBERU GIRMA Paper On “Assessment of Strategic Management Practice and
Implementation in The Case of Nib International Bank”
4. www.fb.com/nibbanksc.com
5. [1] https://allaboutethio.com/best-banks-in-ethiopia.html

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 appendix
QUESTIONER

Hope enterprise university college

Department of accounting

1. How do you rate my work relation and communication skill with my supervisor

and other employees in the organization?

Very low ____ low ____ average ____ high _____ very high
____
2. Rate my performance from 1 to 5 in understanding and implementing the
organizational cultures/norm/ work?
1. Very low ____ 5.very high ____
3 .Do you think I performed all the tasks that are given to me with professional courtesy
or in a Good manner?
Yes___ No____
4. How do you see my readiness to learn new things, and my motivation to solve
problems related To my task?
Very good ___ Good____ Fair ____ Bad ____ Very
bad ____
5. Do you observes ant thing that I should improve during my stay here?
Yes ___ NO ____

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