Internship report at agribank - back khoa branch

INTERNSHIP REPORT

Nguyen Thi Thanh Huyen. ID: 0704040027 Page 1
Faculty of Management and Tourism, Hanoi University
PREFACE
An old joke attributed to comedian Bob Hope says “a bank is financial
institution where you can borrow money only if you can prove you do not
need it”. Although many of a bank’s customers may get the impression that
this old joke is more truth than fiction, the real story is that banks today
readily provide hundreds of different services to millions of people,
businesses, and governments all over the world. And many of these services
are vital to our personal well-being and the well-being of the communities
and nations where we live.
Bank plays the most important role among financial intermediaries in each
economy. Worldwide, banks are not only the principal source of credit
(loanable funds) but also grant more installment loans to customers.
Through mobilizing channels from millions of individuals, families and
many units of government, businesses in society, commercial banks act as
the transferor of funds from savers to borrowers and involve in payments of
goods and services.
Banks, with the key function of transferring capital, are always pushing up
mobilization to collect money for investments, enforcing economy and
improving society. This function is daily carried out by Business
Development and Planning Department which involves directly to
mobilizing activity and lending decisions. However, due to the increasing of
banks as well as financial institutions, each entity will find different ways to
differentiate its products from others. In order to make clearer
understanding of what this department is really doing, I decided to have my
internship at Agribank, Back Khoa branch. After two months here, I would
love to share what I got and what I might think to make this bank change, to
work more effectively and distinct from competitors.

INTERNSHIP REPORT

Nguyen Thi Thanh Huyen. ID: 0704040027 Page 2
Faculty of Management and Tourism, Hanoi University

TABLE OF CONTENT
Table of content………………………………………………………………………… …1
Preface ……………………………………………………………………………… …… 2
I. Introduction ………………….……………………………………… ………… …3
1. Overview of Agribank Vietnam…………………………………………… …3
2. Overview of Agribank Bach Khoa………………… ………………… ….…3
II. Responsibilities …………………………………………………… …………… … 8
III. Major Assignments ………………………………………… ……………… ………8
IV. Organizational analysis ……………………………………………………… ……10
V. Internship summary…………………… ……………………………….………….12
Appendix …………………………………………………………………………………… 13










INTERNSHIP REPORT

Nguyen Thi Thanh Huyen. ID: 0704040027 Page 3
Faculty of Management and Tourism, Hanoi University

I. INTRODUCTION
1) Agribank Vietnam Overview
Agribank (Vietnam Bank for Agriculture and Rural Development) was founded under Decree
of 53/HDBT on 26 March, 1988. Agribank is the leading commercial bank in Vietnam, holding
the dominant role in the economic development of Vietnam, particularly in the investment for
agriculture, farmers, and rural areas.
Agribank is considered to be the biggest bank in Vietnam in terms of capital, asset, and number
of staff, branch network and customer base. As of December 2009, Agribank’s leading position
confirms itself in:
· Total capital resources: VND 434,331 billion
· Equity: VND 22,176 billion
· Total assets: VND 470,000 billion
· Total outstanding loans: VND 354,112 billion
· Branch network: 2,300 branches and transaction offices nationwide
· Employees: 35,135
Agribank, with huge investments on application of technology into banking, was the first bank
to complete the Project on modernizing the Intra-bank Payment and Customer Accounting
System (IPCAS) sponsored by the World Bank. Therefore, at present, Agribank has a customer
base of over 10 million households and 30,000 enterprises.
Agribank is determined to maintain and confirm its leading and dominant positions to provide
loans for the cause of industrialization and modernization of agriculture and rural development,
economic development in conformity with the policies and objectives set by the Party and the
State.
2) Agribank Back Khoa
Transactional name: The branch for Agriculture and Rural Development
Address: No.92, Vo Thi Sau, Thanh Nhan, Hai Ba Trung, Ha Noi
INTERNSHIP REPORT

Nguyen Thi Thanh Huyen. ID: 0704040027 Page 4
Faculty of Management and Tourism, Hanoi University

Front offices:
· No. 4: No. 224 Lo Duc, Dong Mac, Hai Ba Trung
· No. 7: No. 326 Kim Nguu, Minh Khai, Hai Ba Trung
· No. 9: No. 54 Le Thanh Nghi, Bach Khoa, Hai Ba Trung
· Kim Lien: No. 1 Dao Duy Anh, Kim Lien, Dong Da
· Tan Mai: No. 25 Tan Mai, Hoang Mai, Hai Ba Trung

a. Foundation
Back Khoa branch is formerly Back Khoa front office being established under Decision
293/QD-NHLH on 15, July, 2001 of Lang Ha branch’s director.
At the early days of foundation, the Bach Khoa front office, placing on 51 Ta Quang Buu,
Bach Khoa street, Hai Ba Trung district, had only 7 officers, and was under the control of
Director Truong Minh Hoang. On 4
th
June, 2002, Bach Khoa branch was officially founded
under the Decision 123/QD/HDQT-TCCB of Board of Management of Agribank Viet Nam.
This was the first level-2 branch being allowed to exchange foreign currency.
After 3 years, with the number of 27 officers, this branch reached some items over target:
· Loan amount: VND 219 billion (184 % planned)
· Debit balance: VND 71.7 billion (101.8 % planned)
· Profit: VND 1,873 billion
On 20
th
September, 2005, the branch moved to No. 92 Vo Thi Sau, Thanh Nhan, Hai Ba
Trung. It continued to be upgraded from level 2 – class 2 to level 2 – class 2 and operated,
managed under Agribank Viet Nam, on 1
st
April, 2008, according to Decision of the Board of
Management Agribank Viet Nam.

INTERNSHIP REPORT


Nguyen Thi Thanh Huyen
. ID: 0704040027
Faculty
of Management and Touris
b.
Organizational structure
Organizationa
l structure of Agribank Bach Khoa includes 6 departments and 5
which is illust
rated by the following chart:
c. Operation
· Mobilization
Over the years, capital mobilization of Agribank
receiving depositing money from organizations and individuals, issuing valuable paper
bills of exchange or bo
nd, borrowing from Central Bank
institutions. Raising capital in the branch
Business
Development
& Planning
Department
Accounting
and
Treasury
Department
Front

Office No.
4


. ID: 0704040027

of Management and Touris
m, Hanoi University
Organizational structure

l structure of Agribank Bach Khoa includes 6 departments and 5
rated by the following chart:

(Source:
Administrative and HR Management Department
Over the years, capital mobilization of Agribank
Bach Khoa
has been performed through
receiving depositing money from organizations and individuals, issuing valuable paper
nd, borrowing from Central Bank
,
Agribank Vietnam and other
institutions. Raising capital in the branch
fluctuated over the years.
Board of Directors
Administrative
and HR
Management
Department
International

Payment
Department
Internal
Control
Front Offices
Front
Office No.
7
Front
Office No.
9
Front
Office Kim
Lien
Office Tan


Page 5
front offices,

Administrative and HR Management Department
)

has been performed through
receiving depositing money from organizations and individuals, issuing valuable paper
s like
Agribank Vietnam and other

Marketing
and Service

Department
Front
Offices
Front
Office Tan
Mai
INTERNSHIP REPORT

Nguyen Thi Thanh Huyen. ID: 0704040027 Page 6
Faculty of Management and Tourism, Hanoi University
(Unit: VND billion)
Year Mobilizing Capital
31/12/2008 1,856
31/12/2009 1,267.1
31/12/2010 1,835.86
31/12/2010 1,835.86
(Source: Business Development and Planning Department)
Table 1: Total amount of mobilizing capital through recent years
It can be clearly seen that this amount of capital reduced significantly by 68.27% in 2009
compared to 2008. But then, it rose by VND 589 billion in 2010, got 5.8% over the beginning
target. Although this activity does not bring revenue to the bank, it plays the most important
role in operating other departments, and Bach Khoa branch did this task well in 2010.
Capital structure is mainly composed of deposits while issuing valuable papers and borrowings
makes up for little amount. It can be seen from the table below that deposits mostly were
domestic currency and came from economic institutions, with long term of more than 24
months.
(Unit: VND billion)
Subjects 2008 2009 2010
TĐ % TĐ % TĐ %
Term deposits 1,856

100

1,267.1

100

1.835,86

100

Less than 12 months 365

19.67

285.84

22.56

447.03

24.35

12 – 24 months 10

0.54

26.99

2.13

77.66

4.23

More than 24 months 1,468

79.09

913.51

72.1

1,264.72

68.89

Others 13

0.7

40.66

3.21

46.45

2.53

Depositors 1,856

100

1,267.1

100

1,835.86

100

INTERNSHIP REPORT

Nguyen Thi Thanh Huyen. ID: 0704040027 Page 7
Faculty of Management and Tourism, Hanoi University
Individuals 282

15.19

153.95

12.15

470.92

25.65

Credit institutions 610

32.87

450.45

35.55

208.87

11.38

Economic organizations 964

51.94

662.7

52.3

156.07

62.97

Currency 1,856

100

1,267.1

100

1,835.86

100

Domestic 1,413.53

76.16

989

78.05

1,378.58

75.09

Foreign currency 442.47

23.84

278.1

21.95

457.28

24.91

(Source: Business Development and Planning Department)
Table 2: Mobilizing capital according to classification
· Credit activities

Table 3: Total loan amount and debit
balance period 2003 – 2010
Table 4: Capital condition in 2008 – 2010 period
Data in table 3 and table 4 shows the significant change in debit balance from 2003 until now,
even there was decrease of total capital amount in 2009. It should be noticed the rate of capital
efficiency in 2009 and 2010 kept at high level compared with that of 2008 that was only
Year

Subjects
2008 2009 2010
Total capital 1,856 1,267.1 1,835.86

Debit balance 701 1,078 1,547.44

Collecting from credit

127 205.117

214.06
Bad debts 15.5 109.3 281.91
Bad debt rate (%) 2.21% 10.14% 18.22%
Capital efficiency (%)

37.77%

85.08% 84.29%
Year Total
amount
Debit

balance
31/12/2003 118.6

70.2

31/12/2004 219

71.7

31/12/2005 391.9

86.7

31/12/2006 338

127.7

31/12/2007 508

261

31/12/2008 1,856

701

31/12/2009 1,267.1

1,077.8

31/12/2010 1,835.86

1,547.92

INTERNSHIP REPORT

Nguyen Thi Thanh Huyen. ID: 0704040027 Page 8
Faculty of Management and Tourism, Hanoi University
37.77% in spite of financial crisis, this reflected capital turnover’s stability of the Bach Khoa
branch.

II. RESPONSIBILITIES
My internship lasted more than 2 months from 16
th
February to 26
th
April and I worked as the
part-time intern in Business Development and Planning Department, Agribank Bach Khoa
branch. By its nature, this department carries out daily mobilization and lending decisions. This
process includes 5 steps from preparing credit documents, analyzing and evaluating the loan,
decision and disbursement, even then, it requires credit officers to follow those loans seriously
until their recovery from customers.
During the early working days, I was given documents relating to banking rules, the branch
Charter as well as credit operations or even any papers that I saw there. Generally, I studied the
process of loan application for enterprises and individuals. Besides, I also supported creditors
in preparing documents, inserting data, and working customers.

III. MAJOR ASSIGMENTS
1. Training
The department did not provide any training courses for interns, but each was instructed by his
own supervisor, at which the intern was given and asked to read some documents that are both

banking rules or Charter and lending decisions in order to know how to apply for each type of
credit activity. Each step of credit process requires different papers and documents. As the
most important part of lending decision, preparing and checking the legality of customer’s
documents requires the creditor’s professional knowledge of those like loan application, legal
entity, financial capacity, collateral papers, specific business plan as well as business’
forecasting financial statement. However, those will be different among customers whether
they are individuals, families or business organization, or it also depends on borrowing’s
INTERNSHIP REPORT

Nguyen Thi Thanh Huyen. ID: 0704040027 Page 9
Faculty of Management and Tourism, Hanoi University
objectives. Actually, the Agribank’s Charter and Decision, Decree includes all those
documents’ form that makes it easier for credit officers and customers to work out coincide and
quickly. Since the internship time was limited and because of huge number of documents, I
brought some to home to have time understand more.

Specially, I was made acquainted with IPCAS and was practiced on this system. It is quite
convenient and easy to understand and apply. Whenever customer calls and asks about his
credit condition, terms, daily or quarterly interest, the only thing to do is to input or access the
customer’s code, the IPCAS will quickly show all related information as well as recalculating
on-that-day interest.

2. Document preparation
Since I was trained to be familiar with legal documents, I knew which items need for what, and
then I was assigned to collect documents both on internet and from borrowers such as financial
statements, meeting minute of Board of Management. After that, I was asked to classify in
different files. Moreover, making photocopies and scanning or faxing are daily chores.

3. Data filling
Since I got understandings of documents and E-application of IPCAS, data filling into

computer became much easier for me. Because this application belongs to Agribank system, I
was not allowed to copy and public outside.

4. Customer services
Sometimes, I answered the phone and connected to other officers. Besides, I also instructed the
customers when my supervisor was absent at office. Sometimes, I needed other officers’ help
to deal with those customers since I was not allowed to use computer freely and could not
check information for them.


INTERNSHIP REPORT

Nguyen Thi Thanh Huyen. ID: 0704040027 Page 10
Faculty of Management and Tourism, Hanoi University
IV. ORGANIZATION ANALYSIS
More than two-month working time at a bank is not much and not enough to understand all
requirements and basic working steps, but it is quite useful for me to get more experience and
knowledge in order to apply in future jobs. There were many things new to study, but they also
came with obstacles that I’ve never met. In the respect of objectivity, I would like to share both
good and weak points that I could see here.
1) Strong points
In terms of credit operation, it can be clearly seen that the Bach Khoa branch improved itself
over years and got bright numbers. It was shown by annual income statement:
Year 2008 2009 2010
Revenue
132 216.524 454.8
COGS
119.38 202.180 436.16
Profit
12.62 14.344 18.64

Profit/Rev.
9.56% 6.62% 4.14%
(Source: Business Development and Planning Department)
Table 5: Income Statement in 2008 – 2010 period
Although the rate of Profit/ Revenue reduced recent years, its revenue and profit increased
significantly over years, this means that the bank was expanding its operation.
The above gain could be explained by one word that is “people”. The Business Development
and Planning Department includes 12 creditors and those are quite young since this branch was
new opened. They all graduated from famous universities in which trained with subjects of
finance and banking, so they are professional and able to make changes. They had good
relationship with customers and were very friendly, open-minded to solve all of customers’
complaint.
INTERNSHIP REPORT

Nguyen Thi Thanh Huyen. ID: 0704040027 Page 11
Faculty of Management and Tourism, Hanoi University
Specially, there was effective internal communication among officers and interns as well as
others from different departments. Those who are quite young, enthusiastic, and responsible for
works, built up a flexible working environment. Employees were free to ask what they did not
know, and the managers were comfortable to answer. There was always a small weekly
discussion or monthly meeting to solve problems and plan for the next steps. This maintains
the information bulletin at workplace, ensuring smooth and uninterrupted communication at
work.
2) Weak points
In spite of advantage of young and high-qualified employees, the number was still limited.
Since organizational structure was new and due to the birth of International Payment
Department, some business staffs were required to rotate, then the rest officers were
overloaded with works. As I know that each staff would be responsible for his or her loans
only, that means he or she needs to follow all steps in lending decision, then control or manage
that loan until its recovery. This reality leads to requirement of new recruitment of more

creditors in nearest time, and I am waiting for a potential position there.
Additionally, it would be sensitive to remind, but from my point of view, punctuation is the
most important criteria to evaluate a person’s attitude toward his work. They started new days
late and even someone came very lately. I have never seen all staff at same time at office. This
can be easily to understand since they can work with customers outside. However, no one
knows where the others were, particularly when their customers come. Since each one
supervised his own customer, the others could not help, then the customer had to leave with
disappointment.




INTERNSHIP REPORT

Nguyen Thi Thanh Huyen. ID: 0704040027 Page 12
Faculty of Management and Tourism, Hanoi University
V. INTERNSHIP SUMMARY
Two-month internship gave me chance to study real things and apply what I had learnt at
university. Since all works in the Business Development and Planning Department were very
important, I had small chance to involve in specific tasks, and everything needed to be self-
studied. And what I got here is not only the technical or academic skills but more importantly,
the behavior and the way the staff delivered their skills.
The best thing that I learnt here, even at the beginning of the internship period, is that I was
interested in credit activities although it requires little or even no English skills, and this would
limit my ability as well as my ambition of working in one foreign environment. Therefore, I
decided to study more in order to work in a Business Development and Planning Department in
the future, and this will be great if it is in an Agribank’s Department.

INTERNSHIP REPORT

Nguyen Thi Thanh Huyen. ID: 0704040027 Page 13
Faculty of Management and Tourism, Hanoi University
APPENDIX
Supervisor’s Evaluation
Người hướng dẫn:
Chức vụ:
Phòng/ Ban:
Xác nhận sinh viên đã hoàn thành khóa thực tập tại

Đánh giá:

INTERNSHIP REPORT

Nguyen Thi Thanh Huyen. ID: 0704040027 Page 14
Faculty of Management and Tourism, Hanoi University