Internship Report MOBILIZING CAPITAL THROUGH PRODUCTS OF SAVINGS DEPOSIT at DONGA JOINT STOCK COMMERCIAL BANK

HO CHI MINH CITY BANKING UNIVERSITY DEPARTMENT OF FOREIGN LANGUAGES Internship Report Batch: K26 (2010-2014) on MOBILIZING CAPITAL THROUGH PRODUCTS OF SAVINGS DEPOSIT at DONGA JOINT STOCK COMMERCIAL BANK 24H TRANSACTION OFFICE NO.12 Prepared by Student’s full name: Student’s ID number: Program: Department: 030426100046 Business English Internship Supervisor Name: Title: PHAN THỊ THÁI HÒA LÊ THỊ MINH THỦY M.A Foreign Languages Date of Submission: 27/02/2008 ACKNOWLEDGEMENT ……………… I would like to express my sincere gratitude to the people who have spent their time on motivating me to complete this internship report Firstly I would like to give special thanks to the Foreign Language Faculty of Banking University for giving me an opportunity to the internship and gather practical experience Secondly, I would like to thank Ms Khanh Uyen – Director of DongA Bank – 24h transaction office no.12, and all of the staff members at transaction office no.12, for having created a friendly and professional working environment as well as being always willing to guide me to the tasks and provide the useful material Then, I am extremely grateful to Ms Le Thi Minh Thuy, my internship supervisor who is dedicated to give the valuable advices and answer all of my questions during the period of my internship Finally, I would like to extend my thanks to my family and my friends for their understanding and supporting me to complete my internship successfully I would like to wish all of you healthy, successful career and happy life ASSESSMENT OF THE INTERNSHIP SUPERVISING UNIT …………………………………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… …………………………………………………………………………………………… PHẦN ĐÁNH GIÁ CỦA GIẢNG VIÊN HƯỚNG DẪN ST T Nội dung đánh giá Điểm Tinh thần, thái độ làm việc Cơ quan thực tập /2.0 Mức độ chấp hành nội quy thực tập thực yêu cầu chuyên môn theo hướng dẫn Giảng viên hướng dẫn /2.0 Nhận xét Chất lượng báo cáo thực tập - Trình bày /1.0 - Ngơn ngữ /1.0 - Nội dung báo cáo a Tống quan quan nhận thực tập phận thực tập /1.0 b Nội dung công việc phân công phương pháp thực /1.0 c Kết đợt thực tập, bao gồm: /2.0 • Những kiến thức, kỹ củng cố học hỏi • Những kinh nghiệm tích lũy • Các đóng góp thân cho quan sáng kiến, đề xuất giải pháp (nếu có) Tổng điểm /10.0 Giảng viên chấm PHẦN ĐÁNH GIÁ CỦA GIẢNG VIÊN CHẤM ST T Nội dung đánh giá Điểm Tinh thần, thái độ làm việc Cơ quan thực tập /2.0 Mức độ chấp hành nội quy thực tập thực yêu cầu chuyên môn theo hướng dẫn Giảng viên hướng dẫn /2.0 Chất lượng báo cáo thực tập - Trình bày /1.0 - Ngơn ngữ /1.0 - Nội dung báo cáo a Tống quan quan nhận thực tập phận thực tập /1.0 b Nội dung công việc phân công phương pháp thực /1.0 c Kết đợt thực tập, bao gồm: /2.0 • Những kiến thức, kỹ củng cố học hỏi • Những kinh nghiệm tích lũy • Các đóng góp thân cho quan sáng kiến, đề xuất giải pháp (nếu có) Tổng điểm /10.0 Nhận xét Giảng viên chấm TABLE OF CONTENTS I OVERVIEW OF DONG A JOINT STOCK COMMERCIAL BANK & DONGA BANK-24H TRANSACTION OFFICE NO.12 Overview of DongA Bank DongA Bank or DongA Joint Stock Commercial Bank was established on July st, 1992 With more than 20 years of stable operation and sustainable development, DongA Bank is proud of its outstanding achievements as well as its contributions to the general national economic growth Combining with the slogan “The Bank of Responsibility, The Bank of Hearts”, DongA Bank has chosen its own sound direction with specific goals in each period The system of 224 transaction points in 50 provinces and cities with over 1400 ATM and the huge number of million customers including individuals and enterprises have proved the truth that DongA Bank is really a reliable companion of the customers Overview of DongA – 24h Transaction Office No.12 a Introduction Address: Petrol Station No.21 – 52 No Trang Long, Ward 11, Binh Thanh District Tel 08.544 536 45 : To be founded in 2009, DongA Bank-24H Transaction office no.12 is considered as a member of DongA mini banking system with the sufficient functions of a transaction office Business hours in this office are from Monday to Sunday and the working time is between 07:30 and 19:30 Transaction office no.12 is ready to provide many services such as offering savings products, transferring money, getting money collected or paid, exchanging foreign money… for customers The remarkable characteristic of this office is its location which is near the petrol station The customers can spend less time on doing transaction with the bank while waiting to fill their motorbikes, their cars up with petrol or get them cleaned This initiative is appreciated because it is really an effective solution to ease ATM congestion nowadays b Organizational structure HEAD OFFICE BRANCHES/ TRANSACTION OFFICES/ 24H- TRANSATION OFFICES DIRECTOR OF 24H- TRANSACTION OFFICE DEPUTY DIRECTOR TELLERS SUPERVISORS CASHIER II MOBILIZING CAPITAL THROUGH PRODUCTS OF SAVINGS AT DONGA BANK-24H TRANSACTION OFFICE NO.12 Mobilizing capital at DongA Bank- 24h transaction office no.12 in general For each bank, capital mobilization is very important because the raised capital covers a large proportion of total debt assets During the first period of its inception, DongA Bank- 24h transaction office no.12 has encountered a number of difficulties in finding and attracting customers However, by applying various forms of raising capital as well as attractive interest policies, the transaction office no.12 has achieved success up to now as a result of all bank clerks’ effort Products of savings deposit at DongA Bank Besides credit cards, certificate of deposit,… savings deposit is considered as the most popular form of capital mobilization at DongA Bank, especially at DongA transaction office no.12 For the purpose of earning customers’ trust, DongA Bank has offered them a wide range of savings products And the following are popular kinds of savings products at the transaction office no.12 a “Tiết kiệm cho tương lai” “Tiết kiệm cho tương lai” is the most special savings products which DongA Bank would like to offer its customers of all ages With only 200 000 VND to open your savings account, the advantage of this product is that the customers can put any amount of money they wants into their own account at any time DongA Bank will pay interest on the sum of money accumulated “Tiết kiệm tích lũy” is a useful product to help you prepare the best finances for your future b “Tiết kiệm chắp cánh cho con” “Tiết kiệm chắp cánh cho con” is also a meaningful kind of savings deposit at DongA Bank The name of passbook is the name of the customer’s children By using this product, the parents not only prepare good conditions for their children, but also teach them a valuable lesson about savings The situation of mobilizing capital through savings deposit at DongA Bank- 24h transaction office no.12 a Savings deposit and current deposit in proportion at DongA 24h transaction office no.12 Unit: 1000,000 VND Savings deposit Current deposit Sum of deposits 2011 100,046.00 (78.59%) 27,254.00 (21.41%) 127,300.00 (100%) 2012 186,322.00 (98.65%) 2,556.57 (1.35%) 188,878.57 (100%) Source: DongA Bank- 24h Transaction Office no.12 2013 275,134.12 (99.61%) 1,085.83 (0.39%) 276,219.95 (100%) Due to the inflation the interest rate for savings deposits also decreases However, 24h-transaction office no.12 has managed to overcome these troubles and got the significant growth in raising capital During years (2011-2013), mobilized capital at 24h- transaction office no.12 has increased from 127,300 to 276,219.95 millions of VND That can be considered as an achievement of this office in the uneasy phase As above chart, we can see that the proportion of savings deposit to current deposit has changed a lot In 2011, savings deposits account for 78.59% and current deposit is 21.41% But in 2013, savings deposit reaches 275,134.12 million (up to 99.61%) and current one makes up only 0.39% of the sum of deposits The chart shows that the capital is mobilized mainly from savings deposit There is an upward trend in savings deposit It can be explained that customers recognize the difference between the interest rates of savings and current deposits Because the interest rate of current deposit is very low, they tend to savings one with the higher interest rate Besides, the characteristic of transaction office is transferring money The amount in the current accounts is transmitted constantly Therefore, the balances in these accounts not always stay the same, evenly very low b The fluctuation of currency in savings deposit Unit: 1000,000 VND VND Foreign currency XAU Sum of savings deposit 2011 2012 2013 80,036 (80 %) 12,907 (12.9%) 7,103 (7.1%) 100,046 (100%) 166,068(89.13%) 8,552 (4.59%) 11,701 (6.28%) 186,322(100%) 259,231 (94.22%) 13,647 (4.96%) 2,256.12 (0.82%) 275,134.12 (100%) Source: DongA Bank- 24h Transaction Office no.12 Above table shows that VND constitutes the majority of currency in savings deposit and gains noticeably In 2013, savings deposit of VND reaches 259,231 million That is an amazing figure which is times as much as the amount in 2011 (80,036 million) Moreover, the percentage of VND currency also jumps from 80% to 94.22% (14.22%) within years Due to the changeable economy, the galloping inflation and unprofitable securities, customers turn to savings products in order to reduce the risk of losing money Even as mobilized capital from foreign currency trends to decrease To compare with figures in 2011, the proportion of foreign currency in 2012, 2013 plunges from 12.9% to more than 4.5% (4.59% and 4.96%) It is the dramatic fall because the interest rate for foreign currency is not high (1.2% per year for USD, 2% for EUR, 0.5% for CAD,…) Mobilization of gold often makes up for a small percentage, but it also goes down (from 7.1% to 0.8%) as the result of the fall in gold price On the other hand, according to the new regulation of Central Bank, gold deposit in the bank must be charged Generally raising capital by gold and foreign currency markedly reduces while proportion of VND is climbing up III.Given tasks during the internship at DongA Bank- 24h transaction office no.12 During the internship, I am assigned to a lot of tasks These tasks are not only useful for my job in the future but also for my experience in my life Every workday, I have a duty to sort and classify documents of the previous day All documents will be checked carefully and compared with the statistic table After that, I will start work as a teller in the bank I guide the clients to complete the paperwork at the counter Then, I convert the figures of paper into data in the computer and process them as the request of customers I manage to communicate with customers and solve their problems in time Besides, I also some small tasks such as photocopying and printing the documents, preparing the gifts and calendars for customers in the upcoming New Year, reckoning the documents in order of days and months to end up the year IV Methods of implementing the given tasks Reading material This is the first activity needed to before starting work as a teller The director has given material including the history of transaction office, the operational situation of the office,… All material helps me have an overview of the office where I will work and understand more about my duties and responsibilities there Observing the bank clerks to gain more experience Only reading material is really not enough I have also observed the bank clerks’ activities for the purpose of learning what their main jobs are, how they can deal with customers’ problems, how they communicate to their clients… To notice bank clerks’ manipulations is the vital method which decides whether I can the tasks or not Asking the bank clerks for more information and taking notes When I read material or observing banking clerks, of course, there will be some problems making me confused I cannot understand some information in documents or evenly I don’t know why the bank clerks handle their work I don’t often hesitate to ask them in order to find the right answers and don’t forget to take notes I am able to get and memorize the knowledge more quickly thanks to this effective method Practicing on the computer and communication with customers However, after applying all of the above methods, I think practicing is the most important one I always find opportunities to practice on the computer and communicate with customers At first, on the counter I will ask customers about their requirements Then I enter their ID numbers into the computer to check their information registered at bank as well as their balance Some customers want to transfer money, someone wants to deposit into account, but another one wants to open a savings account All of customers’ amount required to be transfer/ deposit/ withdraw will be converted into the figures and transmitted to the computer As the bank clerks guide, by some manipulations, I process data according to the available orders on the electronic machine Besides I assist clients to withdraw the money of credit card by using POS machine With a few simple actions like swiping credit cards, I can fulfill their requirements V Internship results Reinforced knowledge Joining the internship at DongA Bank – 24h transaction office no.12, I have opportunities to review many theories related to my speciality I understand what the nature of capital mobilization is, its process, the steps of transferring, depositing and withdrawing money Through the services as well as the attractive financial products of DongA such as issuing credit cards, offering savings deposits, mobilizing fine gold by the certificate of deposit,…, I can grasp the methods of raising capital Simultaneously, I can assert that in spite of the low interest rate, savings deposit is the safest investing channel for the people who have idle cash Not only these theories I know more about the regulations of the Central Banks and DongA Bank Internship brings me the practical knowledge including DongA Bank’s tariff, gold price and exchange rate in the current market, Now I can be confident of having thorough knowledge of some subjects I have studied at my university The lessons of discounted cash flow, capital rotation,… belonging to The Economics of Money, Banking, Financial Market inculcate into my mind Bank is truly the typical example of one important intermediary in financial market with many criteria like CAMELS rating, 6Cs as in the subject of commercial banking Of course, thanks to reading documents and practicing on the computer, I can make accounting entries at the bank like when I study the banking accounting subject All of these make me reinforce my academic knowledge a lot 2 Practical skills learned from the internship a Skill of communication With the main criterion to please customers, any tellers must have the basic skill of communication Every day when contacting with clients, I have learned to be always open-armed and welcome them I have been taught to smile and ask them for their problems, questions with the tone of politeness no matter whether I communicate with them directly at the transaction office or through the telephone The important thing is that I must have a through grasp of the information of the banking products, incentive programs for some groups of customers as well as the banking expertise to advise them Moreover, communication skill here involves in the communication with colleagues I have tried to keep the good working relationship with the clerks at the office that is also a good way for me to learn their experience b Skill of solving problem After the internship, I think that the first step to solve customers’ problems is respecting and listening their pressing troubles I am willing to assist them whenever they need To solve their problems in an effective way, it is not always to follow the regulations absolutely For examples, some customers living far away from our office, some older customer… sometimes forget their identification or they are in the real urgent need of resolving I should help them in a flexible way For the customers in anger, I would humbly explain to keep them calmer first, before doing any transaction c Skill of working in a collective environment In a collective environment I always behave in a kind and pleasant way because this is the best way to work effectively At the bank, everyone must collaborate in order to improve the working efficiency I like to become a friendly member at this office and give the customers the perfect service quality d Skill of sorting and classifying documents and conducting the real process The most valuable lesson I think I have learnt is that I get a chance to work as a real teller Every morning I sort and classify documents into categories of numerical order including collecting and spending, transferring money by VND and by foreign currency When conducting the real process on the computer, all of the manipulations must be done fast and competently The mode of checking customers’ information is needed to be exact and carefully examined Receiving and processing documents are in exactly the same way as above steps In addition, other skills like photocopying, printing or transmitting documents are also necessary skills in any kind of job in my life Accumulated experience Taking part in this internship, I have accumulated a lot of experience I have known that to achieve the service quality, this transaction office needs the cooperation of departments in DongA banking system Besides that, I also learnt the serious awareness of working and the friendly communication among colleagues No matter anything happens, the important one is that I must be calm to solve the problem and prevent from upsetting customers To any jobs, there is a need of flexibility in resolving problems Details of my achieved working results contributing to DongA Bank- 24h transaction office no.12 Despite the limited period of internship, I can assist the bank clerks at DongA Bank- 24h transaction office no.12 to reduce the loads of working pressure I meet the customers’ requirements, directly handle simple transactions such as depositing, transferring, withdrawing money for them, so the number of customers waiting is also decreasing At the end of the year 2013, the volumes of documents are arranged and packed more quickly with my assistance Time of preparing the gifts for the customers also ends earlier than we expected After internship, all of my duties and responsibilities are completed very well Recommendation for 24h transaction office no.12 Although DongA – 24h transaction office no.12 is considered as an effective working unit but it still remains some noticeable problems ATMs in DongA system are regularly out of order but the demands of customers to withdraw money are enormous Because of the reduction of many transaction offices, transaction office no.12 is really a crowded one The volumes of transactions at the office are larger and larger To solve all these problems, 24h transaction office no.12 needs to improve service quality by following methods Each customer should be get the number before doing transaction on the counter This action will help to resolve their problems in order The tellers should receive the money from clients directly The cashier’s duty is to pay and transfer money and deal with the large amount The customers depositing money will wait for a long time The final method is maintaining the good condition for the ATMs The best quality of services will lead DongA Bank to become a formidable competitor in the financial market VI Conclusion Capital mobilization through the products of savings deposits is the complicated progress, but it plays a vital role for the financial organizations, the bank industry in general and the commercial banks in particular Therefore, to raise the capital, DongA Bank- 24h transaction office needs to apply the adequate policies as well as incentive programs to attract the savings deposits from the people in the society Quality of services is also a remarkable matter needed to be improved A healthy bank, a healthy transaction office is seen as a bank of strong capital  ... me to complete this internship report Firstly I would like to give special thanks to the Foreign Language Faculty of Banking University for giving me an opportunity to the internship and gather... grateful to Ms Le Thi Minh Thuy, my internship supervisor who is dedicated to give the valuable advices and answer all of my questions during the period of my internship Finally, I would like to... understanding and supporting me to complete my internship successfully I would like to wish all of you healthy, successful career and happy life ASSESSMENT OF THE INTERNSHIP SUPERVISING UNIT ……………………………………………………………………………………………