internship report internship report at vietinbank bac ninh

In this report, I focus on analyzing the performance of individual customer loans at Vietnam Joint Stock Commercial Bank For Industry And Trade VietinBank.. Briefly introduction of Vieti

INTERNSHIP REPORT AT VIETINBANK BAC NINH

Student: Nguyễn Ngọc Ngân An

Student code: 1704040001 Supervisor: D6 Van Anh Major: Finance & Banking

Ha Noi, November 22, 2021

VietinBank

II INTERNSHIP PLAN AT VIETINBANK BAC NINH

1 Brief introduction about VietinBank Bac Ninh branch

VietinBank

Abstract

Our country’s economy has grown stronger and stronger in recent years, and

economic growth can be sustained at a reasonable level People's living conditions and earnings have tremendously improved, and their requirements have greatly improved Since then, lending activities to individual customers in the Vietnamese market have become exciting with the participation of domestic and foreign commercial banks It is another potential and crucial field in which many banks are interested in expanding In this report, I focus on analyzing the performance of individual customer loans at Vietnam Joint Stock Commercial Bank For Industry And Trade (VietinBank) The internship at VietinBank Bac Ninh is a fantastic opportunity for me to apply what I've learned in school to real-world situations, allowing me to gain a more realistic perspective on investing and other bank activities.Besides that, I used the SWOT model to examine the strengths, weaknesses, opportunities, and challenges of the bank, and then proposed a number of solutions with the desire to contribute my personal thoughts to the company improvement in order to achieve the goals set forward.

VietinBank

INTRODUCTION

Briefly introduction of VietinBank

Registered name: VIETNAM JOINT STOCK COMMERCIAL BANK FOR INDUSTRY AND TRADE

Trading name: VietinBank

Banking License: No 142/GP-NHNN dated 3rd July 2009 by the State Bank of

Vietnam Trademark:

VietinBank

Headquarters: 108 Tran Hung Dao, Cua Nam ward, Hoan Kiem district, Ha Noi

City, Viet Nam

Certificate of Business Registration: No 0100111948 by Hanoi Department of Planning and Investment for the first issuance on 3rd July 2009, registered for the 12th amendment on 8th September 2021

Tel: (84-24) 3942 1030 Fax: (84-24) 3942 1032 Securities code: CTG Website: https://VietinBank.vn History, mission, and vision of Company

The State Bank of Vietnam established the Vietnam Industrial and Commercial

Bank (Incombank) in 1991 as one of the country’s first four commercial banks

following the adoption of a two-tier banking systehm According to other reports, the bank was founded in 1988 By the year 2000, the bank had 48.7 trillion VND in total assets, 40.7 trillion in deposits, and 26.2 trillion in debts Large government programs in priority sectors such as postal services, communication, processing, and construction material received the majority of loans, but there was also lending for non-commercial objectives such as flood relief and training funding for poor

students.

In April 2008, Incombank changed its name to VietinBank In July 2009, it was listed on the Ho Chi Minh City Stock Exchange In 2011, VietinBank increased its chartered capital by issuing extra shares to current owners, bringing total chartered capital to 20.23 trillion VND (about $1 billion) by the end of the year State stockholders owned 80.3 percent of the bank’s stock at the time

With a nationwide corporate network, VietinBank aims to be A leading multi- functional, modern and efficient bank in Vietnam, being among the Top 20 strongest banks in the Aisa-Pacific region by 2030; and by 2045, being the strongest and most prestigious bank in Vietnam, a leading bank in the Asia-Pacific region and a highly reputable bank in the world

Products and service lines

In general, VietinBank’s products and services include the following items: Saving Account:

Mortgages Card services

VietinBank=

Foreign currency trading Spot Exchange Forward exchange Foregin currency options Bank account package jor Japanese Vietnam Sakura benefit package Competitors

In Vietnam, the banking and finance market is intensely competitive; there are approximately a hundred different banks brands, including domestic and national

branches As a result, VietinBank in general, and VietinBank Bac Ninh branch in

particular, are in a very competitive market

GENERAL MEETING OF SHAREHOLDERS

BOARD OF DIRECTORS Supervisory Board

Organization chart

BOARD OF MANAGEMENT

VietinBank is divided into severeal departments The division of departments is mainly based on the operations that the department undertakes Each department

INTERNSHIP PLAN AT VIETINBANK BAC NINH

Brief introduction about VietinBank Bac Ninh branch

VietinBank Bac Ninh branch is located at 31 Nguyen Dang Dao, Suoi Hoa ward, central of Bac Ninh city In recent years, the VietinBank Ninh branch’s Board of Directors and personnel have faithfully followed the guidance of the Joint Stock Commercial Bank for Industry and Trade of Vietnam (Bank of Industry and Trade), the State Bank of the province, and various departments and agencies Looking for appropriate solutions and being proactive in the workplace should have yielded excellent results In terms of credit work, the branch primarily focuses on financing for effective production and business strategies in Bac Ninh province, as well as lending to traditional clients that have a solid financial potential The branch's business results as of December 31, 2020 were: Outstanding debt reached VND

3,826 billion, capital reached VND 3,078 billion, profit reached VND 98.9 billion

Intership program

My internship period starts from September 6, 2021 to November 8, 2021 as a full- time salesman I worked in the sales and distribution department, where I had to seek for and process individual customer loan applications In addition, I was able to communicate with and collaborate with different departments involved in the document handling process During the mission, I took part in professional training courses, learnt banking regulations and abilities, and saw and experienced work in a real-world setting

MAJOR ASSIGNMENTS Finding potential customers

Customers can be attracted in a variety of ways, including web marketing, leaflet distribution, and working on behalf of other banks and financing organizations In terms of web marketing, the Team Leader showed me how to establish, design a distinct page for running advertising, and write captivating content articles that described the emphasis and highlighted the business's advantages to attract readers I learned how to set up a Facebook advertising campaign and publish advertisements on Credit Loan groups to find clients during that period Distributing leaflets, on the other hand, delivers a higher volume of visitors to the Sales team than advertising articles in the workplace.

IV

2 Processing client's loan application

The lending process for individual customers at VietinBank Bac Ninh branch is also a common process of VietinBank and includes the following basic steps: After receiving customer information and determining the customer's needs, I will conduct a loan consultation, explain the terms, and direct the customer to produce the required papers to finish the loan application

Then banks and credit companies will conduct an appraisal of the documents provided by the customer to see if they are eligible for a loan Appraisal of documents will help banks and financial companies accurately assess the accuracy of the information provided by customers before making a loan decision Legal, customer to ensure loan eligibility, assessment of organizational structure, credit connection status, production and business capacity, and financial capacity then all are covered in depth by expert appraisers

When the application is granted, the bank will send the customer a commitment

contract detailing the loan amount, term, and interest rate, among other details, for

the two parties to sign

ORGANIZATIONAL ANALYSIS OF VIETINBANK BAC NINH Strength

Firstly, lending to individual customers is a key activity that brings the main income for VietinBank Bac Ninh branch During the period of 2017 - 2020, the Branch’s individual customer loans always accounted for a high proportion, ranging from 52% - 55% of the branch's total outstanding loans and contributed greatly to the branch when net income in 2019 is VND 56.96 billion

Secondly, the quality of the branch's outstanding loans to individual customers is at a safe and controllable level However, the branch should pay attention to strengthen the appraisal and handling of loans to reduce overdue loans and bad debts because overdue debts, bad debts of the branch are tending to increase Thirdly, the branch has effectively utilized and exploited the development potential of Bac Ninh province The branch has built and created a very good personal lending platform in the area of craft villages, as well as in cities and towns to serve the lending activities of individuals for production and business Outstanding loans for production and business accounted for 91.5% of outstanding loans to individual customers according to the loan report of the Government branch in 2020.

VietinBank

Fourth, the branch's transaction network is large, covering many key economic areas of Bac Ninh province such as Bac Ninh City, Tu Son Town, Yen Phong and Tien Du districts, these are all areas with many craft villages, industrial parks or provincial administrative centers All transaction points of the Branch are located

in the center of the administrative unit, convenient for customers to transact

Fifth, the team of customer relations officers and departmental leaders of the branch with good professional qualifications, well-trained sales appraisal skills are always ready to find and exploit customers in all locations is one of the factors that make up the current size of the branch’s individual customers

Weakness

Firstly, the growth of outstanding loans is not commensurate with the potential of the branch when Bac Ninh province is one of the leading economic development points in the country VietinBank Bac Ninh has many advantages over other banks in the area to develop personal loans, that is, long operating time, large individual customer base, large transaction network, team quality staff, experienced, convenient transaction location However, the growth rate of outstanding loans to individual customers of the branch was only on par with some large banks in the area

Secondly, the branch's proportion of consumer loans is still low compared to its potential, accounting for only 8.5% of the total outstanding loans to individual customers Bac Ninh has a lot of potential for consumer loans because the economy has continuously grown over the years, the population is growing fast on average 2.9%/year, the population is young, there are many big real estate projects in the province such as: Vincom Bac Ninh, Royal Park, Cat Tuong Therefore, the branch has a lot of potential for consumer lending because of its diversified consumer loan products, with the available potentials that the Branch has not yet taken advantage of to develop consumer lending

Thirdly, the quality of outstanding loans to individual customers is on a downward trend Although the branch's debt quality is still controlled, bad debts and overdue debts are posted at 2.14% of the total outstanding loans to science and technology and 1.13% of the total outstanding loans, but if the lending to individual customers is not well controlled by measures such as selecting loan customers, diversifying and focusing on bad debt settlement, the branch may generate more new bad debts without handling old bad debts, damaging development results.

VietinBank

3 Opportunities

To begin with, banks are increasing their investments in digital technology Banks can use digital banking to accurately assess and score their clients’ behavior, spending habits, and credit history, allowing them to offer the most compatible product packages Banks can reduce bad debts and bad debts from “high-risk” customers thanks to customer credit scoring, while taking better care of and achieving higher satisfaction among consumers with strong credit scores Secondly, the State Bank’s new policies In order to assist the operations of numerous commercial banks, particularly small banks, the State Bank acted promptly and proposed solutions and scenarios that were appropriate for new and loosened credit growth laws, with a focus on commercial bank supervision and liquidity control This has improved the financial system's efficiency and stability, providing opportunities for the banking industry in the first half of 2020 The State Bank's new policies have partially mitigated financial risks for banks in terms of Circular 01 business support, such as interest rate reductions and debt restructuring

The last one is deep specialization The government's interference in the business activities of firms will be decreased and limited when integration pledges are implemented This environment allows Vietnamese businesses to become more engaged in the marketplace while also allowing them to demonstrate their talents and qualifications Domestic financial companies are being forced to specialize even more in operations in order to quickly access and develop new banking services, improve capital utilization efficiency, and exploit and apply more effective advantages of various types in order to increase market share in domestic and international financial markets Domestic companies are forced to act according to market principles as a result of international integration, and increasing competitiveness improves corporate efficiency

Threats

Initially, the branch's market share in individual customer loans decreased dramatically Because many banks are opening branches or expanding existing branches in Bac Ninh province, the capacity to grow and develop personal loans is becoming increasingly tough Particularly, the branch's outstanding loans are concentrated in a number of traditional craft villages, such as woodworking craft

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