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

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: PHAN THỊ THÁI HÒA

Student’s ID number: 030426100046

Program: Business English

Internship Supervisor

Department: Foreign Languages

Date of Submission: 27/02/2008

……….

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 do 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 do 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 Nhận xét

1 Tinh thần, thái độ làm việc tại Cơ

quan thực tập

/2.0

2 Mức độ chấp hành nội quy thực tập

và thực hiện các yêu cầu chuyên

môn theo hướng dẫn của Giảng viên

hướng dẫn

/2.0

3 Chất lượng báo cáo thực tập

- Nội

dung báo

cáo

a Tống quan về cơ quan nhận thực tập và bộ phận thực tập

/1.0

b Nội dung công việc được phân công và phương pháp thực hiện

/1.0

c Kết quả của đợt thực tập, bao gồm:

Những kiến thức, kỹ năng được củng cố hoặc học hỏi được

Những kinh nghiệm đã tích lũy được

Các đóng góp của bản thân cho cơ quan và các sáng kiến, đề xuất giải pháp (nếu có)

/2.0

Tổng điểm /10.0

Giảng viên chấm

PHẦN ĐÁNH GIÁ CỦA GIẢNG VIÊN CHẤM 2

ST

T

Nội dung đánh giá Điểm Nhận xét

1 Tinh thần, thái độ làm việc tại Cơ

quan thực tập

/2.0

2 Mức độ chấp hành nội quy thực tập

và thực hiện các yêu cầu chuyên

môn theo hướng dẫn của Giảng viên

hướng dẫn

/2.0

3 Chất lượng báo cáo thực tập

- Nội

dung báo

cáo

a Tống quan về cơ quan nhận thực tập và bộ phận thực tập

/1.0

b Nội dung công việc được phân công và phương pháp thực hiện

/1.0

c Kết quả của đợt thực tập, bao gồm:

Những kiến thức, kỹ năng được củng cố hoặc học hỏi được

Những kinh nghiệm đã tích lũy được

Các đóng góp của bản thân cho cơ quan và các sáng kiến, đề xuất giải pháp (nếu có)

/2.0

Tổng điểm /10.0

Giảng viên chấm

TABLE OF CONTENTS

I OVERVIEW OF DONG A JOINT STOCK COMMERCIAL BANK & DONGA BANK-24H

TRANSACTION OFFICE NO.12 1

1 Overview of DongA Bank 1

2 Overview of DongA – 24h Transaction Office No.12 1

a Introduction 1

b Organizational structure 1

II MOBILIZING CAPITAL THROUGH PRODUCTS OF SAVINGS AT DONGA BANK-24H TRANSACTION OFFICE NO.12 2

1 Mobilizing capital at DongA Bank- 24h transaction office no.12 in general 2

2 Products of savings deposit at DongA Bank 2

a “Tiết kiệm cho tương lai” 2

b “Tiết kiệm chắp cánh cho con” 3

3 The situation of mobilizing capital through savings deposit at DongA Bank- 24h transaction office no.12 3

a Savings deposit and current deposit in proportion at DongA 24h transaction office no.12 3

b The fluctuation of currency in savings deposit 4

III Given tasks during the internship at DongA Bank- 24h transaction office no.12 5

IV Methods of implementing the given tasks 5

1 Reading material 6

2 Observing the bank clerks to gain more experience 6

3 Asking the bank clerks for more information and taking notes 6

4 Practicing on the computer and communication with customers 6

V Internship results 7

1 Reinforced knowledge 7

2 Practical skills learned from the internship 8

a Skill of communication 8

b Skill of solving problem 8

c Skill of working in a collective environment 8

d Skill of sorting and classifying documents and conducting the real process 8

3 Accumulated experience 9

4 Details of my achieved working results contributing to DongA Bank- 24h transaction office no.12 9

5 Recommendation for 24h transaction office no.12 9

VI Conclusion 10

MOBILIZING CAPITAL THROUGH PRODUCTS OF SAVINGS DEPOSIT

I OVERVIEW OF DONG A JOINT STOCK COMMERCIAL BANK & DONGA BANK-24H TRANSACTION OFFICE NO.12

1 Overview of DongA Bank

DongA Bank or DongA Joint Stock Commercial Bank was established on July 1st, 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 5 million customers including individuals and enterprises have proved the truth that DongA Bank is really a reliable companion of the customers

2 Overview of DongA – 24h Transaction Office No.12

a Introduction

Address: Petrol Station No.21 – 52 No Trang Long, Ward 11, Binh Thanh District

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

1

MOBILIZING CAPITAL THROUGH PRODUCTS OF SAVINGS DEPOSIT

II MOBILIZING CAPITAL THROUGH PRODUCTS OF SAVINGS AT DONGA BANK-24H TRANSACTION OFFICE NO.12

1 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

2 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 2 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

HEAD OFFICE BRANCHES/ TRANSACTION OFFICES/ 24H- TRANSATION OFFICES

DIRECTOR OF 24H- TRANSACTION OFFICE

DEPUTY DIRECTOR TELLERS SUPERVISORS CASHIER

2

MOBILIZING CAPITAL THROUGH PRODUCTS OF SAVINGS DEPOSIT

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

3 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 100,046.00

(78.59%)

186,322.00

(98.65%)

275,134.12

(99.61%)

Current deposit 27,254.00

(21.41%)

2,556.57

(1.35%)

1,085.83

(0.39%)

Sum of deposits 127,300.00

(100%)

188,878.57

(100%)

276,219.95

(100%)

Source: DongA Bank- 24h Transaction Office no.12

0%

20%

40%

60%

80%

100%

27,254.00

100,046.00

Proportion of savings deposit to current deposit

at DongA Bank transaction office no.12

Savings deposits Current deposits

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 3 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

3

MOBILIZING CAPITAL THROUGH PRODUCTS OF SAVINGS DEPOSIT

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 do not always stay the same, evenly very low

b The fluctuation of currency in savings deposit

Unit: 1000,000 VND

Foreign currency 12,907 (12.9%) 8,552 (4.59%) 13,647 (4.96%)

Sum of savings deposit 100,046 (100%) 186,322(100%) 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 3 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 2 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,…)

4

MOBILIZING CAPITAL THROUGH PRODUCTS OF SAVINGS DEPOSIT

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 do 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 do 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

1 Reading material

This is the first activity needed to do 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

2 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

5

MOBILIZING CAPITAL THROUGH PRODUCTS OF SAVINGS DEPOSIT

communicate to their clients… To notice bank clerks’ manipulations is the vital method which decides whether I can do the tasks or not

3 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

4 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

1 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

6