MAJOR ACTIVITIES PERFORMED AS AN INDUSTRIAL TRAINING (I.T) STUDENT IN A BANK

a.                 Activities as a credit  officer
b.                 Activities as a  cash  officer
c.                  Activities  as  customer service  officer
d.                 Activities  as a finance/Accounts officer

a.                  Activities as  a credit officer : 
In EBSU MFBL, the  credit dept  gives out two major types of loans
i.  Business  loan
ii.                 Salary loan /Over draft

Business   loan is  the loan given to customers  for business  purpose.  In business loan the customer  must present collateral to the bank. Since  majority of the customers  are Ebonyi State  University staff,  and the bank belongs to  the  University, staff salaries are paid into the bank. This  stands  as collateral  for the customers. 
However, customers   who are not EBSU Staff must   present a developed land or property as collateral 
It  can be  farmers coming together  to obtain loan.  These farmers must know themselves and  each  person must have a guarantor. 

Procedure  for obtaining salary loan 

·  The customer must have a current  account with  the bank  and must haye actively  operated the account for at least three months.
·  The customer must  obtain  and complete the loan   application form.
·  The customer must write an application letter.
·  He /she must provide  a senior  staff of the university of  level  13 or  above  as  guarantor. If the customer  is not a staff of the university, he /she must get a  renowned or legitimate business man with landed  properly  as guarantor
·  Before the  submission  of application and completed forms, the customer is educated on what  it means to  obtain loan and the penalty involved in any case  of  default
·  The application letter must contain the purpose of  the loan, the  means of repayment, the required sum  and  the loan duration
Micro leasing charges
Interest  :  20% (staff) and  30% (non-staff)
Management  fee :  1%
Commission on  turnover (COT) :  N5.00per mile
Loan inspection
This involves visiting the customer’s farm  or  business place  to ascertain the repayment ability of  the customer if granted the loan
The guarantors are also visited to see if they  have what  it takes to be guarantors
After the visit, I then prepare loan appraisal form  depending on whether the  loan is for   agriculture or building project. All these will be attached  to the customer’s file and passed to the loan committee  through the head of credit.
If  the loan is N100,000 and below, the file   moves from the credit officer  to the head of  Credit  , then to the head of Internal Control / Risk  Management, and  then to the managing  director for approval  or disapproval  depending on the   comments of  he  afore –mentioned officers. But if  the loan is  above N100,000 the file moves on to  the bank’s credit committee  for approval /disapproval .
When  the loan is approved  the customer’s account is then  credited with the sum after  all charges must have been  deducted. The tenure for business   loan is maximum  of  12  months, and the interest is  spread across   the   12   months for ease of repayment. The bank  adopts  depreciating method   of interest  repayment . a  grace period of I month is given. This  is  the  period  given  to  the  customer before   repayment starts.
Commission on turn over COT is calculate thus:
N5.00 per mile  (N5.00  for  every  N1,000) 
Therefore,  COT on N100,000 =N500 + 1%  management  fee
1% management  fee  =N1000
Finally the customer goes home with N98, 500
Computation of charges on business loan
For example:
If  a farmer is granted loan of N100,000  to pay  back within  12 months at interest rate  of  20%  as a  university staff,  
Principal is calculated  thus:
100,000/12  =8333.33
The principal  for  every month  =N8333.33 
Interest is calculate  thus: AT  20%
100,000 x 20/100 =200,000
20%  of N100,000 =N20,000
This is  further divided into  12  months   20,000 /12 =1666..66 (monthly) 
Therefore, the  farmer pays back  N9,999.99 for the  first month and it reduces in subsequent months. 
The same procedure is  applicable for  a non staff with  30%  interest charge
[[
LOAN REPAYMENT / AMORTIZATION SCHEDULE
Customer






Principal 
100,000.00












Interest
              0.3












Tenor
              12





Month
Opening
Principal
Interest
Total
Closing


Balance 
Repayment
Payment
Repayment
Balance
1% mgt fee







Jan-12
100.000.00
8,333.33
2,500.00
10,833.33
91,666.67
1,000.00
Feb-12
91,666,67
8,333.33
2,291.67
10,625.00
833,33.33

Mar-12
83,333,33
8,333.33
2,083.33
10,416.67
75,000.00

Apr-12
75,000.00
8,333.33
1,875.00
10,208.33
66,666.67

May – 12
66,666.67
8,333.33
1,666.67
10,000.00
58,333.33

Jun-12
58,333.33
8,333.33
1,458.33
9,791.67
50,000.00

Jul -12
50,000.00
8,333.33
1,250.00
9,583.33
41,666.67

Aug – 12
41,666.67
8,333.33
1,041.67
9,375.00
33,333.33

Sep -12
33,333.33
8,333.33
833.33
9,166.67
25,000.00

Oct- 12
25,000.00
8,333.33
625.00
8,958.33
16,666.67

Nov -12
16,666.67
8,333.33
416.67
8,750.00
8,333.33

Dec. – 12
8,333.33
8,333.33
208.33
8,541.67




100,000
16,250.00
116,250.00



iii.              Salary loan /over draft:  this is a short term loan given   only to customers who receive their salaries through EBSU MFBL.
This is a loan granted when a customer has an urgent need for money and his account balance cannot carry the said sum. The bank offers this loan in anticipation of withdrawing it as  soon as the  next  salary is paid  into the customers  account .
The bank cannot grant any O/D above  N150,000. O/D granted any customer is dependent on whether  his/her salary  can  carry all  the changes.
Procedures for  obtaining salary loan.
-     The customer  must have  a salary account with the bank
-    He /she  must  be  sure that   his / her account is on  debit
-    He/she  must write an application, stating the required  amount, purpose of loan, means  of  repayment, normally through next salary
-    He/she  will complete the overdraft application form
On   submission, the file is appraised by the credit  officer and passed  to head of Credit for  approval or disapproval. Such loan is disproved if the customers  salary cannot be  take care of all the charges and  deductions,  However, the customer  is always advised  to reduce  the required sum  to what his/her salary can carry
EBSU  MFBl charges on overdraft (OD).  Processing   fee :
Below N10,000  = N750
N10,000 to N19,999:  N1500
N20,000 and above =N2500
e.g . A farmer who is  granted over draft of 20,000   will be charged N2500 +100=N2600 only.
The  tenure for salary  loan is max of  30 days
COT= N5.00 per mile
b.                 Activities as a cash officer :
The  cash unit deals with cash vault-out and cash vault- in,  receiving and payment of cash from /to customers, Balancing of physical cash   with system cash,  and  disbursement of cash advance (money used to run the day to day activities of the bank).  
In the morning, two persons go into the vault  and vault out a certain amount for the  day. The money is handed over to the cashiers and it is  recorded as vault-out in the cash register.
After the day’s business,  Vault-out – Payments + Cash advance +  Deposits  = vault-in. The vault-in must balance with system balance:
I  receive deposits from  customers by stamping   and  signing on their  deposit teller,  the teller is  triplet  bank  copy (white) customer  copy (Blue)  and  control copy (pink)  I ensured that  tellers are well completed .
I also paid cash to customer. I scrutinized the cheque and confirm the account balance of the customer before paying. We also carry out cash shipment from and to our account in other banks.

Activities as a customer service officer 
In the banking sector customers relationship officer is a front office staff that entertains all forms of enquiry from the clients (customers). The Customers relationship office is the first point of call of the bank with the public who gives information about the Banks products and services and renders satisfactory customer relationship. As a customer’s service personnel, I performed the following:
i. Opening of account for customers
ii.                             Issuance of cheque booklets on request
iii.                          Stop orders
iv.                          Computation of interest rates
v.                             Statement of accounts
vi.                          Checking of account balance and account numbers
vii.                        Sales of scratch cards

i. Opening of account
Account opening forms the major activity that occupies customer relations officers (CRO) job which takes some steps as follows:
A customer is given an account opening form which the customer completes and returns. On return of the completed form, I reviewed the form and accompanying documents and check if they are complete.
If documents are complete, I prepare the document and forward them to the Head of transaction for signing off. If the documents are not complete I inform the customer about the missing item and advice accordingly.
I carry out due diligence to make sure that the customer’s information comply with KNOW YOUR CUSTOMER (KYC).
When all these necessary documents are complete, Head of transactions or Branch Manager signs off the documents, and account is opened. After which I inform the customer of the account number and issues letters, identity cards, saving passbook, withdrawal booklets, and cheque booklets as the case may be.
Finally, all account particulars/mandate are filed and labeled and kept safely.
Current accounts
Current account is a type of account maintained for customers in which teller is use to pay in money and cheque is use for withdrawal. Statement of transactions involving these accounts is prepared for the customer on request. Bank charges commission on turn over (COT) on current which is N5 on every N1000 credited into the account. Customer can obtain loan/overdraft with current account.
Documents required for opening cooperate current account
-   Duly completed Bank application forms.
-   Passport photographs
-   Duly completed mandate cards
-   2 reference forms duly completed
-   identification of signatories–international passport/drivers license

Documents for personal current account
-   Duly completed bank application form
-   Two (2) passport photographs of signatory, with name and signature at the back
-   Two duly competed mandate cards.
-   Two (2) reference form duly completed
-   Utility bill
-   Drivers license
-   International passport. And minimum opening balance of 2000
Savings accounts
A saving accounts is an  account maintained  for  a  customer with the aim  of encouraging small savings on which interest is paid. Money is paid in with deposit slip and withdraws with withdrawal slip. Customer cannot get loan/overdraft with savings account.
Documents for personal savings account
-   duly completed application forms
-   duly completed mandate  cards
-   valid  ID
-   2 passport photography
-   the banks ID card  form 
-   minimum of  N2000

ii.                             Issuing of cheque book
If a customer’s cheque booklet is exhausted, I will issue the customer a cheque requisition slip, which the customer fills and signs on. I then send the slip to the software maintenance officer who prepares another cheque booklet. The slip is endorsed by the officer who produces the cheque and is sent to the head of Operators who debits a fee of N1000 from the customers account. After the fee is debited, I will collect the cheque booklet and register   it into a cheque  book collection register which is filled and signed by  the customer and then he/she collects  his cheque  booklet.
Counter cheque is issued for N300 per leaf.

iii.                          Stop order:
Stop order is done when a customer gives an order for a certain instrument to be stopped with a written instruction, as a customer relations officer, I receive the letter and verify the request. The letter will be time-stamped, then I confirm the signature, if correct I then pass the letter to the operations manager for authorization. After which the cheque number is taken and the account is   blocked immediately.

iv.                          Computation of interest for savings account deposit.
When I was posted into saving account deposit section, I participated in calculating interest   for customer.  This is done by staff in savings deposit account monthly on individual account with two percent interest (2% interest ) to  each account.  Eg if a customer has  50,000 as his  total balance, the  interest will be calculated thus:
 2                 x   50,000
100                1           =  N1,000

v.                             Processing of cheques and contra – vouchers: 
This was done at my stay in current deposit account. Here, before cheques goes to cashier for payment, it first passes through I.T. Staff. Who vets the cheques, process it for signing and forward it to casher for payment
N.B:
Contra –vouchers are those vouchers used to run internal work in the bank, it exist in credit and debit forms. These vouchers are not used to cash money at the counter but can be used to credit or debit customers account in accordance with the instruction.
d. Activiteis as A Finance/Accounts Officer
 Here, we hold the key to our relationship with other banks .I was in charge of the banks account with other banks.
I receive drafts and post them, receive chaques  and post  them,  then I go to other banks where  we have account and  lodge in  the cheques and  drafts. I record all transacts between EBSU MFBL and other banks. We prepared bank statements account and submit to CBN on monthly basis.

Minor activities performed

My minor activities in the Bank include the following:
-   Typing and printing of document using computer
-   Separating of daily posted deposit slips into different classes of accounts.
-   Cross-checking of posted transactions and their corresponding slips.

(a)      Typing and printing of document: I typed letters or any necessary document required by the bank in most cases the manager’s secretary was absent.
(b)      Separating of daily posted deposit slips into different classes of accounts: at the beginning of everyday, before the bank is opened to customers, I pack out all the box teller copies from the box and lock the box back. I separate the posted tellers into savings
(c)       Cross-checking of posted transaction and their corresponding slips: At the beginning of every workday, the total bank transaction of the previous day is printed out and kept with its corresponding vouchers, receipts, tellers and cheque into an envelope and give to a member of staff to cross-check, I separate the vouchers and all other document into debit types and credit types. If I collect a debit voucher for instance, I will look for its corresponding posting in the computer printout and check if its details in the physical vouchers taller/corresponds with the details which was posted.


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