1 VIETNAM NATIONAL UNIVERSITY, HANOI INTERNATIONAL SCHOOL *** GRADUATE INTERNSHIP REPORT INTERNSHIP COMPANY/INSTITUTION: VietinBank- Phu Tho Branch Address: 136 Phu An Street- Phong Chau District- Phu Tho Town- Phu Tho Province Supervisor: PGS TS Ly Phuong Duyen Student’s full name: Ta Huong Quynh Student’s ID: 11071566 Major: International Business Class: IB 2012C Hanoi, March 10, 2016 LETTER OF THANKS This thesis is the result of six weeks of researching and writing It has been an interesting and invaluable experience I would like to give my special thanks to many people for their significant help, contribution and recommendations during my internship and writing process First and foremost, I would like to express my sincere thanks to Mrs Ly Phuong Duyen, my supervisor at Academy of Finance, for her invaluable guidance, encouragement, kindness and support I could not have been able to complete this thesis without her positive suggestions and guidance I also would like to thank all the managers and staffs of Vietinbank, Phu Tho Branch for their cooperation and motivation which create chances for student to experience new working environment in general, and evaluation for our good Last but not least, I wish to extend my warmest thanks to my family and my friends for their supports and encouragements in the making of this report I am truly appreciated TABLE OF CONTENTS LETTER OF THANKS Ta Huong Quynh IB2012c CHAPTER 1: LITERATURE REVIEW 1.1Overview of Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank) 1.1.1 General introduction of VietinBank Vietnam Joint-Stock Commercial Bank for Industry and Trade (VietinBank) was established in 1988 after being separated from the State Bank of Vietnam From a state-owned bank with initial tasks of only providing domestic financial and banking services, VietinBank has made great strides and strongly developed into one of the most modern and effective financial and banking groups in the country Being founded in 1988, the Joint Stock Commercial Bank for Industry and Trade (VietinBank) is one of the largest state-owned banks in Vietnam It has strategic partnerships with the International Finance Corporation and Mitsubishi UFJ Financial Group It has a market capitalization of VND 53.22 trillion (around $2.5 billion) as of late 2012, making it one of Vietnam's largest listed companies According to the VNR500 (Top 500) ranking, VietinBank is Vietnam's 13th largest company Besides, it has also built the largest enterprise customers, while confirming the implementation of prestigious items, objectives, economic programs and social security of the country VietinBank owns the large local network with 151 branches, more 1000 transaction offices and high number of enterprise customers (about 100,000 enterprises) with some large corporations in various fields of industry It trades with over 900 banks/ financial institutions in more than 90 countries around the world Full name: Vietnam Joint Stock Commercial Bank for Industry and Trade- Trade Finance Center International Transaction: VietinBank Trade Finance Center (VTFC) Abbreviated name: VietinBank Address: 34 Cua Nam Street, Hoan Kiem District, Hanoi City 1.1.2 Fields of operation Business operation of VietinBank includes activities in four main areas Firstly, in banking, VietinBank functions as a leading experienced bank providing full of banking services such as: financial services, brokerage, loan syndication and advisory, modern, convenient banking products Secondly, VietinBank also provides products for non-life insurance designed to match the overall package to customers of VietinBank Next, in stock field, VietinBank provides a wide range of brokerage services, investment and investment consultant with the ability of quickly developing a system of agents to receive orders nationwide VietinBank is the largest bank listed on the stock exchange in Viet Nam in terms of total assets, lending, and deposits and VietinBank remains the second largest bank in terms of branch network… Last but not least, VietinBank’s activities in financial investment include financial leasing, security trading and capital contribution with the aim of establishing investment companies to the project; Especially, it plays a leading role in coordinating a lot of key projects of the country such as highway, international airport, etc 1.2 Overview of VietinBank – Phu Tho Branch 1.2.1 History of construction and development Vietnam Joint Stock Commercial Bank for Industry and Trade –Phu Tho Branch (VietinBank – Phu Tho Branch) was founded on 15/07/2006, headquartered at No 136, Phu An Street, Phong Chau District, Phu Tho Town, Phu Tho Province Establishment and development history of VietinBank, Phu Tho Branch also associated with the history and development of VietinBank In 2006 budget allocation department split from BIDV according to th Decision No 192/QĐ/HĐQT/NHCT dated June 29 2006 issued by the Government, became the General department of industry and trade, directly under the Finance Department Therefore, VietinBank was not totally a commercial bank It was a state-owned bank, which has funds receiving from the state budget to carry out allocation and loan in the capital construction sector function VietinBank generally and Vietinbank – Phu Tho Branch in particularly has actually worked as a commercial bank VietinBank – Phu Tho Branch is responsible for mobilizing short, medium and long-term funds from economic elements: non-government organizations, credit organizations, businesses, residents and foreign organizations in VND and USD in order to give short, medium and long-term loans to all organizations, economic elements and residents 1.2.2 Organizational structure The organizational structure of VietinBank, Phu Tho Branch is a modern one that is based on the law and business environment characteristics of Vietnam, the management requirements of VietinBan and the main functions of each department Main functions and tasks of each department has been clearly identified to ensure the connection among the departments and to meet the requirements of management in the branch Board of Directors: is responsible to BIDV for entire the branch‟s business result and in charge of managing directly all the activities Enterprises Customers Relation Department: makes international payment, loans, and builds good relationship with enterprises Individual Customers Relation Department: makes international payments, loans, and builds good relationship with individuals Credit Management Department: analyzes customers information, makes appraisal process to meet the borrowing demand of customers Enterprises Customers Transaction Department: makes monetary Transaction Department: makes monetary transactions with enterprises Individuals Customers transactions with individuals Budget Services and Management Department: is responsible for storing, transporting, managing cash or other valuable papers, identifying counterfeit money and making budget services at the branch Risks Management Department: manages risks in the branch Financial Accounting Department: is responsible to Board of Directors for building financial plans and the branch‟s financial situation Human Resource Department: arranges and assigns other tasks for the staffs General Planning Department: collects information, analyzes market, builds business plans, and manages foreign currency trading to ensure stable business performance of the branch Figure 1.1: The organizational structure of VietinBank, Phu Tho Branch Broad of Directors Relation Group Enterprises Customer Relation Dept Individual Customer Relation Dept Risks Group Risks Manage ment Dept Operation Group Credit Managemnt Dept EnterpriseC ustomer Transaction Dept Individual Customer Transaction Dept Budget Services& Managemnt Dept Internal Group Financial Accounting Dept Human Resource Dept General Planning Dept Văn Phòng 1.2.3 Main activities of VietinBank, Phu Tho Branch Main activities of VietinBank, Phu Tho Branch include: Raising capital in Vietnam dong and foreign currencies from residents and all organizations, economic elements in various forms Lending short, medium and long-term in Vietnam dong and foreign currencies Being a fiduciary agent capitalizing, lending from the official development assistance source of the government, other countries and finance and credit institutions to firms operating in Vietnam Investing in the form of contributing capital, joint venture, associated with the domestic and foreign economic organization, finance and credit institutions Implementing quick money transfer services, domestic payment via computer networks and international payment via SWIFT global network Being a payment agent of international credit cards: Visa, ATM Implementing service funds: foreign currency exchange, payment exchange, remittances payment, providing cash at your door Implementing financial services: guarantee transactions, investment advice transactions 1.2.4 Overview of business performance 1.2.4.1 Business result: The profit before tax indicator is one of the most important indicators of business performance report of all banks This reflects the most obvious performance of the banking business aimed at generating profits, paying dividends to shareholders Moreover, it represents the reinvestment level that banks can use to expand the scale and service quality VietinBank, Phu Tho Branch in 2013-2015 Unit: VND billion Criteria Term Deposit Non- term Deposit Total Year 2013 Year 2014 Year 2015 Amount Percent Amount Percent Amount Percent 686.9 78.02% 677.8 78.2% 709.5 66.75% 193.5 21.98% 188.9 21.8% 353.3 33.25% 880.4 100% 866.7 100% 1062.8 100% (Source: The General Planning Department of VietinBank, Phu Tho Branch) According to the table, there was a slight changed in the capital mobilization operation from 2013 to 2015 Term Deposit always accounted for higher proportion (more than 65%) The figure was VND 686.9 billion in 2013 and climbed to VND 677.8 billion in 2014 then VND 709.5 billion in 2015 Contrast, Non- term Deposit is always less than 35% From 2013 to 2015, the figure was showed that Non- term Deposit has tent to increase In 2013, Nonterm Deposit was VND 193.5 billion and rised to VND 188.9 billion then VND 353.3 billion in 2014 and 2015 respectively The reason VietinBank- Phu Tho Branch focused on Term Deposit was that having high stability, so VietinBank usually focus on methods to stimulate the mobilization deposits The most common method is still diversified the types of deposits, particularly special offering many maturity of payment to meet customer needs, for each maturity of application of different interest rates, usually a long term deposit will usually receive a higher interest rate The most important feature of this type of deposit is high safety, high stability due to the payback period has been determined; banks will have a very strong base in strategic planning for the management of its capital Therefore, VietinBank has been often more active when using this resource, low reserves, more profit and commercial banks can use this money to grant the credit limit longer term, 2.4 Assessment capital mobilization of VietinBank- Phu Tho Branch 2.4.1 Achievement During the period of 2013- 2015, VietinBank- Phu Tho Branch’s operation experienced many difficulties due to unstable development of macroeconomic developments along with specifically geographical are of the branch However, the bank has achieved some following significant accomplishment: Firstly, in recent year, capital mobilization in VietinBank- Phu Tho Branch has always achieved good growth Especially, capital mobilization interest rates have increased to promptly handle the changes in market interest rates VietinBank- Phu Tho Branch has repeatedly adjusted capital mobilization interest rates, using competitive interest rates with other forms of term deposits Simultaneously, the branch has strengthened and expanded the incentive for customers in such aspects as: reduced cost to serve, advise deposits, open saving promotion, develop new products Besides, resource capital mobilization of term deposit is always higher than non- term deposit Therefore, the bank can easily manage the operations of the fund and the liquidity of money is more stable Next, VietinBank- Phu Tho Branch has focused on improving customer service quality The Bank has actively applied high technology in the banking operations in order to modernize the branch and transaction systems step by step Besides, building staff with high qualifications, good management capacity, polite, caring, thoughtful, honest has an important contribution to make a reputation with customers 2.4.2 Limitation Firstly, the indicators about scale of capital mobilization are too high compared to the safety threshold That's why banks are facing the risk of affordability Second, there are no diversity about products to meet a need for much kind of customer and no products with unique features The deposit interest rate of VietinBank- Phu Tho Branch is quite high with other bank so that it will have high risk Thirdly, the marketing policies of VietinBank- Phu Tho Branch are mostly the same There are no distinctness and breakthroughs in marketing policy of this bank Finally, Mobilizing capital structure has irrational The proportion of transaction deposit/ total capital mobilization was lower Thus, it is not suitable for retail banking strategy Moreover, capital management capabilities ineffective, especially, the ability to manage the deficit and surplus funds between branch and transaction offices, the ability to balance between deposits and term loans 24 CHAPTER 3: INTERNSHIP PURPOSE AND ROLES 3.1 Internship purpose As a senior student, I believe I need to an internship before graduation Especially, after internship time at VietinBank- Phu Tho Branch, I have a lot of chances to have real experience with the bank Nonetheless, I regarded, I need to have more experience to adapt with employer requirements in the future Internship is where I can explore myself, have on- sight knowledge and exercise my knowledge – things I’ve learned in the university 3.2 Assigned work As an intern, the foremost important thing is you need to understand how your company work VietinBank gave me the great opportunity to observe about mechanism of action of the banking system in general Because of internship time only lasts months, I did not have conditions to participate in practice all departments However, I had been practiced in some important departments of the Bank and related directly to the capital mobilization operation, which helps me get the documents and real information to recognize the effectiveness and limitations of capital mobilization activities which can make analysis, evaluation to complete this writing Specific, - Understand the needs of the customer to the bank and guide customer to the counter transactions or departments responsible for the implementation of customer needs - Directly joined in counseling clients about capital mobilization to help clients understand the rules, benefits, forms, interest rates as well as the Ta Huong Quynh IB2012C 25 minimum capital mobilization level, the maximum raise capital level - Guiding clients implement capital mobilization procedures after checking conditions raise capital with clients under Article Then, guiding clients register their signatures and make a contract The contract is made in 03 copies, 01 copies delivered to customers, 01 sent to the accounting department, 01 professional records - Carrying out of marketing new raise capital products and create relationships with customers directly and indirectly: storage of personal information, emails, phone numbers - Receiving feedback from customers about bank services in general and capital mobilization services in particular - Make a list of urban areas, apartment buildings contain potential customers near the branch Then, print, distribute leaflets which introduced capital mobilization product package in some apartment buildings in area on the list established 3.3 Method of implementing My method to performing assigned works well was reading all information about the products and services of the Bank: researching working process, data tables, procedures forms, Therefore, I could get the necessary information for consulting customers: helping them fill application forms and solve complex procedures Ta Huong Quynh IB2012C 26 CHAPTER 4: EXPERIENCE GAINED AND CONTRIBUTION 4.1 Experience gained 4.1.1 Applied knowledge Internship in general is treasure for senior student who is preparing for graduation and future career For a student like me, to work in an active environment like VietinBank was especially valuable, which not only training myself into adaptive person with excellent skills, but also prepare for my career with knowledge During my internship period, I have applied a lot of knowledge that I studied in the university into real environments such as analysis financial statement , understand the principle of the loan, the process of capital mobilization etc 4.1.2 Marketing An understanding of the market, consumer wants and needs and the business requirements of the client are essential for success in a marketing role, hence the importance of market research which I have learned in VietinBank Prototypes, tests, questionnaires, feedbacks were the key points for planning successful marketing campaign Well said as better prepare, better results, each campaign requires a lot of progress 4.1.3 Soft skill To be successful, professional knowledge alone is not enough I believe, along with strengthening my knowledge and experiences, soft kills were the key to my success, not only with Bank, but also for future career with any company Through this internship period, I learnt a lot of soft skills such as: • Interpersonal and communication skills: Communication skills are vital I am required to build an understanding of the consumer as well as the needs of the client, and express these to other members Ta Huong Quynh IB2012C 27 of my team and translate these needs into a marketing campaign • Creativity: Depending on my role is implementing capital mobilization fields, specifically, introduction new insurance products of the branch, I am required to write copy for marketing materials and press releases or help with the layout and design of media On top of this, my work may involve contributing to the ideas stage of planning a campaign • Teamwork: I am required to work towards a coordinated campaign, which may involve many different elements and media I improved myself as thinking of teamwork quality Teamwork is essential for members to ensure that the needs of the client are met and the campaign is cohesive and effective • IT skills: It is essential that I had adequate IT skills as marketing is increasingly conducted through online channels 4.2 Contribution to the company During internship period, I had contributed a small part to company: • Working with customers: introducing products of the branch, making application forms, collecting information, contacting customers through email • Supporting other staffs: Solving data, setting schedules, transporting necessary documents 4.3 Recommendation for enhancing the efficiency of capital mobilization After finding and analysis, there are some problems in capital mobilization exist in VietinBank - Phu Tho Branch Therefore, I would like to offer some recommendations VietinBank- Phu Tho Branch based on their limitation  High cost of capital mobilization Ta Huong Quynh IB2012C 28 Besides, The growth rate of capital mobilization depends mainly on two factors are long term deposit interest rate and non-term deposit interest rate Therefore, when reducing short term deposit interest rates also not decrease the growth rate of capital mobilization VietinBank- Phu Tho Branch is still a small bank and no large scale so they have to raise deposit interest rates to attract customers Besides, mobilizing capital is suffering with the fierce competition, the high cost of raising capital causes interest rates, promotional costs, advertising cost high, which affect the profitability of VietinBank as well as Phu Tho Branch Therefore, it is necessary to find out solutions to reduce the short-term interest rate but the growth of mobilized funds is still increased Some solution are proposed following: Firstly, it is necessary to increase the scale of VietinBank- Phu Tho Branch Currently, VietinBank- Phu Tho Branch has only transactions: Hung Vuong, Phu Ho, Cho Me, Thanh Ba, Doan Hung, Ha Hoa Initially, VietinBank- Phu Tho Branch should open more transaction offices to increase the scale After that, the Branch should build the plan for the proposed new branches Secondly, VietinBank should enhance the position to the standard of the big banks The researchers propose a solution to strengthen marketing activities VietinBank could link to the Big banks to customers withdraw or transfer money without cost In the future, when VietinBank has more strength, they could think about the decrease of deposit interest rate to decrease capital costs  Product is lack of diversity and lack of unique In fact VietinBank has some product with many attractive benefits for services for businesses and especially is high interest so that the Bank attract more customer and increase the amount of capital mobilization However, there are no diversity about products to meet a need for much kind of customers and no products with unique features VietinBank in general as Ta Huong Quynh IB2012C 29 well as VietinBank- Phu Tho Branch in particular should enhance Product Development Department by improving quality of product, using high technology, recruit creative officers who have ability in developing product  Marketing has not innovatived VietinBank implemented marketing programs through promotional products relatively more However, the promotion programs of this bank are too common This can be seen through the promotional gifts There is no difference in promotional gifts compared with other banks Besides, the marketing activities have not been focused This leads to new product packages are not widely known Therefore, the authors will give some of measures on marketing policy for VietinBank • VietinBank should have gratitude customers’s programs For example, sending a birthday message to customers or other important occasions • Bank should upgrade modern technology services to meet the new needs of customers to introduce more contemporary image of them to the customers • Bank should synchronize the newly brand image across the system and build corporate culture, innovative style, quality customer service • Bank should promote the advantages of Core banking to offer new packages of products and services Ta Huong Quynh IB2012C CONCLUSION Capital Mobilization improvement is always an essential and urgent task of all banks In recent years, capital mobilization operations of VietinBank has achieved good results but there has been still difficulties and limitations due to narrow scale, high inflation, slow economic growth rate, demand reduction, marketing quality etc These bad factors immediately affected the operation of the banking system in general and capital mobilization in particular In that situation, VietinBank in general and VietinBank – Phu Tho Branch in particular has tried to prevent, restrain the risk and improved capital mobilization to achieve admirable results Recognizing this problem during the internship at VietinBank Phu Tho Branch, I would like to mention some of the problems in capital mobilization activities, then provide some proposals with the desire to improve the branch’s operation However, due to limited knowledge, time and ability of the writer, the graduation thesis cannot avoid mistakes and limitations I hopes to get constructive feedback on this thesis from teachers and students to make it better Once again, I would like to express sincere thanks to Mrs Ly Phuong Duyen, the supervisor, for her constructive feedback and useful advice Besides, I also would like to show gratitude to Board of Directors and the staff of VietinBank Phu Tho Branch who gave the writer great supports during the internship REFERENCES Vietnam Joint Stock Commercial Bank for Industry and Trade- Phu Tho Branch, Business Result Report in 2013 Vietnam Joint Stock Commercial Bank for Industry and Trade- Phu Tho Branch, Business Result Report in 2014 Vietnam Joint Stock Commercial Bank for Industry and Trade- Phu Tho Branch, Business Result Report in 2015 Websites: www.vietinbank.com.vn www.cic.org.vn www.sbv.gov.vn www.wikipedia.org www.investopedia.com Schedule of the graduate internship VIETNAM NATIONAL UNIVERSITY, HANOI INTERNATIONAL SCHOOL SOCIAL REPUBLIC OF VIETNAM Independence – Liberty - Happiness Schedule of the graduate internship Internship Company/Institution: VietinBank- Phu Tho Branch Supervisor: PGS TS Ly Phuong Duyen Student’s full name: Ta Huong Quynh Student’s ID: 11071566 Class: IB 2012C Major: International Business……………………………………… Week Date Tasks performed - Internship at Individual Customer Department + Understand the needs of the customer to the bank and guide customer to the counter transactions or departments responsible for the 18/01/2016implementation of customer needs 22/01/2016 + Guide the customer to fill in some form of bank documents at the counter transactions such as Cash Deposit, Cash Withdrawal… - Internship in Retail Department + Learn, research about credit operations of the Branch in general and retail credit activity in particular through the documents in the office + Exchange credit documents , internal documents of the Retail 25/01/2016- Department with the relevant departments to learn more about credit 29/01/2016 business process - Internship at Credit Department + Observe, learn the process of implementation of credit management - Sorting, classification, records, documents related to credit activities of the branch - Delivery and receipt of credit records at the request of the Customer 15/02/2016Management Department through the criteria and conditions stipulated 19/02/2016 by the credit process Week Date Tasks performed - Observing the process of working in other departments such as Risk Management Department, Staff of Financial Accounting Department, Human Resource Department… + Look up the credit information about new customers though credit information channel (CIC) - Guide borrowers write Loan Request Letter - Receipt of internal documents from Head of Department, responsible 22/02/2016- send documents to each specialist and save document in an Internal 26/02/2016 Document - Notify documents need approval to leaders of department - Participate in the meeting room: summarizing the week's activities, performance evaluation performance and implement new activities - Perform tasks such as at week - Make a list of urban areas, apartment buildings contain potential 29/02/2016- customers near the branch 04/03/2016 - Then, print, distribute leaflets which introduced capital mobilization product package in some apartment buildings in area on the list established - Perform tasks such as at week and week - - Carrying out of marketing new raise capital produ relationships with customers directly and indirectly: storage of personal 07/03/2016information, emails, phone numbers 11/3/2016 - Receiving feedback from customers about bank services i capital mobilization services in particular Supervisor’s graduate internship assessment VIETNAM NATIONAL UNIVERSITY, HANOI INTERNATIONAL SCHOOL SOCIAL REPUBLIC OF VIETNAM Independence – Liberty - Happiness Graduate Internship Evaluation (for Supervisor) Student’s full name: Ta Huong Quynh Student’s ID: 11071566 Class: IB2012C…………………… Major: International Business……………………………………………………… Internship Company/Organization: VietinBank- Phu Tho Branch………………… Supervisor: PGS.TS Ly Phuong Duyen………………………………………………… The performance of the schedule: Internship period starts from: 22/02/2016…… to 11/03/2016………………………………… ………………………………………………………………………………………………… Awareness, attitude: ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… Other comments: ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… Hanoi, March 10, 2016 Supervisor (Signature and Full name) Evaluation of Graduate Internship Report for Internship Company/Institution VIETNAM NATIONAL UNIVERSITY, HANOI INTERNATIONAL SCHOOL SOCIAL REPUBLIC OF VIETNAM Independence – Liberty - Happiness Graduate Internship Evaluation (for Internship Company/Institution) Student’s full name: Ta Huong Quynh………………………………………… Student’s ID: 11071566 Class: IB2012C……………… Major: International Business……………………………………… Internship Company/Institution: VietinBank- Phu Tho Branch………………… Internship period: 22/02/2016- 11/03/2016………………………………… Sponsor: ………………………………………………………………………… Compliance with regulations of the company/institution: ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… Relationships, communication in the company/institution: ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… The assessment of knowledge, skills and attitudes: ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… ………………………………………………………………………………………… [...]... of VietinBank- Phu Tho Branch Currently, VietinBank- Phu Tho Branch has only 6 transactions: Hung Vuong, Phu Ho, Cho Me, Thanh Ba, Doan Hung, Ha Hoa Initially, VietinBank- Phu Tho Branch should open more transaction offices to increase the scale After that, the Branch should build the plan for the proposed new branches Secondly, VietinBank should enhance the position to the standard of the big banks... (Source: The General Planning Department of VietinBank, Phu Tho Branch) The table shows the level of capital mobilization interest rates in 2015, VietinBank- Phu Tho branch is stable and high lead to capital mobilization operation achieved great efficiency 2.3 Analysis capital mobilization result of VietinBank, Phu Tho Branch in 2013-2015 2.3.1 Capital mobilization based on short, medium and long term Table... of VietinBank- Phu Tho Branch 2.4.1 Achievement During the period of 2013- 2015, VietinBank- Phu Tho Branch s operation experienced many difficulties due to unstable development of macroeconomic developments along with specifically geographical are of the branch However, the bank has achieved some following significant accomplishment: Firstly, in recent year, capital mobilization in VietinBank- Phu Tho. .. Year 2014 Year 2015 Plan Real Plan Real Plan Real 860 880.4 900 866.7 1200 1,062.8 (Source: The General Planing Department of VietinBank, Phu Tho Branch) The table shows the stability and dominance of capital mobilization In 2013, VietinBank- Phu Tho Branch raised VND 880.4 billion, which achieved more 100.2% of the year’s proposed plan In 2014, capital mobilization of the branch was not absolutely... General Planning Department of VietinBank, Phu Tho Branch) According to the table, there was a steady increase in the total outstanding loans from 2013 to 2015 Short- term loans always accounted for a higher proportion (more than 60%) The figure was VND 370.5 billion in 2013 and it climbed to VND 445.3 billion, then VND 547.2 billion in 2014 and 2015 respectively The reason VietinBank Phu Tho Branch focused... the most fundamental activities of banks and abundant capital helps to enhance the credit quality and business performance, VietinBank Phu Tho Branch has applied a large number of policies to raise capital such as increasing interest rate of deposits, offering depositors gifts and preference rights… Table 1.2: Capital mobilization situation at VietinBank, Phu Tho Branch in 2013 - 2015 Unit: VND billion... Branch focused on short- term loans were that the loans can be collected faster, hence these items hardly cause credit risk to the bank This was a proper policy which contributed much to the constraint of credit risk at the branch CHAPER 2: REPORT OVER CAPITAL MOBILIZATION OPERATION OF VIETINBANK- PHU THO BRANCH 2.1 Forms of capital mobilization at VietinBank- Phu Tho Branch 2.1.1 Classification by time... BIDV, Phu Tho Branch in 2011 - 2013 Unit: VND billion Year 2013 Year 2014 Year 2015 Criteria Target Reality Target Reality Target Reality 21 22.1 22 24.7 35 30.6 Profit before tax ( Source: The General Planing Department of VietinBank, Phu Tho Branch) The table represents that there was a steady increase in profit before tax from 2013 to 2015 In 2013, profit before tax of VietinBank- Phu Tho Branch. .. General Planning Department of VietinBank, Phu Tho Branch) The table shows the stability and dominance of short term capital in the branch s capital structure From 2013 to 2015, short term capital was always the main more than 75 percent of total capital mobilized whereas medium and long term capital only accounted for less than 35 of the loans In 2013, short- term mobilized capital of the branch was... other banks in the province was also a cause of the fall in profit with the initially planned However, this was still a great achievement of the branch in the context of global economic recession and difficulties of Vietnamese economy VietinBank Phu Tho Branch deserved the largest bank in the province 1.2.4.2 Capital mobilization situation Capital always plays an important role in meeting demands of