OVERVIEW OF AGRIBANK EASTERN HANOI BRANCH

1.1. General information:

- Full name: Ngan hang Nong nghiep va phat trien Nong thon Viet Nam chi nhanh
Dong Ha Noi
- International trading name: Vietnam Bank for Agriculture and Rural
Development Eastern Hanoi Branch.
- Abbreviation name: Agribank Dong Ha Noi
- Address: 23B Quang Trung Street, Hoan Kiem district, Hanoi
- Date of establishment: 2
nd
July, 2003
1.2. Establishment and Development:
Agribank Eastern Hanoi branch was set up (pursuant to Decision No.170/QD/HDQT-
TCCB of Agribank Vietnams Board of Management) from part the human resource
and infrastructure of the old Vietnam Gold Corporation and of the Agribank Ba Trieu
branch (first-tier branch, under Lang Ha branch) to foster the urge to generate one
nationwide network which has created constantly Agribanks advantages in improving
the competitiveness in the challenging environment of Hanoi, the capital of the
country.
The main function of the branch is to act as a retail banker providing banking services
to customers ranging from individuals to small and medium enterprises, and
enterprises in the process of equitization. As a result, services diversity and customers
satisfaction are considered as its main objectives. The branch is operating under the
model of a modern bank with novel banking operation process and innovative
technology, consistent with modernization project of Vietnams banking system
today.
1.3. Achievements:
1.3.1. Organization development:
Back to its establishment time, Agribank Eastern Hanoi Branchs organization
structure consisted of only a single transaction office (which at first was not a bank
but the infrastructure of the old gold and jewelry company) with only dozens of
employees whose expertise isnt in banking (from the Vietnam Gold and Jewelry
Corporation). Up until now, a complete corporation model has been formed for this
branch, with five transaction offices spreading all over Hoan Kiem District. Along
with the development of the system, the total number of staffs and employees of the
branch has risen to more than 120 with the majority are graduates and post graduates.
1.3.2. Fund allocation and credit activities development:
Having overcome the most difficult period after the establishment, Agribank Eastern
Hanoi Branch has performed better gradually and fulfilled all the tasked relating to
credit and fund mobilization assigned by Agribank Vietnam. From VND 216 billion
of mobilized capital from the first year of operating, by 2013, the amount has
increased to VND 1,423 billion, almost seven times more. In the unfavorable period of
2008-2011, the branch still maintained safe ratios following business plan with over
VND 2,400 billion in deposits and over VND 1,400 billion in credits. Up to present, in
implementing the States reform guidelines, the bank has been active to mobilize
medium and long term capital besides the State budget fund for important projects and
works.
1.3.3. Technology development:
Knowing that technology is an important prerequisite for the development of a
modern bank, Agribank Eastern Hanoi has invested considerably into this area. Other
than the intra-bank payment network, the branch also participates in interbank clearing
system SWIFT-TELEX, connecting cross border payment with other banks,
equipping, terminals and central payment program and serving governance tasks.
Many banking products and services based on IT like ATM, SMS Banking, Internet
Banking, etc. have been introduced in different scale and levels.
1.3.4. Human resources development:
The development of human resource has been focused to cope with the expansion
speed of Agribanks network. By the 2013s third quarter, Agribank Eastern Hanoi
has had over 120 staffs, in which the young staffs accounted for 60%, who are well
educated and highly qualified. In order to meet the demand of growing, training and
retraining are sufficiently paid attention to.
Training process of the branch focuses on two fronts: professional skill training and
managerial skill training. Many training programs have been conducted professionally
and systematically (post-graduate training, subject training, etc.). Oversea training
courses for the best staffs and employees are also set up regularly.
1.4. Organizational structure:
The BOD of Agribank Eastern Hanoi Branch includes one general director and two
vice directors, who are in charge of various duties. Up to now, Agribank Eastern
Hanoi Branch consists of eight departments and five transactions offices.
Network of transaction:
- Head office: 23B Quang Trung, Hoan Kiem District, Hanoi
- Transaction office number 1: 38 Ba Trieu, Hoan Kiem District, Hanoi
- Transaction office number 2: 79 Le Duan, Hai Ba Trung District, Hanoi
- Transaction office number 3: 59 Nguyen Thai Hoc, Dong Da District, Hanoi
- Transaction office number 4: 107 Mai Hac De, Hai Ba Trung District, Hanoi
- Transaction office number 5: 44 Le Ngoc Han, Hai Ba Trung District, Hanoi
1.5. Function of Departments:
Conceivably, it is known that Agribank Eastern Hanoi consists of a number of
departments which altogether subtly defines the goal and direction of the whole
branch. However, to demonstrate how all these organic divisions operate will
probably take a great amount of time. Therefore, to give readers the clearest
perception of the banks main functions, the report will only cover some of Agribank
Eastern Hanois key departments.
1.5.1. Credit Department:
- Performing its lending function and making sure the lending profiles is good
enough before approving credit proposal and managing disbursement plan and
debt payment.
- Doing the credit rating task and assigning the amount of PLL based on the debt
classification result and applying it with the internal controlling process exactly.
1.5.2. General Planning Department:
- Gathering necessary information of social, political and economic conditions,
the competitiveness and business progress of the branch.
- Setting up short-term and long-term detailed business plans and targets for each
department (financial ratios, operation plans and performance estimation).
1.5.3. Administrative & Human Resources Department:
- Human resources management: Sorting out the branch staff profiles, managing
salaries payment, appraisal system and other allied policies, taking
responsibility for recruiting and training new employees in a proficient
approach.
- Administration management: Outlining rules and regulations for managing the
branch and organizing internal activities of Eastern Hanoi Branch.
1.5.4. Finance & Accounting Department:
- Performing and managing all accounting and financial activities, especially
making consolidate accounting.
- Inspecting all business activities and finding out unexpected errors.
- Proposing accounting and financial methods and applications, and submitting
complete reports.
1.5.5. Marketing & Service Department:
- Identifying and developing potential individual customers, carrying out current
products (credit, deposits and insurance) suitable with the bank orientation;
expanding customer-focused marketing program by collecting the needs and
feedbacks from the customers about branch products and submitting evaluation
reports to make suitable adjustments.
- Selling retail banking services: Establishing selling plans for individual
customers; giving advice to customers to help them choosing their best services.
- Evaluating and extending credits to local market, keeping track of every local
borrower, collecting and filing every available bit of information for credit
revising process.
1.5.6. I nternal I nspecting Department:
- Preparing and developing flexible and feasible risk-focused audit plans that
demonstrate the activities of the branch and the frequency of audit conducted in
the whole branch.
- Making sure that the application of quarterly audit and inspection plans works
as approved, and executing auditing activities, fulfilling special assignments,
projects and other duties requested by the BOD.
- Monitoring whether the annual program, goals and objectives of the branch are
achieved.
- Checking that cash and other assets of the branch are duly preserved within the
scope of duties of the branch.
1.5.7. Subsidiary Division (including Transaction office 1, 2, 3, 4)
- Administrating customers accounts, making face-to-face transactions,
providing all available banking services (for example transferring, foreign
exchange, or agents) and receiving feedbacks from the customers.
- Mobilizing funds through several channels such as deposits, issuing valuable
notes in VND or other foreign currencies.
- Doing credit activities with all types of customers: lending money, discounting
notes, disbursing loans and so on.
1.6. Core Business activities:
1.6.1. Capital mobilization activities:
In order to raise fund for operations, Agribank Eastern Hanoi Branch has been
occupied in the following means:
- Taking deposits from organization, individuals in the form of demand deposit,
current account and time deposit.
- Issuance of valuable papers of short, medium and long-term such as bond,
promissory note, deposit certificate and other kind of valuable papers.
- Borrowing funds in the form of transferring from the Head office of Agribank
Vietnam.
- Other borrowing forms according the rule of SBV
1.6.2. Credit activities:
Credit activities of Agribank Eastern Hanoi Branch include giving loans to individuals
and corporation, and guaranteeing.
a) Making loans:
For individuals, the branch has developed a various range of types of loans to better
meet the diverse demands of customers: Home loan, car loan, consumption
installment loan, loan secured by the mortgage of valuable papers/ certificate of fixed
deposit, asset-based loan, unsecured overdraft, etc.
For corporations, Agribank Eastern Hanoi also provided a variety of products such as
corporate overdraft, export financing loan, building construction loan, etc.
b) Discounting valuable papers:
The Eastern Hanoi Branch of Agribank supports the demands of customers who have
purchased its valuable papers by buying them back in form of flexible account. The
operation is also applied in providing loan to corporations and organizations secured
by the mortgage of valuable paper or certificate of fixed deposit at which the loan or
discount amount can be up to 100% the value of valuable papers or certificate of fixed
deposit.
c) Guaranteeing:
Guaranteeing activities of Agribank Eastern Hanoi Branch involves various kinds of
forms like tender guarantee, performance guarantee, guarantee certification and many
other kinds.
1.6.3. Other banking services:
Agribank Eastern Hanoi Branch offers many quality services to bring convenience
and advantages to its clients like issuing credit and ATM cards, providing automated
payroll, automatic fund transfer, home banking, SMS Banking, Internet Banking,
International payment service, etc.