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7/31/2019 Annual Report GBL
1/982010/11Annual Report
The Bank for All
7/31/2019 Annual Report GBL
2/98
Contents
1 Bank Overview 12 Vision & Mission 2
3 Core Values 3
4 Board of Directors 4
5 Message from Chairman 7
6 Message from CEO 9
7 Management Team 10
8 Department Heads & Senior Relationship Managers 12
9 Board of Directors Report 14
10 Product & Services 24
11 Branch Managers 36
12 Annexure A 38
13 Corporate Social Responsibility 41
14 New Initiatives 42
15 Auditors Report 43
16 Financial Statements 44
17 Risk Management Functions 88
18 Branch and ATM Network 92
19 Contacts of our Network 94
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Annual Report 2010/11 1
Global Bank Limited is a national level commercial bank promoted by highly prominent
business personalities/ groups and reputed individuals of the country who have excelled
in their field of business/profession with very good integrity and social standings.
Under the guidance of reputed Board of Directors and professional and dynamic
management team having extensive experience with proven track-record in thebanking industry, Global Bank is committed to offer a wide range of banking products
and services tailored with the state-of-the-art technology to meet the unique
requirements of all the customer/clients and thereby delight them by exceeding their
expectations.
With a shared vision of The Bank for All, Global Bank Team is committed to providing
the quality products and services to its valued customers with utmost courtesy and
care. We at Global Bank believe that delivery of quality products/services designed/
customized to best suit the customer need through continuous research/ development
and innovation is the foundation to build-up the trust and enhance the level of
confidence between the customer and the bank. Hence, Global Bank Team pledges its
commitment to always endeavor for delivery of innovative products/ services to all the
customers to best suit their requirements thereby ensuring the optimum benefit and
value addition to the customer as well as to all other stake holders.
Capital Structure
Authorized Capital: Rs. 3,000 Million
Paid-up Capital : Rs. 1,601.5 Million
1Bank
Overview
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Annual Report 2010/112
MissionTo win respectable market share through customer focused quality products and services,
innovative business solutions and technology driven banking thereby enhancing the growth and
profitability of the bank so as to ensure the optimum benefit to all stake holders at all times.
VisionThe Bank For All
2Vision
Mission
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Annual Report 2010/11 3
Integrity and Business Ethics:Commitment to integrity and business ethics
is our fundamental principle to do the business.
Teamwork : We believe that essence ofsuccess is team work and thus achievement of
VMO is possible only when every member of team
contributes to their ability. Most importantly
we consider all our business partners (clients)
as a part of the team with whom we share our
ideas/skills, learn from each other and take the
business relations to the greater heights so
as to be mutually beneficial which will ultimately
lead to the successful relationship.
Respect and Humility: We understandthat respect and humility are the key factors
to motivate and drive every individual towards
the organizational goals. We honor the
culture, language, ethnicity, social values and
entrepreneurial spirit of every individual across
the boundaries and draw strength from equal
opportunity and diversity thereby enabling the
growth of all the stakeholders.
Professionalism: Everything we do, we dowith the highest standards of professionalism.
Research and Development with focus on
business partners (clients/customers) is the key
to pursue innovation, deployment of imagination
and quality functions/characteristics and
translate new ideas into reality consistently
whereby we can delight the customer/clients
by delivering the products/services with
outstanding quality so that our relationships
with our clients will remain forever.
Good Governance: We are committed toensure the transparency and internal control
systems through clear-cut policy guidelines/
manuals, procedures, central banks rules
regulations for our own satisfaction and to
satisfy the regulators thereby ensuring the
Corporate Good Governance.
Loyalty: We maintain the highest level ofloyalty towards all stakeholders, particularly
the business partners (customers/clients)
and promise to walk alongside the business
partners at difficult times/situations. We will
strive to prove that Bankers are all weather
friends as against the traditional concept
of Fair weather friends by maintaining the
business loyalty at all times.
3Core
Values
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4Board o
Directors
Mr. Sandeep Agrawal
Mr. Surendra Nath Panta
Mr. Suraj Kumar Shrestha
Mr. Ashwini Kumar Acharya
Mr. Pushpa Man Shrestha
Mr. Chandi Shrestha
Directors
Chairman: Chandra Prasad Dhakal
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Chandra Prasad DhakalChairman
Sandeep AgrawalDirector
Suraj Kumar ShresthaDirector
Janak Sharma Poudyal
General Manager
Ashwini Kumar AcharyaDirector
Pushpa Man ShresthaDirector
Surendra Nath Panta
Director
Chandi ShresthaDirector
Bishnu Banskota
Company Secretary
From Left
Ratna Raj BajracharyaChief Executive Officer
Board Members at Board Meeting
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I firmly believe thatGlobal Bank Limited hasthe right mindset, the right
tools, the right people, the
financial strength and theganisational structure best
able to deliver and serve
shareholders to their full
contentment...
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Annual Report 2010/11 7
Dear Stakeholders,
It gives me immense pleasure to present the Financial
Statement and Annual Report of Global Bank Limited for
the year ended on 16th July, 2011.
Despite the year under review was characterized by
tumultuous global economy and political instability, the Bank
continued to deliver a strong core performance and carried
out strategies towards creating a customer-centric bank.
It continued to register significant improvements both
with regards to its systems and operations as well as its
financial results.
We have achieved operating profit of Rs.467 million.
Notwithstanding economic downturn, the bank saw a
significant net profit of Rs.225 million as compared to the
previous year. Deposit has increased to Rs.15,067 million
and Loans and Advances increased to Rs. 12,779 million.
Global Bank Limited has, therefore, carved its name well
in the market not only because of innovativeness but also
as a result of our important attributes-Professionalism,
veteran management; client/customer oriented and inbeing in the forefront for product development. Integrity,
teamwork and business ethics are some of our core values,
and they define the way we conduct our business.
Shareholders rebuilding confidence and trust
I understand how important it is for our shareholders
that Global Bank builds sustainable long-term value that is
reflected through the share price. I fully acknowledge the
significance of maintaining a disciplined approach to balance
sheet management and our commitment to returning
capital for your financing and investment. The best way
to do so, we believe, is to combine clear performancetargets with transparent disclosure, consistency and
good governance practice.
Governance
While the board of any company must ensure that a robust
governance structure is in place, we are equally committed
to fostering a culture throughout the organization that
values exemplary ethical standards, personal and corporate
identity, teamwork, taking personal responsibility and
respect for others.
Corporate Social Responsibility
Our employees also support a wide range of community
programmes, volunteering their time and energy to local
causes and initiatives. I am particularly proud of providing
scholarships up to 10th standard to the talented and well
deserving children of the martyrs. In addition, we have been
actively involved and focused on deprived sector lending to
help the poor and rule out the poverty in Nepal.
New Initiatives
The Bank will endeavour to engage in activities that offer
an appropriate risk and return for the investment made,
while ensuring security for all stakeholders. We will set
new standards in regulatory compliance, performance,
professionalism and innovation. We will continue and
strive to transform our bank into a world class financial
services provider, and endeavour to meet the expectations
of Stakeholders in the coming year and beyond. In this
journey of scaling the new heights, I solicit your continued
cooperation and patronage.
Conclusion
I firmly believe that Global Bank Limited has the rightmindset, the right tools, the right people, the financial
strength and the organisational structure best able to
deliver and serve shareholders to their full contentment. It
has the values, vision and mission that will sail us through
a successful journey and it is a privilege to have the
opportunity to serve as the Chairman of Global Bank.
Hence, with great pleasure, I would like to extend my
thanks and appreciation to the Board of Directors for
their support, advice and contribution towards another
successful year.
Also, my honest and sincere gratitude go out to our
proactive management and all 386 employees for their
continued hard work and commitment that underlie
strength of our business. It is through our employees that
Global Banks distinctive character stands out for our
customers and it is they who ensure that not all banks are
the same. Well done!
Chandra Prasad Dhakal
Chairman
5Message From
Chairman
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Our focus andconsideration is todrive the organization
to create measurable
long-term value for itsstakeholders, which
would be sustainable in
long run...
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Annual Report 2010/11 9
Dear Stakeholders,
Financial year 2010-11 was a remarkable year
for us as we were able to report an encouraging
financial result and better return to investors for
Global Bank. Despite the very challenging market
conditions, our net profit marked the growth of
208%. Our focused approach for the managed
growth in terms of revenue maximization, cost
minimization and better risk management helpedus for such a marvelous achievement. We could
settle some problematic accounts to contribute
toward better results.
With the changed prospective, we are focusing
toward portfolio diversification with increased
customer base. For the efficient service delivery,
we are focused on techno-based services and proud
to inform that apart from SMS banking, internet
banking, VISA Debit and Credit card service,
utility bill payment services and ABBS banking
facilities and real time transaction services is also
delivered. This array of products has placed Global
Bank among the top service provider not only in
the peer group, but in the industry as a whole.
Bank has achieved another milestone after getting
permission to collect Government Revenue.
To cater widespread customer base, we have
established our presence in 31 locations as
branch, 1 location to collect government revenue
and 36 locations for ATM services. We have
identified the information system as a major
tool to measure our performance and have taken
steps to strengthen the Information Technology
and Management Information System, which
has helped us to monitor business and meet
regulatory requirements of reporting.
Bank management has been focusing on
disciplined management, maximum customer
base, diversified portfolio, good corporate
governance, regulatory compliance and a
system driven and performance driven culture.
We are committed to incorporating these
commitments into our strategy, culture and
day-to-day operations. We continue to strive to
provide sustainable and balanced returns to our
shareholders. In order to meet our long-term
objective, we will continue to remain tactful;
be more observant in managing issues & shall
continue to strengthen our fundamentals &
competencies. We are dedicated to focus on
advancing our technology to meet the customers
needs and wants, making our bank the customers
first priority, which will significantly increase our
strength and possibility to reach our ambitions.
Our focus and consideration is to drive the
organization to create measurable long-term
value for its stakeholders, which would be
sustainable in long run. We are convinced that
a strategy that prepares us today to meet
the demands of the future on environmentalperformance, profitability and social
responsibility, is a winning strategy.
I would like to express my gratitude and
appreciation to our energetic and hardworking
staff and efficient management team. They have
provided better performance throughout the
years that has led the growth and reputation
of our bank. I also would like to express my
gratitude to BOD for their support and valuable
contribution.
Finally, I would like to thank the Nepal RastraBank, the Ministry of Finance, all other concerned
government agencies, regulators and valued
customers for providing us their full support in
our endeavors.
Ratna Raj Bajracharya
Chief Executive Officer
6Message From
CEO
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7Management
Team
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Hari Prasad Acharya
Branch Manager-New Road BranchSurendra Raj RegmiHead - Credit Control
Bhawani DhakalHead - Human Resources
Arati Rajyalaxmi RanaBranch Manager-Kantipath Branch
Prabin Raj Pokhrel
Chief Operating Officer
Ratna Raj BajracharyaChief Executive Officer
Janak Sharma PoudyalGeneral Manager
Manoj Gyawali
Head - Finance & Planning
From Left
Suresh Raj MaharjanHead - Marketing
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8Department Heads &
Senior Relationship Managers
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Raja Aryal
Manager-Credit
Manindra Raj Joshi
Manager-IT
Dil Bahadur Kafle
Head-General ServiceDepartment
Krishna P. Lamichhane
Head-Internal Audit
Ganesh Awasthi
Senior Relationship Manager
Sushil Shrestha
Operation InchargeKantipath Branch
Shanta Shiwakoti
Manager-Marketing
From Left
Buddhi Akela
Manager-CreditRanjan Thapa
Head-Treasury
Anuj Acharya
Incharge-Finance
& Planning
Sushovan Devkota
Senior Relationship
Manager
Manohar K.C.
Manager-Operation
Deep Regmi
Manager-Central Trade
Operation
Rupendra Wa
Senior Relations
Manager
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Annual Report 2010/1114
Respected Shareholders,On behalf of the Board of Directors and myself,
I welcome you all to the Fifth Annual General
Meeting of Global Bank Ltd. We are pleased to
inform the completion of fifth year of business
operation. Because of the support and trust
of shareholders, customers, stakeholders
and regulators of the bank we are growing
in the market with new banking technology
and products for the past five years. By the
end of fiscal year 2010-11 we have provided
quality banking service to our valued customers
through our 28 branches located inside and
outside valley.
I would like to present, in brief, the banks
overall economic and social situation, deposit
mobilization and lending position of commercial
banks and the progress achieved by the bank.
1. Countrys Economic condition
According to the recent data published by
Nepal Rastra Bank for the fiscal year 2010-11
the details of economic growth are summarized
here under
A) Gross Domestic Product (GDP)
According to the preliminary estimates of
the Central Bureau of Statistics (CBS) based
on the first three to seven months data of
2010/2011, the real GDP at basic price grew
at 3.47 percent compared to 3.97 percent in
the previous year. The real GDP at producers
price was estimated to grow at 3.48 percent
in the review year compared to 4.55 percent
last year. The agriculture and non-agriculture
sectors were estimated to grow by 4.1 percent
and 3.1 percent respectively in 2010/11. These
sectors had grown by 1.3 percent and 5.4
percent respectively last year. In 2010/11,
the production of major crops like paddy and
maize were estimated to grow by 10.8 percent
and 11.4 percent respectively. Such a higher
production was due mainly to the favorable
weather condition and expansion in the area of
maize cultivation. The production of these two
crops had declined by 11.0 percent and 3.9
percent respectively in the previous year. In the
review period, the production of vegetables,
fruits, meat and milk were estimated to grow
by 6.7 percent, 2.8 percent, 10.6 percent and
4.0 percent respectively.
In 2010/11, the ratio of total consumption to
GDP increased marginally to 93.3 percent from
92.6 percent last year. Consequently, the gross
domestic saving remained at only 6.7 percent
of GDP in the review year. Similarly, the ratio of
gross investment to GDP stood at 30.2 percent
in the review year compared to 35.1 percent in
the preceding year.
B) Inflation
The annual average consumer price inflation
remained constant at 9.6 percent in 2010/11compared to an increase of 9.6 percent in
2009/10. Despite a substantial rise of 14.7
percent in the prices of food and beverages
group, the annual average consumer price
inflation moderate on account of a low
increment by 5.4 percent in the prices of
non-food and services group. The index of food
and beverages and non-food and services had
increased by 15.1 percent and 4.9 percent
respectively in 2009/10.
In the review year, yearly average price index of
vegetables, the item under food and beverages
group, increased sharply by 35.0 percent; it
had increased by 20.5 percent in the previous
year. Similarly, the annual average price
indices of spices, sugar and sweets and fruits
went up by 23.2 percent, 19.5 percent and
19.4 percent respectively compared to their
respective increments of 27.4 percent, 45.3
percent and 20.5 percent in the previous year.
9Board o Directors
Report
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Annual Report 2010/11 15
The annual price index of restaurant and hotel
grew by 15.5 percent compared to a 20.3
percent rise in the previous year. Likewise,
the annual price indices of milk products and
egg, cereals grains and their products and
tobacco products increased by 14.6 percent,
13.9 percent and 13.5 percent respectively
compared to their respective increases of 11.9
percent, 10.1 percent and 12.5 percent in the
previous year. In 2010/11, the annual averageprice index of legume varieties declined by 7.6
percent as against a rise of 26.0 percent in
the previous year.
C) Foreign Trade and Balance of Payment
In 2010/11, the growth rate of exports outpaced
the growth of imports for the first time in ten
years. While exports rebounded after a slump in
the previous year, the growth rate of imports
declined markedly, resulting in a significant fall
in the growth of trade deficit. Nevertheless,
trade concentration with India reached its peak,constituting about two thirds of Nepals total
trade. Export trade, which had declined by 10.2
percent in the previous year, recorded a growth
of 6.1 percent to Rs. 64.56 billion in the review
year. Exports had amounted to Rs. 60.82 billion
in the previous year. On a monthly basis, the
merchandise imports declined by 2.9 percent in
June/July of the current fiscal year in comparison
to the value of the previous month.Due to the
improvement in the export and reduction in the
growth of import, total trade deficit went up
only by 5.4 percent to Rs. 330.34 billion in the
review year. Trade deficit had expanded by 44.6
percent in the last year.
The overall BOP which had remained in deficit
until the ten months of 2010/11 ended with a
surplus of Rs. 2.93 billion in contrast to a deficit
of Rs. 3.63 billion in the previous year. The BOP
registered the highest deficit of Rs. 14.79
billion in the nine months of the review year. The
improvement in the BOP was attributed to the
significant moderation in the current account
deficit coupled with satisfactory increase in the
government capital transfers and external loan.
The current account deficit shrank to Rs. 11.91
billion from a deficit of Rs. 28.14 billion a year
ago. The deceleration in the growth of trade
deficit resulting from higher growth in exports
than imports coupled with improvement in the
service account led to significant contractionin the current account deficit. In the review
year, the current account deficit to GDP ratio
improved to 0.9 percent from 2.4 percent a
year ago.
D) Government of Nepal Revenue Mobilization
In 2010/11, revenue mobilization of the GON
increased by 11.6 percent to Rs.200.79
billion, which is 92.7 percent of annual budget
estimate of Rs. 216.64 billion. The revenue had
risen by 25.4 percent to Rs. 179.95 billion in
2009/10. Consequently, the revenue to GDPratio remained at 14.9 percent in 2010/11
as against 15.4 percent in 2009/10. The
impact of the delay in the announcement of the
government budget, revenue mobilization based
on previous years
Finance Act during the first four months and
slow growth rate of the capital expenditure were
responsible for such a low growth rate of revenue
mobilization. Likewise, decline in the growth rate
of import also affected the growth rate of revenue
of the government during the review year.
E) Deposit Mobilization and Credit Flow of
Commercial Banks
The imbalance between deposit mobilization and
lending by commercial banks also continued in
2010/11. The deposit mobilization of commercial
banks increased by Rs. 59.62 billion while the
loan and advances increased by Rs. 79.80 billion
in the review year. The deposit mobilization and
On behalf of the Board of
Directors and myself, I welcome
you all to the Fifth Annual General
Meeting of Global Bank Ltd.
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Annual Report 2010/1116
loan and advances had increased by
Rs. 69.93 billion and Rs. 76.71 billion
respectively in the previous year. Credit
to private sector increased by Rs. 57.94
billion during the review year compared
to Rs. 65.61 billion in the previous
year. Of the total bank credit to private
sector, the credit to production sector
increased by Rs. 20.13 billion during the
review year compared to Rs. 6.84 billion
in the previous year. Similarly, banks
credit to wholesale and retail trade, and
construction sectors also increased.
F) Liquidity Situation of commercial banks
The NRB injected net liquidity of Rs. 71.39
billion through secondary market operation
in 2010/11. Liquidity of Rs. 21.0 billion was
mopped up through outright sale auction
of Rs. 2.0 billion and reverse repo auction
of Rs. 19.0 billion in the review year. On
the other hand, liquidity of Rs. 92.39 billion
was injected through repo auction in the
review year. Liquidity of Rs. 8.44 billion was
mopped up through outright sale auctionand reverse repo auction while Rs. 135.06
billion was injected through outright
purchase auction and repo auction in the
previous year.
The NRB injected net liquidity of Rs.
174.30 billion through the purchase of
USD 2.41 billion from foreign exchange
market (commercial banks) in 2010/11.
A net liquidity of Rs. 118.66 billion
was injected through the purchase of
USD 1.60 billion from foreign exchange
market in the previous year.
The NRB purchased Indian currency
equivalent to Rs. 198.15 billion through
the sale of USD 2.74 billion in the Indian
money market during the review year.
INR equivalent to Rs. 163.35 billion
was purchased through the sale of USD
2.19 billion in the previous year. Such a
higher amount of INR purchase in the
review year has mainly attributed to
the widening trade deficit with India on
account of sharp increase in the import
of petroleum products.
2. Review o the banks Operation during
F.Y 2010/2011
A) Financial PositionBanks current Financial Position as
compared to the previous year is as
follows:
Amount In Lakhs
DescriptionAs on Ashad End Increment
2068 2067 Amount Percentage
Paid Up Capital 15,000 14,734 266 1.81
Capital fund 11.09% 10.90 % 0.19
Total Deposit 150,665 150,316 349 0.23
Total Loan 127,792 121,636 6,155 5.06
CD ratio(as per NRB
directives)78.02% 75.59% 2.43
Liquidity Ratio 27.23% 30.00% (2.77)
Non Performing Loan 2.52% 0.85% 1.67
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Annual Report 2010/11 17
Last year, all the right shares issued
were sold. As a result, the capital
has increased to Rs one billion five
hundred million. Bank has received
Rs.15, 050,422 as share premium
after auction of the unsold right
shares of 148,367 out of which 8518
shares were of promoters and the
remaining 139,849 shares were of
general public.
Yet another year and the bank has
been able to maintain its capital fund
in a sound position while conducting
its various commercial activities.
During this year, there was no
significant increase in the in the
deposit in the banking sector. As a
result, there was no increment in
the deposit of our bank as well.
In addition, no significant growth in
loan disbursement has been observed
due to this very reason. Also, looking
at the liquidity problem bank has
not gone aggressively in the loan
disbursement. Consequently, the
bank has been able to reduce its CD
ratio to 80% as on Ashad end itself
while as per NRB Directives it is to be
reduced to 80% by Poush end 2068.
Last year there was a problem in
recovering few loans resulting in
the increment of NPL. However, the
management is continuously going
ahead with the recovery of those loans.
B) Operating Result:
The banks operating profit before
provision is 46.66 crores whilst net
profit after tax is 22.50 crores.
Banks interest income has increased
approximately by 50 crores and interest
Amount In Lakhs
ParticularsAs on Ashad End Increment
2068 2067 Amount PercentageInterest Income 19,636 14,650 4,986 34
Interest Expenses 12,881 9,620 3,261 34
Net Interest Income 6,755 5,030 1,725 34
Other Income 1,835 1,655 180 11
Total Operating Income 8,590 6,684 1,906 29
Total Operating Expense 3,924 3,096 828 40
Operating Profit before
Provision for Possible Loss4,666 3,588 1,078 30
Provision for Possible
Loss(2,529) (1,951) (579) 30
Provision for Possible
Loss return back1,661 - 1,661 -
Profit from Regular
Activities3,798 1,642 2,156 131
Profit/Loss from
Extraordinary Activities(935) - - -
Net Profit after
Considering all Activities2,863 1,642 1,221 74
Bonus and Tax 613 912 (299) 32
Net Profit/Loss 2,250 730 1,520 208
Banks brief details on operating profit is highlighted here under:
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Annual Report 2010/1118
expense by 33 crores in this fiscal year.
Net Interest Income (NII) of the bank is
67.56 crores showing 34% increment
and operating profit before provision is
46.66 crores which has increased by 30%
from last year. Although there has been
a significant increment in operating profit
before provision, due to additional loan
loss provision of 25.29 crores; net profit
however is 22.50 crores which is 208%
increment as compare with previous year.
While the bank faces major liquidity
crunch and other various financial
sector problems, bank has achieved a
remarkable achievement. We would like
to assure that in the upcoming years,
bank will continuously strive to achieve
the same success.
c) Progress in the first two months of
the current Fiscal year:
In the first two months of the current
Fiscal Year, banks deposit has increased
by Rs.70 crores; hence, the total deposit
has reached Rs.15.77 billion. After the
year end, improvement in the deposit in
financial sector resulted in the increment
of the deposit of our bank. As a result of
this, the loan portfolio has also increased.
This has made a favorable improvement in
the income as well.
The cost of fund is increasing while the
interest rate on loan is not increasing
proportionately due to a strong
competition, resulting in lower NII andnon funded income and the management
is completely aware of this situation.
3. Future Planning:
The bank is targeting small businesses
all over the country. This has brought a
scheme of small business loan where it
provides loan from Rs 50 thousand to Rs
5 lakhs to clients in an easy and convenient
way. Hence, the bank has been able to
attract the customers as expected.
Also, considering the fact of accident,
death and disability of the customer, to
recover the loan amount, the bank has
an insurance policy with an insurance
company which is a very distinct feature
of this product.
As per the directives of NRB, the banks
should at least have 20% of the total
loan portfolio in productive sector
lending. Our bank has, therefore, started
working on it already to meet the two
years deadline.
Furthermore, we have already proceeded
for insurance of deposit as per the NRB
Directives. This will help to gain additional
trust from our customers.
In view of the fact that the remittance
service of our bank has a lot of potential,
Global Bank is taking a special interest
on it. Taking into account the flow of
Nepalese to South Korea, our bank
has already made an agreement with
Kookmin Bank for remittance purpose.
Also bearing in mind the number of
people who work and send money from
our neighboring country India, Global
Bank has already started working with a
national level bank there for remittance
purpose and is hopeful it will get sorted
out shortly and as planned. Overall takinginto account the scope in remittance
sector, Global Bank is trying to get
agreements with other banks in foreign
countries.
Going forward as per the slogan of our
bank The Bank For All the involved
manpower are made more capable by
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Annual Report 2010/11 19
focusing and making priority on the
following areas:
Of the deprived sector, Global Bank is
focusing more on the small farmers.
We are planning on additional lending
through small micro finances in order to
contribute significantly in this sector.
Targeting banks Saving Deposit and
Non Interest Bearing Deposit by
execution of required planning and
Marketing
Continuous endeavor towards quality
consumer, increase in business loan
and share of Import Export Business.
Considering the increment in Credit
and Operational Risk, focus is on
improvement of Internal system and
intense training of personnel
Initiation of mobile banking in selected
places, addition of internet banking
and card related services with a view
to increase customer services.
Hence the bank aims to attain remarkable
achievement in business and income
from the above stated programs.
4. Customer Relation:
There has been a continuous increment
in the number of customers of the bank.
As at Ashad end, the total number of
customers reached 98,496. At present,
the number has increased to 104,261.
There has been a significant increment in
the number of saving accounts as well.
Therefore, the saving deposits have alsoincreased and it looks very promising.
The bank, being customer oriented, has
always moved ahead by keeping in mind
the customer satisfaction. Being able
to deliver as per customers need on
deposit and savings, our bank is being
recognized as the customers bank.
The banks success solely goes to the
various customers of our bank and will
try to improve its services all the more
hence forward.
Getting a lot of cooperation from our
clients, our staffs have even started
providing door to door service. We are
strictly following the guidelines of Know
your customer (KYC) and Anti-Money
Laundering (AML). Bearing all these
things in mind, the bank has appointed a
senior level staff as Head Compliance and
has appointed one compliance officer at
every branch and department.
5. Branch Network:
Ranging from Far-Eastern Dhulabari to
Far Western Dadeldhura, the bank has
28 branches at present. Considering the
need and demand of banking service in all
the various sectors and region, we have a
plan to open 6 new branches in the coming
year and amongst these, I am delighted to
share with all of you that we have got the
approval from NRB to open the branch at
Surkhet, Baitadi and Dillibazar.
Furthermore, apart from doing our
feasibility study to open new branches
at appropriate and prime locations, we
are also doing our study in improving and
providing mobile banking and extension
counter facility accessible in order to
further enhance customer relationship.
Regarding ATMs, we have 35 ATMs runningat the moment. Along with the new branch
openings, we are planning to open new
ATMs at prime and appropriate locations
to make it convenient for the customers.
6. Technology:
Keeping in mind that technology is very
essential and one of the core factors in
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providing quality banking services, our
bank has started focusing in enhancing
technological products. Providing
technology friendly products has been
the main focus of the bank. Till date,
we have been providing various facilities
such as SMS banking, internet banking,
telephone bill payment, e-ticketing, mobile
recharge, and mobile utility bill payments
to our valued customers. Likewise, we
have already started issuing VISA credit
card (National and International) which
we have noticed that the customers
take a special interest on.
We are proud to be the first bank that
provides SMS alert to customers every
time they use their credit card. In addition,
we have become the second bank to have
a DRS (Disaster Recovery Site) outside
Kathmandu Valley in Bhairahawa for
protection of the data.
7. Human Resource:
Compared to last year where our bank
had 376 staffs, we have reached 386
staffs at present.
Global Bank Ltd. is what it is now due
to good coordination and effort of bank
management and employees. Bank
believes that, for the expansion of branch
network and to meet the objectives laid by
the management, human resources play a
vital role. It is because of the staffs hard
work, dedication, team work, commitmentand enthusiasm that contribute towards
the success of the bank.
On the banks part, we do recognize our
employees toil by rewarding them from
time to time to encourage them and make
them feel acknowledged. We believe that
content employees give good output and
quality service to the customers. Hence,
the bank takes initiatives to further
develop the employees caliber by creating
an appropriate and sound environment to
provide necessary trainings at national
and international level where they can
be cultivated in different areas such as
capability, loyalty, teamwork, creativity
etc. Trainings will continuously be held to
uphold the quality of human resources in
our bank. Along with the banks focus on
increasing the Global banking network,
the employees have also increased and
the bank looks forward to employ and
work with high caliber staffs in the future.
8. Contribution to National Economy:
Bank, as a financial mediatory, is playing
a vital role for development of industrial
sector, providing employment and making
contribution to national revenue in the
form of income tax and other taxes. In the
FY 2010/11, the bank has made payment
of Rs.57.3 million as corporate tax.
9. Corporate Social Responsibility:
Not only is the bank profit oriented, it is also
fulfilling its corporate social responsibility.
The bank has started providing scholarship
to martyrs children up to class ten. In
addition, the bank has been providing loan
on deprived sectors in order to reduce
poverty in the country. The bank is in
process of implementing Global Small Loan
and Global Small Farmer Loan that is
further going to help in deprived sector.
Henceforth, the bank will, all the more,
be seen being engaged in such activities.
10. Corporate governance:
The Board of Directors and the
Management is always committed for
good corporate governance. Bank has
always complied with good corporate
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governance guidelines. Also, the Board
of Directors and Employees have
complied with the Code of Conduct
outlined by Nepal Rastra Bank. The Audit
Committee of the bank monitors all the
activities and ensures the bank complies
with directives of Nepal Rastra Bank.
In addition, the committee ensures the
adequacy of procedures and processes
of the bank. On the whole, bank is
always concerned with development
of corporate governance through
transparent operations.
11. Amount Recommended or Dividend
Distribution:
Bank has recommended for approval
of 5.35% Cash Dividend and 6.67%
Bonus Share for the shareholders
from the profit of fiscal year 2010/11,
Share Premium and Retained Earnings.
Accordingly financial statements
have been submitted to Nepal Rastra
Bank for approval to distribute Rs.
80,263,158.00 as cash dividend andRs. 100 Million as bonus share out of
retained earnings and profit of current
fiscal year. NRB has instructed the
bank to distribute the cash dividend only
after 100% provision for outstanding
loan of abscond loanee facing action
under banking fraud. Immediately after
the instruction, the Bank has published
the auction sale notice of the collateral
kept on loan of M/S. Star Holding Pvt.
Ltd. Auction process has not completed
till the date of this Annual Reportpreparation. Similarly the deadline has
not expired yet for the loan redemption
(settlement) notice given to another
loanee, Rajendra Das Shrestha. The
actual scenario will be finalized till the
date of annual general meeting and the
same will be informed about auction sale
of these both loanee. Bank has been
making effort to recover this loan at
earliest possible.
It is obvious that if these loans are
recovered till the date of annual general
meeting by auction sale of collateral,
there will be no obstacle to distribute
the proposed dividend. In case this
process does not complete, only
after 100% loss provision on these
loans proposed cash dividend can be
distributed. In that case, bank will do
accordingly to distribute the dividend.
After the proposed bonus share
issuance, Banks paid up capital will
increasae by 100 million and reach
1.6 billion from which bank will be able
to meet the minimum share capital as
directed by Nepal Rastra Bank. It is
recommended to approve the proposed
cash dividend and bonus share proposed
by Board of Director.
12. Financial Statements and Audit
Balance sheet as of 2068 Ashad end,
Profit & Loss account of 2067-068,
Cash Flow statement, related annexures
and auditors report have been attached
herewith as parts of this report. Other
statements as company act, 2063 have
been presented in annex A.
13. Instruction rom Nepal Rastra Bank And
Response From The Board O Directors In
The Process O Approval For Publishing Fi-
nancial Statements
Approval letter from the Nepal Rastra
Bank regarding the annual accounts
of F/Y 2067/068 has been published
in this report. There are some policy
directions given in the approval letter.
Although the bank is committed to
comply with the directions, bank opines
on the issues as follows:
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It has been separately mentioned in
the point no. 11 above regarding the
proposed dividend distribution.
Regarding the auditors comment,
Direction No. 1: In some cases, bank
hasnt obtained the declaration form in
case loanee is taking loan from other
bank and financial institutions.
Banks opinion: Bank is in practice to
obtain multiple declaration form if the
loanee has taken loan from other banks
and financial institutions. Auditor had
commented in four loans only and the
multiple declaration form has been
obtained for the same.
Direction No. 2:Loan disbursed without
repayment schedule of principle and
interest in some cases of term loan.
Banks Opinion: Bank is in practice
to disburse the term loan after the
preparation of repayment schedule.
Auditor made a comment that repayment
schedule is missing on eight loans.
Hence, repayment schedule has been
prepared and updated accordingly.
Direction No. 3: In some cases, assets
held for the security of loan have not
been insured or under insured, and
insurance premium not paid timely.
Banks opinion: As per the Credit policy
collateral should be insured, which can
be waived according to the situation
by the loan approving authority. Waiver
for insurance is given in such cases
where stock such as iron, cement etc
(that cannot be lost or stolen) is kept
as collateral, and where customer
requests for waiver of insurance where
the value of land is adequate to cover
the loan amount. similarly, bank is always
keen on timely renewal of insurance
policy. There are 14 loans where the
insurance premium has not been paid as
pointed out by the Auditors for which the
premium payment now has been made.
14. Change in the Board o Directors and the
Management
Mr. Chandra Prasad Dhakal chairs the
banks board of directors, and Mr.
Krishna Bahadur Kunwar, Mr. Sandeep
Agrawal, Mr. Dhan Bahadur Sherchan, Mr.
Surendra Nath Pant, Mr. Sumit Kumar
Agrawal, Mr. Ashwini Kumar Acharya, Mr.
Pushpa Man Shrestha are the directors.
Out of them Mr. Ashwini Kumar Acharya
and Mr. Pushpa Man Shrestha are from
public shareholders.
Meanwhile Mr. Mahendra Nath
Karmacharya, who had been appointed as
specialist director and working since 2068
Jestha 23 has resigned from the post
on 2068 Mangsir 15 quoting personal
reason. Board of director expresses
sincere thanks to him for his contribution
even in the short span of time.
Our current CEO Mr. Anil Gyawali has
resigned from bank services sighting
the reason of his appointment as CEO
of Nabil Bank. His resignation has been
accepted with effect from 2068.01.31.
We would like to thank him for his
services as CEO in bank. Board of
Directors has appointed Mr. Ratna Raj
Bajracharya having huge experience in
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Banking sector from 2068.02.01. We
are confident that bank will achieve
remarkable success during his tenure.
15. Merger with other institutions:
It is known that banks special AGM
held on 2068/04/23 has passed the
special proposal which has given power
to board of directors for merger with
other appropriate banks and financial
institutions by analysing various aspects
as per policy and the directives of
Nepal Rastra Bank as well as Nepal
government. We would like to inform that
we are seeking an appropriate institution
for merger and have been discussing with
some institutions for the same.
Shareholders will be informed accordingly
if any agreement is made with any bank/
financial institutions.
16. Conclusion
As mentioned in the previous year,
I would like to mention yet again that
we commit to provide our respected
shareholders suitable return in coming
years by providing quality banking
services to our respected well wishers
and customers.
We sincerely thank the employees
for their remarkable contribution
in achieving the banks objective
and express our gratitude to our
respected shareholders, customers,
Nepal Government, Ministry of Finance,
Nepal Rastra Bank, Press, Civil
Society for their assistance in banks
advancement.
To conclude, Global Bank Limited is firmly
committed to delivering long-term value to
our shareholders while driving profitable
growth and staying focused on the
success of our customers and partners.
We appreciate your continued trust and we
thank you for being a valued shareholder.
Thank You.
From the board of Director
Chandra Prasad Dhakal
Chairman.
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Global Savings Products
Our Savings Products facilitate easy and
regular withdrawal of funds as and when
required and simultaneously earning of
income on the balance that is kept in the
account. Any person having a savings
account is allowed to deposit money and
withdraw to the extent of balance freely
from his/her account.
Global Super Savings
Global Super Savings is an interest
bearing account, designed to provide
higher return on savings of general
public without having to lock fund. The
customer has flexibility to deposit and
withdraw any amount of fund.
Features: Minimum Balance: Rs. 25,000
Free ABBS (Any Branch Banking
Service)
SMS Banking with alert of every
transactions and bill payment features.
Annual fee waived for 1st year.
Free Internet banking
50% discount on issuance fee Visa
Debit Card
50% discount on Locker Facility
Waiver of locker key deposit
requirement
Global Savings Plus
Global Savings Plus has been designed
to provide moderate return to the
customer without having to maintain
high minimum balance.
Features:
Minimum Balance: Rs.10,000
Free ABBS (Any Branch Banking
Service)
SMS Banking with alert of every
transactions and bill payment features.
Annual fee waived for 1st year.
Free Internet banking
Visa Debit Card
Safe deposit locker facility
Global Shubhalabh Bachat
Global Shubhalabh Bachat is another
interest bearing account that provides
moderate return to the customer without
having to maintain high minimum balance.
Features:
Minimum Balance: Rs. 5,000
Free ABBS (Any Branch Banking
Service)
SMS Banking with alert of every
transactions and bill payment features.
Annual fee waived for 1st year.
Free Internet banking
Visa Debit Card
Safe Deposit Locker facility
Global Nari Bachat
Global Nari Bachat has been designed
to encourage saving habits of women.
The low minimum balance focuses on
enabling any women to open the account
whenever they wish.
Features:
Minimum Balance: Rs. 100
Deposit Products10Product and
Services
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ABBS (Any Branch Banking Service)
SMS Banking with alert of every
transactions and bill payment
features. Annual fee waived for 1st
year
Free Internet banking
Visa Debit Card
Safe Deposit Locker facility
Global Future Star Deposit
Global Future Star Deposit enablesparents to save for secured future of
their children by opening the account
in their childrens name and keeping
themselves as patron until the children
reach the age of 16.
Features:
Minimum Balance: Rs. 1000
ABBS (Any Branch Banking Service)
Global Senior Citizen Account
Global Senior Citizen Account caters
the special requirement of the senior
citizens of our country.
Features:
Minimum Balance: Rs. 1000
ABBS (Any Branch Banking Service)
SMS Banking with alert of every
transactions and bill payment features.
Annual fee waived for 1st year.
Free Internet banking
Visa Debit Card
30% discount on locker servicecharge Safe Deposit Locker facility
Privileged service is offered from
the branches in which Global Plus
Lounge is available
Global Student Savings Account
Global Student Savings Account, our
latest deposit product, has been designed
to meet the savings needs of the college
students and thus aims at developing
banking habits among the college students.
Features:
Minimum Balance: Nil
Free ABBS (Any branch banking
service)
SMS Banking with alert of every
transactions and bill payment features.
Annual fee waived for 1st year. Free Internet Banking
50% discount on the issuance fee of
Visa Debit Card
Cheque book will be issued on request
Attractive Discounts at various
recreational centers for the
students
Global Karmachari Bachat
Global Karmachari Bachat has been
designed to enable institutions to
efficiently distribute salary of theiremployees through the banking channel.
Features:
Minimum Balance: Nil
Free ABBS (Any branch banking
service)
SMS Banking with alert of every
transactions and bill payment features.
Annual fee waived for 1st year.
Free Internet Banking
50% discount on Visa Debit Card
30% discount on service fee of SafeDeposit Locker Facility
Global Remitters Super Savings Account
Global Remitters Super Savings
Account enables Nepalese workers at
foreign countries to save their earnings
in the bank and also to easily send their
earnings to their families back home.
Our Savings Products facilitate easy and
regular withdrawal of funds as and when
required and simultaneously earning of income
on the balance that is kept in the account. ...
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Features:
Minimum Balance: Nil
Free ABBS (Any branch banking
service)
Free Internet Banking
0.25% discount on processing fee of
home
Global Normal Savings
This is a general savings product
designed to encourage small savingsamong people.
Features:
Minimum Balance: Rs. 1,000
ABBS (Any Branch Banking Service)
SMS Banking with alert of every
transactions and bill payment
features
Free Internet banking
Visa Debit Card
Safe Deposit Locker facility
Foreign Currency Savings Deposit Account
This product enables people having
income in foreign currency to maintain
deposits in foreign currency.
Features:
Minimum balance requirement: USD
100.00
Minimum balance requirement: EUR
100.00
Minimum balance requirement: GBP
100.00
Global Fixed Deposit Products
The fixed deposit product enables a
customer to earn higher rate of intereston the funds that the customer is
ready to deposit without withdrawing
for certain period of time. The products
offer higher rate of interest than savings
account. Different interest rates are
offered on deposits maintained for
different tenures.
FCY Fixed Deposit and Call Deposit Rates
are Negotiable
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Loan ProductsConsumer/ Personal LoanGlobal Home Loan
Helping you realize your dreams.
Global Auto Loan
Our Auto Loan with its all-inclusive
features is the ultimate solution to your
financing requirements. With its simple
documentation process coupled with
our speed of delivery and flexibility, youcan drive your vehicle today itself- be it
brand new or used.
Global Hire Purchase Loan
GBL Hire Purchase loan enables you
to purchase commercial vehicles
such as heavy and light commercial
vehicles especially truck, bus, microbus
excavator etc.
Global Education Loan
Global Education Loan is providedto suffice financing requirement for
students to pursue sound academic
career. Our education loan aims to
provide financing in such a way that the
requirements of the students are met
without any hassles.
Global Mortgage Loan (Personal Loan)
Global Mortgage Loan/ Global Personal
Loan is provided to suffice your personal
financing/ business requirements such
as for financing your long vacation plans,buying home equipments, electronics or
any other unexpected needs.
Loan against FD
Provides you flexibility of availing loan on
your Deposit.
Global Small Business Loan
Global Small Business Loan also gives
you the comfort of Insurance while
fulfilling your business/financial need.
Purpose:
Banking facilities for those who do
not have access facilities to banking
services
Providing all kind of financing facilities
with hassle-free processing anddocumentation formalities
Working capital for existing / startup
businesses
Term loan for existing and new
business
Supplier Credit / Bid Bond /
Performance Bond / Advance Payment
Guarantees to facilitate existing and
new businesses
Features and Benefts:
Easy Access and prompt decision Competitive interest rates
Other necessary charges (CICL
enquiry charge etc.) on actual basis,
if applicable.
Flexibility in collateral requirement
Rokka land and building / no mortgage
required
No valuation cost
Eligibility:
Small business new or existing Business registration (with VDC or
other local bodies, as applicable)
Business located in branch locality
Borrower should be eligible for
insurance coverage
Should not have loan with any bank or
financial institution
!! Financing your
personal and business
needs !!
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Only member from one family shall be
eligible
Joint application may be considered
Documents Required:
Loan Application Form and Insurance
Form dully filled and signed.
Photocopy of citizenship certificate
of applicant, guarantors(s)
Passport size photographs ofapplicant, guarantor(s)
Name of the family members
Location map of the residence and
business premises
Multiple banking declaration
Photocopy of Firm Registration if
applicable
Medical checkup report of the client
as required by Insurance Company
and other documents as required
Other documents stipulated by the Bank
from time to time
SME Loan
!! Flexible financial solutions for business
operation and expansion. !!
Global Small Business Loan/ Small and
Medium Enterprises Loan
Our SME Loan enables you to meet your
unique business requirement.
Purpose Financing for small business facilities
and commitments
Working capital financing
Swapping of loan from other banks
and financial institutions
Financing for capital expenditure (in
the form of Fixed Term Loan)
Financing for trade related facilities like
LC/TR and non-funded facilities like bank
guarantee etc.
Features and Benefts:
Competitive Interest rates.
Quick Turnover time: Approving
status within 36-48 hours upon
completion of all required documents
Flexible tenor: Maximum up to 10
years on installment basis and 1 yearfor term loan.
Counseling to help better financing
by our Relationship Managers
throughout the process
Prepayment charge: 1% of the prepaid
amount if prepayment is one year from
the date of initial disbursement
Eligibility
Small and medium scale industries
(carpet, garment, pashmina,
handicraft etc); Trading sector(wholesaler & retailers/distributors,
import and exporters), service sector
(cargo/ freight forwarders, travel/
tour/ ticketing agencies, hospital/
polyclinics, educational consultancies
etc.) and any other sector
Firm/ company owned by Nepalese
individual registered in concerning
government authorities / municipality
/ VDC.
Business is in operation at least for
last six months for new venture afterregistration in concerning government
authorities/ municipality/ VDC.
Minimum 2 years of profitable
operation or the new business to be
established by the key person who
has minimum 2 years of experience in
the similar business.
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Swapping of loan is subject to
the satisfactory debt servicing to
concerning banks/financial institution
Primary security: Hypothecation
of stocks, assignment of current
assets, bills and receivables of the
business.
Secondary Security: Acceptable
Fixed Assets Collateral.
Maximum loan amount up to Rs.10
million for both funded and non fundedloan / facility.
Documents Required
Loan application firm duly filled and
signed in standard format of the
Bank
Photocopy of citizenship certificate
of applicant, guarantor.
Name of the family members
Current account in the name of the
borrower
Name of the sister concerns Photocopy of Firm / company
Registration
Photocopy of article of association
and memorandum of association and
board resolution
Net-worth declaration statements.
Stock report, account receivables
and payables
Photocopy of land ownership
certificate
Financial statement of last three
years either audited or management
prepared
Original blue print of the land
Photocopy of construction completion
certificate from Municipality/VDC
(Nirman Sampanna Pramanpatra).
Photocopy of four Boundary
Disclosure (Char Killa) from ward
office of the land/building to be placed
as collateral.
Photocopy of latest land revenue
receipt (Malpot Receipt) and tax
clearance receipt of the building to
be placed as collateral
Photocopy of Tax/PAN/VAT certificate
along with registration certificate
Photocopy of land/housing TransferDeed (Rajinama)
Original letter stating coheir
(Anshiyar) of the owner of the
collateral from local authority (Ward)
Other documents stipulated by the Bank
from time to time
Corporate Loan
!! Financing to help you maximize business
growth !!
Funded Loan
Global Bank offers different Industrial/
Business Loans to suffice financing
requirement of different kinds of
organizations.
Non Funded Loan/Trade Services
We provide you a wide range of trade
services covering import services,
export services and guarantees. We
have an experience team of trade financestaff, who will work with you in a very
personalized manner, to ensure you
international trade finance transactions
proceed faster, easier and risk-free.
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Domestic Remittances:
Global Bank, one of the largest commercial
bank of Nepal in terms of capital investment,
is providing fastest, most reliable and most
secured remittance facilities of domestic
remittances through its wide network of
more than 200 locations. Nepalese staying
in any part of country can send their money
more safely to their relatives at other part of
country in no time.
Inward Remittances:
Nepalese staying in any part of the world can
remit their hard earned money to their family
members in Nepal through Global Bank Limited.
Mode o remittance:
1.Swift Transfer Through the SWIFT transfer
mechanism, you can transfer your fund from
virtually anywhere in the world to us from
any bank in the world. Society for Worldwide
Interbank Financial Telecommunication System
(SWIFT), the most reliable communicationsnetwork system, provides you an opportunity
to route your hard earned to Global Bank. You
just need to provide the form filling up details
to your local bank with the detail mentioning
Swift Code of our correspondent bank, Swift
code of Global Bank and your account number.
Please instruct your bank to
Credit our Nostro account number. .........
With
..........Bank (pls mention name of correspondent
bank),
.......... (Pls mention address of correspondentbank)
SWIFT: ........ (pls mention Swift Code)
of
Global Bank Ltd
Kathmandu, Nepal
SWIFT: GLBBNPKA
for Onward credit to
......... (pls mention your account number with
Global Bank)
......... Branch, Global Bank Limited
Details o Correspondent Banks:
USD Account:
Standard Chartered Bank, New York,
One Madison Avenue, New York 10010-3603
SWIFT CODE: SCBLUS33
Account Number: 3582-021108-001
HABIB American Bank,
99 Madison Avenue, New York, NY 10016
SWIFT CODE: HANYUS33Account Number: 2072-9306
Standard Chartered Bank, Singapore,
6 Battery Road, Singapore
SWIFT CODE: SCBLSGSG
Account Number: 01-02-1728-03
EUR Accounts:
Standard Chartered Bank GMBH,
60486 Frankfurt, Am Main, GERMANY
SWIFT CODE: SCBLDEFX
Account Number: 018-188-406
Habib Bank of UK Plc
Habib Allied International Bank Plc,
63 Mark Lane, London ECR 7 NQ
SWIFT CODE: HABBGB2L
Account Number: 2041-007-000-1882
GBP Account:
Habib Bank of UK Plc
Habib Allied International Bank Plc
63 Mark Lane, London ECR 7 NQ
SWIFT CODE: HABBGB2LAccount Number: 2041-007-000-1825
JPY Account:
Standard Chartered Bank (Tokyo branch)
21st floor, Sanno Park Tower, 2-11-1
Nagatacho, Chiyoda-ku, JAPAN,
SWIFT CODE: SCBLJPJT
Account Number: 2327-368-1110
Remittance
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AUD Account:
National Australia Bank Limited,
Melbourne,
Head Office, Melbourne, Australia
SWIFT CODE: NATAAU33033
Account Number: 1803-1108-25-500
INR Account:
HDFC Bank Ltd,
Ground Floor, Conwood House,
Yashodham,
Gen. A. K. Vaidya Marg, Goregaon (East),
Mumbai-400063, Maharashtra, India.
Swift Code: HDFCINBB
Account Number: 006-00-39-0000-
293
Standard Chartered Bank,
90 MG Road, Fort Mumbai 4001 India.
SWIFT CODE: SCBLINBB
Account Number: 222-05-333-962
Citibank Limited,
Mumbai, India.
SWIFT CODE: CITINBXXXXAccount Number: 583479007
Cash Management Services (CMS):
Global Bank Limited, in association with
Standard Chartered Bank (SCB), India, is
also providing cash management services
especially to corporate customers to
get the payment with less hassles, time
and cost. Under this system, Global
Bank makes the necessary arrangement
to collect the cheques from the Indian
counterparts of Nepalese corporatehouses through the branches of SCB
and credit the account of customers
at Global Bank Limited within very
short span of time. Similarly, we have
cash management arrangement with
HDFC Bank, India through their branch
network.
Global Remit:
Global Bank has established remittance
business relationship with various foreign
banks and foreign exchange companies.
Nepalese staying abroad can visit any
of these banks and exchange companies
and send money through Global Remit,
the safest and reliable money transfer
system of Global Bank Limited, at low
charges and high exchange rates to
more than 800 remittance payment
outlets across Nepal. Customers need
not to have account with Global Bank to
get the payment through Global Bank
Limited.
Global Remit Support
Hotline: 977-1-4002515
Email: [email protected]
IME Remit:
Global Bank also works as one of the
paying partner of IMEREMIT that has its
reach in over 25 countries for bringing
remittance to Nepal which means allInternational payments from IMEREMIT
can be collected from Global Bank
branches and Global Remit through IME
outlets. Global Bank currently has its
local remittance service in partnership
with IME.
Outward Remittances:
Swift:
Through the SWIFT transfer mechanism,
you can transfer your fund to virtuallyanywhere in the world through Global
Bank Limited. Society for Worldwide
Interbank Financial Telecommunication
System (SWIFT), the most reliable
communications network system,
provides you an opportunity to transfer
your funds to any of the foreign banks.
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INFORMATION ON GLOBAL MOBILE BANKING
We have upgraded Global SMS Banking
to Global Mobile Banking. Now Global
Banks customers do not need to send
SMS to 3456 to do the Banking with
us. GBL customer needs to have Global
Mobile Banking application installed in
their Mobile Phones and through that
application all the banking transactions
and enquiry mentioned here below can
be performed via mobile phones. Global
Mobile Banking continues to supportsyntax based SMS banking. Mobile
phone users who do not have access
to Windows based, Android based, or
Java enabled mobile can continue using
syntax based mobile banking.
1. Transactiona. Fund Transfer
b. Credit Card Payment
c. Shopping
d. Landline Bill Payment
e. Postpaid Bill Payment
f. Recharge
i) NTC GSM Prepaid
i) NTC CDMA Prepaid
iii) ESewa Account
2.Requesta. Card Stop
b. Cheque Stop
c. Statement
d. Cheque Book
e. Pin Change
f. Help
3. Credit Card Enquirya. Available Credit Limit
b. Available Cash Limit
c. Total Outstanding Amount
d. Minimum due Amount
e. Total Due
f. Last Payment
g. Interest Charged
4. General Enquirya. Online Account Balance
b. Last Five Transactions
c. Banking Hour
d. Exchange Rate
This application supports both GPRS
and SMS which is the added benefit to
our customers along with relief from the
hassle of traditional SMS Banking where
customers are required to memorize the
SMS syntax.
Global Mobile Banking application which
is required to be installed in mobile
phone can be downloaded from our
website www.globalbanknepal.com .
This setup file can be downloaded from
mobile phones with GPRS facility or
can be downloaded to any PC and then
transferred to mobile phone.
Global Online
Why stand in line when you can beonline? Global Bank offers convenient
banking facilities through the Internet
so its valued customers can save their
time and money. Global online banking
features many of the traditional banking
activities which previously could only be
done through the counter.
Global Corporate Online Banking
Global Corporate Online Banking offers
all the features and advantages of Global
Online Banking and the added benefit isthat Corporate Users can disburse the
salary to their entire staffs on a monthly
basis or as per the requirement of the
individual corporation. This service allows
corporate clients with their staff salary
accounts with the Bank to upload their
staffs salary from their own office.
Global Mobile Banking
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Card Products
Global Card Products:
Global Bank offers various card products
to its customers. All of Global Banks
cards are issued under Visa brand. The
Bank offers two types of cards, debit card
and credit card. Customers who have the
Banks card(s) can use it to purchase
goods and services at various merchant
locations in Nepal and India. In addition, they
can use their cards to withdraw cash fromhundreds of Automatic Teller Machines
(ATM) in Nepal and from thousands of ATM
machines in India. Debit Card customers
can also use ATM machines to recharge
prepaid GSM/CDMA (Nepal Telecom) and
request cheque book and bank account
statement anytime. International Prepaid
Cards and Credit Cards are also issued by
the Bank and these cards are acceptable
wherever Visa is accepted.
Card Products :Visa Debit Cards
Global Travel Card
Visa Domestic Gold Credit Cards
Visa Domestic Classic Credit Cards
Visa International Credit Cards (USD)
Recharge Prepaid GSM/CDMA (Nepal Tele-
com) anytime through Global Bank ATMs
Global Bank is proud to offer prepaid
phone recharge facility to Nepal Telecom
GSM/CDMA prepaid phone subscribers.
The recharge pin can be purchased fromany Global Bank ATM location.
Transaction process:
1. Select Mobile Recharge from Main
Menu of ATM
2. Select Account type - Savings,
Current or Credit
3. Select Mobile Service Provider -
GSM or CDMA
4. Select Voucher Size
5. Recharge PIN will be printed in
Consumer Receipt
6. Use this number to recharge balance
in usual way i.e. dialing 1414 (GSM)
OR 1415 (CDMA) typing USSD
command : *411*PIN NUMBER# andCall (For GSM only)
Request Cheque Book and Statement
anytime through ATMs
Global Bank is proud to announce Cheque
Book Request and Statement Request
through ATM. Now, Global Banks
customers dont need to visit bank to
apply for new cheque book or statement.
You can simply request these from
nearest Global Bank ATM. The next
working day, your check book/statementwill be ready for collection.
Transaction Process:
1. Select Others from Main Menu
2. Select Option - Cheque Book Request
or Statement Request
3. Select Account Type - Saving or
Current
Customer Care
Phone No: 977 - 01 - 4245477
Customer Care Service is available from
08:00 a.m. to 08:00 p.m. everyday
including weekend and public holidays.
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theban
ktakesinitiativesto
furtherdeveloptheemployees
caliberbycreatinganappropriate
andsoundenv
ironmenttoprovide
necessarytrain
ingsatnationaland
internationallevelwheretheycan
becultivatedin
differentareas...
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Butwal
Suresh Sharma
New Road
Hari Prasad Acharya
Birjung (Head-Ofce)
Dhoj Bahadur Saud
Kantipath
Arati Rana
Lamki
Sujan Poudel
Pokhara
Manoj Regmi
Bouddha
Anamika Singh
Narayanghat
Krishnahari Adhikari
Kirtipur
Rabindra Dhakal
Kuleshwor
Anil Aryal
Dadeldhura
Damber Thakurathi
Gyaneshwor
Prabin Shrestha
Biratnagar
Anup Ghimire
Nepalgunj
Anil Bajracharya
Baglung
Narahari Silwal
Lahan
Rohit Kumar
Mahaseth
11Branch
Managers
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Bhairahawa
Kush Sudan Singh
Surkhet
Deepak Khanal
Gaighat
Gyanendra Dutta
Dhulabari
Bishal Gupta
Dhangadi
Surendra Bahadur
Shahi Chhetrapati
Prajjwal Nakarmi
Dhapasi
Swaicha Rana
Kupondol
Merina Shrestha
New Baneshwor
Sagar Bahadur Singh
Dillibazar
Chitra chalise
Phikkal
Sanjog Rajbhandari
Thamel
Aline Bharati
Banasthali
Chamatkar Poudel
Baitadi
Birendra Bhatta
Lagankhal
Tarka Raj Acharya
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1. Information on Shares forfeited by the
Bank during the year:
Thereisnotanyforfeitureofshare
during the Fiscal year 2010-11.
2. Financial positions of the Bank and its
subsidiary in the previous year ended:
Bankdoesnothaveanysubsidiaries.Detail financial position of the
bank has been provided on the
Directors report and audited
financial statements of the year
2010-11.
3. Major transactions carried out by
the Bank and its subsidiary during
the financial year 2010/11, and any
significant changes in the business of
the Bank during the period:
Bankdoesnothaveanysubsidiaries.
The major transactions carried
out by the bank and the change in
transactions is apparent through
the attached Balance Sheet, Profit
& Loss a/c, Cash Flow Statement
,Significant Accounting Policies and
Notes to Accounts.
4. Information provided by key
shareholder to the company during
the previous F.Y.
Promotershareholderofthebank
from Group A Sub Group F, Mr.Sushil Kumar Pant, has informed
the bank to hold only 0.95% share
in his name as a result of division of
family and he is no more the major
Shareholder.
5. Information regarding the ownership
of shares and involvment in the share
transactions by the Directors and
officials of the company.
The Directors and members of
management team are not involved
in the share transaction of the
company. Management team has
not taken any shares apart from the
ones separated for the employees.
Share holding patterns of the Directors are as follows:
S.No Name of Shareholder No. Of shares
1 Mr. Chandra Prasad Dhakal ( Representative IME
Investment P. Ltd)
1,576,206
2 Mr. Krishna Bahadur Kunwar (Representative World
Wide Investment P. Ltd)
1,393,396
3 Mr. Dhan Bahadur Sherchan 93,907
4 Mr. Sumit Kumar Agrawal 886,515
5 Mr. Sandeep Agarwal 506,580
6 Mr. Aswini Kumar Acharya (General Public) 525
7 Mr. Pushpa Man Shrestha (General Public) 435
8 Mr. Surendra Nath Pant ( Representative Continental
Investment P. Ltd)
1,124,010
9 Mr. Mahendra Nath Karmacharya (Specialist) 270
As required by sec 109 of Companies Act 2063, remaining point wise particulars
of details to be included separately in Boards Report12Annexure
A
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6. Information provided to the company by
Any Directors or his close relatives on
their personal interest in the company
related agreements in the previous
fiscal year.
No such transaction has taken place.
7. If company has purchased its own
shares, the reason for purchasing its
own shares, the number of shares
purchased and the face value and also
the payment maid by the company for
such purchase.
The Bank has not purchased any of its
own shares.
8. Distribution of Profit:
The bank has recommended to
distribute 12.02 % dividend (5.35%
cash dividend and 6.67% bonus share)
from current year profit including the
accumulated profit and share premium
from last year to its shareholders.
Appropriation from net profit to other
reserves and funds has been reflected
in Reserve and Funds in the Financial
Statement.
9. Statement of the Total Managementexpenses for the financial year
10. Details on the members of the AuditCommittee; salary, allowance and
facilities provided to the members;
work carried out by the committee and
any suggestions given:
The Bank has Audit Committee
comprising of the following members:
Mr. Dhan Bahadur SherchanCoordinator
Mr. Krishna Bahadur KunwarMember
Mr. Krishna Prasad Lamichane- Member Secretary (Head- Internal
Audit Department)
For every audit meeting held, the audit
committee members (Board Members
only) get Rs. 5000/- allowance. In this
current fiscal year, a total allowance of
Rs.85, 000/-has been paid to the audit
committee members. Audit committee
in regular intervals discusses internal
and annual audit report prepared by
Internal Audit Department and presents
it to the Board of Directors. During the
review year, Audit Committee meeting
was held ten times with different agenda.
As a result, the committee has given
suggestions to the Board of Directors
on various areas such as financial
position, internal control system, legal
compliance and risk minimization.
11. Payments due to the Bank from any
Directors, Managing Director, Chief
Executive or the key shareholders of
the Bank and their close relatives, or
from any firm, company or corporate
body in which they are involved in.No payment is due to the Bank from
any such persons.
12. Remuneration, allowances and facilities
provided to the Directors, Managing
Director, Chief Executive Officer and
other official of the bank.
The under noted amounts were paid
as remunerations, allowances and
facilities to the Directors, managing
director, chief executive officer and
other office bearers:
(a) Chairman and Board members:
Chairman of the Board of Directors
and the board members get
Rs.5, 000/-meeting allowance per
meeting and the sub-committee
members get Rs 5000/- meeting
allowance per meeting. A sum of
Rs 575,000/- has been paid to the
Chairman, and the board members
as allowance for the year 2010/11
and Rs 405,000/- allowance for
Particulars of the total management
expenses for the financial year
2010/2011 are as follows:
Particulars Amount (Rs)
Staff Expense 155,003,585
Operating Expense 237,364,199
Total 392,367,784
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Annual Report 2010/1140
subcommittee members. Rs.175, 655/-
has been incurred as other expenses
for the board meeting. Apart from the
allowance, the Chairman, the Board and
Sub Committee members do not receive
any remuneration, other allowances and
facilities.
(b) Chief Executive Officer, Company
Secretary and other officials:
The detail of salary, allowance and facilities
provided to CEO, Company Secretary and
other officials are as below:
Salary, allowance and facilities provided
to CEO are as follows:
For staffs up to the position of Assistant
Manager, salary, allowance and PF of Rs
24,789,771/- Rs 1,584,818/- as Fuel
expenses, and Rs 479,678/- as mobile
expenses totaling to Rs 26,820,818/-
payment has been made.
Rs 403,647/- has been paid to Company
Secretary as remuneration this year.
Salary, allowance and facilities are
provided only after deducting tax as per
the prevailing laws.
Other allowance and facilities are
provided as per the banks Personal
Policy Guidelines, Financial Administrative
Policy and as decieded by Board from
time to time.
13. Dividend yet to be collected by the
Shareholder:
The dividend yet to be collected by
shareholders is Rs 10,750,589.50.
14. Details of property purchased or sold as
per section 141:
a) The details of assests required by the
bank (Vehicle, office equipment, capital
expenditure, leasehold improvement)
purchased and sold details has been
shown under schedule 4.14 of the
attached financial statement.
b) Assets have been purchased and sold as
per the prevailing market price and the
procedures prescribed in the Financial
Administrative Policy of the bank.
15. Details of transactions between related
companies as per section 175.
No any such transations.
16. Others details to be disclosed in the
Board report as per the Company Act
and other laws in force.
No any such details.
17. Other important matters:
No any such matters.
Particulars Amount (Rs)
Salary 4,760,000.00
Allowance 3,315,000.00
PF 476,000.00
Electricity Expense 20,258.00
Water Expense 6,164.00
Mobile Expense 8,910.00
Total 8,586,332.00
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Annual Report 2010/11 41
We are providing Rs. 100,000.00 every
year till 12th grade to Bhaibhav Khatri
son of late Bijay Babu Khatri who died
on car accident on 10 Mangsir 2068.
Mr Khatri at that time was serving for
Karobar Daily as financial news editor.
Global Bank had provided Rs. 10,000.00 to tewa for marathon event. This fund will go for
empowerment of rural women
Blood donation program held at kantipath branch on occasion of banks 4th anniversary. As a CSR
activity bank has been doing blood donation camp every year
As part o our CSR activity we have conducted various events
mentioned as below;13Corporate Social
Responsibility
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N
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1. We have audited the accompanying Balance Sheet of Global Bank Limited as on Ashadh 32,2068 (July 16, 2011) and the related Profit and Loss Account and Cash Flow Statementfor the year then ended. These financial statements are the responsibility of the banksmanagement. Our responsibility is to express an opinion on these financial statementsbased on our audit.
2. We conducted our audit in accordance with the generally accepted auditing standards inNepal and the directives issued by the Nepal Rastra Bank. Those Standards require that
we plan and perform the audit to obtain reasonable assurance about whether the financialstatements are free of material misstatement. An audit includes examining, on a test basis,evidence supporting the amounts and disclosures in the financial statements. An auditalso includes assessing the accounting principles used and significant estimates made bymanagement, as well as evaluating the overall financial statement presentation. We believethat our audit provides a reasonable basis for our opinion.
3. On exa