Annual Report GBL

7/31/2019 Annual Report GBL

1/982010/11Annual Report

The Bank for All


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


4/98

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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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


7/98

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


8/98


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...


9/98


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


10/98


Our focus andconsideration is todrive the organization

to create measurable

long-term value for itsstakeholders, which

would be sustainable in

long run...


11/98


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


12/98

7Management

Team


13/98

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


14/98

8Department Heads &

Senior Relationship Managers


15/98

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


16/98


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


17/98


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.


18/98


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


19/98


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:


20/98


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


21/98


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


22/98


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


23/98


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:


24/98


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


25/98


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.


26/98


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


Service)





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


Service)





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


27/98


ABBS (Any Branch Banking Service)


transactions and bill payment

features. Annual fee waived for 1st

year


Visa Debit Card


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:



Global Senior Citizen Account

Global Senior Citizen Account caters

the special requirement of the senior

citizens of our country.

Features:







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)



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:



service)




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. ...


28/98


Features:



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



transactions and bill payment

features


Visa Debit Card


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


29/98


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 !!


30/98


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.


31/98


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.


32/98


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


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


Remittance


33/98


AUD Account:

National Australia Bank Limited,

Melbourne,

Head Office, Melbourne, Australia

SWIFT CODE: NATAAU33033


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


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.


34/98


35/98


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


36/98


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.


37/98


theban

ktakesinitiativesto

furtherdeveloptheemployees

caliberbycreatinganappropriate

andsoundenv

ironmenttoprovide

necessarytrain

ingsatnationaland

internationallevelwheretheycan

becultivatedin

differentareas...


38/98


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


39/98


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


40/98


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


41/98


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


42/98


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


43/98


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


44/98

N

ew

In

itiative

P f

f i i f

K h l d i

4


45/98


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