TABLE OF CONTENTS

Financial Highlights 2
Vision & Mission 5
Core Values 6
Shareholding Structure 7
Bank's Overview 8
Chairman's Profile 11
Board of Directors 12
Message from Chairman 13
Director's Report 14
Management Team 23
Message from Acting CEO 24
Annexure "A" 29
Disclosures 32
Corporate Governance 33
Corporate Social Responsibility 37
Bank's Products & Services 39
International Correspondent Banks 56
Auditor's Report 60
Financial Statements 63
Capital Structure & Capital Adequacy Related
162
Disclosure
Principal Indicators 179
Branch Details 183
ATMs Locations 187
FINANCIAL HIGHLIGHTS
NPR IN MILLIONS

Net Interest Income Profit before Tax

6,000 4,000 3,934
5,242 3,500
5,000
3,000 2,969 2,912
4,000 3,664 3,877
2,500
3,000 2,890 2,000 1,962
2,290
1,500 1,401
2,000
1,000
1,000 500
0 0
2014/15 2015/16 2016/17 2017/18 2018/19 2014/15 2015/16 2016/17 2017/18 2018/19

Profit after Tax Total Deposits

3,000 140,000
2,762 124,499
2,500 2,101 120,000
106,510
2,000 100,000 101,910
2,061
1,500 1,382 80,000 74,683
961 60,176
1,00 60,000
500 40,000
500 20,000
0 0
2014/15 2015/16 2016/17 2017/18 2018/19 2014/15 2015/16 2016/17 2017/18 2018/19

Total Loans and Advances Total Shareholder's Equity

120,000 114,520 18,000
16,000 16,332
100,000
93,373 14,000 13,579
80,820 12,376
80,000 12,000
60,841 10,000
60,000 8,945
50,227 8,000 7,323
40,000 6,000
4,000
20,000
2,000
0 0
2014/15 2015/16 2016/17 2017/18 2018/19 2014/15 2015/16 2016/17 2017/18 2018/19

2 GLOBAL IME BANK LTD. | AnnuAl RepoRt 2018-19

FINANCIAL HIGHLIGHTS

Non Performing Loan Credit to Core Capital & Deposit

2.50% 84.00%
83.47%
2.23%
2.00% 82.00% 81.47%
1.89%
1.60% 80.00% 79.30%
1.50%
78.00%
1.00%
0.77% 76.00% 75.35%
0.50% 0.55% 78.69%
74.00%

0.00% 72.00%
2014/15 2015/16 2016/17 2017/18 2018/19 2014/15 2015/16 2016/17 2017/18 2018/19

Return on Shareholder's Equity Return on Total Assets

19.00% 1.90%
18.00% 1.80%
17.00% 1.70%
18.00% 160.% 1.75%
16.00% 16.91% 1.82%
1.50%
15.00% 15.88% 1.58%
15.48% 1.40% 1.63%
14.00%
1.30%
13.00% 13.11% 1.20% 1.39%
12.00% 1.10%
11.00% 1.00%
2014/15 2015/16 2016/17 2017/18 2018/19 2014/15 2015/16 2016/17 2017/18 2018/19

160
Dividend per Share 149
150
30.00% 140 134
130 150
25.00% 23.00%
25.50% 120 114 131
20.00% 16.00% 110
16.00% 99
20.00% 100 112
15.00%
90 90
10.00% 80
85 91
5.00% 70
2014/15 2015/16 2016/17 2017/18 2018/19
0.00%
2014/15 2015/16 2016/17 2017/18 2018/19
Branch Network ATM Network

GLOBAL IME BANK LTD. | AnnuAl RepoRt 2018-19 3

FINANCIAL HIGHLIGHTS
NPR IN MILLIONS

Home Loan,
11,291 10%
Real Estate Loan
3,820 3%
Margin Lending
Others 1,949 2%
21,451 19%

Term Loan
17,013 15%

Working Capital Loan

58,996 51%

Loan Mix

Saving Deposit
Margin Deposit 8,481 7%
1,185 1%
Demand Deposit
41,867 34%

Call Deposit
Term Deposit 11,335 9%
61,631 49%

Deposit Mix

4 GLOBAL IME BANK LTD. | AnnuAl RepoRt 2018-19

VISION & MISSION

VISION
THE BANK SHARES A COMMON VISION OF “THE BANK FOR
ALL” AMONGST ITS PROMOTERS, DIRECTORS, MANAGEMENT
TEAM AND STAFF IN COMMITMENT TO PROVIDING THE
HIGHEST STANDARD OF SERVICES FOR CUSTOMERS FROM
ALL REGIONS AND SOCIETIES.

MISSION
TO 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 STAKEHOLDERS AT ALL TIMES.

GLOBAL IME BANK LTD. | AnnuAl RepoRt 2018-19 5

 We understand that respect and humility are the key We maintain the highest level of loyalty towards
factors to motivate and drive every individual towards all stakeholders, particularly the business partners
the organizational goals. We honor the culture, (customers/clients) and promise to walk alongside the
language, ethnicity, social values and entrepreneurial business partners at difficult times/ situations. We will
spirit of every individual across the boundaries and strive to prove that “Bankers are all weather friends” as
draw strength from equal opportunity and diversity against the traditional concept of “Fair weather friends”
thereby enabling the growth of all the stakeholders. by maintaining the business loyalty at all times.

RESPECT PROFESSIONALISM
AND HUMILITY

TEAMWORK GOOD
GOVERNANCE

INTEGRITY
AND ETHICS CORE LOYALTY

VALUES
Commitment to integrity and business Everything we do, we do with the highest
ethics is our fundamental principle to do the standards of professionalism. Research and
business. 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
We believe that essence of success is team work the customer/clients by delivering the products/
and thus achievement of VMO is possible only services with outstanding quality so that our
when every member of team contributes to relationships with our clients will remain forever.
their ability. Most importantly we consider all
our business partners (clients) as a part of the
team with whom we share our ideas/ skills, We are committed to ensure the transparency
learn from each other and take the business and internal control systems through clear-
relations to the greater heights so as to be cut policy guidelines/manuals, procedures,
mutually beneficial which will ultimately lead to central bank’s rules regulations for our own
a successful relationship. satisfaction and to satisfy the regulators
thereby ensuring the Corporate Good
Governance.

6 GLOBAL IME BANK LTD. | AnnuAl RepoRt 2018-19

SHAREHOLDING STRUCTURE
AUTHORIZED CAPITAL OF GLOBAL IME BANK HAS BEEN INCREASED TO NPR 25,000 MILLION AND PAID
UP CAPITAL IS NPR 11,767.17 MILLION AFTER THE APPROVAL BY ANNUAL GENERAL MEETING. THE
PROMOTERS HOLD 51.33% WHILE 48.67% IS FLOATED TO THE PUBLIC.
CURRENT SHAREHOLDER STRUCTURE OF THE BANK IS AS BELOW:

PROMOTER PUBLIC
SHAREHOLDER SHAREHOLDER
NPR 6,040.49 NPR 5,726.68
MILLION MILLION

TOTAL
NPR 11,767.17
MILLION

GLOBAL IME BANK LTD. | AnnuAl RepoRt 2018-19 7

 BANK OVERVIEW
Global IME Bank Ltd. (GIBL) increased to NPR 11.77 billion. bank in these last thirteen years
emerged after successful merger The Bank’s shares are publicly has elevated it to a premier status
of Global Bank Ltd. (an “A” class traded as an ‘A’ category company in the industry. The bank has been
commercial bank), IME Financial in the Nepal Stock Exchange. handling government transactions
Institution Ltd. (a “C” class finance Till date GIBL has been able to live and is officially among one of the
company) and Lord Buddha its slogan the “The Bank for All” few commercial banks trusted
Finance Ltd. (a “C” class finance thereby giving necessary impetus by the Government in handing
company) in year 2012. Two to the economy through world class revenue transactions of various
more “B” class development banks banking services to its 1.1 Million Government offices. The bank has
(Social Development Bank Ltd. and plus customers and consistent been able to earn the trust and
Gulmi Bikas Bank Ltd.) merged return to its 238 thousand plus confidence of the public, which
with Global IME Bank Ltd in year shareholders. is reflected in the large and ever
2013. Later, in the year 2014, Global expanding customer base with
IME Bank had another merger For the day to day operations, the more than 1.1 Million number of
with Commerz and Trust Bank bank has been using the world accounts in deposit base and above
Nepal Ltd. (an “A” class commercial renowned FINACLE software 24 thousand in credit.
bank). During 2015-16, Global that provides real time access
IME Bank Limited acquired Pacific to customer database across all Through all this the Bank has been
Development Bank Limited (a branches and corporate locations able to truly achieve its vision of
“B” Class Development Bank) of the bank. This state of the being “The Bank for All”. Even with
and Reliable Development Bank art customer database has also all this success, the bank remains
Limited (a “B” Class Development been linked to a Management internally focused towards
Bank). During 2019-20, Global IME Information System that provides manpower development, product
Bank Limited acquired Hathway easy reach to all possible database innovation and process innovation
Finance Limited (a “C” class finance information for balanced and etc., to have a strong and solid
company) and the bank is its final informed decision making. A foundation, which are ongoing
stages of its historical merger with disaster recovery system (DRS) of and continuous improvement
Janata Bank Nepal Limited (an the Bank has also been established initiatives undertaken by the
“A” class commercial bank), the in the Western Region of Nepal management and staff alike. GIBL
completion of which shall establish (200 KM west of Kathmandu). has been conferred with “The
Global IME Bank Limited as the The bank has been able to achieve Bank of the Year Award 2014” for
largest financial institution in the excellent diversification of its Nepal by the Bankers Magazine
country in all major parameters. assets. A well balanced distribution (Publication of the Financial Times,
of exposure in areas of national UK), “Best Internet Bank 2016-
Global Bank Limited (GBL) was interest has been possible through Nepal” by International Finance
established in 2007 as an ‘A’ long term forecasting and timely Magazine, London and “Best
class commercial bank in Nepal strategic planning. The bank has Employer Award 2018” by World
that provided entire commercial diversified interests in hydro HRD Congress, India.
banking services. With paid up power, manufacturing, textiles,
capital of NPR 1.0 billion, the Bank’s services industry, aviation, exports, GIBL was appointed as the first
capital base was the highest among trading and microfinance projects, handling bank unit of CREF
the commercial bank at the time just to mention a few. (Central Renewable Energy Fund)
of its establishment. The paid up under AEPC (Alternative Energy
capital of the bank has since been The exemplary performance of the Promotion Center).

8 GLOBAL IME BANK LTD. | AnnuAl RepoRt 2018-19

 PROMOTERS

GIBL has been promoted by a group of prominent indigenous entrepreneurs

who have written a history of success in their respective fields of business.
The promoters of the bank include renowned, well established and respected
businessmen/industrialists in Nepal from a variety of different sectors
that include finance, remittance, trading, export, automotive services,
manufacturing, media services and hydropower to name a few. The
collective experience of the promoters have been realized to customize the
bank's offerings and services to compete with best in the banking industry
and instill a culture based on our core values of integrity, business ethics,
teamwork, respect, humility, professionalism, loyalty and good governance.

GLOBAL IME BANK LTD. | AnnuAl RepoRt 2018-19 9

MR. CHANDRA PRASAD DHAKAL
Chairman

10 GLOBAL IME BANK LTD. | AnnuAl RepoRt 2018-19

 CHAIRMAN’S PROFILE
Mr. Dhakal, a first generation serial entrepreneur of Nepal, established IME conglomerate
and played a pivotal role in institutionalizing the remittance business in Nepal. Additionally,
he has set an exemplary model of successful merger of banks and financial institutions in
Nepal. Mr. Dhakal’s visionary leadership has contributed to the evolution of IME Group
from its humble beginnings into a conglomerate.

Mr. Dhakal’s leadership in different chambers HIS INVESTMENT PORTFOLIO INCLUDES

have contributed in creating a business friendly
environment in the country to expand domestic
investment and attract foreign direct investment. Banking: Global IME Bank Limited
His public relations are wide reached among Remittances: IME Ltd.
the government and non-government sectors, Travel and Tours: IME Travels and Tours
diplomatic and business community. Pvt. Ltd.
Freight Forwarding: Mount Pumori Air
Mr. Dhakal set up International Money Express (IME) Cargo Pvt. Ltd.
in 2001 in Nepal and Malaysia to facilitate the migrant Trading: C.M. Trading Enterprises Pvt.
workers in Malaysia to send their earnings homes. Ltd.
This arrangement has not only become productive, Automobiles: IME Automotives Pvt. Ltd.
but also paved pathway to institutionalizing the Energy: Himalayan Power Partner Ltd.
formal means of remittances. For his outstanding and Mountain Energy Pvt. Ltd.
contribution in the national economy by bringing in Infrastructure: Kathmandu Fun Park
the largest volume of remittances, he has also been Pvt. Ltd.
conferred with the Commercially Important Person
(CIP) award 2014 by the government of Nepal, Mr. Dhakal has participated in many international
Business Personality of the year 2014 by Kantipur conferences and seminars such as 7th NRNA
Publications and Gorkha Dakshin Bahu IV from the European Regional Meeting & the 5th NRNA
then King of Nepal Gyanendra Bir Bikram Shah and Women’s Conference, Regional Conference on
was awarded by the Ministry of Foreign Affairs, Money Service Business organized by Bank Negara
Government of the Republic of Indonesia for his Malaysia (Central Bank of Malaysia), Courtesy call
outstanding service and support for the successful on Hon'ble Dr Mahathir bin Mohamad, former Prime
accomplishment of the evacuation mission of Minister of Malaysia, at his residence to extend
Indonesian citizen in Nepal in 2015. an invitation for participation in Nepal Business
Conclave 2014, India Infrastructure Summit 2013
Mr. Dhakal has been serving as the Honorary Consul & AGM of Indo-Canadian Business Chamber, 12th
of the Republic of Indonesia in Nepal. He is the Vice Meeting of Nepal-China Non- Governmental Forum,
President of the Federation of Nepalese Chambers of 4th Bhutan Construction Expo & FNCCI Delegation
Commerce and Industry (FNCCI), the apex body of to Bhutan, 31st Association of Nepalese in America,
private sector of the country. He is also the President 6th NRNA European Regional Meeting & 4th NRNA
of Nepal Indonesia Chamber of Commerce and Regional Women's Conference Convention, Global
Industry, Vice-President of Nepal German Chamber Forum on Remittances 2013 organized by the World
of Commerce and Industry. He is an invitee member Bank and IFAD, 8th World Chambers Congress,
of Investment Board of Nepal, chaired by the CACCI Presidential Visit to Myanmar, etc.
country’s Prime Minister.

GLOBAL IME BANK LTD. | AnnuAl RepoRt 2018-19 11

 BOARD OF DIRECTORS

Mr. Shrestha, a veteran banker having wide knowledge of banking

operations, retired from Rastriya Banijya Bank after 30 years of service. SUDARSUN
He holds a Master’s Degree in Economics. Mr. Shrestha possess wealth of KRISHNA SHRESTHA
experiences in Credit, International Banking and other areas of Banking.

Mr. Pokharel is presently Chief Executive Officer at IME Ltd. He holds

Master’s Degree in Business Studies from Tribhuvan University. Mr.
Pokharel has 11 years of banking experience in Everest Bank and SUMAN
Global Bank Limited with a strong forte in banking operations, credit,
POKHAREL
international remittance and correspondence banking.

Mr. Sharma an eminent banker having more than 32 years of experience

in banking operations, business management and human resource
management. He has served as the Chief Executive officer at
Rastriya Banijya Bank and Board of Director of Nabil Bank Ltd,
Nepal Investment Bank , Employees Provident Fund , National Life
Insurance , NLG General Insurance , Credit Information Center , Deposit
Insurance Credit Guarantee Company and others as well. He holds a KRISHNA
Master’s Degree in Business Administration (MBA), Masters of Arts in
Sociology (MA) and Bachelor of Science in Agriculture (BSC).
PRASAD SHARMA

Mr. Poudel’s core professional expertise includes business planning,

banking services, financial analytics and access to finance. Mr. Poudel
served as the Chief Executive Officer and founder of First Microfinance
Development Bank Ltd. He holds Chartered Accountancy degree from NUMANATH
ICAI and also holds MBA degree from Tribhuvan University, Kathmandu. POUDEL

12 GLOBAL IME BANK LTD. | AnnuAl RepoRt 2018-19

MESSAGE FROM CHAIRMAN
WE ARE MOVING INTO A SMART DIGITAL WORLD, WHERE THE FACE OF BANKING IS
TRANSFORMING AND OUR CUSTOMER BASE IS CONTINUOUSLY EVOLVING. WHILE WE
ACCOMODATE THE NEW MILLENNIAL GENERATION WE DO NOT FORGET OUR LEGACY
CUSTOMERS

A
midst the given challenges, Global IME Bank to serve almost 2.0 Million customers from its 838
Limited was able to report a remarkable service outlets that includes a network of more than
numbers in terms of business growth and 300 branches covering all 77 districts of the country
profitability in the FY 2018-19. The deposit of the bank and establish itself as the largest financial institution
grew by 16.89% to reach Rs. 124.50 Billion during in the country with paid up capital of almost 19 Billion
the FY whereas the total risk assets increased by with the balance sheet size of more than Rs. 264 Billion.
22.16% to reach Rs. 114.06 Billion during the period.
Net profit for the period was Rs. 2.76 Billion against To be able to establish ourselves as the largest financial
that of Rs. 2.10 Billion in the FY 2017-18 i.e. a growth institution of the country (post-merger) is just a
of 31.44% in the bottom line. Besides a balanced beginning and this will put bigger responsibilities
and sustainable business growth, customer service on our shoulders and the challenges ahead are
excellence, operational / business efficiency by cost many. Continuing a sustainable growth, successful
control, optimum utilization of resources (financial or integration of human resources, achieving efficiency
otherwise), reinforcing compliance and risk culture at through cost control and optimum utilization of
all levels were the key priorities for the review period available resources, financial or otherwise, are just a
where significant progress has been achieved. few of the challenges that needs to be taken up in the
upcoming financial year.
Successful merger / acquisition of 11 banks / FIs
(including those within the merged / acquired Focus on digitization towards achieving efficiency
institutions), more than 529 service outlets including through cost control, training and development of
153 branches in 61 districts of the country, more staff to ensure the highest degree of motivation and
than 1,700 staff members, total business size of more productivity and further strengthening of existing risk
than Rs 259 Billions and presence in 3 countries management and compliance mechanism to meet the
through representative offices are just a few among requirement of institution like ours will be the focus for
the milestones achieved by the institution in just over the upcoming financial year. Similarly the bank shall
a decade of its inception. The way ahead is tougher, continue its effort towards providing latest, modern
given the challenges posed by the tight market and innovative products backed by the highest quality
scenario, cutthroat competition and the unforgiving of services to its valued customers.
regulatory environment. The banking, today is more
about striking a perfect balance between growth, My sincere gratitude to the Ministry of Finance, Nepal
compliance and risk management and Global IME Rastra Bank, Company Registrar’s Office, Security
Bank is well aware and prepared for this. Exchange Board of Nepal, Nepal Stock Exchange and
all other regulatory bodies for their valuable guidance
Successful acquisition of Hathway Finance Limited and suggestion. I would also like to thank my fellow
recently has made a strategic contribution towards board members, management team and all the staff of
bank’s business and network, whereas the proposed the bank for their valuable contribution in the making
merger with Janata Bank Nepal Limited, which is of Global IME Bank of today.
under its final stages, is expected to be a giant leap of
Global IME Bank Limited towards living its slogan of Thank You.
being “The Bank For All”. The bank, after successful CHANDRA PRASAD DHAKAL
merger with Janata Bank Nepal Limited, will be able Chairman

GLOBAL IME BANK LTD. | AnnuAl RepoRt 2018-19 13

DIRECTOR'S REPORT
Dear Shareholders,

On the occasion of the Thirteenth Annual energy supply, acceleration in construction

General Meeting of Global IME Bank Limited, I, activities, expansion in industrial production,
on behalf of the Board of Directors and myself, and an uptick in tourist arrival have
am pleased to welcome all our shareholders. contributed to the higher economic growth
We have been successfully providing banking posted during the review period. The average
services for the past thirteen years. As in consumer price inflation during the review
the past years, we are happy to inform our year was 4.6 percent. Such inflation was 4.2
shareholders that with the support and percent a year ago.
solidarity of our shareholders, customers and
regulatory authorities the bank has been able The export-import ratio increased marginally
to continue achieving its goals. to 6.8 percent in the review year from 6.5
percent in the corresponding period of the
On behalf of the Board of Directors, I present previous year. Remittance inflows increased
to you the Annual Report for the Fiscal Year by 16.5 percent to 879.27 billion in the review
2018-19, along with the Statement of Financial year as compared to an increase of 8.6 percent
Position (Balance Sheet), Statement of Profit in the previous year.
and Loss, Cash Flow Statements, and various
activities of the bank as at 16th July 2019, for During FY 2018-19, deposits at Banks and
your consideration. Financial Institutions (BFIs) increased 18
percent in the review year as compared to an
This Annual Report has been prepared in increase of 19.2 percent in the previous year.
conformity with the provisions laid down in Similarly, during the review period, Credit
the Bank and Financial Institution Act, 2073, from BFIs increased 19.4 percent as compared
Companies Act 2063, and Nepal Rastra Bank’s to a growth of 22.5 percent in the previous
Directives. year.

1. COUNTRY’S ECONOMIC CONDITION Complying with the strategy for development

of Financial Sector Strategy as mentioned
During the Financial Year 2018-19, the Gross in monetary policy, commercial banks are
Domestic Product (at producers’ price) is required to maintain the interest rate spread
estimated to have grown by 7.1 percent as between loans and deposits at 4.4 percent by
compared to 6.3 percent in the preceding year. the end of Fiscal Year 2019-20 which is expected
Increase in agricultural production, ease in to notably impact the earnings of the Bank.

14 GLOBAL IME BANK LTD. | AnnuAl RepoRt 2018-19

2. REVIEW OF THE BANK’S OPERATIONS DURING FY 2018-19

(A) FINANCIAL POSITION

The financial position of the Bank in comparison to last year is as follows:

(Amount in NPR Millions)

Increment
Particulars 2018-19 2017-18
Amount Percentage
Total Deposit 124,499 106,510 17,989 16.89%
Total Loan 114,060 93,373 20,687 22.16%
Paid up Capital 10,311 8,888 1,422 16.00%
Shareholder's Fund (including proposed
16,332 13,579 2,753 20.28%
cash dividend)
Investment 20,823 20,820 3 0.01%
Reserve and Surplus 6,022 4,690 1,331 28.39%
Debenture and Bond 1,500 400 1,100 275.00%

As per the above table, as compared to the earnings posted at the end of 2018, there has been remarkable
growth in the Bank’s Investment, Deposit Resources and Lending as at 16 July 2019.

(B) OPERATING RESULT

The Bank’s Operating Profit before provisioning stood at NPR 3.90 billion and Net Profit after tax stood
at NRS 2.76 billion. The Bank’s summarized operating results for FY 2018-19 are as below:

(Amount in NPR Millions)

Increment
Particulars 2018-19 2017-18
Amount Percentage
Interest Income 13,530.88 11,481.73 2,049.15 17.85%
Interest Expenses 8,288.54 7,604.85 683.69 8.99%
Net Interest Income 5,242.35 3,876.88 1,365.46 35.22%
Fee Based Income 1,181.10 933.46 247.64 26.53%
Employee and Operation Expenses 2,893.81 2,499.23 394.58 15.79%
Provision/(Reversal) for Possible Losses 198.19 (289.84) 488.02 168.38%
Net Profit after considering all activities 3,933.92 2,911.98 1,021.94 35.09%
Staff Bonus & Income Tax 1,171.96 810.61 361.35 44.58%
Net Profit 2,761.95 2,101.36 660.59 31.44%

During FY 2018-19, as compared to last year, the total interest income has increased by NPR 2.04 Billion.
Though the bank’s deposit has continuously increased and there has been low return on placement of
liquid assets, the net interest income reported a positive growth. Increment in operating expense was

GLOBAL IME BANK LTD. | AnnuAl RepoRt 2018-19 15

 basically due to an increase in the number of branches. Net profit after tax of the bank has increased
by 31.44 percent to NPR 2.76 Billion. Despite the stiff competition in the interest rates in the banking
sector, the bank has been able to achieve satisfactory growth in its overall activities. We extend our
commitment to continue our efforts for similar growth in the years to come.

(C) PROGRESS IN THE FIRST TRIMESTER OF THE CURRENT FISCAL YEAR

During the first trimester of the current fiscal year, deposit resources have increased by NPR 7.87 billion
and reached NPR 132.37 billion. The Bank’s total loan has also increased by NPR 9.60 billion and reached
NPR 123.66 billion. Net profit earnings were more than NPR 75 crore during this period, and the Bank
has also successfully availed a foreign currency loan from the International Finance Corporation.

(Amount in NPR Million)

Particulars 17-Oct-19 16-Jul-19 NPR Increase % increase
Total Deposit 132,376 124,499 7,876.92 7.24%
Total Loan 123,667 114,060 9,606.13 9.96%

3. ACQUISITION OF HATHWAY FINANCE LIMITED

The Bank’s 12th Annual General Meeting had passed a special proposal which bestowed authority to the
Board of Directors to merge with other appropriate banks and financial institutions by analyzing various
aspects as per the policy and the directives of Nepal Rastra Bank as well as the Nepal Government. We
would like to inform our shareholders and stakeholders that in the process of strengthening the Bank
and seeking an appropriate institution for merger, the Bank, with the final approval of Special General
Meeting held on 30th July 2019 and of Nepal Rastra Bank on 22nd August 2019, acquired then Hathway
Finance Limited and started a joint operation from 4th September 2019 onwards. Prior to this merger,
the Bank had merged with IME Financial Institution Limited, Lord Buddha Finance Limited, Social
Development Bank Limited, Gulmi Bikas Bank Limited, Commerz and Trust Bank Nepal Limited, Pacific
Development Bank Limited and Reliable Development Bank Limited. After all these successful mergers,
the volume of business, branch network and other incomes of the Bank have increased as compared to
other commercial banks of a similar level.

The contribution of the recently acquired financial institution - then Hathway Finance Limited - in terms
of capital, business, and branch network is as follows:

(Amount in NPR Million)

Particulars Amount
Paid up Capital 126
Deposit 280
Loans 337
Capital Reserve created on share swap balance on merger 174
Addition in Branch 3

16 GLOBAL IME BANK LTD. | AnnuAl RepoRt 2018-19

4. FUTURE PLANNING To recognize the Bank as the biggest and
strongest Bank in Nepal after this merger, the
As always, the Bank shall continue working bank will prioritize the following strategy/
towards a balanced growth in deposit work plan in the coming financial years:
collection, credit mobilization, and sustainable
business expansion as per its strategic plan. • To strengthen the risk management
We believe that with risk management in the of the Bank, the Bank shall analyze
various sectors and growth in business and and study the risk associated with the
income, we will be able to provide secure and Business expansion, the increase in
high returns on our shareholders' investments. Branch Network and other sources, and
To ensure that these are achieved, the Board manage the risk minimizing the loss or
of Directors shall formulate the necessary effect of the recognized risk.
policy and provide the necessary guidelines
to the Management Team of the Bank and the • To mobilize the provincial offices as
management shall be proactive on this. We per the direction of the Nepal Rastra
would also like to assure that the management Bank in order to monitor the branches
shall continue strengthening the positive in their respective province, corporate
indicators of the Bank. governance, risk management, and
grievance hearing. Incorporating
Carrying the motto of “The Bank for All”, with the Nation’s provincial division and
the Bank’s service network both inside and establishing the Provincial offices,
outside the country, the Bank has successfully the Bank shall provide more support,
become the Bank of all Nepalese. Currently, the authority, and responsibility to the
Bank is providing services to more than 11 lakh Provincial offices for its effective
customers through its Branches, Branchless operation.
Banking Services, ATM, Extensions and other
counters in 60 districts of the country. • To ensure that there is no shortage in
capital for business expansion, the Bank
I would also like to inform you that Global IME has initiated the process for issuing
Bank has entered into an agreement to merge of debenture. In accordance with this
with Janata Bank Nepal Limited on 5th July process, we have issued debenture of
2019 and we have received the Letter of Intent 1.5 billion and this year we plan to issue
from Nepal Rastra Bank on 25th September debenture of approximately 2.5 Billion.
2019. The two Banks have entered into a final We expect that with this will support
merger agreement on 25th October 2019 and business promotion and positively
this proposal is included in the special agenda impact the return on investment for
for approval of the shareholders. Subsequently, shareholders.
we have also attached a separate report of
the Board of Directors along with this report. • With an aim to further strengthen
After merger with Janata Bank Nepal Limited, the compliance of the Bank, the Bank
the bank’s Branch Network will reach all 77 has formed a separate Anti Money-
districts of the country and will be providing Laundering Unit and Whole Compliance
its services to about 20 lakh customers. I am Unit and in the coming years, we shall
pleased to share with you the news that after work on strengthening and increasing
this merger, Global IME Bank will be renowned the effectiveness of this unit.
as Nepal’s biggest and strongest Bank. Banking
in itself is a risky sector, and only by balancing • With the aim to provide Banking Facility
the business expansion, risk management, and to all, and promoting the Government
compliance can there be sustainable growth, of Nepal’s Slogan of "Samriddhi Sanga
secured investments and high returns. Jodau Nata, Harek Nepali Ko Bank Khata"
-;d[l4;Fu hf]8f}+ gftf, x/]s g]kfnLsf] a}+s vftf_,

GLOBAL IME BANK LTD. | AnnuAl RepoRt 2018-19 17

 the Bank has introduced a new saving • Remittance, along with being the
product, "Sabai Nepali Ko Bachat Khata". backbone of the country's economy, is
The Bank has been providing products a core business activity for Global IME
and services such as these to the rural Bank Ltd. By mobilizing its International
areas of the country through its branches Representatives as well as business
and branchless banking outlets. partners both inside and outside the
country, the Bank has supported in
• As per the Bank’s strategy, the Bank shall bringing an influx of remittance inside
prioritize Retail and SME Loan. Along the country. To increase the remittance,
with this, as directed by Nepal Rastra the bank is working towards expanding
Bank, the Banks shall also prioritize loan its business corridors.
disbursement to deprived sectors and
specified production sectors. The risk • The bank has also contributed towards
associated with loans will be minimized uplifting the deprived sector community
by paying special attention towards the through their involvement in economic
loan mix in the coming year. activities for which our Small Business
Loans, Small Agricultural Loans and
• The Bank's representative offices in Deprived Sector Loans have been vital.
Australia, India, and United Kingdom The Bank shall organize and exercise
play a vital role in recognition for more Corporate Social Responsibility in
the Bank in the international market, the coming year.
widening of remittance and inter-
country coordination of the Bank. To • The Bank shall also introduce a
strengthen the international presence mechanism for reduction of costs in
of the Bank, the Bank has initiated the various areas.
process of new representative offices in
Seoul, South Korea, and Tokyo, Japan. • The Bank is continuously focused on
providing quality service and facilities to
• Since the establishment of the Bank, it has its customers and the services provided
been committed to following the rules by its various units shall be continuously
and regulations of the Government of monitored for improvement. To obtain
Nepal and Nepal Rastra Bank. We would this objective, the Bank has already
like to bring to your notice that Global prepared the yearly program for
IME Bank has welcomed the policy of the further development of the employees'
Government of Nepal and Nepal Rastra knowledge and skills. Special training
Bank on Merger/Acquisition policy programs will also be carried out for
and successfully merged or acquired employees arriving from the merger
11 Banks and Financial Institutions. in order to initiate them towards our
After the merger with Janata Bank existing working process and culture.
Nepal Limited, the Banks and Financial
Institution that have been included in the Through the above mentioned programs, the
Bank shall be 18 (including the Financial bank aims to attain remarkable achievements
Institutions that have merged with the in both business and profit.
institutions with which Global IME Bank
has merged). Considering the different 5. CUSTOMER RELATION
backgrounds from which the employees
have come and for effective management There has been a continuous increase in the
and increasing of the competence of the number of customers of the Bank. I am happy
employees, the Bank shall continuously to share with you that, as compared to the total
organize various programs of training number of customers of 0.9 millions in July
and development. 2018, this year our total number of customers

18 GLOBAL IME BANK LTD. | AnnuAl RepoRt 2018-19

 has reached 1.1 millions. This is in due part System, Internet Banking, et cetera more
to the Bank being guided by the principles of sophisticated and secure, and shall also develop
prioritizing customer satisfaction first and more technology based services. The Bank is
foremost. upgrading its Core Banking System, Finacle
7, to a more advanced version, Finacle 10. We
6. BRANCH NETWORK expect the upgrade to help facilitate the facing
of challenges that is expected to appear with
We are pleased to inform that the Bank the ever-increasing number of branches and
operates its 149 branch-network across the number of customers. We believe that the
all 7 provinces. During the Financial Year recently introduced “Document Management
2018-19, the Bank opened 7 new branches, System” and “Business Intelligence” tools
namely: Gaidakot, Attariya, Salyan, Bhotkhola, will strengthen our Report Management and
Bardibas, Sindhuli and Hile. The Bank is will provide support in effective analysis of
currently providing services to its customers available information.
through 9 extension counters, 1 CDS & Clearing
Counter, 20 Revenue Collection counters, 191 The Bank has prioritized the strengthening
Branchless Banking services, 150 ATMs and of the process of monitoring customer
3 Foreign Representative offices. This totals transaction details and the accompanying
to 523 Service Outlets when considering necessary reporting through the AML
Branches, ATMs, Extension Counters, Service software. It has fully implemented the System
Centers, and Foreign Representative Offices. Supported Suspicious Transaction Tracking
As per Nepal Rastra Bank's direction, the work in accordance with the direction of Nepal
Bank has established provincial offices in Rastra Bank and laws relating to Prevention of
all seven provinces and they are working Asset/Money Laundering.
towards coordinating, supervising and making
customer service easily accessible. Considering the recent challenges faced
with regard to the security of information
With the aim of creating international technology, the Bank has adopted vigilance
recognition for the business, the Bank has and awareness towards challenges of a similar
already established its representative offices nature for the future. For this, in accordance
in Australia, United Kingdom and India. In with the direction of Nepal Rastra Bank,
the coming days the bank aims to convert starting from this financial year onwards, the
these representative offices into branches and Bank shall form an Information Technology
commence banking services. Incident Response Team and the Bank shall
also conduct an Information System Audit at
7. TECHNOLOGY periodic intervals.

Swift advancement in information technology 8. HUMAN RESOURCE DEVELOPMENT

has not only brought about infinite possibilities
in the banking sector but has also equally Efficient human resources play a vital role in
brought in additional challenges. Keeping this our efforts to attain our vision and objectives,
in mind, the Bank plans to make optimum including proper manning of our expansive
utilization of the available technology to branch network. We believe in qualitative
provide the Bank’s customer with additional human resource management and the
modern services. With information-security extension of high quality services keeping
related issues that come up from time to time, the customers satisfaction at its center. The
a need to strengthen digital security relating Bank is continuously endeavoring to create
to information technology has been observed. an appropriate environment for not only
capacity development of the employees
The Bank shall make its digital services such as but also ensuring and promoting honesty,
Visa Card, Mobile Banking, QR Code Payment professionalism, competency, healthy working

GLOBAL IME BANK LTD. | AnnuAl RepoRt 2018-19 19

 environment, mutual respect, creativity, services are not yet accessible. The Bank has
team work, et cetera, and its effective also provided support for the collection of
implementation. Currently, the Bank has a revenue with ease to the public-at-large for
total number of 1793 vital human resources the various revenue collection centers in the
catering to the needs of the customers. Department of Transport, Department of
Industry, Department of Survey, Ministry of
During the FY 2018-19, the Bank’s human Foreign Affairs and Traffic Police Offices.
resources were involved in numerous
professional development trainings, of which 11. CORPORATE GOVERNANCE
78 were in-house training, 269 external
trainings, and 32 international trainings. The Bank has a robust corporate governance
For the coming days, the Bank has prepared system and responsible practices in place.
and will be carrying forward various skilled The Board of Directors and the Management
enhancement trainings programs. is always committed for good corporate
governance practices with zero tolerance to
9. CONTRIBUTION TO NATIONAL ECONOMY the contrary. The members of the Board of
Directors as well as employees are subject to
In FY 2018-19, the Bank contributed a sum of the Code of Conduct, including the one issued
NPR 2.02 billion as Corporate Income Tax and by Nepal Rastra Bank which is being complied
Tax Deducted at Source to the Government of with in full.
Nepal. This is excluding the Value Added Tax
paid by the bank on the goods and services On the basis of the Bank’s extended businesses
procured by the Bank. The Bank, as a financial and other operating activities, internal process
mediatory, is playing a vital role in the control and other workforce areas are being
development of industrial sector, providing further strengthened. Additionally, for further
employment and contributing to national extending the employee’s capabilities, the
revenue in the form of income and other taxes. bank’s organizational structure and official
The Bank has been providing vital contribution responsibilities are being amended as per
to the economy by providing employment to the necessity. The Audit Committee of the
almost 2000 employees. Bank monitors all activities and ensures
that the processes and procedures in place
10. CORPORATE SOCIAL RESPONSIBILITY are adequate and operational along with
the compliance of the Nepal Rastra Bank
I take great pleasure in informing that our directives. Good corporate governance
Bank, apart from its business motive, has practice has remained its primary agenda,
always remained conscious and considerate with a commitment to operate in a very
to the society we live in and work with transparent manner. As directed by the Nepal
through various activities of Corporate Rastra Bank, a separate Governance Unit has
Social Responsibility. During the Financial been formed and is continuously monitoring
Year 2018-19, it contributed in the areas of the governance position of the bank. As per
education, health, banking awareness, natural further instruction of the Nepal Rastra Bank,
calamities, environment protection, and the Bank has also established a separate
various others. Similarly, the bank has also Corporate Governance Department.
contributed towards uplifting the community
in the deprived sector through their 12. STOCK DIVIDEND RECOMMENDED
involvement in economic activities for which
our Small Business Loans, Small Agricultural Utilizing the profit of the Financial Year 2018-
Loans, and Deprived Sector Loans have been 19 and the retained earnings of previous
vital. Likewise, the Bank has provided banking years, the Board has recommended the
services through its Branchless Banking approval of the issuance of bonus shares
Service in the remote areas where banking equivalent to NPR 1,330,655,779 (12.75

20 GLOBAL IME BANK LTD. | AnnuAl RepoRt 2018-19

 percent of Paid up Capital) and cash dividend 14. CHANGE IN MANAGEMENT AND
of NPR 1,330,655,779 (12.75 percent of Paid BOARD OF DIRECTORS
up Capital) to our valued shareholders. We
would like to bring to your notice that after The Bank's board committee consists of Mr.
the issuance of such bonus shares the Issued Chandra Prasad Dhakal (Chairman, Promoter
Capital of our Bank will reach 11.76 billion. Shareholder Group), Mr. Sudarsun Krishna
With this development in capital structure, we Shrestha, Mr. Suman Pokharel, Mr. Krishna
believe that we will be able to gain confidence Prasad Sharma (Public Shareholder Group),
from all the concerned parties which will and Mr. Numanath Poudel (Independent
indeed support us in increasing the business. Director). Mr. Pawan Bhimsaria, who was
elected from the Promoter Shareholder
The fraction share shall be kept as it is in the Group, submitted his resignation citing health
name of the respective shareholder until it is concerns which was approved by the board
converted into a whole share. Though the tax committee on 1st October 2019. The vacancy
on dividend to shareholders is exempted in created by his departure shall be filled in
accordance with the Merger and Acquisition accordance with the final agreement of the
By Law, 2073 for a period of two years from the merger terms with Janata Bank Nepal Limited,
date of merger, the Income Tax Act has exempted which was signed on 25th October 2019.
such tax to only those shareholders who held the
shares at the time of merger/acquisition (i.e. on 15. ACKNOWLEDGEMENT
4th September 2019). We propose that the tax on
dividend for the bonus shares be collected from Lastly, I would like to express my sincere
such shareholders after the acquisition date, at gratitude to all of our shareholders. Your
which time the bonus shares will be distributed patronage over the years has been a source
accordingly. We request our shareholders to of immense strength for the Bank, and for
approve the bonus share as proposed by the our customers to perpetually believe in us.
Board of Directors. I would like to appreciate the Government
of Nepal, Ministry of Finance, Nepal Rastra
13. FINANCIAL STATEMENTS AND AUDIT Bank, Company Registrar’s Office, Securities
Exchange Board of Nepal, Nepal Share
The Consolidated Statement of Financial Exchange Limited, other regulatory bodies,
Position as at the year ended 16 July 2019 (31st and the media for guiding us on the road map
Ashad 2076), Consolidated Statement of Profit towards success, towards benefit, and towards
and Loss for FY 2018-19, Consolidated Cash progress. Similarly I would like to thank all
Flow Statement, Related Annexure, as well of the Bank’s employees who have worked
as the Auditor’s Report have been attached tirelessly for the growth and prosperity of the
herewith and placed as an integral part of this Bank. I would like to once again reiterate our
report. The various details as required by the commitment to providing the highest quality
Companies Act, 2063 is presented in “Annexure services and to providing increasing returns
A”. We request our shareholders to approve to our respected shareholders in the years
the Consolidated Financial Statements of the ahead.
bank and its subsidiaries.

We welcome your thoughts and suggestions.

Thank you.

For and on behalf of the Board of Directors,

Chandra Prasad Dhakal

Chairman
Dated: 18th November 2019

GLOBAL IME BANK LTD. | AnnuAl RepoRt 2018-19 21

 22
GLOBAL IME BANK LTD. | AnnuAl RepoRt 2018-19
MANAGEMENT TEAM
From left Mr. Ganesh Awasthi, Mr. Ranjan Thapa, Mr. Bhawani Dhakal, Mr. Buddhi Akela, Mr. Surendra Raj Regmi, Mr. Mahesh Sharma Dhakal,
Mrs. Shanta Shiwakoti, Mr. Sushil Shrestha, Mr. Anil Joshi, Mr. Raja Aryal & Mr. Deep Chandra Regmi
 Management Team

MAHESH SHARMA DHAKAL

Acting Chief Executive Officer

BHAWANI DHAKAL BUDDHI AKELA

SURENDRA RAJ REGMI
Assistant General Manager Assistant General Manager
Deputy General Manager
Chief Compliance Officer Chief Risk Officer

ANIL JOSHI RAJA ARYAL DEEP CHANDRA REGMI

Head- Information Technology Chief Financial Officer Head - Human Resources

SHANTA SHIWAKOTI RANJAN THAPA

GANESH AWASTHI SUSHIL SHRESTHA
Head - Marketing and Head - Treasury and
Chief Operating Officer Head - Internal Audit
Business Promotion International Banking

GLOBAL IME BANK LTD. | AnnuAl RepoRt 2018-19 23

 MESSAGE FROM
ACTING CHIEF
EXECUTIVE OFFICER

MAHESH SHARMA DHAKAL

Acting Chief Executive Officer

24 GLOBAL IME BANK LTD. | AnnuAl RepoRt 2018-19

Global IME Bank has had a remarkable thirteen years This year we opened 7 new branches domestically
of growth in business, service network and brand in Gaidakot, Attariya, Salyan, Bhotkhola, Bardibas,
image. This has been possible under the guidance of Sindhuli, and Hile. Through its 523 banking /
our Board of Directors and tireless contribution of our service outlets, we remain committed to increasing
hardworking staff. Thirteen years is relatively a short the accessibility of banking services to the entire
period in the life of an institution; however Global population of the country.
IME Bank has moved ahead from strength to strength
in this period. Today, the Bank has been able to place In addition to a balanced and sustainable business
itself as one of the leading financial institutions of growth, we have placed special emphasis on customer
the country serving more than 1.1 Million valued service excellence and operational efficiency through
customers from 523 service outlets, within and cost control and optimum utilization of resources.
outside the country, with the balance sheet size of Compliance is another key area whereby we have
NPR. 155 Billion, Profit of NPR. 2.76 Billion and Staff encouraged a risk based systems and culture to
strength of 1,793. The proposed merger with Janata ingrain it into our daily activities. We are committed
Bank Nepal Limited, which is under its final stages, to embedding a robust risk management and best
will place us amongst the largest financial institutions practices in corporate governance and sustainability
of the country along most key parameters. over the coming years.

In the year under review, we harnessed the enormous The banking sector is changing faster than ever, and
potential of our human capital, digital products, digital technologies have already revolutionized the
customer services and cost control strategies to grow way we communicate, shop and bank. We have taken
our business and enhance our efficiency. During the steps to digitize our own processes, workflows, and
year, the Net Interest Income grew by 35.22% as customer access points.
compared to the growth of 5.80% in the previous
year. Similarly, Fee Based Income grew by 26.53% as This has been a year of transition where we have
compared to 11.59%. Total Deposit for the year-end embarked on new journeys, the biggest of which is
stood at Rs. 124.5 billion, an increase of 16.89% over an upcoming merger with Janata Bank Nepal Limited.
last year, and Total Loan stood at Rs. 114.1 billion, an Post-merger, Global IME Bank will be placed amongst
increase of 22.16% over last year. We are continuing the largest and strongest financial institutions of
our focus on ensuring the most favorable deposit-mix the country. These virtues of collaboration and
and robust credit growth. partnership are essential to forge success, and
therefore we continually strive to strengthen our
It gives me great pride to report that we have surpassed relationships with our key strategic partners.
yet another milestone by achieving a Net Profit of
above Rs. 2.76 billion this year, which translates to an Our achievements this year are the fruits of labor
increase of 31.44% over that of last year. Employee from various stakeholders whose professionalism
and Operation Expenses increased by 15.79%, a and dedication to the Bank has accelerated its growth.
reduction from the 30% increase of the previous At its core, Global IME Bank employees, whose
year. As we grow both nationally and internationally ingenuity, experience, commitment and customer
with ever expanding branches and other service focus are second to none, and they continue to forge
outlets, operating expenses are naturally expected to lasting relationships to drive our business forward. I
rise; however, through diligence and cost-conscious would like to thank our Management Team for their
measures Global IME Bank has been able to ensure efficient and effective leadership, and I would like to
the value for each rupee spent in terms of efficiency express my gratitude to the Chairman and the Board
in all areas. of Directors for their guidance, support, and strategic
vision, which informs and strengthens our own belief
In line with our motto “The Bank for All”, we have in achieving new heights. Only through our continued
taken strides to reach all Nepalese across the nation perseverance, dedication, and teamwork can we
and even abroad, with an expansive service network overcome the challenges facing us today. Finally, I
that spans 149 branches across all 7 provinces, 191 would like to thank Nepal Rastra Bank and other
branchless banking services, 150 ATMS, 9 extension regulatory authorities for their oversight, as well as
counters, 20 revenue collection counters, 1 CDS & our cherished customers who provide us the impetus
clearing counter, and 3 foreign representative offices. for continual betterment.

GLOBAL IME BANK LTD. | AnnuAl RepoRt 2018-19 25

 Chairman and the Board of Directors

26
Board Risk Management Board Human Resources and
Committee Remuneration Committee Board Audit Committee Board Assets (Money)
Laundering Prevention
Committee
Board/Company
Integrated Risk Department Secretary

Management Level Risk

Management Committee Internal Audit

Credit Risk Operations Risk Market Risk

Management Unit Management Unit Management Unit

Operation Reconciliation Information

Risk Security Risk

GLOBAL IME BANK LTD. | AnnuAl RepoRt 2018-19

People Process System External
Event

Treasury Market Liquidity Interest Rate

Middle Office Risk Risk Risk
 ,

GLOBAL IME BANK LTD. | AnnuAl RepoRt 2018-19 27

28 GLOBAL IME BANK LTD. | AnnuAl RepoRt 2018-19
 Annexure "A"
AS REQUIRED BY SEC 109 OF COMPANIES ACT 2063, REMAINING POINT WISE
PARTICULARS TO BE INCLUDED SEPARATELY IN BOARD’S REPORT

1. Information on shares forfeited by the from the directors if involved in the share
Bank during the year: transactions.

There is no forfeiture of share during the The Directors and members of management
Fiscal year 2018-19. team are not involved in the share transaction
of the company. Management team has not
2. Financial positions of the Bank and its taken any shares apart from the ones separated
subsidiary in the previous year ended: for the employees. Shareholding patterns of
the Directors are as follows:
The detailed financial position of the bank
and its subsidiaries have been provided in the S. No. of
Name of Shareholder Representative
Director’s Report and Audited Consolidated No. Shares
Financial Statement for the year 2018-19. The Mr. Chandra Prasad Promoter, IME
1 6,156,474
Dhakal Investment P. Ltd
Bank’s Performance has also been highlighted
Mr. Sudarsun Krishna Public
in the Board Report for FY 2018-19. 2
Shrestha Shareholder
366
Public
3. Major transactions carried out by the Bank 3 Mr. Suman Pokharel 10,568
Shareholder
and its subsidiary during the financial year Mr. Krishna Prasad Public
4 973
2018-19, and any significant changes in the Sharma Shareholder
business of the Bank during the period: 5 Mr. Numanath Poudel
Independent
1,999
Director

The major transactions carried out by the

6. Information provided to the company by
bank and its subsidiary and the change in
any directors or his close relatives on their
transactions is provided in the attached
personal interest in the company related
Consolidated Statement of Financial
agreements in the previous fiscal year.
Position, Consolidated Statement of Profit
or Loss, Consolidated Statement of Other
No such information have been provided to
Comprehensive Income, Consolidated Cash
the company.
Flow Statement, Statement of Changes in
Equity, Significant Accounting Policies and
7. If company has purchased its own shares,
Notes to Accounts.
the reason for purchasing its own shares,
the number of shares purchased and
4. Information provided by key shareholder
the amount and also the payment by the
to the company during the previous fiscal
company for such kind of purchase details.
year.
No such transaction took place.
No such transaction noted.
8. Distribution of Profit:
5. Information regarding the purchase and
ownership of shares by the Directors and
The bank has recommended distributing bonus
high officials of the company, and further
shares of Rs. 1,330,655,779.58 (i.e. 12.75%)
information received by the company
and cash dividend of Rs. 1,330,655,779.58

GLOBAL IME BANK LTD. | AnnuAl RepoRt 2018-19 29

 (i.e. 12.75%) from its net profit of current 11. Payments due to the Bank from any
year and retained earnings. Net profit has Directors, Managing Director, Chief
been transferred to various statutory reserves Executive or the key shareholders of the
and funds as directed by Nepal Rastra Bank Bank and their close relatives, or from any
and such distribution has been shown in the firm, company or corporate body in which
financial statements accordingly. they are involved in.

9. Statement of the Total Management No payment is due to the Bank from any
expenses for the financial year Directors, Managing Director, Chief Executive
or the basic shareholders of the Bank or any of
Particulars of the total management expenses their close relatives, or from any firm, company
for the financial year 2018-19 are as follows or corporate body in which they are involved in.

Particulars Amount 12. Remuneration, allowances and facilities

Staff Expenses * 1,579,661,879 provided to the Directors, Managing
Director, Chief Executive Officer and other
Other Operating Expenses 1,314,147,264
official of the bank.
Total 2,893,809,143
The amounts paid as remunerations,
* Staff Expenses include provision for annual allowances and facilities to the Directors, Chief
bonus amounting to Rs 393,391,826.00 Executive Officer and other office bearers are
as provided below:
10. Details on the members of the Audit
Committee; salary, bonus and facilities a. Chairman and Board members:
provided to the members; work carried
out by the committee and any suggestions Chairman of the Board of Directors and
given: the Board members get Rs. 11,000 and Rs.
10,000 respectively as meeting allowance per
The Bank has Audit Committee comprising of meeting and the sub-committee members get
the following members: Rs. 10,000 as meeting allowance per meeting.
Mr. Krishna Prasad Sharma - Coordinator Sum of Rs. 10,000 per month is provided to
Mr. Suman Pokharel – Member directors for communication and travelling
Mr. Sushil Shrestha - Member Secretary (Chief – facilities.
Internal Audit Department)
During the fiscal year a sum of Rs 1,022,000
For every audit meeting held, the audit has been paid to the Chairman and the board
committee members get Rs. 10,000/- allowance. members as allowance and Rs 710,000 for sub-
In this current fiscal year, a total allowance of committee members (including audit committee
Rs. 460,000/-has been presented to the audit members). Rs. 1,168,242.05 has been incurred
committee members. Audit committee in regular as other expenses during the board meeting
intervals discusses internal and annual audit and Rs. 1,925,954.49 has been incurred for
report prepared by Internal Audit Department participation of board members in different
and presents it to the Board of Directors. During meeting / conference on behalf of the Bank.
the review year, Audit Committee meeting
was held 23 times with different agenda. As a b. Chief Executive Officer, Company Secretary
result, the committee has given suggestions to and other officials:
the Board of Directors on various areas such as
financial position, internal control operation, i. The detail of salary and allowance paid
legal compliance and risk minimization. to CEO and Acting CEO are as below:

30 GLOBAL IME BANK LTD. | AnnuAl RepoRt 2018-19

 Particulars Amount employee bye- laws and any decision
made by the board of directors.
Salary 7,844,812.54
Allowance 4,266,206.76 d. During the fiscal year total employee expenses
Provident Fund 784,481.26 including the annual staff bonus provision is
Rs. 1,579,661,879.
Leave Encashment 1,721,717.27
Dashain Allowance 1,100,000.00 13. Dividend yet to be collected by the
Others 16,811,486.30 Shareholders:
Total 32,528,704.13
The dividend yet to be collected by
shareholders is Rs. 30,431,964.78.
ii. The performance based salary provided
to the CEO/Act. CEO are as follows:
14. Details of property purchased or sold u/s
a) Employee Bonus Rs. 4,390,330.76
141 by the Bank during the year:
b) Facility as per existing condition None
c) Others None
a) The details of assets required by the bank
iii. Other Facilities
such as vehicle, office equipment, capital
a) Telephone & Mobile Expense
expenditure, leasehold improvement
Rs. 56,491.14
purchased and sold has been shown under
b) Water & Electricity Rs. 17,857.12
schedule 4.13 of the attached financial
c) Repair and maintenance of vehicle
statement.
Rs. 40,272.30
d) Fuel Rs. 384,345.01
b) The bank has purchased or sold the assets
e) Security Guard Rs. 459,180.55
as per the prevailing market price and the
procedures prescribed in the financial policy
c. Other facilities
of the bank.
• For staffs up to the position of
15. Details of transactions between related
assistant manager, salary, allowance
companies u/s 175.
and provident fund totaling to Rs.
207,328,659.56 and in addition to this,
The details of transaction between the related
fuel and mobile facility is provided as
companies have been provided in Note 5.7 of
per the bank’s rule.
the financial statement published with this
annual report.
• Company Secretary has received
consultancy fee of Rs 1,290,000.00 and
16. Details to be disclosed as per the Company
legal advisory fee of Rs. 1,290,000.00
Act and other related acts regarding board
during the year.
meeting :
• Remuneration and facilities so provided
N/A
has been paid only after deducting
income tax and TDS as per Income Tax
17. Any other issues:
Act.
N/A
• Other facilities and allowances have
been provided as per the company’s

GLOBAL IME BANK LTD. | AnnuAl RepoRt 2018-19 31

DISCLOSURE RELATED TO SUB RULE (2) OF RULE 26 OF SECURITIES REGISTRATION AND ISSUANCE REGULATION, 2073
1. Report of Board of Directors: management.
Included in the Annual Report • Increasing Operation Cost.
• Increasing staff and related cost.
2. Report of the Auditors:
Included in the Annual Report External
• Volatile Liquidity in the Market.
3. Audited Financial Details: • Competitive banking market.
Included in the Annual Report • Increasing NPL in baking sector

4. Details relating to Legal Action b. Strategy followed by the management in

a. Law Suits filed by/against the Bank: solving such problems and challenges:
No such except business cases.
• Branch expansion and remittance promotion
b. Law Suits filed by/against the promoters/ initiated with a view to target low cost deposits
directors involving charge of regulatory and business growth through large network.
violations or criminal offences: • Targeting good quality loan customers.
No information received by the Bank. • Effective management of Bank’s assets and
liabilities.
c. Case filed against any promoters/directors • Regular In-House and outsourced training to
for financial fraud: enhance work efficiency of the staffs.
No information received by the Bank. • Good industrial relations.
• Regular monitoring and analysis of operating
5. Analysis of share transaction and progress of expenses.
organized institution: • Strict monitoring of expenses and diversification
of risk asset portfolio for higher yield.
a. Management view on share transactions of
the bank on Nepal Stock Exchange: 7. Corporate Governance
Since the share prices are determined by open • The Bank has been fully complying with the
market operations at Nepal Stock Exchange under directions, guidelines issued by NRB regarding
the supervision of Securities Board of Nepal, corporate Governance.
management has no comment on the same. • Regular Central Management Committee
meetings to review progress in various areas of
b. Maximum, minimum and closing share price of operations.
organized institution including total transacted • Bank’s Internal Audit Department has been
number of shares and transacted days during strengthened.
the Year 2075-76 (as per the table): • Board of Directors and its Committees’ meeting
Maximum Share Minimum Share Closing Share Total Transacted Total Number of
Quarter (Months) Price Price Price Number of Shares Trading days
I Quarter (Shrawan- Ashwin) 332 284 318 1,834,088 62
II Quarter (Kartik- Poush) 336 266 270 1,640,052 60
III Quarter (Magh- Chaitra) 284 255 271 740,337 60
IV Quarter (Baisakh- Ashad) 329 271 295 2,058,000 56

6. Problems and Challenges are held on regular basis.

• ALCO and Risk Management Committee
a. Problems and Challenges Faced: (Operation, Credit and Market) meetings are
Internal held regularly.
• Low interest spread due to high competition. • Board of Directors and Management are
• Increase in the business and branches leading committed to maintain corporate governance.
to increasing challenges in the operational risk

32 GLOBAL IME BANK LTD. | AnnuAl RepoRt 2018-19

 CORPORATE GOVERNANCE
GLOBAL IME BANK LIMITED IS COMMITTED TO THE HIGHEST STANDARDS OF ETHICS
AND INTEGRITY AND HAS EMBRACED THE GLOBALLY ACCEPTED STANDARDS THAT
PROMOTE TRANSPARENCY, ACCOUNTABILITY AND FAIRNESS TO THE STAKEHOLDERS.
WE STRIVE TO DEVELOP A CULTURE OF OPENNESS AND TRANSPARENCY TO EMBED OUR
GOVERNANCE AND CONTROL PROCEDURES THROUGH THE BUSINESS.

Strong governance practices underpin the delivery and in accordance with best corporate
of our strategic aspirations and play a fundamental governance practices. It ensures that in
role in creating long term value for our customers, carrying out its duties, Management complies
employees, shareholder and the country’s economy. with relevant laws and regulation and risk
The Board of Directors are therefore fully committed management while balancing the interests of
to ensuring that the principles of good governance the various stakeholders.
are embedded into the thinking and processes in all
spheres of the Bank and its operations. Through the The Board of Directors is chaired by an
Board, the Bank has put in place systems to ensure independent non executive Chairman and
that the highest standards of corporate governance is composed of five non-executive members
are maintained at all levels and ensure compliance who have a wide range of skills, experience
with the Nepal Rastra Bank’s Regulations on and independent judgment. Their skills,
Corporate Governance, Banks and Financial competencies and academic qualifications
Institutions Act, Companies Act, Securities Exchange can be found on this Annual Report. The
Board of Nepal, directives and circulars of Nepal Chairman, who has overall responsibility for
Rastra Bank, Accounting guidelines from Accounting the Board, ensures overall leadership and long
Standard Board of Nepal and other national and term success of the Bank.
international bodies devising policies on Corporate
Governance. The Board has delegated the authority for
day-to-day management of the Bank to the
THE BOARD OF DIRECTORS Chief Executive Officer of the Bank. The Chief
Executive Officer has overall responsibility
The Board of Directors of the bank is the for the performance of the business and
apex body to approve plans, policies and set provides leadership to facilitate successful
decisions and has ultimate responsibility planning and execution of the objectives
for governance. All the member of Board of and strategies agreed by the Board. For the
Directors fully complies with code of conduct successful management of the Board and
as per Directive 6 of Central Bank Unified their functions, the Board is guided by a
Directive and prudent practices. Board Charter which sets out their powers,
roles and responsibilities. The Board meets
The Board of Directors is responsible for on a quarterly basis or more frequently as the
the overall leadership of the Bank through business demands. The Board functions either
oversight and guidance on key strategic and as a full Board or through various committees
risk issues. It plays a pivotal role in setting up constituted to oversee specific operational
the system of corporate governance within areas .In addition to the quarterly meetings,
the Bank to ensure safe guard of policies the Board has appointed four subcommittees
and procedures, ensuring that Management to assist in achieving its mandate as per the
conducts its business operations with integrity Central Bank requirements.

GLOBAL IME BANK LTD. | AnnuAl RepoRt 2018-19 33

COMMUNICATION WITH THE BOARD General Meeting. Meeting has been a very good
platform for the board to interact with the
Bank has a culture of open and relevant shareholders in communicating strategies and
communication between the Board of Directors objectives, clarifying various concern among
and the Bank’s Management Team. The Board the shareholders and sharing collective vision.
receives reports and presentations from
coordinators of various Board Level Committees BOARD COMMITTEES
and the CEO. Such reports include key issues
related to credit exposures, risk portfolio, To ensure efficiency within the governance
liquidity, financial performance, business structure and to assist carry out its
expansion, audit and compliance. The Board independent oversight function, the Board has
regularly reviews management performance delegated certain responsibilities to Board’s
against approved budget targets and set goals. Committees. Pursuant to Para 7 of Directive
No. 6 of Central Bank’s Unified Directive, Bank
All Board Level Committees have a member has formed four Board Level Committees,
secretary from senior management team who each with terms of reference to support the
is engaged in the concerned area of business Board in performing its functions. The Board
within the Bank. For effective discussions of is kept up to date on the deliberations and
the items in agenda, other members from the recommendations of the Committees through
bank’s management, whose responsibilities reports from each of the Committee Chair at
relate to the matter in agenda, are also invited Board meetings. All Directors have access
as required in the Board Level Committee to the services of the member secretary
meetings. They may seek independent from senior level management in relation to
professional advice wherever required. discharging their duties as a director, or as a
member if any.
Directors also make offsite visits to branches to
obtain a better understanding of local business Board Committee.
conditions, participate in business promotion
and corporate social responsibility related Following board committees were in function
activities and interact with customers and during the year:
employees. There is the practice in the bank
that Board Members are also invited in the 1. Audit Committee
branch level performance meet of the bank. 2. Risk Management Committee
3. Employee Service & Benefit Committee
CHANGES IN THE BOARD 4. Assets (Money) Laundering Prevention
Committee
During the year Director elected from
promoter’s group, Mr. Pawan Kumar Bhimsaria AUDIT COMMITTEE
has tendered resignation citing his health
issues. The resignation has been accepted The Committee has been functioning and
by the Board of Directors with effect from 1st discharging its duties and responsibility in
October 2019. The vacant position will be duly line with the provisions laid down in Para 7 of
filled through the appointment of two more Directive 6 of Central Bank’s Unified Directive
director from Janata Bank Nepal Limted as and Sections 164 and 165 of the Company Act
per the memorandum of understanding for 2063. This is the principal Board Committee
merger between the two entities. charged with overseeing the Bank’s financial
reporting policies and disclosures to ensure
RELATIONS WITH THE SHAREHOLDERS that they are produced in accordance with
International Nepalese Financial Reporting
The Board of the bank always encourage active Standards and meet all the necessary
participation of shareholders in every Annual regulatory requirements. The Audit Committee

34 GLOBAL IME BANK LTD. | AnnuAl RepoRt 2018-19

 is responsible for ensuring that the Bank’s enterprise risk management policies and
internal controls and procedures are adequate procedures are updated to ensure that
and adhered to, making recommendations the risks are properly tackled, effectively
where necessary. controlled and managed. Risk Management
Committee is constituted in line with the spirit
Committee comprises of two independent of Risk Management Guidelines and Unified
non-executive board members who meet Directives of Central Bank. The guidelines
frequently as business demands. Chief highlights on risk governance and identifies
Internal Audit acts as member secretary of the the need of a strong risk management
committee with Director Mr. Krishna Prasad framework, well defined risk management
Sharma as the Coordinator and Director Mr. processes and effective risk assessment
Suman Pokharel the member of the Audit and measurement mechanism. Director Mr.
Committee. Numanath Poudel is the Coordinator and
Directors Mr. Krishna Prasad Sharma along
The committee meeting was held 23 times to with Chief Operating Officer are members of
discuss Internal Auditor’s reports of branches committee. Bank’s Chief Risk Officer (CRO)
and corporate departments, Central Bank’s is the Member–Secretary of the committee.
Inspection Report and Statutory Auditors During the review period a total of 9 meetings
Reports and provided necessary instructions were held to discuss on various issues.
to the Management and submitted its minutes
to the Board for its perusal. TERMS OF REFERENCE

TERMS OF REFERENCE The committee reviews the risk associated

with business activities, risk appetite,
Audit Committee is responsible for setting strategies adopted by the management for
appropriate measures to safeguard Bank’s managing the risk, policy level matters and
assets and in this regard determining the recommends to the Board. Risk Management
effectiveness and efficiency of internal control Committee oversees that risk management
systems; reviewing and recommending framework remains compliant with the
for Board’s approval on the periodical regulatory requirements and appropriate
financial statements, statement on internal risk management policies and procedures
control, related party transactions and are in place; approval and monitoring of
recommendation for appointment of external limits in respect of credit, market, operational
auditors. It is also required to receive, review and other risks; carrying out risk related
and present to the Board management letters surveillance function on behalf of the Board
issued by the external auditors; consider and ensuring that the Risk Management
internal audit reports and submit findings to Committee is kept abreast of changing risk
the Board that require its attention; ensuring management techniques through effective
effective coordination between internal and trainings programs.
external auditors. It also reviews the scope
of internal audit function. Determination EMPLOYEE SERVICE & BENEFIT COMMITTEE
and monitoring compliance to statutory /
regulatory requirements and best practices of Employee Service & Benefit Committee of the
corporate governance and taking up any other Bank is formed in line with provisions of NRB
matter on the directions of the Board are also Directives of Central Bank. The Committee has
within the scope of the Audit Committee. been functioning and discharging its duties
and responsibilities in line with the provisions
RISK MANAGEMENT COMMITTEE laid down in Annexure 6.1 of Directive 6 of
Central Bank’s Unified Directive. Director Mr.
The mandate of the Risk Management Mr. Suman Pokharel is the co-ordinator of
Committee is to ensure that the Bank’s the Employee Service & Benefit Committee.

GLOBAL IME BANK LTD. | AnnuAl RepoRt 2018-19 35

 Human Resources Head is the Member- rewards/punishment and labor policies.
Secretary of the Committee. During the review
period a total of 3 meetings were held to • To review Employee policy and employee
discuss on various issues. working structure and prepare succession
planning and recommend the same for
TERMS OF REFERENCE approval to Board of Directors.

• To assist Board of Directors to prepare ASSETS (MONEy) LAuNDErINg

“Remuneration Fixation Policy” of the Bank. PREVENTION COMMITTEE

• To study and analyze the remuneration Assets (Money) Laundering Prevention

structure of every employees at regular Committee of the Bank is formed in line with
interval, study the effect of the same in the provisions of NRB Directives. Director Mr.
Bank due to change of remuneration structure Suman Pokharel is the coordinator of Assets
and submit the report to Board of Directors. (Money) Laundering Prevention Committee.
Bank’s Chief Compliance Officer is the
• To recommend to Board of Directors with Member–Secretary of the committee. During
adequate basis regarding the increment the review period a total of 4 meetings were
in employee remuneration including the held to discuss on various issues.
remuneration of CEO as and when felt
necessary as per the prevalent law and policies TERMS OF REFERENCE
of “Remuneration Fixation Policy” of the Bank.
The main objective, responsibility and rights
• To develop performance evaluation indicators of this committee shall be to prepare and
based on the job description, targets and recommend to Board of Directors the draft
achievement of the Bank’s employees and of internal policies/procedures regarding
review of their performance in accordance necessary activities to be undertaken by
with the evaluation process. bank for prevention of money laundering
(AML/CFT) and review/analyze and submit
• To prepare and submit to Board of Directors report to the Board of Directors regarding the
the plan, policies, and frameworks regarding activities of bank for the prevention of money
various human resource management related laundering through development of effective
tasks of recruitment, selection, appointment, mechanism for AML/CFT risk management
deployment, transfer, promotion, skill while other activities shall be guided by the
development, performance appraisal, prevalent

36 GLOBAL IME BANK LTD. | AnnuAl RepoRt 2018-19

 CORPORATE SOCIAL RESPONSIBILITY (CSR)
As a responsible corporate citizen, Global IME Bank is committed to being an active and
supportive member of the community. As such we strive to ensure that our investments
are capable of delivering sustainable benefits for the betterment of all members of the
community.

adverse impacts on the environment and that those

with potentially major adverse environmental
and social impact are accompanied by adequate
mitigation measures.

Our contribution to the community in large are

highlighted below:

EDUCATION & SPORTS

We believe that education and sports forms base to

the future development of our coming generations.
In promoting the education and sports we have left
We believe that it is our duty to ensure that our no stone unturned. Our contribution in promoting
actions extend far beyond our day-to-day lives and education and sports include:
continue to enrich the lives of our people in the
future as well. It is this philosophy that underpins all
the Corporate Social Responsibility (CSR) of Global
IME Bank that reflects our desire to care for all the
stakeholders. To this care our CSR is focused under
four main pillars:

- education & sports,

- financial awareness,
- community conservation
- community health
As a public entity of the country for the past thirteen
years, we have always been committed in sharing our
success with the communities in which we operate.
It is our obligation to empower these communities • Computer and Stationeries distribution
through our socio-economic development activities to Shree Jana Adarsha Secondary
and our self-belief in serving back the communities School, Mustang and Shree Gosaikunda
of our own. We proactively identify opportunities Madhyamik Vidyalaya, Rasuwa
arising from key social, developmental and business • Sponsorship to National Cricket Player
issues when formulating our CSR programs, rather Mr. Dipendra Singh Airee.
than just reacting to requests from charitable • Scholarships to students studying in
causes. Our CSR Committee which is composed of Karnali region
four members sits at least once a month to evaluate • Sponsorship of students doing the
project CSR proposals. Through the CSR Committee, thesis through Tribhuvan University in
we ensures that, engaged projects have minimal agreement with Tribhuvan University.

LTD.. | AnnuAl RepoRt 2018-19

GLOBAL IME BANK LTD
L 37
 FINANCIAL AWARENESS

We are promoting the financial awareness

programs from all the branches and our BLB
agents as well. Apart from these we have
conducted the following:

• Cycle Rally for financial Literacy through

program organized by Nepal Rastra
Bank
• Financial Literacy Expo in Kathmandu
and Pokhara.

COMMUNITY HEALTH

We believe that with sound health, community

can always thrive economically and socially.
We at Global IME Bank have contributed to
development of community health in ways
below:

• Building of Tubewells and toilets

through Swati Nepaal for schools in
Dhaanusha COMMUNITY CONSERVATION
• Eye Check-up campaign at Sunsari
through Biratnagar Eye Hospital We are assisting in protecting our community
• Ant- tobacco program and Health check- in following ways:
up camp through Cancer Council Nepal
and Sirahalee Sewa Samaj Nepal • Contribution in renovating the
• Financial assistance to Lekhnath Chhetrapati Dabali
Sana Sahari Khanepani tatha Sarsafai • Tree Plantation with Tree Guards
Upabhokta Sanstha for purchase of and construction of Chautari in
Rolpa, Kathmandu, Parsa and Syangja
respectively.
• Relief Materials to Fire victims in Kalikot
• Relief Materials to Windstorm victims in
Bara District
• Contribution in constructing ashram to
Narayan Pokharel Foundation

Apart from all the contribution listed above we do

not limit our focus in developing the CSR activities in
equipment to check water purity. these four pillars only. We are always responsive to
• Conducting Cancer Awareness program the need of community in every possible needs.
through Rose Foundation
• Provided wheel chairs to handicapped Bank will always be close to the community
person in the region of Ilam and Sunsari development in near future so as to be always
in association with Karuna Foundation associated with the communities which gives us so
Nepal. much to work.

38 GLOBAL IME BANK LTD. | AnnuAl RepoRt 2018-19

 BANK’S PRODUCT AND SERVICES
The bank offers a complete range of banking products in deposits, lending, trade finance and
remittances. The bank’s deposit product portfolio encompasses customer tailored saving deposits,
fixed deposits, call and current deposits.

GLOBAL IME BANK LTD. | AnnuAl RepoRt 2018-19 39

PRODUCT AND SERVICES
DEPOSIT PRODUCTS GLOBAL NAVARATNA SALARY ACCOUNT
SABAI NEPALIKO BACHAT KHATA Global Navaratna Salary Account is a premium salary
This saving product is designed for people who do account bearing high interest rate, with exclusive
not previously own a bank account and whose yearly offers and waivers.
transaction amount does not exceed Rs. 100,000/-.
This account can be opened by filling up a simplified OTHER FEATURES:
account opening form and a government issued • Minimum Balance: Rs. 100
photo-bearing ID card. In addition, the bank will • Free mobile banking/Viber banking for
deposit Rs. 100/- (tax applicable) after successful the first year.
opening of the account. • Free VISA Debit Card for the first year
• Free Internet banking
OTHER FEATURES: • Free cheque book
• Minimum Balance: Zero • Free ABBS
• Free cheque Book on demand • 50% discount on annual locker charge
• Visa Debit card on request. (upon availability)
• Mobile banking service on request • 50% discount on credit card issuance
• Free internet banking service on fee (subject to eligibility criteria)
request. • Free accidental insurance coverage up
to NPR 500K
GLOBAL SHARE LAGANI BACHAT KHATA
This is a saving product designed especially to GLOBAL NAVARATNA BACHAT KHATA
facilitate stock investors for online trading. It allows It is a saving deposit product intended for people
investors to avail waivers on various ancillary looking for better returns on saving accounts and
products and also provide attractive interest rate on offers highest interest rate and insurance coverage.
their savings.
MAJOR FEATURES:
OTHER FEATURES: • Minimum balance Rs. 25,000/-.
• Accidental insurance coverage of up to
• Free mobile banking/Viber banking for Rs. 5 lakhs.
the first 1 year. • Free mobile banking/Viber banking
• Free DEMAT account opening (first (first year charge waiver).
year) • Free internet banking.
• Free Mero Share facility (first year) • Free ABBS.
• Free VISA Debit Card for the first year • 50% discount on VISA Debit Card
• Free ASBA Facility issuance charge.
• Free Internet banking • 50% discount on Annual Locker Charge
• Free cheque book (upon availability).
• Free ABBS • 50% discount on Credit Card issuance fee.
• 50% discount on annual locker charge • 50% discount on issuance of Balance
(upon availability) Certificate.
• 50% discount on credit card issuance
fee (subject to eligibility criteria) GLOBAL GOLD SAVING ACCOUNT
• IPO/FPO information and notification It is a saving deposit product intended for people
via Viber looking for better returns on saving accounts.

40 GLOBAL IME BANK LTD. | AnnuAl RepoRt 2018-19

FEATURES: • Locker Facility, 50% discount on
• Minimum balance Rs. 20,000/- Annual Charge
• Free mobile banking service for the first • Free ABBS facility
year. • Statement email every month in
• Free Internet banking service. registered email ID.
• Free VISA Debit Card for the first year. • Standing Instruction facility
• Free cheque book.
• Free ABBS. GLOBAL BRANCHLESS BANKING SAVINGS ACCOUNT
• 50% discount on annual locker charge This account is to be opened from our Branchless
(subject to availability). Banking Service points through our BLB agents.
• 50% discount on credit card issuance
fee (for the first time). FEATURES:
• Minimum Balance: Zero
GLOBAL ABHIBHAWAK BACHAT KHATA • Free Cheque Book
Global Abhibhawak Bachat Khata is a saving • Free ABBS (Any Branch Banking
product targeted specially for parents/guardians Service)
with school/college going children. The customers • Mobile Banking with alert of every
(parents/guardians) with this saving account can transactions and bill payment features.
directly make payment of their children’s fees • Free Internet banking
into the school/college’s account maintained with • Free Visa Debit Card for the first year
us through mobile/ internet banking or counter
deposit. Although targeted specially to the parents, GLOBAL REMITTANCE BACHAT KHATA
college-going students who are 16 years and above This product is designed for people who are looking
of age, may also open an account under this scheme. to travel foreign country for working purpose.
They can open account here in Nepal and obtain
OTHER FEATURES: an account number so that they can use the same
• Minimum balance: zero account number to send money from abroad.
• Free cheque book on demand
• Free mobile banking for the first year. FEATURES:
• Free Internet banking. • Minimum Balance: zero
• Payment of school fee through Global • Free ABBS (Any branch banking
Smart/Internet banking. service)
• Waiver on joining fee for Visa debit • Free Internet Banking
card. • Mobile Banking Facility
• Free ABBS • Visa Debit Card
• Locker facility with 30% discount on • Free Cheque Book
annual charges. • Locker Facility
• 0.25% waiver in loan processing fee on
GLOBAL PREMIUM SAVINGS ACCOUNT:- Home Loan
Global Premium Savings account is a saving product
specially designed to fulfill the requirement of saving GLOBAL JANMABHUMI BACHAT
with better returns and without having to spend This product is designed to facilitate everyone
more on fees/charges. working in foreign countries who wish to send their
hard earned money through safest way. This account
FEATURES can only be opened from foreign countries where
• Minimum Balance: Rs. 15,000/- bank’s representatives are located.
• Free Cheque Book
• Free VISA Debit Card for the first year. FEATURES:
• Mobile Banking Service, Free for first • Minimum Balance: zero
year • Free ABBS (Any branch banking
• Free Internet Banking Service service)

GLOBAL IME BANK LTD. | AnnuAl RepoRt 2018-19 41

 • Free Internet Banking GLOBAL NARI BACHAT
• 0.25% discount on processing fee of This product is designed to encourage saving habits
home loan of women. The minimum balance has been set low to
enable any women to open account whenever they wish.
GLOBAL STUDENTS SAVING ACCOUNT
This product is targeted to college students. The FEATURES:
product is believed to cultivate banking habit among • Minimum Balance: Rs. 100
the youngsters, who are the future of the country. • ABBS (Any Branch Banking Service)
• Mobile Banking with alert of every
FEATURES: transactions and bill payment features.
• Minimum balance - zero • Free Internet banking
• Free ABBS and Internet Banking • Visa Debit Card
• 50% waiver on issuance of debit card • Safe Deposit Locker facility
• Mobile Banking with alert of every
transactions and bill payment features. GLOBAL NORMAL SAVINGS
• Cheque book only on request This is a general savings product. People intending
• Discount at various centers to open a general savings account are the target
customers for this product.
GLOBAL BALBALIKA BACHAT
This product is designed to encourage saving habit FEATURES:
amount parents for the future assistance of their • Minimum Balance: zero
children providing them with the benefits of banking • Free Cheque Book on Demand
services. • Visa Debit Card on Request
• Mobile Banking Service
FEATURES: • Free Internet Banking Service
• Minimum Balance: Rs. 1000 • Locker Facility
• ABBS (Any Branch Banking Service) • ABBS facility
• Mobile Banking with alert of every
transaction and bill payment features GLOBAL SENIOR CITIZEN ACCOUNT
• Internet Banking Service This product is designed to cater special requirement
• Visa Debit Card of senior citizens of the country. The customers are
• 25% discount on Education loan provided with privileged service as respect to the
processing fee after the account holder senior citizens.
is 16yrs of age.
FEATURES:
GLOBAL KARMACHARI BACHAT • Minimum Balance: Rs. 1000
This product is designed to enable institutions to • ABBS (Any Branch Banking Service)
distribute salary of their employee through banking • Mobile Banking with alert of every
channel. transactions and bill payment features.
• Free Internet banking
FEATURES: • Visa Debit Card
• Minimum Balance: zero • 30% discount on locker service charge
• Free Cheque Book of Safe Deposit Locker facility
• Debit Card with annual charge waived • Privileged service is offered from the
for first year branches in which Global Plus Lounge
• Mobile Banking Service with annual is available
charge waived for first year
• Free Internet Banking Service GLOBAL LADDER SAVINGS ACCOUNT
• Locker Facility with 30% waiver in FEATURES
Annual Charge • Minimum balance – Rs. 100
• Free ABBS facility • Free Cheque Book

42 GLOBAL IME BANK LTD. | AnnuAl RepoRt 2018-19

 • Free Internet Banking business requirements such as for financing your
long vacation plans, buying home equipment,
FOREIGN CURRENCY SAVINGS DEPOSIT electronics or any other unexpected needs. !!
ACCOUNT
People having income in foreign currency and FEATURES:
wishing to maintain deposit in foreign currency are • Competitive Premium Rate
the target customers for this product. • Flexible Repayment Schedule
• Fast approval and prompt services in all
GLOBAL FIXED DEPOSIT branches
This product is designed to allow general public and • Maximum tenor of 15 years for
institution who wish to earn higher interest rate by instalment basis and 1 year for
keeping their fund in fixed deposit in the bank. revolving nature.
• Counselling to help better financing by
FEATURES: our Relationship Managers throughout
• Minimum Balance: Rs. 10,000 the process
• Swapping loan from another bank /
GLOBAL CURRENT DEPOSIT financial institutions
This product is designed to allow institutions and
individuals to deposit their fund in the bank for safe GLOBAL EDUCATION LOAN
keeping. There are no restrictions for deposit and Global Education Loan is provided to suffice
withdrawal of funds in this account. financing requirement for students to pursue sound
academic career. Our education loan aims to provide
FEATURES: financing in such a way that the requirements of the
• Minimum Balance: Rs. 5,000 students are met without any hassle.

GLOBAL CONVERTIBLE FOREIGN FEATURES:

CURRENCY CURRENT DEPOSIT SCHEME • Competitive Premium Rate
FEATURES: • Flexible Repayment Schedule
• Minimum Balance: Foreign Currency 100 • Fast approval and prompt services in all
branches
LOANS AND ADVANCES • Financing up to 80% of education cost
CONSUMER/ PERSONAL LOAN (includes tuition & admission fee, ticket
Financing your personal and business needs & accommodation expense and medical
insurance expense)
LOAN AGAINST FD • Counselling to help better financing by
Provides you flexibility of availing loan on your our Relationship Managers throughout
Deposit. the process

FEATURES: GLOBAL HIRE PURCHASE LOAN

• Competitive Interest rates: !! GIBL Hire Purchase loan enables you to purchase
• Loan against Fixed Deposit of own commercial vehicles such as heavy and light
bank: Plus 2% p.a. on coupon rate or commercial vehicles especially truck, bus, microbus
base rate whichever is higher excavator etc.!!
• Flexible tenor: Any period within the
maturity period of the FD. FEATURES:
• Financing up to 90 % of the fixed • Competitive Premium Rate
deposit. • Flexible Repayment Schedule
• Fast approval and prompt services in all
GLOBAL MORTGAGE LOAN (PERSONAL LOAN) branches
!! Global Mortgage Loan/ Global Personal Loan • Flexible tenor up to 5 years
is provided to suffice your personal financing/ • Counselling to help better financing by

GLOBAL IME BANK LTD. | AnnuAl RepoRt 2018-19 43

 tkfO{sf] ;kgf, xfd|f] ;fy

44 GLOBAL IME BANK LTD. | AnnuAl RepoRt 2018-19

 our Relationship Managers throughout not have access facilities to banking
the process services
• Provision to provide grace period up to • Providing all kind of financing facilities
six months. with hassle-free processing and
documentation formalities
GLOBAL AUTO LOAN • Working capital for existing / startup
!! Our Auto Loan with its all-inclusive features is the businesses
ultimate solution to your financing requirements. • Term loan for existing and new
With its simple documentation process coupled with business
our speed of delivery and flexibility, you can drive • Supplier Credit / Bid Bond /
your vehicle today itself- be it brand new or used. !! Performance Bond / Advance Payment
Guarantees to facilitate existing and
FEATURES: new businesses
• Competitive Premium Rate
• Flexible Repayment Schedule FEATURES AND BENEFITS:
• Fast approval and prompt services in all • Easy Access and prompt decision
branches • Competitive premium rate
• Flexible tenor up to 7 years • Non-endowment life insurance policy
• Counselling to help better financing by of borrower/guarantor up to the loan
our Relationship Managers throughout amount of Rs. 0.5 million assigned to
the process the bank. – Optional and to be decided
• Financing up to 50% of vehicle price by the borrowers
(80% in case of electric vehicle) • Premium borne by Bank
• No prepayment charge
GLOBAL HOME LOAN • Flexibility in collateral requirement
!! Helping you realize your dreams!!
SME LOAN
FEATURES: !! Flexible financial solutions for business operation
• Purchase of a plot of land and and expansion. !!
construction of residential building.
• Competitive Premium Rate PURPOSE:
• Flexible Repayment Schedule • Financing for small business facilities
• Fast approval and prompt services in all and commitments
branches • Working capital financing
• Flexible tenor up to 25 years • Financing term loans and leases e.g.
• Counselling to help better financing by Auto loan, hire purchase etc.
our Relationship Managers throughout • Swapping of loan from other banks and
the process financial institutions
• Grace period up to 1 year. • Financing for capital expenditure (in
• Financing up to 50% of fair market the form of Fixed Term Loan)
value of property within Kathmandu • Financing for trade related facilities like
Valley and 60% outside Kathmandu LC/TR and non-funded facilities like
valley bank guarantee etc.

GLOBAL SMALL BUSINESS LOAN FEATURES AND BENEFITS:

Global Small Business Loan also gives you the • Competitive premium rates
comfort of Insurance while fulfilling your business/ • Fast approval and prompt services in all
financial need. branches Prompt services.
• Flexible tenor: Maximum up to 10 years
PURPOSE: on installment basis for term loan and 1
• Banking facilities for those who do year for working capital loan.

GLOBAL IME BANK LTD. | AnnuAl RepoRt 2018-19 45

 • Counseling to help better financing by FEATURES AND BENEFITS:
our Relationship Managers throughout • Financing 70% of the working capital
the process requirement
• Tenure: 1 year
CORPORATE LOAN • Renewable based on the transactions,
!! Financing to help you maximize business growth!! repayment and requirement of the
client
FUNDED LOAN • Counseling to help better financing by
!! Global IME Bank offers different Industrial/ our Relationship Managers throughout
Business Loans to suffice financing requirement of the process
different kinds of organizations. !! • Minimum Loan processing fee

Followings are the different funded facilities offered IMPORT CREDIT: TRUST RECEIPT (TR) LOANS
by GIBL: TR loan is a short period loan booked to make
payment for goods ordered by issuing LC through
FIXED TERM LOAN Global IME Bank Limited. Trust Receipt Loan is
Fixed term loan is granted for industry to finance associated with import Letter of Credit only. This
fixed assets whose gestation period is high. is an arrangement under which credit is allowed
against trust receipts and imported goods remain
REPAYMENT PERIOD: in the custody of the importer. The borrower has to
3 – 15 years (Infrastructure period) execute a trust receipt in favor of the bank declaring
3 – 7 years (Other projects) that he holds goods imported with the Bank’s
credit in trust of the bank. TR is extended up to the
Repayment Schedule: Repayment on installments maximum tenor of 120 days.
over the period of loan
EXPORT CREDIT: PRE SHIPMENT AND
WORKING CAPITAL LOAN POST SHIPMENT CREDIT
Working capital loan will be granted to meet the Pre-shipment credits are usually required by
working capital requirement of the borrower. exporters to purchase and procure raw materials,
Working capital can be divided into fixed working process and manufacture export goods, pack the
capital and variable working capital. Fixed working goods for export, pay for transporting goods to
capital will be financed by way of short term loan the sea ports/airports for export, pay the freight,
whilst variable working capital will be financed insurance and export duty, if any. Pre-shipment
by overdraft facility. Financing up to 70% of the credits are usually liquidated by negotiating bills or
requirement (working capital calculated by net of by the post-shipment credit.
current assets and current liability) can be made
through this type of loan. Pre-shipment credit will be granted to the exporter
on the basis of a confirmed letter of credit against a
OVERDRAFT firm export order.
Overdraft facility is a running loan account grated
to finance variable working capital requirement The Bank will extend post-shipment credit through
of businesses. The borrower shall be allowed to purchase/discount of export bills or by way of
overdraw his/her current account with prescribed advance against such bills.
limit and stipulated time period offered by the
competent authority. The borrower can deposit DEMAND LOAN
any amount in this account. Thus, the balance will Demand loan is provided in a lump sum or repayable
be fluctuating due to withdrawal and repayment of either in fixed installments or in lump sum by
money by the borrower. Overdraft will generally be assessing the working capital requirement of the
granted to the businessmen for the fulfillment of their borrower.
short - term credit needs not exceeding 1 year tenure.

46 GLOBAL IME BANK LTD. | AnnuAl RepoRt 2018-19

CASH CREDIT Under infrastructure/project loan, Global IME bank
Global IME Bank offers both Revolving and Non- provides different credit facilities such as Term Loan,
revolving Cash Credit to finance unique requirement Working Capital, Letter of Credit, Bridge Gap Loan
of the businesses. etc and the credit facilities are designed accordingly
to match business requirement and cash flow of the
• Cash Credit - Revolving (CCR): project.

Cash Credit - Revolving is similar to that of CONSORTIUM LOAN

overdraft limit in nature but unlike in OD, a Global IME Bank provides consortium loans for
separate loan account will be maintained for large projects. The bank has currently managed
loan limit implementation and is regulated different consortiums as a Lead Bank for hydro,
by the drawing power within the offered steel and hotel projects. Further, the bank has also
limit. Revolving Cash Credit shall be provided participated in different consortiums as a Member
against the pledge or hypothecation of stock - Bank for hydro, cement, hotel and pharmaceutical
in - trade, goods, machinery, land, building etc. projects to mention a few.

• Cash Credit - Non – Revolving (CCNR): TRADE FINANCE

Cash Credit - Non - Global IME Bank Limited provides wide range of trade
services covering import, export and Guarantees
Revolving is basically a substitute to TR loan services. We have an experience team of trade staffs,
for financing the import of capital goods such who will work with you in a very personalized and
as plant and machinery. professional manner, to ensure international trade
transactions; proceed faster, easier and risk-free.
PLEDGE LOAN Our team will not only process your request but
Pledge loan is provided basically for maintaining also provide you import information useful to your
the stock of the trading items / goods under the business as well.
speculation that the price of the commodity would
increase in due course of time. Generally, the goods IMPORT LETTER OF CREDIT
having seasonal nature like food - grains, sugar etc., Documentary Letter of Credit (DC) is a conditional
are considered for the pledge loan. Under pledge undertaking given by a bank (issuing bank) on
loan, goods are kept under lock and key of the bank behalf of buyer/ applicant to pay a seller/beneficiary
in the borrower’s go - down for security of the loan. against stipulated documents provided all terms
The goods will be released partially or fully as and and conditions are complied. Letter of credit is the
when the sales deal is made and corresponding most safe and convenient means of payment for the
amount of loan outstanding is settled. Global IME export in all domestic and international trade. Global
Bank offers pledge loan and finance up to 70% of the IME Bank Limited offers inland and foreign Letter of
cost price of goods/ commodity under pledge. Credit of two types:

INFRASTRUCTURE/PROJECT & • Sight LC: The Letter of Credit which

CONSORTIUM LOANS needs to be settled/ retired within
!! Financial Solution to your complex and large 5 banking days after the sight of the
projects!! documentary bill following the date
of presentation provided that the
INFRASTRUCTURE/PROJECT LOAN documents are clean.
Global IME Bank finances to different types of • Usance LC: The Letter of Credit which
infrastructure/project including “Green Field” needs to be settled/retired in a specific
projects. The bank has currently financed on different future date only after acceptance of the
types of projects such as Hydro, Cement, Steel, Hotels presented documents
and Housing. Expert and experienced relationship • Discounting LCs: The Usance Letter of
managers are involved in project assessment to look Credit which is discounted by Global IME
after financial and technical feasibility of the project. Bank Limited with certain discounting

GLOBAL IME BANK LTD. | AnnuAl RepoRt 2018-19 47

 interest, net of payment which is made at • Performance Bond Guarantee
sight to the beneficiary and payment by • Advance Payment Guarantee
the applicant to us at specific future date
only after acceptance of the presented DOCUMENTARY COLLECTIONS
documents. Documentary Collection offers low-cost but secure
alternatives to letter of credit to trade. It is easy
IMPORT LETTER OF CREDIT CYCLE and convenient to route documentary collection
• The buyer and seller negotiate the deal through Global IME Bank Limited. The bank offers
for purchase/sell of goods/ services and both inward and outward documentary collection
approach the LC issuing bank to open an services in a very competitive pricing in compliance
import letter of Credit (LC) with ICC publication Uniform Rules for Collection
• The issuing bank issues the Letter of number 522 and Nepal Rastra Bank directives
Credit and sends it to the advising bank for both sight (DAP) and usance (DAA) collection
for advising the LC to the beneficiary, documents.
the advising bank advises the LC to
beneficiary for shipment of goods. GLOBAL KRISHI KARJA
• The exporter/seller exports the goods Providing loan to farmers for raising cereal and
as per the terms and conditions of the cash crops including purchase of chemical fertilizer,
LC and submits the relevant documents pesticides, seeds, labor wages etc. In addition,
as stated in the LC to the negotiating/ providing advances against pledge/hypothecation
nominated bank of agricultural product.
• The negotiating bank forwards the
original documents to issuing bank for FEATURES:
payment under LC • Provide loan to farmers for other
• The issuing bank obtains the payment agricultural business like dairying,
from the applicant/buyer and sends fishery, piggery, poultry, bee-keeping,
the payment to the negotiating bank goat farming, sericulture, floriculture,
to further credit the payment to the horticulture, herb, aayurvedic and
beneficiary/seller. medicinal crops/products etc.
• The issuing bank provides the LC • Financing for agricultural implements
documents to the applicant/buyer for and machinery including purchase
the release of goods from the customs. of trucks, bullock carts, transport
equipment, plough animals, tractors etc.
EXPORT LETTER OF CREDIT • Financing for combined farming pulling
Global IME Bank offers export LC advising and together agricultural land and/or for
negotiation services. Under export LC negotiation, irrigation and marketing purpose.
we purchase sight bill of exchange and discounting • Financing to construct shallow and deep
of usance bill of exchange. tube well, tanks, etc. and purchase of
drilling units
LETTER OF GUARANTEE • Provide loan for construction and
A Letter of Guarantee is an irrevocable promise running of warehouses, godowns, silos
made in writing by one person (guarantor or surety) and cold storage.
to another party(the beneficiary) to answer for the
debt or default of a third party (principal debtor). REMITTANCE GLOBAL REMIT
Global Remit is a premium online customer focused
Global IME Bank Limited provides international and technology oriented remittance product of Global
guarantees besides local guarantees. We have our IME Bank Ltd. It is web based remittance software
correspondent bank in Asia, America and Europe. that facilitates online money transfer system with
We provide below mentioned guarantees: the latest technological features. It supports ID &
Account Transfers enabling customers to transfer
• Bid Bond Guarantee funds from our International partners to all our

48 GLOBAL IME BANK LTD. | AnnuAl RepoRt 2018-19

branches/payout locations at your nearest locations. • E-wallet Load
With the vast experience of the management team
and the board of directors in remittance business, 2. Request
Global Remit is dedicated to provide fastest and
safest way of money transfer. So far with the lowest • Cheque Stop
sending fee and highest exchange rate offered to its • Cheque Book
customers, Global Remit has established a strong
bond amongst its customers. 3. Accounts Enquiry

FEATURES • General Information

1. Web based technology. • Mini Statement
2. VeriSign Secured • Full Statement
3. Largest Network with 153 Global IME Bank
Branches, more than 5200 IME locations 4. Settings
and 1000 plus YES Remit agents.
4. Real time transaction processing • Change Login Password
5. Provide fastest and reliable means of • Change Transaction Password
remittance information. • Link Account Settings
6. Deposit instant in any Global IME Bank • Link Credit Card Settings
branches & any other Banks & Financial
Institutions. 5. Message and History
7. Competitive service charge.
• Compose and Send Message
DIGITAL BANKING • Read Message
Secured Convenient and Ease • Global Online History

You can bank how, where and when it's most PROCEDURE TO REGISTER TO GLOBAL
convenient for you. Global IME Digital Banking gives ONLINE BANKING
you a powerful, comprehensive set of online and • Fill up the application for online
mobile banking tools to its valued customers. banking.
• Submit it to the respective branch.
GLOBAL ONLINE • Receive your user ID and passwords in
Why stand in line when you can do online? Global IME your e-mail and mobile phone.
Bank offers convenient banking facilities through the • Begin using online banking service.
Internet so its valued customers can save their time
and money. Global online banking features many of ELIGIBLITY
the traditional banking activities which previously All account holders of Global IME Bank are eligible
could only be done through the counter. to apply for Global Online. No additional documents
are required.
The following are the list of features available
through Global online banking. GLOBAL CORPORATE ONLINE BANKING
Information on Global Corporate Online Banking
1. Transactions Global Corporate Online Banking offers all the
features and advantages of Global Online Banking
• Fund Transfer and the added benefit is that Corporate Users can
• Credit Card Payment disburse the salary to their entire staffs on a monthly
• Landline Bill Payment basis or as per the requirement of the individual
• Postpaid Bill Payment corporation. This service allows corporate clients
• Top Up of Prepaid/Postpaid Mobile, with their staff salary accounts with the Bank to
Television upload their staff’s salary from their own office.

GLOBAL IME BANK LTD. | AnnuAl RepoRt 2018-19 49

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50 GLOBAL IME BANK LTD. | AnnuAl RepoRt 2018-19

PROCEDURE TO REGISTER TO GLOBAL IME cards. The protective feature enables the
CORPORATE ONLINE BANKING bank to authenticate not only the card but also the
• Fill up the application for Global cardholder during payment of internet purchases
Corporate Online Banking* thus protecting their online transactions against
• Submit it to the respective branch theft and illegal use of cards.
• Receive your user ID and passwords in
your e-mail and mobile phone GLOBAL SMART MOBILE BANKING
• Begin using Global Corporate Online Global Smart is Global IME Bank’s Mobile Banking
Banking Services Application, developed to improve the experience of
its customers. Global Smart is available on Android
* The application form must be accompanied by and iOS devices.
Request for Global Corporate Online Baking on the
official letter head of the corporation. The letter With Global Smart Mobile Banking, discover quick,
must be signed by all of the required account simple and convenient way to take command of
operators and official stamp of the corporation is your bank account, on your mobile phone.
also mandatory.
Global Smart is equipped with following features:
ELIGIBILITY:
All corporate account holders of Global IME Bank • Account Dashboard which links linked
are eligible to apply for Global Corporate Online account information of Saving Account,
Banking. Loan Account, Overdraft, Credit Card
details.
GIBL SECURED ECOM • Biometric Login Security using
There is 3D secure services available for our Credit Fingerprint for both Login and
Cardholders to perform online transactions via card. Transaction Pin.
This service allows GIBL credit card holders to use • Graphical Statement and Account
their cards during online transactions and allow Dashboard
them to participate in Verified by Visa process. The • Payment to different Merchant Outlets
new value-added service by us is an extension of the using QR Code
Banks mission to reiterate our commitment to our • Fund transfer using QR Code
consumers to meet the needs of an ever-changing • Easy to navigate Bank's Branches/
market in terms of security, technology, and financial ATMs, Exchange rate, Contact
solutions. • Missed Call banking
• Credit Card Bill payments
The few simple steps will enable our cardholders • Mobile Top up viz. NTC Prepaid/
to activate the new feature while performing first Postpaid, Ncell Prepaid/Postpaid, NT
ecommerce transaction where customers need Landline, ADSL, Dishhome, SimTv,
to enroll and set credentials for future usage. SmartCell
Subsequent online purchases will then be validated • Recharge Cards viz. NT GSM, NT
with additional layer of security for cardholder’s CDMA, Dishhome, Broadlink internet,
authentication. We in association with VISA SmartCell
have partnered with Izealiant Technologies for • Load eSewa, Imepay Wallet
implementing this solution that provides flexibility • Personalized QR Code
to choose authentication types like Password or OTP • Fonepay Integration
depending upon customer preference. • Banking services without internet(SMS
Banking)
As a direct benefit, GIBL cardholders can now enjoy • Engaging Promotion banners
additional security for their online card usage • Information of exciting offers and
on various ecommerce sites worldwide. This will discounts
also increase acceptance across more Merchants
participating in 3D secure services for using Global Global Smart Mobile Banking application, required

GLOBAL IME BANK LTD. | AnnuAl RepoRt 2018-19 51

to be installed in mobile phone can be downloaded • The SMS is delivered to the customer
from our website www.globalimebank.com. This instantly as per the SMS format of each
setup file can be downloaded from mobile phones feature
with GPRS facility or can be downloaded to any PC
and then transferred to mobile phone. VIBER BANKING
Viber banking is a digital technology that allows
PROCEDURE TO REGISTER TO GLOBAL you to enjoy various services by interacting with
SMART MOBILE BANKING the Bank directly through social network app Viber,
• Fill up the application for Global Smart the popular internet based cross-platform instant
Mobile Banking. messaging over VOIP IP application, available for
• Submit it to the respective branch. free from Google store and App store.
• Receive your confirmations SMS and
PIN code in your registered NTC or FEATURES
NCELL mobile. • About Us: Displays various information
• Start using Global Smart Mobile about the bank
Banking. • Notices: Receive information on recent
notices and updates published by the
MISSED CALL BANKING bank
To provide hassle free and convenient banking • Branches: Lists the location addresses
services to the customer by leveraging technology, for all available banking branches
Global IME Bank have introduced Missed Call • Banking hours: Displays designated
banking. All customers who have already got their Normal Business/Transaction Hours
mobile number registered in the Global Smart and Extended Banking Hours at the
application can get the information regarding bank’s branches
balance of their account, mini statement, mobile • ATMs: Lists the location addresses for
top up, credit card statement, loan enquiry and all available Automatic Teller Machines
information by just giving missed call to predefined • Products & Services: Showcases the
numbers. bank’s various products and service
related information
The following 6 features can be accessed by using • Forex Rates: Allows users to check the
Missed Call Banking Service in the respective Mobile Foreign Currency Exchange rates
Number: • Feedbacks: Enables users to give
feedbacks and comments directly to
S. No. Features Mobile Number bank through Viber
• Social Networks: Allows customers
1 Balance enquiry 98012312 94
to connect with bank through various
Mini Statement(Last 3 social media
2 98012312 95
Transaction)
• FAQs: Gives information regarding most
3 Top Up of Rs 100 98012312 96 frequently asked questions
Last 3 statement of Credit 98012312 97 • Interest Rate: Gives current rates for
4 Card various types of account and loans
5 EMI Due Enquiry 98012312 98 • Branchless Banking: Lists branchless
banking locations
6 Loan Product Enquiry 98012312 99 • Social Responsibility: Gives news of
CSR activities done by bank
PROCESS OF MISSED CALL BANKING • Online Account Open: Provide the link
• Customer gives miss call to dedicated for online account opening
number to access specified feature as
mentioned above from any mobile set. ADDITIONAL KEY FEATURES
• After First ring, the call gets • Account Information: Displays the
automatically disconnected. registered customer’s account related

52 GLOBAL IME BANK LTD. | AnnuAl RepoRt 2018-19

 information like Account holder name, Also, by login into the Mobile banking application,
account number, Mobile number and Customer Needs to click on "Scan 2 Pay" option
email address. which leads to "Scan to Pay on Merchant Outlets"
• Balance Inquiry: Displays Account screen.
balance, Available Balance and Accrued
interest ONLINE FIXED DEPOSIT
• Mini Statement: Displays last 5 “Online Fixed Deposit” is a service through which
transaction the saving account holders wishing to open an FD
• Credit Card Inquiry: Displays accounts can do through Global Online (Internet
information regarding available banking) service from anywhere. Through Online
credit limit, available cash limit, total Fixed Deposit module, the account holders who
outstanding amount, due amount, due have subscribed to Global Online (Internet banking)
date and last payment date service can seamlessly transfer funds from their
• Loan/Overdraft Inquiry: Displays EMI saving accounts to the fixed deposit accounts from
amount, due date, outstanding interest anywhere, anytime without visiting branches.
and loan amount.
• Fixed Deposit Amount: Displays FD Eligibility:
amount, tenure of FD period, maturity • Maintain Personal Saving account with
date and interest rate. the bank
• Subscribe Global Online (Internet
QR MERCHANT PAYMENT Banking Service)
As a paperless system of making payment, Global
IME Bank offers an alternative to the traditional Charges: Free Global Online(Internet Banking)
systems, a payment via QR Code scanning through service
Mobile. QR payment systems have the advantage of
enabling transactions to be processed quickly and Tenure: 3 month, 6 month, 9 month and 12 month
more cheaply and also offer a much more convenient
method of effecting settlement of transactions. Interest Rate: 0.5% extra on card rate

QR code (Quick Response) is a black and white Limit for Online FD: Minimum Rs 10,000
dotted digital image which holds certain information Maximum Rs. 10 Million
on it and only smart phone's camera can scan the
details. Global IME Bank has introduced QR payment Benefits:
technology through Mobile banking channel (Global • Convenience: It gives the convenience
Smart) for the first time in Nepal. In this technology, to open a fixed deposit account while
simply customer makes payment through mobile by sitting in your own home or anywhere
scanning QR code at the merchant. in the world and at any time.

Bank Customers are provided Mobile Banking • Speed: A fixed deposit account can be
Application for QR payment on different Merchant opened instantly. There is no need to
Outlets. spend time to travel to a bank’s branch,
wait in a queue and then travel back in
Following are the steps for QR code Scan and traffic.
payment on Merchant Outlets:
• Easy payment option: In the online
Customer opens bank's Mobile Banking application. method, the amount is directly debited
Without login into the application, Customer Scrolls from the savings account of the customer
on right side of the landing page. The "Scan to Pay and thus it is an easy payment option.
on Merchant Outlets" screen appears which is used This eliminates the need to carry a lump
to scan the QR code displayed on the merchant side. sum to the bank or visit the bank, etc.

GLOBAL IME BANK LTD. | AnnuAl RepoRt 2018-19 53

GLOBAL IME EASY BUY EASY PAY (EBEP) - 1. EBEP offers financing facility on
A CREDIT CARD LOAN FACILITY products worth ranging from minimum
Global IME Easy Buy Easy Pay (EBEP) is a Credit Card NPR 15,000 up to NPR 0.2 Million.
based loan facility designed to promptly facilitate 2. The customer can select the repayment
the customers in purchasing their desired products tenure from minimum 6 months up to
instantly without any down payment requirements 18 months.
at 0% interest on EMI basis upon their choice of 3. The billing will be processed at the 1st
repayment time frame, as per their convenience, of every English Month with 15 days
availed through hassle-free quick processing service of grace period to the customer for the
enabling the customers to enjoy the products as and payment who has the principal payment.
when required. 4. The customer also has the choice of
prepaying the outstanding loan amount
Our EBEP facility offers the financing facility on at minimal pre-payment charges.
wide range of consumer goods such as electronic
appliances and gadgets, mobile phones and The renowned brand partners of EBEP are listed
accessories, home appliances, furniture, designer in the Bank’s website www.globalimebank.com
wears, refined jewelries of renowned brands. The herewith and the bank is constantly progressing on
Credit Card loan facility offers following features: associating with more celebrated brands.

54 GLOBAL IME BANK LTD. | AnnuAl RepoRt 2018-19

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GLOBAL IME BANK LTD. | AnnuAl RepoRt 2018-19 55

INTERNATIONAL CORRESPONDENT BANKS
List of INTERNATIONAL CORRESPONDENT BANKS & BIC Codes
For settlement through: GLBB NP KA

Currency Correspondent Bank SWIFT/BIC

AUD National Australia Bank Ltd, Melbourne NATA AU 33 033
Standard Chartered Bank, Frankfurt am Main
EUR SCBL DE FX
IBAN: DE 1451 2305 0000 1818 8406
Standard Chartered Bank,
GBP London SCBL GB 2L
Sort code: 609104
United Bank of India,
INR UTBI IN BB
Kolkata
HDFC Bank Ltd,
INR Mumbai HDFC IN BB
ISFC CODE: HDFC 0000060
Standard Chartered Bank,
INR Mumbai SCBL IN BB
ISFC CODE: SCBL 0036001
Punjab National Bank,
INR PUNB IN BB
Mumbai
AXIS Bank,
INR Mumbai AXIS IN BB FIC
ISFC CODE: UTIB0000004
IDBI Bank,
INR IBKL IN BB 005
Ashok Nagar, Chennai-600083
YES Bank,
INR YESB IN BB
Mumbai
RBL Bank,
INR RATNINBB
Mumbai
ICICI Bank,
INR Mumbai ICICINBBA
IFSC Code: ICIC0000004
Standard Chartered Bank,
JPY SCBL JP JT
Tokyo

56 GLOBAL IME BANK LTD. | AnnuAl RepoRt 2018-19

Currency Correspondent Bank SWIFT/BIC
China Construction Bank
CNY PCBC CN BJ
Shanghai, China
SGD Standard Chartered Bank, Singapore SCBL SG SG
Habib American Bank,
USD HANY US 33
New York
Kookmin Bank,
USD CZNB KR SE
Seoul
Standard Chartered Bank,
USD SCBL US 33
New York
Korea Exchange Bank,
USD KOEX KR SE
Seoul, Korea
Mashreq Bank PSC,
USD MSHQ US 33
New York
Industrial Bank of Korea
USD IBKO KR SE
Seoul, Korea
Kookmin Bank,
USD CZNB KR SE
Seoul
Standard Chartered Bank,
USD SCBL US 33
New York
Korea Exchange Bank,
USD KOEX KR SE
Seoul, Korea
ICICI Bank,
USD ICICHKHHCLR
Hong Kong
Standard Chartered Bank,
AED Dubai SCBL AE ADB
IBAN: AE310440000015209932401
The Commercial Bank (Q.S.C)
QAR Doha, State of Qatar CBQ AQ AQA
IBAN: QA30CBQA00000000401000236001

GLOBAL IME BANK LTD. | AnnuAl RepoRt 2018-19 57

 l56f], 5l/tf], e/kbf]{===

58 GLOBAL IME BANK LTD. | AnnuAl RepoRt 2018-19

Financial Statements for the
Financial Year 2075-76 (2018-19)

GLOBAL IME BANK LTD. | AnnuAl RepoRt 2018-19 59

60 GLOBAL IME BANK LTD. | AnnuAl RepoRt 2018-19
GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19 61
62 GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19
 CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As on 31st Asar 2076 (16 July 2019)
Group Bank
Current Year Previous Year Current Year Previous Year
Note NPR NPR NPR NPR
Assets
Cash and Cash Equivalents 4.1 11,943,820,100 8,506,651,247 11,531,556,889 8,027,502,157
Due from Nepal Rastra Bank 4.2 5,239,466,652 4,776,389,525 5,217,312,678 4,768,987,025
Placement with Bank and Financial Institutions 4.3 40,000,000 172,188,252 - -
Derivative financial instruments 4.4 4,112,517,152 2,994,226,796 4,112,517,152 2,994,226,796
Other trading assets 4.5 383,381,622 207,784,950 - -
Loan and advances to B/FIs 4.6 3,508,806,424 3,177,259,480 4,054,633,604 3,474,259,480
Loans and advances to customers 4.7 112,195,294,276 89,975,882,315 108,977,607,686 88,878,095,645
Investment securities 4.8 13,164,986,491 16,333,034,282 13,153,151,992 16,320,652,832
Current Tax Assets 4.9 1,317,330,086 1,040,358,579 1,259,701,665 1,010,327,239
Investment in subsidiaries 4.10 - - 219,775,000 219,775,000
Investment in associates 4.11 422,148,079 359,728,403 319,577,861 298,057,200
Investment property 4.12 118,685,464 91,917,079 118,685,464 91,917,079
Property and equipment 4.13 1,419,110,761 1,361,447,052 1,373,573,734 1,324,470,731
Goodwill and intangible assets 4.14 35,817,033 37,812,152 28,288,609 31,776,935
Deferred Tax Assets 4.15 220,120,199 188,284,780 212,078,419 177,846,130
Other Assets 4.16 1,113,694,624 1,264,197,347 1,075,101,633 1,223,764,894
Total Assets 155,235,178,964 130,487,162,238 151,653,562,387 128,841,659,143

Current Year Previous Year Current Year Previous Year

NPR NPR NPR NPR
Liabilities
Due to Banks and Financial Institutions 4.17 6,297,101,138 2,346,752,346 4,410,876,030 1,659,926,258
Due to Nepal Rastra Bank 4.18 1,231,800,211 1,034,648,590 1,231,800,211 1,034,648,590
Derivative financial instruments 4.19 3,879,901,668 3,039,483,464 3,879,901,668 3,039,483,464
Deposit from customers 4.20 120,943,260,203 105,181,948,626 120,088,440,064 104,850,510,393
Borrowings 4.21 18,000,000 - - -
Current tax liabilities 4.9 1,245,969,517 965,848,642 1,202,570,465 948,515,777
Provisions 4.22 - - - -
Deferred Tax Liabilities 4.15 - - - -
Other Liabilities 4.23 3,413,016,987 3,702,826,363 3,011,351,016 3,329,896,365
Debt securities issued 4.24 1,496,452,596 400,000,000 1,496,452,596 400,000,000
Subordinated Liabilities 4.25 - - - -
Total Liabilities 138,525,502,319 116,671,508,031 135,321,392,050 115,262,980,847
Equity
Share capital 4.26 10,310,515,959 8,888,375,827 10,310,515,959 8,888,375,827
Share premium
Retained earnings 4.27 2,825,449,981 1,561,267,901 2,663,622,463 1,460,832,125
Reserves 4.27 3,441,671,123 3,249,776,184 3,358,031,915 3,229,470,345
Total equity attributable to equity holders 16,577,637,063 13,699,419,912 16,332,170,337 13,578,678,296
Non-controlling interest 132,039,582 116,234,295
Total Equity 16,709,676,645 13,815,654,207
Total Liabilities and Equity 155,235,178,964 130,487,162,238 151,653,562,387 128,841,659,143

Contingent Liabilities and Commitment 4.28

Net assets value per share 158.40 152.77
The accounting policies and notes on pages 69 through 178 form an integral part of the Financial Statements.
___________________________ __________________________________ _______________________
Mahesh Sharma Dhakal Chandra Prasad Dhakal Prakash Lamsal, FCA
Acting Chief Executive Officer Chairman Partner
P.L.R.G. Associates
Chartered Accountants
__________________________ __________________________________
Raja Aryal Sudarsun Krishna Shrestha _______________________________
Chief Financial Officer _____________________ Binay Prakash Shrestha, FCA
Suman Pokharel Director Proprietor
_____________________
K.A.S. Associates
Numanath Poudel
1st October 2019 _____________________ Chartered Accountants
Kathmandu Krishna Prasad Sharma

GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19 63

 CONSOLIDATED STATEMENT OF PROFIT OR LOSS
For period ended 31st Asar 2076 (17 July 2018 to 16 July 2019)

Group Bank
Current Year Previous Year Current Year Previous Year
Note NPR NPR NPR NPR
Interest Income 4.29 13,930,670,471 11,642,070,742 13,530,884,797 11,481,732,049
Interest Expenses 4.30 8,494,409,611 7,667,415,571 8,288,538,779 7,604,848,094
Net interest income 5,436,260,860 3,974,655,170 5,242,346,018 3,876,883,954
Fees and Commission Income 4.31 1,310,074,547 994,877,243 1,181,096,127 933,457,252
Fees and Commission Expenses 4.32 238,738,243 182,580,592 216,433,567 174,778,233
Net fee and commission income 1,071,336,304 812,296,651 964,662,560 758,679,018
Net interest, fee and commission income 6,507,597,164 4,786,951,821 6,207,008,578 4,635,562,973
Net Trading Income 4.33 443,073,174 229,105,060 412,125,157 261,961,095
Other Operating Income 4.34 186,298,992 219,592,586 163,057,647 198,163,937
Total operating income 7,136,969,330 5,235,649,467 6,782,191,382 5,095,688,005
Impairment charge/(reversal) for loans and other 4.35 220,593,802 (286,812,854) 198,187,082 (289,835,348)
losses
Net Operating Income 6,916,375,528 5,522,462,321 6,584,004,300 5,385,523,353
Operating Expenses
Personnel Expenses 4.36 1,692,613,488 1,376,416,978 1,579,661,879 1,314,224,299
Other Operating Expenses 4.37 899,270,940 798,638,743 859,409,263 766,481,696
Depreciation and Amortization 4.38 247,916,568 249,499,113 238,304,434 243,744,981
Operating profit 4,076,574,532 3,097,907,489 3,906,628,724 3,061,072,377
Non-operating income 4.39 68,188,546 32,453,501 27,289,531 1,888,454
Non-operating expense 4.40 - 150,984,395 - 150,984,395
Profit before income tax 4,144,763,078 2,979,376,594 3,933,918,255 2,911,976,436
Income Tax Expense 4.41
Current tax 1,245,969,517 965,848,642 1,202,570,465 948,515,777
Deferred tax (27,968,044) (145,936,557) (30,605,877) (137,902,491)
Profit for the year 2,926,761,605 2,159,464,509 2,761,953,667 2,101,363,149
Profit attributable to: 4.42
Equity holders of the Bank 2,892,357,853 2,151,546,888
Non-controlling interest 34,403,752 7,917,620
Profit for the year 2,926,761,605 2,159,464,509 2,761,953,667 2,101,363,149
Earnings per Share
Basic earnings per share 28.04 24.30 26.46 23.64
Diluted earnings per share 28.04 24.30 26.46 23.64

The accounting policies and notes on pages 69 through 178 form an integral part of the Financial Statements.
___________________________ __________________________________ _______________________
Mahesh Sharma Dhakal Chandra Prasad Dhakal Prakash Lamsal, FCA
Acting Chief Executive Officer Chairman Partner
P.L.R.G. Associates
Chartered Accountants
__________________________ __________________________________
Raja Aryal Sudarsun Krishna Shrestha _______________________________
Chief Financial Officer _____________________ Binay Prakash Shrestha, FCA
Suman Pokharel Director Proprietor
_____________________
K.A.S. Associates
Numanath Poudel
1st October 2019 _____________________ Chartered Accountants
Kathmandu Krishna Prasad Sharma

64 GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19

 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For period ended 31st Asar 2076 (17 July 2018 to 16 July 2019)

Group Bank
For Year ended Current Year Previous Year Current Year Previous Year
Note NPR NPR NPR NPR

Profit for the year 2,926,761,605 2,159,464,509 2,761,953,667 2,101,363,149

Other comprehensive income, net of income tax
a) Items that will not be reclassified to profit or loss
Gains/(losses) from investments in equity instruments 4.8 (29,435,602) (105,975,093) (28,888,651) (104,437,593)
measured at fair value
Gains/(losses) on revaluation 4.13 -
Actuarial gain/(losses) on defined benefit plans 4.23 16,800,614 (25,682,214) 16,800,614 (25,682,214)
Income Tax relating to above items 4.41 3,867,372 39,420,318 3,626,412 39,035,943
Net other comprehensive income that will not be reclassi- (8,767,616) (92,236,989) (8,461,625) (91,083,864)
fied to profit or loss
b) Items that will be reclassified to profit or loss
Gains/(losses) on cash flow hedge
Exchange gains/(losses) (arising from translating financial
assets of foreign operation)
Income Tax relating to above items
Reclassify to profit or loss
Net other comprehensive income that will be reclassified - -
to profit or loss
c) Share of other comprehensive income of associate ac-
counted as per equity method
Other comprehensive income, net of income tax (8,767,616) (92,236,989) (8,461,625) (91,083,864)
Total comprehensive income for the year 2,917,993,989 2,067,227,520 2,753,492,042 2,010,279,285
Total comprehensive income attributable to:
Equity holders of the Bank 2,883,668,815 2,059,598,181
Non-controlling interest 34,325,174 7,629,339
Total comprehensive income for the period 2,917,993,989 2,067,227,520 2,753,492,042 2,010,279,285

The accounting policies and notes on pages 69 through 178 form an integral part of the Financial Statements.

___________________________ __________________________________ _______________________

Mahesh Sharma Dhakal Chandra Prasad Dhakal Prakash Lamsal, FCA
Acting Chief Executive Officer Chairman Partner
P.L.R.G. Associates
Chartered Accountants
__________________________ __________________________________
Raja Aryal Sudarsun Krishna Shrestha _______________________________
Chief Financial Officer _____________________ Binay Prakash Shrestha, FCA
Suman Pokharel Director Proprietor
_____________________
K.A.S. Associates
Numanath Poudel
1st October 2019 _____________________ Chartered Accountants
Kathmandu Krishna Prasad Sharma

GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19 65

 STATEMENT OF CHANGES IN EQUITY
For period 1st Shrawan 2075 to 31st Asar 2076 (17 July 2018 to 16 July 2019)

Amount in NPR
Group
Attributable to Equity holders of Bank

Exchange Total Non

Share General Regulatory Fair Value Accumulated Other
Share Capital Equalization Shareholders' Controlling Total Equity
Premium Reserve Fund Reserve Reserve Profit/Loss Reserve
Fund Funds Interest

Balance as at Shrawan 1, 2075 8,888,375,827 - 2,003,034,229 99,158,504 488,808,716 17,249,845 1,561,267,902 641,524,889 13,699,419,912 116,234,295 13,815,654,207

Comprehensive Income for the year - -

Profit for the year - - - - - - 2,892,357,853 - 2,892,357,853 2,892,357,853

Other Comprehensive income

Gains/(losses)from investments inequity

(20,449,468) (20,449,468) (20,449,468)
instruments measured at fair value

Gains/(losses) on revaluation - -

Actuarial gains/(losses) on defined benefit plans 11,760,430 11,760,430 11,760,430

Gains/(losses) on cash flow hedge - -

Exch. gains arising from translating financial assets

- -
of foreign operation)

Total comprehensive income - - - - - (20,449,468) 2,892,357,853 11,760,430 2,883,668,815 - 2,883,668,815

Transfer to reserve during the period -

General Reserve Fund - - 561,936,946 - - - (561,936,946) - - -

Exchange Fluctuation Fund - - - 22,033,754 - - (22,033,754) - - -

Client Protection Fund - - - - - - (3,732,900) 3,452,813 (280,087) (280,087)

Corporate Social Responsibility Fund - - - - - - (18,082,958) 17,896,086 (186,872) (186,872)

Regulatory reserve - - - - 111,705,020 - (111,705,020) - - -

Transfer from reserve during the period - -

Training Reserve - - - - - - 1,538,325 (1,538,325) - -

Investment Adjustment Reserve - - - - - - 180,000,000 (180,000,000) - -

Regulatory reserve - - - - (9,888,299) - 9,888,299 - - -

Debenture Redemption Reserve - - - - - - 347,619,047 (347,619,047) - -

Transactions with owners - -

Share Issued

Dividends to equity holders

Bonus shares Issued 1,422,140,132 - - - - - (1,432,225,382) - (10,085,250) (10,085,250)

Cash Dividend Paid - - - - - - (17,504,485) - (17,504,485) (17,504,485)

Others - - - - - - - 22,605,030 22,605,030 22,605,030

Non-Controlling Interest - - - - - - - - - 15,805,287 15,805,287

Balance at Asar end, 2076 10,310,515,959 - 2,564,971,175 121,192,258 590,625,437 (3,199,623) 2,825,449,982 168,081,875 16,577,637,063 132,039,582 16,709,676,645

___________________________ __________________________________ _______________________

Mahesh Sharma Dhakal Chandra Prasad Dhakal Prakash Lamsal, FCA
Acting Chief Executive Officer Chairman Partner
P.L.R.G. Associates
Chartered Accountants
__________________________ __________________________________
Raja Aryal Sudarsun Krishna Shrestha _______________________________
Chief Financial Officer _____________________ Binay Prakash Shrestha, FCA
Suman Pokharel Director Proprietor
_____________________
K.A.S. Associates
Numanath Poudel
1st October 2019 _____________________ Chartered Accountants
Kathmandu Krishna Prasad Sharma

66 GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19

 Bank
Attributable to Equity holders of Bank

General Exchange Regulatory Fair Value Retained Other Total Shareholders'

Share Capital Share Premium Reserve Fund Equalization Fund Reserve Reserve Earning Reserve Funds

Balance as at Shrawan 1, 2075 8,888,375,827 - 1,995,200,610 99,158,504 476,164,212 18,066,509 1,460,832,124 640,880,509 13,578,678,296

Comprehensive Income for the year

Profit for the year 2,761,953,667 2,761,953,667

Other Comprehensive income, net of tax -

Gains/(losses)from investments in equity instruments measured at (20,222,056) (20,222,056)

fair value

Gains/(losses) on revaluation -

Actuarial gains/(losses) on defined benefit plans 11,760,430 11,760,430

Gains/(losses) on cash flow hedge -

Exchange gains/(losses) arising from translating financial assets of -

foreign operation)

Total comprehensive income - - - - - (20,222,056) 2,761,953,667 11,760,430 2,753,492,041

Transfer to reserve during the period

General Reserve Fund 552,390,733 (552,390,733) -

Exchange Fluctuation Fund 22,033,754 (22,033,754) -

Corporate Social Responsibility Fund (17,605,647) 17,605,647 -

Regulatory reserve 84,038,733 (84,038,733) -

Transfer from reserve during the period -

Training Reserve 1,538,325 (1,538,325) -

Investment Adjustment Reserve 180,000,000 (180,000,000) -

Debenture Redemption Reserve 347,619,047 (347,619,047) -

Regulatory reserve (9,888,299) 9,888,299 -

Transactions with owners, directly recognised in equity -

Share Issued

Dividends to equity holders

Bonus shares Issued 1,422,140,132 (1,422,140,132) -

Cash Dividend Paid - -

Balance at Asar end, 2076 10,310,515,959 - 2,547,591,343 121,192,258 550,314,646 (2,155,546) 2,663,622,463 141,089,214 16,332,170,337

___________________________ __________________________________ _______________________

Mahesh Sharma Dhakal Chandra Prasad Dhakal Prakash Lamsal, FCA
Acting Chief Executive Officer Chairman Partner
P.L.R.G. Associates
Chartered Accountants
__________________________ __________________________________
Raja Aryal Sudarsun Krishna Shrestha _______________________________
Chief Financial Officer _____________________ Binay Prakash Shrestha, FCA
Suman Pokharel Director Proprietor
_____________________
K.A.S. Associates
Numanath Poudel
1st October 2019 _____________________ Chartered Accountants
Kathmandu Krishna Prasad Sharma

GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19 67

 CONSOLIDATED STATEMENT OF CASH FLOWS
For period ended 31st Asar 2076 (17 July 2018 to 16 July 2019)
Group Bank
Current Year Previous Year Current Year Previous Year
NPR NPR NPR NPR
CASH FLOW FROM OPERATING ACTIVITIES
Interest Received 12,816,946,062 10,855,555,866 12,449,143,623 10,711,871,217
Fees and Other Income Received 1,268,091,009 1,023,606,717 1,139,112,588 958,208,101
Dividend received - - - -
Receipts from other operating activities 501,483,119 273,211,941 456,353,044 286,272,783
Interest Paid (8,412,545,883) (7,700,972,012) (8,227,758,020) (7,620,952,343)
Commission and Fees Paid (238,738,244) (184,930,110) (216,433,567) (174,778,233)
Cash Payment to Employees (1,478,622,406) (1,256,165,498) (1,380,842,687) (1,192,308,760)
Other Expenses Paid (899,938,023) (802,291,191) (859,409,264) (766,477,133)
Operating cash flows before changes in operating assets and 3,556,675,634 2,208,015,713 3,360,165,717 2,201,835,632
liabilities
(Increase) / Decrease in operating assets
Due from Nepal Rastra Bank (463,077,127) 10,032,861,635 (448,325,653) 10,040,264,135
Placements with Bank and financial institutions 140,000,000 507,266,375 - 563,654,627
Other trading assets (170,264,315) (97,807,111) - -
Loans and advances to bank and financial institutions (34,054,776) (855,947,132) (585,395,363) (1,155,947,132)
Loans and advances to customers (22,032,991,370) (12,003,397,407) (19,893,849,237) (11,356,768,411)
Other assets (1,106,882,263) (3,561,223,324) (1,035,015,050) (3,577,905,240)
(23,667,269,851) (5,978,246,964) (21,962,585,303) (5,486,702,020)
(Increase) / Decrease in operating liabilities
Due to Nepal Rastra Bank 197,151,621 995,272,190 197,151,621 995,272,190
Due to bank and financial institutions 3,642,537,044 178,520,735 2,750,949,772 (79,019,080)
Deposit from customers 15,761,311,577 4,847,005,648 15,237,929,671 4,678,971,122
Borrowings 18,000,000 - - -
Other liabilities 453,258,050 1,618,606,780 461,073,775 4,213,170,636
20,072,258,292 7,639,405,353 18,647,104,839 9,808,394,868
Net cash flow from operating activities before tax paid (38,335,925) 3,869,174,103 44,685,253 6,523,528,479
Income taxes paid (1,242,820,153) (958,574,160) (1,197,890,203) (948,581,803)
Net cash flow from operating activities (1,281,156,078) 2,910,599,943 (1,153,204,950) 5,574,946,676
CASH FLOW FROM INVESTING ACTIVITIES
Purchase of investment securities (21,520,661) (6,239,677,334) (21,520,661) (6,241,399,472)
Receipt from sale of investment securities 3,057,427,099 120,246,891 3,057,427,101 120,246,893
Purchase of property and equipment (287,010,719) (530,215,799) (269,939,533) (524,838,062)
Receipt from sale of property and equipment - - - -
Purchase of intangible assets (10,621,066) (15,236,842) (8,026,203) (15,114,732)
Receipt from sale of intangible assets - - - -
Purchase of investment properties (26,768,385) - (26,768,385) -
Receipt from sale of investment properties - 53,645,060 - 53,645,063
Interest received 806,827,297 459,044,848 780,521,976 424,069,075
Dividend received 39,333,469 23,536,791 35,606,539 21,516,432
Net cash used in investing activities 3,557,667,034 (6,128,656,385) 3,547,300,834 (6,161,874,803)
CASH FLOW FROM FINANCING ACTIVITIES
Receipt from issue of debt securities 1,496,452,596 - 1,496,452,596 -
Repayment of debt securities (400,000,000) - (400,000,000) -
Receipt from issue of subordinated liabilities - - - -
Repayment of subordinated liabilities - - - -
Receipt from issue of shares 77,405,650 100,301,844 - -
Dividend paid (24,013,440) (810,918,631) (628,209) (809,697,352.44)
Interest paid (77,321,924) (30,176,504) (74,000,554) (30,176,504.23)
Other receipt/payment - - - -
Net cash from financing activities 1,072,522,882 (740,793,292) 1,021,823,833 (839,873,857)
Net increase/(decrease) in cash and cash equivalents 3,349,033,838 (3,958,849,734) 3,415,919,717 (1,426,801,985)
Cash and Cash Equivalents as at 1st Shrawan 8,506,651,247 12,375,221,208 8,027,502,157 9,364,024,369
Effect of exchange rate fluctuation on Cash & Cash Equivalents 88,135,015 90,279,773 88,135,015 90,279,773
Cash and Cash Equivalents as at Asar End 11,943,820,100 8,506,651,247 11,531,556,889 8,027,502,157
The accounting policies and notes on pages 69 through 178 form an integral part of the Financial Statements.
___________________________ __________________________________ _______________________
Mahesh Sharma Dhakal Chandra Prasad Dhakal Prakash Lamsal, FCA
Acting Chief Executive Officer Chairman Partner
P.L.R.G. Associates
Chartered Accountants
__________________________ __________________________________
Raja Aryal Sudarsun Krishna Shrestha _______________________________
Chief Financial Officer _____________________ Binay Prakash Shrestha, FCA
Suman Pokharel Director Proprietor
_____________________
K.A.S. Associates
Numanath Poudel
1st October 2019 _____________________ Chartered Accountants
Kathmandu Krishna Prasad Sharma

68 GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19

1. BANK

1.1 Corporate Information offering a broad range of microfinance

products, to the public, who do not have access
Global IME Bank Limited (hereinafter to mainstream financial services. Currently,
referred to as “The Bank”) is a public limited GILBSL is offering services through 63
company, incorporated on 29th May 2006 as branches spread across 45 districts of Nepal.
per the then Companies Act 1964 of Nepal. The microfinance started its operation on
The Bank obtained its operating license from 19th May 2013 from its head office Besisahar,
Nepal Rastra Bank on 31st December 2006. Lamjung.
The registered office of the Bank is located
at Kamaladi, Kathmandu, Nepal. Its ordinary 2. Basis of Preparation
shares are listed on the Nepal Stock Exchange
Limited (the sole stock exchange in Nepal) for The principal accounting policies applied in
public trading. the preparation of these financial statements
are set out below. These policies have been
Global IME Bank Ltd consistently applied to all the years presented,
unless otherwise stated.
The principal activities of the Bank are to provide
commercial banking services including, agency 2.1. Statement of compliance
services, trade finance services, remittance,
card services, e-commerce products and The Financial Statement of Bank which
services to its customers through its strategic comprises of Statement of Financial Position,
business units, branches, extension counters, Statement of Profit or Loss and Statement of
ATMs and network of agents. Other Comprehensive Income shown as two
separate statements, Statement of Changes in
Global IME Capital Ltd Equity, Statement of Cash Flows, Notes to the
Financial Statements have been prepared in
The principal activities of the Global IME accordance with Nepal Financial Reporting
Capital Ltd is to provide merchant banking Standards as issued by the Nepal Accounting
services that include management of public Standard Board and in compliance with the
offerings, portfolio management, registrar requirements of the Companies Act ,2006 and
to shares, underwriting of securities, and directives issued by Nepal Rastra Bank.
fund management of mutual fund schemes,
depository participant's service under Central The formats used in the preparation of the
Depository Service (CDS), corporate advisory Financial Statements and the disclosures made
services and administration and record therein also comply with the specified formats
keeping of securities of its clients. prescribed by the Nepal Rastra Bank for the
preparation, presentation and publication
Global IME Laghubitta Bittiya Sanstha Ltd of Annual Audited Financial Statements of
Commercial Banks.
The principal activities of the Global IME
Laghubitta Bittiya Sanstha Ltd (Previously These NFRSs and NASs are available at www.
Reliable Microfinance Bittiya Sanstha Ltd) ican.org.np.
is to provide the sustainable microfinance
services to the deprived group of people and 2.2. Reporting period and approval of
small entrepreneurs and mostly to the female financial statements
entrepreneurs to help them in developing self-
employment opportunities and various income The Banks reporting period is from 1st Shrawan 2075
generating activities. This microfinance is to 31st Asar 2076 (17 July 2018 to 16 July 2019).

GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19 69

 These financial statements have been approved with the same accounting policies adopted for
by the Board of Directors on 1st October 2019 current financial year.
(14th Ashwin 2076).
2.6. New standards issued but not yet effective
2.3. Functional and presentation currency
Following are the list of new standards issued
Items included in these Financial Statements by International Accounting Standard Board
are measured using the currency of the but not yet effective in Nepal because such
primary economic environment in which the standards are yet to be pronounced by the
Bank operates. These Financial Statements Accounting Standards Board of Nepal:
are presented in Nepalese Rupees, the Bank’s
functional and presentation currency. a. IFRS 9- Financial Instruments

2.4. Use of judgments and estimates b. IFRS 15 Revenue from contracts with
Customers
In preparing the Financial Statements of the
Bank in conformity with NFRSs and NASs, c. IFRS 16 Leases
the management has made judgments,
estimates and assumptions which affect the 2.7. New standards and interpretation not
application of accounting policies and the adopted
reported amounts of assets, liabilities, income
and expenses. Actual results may differ from Standards issued but not yet effective up to the
these estimates. Estimates and underlying date of issuance of the financial statements are
assumptions are reviewed on an ongoing disclosed below. The Bank intends to adopt
basis. Revisions to accounting estimates these standards, if applicable when they
are recognized prospectively. Significant become effective.
areas of critical judgments, assumptions and
estimation uncertainty, in applying accounting i. IFRS 9- Financial Instruments
policies that have most significant effects
on the amounts recognized in the Financial In July 2014, the IASB issued IFRS 9
Statements of the Bank are explained below Financial Instruments, the standard that
separately. will replace IAS 39 for annual periods
on or after 1 January 2018, with early
A. Judgment adoption permitted.

Information about judgments made Classification and Measurement

in applying accounting policies that
have the most significant effects on the From a classification and measurement
amounts recognized in these Financial perspective, the new standard will require
Statements are included in the following all financial assets, except equity instruments
notes. and derivatives, to be assessed based on a
combination of the entity’s business model
2.5. Changes in Accounting Policies for managing the assets and the instruments
contractual cash flow characteristics.
New accounting policies have been followed
after the new accounting standards were issued The IAS 39 measurement categories will
by the Institute of Chartered Accountants of be replaced by: Fair Value through Profit
Nepal which were effective and have been or Loss (FVPL), Fair Value through Other
consistently applied for and after Shrawan 1 Comprehensive Income (FVOCI) and
2075. Corresponding previous year figures amortized cost. IFRS 9 will also allow
too have been re-measured or reclassified entities to continue to irrevocably designate

70 GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19

instruments that qualify for amortized cost or estimated based on the present value of all
fair value through OCI instruments as FVPL, if cash shortfalls over the remaining expected
doing so eliminates or significantly reduces a life of the financial asset, i.e., the difference
measurement or recognition inconsistency. between:
Equity instruments that are not held for
trading may be irrevocably designated as ƒ the contractual cash flows that are due
FVOCI, with no subsequent reclassification of to the Bank under the contract, and
gains or losses to the income statement. ƒ The cash flows that the Bank expects
to receive, discounted at the effective
The accounting for financial liabilities will interest rate of the loan.
largely be the same as the requirements of
IAS 39, except for the treatment of gains or In comparison to IAS 39, the Bank expects
losses arising from an entity’s own credit risk the impairment charge under IFRS 9 to be
relating to liabilities designated at FVPL. Such more volatile than under IAS 39 and to result
movements will be presented in OCI with no in an increase in the total level of current
subsequent reclassification to the income impairment allowances.
statement unless an accounting mismatch in
profit or loss would arise. The brief impairment methodology under
NFRS 9, is set out below:
The bank has adopted NFRS 9 for the
classification of financial assets and liabilities ƒ Stage 1 – Performing loans: when loans
which is in alignment with IFRS 9. The bank are first recognized, the Bank recognizes
has followed incurred loss model as per NAS 39. an allowance based on 12-month
The bank will move from incurred loss model expected credit losses.
to ‘expected loss model’ when the Accounting ƒ Stage 2 – Underperforming loans: when
Standard Board pronounce the full version of a loan shows a significant increase
IFRS 9 in Nepal. in credit risk, the Bank records an
allowance for the lifetime expected
Overview of Impairment on financial assets credit loss.
under IFRS-9 ƒ Stage 3 – Impaired loans: the Bank
recognizes the lifetime expected credit
IFRS 9 will fundamentally change the loan losses for these loans. In addition, in
loss impairment methodology. The standard Stage 3 the Bank accrues interest income
will replace IAS 39’s incurred loss approach on the amortized cost of the loan net of
with a forward-looking expected credit loss allowances.
(ECL) approach. The Bank will be required to
record an allowance for expected losses for all ii. IFRS 15 Revenue from contracts with
loans and other debt financial assets not held Customers
at FVPL, together with loan commitments and
financial guarantee contracts. The allowance In May 2014, the IASB issued IFRS 15
is based on the expected credit losses Revenue from Contracts with Customers,
associated with the probability of default effective for periods beginning on 1
in the next twelve months unless there has January 2018 with early adoption
been a significant increase in credit risk since permitted. This standard is yet to be
origination, in which case, the allowance is pronounced by the Nepal Accounting
based on the probability of default over the life Standard Board. The Bank does not
of the asset. anticipate early adopting IFRS 15 and
no impact has been evaluated.
To calculate ECL, the Bank will estimate the
risk of a default occurring on the financial IFRS 15 defines principles for recognizing
instrument during its expected life. ECLs are revenue and will be applicable to all contracts

GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19 71

 with customers. However, interest and fee income or expenses has been recognized
income integral to financial instruments and on unwinding of the assets and liabilities
leases will continue to fall outside the scope appropriately.
of IFRS 15 and will be regulated by the other
applicable standards 2.9. Going concern basis

Revenue under IFRS 15 will need to be The management has made an assessment
recognized as goods and services are of its ability to continue as a going concern
transferred, to the extent that the transferor and is satisfied that it has the resources to
anticipates entitlement to goods and services. continue its business for the foreseeable
The standard will also specify a comprehensive future. Management is not aware of any
set of disclosure requirements regarding material uncertainties that may cast doubt
the nature, extent and timing as well as any upon the Bank’s ability to continue as a going
uncertainty of revenue and corresponding concern. Therefore, the Financial Statements
cash flows with customers. of the Bank continue to be prepared on going
concern basis.
iii. IFRS 16 Leases
2.10. Estimates and assumptions
The IASB issued the new standard for
accounting for leases - IFRS 16 Leases Information about assumptions and estimates
in January 2016, effective for periods uncertainties that have a significant risk of
beginning from 1st January 2019 with resulting in material adjustments for the year
early adoption permitted. This standard ended 31st Asar 2076 are explained in notes.
is yet to be pronounced by the Nepal
Accounting Standard Board. The Bank 2.11. Fair value of financial instruments
does not anticipate early adoption
of IFRS 16 and no impact has been The determination of fair values of financial
evaluated. assets and financial liabilities recorded on the
Statement of Financial Position, for which there
The new standard does not significantly is no observable market price are determined
change the accounting for leases for lessors. using a variety of valuation techniques that
However, it does require lessees to recognize include the use of mathematical models. The
most leases on their balance sheets as lease Bank measures fair value using the fair value
liabilities, with the corresponding right of- hierarchy that reflects the significance of input
use assets. Lessees must apply a single model used in making measurements.
for all recognized leases, but will have the
option not to recognize ‘short-term’ leases 2.12. Impairment losses on loans and advances
and leases of ‘low-value’ assets. Generally,
the profit or loss recognition pattern for The impairment losses on loans and advances
recognized leases will be similar to today’s has been calculated as per NAS 39 in
finance lease accounting, with interest and accordance with incurred loss model.
depreciation expense recognized separately in
the statement of profit or loss. The Bank has applied the carve out as issued
by Institute of Chartered Accountants of
2.8. Discounting Nepal Note no. 5 “Incurred Loss Model to
measure the Impairment Loss on Loan and
Financial assets and liabilities which are of advances” which gives the option to charge the
long term nature i.e. either receivable/payable impairment amount higher of incurred loss
after more than a year have been discounted model calculation and as per NRB directives.
using the appropriate discount rate which These are explained in detail in Note 4.7.
reflects the market rate of borrowings. Interest

72 GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19

The Bank reviews its individually significant quality (for example, loan to collateral ratio,
loans and advances at each reporting date to level of restructured performing loans),
assess whether an impairment loss should be portfolio size, concentrations and economic
provided in the Statement of Profit or Loss. factors. To estimate the required allowance,
In particular, the management’s judgment is assumptions are made to define how inherent
required in the estimation of the amount and losses are modeled and to determine the
timing of future cash flows when determining required input parameters, based on historical
the impairment loss. These estimates are based experience and current economic conditions.
on assumptions about a number of factors and The accuracy of the provision depends on the
hence, actual results may differ, resulting in model assumptions and parameters used in
future changes to the provisions made. determining the collective provisions.

The individual impairment provision applies 2.13. Impairment of financial investments

to financial assets evaluated individually for measured at fair value
impairment and is based on management’s
best estimate of the present value of the future The Bank also records impairment charges
cash flows that are expected to be received. In on equity investments when there has been
estimating these cash flows, management makes a significant or prolonged decline in the fair
judgments about a borrower’s financial situation value below their cost along with the historical
and the net realizable value of any underlying share price movements, duration and extent
collateral. Each impaired asset is assessed on its up to which the fair value of an investment is
merits, and the workout strategy and estimate of less than its cost.
cash flows considered recoverable.
2.14. Useful lives of property & equipment
A collective impairment provision is
established for: The Bank reviews the residual values, useful
lives and methods of depreciation of property &
ƒ groups of homogeneous loans and equipment at each reporting date. Judgment of
advances that are not considered the management is exercised in the estimation
individually significant; and of these values, rates, methods and hence they
ƒ groups of loans and advances that are are subject to uncertainty. Details useful lives
individually significant but that were of property and equipment are disclosed in
not found to be individually impaired Note 4.38 “Depreciation and Amortization”.

The collective provision for groups of 2.15. Deferred tax assets

homogeneous loans is established using
statistical methods (such as, net flow rate Deferred tax assets are recognized in respect of
methodology, risk migration analysis) or a tax losses to the extent that it is probable that
formula approach based on historical loss rate future taxable profit will be available and can
experience, using the statistical analysis of be utilized against such tax losses. Judgment is
historical data on delinquency to estimate the required to determine the amount of deferred
amount of loss. Management applies judgment tax assets that can be recognized, based upon
to ensure that the estimate of loss arrived the likely timing and level of future taxable
at, on the basis of historical information is profits, together with future tax-planning
appropriately adjusted to reflect the economic strategies.
conditions and portfolio factors as at the
reporting date. The loss rates are regularly 2.16. Defined benefit obligation
reviewed against actual loss experience.
The cost of the defined benefit plans are
In assessing the need for collective impairment, determined using an actuarial valuation.
management considers factors such as credit The actuarial valuation involves making

GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19 73

 assumptions about discount rates, expected realize the assets and settle the liabilities
rates of return on assets, salary escalation simultaneously. Income and expenses are not
rate, withdrawal rate, mortality rates, etc. Due offset in the Statement of Profit or Loss unless
to the long-term nature of these plans, such required or permitted by Nepalese Financial
estimates are subject to significant uncertainty. Reporting Standards or Interpretation (issued
by the International Financial Reporting
2.17. Provisions for liabilities, commitments and Interpretations Committee (IFRIC) and
contingencies Standard Interpretations Committee (SIC))
and as specifically disclosed in the Significant
The Bank may receive legal claims in the Accounting Policies of the Bank.
normal course of business. Management has
made judgments as to the likelihood of any 2.21. Materiality and Aggregation
claim succeeding in making provisions. The
time of concluding legal claims is uncertain, as Each material class of similar items is
is the amount of possible outflow of economic presented separately in the Financial
benefits. Timing and cost ultimately depends Statements. Items of dissimilar nature or
on the due processes in respective legal function are presented separately, unless they
jurisdictions. are immaterial as permitted by the Nepal
Accounting Standard – NAS 1 on ‘Presentation
Information about significant areas of of Financial Statements’.
estimation uncertainty and critical judgments
in applying accounting policies other than Notes to the Financial Statements are
those stated above that have significant effects presented in a systematic manner which
on the amounts recognized in the financial ensures the understandability and
statements are described in Note 4.28. comparability of Financial Statements of
the Bank. Understandability of the Financial
2.18. Functional and presentation currency Statements is not compromised by obscuring
material information with immaterial
Items included in these Financial Statements information or by aggregating material items
are measured using the currency of the that have different natures or functions.
primary economic environment in which the
Bank operates. These Financial Statements 3. Significant Accounting Policies- general
are presented in Nepalese Rupees (NPR), the
Bank’s functional and presentation currency. 3.1. Basis of measurement

2.19. Presentation of financial statements The financial statements have been prepared
under the historical cost convention, except
The assets and liabilities of the bank presented for following material items stated in the
in the Statement of Financial Position are Statement of Financial Position:
grouped by nature and listed in an order that
reflects their relative liquidity and maturity ƒ Fair value and impairment of financial
pattern. instruments
ƒ Defined Benefit Obligation where, net
2.20. Offsetting liability for defined benefit obligations
are recognized as the present value of
Financial assets and financial liabilities the defined benefit obligation, less net
are offset and the net amount reported in total of the plan assets, plus recognized
the Statement of Financial Position, only actuarial gains, less recognized past
when there is a legally enforceable right to service cost and recognized actuarial
offset the recognized amounts and there losses.
is an intention to settle on a net basis or to

74 GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19

3.2. Basis of consolidation bank’s subsidiaries are prepared for the same
reporting year as the bank, using consistent
a. Business Combination accounting policies.

The Group’s Financial Statements comprise d. Loss of Control

consolidation of the Financial Statements of
the Bank and its Subsidiaries in accordance The loss of control of a subsidiary is a
with the Nepal Accounting Standard - NFRS 10 transaction or another event in which a parent
(Consolidated Financial Statements). company sells its controlling interest in
a subsidiary to another party.
The Group measures goodwill as the fair value
of the consideration transferred including the If a parent loses control of a subsidiary, the
recognized amount of any non-controlling parent:
interest in the acquiree less the net recognized
amount (generally fair value) of the identifiable ƒ derecognizes the assets and liabilities
assets acquired and liabilities assumed, all of the former subsidiary from the
measured as of the acquisition date. When Consolidated Statement of Financial
the excess is negative, a bargain purchase gain Position
is recognized immediately in profit or loss, if ƒ recognizes any investment retained in
controlling power is acquired. the former subsidiary when control is
lost and subsequently accounts for it
b. Non-Controlling Interest and for any amounts owed by or to the
former subsidiary in accordance with
Nepal Accounting Standard 27 (NAS 27) relevant IFRSs. That retained interest
defines non-controlling interest as “the equity is remeasured and the remeasured
in a subsidiary not attributable, directly value is regarded as the fair value on
or indirectly, to a parent”. The similar term initial recognition of a financial asset
"minority interest" was previously used in in accordance with NFRS 9 Financial
standards. Non-Controlling Interest (NCI) Instruments or, when appropriate,
refers to ownership of a company which does the cost on initial recognition of an
not give the shareholder the control of the investment in an associate or joint
company. venture.
ƒ recognizes the gain or loss associated
c. Subsidiaries with the loss of control attributable to
the former controlling interest.
Subsidiaries are entities that are controlled
by the bank. The bank is presumed to control e. Transaction elimination on consolidation
an entity when it is exposed or has rights to
variable returns from its involvement with the All the intergroup transactions between
entity and has the ability to affect those returns subsidiary and parent are eliminated on
through its power over the entity. At each preparing consolidated financial statements.
reporting date the Bank reassesses whether
it controls an entity, if facts and circumstances 3.3. Cash and cash equivalents
indicate that there are changes to one or more
elements of control mentioned above. Cash and cash equivalents as referred to in
the cash flow statement comprises of cash
The Financial Statements of subsidiaries are on hand, non–restricted balances with Nepal
fully consolidated from the date on which Rastra Bank, amounts due from financial
control is transferred to the bank and continue institutions and investments with an original
to be consolidated until the date when such maturity of three months or less.
control ceases. The Financial Statements of the

GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19 75

3.4. Financial Instruments- Initial recognition recorded and measured in the statement of
and subsequent measurement financial position at fair value. Changes in fair
value are recognized in net trading income.
3.4.1. Date of recognition Interest and dividend income or expense is
recorded in net trading income according to
Financial Instruments, including loans and the terms of the contract, or when the right to
advances to customers and balances due payment has been established.
from customers, are initially recognized on
the trade date, i.e., the date that the Bank 3.4.3. Financial instruments measured at
becomes a party to the contractual provisions amortized cost
of the instrument. This includes regular way
trades: purchases or sales of financial assets Financial instruments are measured at
that require delivery of assets within the time amortized cost where they have:
frame generally established by regulation or
convention in the market place. ƒ contractual terms that give rise to cash
flows on specified dates, that represent
Initial measurement of financial solely payments of principal and interest
instruments on the principal amount outstanding;
and
The classification of financial instruments at ƒ are held within a business model whose
initial recognition depends on their purpose objective is achieved by holding to
and characteristics and the management’s collect contractual cash flows.
intention when acquiring them. All financial
instruments are measured initially at their These financial instruments are initially
fair value plus transaction costs, except in the recognized at fair value plus directly attributable
case of financial assets and financial liabilities transaction costs and subsequently measured
recorded at fair value through profit or loss. at amortized cost using the Effective Interest
Rate (EIR) less impairment. The measurement
3.4.2. Classification of Financial assets or of credit impairment is based on the incurred
liabilities loss model described below in Note 3.6
Impairment of financial assets.
The Bank classifies its financial assets into the
following measurement categories: Financial instruments measured at amortized
cost are included in Note 4.1 “Cash and cash
ƒ those to be measured at fair value equivalents”, Note 4.2 “Due from Nepal Rastra
(either through other comprehensive Bank”, Note 4.3 “Placements with Bank
income or through profit or loss); and and Financial Institutions” Note 4.6 “Loans
ƒ those to be measured at amortized cost. and advances to BFIs”, Note 4.7 “Loans and
advances to customers”, Note 4.8 “Investment
The classification depends on the Bank’s securities”.
business model for managing financial assets
and the contractual terms of the financial 3.4.4. Financial instruments measured at fair
assets' cash flows. value through other comprehensive income

The Bank classifies its financial liabilities a. Debt Instruments

at amortized cost unless it has designated
liabilities at fair value through profit or loss or Investments in debt instruments are measured
is required to measure liabilities at fair value at fair value through other comprehensive
through profit or loss. income when they have:

Held for trading assets and liabilities are ƒ contractual terms that give rise to cash flows

76 GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19

 on specified dates, that represent solely Financial instruments measured at fair value
payments of principal and interest on the through profit or loss are initially recognized
principal amount outstanding; and at fair value, with transaction costs recognized
ƒ are held within a business model whose objective in the income statement as incurred.
is achieved by both collecting contractual cash Subsequently, they are measured at fair value
flows and selling financial assets. and any gains or losses are recognized in the
income statement as they arise
These debt instruments are initially recognized
at fair value plus directly attributable a. Financial instruments held for trading
transaction costs and subsequently measured
at fair value. Gains and losses arising from A financial instrument is classified as held for
changes in fair value are included in other trading if it is acquired or incurred principally
comprehensive income within a separate for the purpose of selling or repurchasing in
component of equity. Impairment losses the near term, or forms part of a portfolio
or reversals, interest revenue and foreign of financial instruments that are managed
exchange gains and losses are recognized in together and for which there is evidence of
profit and loss. Upon disposal, the cumulative short-term profit taking, or it is a derivative.
gain or loss previously recognized in other
comprehensive income is reclassified from b. Financial instruments designated as measured
equity to the income statement. at fair value through profit or loss

b. Equity Instruments Upon initial recognition, financial instruments

may be designated as measured at fair value
Investment in equity instruments that are not through profit or loss. A financial asset may
held for trading are measured at fair value only be designated at fair value through profit
through other comprehensive income, where or loss if doing so eliminates or significantly
an irrevocable election has been made by reduces measurement or recognition
management. inconsistencies (i.e. eliminates an accounting
mismatch) that would otherwise arise from
Amounts presented in other comprehensive measuring financial assets or liabilities on a
income are not subsequently transferred to different basis.
profit or loss. Dividends on such investments
are recognized in profit or loss unless the
dividend clearly represents a recovery of part
of the cost of the investment.

3.4.5. Financial instruments measured at fair

value through profit or loss

Instruments measured at fair value through

profit or loss comprise:

ƒ Instruments held for trading

ƒ Instruments specifically designated as
fair value through profit or loss on initial
recognition; and
ƒ Debt instruments with contractual terms that
do not represent solely payments of principal
and interest.

GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19 77

Classes of Financial Instruments
The bank classifies the financial instruments into the following classes as per NFRS 9.

Classification as defined by Assets/

Sub Class
NFRS 9 Liabilities
Financial Assets Held Debt Securities NO
Financial Assets for Trading Equity Securities NO
at Fair Value
Through Profit Designated at fair Debt Securities NO
or Loss value through profit
and loss Equity Securities NO
Loans and Advances to Financial Institutions YES
Overdrafts YES
Loans to Credit Cards YES
Individuals Term Loans YES
Mortgage Loans YES
Financial Loans and Advances
Financial Assets to Customers Large
Assets
at Amortized Loans to Corporate YES
Cost Corporate Customers
Entities SMEs YES
Others YES
Listed NO
Investment Securities –Debt
Unlisted NO
Other Receivables YES

Financial Assets Investment Securities -Debt Listed NO

at Fair Value Listed YES
through OCI Investment Securities -Equity
Unlisted YES

Financial Liabilities Financial Liabilities Held for Trading NO

At Fair Value NO
Through Profit or Designated at fair value through profit and loss
Loss
Deposits from Banks YES
Financial Retail Customers YES
Liabilities Corporate Customers YES
Deposits from
Financial Liabilities Customers SMEs YES
at Amortized Cost
Others YES
Debt Securities Issued YES
Other Financial Liabilities YES
Off- Balance Loan Commitments YES
Sheet
Financial YES
Guarantees, Acceptance and Other Financial Liabilities
Instruments

78 GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19

3.4.6. Determination of fair value that are comparable to the valued instrument.
However, if such adjustments are based on
‘Fair value’ is the price that would be received unobservable inputs which are significant to
to sell an asset or paid to transfer a liability the entire measurement, the Bank will classify
(exit price) in an orderly transaction between the instruments as Level 3.
market participants at the measurement date.
The fair value measurement is based on the ƒ Level 3 – financial instruments –
presumption that the transaction to sell the
asset or transfer the liability takes place either: Those that include one or more unobservable
input that is significant to the measurement as
ƒ In the principal market for the asset or a whole
liability or
ƒ In the absence of principal market, in The bank evaluates the leveling at each
the most advantageous market for asset reporting period on an instrument-by-
or liability. instrument basis and reclassifies instruments
when necessary based on the facts at the
All assets and liabilities for which fair value end of the reporting period. The bank also
is measured or disclosed in the financial considers the following in measuring the fair
statements are categorized within the fair value of financial assets.
value hierarchy, described as follows, based on
the lowest level input that is significant to the a. Effective interest rate
fair value measurement as a whole:
The effective interest rate (EIR) is the rate
ƒ Level 1 - financial instruments – that exactly discounts estimated future cash
payments or receipts through the expected
Those where the inputs used in the valuation life of the financial instrument or, when
are unadjusted quoted prices from active appropriate at a shorter period, to the net
markets for identical assets or liabilities that carrying amount of the financial asset or
the Bank has access to at the measurement financial liability. The amortized cost of the
date. The bank considers markets as active financial asset or financial liability is adjusted
only if there are sufficient trading activities if the Bank revises its estimates of payments
with regards to the volume and liquidity of or receipts. The adjusted amortized cost is
the identical assets or liabilities and when calculated based on the original or latest re-
there are binding and exercisable price quotes estimated EIR and the change is recorded
available on the balance sheet date. as ‘Interest income’ for financial assets and
‘Interest expense’ for financial liabilities. The
ƒ Level 2 - financial instruments – accounting policies for the EIR method vary
by instruments and are further explained in
Those where the inputs that are used for Notes:
valuation are significant, are derived from
directly or indirectly observable market ƒ for ‘Financial Assets Measured at
data available over the entire period of the Amortized Cost'
instrument’s life. Such inputs include quoted ƒ for ‘Financial assets measured at fair
prices for similar assets or liabilities in value through other comprehensive
active markets, quoted prices for identical income ’
instruments in inactive markets and observable ƒ for ‘Financial assets measured at fair
inputs other than quoted prices such as interest value through other profit or loss ’
rates and yield curves, implied volatilities, and ƒ for ‘Due from banks and loans and
credit spreads. In addition, adjustments may advances to customers’
be required for the condition or location of the ƒ for ‘Debt securities issued and other
asset or the extent to which it relates to items borrowed funds’

GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19 79

b. Day 1 profit or loss control to be transferred if, and only if, the
transferee has the practical ability to sell
When the transaction price differs from the the asset in its entirety to an unrelated third
fair value of other observable current market party and is able to exercise that ability
transactions in the same instrument, or based on unilaterally and without needing to impose
a valuation technique with the variables including additional restrictions on the transfer. The
only data from observable markets, the Bank bank also derecognizes a financial asset, in
immediately recognizes the difference between the particular, a loan to customer when the terms
transaction price and fair value (a Day 1 profit or and conditions have been renegotiated to the
loss) in net trading income. In cases where fair value extent that it substantially became a new loan,
is determined using data which is not observable, with the difference recognized as impairment
the difference between the transaction price and in the income statement.
model value is only recognized in the income
statement when the inputs become observable, or b. Financial Liabilities
when the instrument is derecognized.
A financial liability is derecognized when the
3.4.7. De recognition of financial assets and obligation under the liability is discharged,
liabilities cancelled or expires. Where an existing
financial liability is replaced by another from
a. Financial Assets the same lender on substantially different
terms, or the terms of an existing liability are
A financial asset (or, where applicable a part substantially modified, such an exchange or
of a financial asset or part of a group of similar modification is treated as de recognition of the
financial assets) is derecognized when the original liability and the recognition of a new
rights to receive cash flows from the asset liability. The difference between the carrying
have expired. The Bank also derecognizes the value of the original financial liability and the
assets if it has both transferred the asset, and consideration paid is recognized in profit or
the transfer qualifies for de recognition. loss.

The bank has transferred the asset if and only 3.4.8. reclassification of Financial Instruments
if, either:
The bank may choose to reclassify its financial
ƒ The bank has transferred its contractual assets when and only when, an entity changes
rights to receive cash flows from the its business model for managing financial
asset; Or assets. When the entity changes its business
ƒ It retains the rights to the cash flows, model all the affected financial assets are
but has assumed an obligation to pay reclassified in accordance with Note 3.3.
the received cash flows in full without Financial assets measured at fair value through
material delay to a third party under a profit or loss will not be reclassified to other
‘pass–through’ arrangement. category.

A transfer only qualifies for de recognition if either: Reclassifications are made at fair value as of
the reclassification date. Fair value becomes
ƒ The bank has transferred substantially the new cost or amortized cost as applicable,
all the risks and rewards of the asset; or and no reversals of fair value gains or losses
ƒ The bank has neither transferred nor recorded before reclassification date are
retained substantially all the risks and subsequently made. Effective interest rates for
rewards of the asset, but has transferred financial assets reclassified to financial assets
control of the asset. measured at amortized cost are determined
at the reclassification date. Further increases
In relation to the above, bank considers the in estimates of cash flows adjust effective

80 GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19

 interest rates prospectively. financial assets carried at amortized cost, such
as amounts due from banks, held to maturity
The Bank has not made any reclassification among investments comprises:
its financial assets from the initial recognition.
A. Specific impairment losses for
3.4.9. Impairment of financial assets individually significant or specifically
identified exposures
The bank assesses at the end of each reporting
period whether there is any objective evidence B. Collective impairment of:
that a financial asset or group of financial
assets has impaired. A financial asset or group i. Individually not significant exposures
of financial assets is impaired and impairment
losses are incurred if, and only if, there is an ii. Incurred but not yet identified losses
objective evidence of impairment as a result
of one or more events that has occurred after A. Specific impairment losses for individually
the initial recognition of the asset (an incurred significant or specifically identified
‘loss event’) and that loss event (or events) has exposures
an impact on the estimated future cash flows
of the financial asset or group of financial It is the Bank’s policy to regularly monitor
assets that can be reliably estimated. its loan portfolio. For retail and consumer
lending, a specific assessment is made on an
Objective evidence that financial assets are individual basis for loans that are 180 days
impaired can include: past due. For the corporate and small business
portfolio impairment indicators include:
ƒ significant financial difficulty of the
obligor ƒ internal rating of the borrower
ƒ default or delinquency by a borrower indicating default or near-default,
ƒ breach of loan covenants or conditions, ƒ the borrower requesting emergency
restructuring of a loan or advance funding from the Bank;
ƒ indications that a borrower or issuer ƒ the borrower having past due liabilities
will enter bankruptcy, to public creditors or employees;
ƒ the disappearance of an active market ƒ a material decrease in the underlying
for a security, collateral value where the sale of the
ƒ deterioration in the value of collateral, financed asset is required to repay the
ƒ or other observable data relating to a loan;
group of assets such as adverse changes ƒ a material decrease in the borrower’s
in the payment status of borrowers in turnover or the loss of a major customer;
the group, or economic conditions that ƒ a material decrease in estimated future
correlate with defaults in the group. cash flows;
ƒ any material facility at the debtor level
In the case of equity investments classified as falling beyond 90 past due;
available for-sale, objective evidence would ƒ a covenant breach not waived by the
additionally include a significant or prolonged Bank.
decline in the fair value of the instrument below
its cost. The bank deems more than 20% decline If there is objective evidence that an
below cost as “significant” and a decline for impairment loss has been incurred, the amount
more than 6 months as “prolonged”. of the loss is measured as the difference
between the assets carrying amount and the
i. Financial assets carried at amortized cost present value of estimated future cash flows
(excluding future expected credit losses that
The bank’s impairment methodology for have not yet been incurred). The carrying

GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19 81

 amount of the asset is reduced through the use For financial assets carried at fair value
of an allowance account and the amount of the through profit or loss, the bank assesses at
loss is recognized in “Impairment charges for each reporting date, whether there is objective
Loans” in the income statement. evidence that an investment has impaired.

Loans and advances together with the In the case of debt instruments classified as
associated allowances are written off when at fair value through profit or loss, the bank
there is no realistic prospect of future recovery assesses individually whether there is objective
and all collateral has been realized or has been evidence of impairment regarding a decline
transferred to the Bank. If, in a subsequent in estimated future cash-flows impacting the
year, the amount of the estimated impairment bank’s ability to recover all cash flows. In case
loss increases or decreases because of an of equity instruments changes in fair values are
event occurring after the impairment was charged to statement of profit or loss.
recognized, the previously recognized
impairment loss is increased or reduced (but iii. Financial assets carried at fair value
only up to the extent of the carrying amount through other comprehensive income
had the impairment not been recognized ) by
adjusting the allowance account. If a future For financial assets carried at fair value through
write–off is later recovered, the recovery is other comprehensive income, the bank assesses
credited to the “Loan Impairment allowance”. at each reporting date, whether there is objective
evidence that an investment has impaired.
B. Collective Impairment
In the case of debt instruments classified as
For the purposes of a collective evaluation of at fair value through other comprehensive
impairment, financial assets are grouped on the income, the following amortized cost
basis of similar credit risk characteristics (that information is presented in profit or loss:
is, on the basis of the product characteristics,
industry, past-due status and other relevant ƒ Interest revenue is calculated using
factors). Those characteristics are relevant to the effective interest method that is
the estimation of future cash flows for groups applied to financial assets measured at
of such assets by being indicative of the debtors’ amortized cost
ability to pay all amounts due according to the ƒ Foreign exchange gains and losses on
contractual terms of the assets being evaluated. the amortized cost are recognized in
profit or loss
Collective impairment losses reflect impairment ƒ Impairment gains and losses are derived
losses that have been incurred in the performing using the same methodology that is
portfolio but have not yet been identified by applied to financial assets measured at
either the specific or collective assessment. amortized cost
These loans, similar to the ‘individually not
significant’ exposures, are grouped into smaller The fair value gains and losses on these
homogenous portfolios by risk drivers. The financial assets are recognized in other
methodology combines probability of default comprehensive income. When these financial
(PD), exposure at the time of default (EAD) and assets are derecognized, the cumulative gains
loss given default (LGD) over the loss emergence and losses previously recognized in other
period (the period between the loss event and comprehensive income are not reclassified
the impairment being identified). The loss (i.e., ‘recycled’) from equity to profit or loss as
emergence period is determined and regularly a reclassification adjustment.
monitored by the Bank for each portfolio.
For equity instruments where the initial
ii. Financial assets carried at fair value irrevocable option has been taken to measure the
through profit or loss equity instruments at fair value through other

82 GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19

 comprehensive income, all changes in fair value as a separate asset, as appropriate, only
are recognized in other comprehensive income. when it is probable that future economic
benefits associated with the item will flow
Dividends received are recognized in the to the bank and the cost of the item can be
statement of profit or loss. When these financial measured reliably. The carrying amount of
assets are derecognized, the cumulative gains the replaced part is derecognized. All other
and losses previously recognized in other repair and maintenance costs are charged to
comprehensive income are not reclassified other operating expenses during the financial
from equity to profit or loss. period in which they are incurred.

3.5. Trading Assets Depreciation on freehold land has not been

calculated. Depreciation on other property and
A financial instrument is classified as trading equipment is calculated using the straight–line
assets if it is acquired or incurred principally method to allocate their cost to their residual
for the purpose of selling or repurchasing in values over their estimated useful lives. The
the near term, or forms part of a portfolio estimated useful lives are included in Note
of financial instruments that are managed 4.38 “Depreciation and Amortization”
together and for which there is evidence of
short-term profit taking, or it is a derivative. 3.8. Goodwill and Intangible assets

3.6. Derivative assets and derivative liabilities An intangible asset is recognized only when
its cost can be measured reliably and it is
Derivatives are financial instruments that probable that the expected future economic
derive their value in response to changes benefits that are attributable to it will flow to
in interest rates, financial instrument the bank.
prices, foreign exchange rates. Derivatives
are categorized as trading unless they are Intangible assets acquired separately are
designated as hedging instruments. All measured on initial recognition at cost. The
derivatives are initially recognized and cost of intangible assets acquired in a business
subsequently measured at fair value, with combination is their fair value as at the date
all revaluation gains recognized in income of acquisition. Following initial recognition,
statement. Fair value is based on the quoted intangible assets are carried at cost less
market price, quotes from brokers or dealers, any accumulated amortization and any
or estimates based upon discounted expected accumulated impairment losses. The useful
cash flows as appropriate. All derivatives are lives of intangible assets are assessed to be
carried as assets when fair value is positive either finite or indefinite.
and as liabilities when fair value is negative.
3.9. Investment Property
3.7. Property and Equipment
Non-Banking Assets which are acquired as part
Property and equipment is stated at cost of recovery of loans are classified as investment
excluding the costs of day–to–day servicing less property and are carried at cost i.e. acquired
accumulated depreciation and accumulated value. The Bank’s policy is to determine
impairment in value. Changes in the expected whether a repossessed asset can be best used
useful life are accounted for by changing for its internal operations or should be sold.
the amortization period or methodology, Assets determined to be useful for the internal
as appropriate, and treated as changes in operations are transferred to their relevant
accounting estimates. asset category at the repossessed value. Land
and Building of repossessed collateral are
Subsequent expenditures are included in the classified as investment property. Assets for
asset’s carrying amount or are recognized which selling is determined to be a better

GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19 83

 option are transferred to assets held for sale at reviewed at each reporting date and reduced
their fair value or fair value less cost to sell for to the extent that it is no longer probable that
non-financial assets at the repossession date sufficient taxable profit will be available to
in line with the bank’s policy. allow all or part of the deferred tax asset to
be utilized. Unrecognized deferred tax assets
3.10. Income tax are reassessed at each reporting date and
are recognized to the extent that it becomes
iv. Current tax probable that future taxable profit will allow
the deferred tax asset to be recovered.
Current tax assets and liabilities for the
current and prior years are measured at the Deferred tax assets and liabilities are measured
amount expected to be recovered from, or at the tax rates that are expected to apply
paid to, the taxation authorities. The tax rates in the year when the asset is realized or the
and tax laws used to compute the amount are liability is settled, based on tax rates (and tax
rates applicable as per income tax act 2058. laws) that have been enacted or substantively
enacted at the reporting date.
Current income tax relating to items
recognized directly in equity is recognized Current and deferred taxes are recognized
in equity and not in the statement of profit as income tax benefits or expenses in the
or loss. Management periodically evaluates income statement except for tax related to the
positions taken in the tax returns with fair value re measurement of available-for-
respect to situations in which applicable tax sale assets, actuarial gains/losses, which are
regulations are subject to interpretation and charged or credited to Other Comprehensive
establishes provisions where appropriate. Income. These exceptions are subsequently
reclassified from Other Comprehensive
v. Deferred tax Income to the income statement together with
the respective deferred loss or gain.
Deferred tax is provided on temporary
differences at the reporting date between the tax The bank only off-sets its deferred tax assets
bases of assets and liabilities and their carrying against liabilities when there is both a legal
amounts for financial reporting purposes. right to offset and it is the Bank’s intention to
settle on a net basis.
Deferred tax liabilities are recognized for all
taxable temporary differences, except: 3.11. Deposits, debt securities issued and
subordinated liabilities
ƒ Where the deferred tax liability arises
from the initial recognition of goodwill Deposit from customers are the deposits
or of an asset or liability in a transaction accepted by bank from the individuals,
that is not a business combination and, corporate entities and other organized
at the time of the transaction, affects institutions. These deposits are in the form of
neither the accounting profit nor taxable saving, time, call, margin and demand. Deposit
profit or loss from customers are recognized when the funds
ƒ In respect of taxable temporary reaches to the banks. These are measured at
differences associated with investments amortized cost using the effective interest rate.
in subsidiaries, where the timing of the
reversal of the temporary differences Financial instruments issued by the bank that
can be controlled and it is probable are not held for trading or designated at FVTPL,
that the temporary differences will not are classified as liabilities under ‘Debt securities
reverse in the foreseeable future issued’ where the substance of the contractual
arrangement results in the Bank having an
The carrying amount of deferred tax assets is obligation either to deliver cash or another

84 GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19

 financial asset to the holder, or to satisfy the c. Dividend Income
obligation other than by the exchange of a fixed
amount of cash or another financial asset for a Dividend income from assets is recognized
fixed number of own equity shares. when the bank’s right to receive the payment
is established.
After initial measurement, deposits, debt
issued and other borrowings are subsequently d. Net trading Income
measured at amortized cost using the EIR.
Amortized cost is calculated by taking into All the gain/loss arising from change in fair
account any discount or premium on the issue value are recognized as net trading income.
and costs that are an integral part of the EIR.
e. Net income from other financial instrument at
3.12. Provisions fair value through Profit or Loss

Provisions are recognized when the Bank has Changes in fair value for the financial
a present obligation (legal or constructive) instruments measured at fair value through
as a result of past events, and it is probable profit or loss are recognized as net income
that an outflow of resources embodying from other financial instruments at FVTPL.
economic benefits will be required to settle
the obligation, and a reliable estimate can 3.14. Interest Expense
be made of the amount of the obligation.
When the effect of the time value of money Interest expense is recorded using the effective
is material, the Bank determines the level of interest rate (EIR) method. EIR is the rate
provision by discounting the expected cash that exactly discounts estimated future cash
flows at a pre-tax rate reflecting the current payments or receipts through the expected life
rates specific to the liability. The expense of the financial instrument or a shorter period,
relating to any provision is presented in the where appropriate, to the net carrying amount
income statement net of any reimbursement of the financial liability.
in other operating expenses.
3.15. Employee Benefits
3.13. Revenue Recognition
a. Short Term Employee Benefits
a. Interest Income
Short term employee benefit obligations are
Interest income is booked on accrual basis measured on an undiscounted basis and are
using the effective interest rate (EIR) method. expensed as the related service is provided.
EIR is the rate that exactly discounts estimated Benefits includes salaries, allowances,
future cash payments or receipts through the provident fund and annual staff bonus.
expected life of the financial instrument or a
shorter period, where appropriate, to the net b. Long term Employee Benefits
carrying amount of the financial asset.
Long term employee benefit obligations are
b. Fees and Commission Income measured on discounted basis using the
actuarial valuation and are expensed over
Fees and commission income earned from the service period of the employees. These
services that are provided over a certain benefits are gratuity and leave encashment
period of time which includes fees and which are settled at the time of resignation
commission collected from issuance of letter of staff or completion of service period of the
of credit, guarantees, and card related fees are employee.
recognized on time proportion basis.

GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19 85

3.16. Leases fair value was determined.

The determination of whether an arrangement The foreign currency gain or loss on monetary
is a lease, or contains a lease, is based on the assets and liabilities is the difference between
substance of the arrangement and requires amortized costs in the functional currency
an assessment of whether the fulfillment of at the beginning of the period, adjusted for
the arrangement is dependent on the use interest accrued using the effective interest
of a specific asset or assets or whether the rate and payments during the period, and the
arrangement conveys a right to use the asset. amortized cost in foreign currency translated
at the exchange rate at the end of the period.
Bank as a lessee
Foreign exchange differences arising on
Leases that do not transfer to the bank translations are recognized in profit or loss,
substantially the entire risks and benefits except for differences arising on translation
incidental to ownership of the leased items are on equity instruments measured at FVTOCI
operating leases. Operating lease payments unless the difference is due to impairment in
are recognized as an expense in the income which case foreign currency differences that
statement on a straight-line basis over the lease have been recognized in other comprehensive
term. Contingent rental payable is recognized income are reclassified to profit or loss.
as an expense in the period in which they it is
incurred. All foreign exchange gains and losses
recognized in the income statement are
3.17. Foreign currency translation presented on net basis in the statement of
profit or loss within the corresponding item.
a. Functional and presentation currency Foreign exchange gains and losses on other
comprehensive income items are presented
Items included in the financial statements in other comprehensive income within the
of each of the Bank’s entities are measured corresponding item.
using the currency of the primary economic
environment in which the entity operates (‘the As at 31st Asar 2076, the principal rates of
functional currency’).The financial statements exchange used for translating foreign currency
are presented in Nepalese Rupees, which is balance is NPR 109.85 to USD 1 (32nd Asar
the Bank’s presentation currency. 2075: NPR 109.70 to USD 1 )

b. Transactions and balances 3.18. Financial Guarantee and loan commitment

Transactions in foreign currencies are In the ordinary course of business, the bank
translated to the functional currency of the issues financial guarantees, consisting of
relevant Bank entity at the foreign exchange letters of credit, guarantees and acceptances.
rate at the date of the transaction. Financial guarantees are initially recognized
in the financial statements at fair value, being
Monetary assets and liabilities denominated the premium received. The premium received
in foreign currencies are translated to the is recognized in the income statement in net
functional currency at the foreign exchange fees and commission income on a straight line
rates at the respective reporting date. Non- basis over the life of the guarantee.
monetary items that are measured at historical
cost in a foreign currency are translated using 3.19. Share Capital and Reserves
the exchange rates as at the dates of the initial
transactions. Non-monetary items measured Share capital is increased when dividends in
at fair value in a foreign currency are translated form of scrip are paid to the shareholders.
using the exchange rates at the date when the Proposed bonus shares are not shown as

86 GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19

 increment to share capital until approval by is required, the bank estimates the asset’s
annual general meeting. recoverable amount. An asset’s recoverable
amount is the higher of an asset’s or Cash
Reserves are the accumulation of profit Generating Unit’s fair value less costs to
over the years which comprises of statutory sell and its value in use. Where the carrying
reserves and regulatory reserve created amount of an asset or Cash Generating Unit
with the direction of Nepal Rastra Bank and exceeds its recoverable amount, the asset is
the retained earnings after the allocation of considered impaired and is written down to
statutory reserve and distribution of dividend its recoverable amount.
to shareholders.
In assessing value in use, the estimated future
3.20. Earnings per share including diluted cash flows are discounted to their present
value using a pre–tax discount rate that
The Bank presents basic and diluted Earnings reflects current market assessments of the
per Share (EPS) data for its ordinary shares. time value of money and the risks specific to
Basic EPS is calculated by dividing the profit the asset. In determining fair value less costs
or loss attributable to ordinary equity of to sell, an appropriate valuation model is used.
the Bank by the weighted average number
of ordinary shares outstanding during For assets excluding goodwill, an assessment
the period. Diluted EPS is determined by is made at each reporting date as to whether
adjusting both the profit attributable to there is any indication that previously
the ordinary equity share holders and the recognized impairment losses may no longer
weighted average number of ordinary shares exist or may have decreased. If such indication
outstanding, for the effects of all dilutive exists, the bank estimates the asset’s or CGU’s
potential ordinary shares, if any. recoverable amount. A previously recognized
impairment loss is reversed only if there has
3.21. Segment Reporting been a change in the assumptions used to
determine the asset’s recoverable amount
An operating segment is a component of since the last impairment loss was recognized.
the Bank that engages in business activities The reversal is limited so that the carrying
from which it may earn revenue and incur amount of the asset does not exceed its
expenses, including revenue and expenses recoverable amount, nor exceeds the carrying
that relate to transactions with any of the amount that would have been determined,
Bank’s other components, whose operating net of depreciation, had no impairment loss
results are reviewed regularly by the chief been recognized for the asset in prior years.
operating decision maker to make decisions Such reversal is recognized in the income
about resources allocated to each segment statement.
and assess its performance, and for which
discrete financial information is available. For 3.23. Loans and advances to customers
management purpose, the bank has identified
seven province as operating segments. The Loans and advances to customers include
detail disclosure regarding segment reporting non-derivative financial assets with fixed or
are reported in Notes 5.4. determinable payments and are solely for the
purpose of collecting contractual cash flows
3.22. Impairment of non-financial assets and are not quoted in an active market and are
measured at amortized cost using the effective
The bank assesses at each reporting date interest rate (EIR) method less allowance for
whether there is an indication that an asset impairment. Amortized cost is not calculated
may be impaired. If any indication exists, or by taking into account of any discounts/
when annual impairment testing for an asset premium, fees and costs on acquisition.

GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19 87

Restructured loans price indices, audited financial statements, and
other independent sources.
In order to maximize collection opportunities
and minimize the number of defaults, bank 3.25. Investment in subsidiary
renegotiates loans to customers in financial
difficulties. Loan restructure can be granted if Subsidiaries are entities that are controlled
the borrower is currently in default or if there by the bank. The bank is presumed to control
is a high risk of default, there is evidence that an entity when it is exposed or has rights to
the borrower made all efforts to pay according variable returns from its involvement with the
to the original contractual terms and it is entity and has the ability to affect those returns
expected that the borrower is able to meet the through its power over the entity. At each
revised terms. Revised terms could be extended reporting date the Bank reassesses whether
maturity, changing the timing of interest it controls an entity if facts and circumstances
payments, interest reduction or forgiveness etc. indicate that there are changes to one or more
elements of control mentioned above.
Loans subject to restructuring are generally
not derecognized and are considered for The Financial Statements of subsidiaries are
impairment based on renegotiated conditions. fully consolidated from the date on which
However, in certain cases when the renegotiation control is transferred to the bank and continue
is qualitatively assessed as a substantial to be consolidated until the date when such
extinguishment of the rights to collect the cash control ceases. The Financial Statements of
flows due to material changes in the timing the bank’s subsidiaries are prepared for the
and the amount of the cash flows, the loan same reporting year as per the bank, using
is derecognized and the renegotiated loan is consistent accounting policies.
recognized as a new loan measured at fair value.
3.26. Investment in Associates
3.24. Collateral valuation
An associate is an entity over which the Bank
The bank seeks to use collateral, where has significant influence but not control.
possible, to mitigate its risks on financial assets. Significant influence is the power to participate
The collateral comes in various forms such as in the financial and operating policy decisions
cash, securities, letters of credit/guarantees, of the investee but does not have control or
real estate, receivables, inventories, other joint control over these policies. The Bank's
non-financial assets and credit enhancements investments in associates, are accounted at
such as netting agreements. The fair value of cost as per NAS 28 “Investment in Associates
collateral is generally assessed, at a minimum, and Joint Ventures” and with the principles of
at inception and based on the Bank’s annual NAS 27 “Separate Financial Statements” and
reporting schedule. However, some collateral, the carve out issued by Institute of Chartered
for example, cash or securities relating to Accountants of Nepal. The carve out gives
margining requirements, is valued daily. the exemptions for equity accounting under
consolidated financial statements where the
To the extent possible, the bank uses active market financial statements of associates are not
data for valuing financial assets held as collateral. prepared using uniform accounting policy of
Other financial assets which do not have readily the bank. Equity accounting is based on the
determinable market values are valued using profit reported by associate entities on their
models. Non-financial collateral, such as real financial statements using the policy disclosed
estate, is valued based on data provided by third in the financial statements.
parties such as valuators, government published

88 GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19

3.27. Dividend on ordinary shares customers are not included in calculating the
effective interest rate. Those costs and fees are
Dividend on ordinary shares are recognized not of material item and the effect of these will
as a liability and deducted from equity when not materially differ in the original effective
they are approved by the Bank’s shareholders, interest rate and re-calculated effective
through annual general meeting. Dividends interest rate. This carve out applies for FY
for the year that are approved after the 2017-18 and FY 2018-19.
reporting date are disclosed as an event after
the reporting date. ii. Incurred loss model to measure the
Impairment Loss on Loans and advances.
3.28. Cash Flow Statement
Bank has applied carve out which mandate for
The cash flow statement has been prepared providing loss allowance for loans and advances as
using ‘The Direct Method’, whereby gross cash per the directive issued by Nepal Rastra Bank.
receipts and gross cash payments of operating
activities, finance activities and investing
activities have been recognized.

3.29. Carve out taken by Bank from Carve

out issued by Institute of Chartered
Accountants of Nepal

i. Calculation of Effective Interest rate

Transaction cost and fees incurred and

received in obtaining deposits and lending to

GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19 89

4.1 CASH AND CASH EQUIVALENT
Cash and cash equivalents include cash in hand, balance with local and foreign financial institution and
money at call and short notice. Cash and cash equivalents are carried at amortised cost in the Statement
of Financial Position.
Bank has classified financial investments with original maturities of less than three months as cash and
cash equivalents. These investments are investments in treasury bills and placements with local financial
institutions and foreign financial institutions which are considered highly liquid and held for the purpose of
managing short term commitments of the Bank. Interest accrued on these cash and cash equivalents are also
included in cash and cash equivalents.
Amount in NPR

Group Bank
Current Year Previous Year Current Year Previous Year
-cash in hand 3,049,801,775 2,683,396,500 3,049,613,781 2,683,115,945
-balance with financial
1,664,565,459 1,613,950,476 1,272,490,242 1,135,081,941
institution
-money at call and short
- - - -
notice
-other cash and cash
7,229,452,866 4,209,304,271 7,209,452,866 4,209,304,271
equivalent
Total 11,943,820,100 8,506,651,247 11,531,556,889 8,027,502,157

4.2 DUE FROM NEPAL RASTRA BANK

Due from Nepal Rastra Bank includes the balance maintained with Nepal Rastra Bank in local currency
and convertible foreign currency. Theses balance are also used in maintaining the cash reserve
and liquidity ratio required by Nepal Rastra Bank. As required by the Directives no. 13 ( Mandatory
Cash Reserve and Statutory Liquidity Ratio) issued by Nepal Rastra Bank, minimum cash balance is
maintained with the Nepal Rastra Bank. As at 31st Asar 2076, the minimum cash reserve requirement
was 4 % (2075: 6 %) of the total local currency deposit liabilities.
As at 31st Asar 2076, the statutory liquidity ratio to be maintained was 10 % (2075: 12 %) of the local
currency deposit liabilities. For the purpose of calculating statutory liquidity ratio mandatory cash
reserve can also be included. Balances with Nepal Rastra Bank are carried at amortised cost in the
Statement of Financial Position.
Amount in NPR

Group Bank
Current Year Previous Year Current Year Previous Year
-statutory balance with
5,239,466,652 4,776,389,525 5,217,312,678 4,768,987,025
Nepal Rastra Bank
-securities purchased under
- - - -
resale agreement
-other deposit and
- - - -
receivable from NRB
Total 5,239,466,652 4,776,389,525 5,217,312,678 4,768,987,025

90 GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19

4.3 PLACEMENT WITH BANK AND FINANCIAL INSTITUTIONS
Placement with bank and financial institutions are the inter bank deposits within Nepal and outside
Nepal placed for short term. This includes placements in nepalese rupees and foreign currency within
the commercial bank of Nepal and foreign currency placements with international banks outside Nepal.
Placements with maturities of less than 3 months are classified as cash and cash equivaleents as these are
highly liquid in nature. Placements are non-derivative financial assets with fixed or determinable payments
that are not quoted in an active market and are measured at amortised cost using the EIR, less provision for
impairment, except when the bank designates placements at fair value through profit or loss.
Amount in NPR
Group Bank
Current Year Previous Year Current Year Previous Year
-placements
-with domestic B/FIs Nepal 40,000,000 172,188,252 - -
-with foreign B/FIs - - - -
less: allowances for
impairment
Total 40,000,000 172,188,252 - -

4.4 DERIVATIVE FINANCIAL INSTRUMENTS

Derivatives are financial instruments that derive their value in response to changes in interest rates,
financial instrument prices, foreign exchange rates. Derivatives are categorised as trading unless they
are designated as hedging instruments.
All derivatives are initially recognised and subsequently measured at fair value, with all revaluation gains
recognised in income statement. Fair value is based on the quoted market price, quotes from brokers or
dealers or estimates based upon discounted expected cash flows as appropriate.
Amount in NPR

Group Bank
Current Year Previous Year Current Year Previous Year
Held for trading
-interest rate swap - -
-currency swap - -
-forward exchange con-
- -
tract
-others - -
Held for risk management
-Interest rate swap - -
-Currency swap - -
-forward exchange con-
4,112,517,152 2,994,226,796 4,112,517,152 2,994,226,796
tract assets
-others - -
4,112,517,152 2,994,226,796 4,112,517,152 2,994,226,796

GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19 91

4.5 OTHER TRADING ASSETS
Trading assets are securities held by bank for the purpose of resselling them for profit. These assets
include treasury bills, government and NRB bonds, equities, mutual fund units and other securities held
for trading.
These assets are initially recorded at fair value and are subsequently measured at fair value through
profit or loss with any realized and unrealized gains and losses included in net trading income. The bank
has not acquired any assets with the intention of trading them in short term.
Amount in NPR

Group Bank
Current Year Previous Year Current Year Previous Year
Treasury bills - - -
Government bonds - - -
NRB Bonds - - -
Domestic Corporate bonds - - -
Equities 383,381,622 207,784,950 -
Other - - - -
383,381,622 207,784,950 - -
Pledged - -
Non-pledged 383,381,622 207,784,950 - -
Total 383,381,622 207,784,950 - -

4.6 LOANS AND ADVANCES TO BANKS AND FINANCIAL INSTITUTIONS

Loans and advances to banks and financial institutions includes loans provided to class “D” financial
institutions and cooperatives as classified under deprived sector as directed by Nepal Rastra Bank.
These loans are in the form of short term lending or term loan. These loans are initially measured at fair
value and subsequently measured at amortized cost using effective interest rate.
Loan loss provisions on loans and advances to banks and financial institutions are provided on the basis of
directives issued by Nepal Rastra Bank. These loans are categorised under pass, watchlist, sub-standard,
doubtful and loss category for providing the loan loss provisions.The loan loss provision provided are
the percentage of total loan outstanding on the basis of their overdue days and other criteria set out in
the directive number 2 issued by Nepal Rastra Bank.
Using the principles of NFRS, Loan loss provision are calculated separately. Bank has applied both
collective and individual assessment for calculating the impairment for loans and advances to banks
and financial institutions. Loans and advances to banks and financial institutions are individulally tested
for impairment. No any specific impairment has occur for the year and the previous years. Collective
impairment also did not occur for loans and advances to BFIs as no historical loss ratio exists for such
loans and advances.

92 GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19

 Loans to microfinance institutions and others include interest income accrued on such loans.
Amount in NPR

Group Bank
Current Year Previous Year Current Year Previous Year
Loans to microfinance
3,497,384,830 3,066,323,732 4,048,725,415 3,366,323,732
institutions
Others 46,840,664 143,874,655 46,840,664 143,874,655
Less: Allowances for
(35,419,070) (32,938,907) (40,932,476) (35,938,907)
Impairment
3,508,806,424 3,177,259,480 4,054,633,604 3,474,259,480

4.6.1: Allowances for impairment

Amount in NPR

Group Bank
Current Year Previous Year Current Year Previous Year
Balance at Sawan 1 32,938,907 22,492,236 35,938,907 23,542,236
Impairment loss for the
-
year:
Charge for the year 6,766,824 26,211,980 9,280,230 28,161,980
Recoveries/reversal (4,286,661) (15,765,309) (4,286,661) (15,765,309)
Amount written off - -
Balance at Asar end 35,419,070 32,938,907 40,932,475 35,938,907

4.7 LOANS AND ADVANCES TO CUSTOMERS

Loans and advances to customers comprises of non-derivative financial assets with fixed or determinable
payments that are not quoted in an active market which includes short term lending, term based lending,
hire purchase lending, mortgage lending, personal lending, loans to employees and others. Loans and
advances are initially measured at fair value and subsequently measured at amortised cost.
After initial measurement, loans and advances to banks are subsequently measured at amortised cost
using the EIR, less provision for impairment, except when the bank designates loans and receivables
at fair value through profit or loss. Amortised cost is calculated by taking into account any discount
or premium on acquisition and fees and costs that are an integral part of the EIR. Bank has not taken
in account to calculate the upfront service fees collected on the individual loans to customers as the
upfront service fees collected in terms of term based loans are less than 1% of the loan amount. Total
income from service fees earned from term based loan is not material to the net interest earned by the
bank. As per NAS 1 these service fees are taken to the income and not taken for recalculating the EIR of
loans on the basis of materiality.
Loan loss provisions on loans and advances to customers are provided on the basis of directive number 2
issued by Nepal Rastra Bank. These loans are categorised under pass, watchlist, sub-standard, doubtful
and loss category and provisions are made accordingly. Loan loss provisions are provided on the basis of
percentage of total loan outstanding or on the basis of their overdue days or other criteria set out in the
directives of Nepal Rastra Bank.

GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19 93

 Staff loans which are fair valued at initial recognition and subsequently measured at amortized cost
are included in loans and advances to customers measured at amortized cost. Loans and advances to
customers include accrued interest on these loans.
Amount in NPR

Group Bank
Current Year Previous Year Current Year Previous Year

Loan and advances measured at

113,958,665,684 91,521,140,083 110,699,769,129 90,407,063,576
amortized cost
Less: Allowances for
Impairment
Collective impairment (1,263,477,712) (1,010,494,345) (1,231,075,705) (999,551,079)
Individual impairment (499,893,695) (534,763,423) (491,085,738) (529,416,851)
Net amount 112,195,294,276 89,975,882,315 108,977,607,686 88,878,095,645
Loan and advances measured at
-
FVTPL
Total 112,195,294,276 89,975,882,315 108,977,607,686 88,878,095,645

Impairment of loans and advances to customers under NFRS

Bank applies the principles of incurred loss model set out in NAS 39 for measurement of impairment of
loans and advances to customers.
Impairment of individually assessed loans
Bank has reviewed its individually significant loans and advances at each reporting date to assess
whether an impairment loss should be provided in the Statement of profit or loss. The bank has assessed
more than 40% of its total loan portfolio for the specific impairment of individually significant loans
under the five loan products namely hire purchase loans, home loans, term loans, mortgage loans and
short term loans. All the possible objective evidence are assessed on such significant loans which the
bank has designed in assessing the specific impairment tests. Reasonable estimates and assumptions
are made on assessing the objective evidence, so that there is no understatement or overstatement of
the impairment amount on the individually assessed loans.
Bank reviews its non-performing loans and receivables at each reporting date to assess whether an
allowance for impairment should be recorded in the statement of comprehensive income. In particular,
the judgment of the management is required in estimating the amount and timing of future cash flows
when determining the level of allowance required. Such estimates are based on assumptions about a
number of factors, and actual results may differ, resulting in future changes to the allowance. Additionally
the bank has conducted specific assessment on the 100% provisioned loans as per NRB directives. These
assessments are made on the judgment and estimates of the management for the amount and timing of
future cash flow recovery from such loans on the basis of the security value possessed and the projected
cash flows to be received from such loans.
Impairment of collectively assessed loans
All other loans where no specific impairment is established are assessed collectively based on the
products which bear similar type of risk characteristics. The bank has segregated five major products
with similar risk characteristics namely:
a. Hire Purchase Loans

94 GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19

 b. Home Loans
c. Mortgage Loans
d. Short term Loans
e. Term Loans
Collective impairment losses reflect impairment losses that have been incurred in the performing
portfolio but have not yet been identified by either the specific or collective assessment. Collective
assessment is performed on the net flow rate method where the bank assesses the movements of
outstanding principal as per overdue days.
This establishes the bank’s historical trend for the amount of loans moving to default zone from the issue
of loans. The bank has identified default zone as 180 days. The methodology combines probability of
default (PD), exposure at the time of default (EAD) and loss given default (LGD) over the loss emergence
period (the period between the loss event and the impairment being identified). Impairment amount
calculated with the principles of NAS 39 are as below:
Amount in NPR

Group Bank
Current Year Previous Year Current Year Previous Year
Impairment under NFRS
Collective impairment 246,233,481 204,321,237
Individual impairment - - 52,690,166 42,122,175
Total Impairment under
- - 298,923,647 246,443,412
NFRS
Loan Loss Provision
- - 1,722,161,443 1,528,967,930
under NRB

4.7.1 Analysis of Loans and Advances – By Product

Amount in NPR

Group Bank
Current Year Previous Year Current Year Previous Year
Product
Term loans 17,012,805,191 13,415,213,440 17,012,805,191 13,415,213,440
Overdraft 25,509,904,970 23,017,979,048 25,509,904,970 23,017,979,048
Trust receipt/Import loans 5,204,348,947 5,704,000,311 5,204,348,947 5,704,000,311
Demand and other working
28,281,864,623 20,327,086,084 28,281,864,623 20,327,086,084
capital loans
Personal residential loans 11,291,383,978 8,603,201,968 11,291,383,978 8,603,201,968
Real estate loans 3,820,381,541 3,547,936,730 3,820,381,541 3,547,936,730
Margin lending loans 1,948,823,187 1,879,418,081 1,948,823,187 1,879,418,081
Hire purchase loans 7,981,576,779 6,931,406,832 7,981,576,779 6,931,406,832
Deprived sector loans 1,379,362,573 1,308,557,548 1,379,362,573 1,308,557,548
Bills purchased - - - -
Staff loans 459,865,018 347,742,614 459,865,018 347,742,614

GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19 95

 Group Bank
Current Year Previous Year Current Year Previous Year
Other 10,766,325,719 6,231,106,194 7,536,746,994 5,128,446,964
Sub total 113,656,642,525 91,313,648,850 110,427,063,800 90,210,989,620
Interest Receivable 302,023,158 207,491,233 272,705,329 196,073,956
Grand total 113,958,665,684 91,521,140,083 110,699,769,129 90,407,063,576

4.7.2 Analysis of loan and advances – By Currency

Amount in NPR

Group Bank
Current Year Previous Year Current Year Previous Year
Nepalese rupee 109,448,535,157 87,018,797,640 106,218,956,432 85,916,138,410
Indian rupee -
United State dollar 4,208,107,368 4,294,851,210 4,208,107,368 4,294,851,210
Great Britain pound -
Euro -
Japanese yen -
Chinese yuan -
Other -
Sub total 113,656,642,525 91,313,648,850 110,427,063,800 90,210,989,620

4.7.3 Analysis of loan and advances – By Collateral

Amount in NPR

Group Bank
Current Year Previous Year Current Year Previous Year
Secured
Movable/immovable assets 96,277,075,430 88,168,750,759 96,277,075,430 88,168,750,759
Gold and silver - - - -
Guarantee of domestic B/FIs - - - -
Government guarantee - - - -
Guarantee of international
- - - -
rated bank
Collateral of export document - - - -
Collateral of fixed deposit
488,451,765 561,636,210 488,451,765 561,636,210
receipt
Collateral of Government
152,908,761 169,747,083 152,908,761 169,747,083
securities
Counter guarantee 4,247,689 2,536,178 4,247,689 2,536,178
Personal guarantee 265,254,889 44,994,909 265,254,889 44,994,909
Other collateral 16,468,703,991 2,365,983,711 13,239,125,266 1,263,324,481

96 GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19

 Group Bank
Current Year Previous Year Current Year Previous Year
Sub total 113,656,642,525 91,313,648,850 110,427,063,800 90,210,989,620
Unsecured -
Grand Total 113,656,642,525 91,313,648,850 110,427,063,800 90,210,989,620

4.7.4 Allowances for Impairment

Amount in NPR

Group Bank
Current Year Previous Year Current Year Previous Year
Specific allowances for
impairment
Balance at Shrawan 1 529,416,851 988,693,354 529,416,851 988,693,354
Impairment loss for the year: - -
Charge for the year 209,781,192 225,534,659 209,781,192 225,534,659
Recoveries/reversal
(248,112,305) (684,811,162) (248,112,305) (684,811,162)
during the year
Write-offs - -
Exchange rate variance
on foreign currency - -
impairment
Other movement -
Balance at Asar end 491,085,738 529,416,851 491,085,738 529,416,851
Collective allowances for
impairment
Balance at Shrawan 1 1,015,840,917 853,819,376 999,551,079 842,502,031
Impairment loss for the
year:
Charge for the year 684,361,732 525,165,870 659,441,606 520,193,377
Recoveries/reversal
(427,916,980) (363,144,329) (427,916,980) (363,144,329)
during the year
Exchange rate variance
on foreign currency - -
impairment
Other movement - -
Balance at Asar end 1,272,285,669 1,015,840,917 1,231,075,705 999,551,079
Total Allowances for
1,763,371,407 1,545,257,768 1,722,161,443 1,528,967,930
impairment
4.8 INVESTMENT SECURITIES
Investment in securities comprises of Investments in government securities like development bonds,
treasury bills, Nepal Rastra Bank bonds, deposit instruments with Nepal Rastra Bank, equity instruments

GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19 97

 and units of mutual funds and others. Investment securities like are initially recognized at fair value plus
directly attributable transaction costs and subsequently measured at amortized cost using the Effective
Interest Rate (EIR) less impairment.
Investment in quoted equities, unquoted equities and quoted mutual fund units are initially recognized
at cost plus directly attributable transaction costs and subsequently measured at fair value through other
comprehensive income. Initial transaction cost has not been considered due to variation in transaction
cost as a result of uncertainty over lot size and immateriality of those cost. The equity shares can be in
form of promoter or ordinary shares. Gains and losses arising from changes in fair value are included
in other comprehensive income within a separate component of equity. Impairment losses or reversals,
interest revenue and foreign exchange gains and losses are recognized in profit and loss. Upon disposal,
the cumulative gain or loss previously recognized in other comprehensive income is reclassified from
equity to the income statement.
All the listed ordinary equity shares are measured at fair value using Level 1 input as described in NAS 13
“Fair Value Measurement”. Level 1 inputs are quoted prices (unadjusted) in active markets for identical
assets or liabilities that the entity can access at the measurement date. For the promoter shares where
the quoted prices cannot be accessed at the measurement date, they are valued at 50% of the value of
ordinary equity shares.
All of unquoted equity securities are recorded at cost since it is the most reasonable value available
to represent the market value of these investments at the reporting date. Management carried out an
impairment assessment of the unquoted share investments held by the Bank and concluded that no
impairment is required as there is no evidence for a permanent decline in value of the investment.
All the listed mutual fund units are measured at fair value using Level 1 input as described in NAS 13
“Fair Value Measurement”. Level 1 inputs are quoted prices (unadjusted) in active markets for identical
assets or liabilities that the entity can access at the measurement date.
Changes in fair vaue of mutual fund investments are recognised in other comprehensive income as fair
value change.
Amount in NPR

Group Bank
Current Year Previous Year Current Year Previous Year
Investment securities
11,630,482,174 15,398,903,714 11,630,482,174 15,398,903,714
measured at amortized cost
Investment securities
1,534,504,317 934,130,568 1,522,669,818 921,749,118
measured as at FVTOCI
13,164,986,491 16,333,034,282 13,153,151,992 16,320,652,832

98 GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19

4.8.1. Investment securities measured at amortized cost
Amount in NPR
Group Bank
Current Year Previous Year Current Year Previous Year
-debt securities - - - -
-government bonds 9,024,432,215 8,278,705,719 9,024,432,215 8,278,705,719
-government treasury bills 2,606,049,959 7,120,197,995 2,606,049,959 7,120,197,995
-nepal rastra bank bonds - - - -
-nepal rastra bank deposit
- - - -
instruments
11,630,482,174 15,398,903,714 11,630,482,174 15,398,903,714
Less: specific allowances for
- -
impairment
Total 11,630,482,174 15,398,903,714 11,630,482,174 15,398,903,714

4.8.2. Investment in equity measured at fair value through other comprehensive income
Amount in NPR
Group Bank
Current Year Previous Year Current Year Previous Year
Equity Instruments
-unquoted equity
1,367,087,062 719,087,062 1,366,087,062 718,087,062
instruments
-quoted equity
31,525,117 58,087,624 31,165,618 57,668,674
instruments
Mutual Funds 135,892,138 156,955,882 125,417,138 145,993,382
1,534,504,317 934,130,568 1,522,669,818 921,749,118

4.8.3. Information relating to investmennt in quoted equities

4.8.3.1 Investment securities measured at FVTPL
Amount in NPR
Group Bank
Current Year Previous Year Current Year Previous Year
Unit Cost Fair Value Unit Cost Fair Value Unit Cost Fair Value Unit Cost Fair Value
Quoted Equity Investments
Agricultural Development Bank Ltd. 7,500 3,128,020 3,067,500 16,458 6,101,340 5,167,812
Api Power Company Ltd 37 5,336 5,291 743 270,264 211,012
Arun Valley Hydropower Development Co. Ltd. 39,770 5,294,335 4,414,470 7,344 1,778,150 1,123,632
Asian Life Insurance Co. Ltd 600 232,349 229,800
Bank of Kathmnadu Ltd 10,890 3,388,037 2,776,950 4,396 1,748,128 1,160,544
Butwal Power Company Ltd- 76,252 33,395,324 31,187,068 57,180 28,738,687 26,131,260
Century Commercial Bank Ltd. 10 1,730 1,770 525 113,166 88,725
Chhimek Laghubitta Bikas Bank LTD 3,223 3,057,095 3,061,850 3,317 2,865,908 2,909,009
Chilime Hydropower Company Ltd 45,119 26,485,789 23,506,999 11,446 10,190,832 9,042,340
Citizaen Investment Trust 100 250,433 242,900 1,994 5,263,162 4,985,000
Citizens Bank International Ltd - - - 7,271 2,770,164 1,715,956
Civil Bank Ltd 2,626 387,808 414,908 15,330 2,478,558 2,345,490
Deprosc Development Bank Ltd- 10,081 8,819,086 7,278,482 7,034 7,109,665 5,275,500
Deva Bikas Bank Limited - - - 11,495 2,296,405 1,482,855
Everest Bank Ltd 7,583 6,497,071 5,050,278 4,229 4,283,807 2,803,827
First Micro Finance Development Bank Ltd. 8,005 3,426,161 3,001,875 1,228 727,316 663,120

GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19 99

 Group Bank
Current Year Previous Year Current Year Previous Year
Unit Cost Fair Value Unit Cost Fair Value Unit Cost Fair Value Unit Cost Fair Value
Forward Community Microfinance Bittiya 3,391 5,547,733 4,503,248 941 2,124,633 2,089,020
Sansthan
Global IME Laghubitta Bittiya Sanstha Ltd 97 238,241 116,594 798 904,106 995,904
Guheshowori Merchant Bank & Finance Co. Ltd. 23,512 2,964,565 3,080,072
Guras Life Insurance Co. Ltd. 5,144 3,875,028 2,391,960 3,192 3,657,476 2,824,920
Gurkhas Finance Ltd. 11,032 2,206,452 1,334,872 14,122 2,824,483 1,496,932
Himalayan Bank Limited 4,059 2,468,011 2,240,568 1,887 1,468,864 1,039,737
Hydroelectricity Investment and Dev. Co. Ltd 1,934 306,401 311,374
ICFC Finance Company Ltd 9,580 1,679,665 1,609,440 2,054 437,758 353,288
Janata Bank Nepal Ltd. - - - 19,187 3,879,447 3,012,359
Joshi Hydropower Development Co Ltd 1,040 98,104 80,080
Jyoti Bikas Bank Limited 500 83,997 81,500
Kabeli Bikas Bank Limited 3,461 1,080,349 622,980 2,978 1,241,424 702,808
Kailash Bikas Bank Ltd. 1,000 233,342 238,000
Kanchan Development Bank - - - 29 8,574 5,916
Kumari Bank Limited 12,038 2,660,085 2,648,360 6,125 1,899,758 1,218,875
Laxmi Bank Ltd 6,357 1,445,378 1,436,682
Lumbini Bikas Bank Ltd. 7,196 1,433,402 1,417,612
Machhapuchhre Bank Ltd 9,003 2,643,892 2,376,792 7,512 2,212,204 1,570,008
Mahila Sahayatri Bittiya Sanstha Ltd 1,025 990,288 452,025 705 822,864 500,550
Manjushree Finance Ltd. - - - 1,869 265,737 218,673
Mission Development Bank Ltd. 7,060 1,754,777 1,143,720 6,660 1,837,550 1,178,820
Mithila Laghubitta Bikas Bank 243 119,628 97,929 1 786 1,015
Muktinath Bikas Bank Ltd. 10,220 4,016,919 3,781,400 343 218,052 129,654
Nabil Bank Ltd 5,854 4,561,414 4,683,200
Nabil Equity Fund 11,264 112,640 105,093 11,264 112,640 111,063
National Hydro Power Company Limited 31,634 2,500,949 2,024,576 12,370 1,178,008 1,063,820
National LIfe Insurance Company Ltd- 11,314 9,884,563 6,618,690 5,822 7,022,405 4,651,778
NB Insurance Co. Ltd. 10,418 4,455,047 3,802,570 1,150 1,017,668 1,023,500
Nepal Bangladesh Bank -Ordinary Share 1,849 434,022 410,478 102 22,968 21,828
Nepal Bank Limited 67,159 19,724,490 22,565,424 29,122 11,234,215 8,183,282
Nepal Credit And Commercial Bank Limited 1,172 307,668 288,312
Nepal Doorsanchar Company Ltd- 6,364 4,495,159 4,410,252 1,920 1,504,625 1,384,320
Nepal Grameen Bikas Bank Ltd. 22,245 10,102,885 8,008,200 8,340 6,528,152 5,112,420
Nepal Insurance Company Limited 11,855 4,949,888 4,196,670 2,530 1,706,386 1,664,740
Nepal Investment Bank Ltd - Promoter Share 43,607 22,274,224 20,408,076 25,790 15,470,316 14,055,550
Nepal Life Insurance Co. Ltd. 1,260 1,244,064 1,135,260 6,446 8,200,883 6,768,300
Nepal SBI Bank Limited 2,800 1,370,002 1,313,200 57 31,632 28,443
NLG Insurance Company Ltd 105 - 80,010
NMB Bank Ltd 9,597 3,435,350 3,666,054 1,305 696,756 467,190
Nmb Hybrid Fund 40,776 403,143 408,983 40776 403143.6 395119.44
Orinetal Hotal Ltd 19,537 11,402,899 11,858,959 12,770 6,897,427 6,653,170
Panchakanya Mai Hydropower Ltd 670 74,619 73,700
Prabhu Bank Limited 115,466 32,966,327 30,713,956 11,843 3,970,536 2,214,641
Premier Insurance Co. Ltd. - - - 179 261,413 201,375
Prime Commercial Bank Ltd 7,593 2,308,888 2,110,854 5,395 1,959,435 1,548,365
Radhi Bidhyut Company Ltd 233 37,096 34,717
Rastriya Beema Company Ltd - Promoter Share 2,519 26,217,625 22,361,163 1,070 13,093,096 10,649,710
Ridhi Hydropower Co. Ltd 16,852 1,677,859 1,516,680 1,000 146,860 123,000
RSDC Laghubitta Bittiya Sanstha Ltd- 7,085 4,031,914 2,430,155 5,036 3,403,233 2,794,980
Rural Microfinance Development Centre Ltd. - - - 964 717,537 629,492
Sagarmatha Insurance Co.Ltd. 3,329 2,507,548 2,014,045
Sahara Bikas Bank 158 72,680 72,680 158 12,947 72,680
Sana Kisan Bikas Bank Ltd. 4,432 4,522,654 4,201,536 625 839,825 725,000
Sanima Bank Ltd 24,939 9,875,137 8,678,772 13,159 5,266,077 4,263,516
Sanima Mai Hydropower Ltd 9,492 2,448,965 2,325,540
Sewa Bikas Bank Ltd - - - 12,133 2,475,500 1,747,152
Shikhar Insurance Co. Ltd 2,456 2,063,765 1,893,576
Shine Resunga Development Bank- 9,074 2,514,231 2,286,648 4,375 1,442,415 1,185,625
Shivam Cement Ltd 8,460 5,646,744 5,143,680

100 GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19

 Group Bank
Current Year Previous Year Current Year Previous Year
Unit Cost Fair Value Unit Cost Fair Value Unit Cost Fair Value Unit Cost Fair Value
Shree Investment Finance Co.Ltd 9,600 1,522,635 1,507,200
Shrijana Finance Ltd 1,611 408,221 330,255 2,070 603,333 484,380
Siddhartha Bank Ltd 44,180 16,882,778 14,049,240 16,110 7,932,269 4,833,000
Sindhu Bikas Bank Ltd. 2,593 352,456 373,392 114 27,061 14,934
Soaltee Hotel 5,335 1,304,494 1,301,740 2,550 697,267 619,650
Standard Chartered Bank Ltd 17,540 13,102,731 11,962,280 3,833 3,326,626 2,893,915
Sunrise Bank Limited 26,488 10,146,590 6,569,252 45,650 18,553,809 10,499,500
Surya Life Insurance Company Ltd 22,997 13,150,634 10,486,632 9,639 6,722,312 5,783,400
Swadeshi Laghubibitta Bittiya Sanstha Limited 3,356 2,091,624 1,939,768
Synergy Hydropower 2,973 391,203 267,570 1,501 252,533 186,124
Taragaon Regency Hotel Limited - - - 2,690 799,737 737,060
United Insurance Ltd- 2,405 2,388,241 2,044,250 470 464,096 448,850
United Modi Hydropower Ltd 2,000 221,357 218,000
Universal Power Company Ltd 6,165 570,690 548,685
Womi Microfinance Bittiya Sansthan - - - 1 100 1,385
Unquoted Investments
Nepal Reinsurance Co. Ltd 302,363 30,236,300 30,236,300 210,981 21,098,131 21,098,100
Nabil Balance Fund 2 50,000 500,000 500,000
10% SRBL Debenture 2080 5,000 5,000,000 5,000,000
427,109,241 383,381,622 256,632,639 207,784,918

4.8.3.2 Investment securities measured at FVTOCI

Amount in NPR
Group
Current Year Previous Year
Unit Cost Fair Value Unit Cost Fair Value
Quoted Equity Investments
Gurans Life Insurance Co. Ltd. 18,991 1,535,385 8,830,815 15,986 1,535,385 14,147,610
National Life Insurance (O) 2,928 27,809 1,712,880 20,349 2,492,853 16,258,851
Nepal Life Insurance Co.Ltd 399 320,625 359,499 3,375 2,687,550 3,543,750
Nepal Doorsanchar Company Ltd. 13,115 9,014,195 9,088,695 13,115 9,014,195 9,455,915
Rural Microfinance Development Centre Ltd. - - 794 - 518,482
NLG Insurance Company Ltd (O) 931 686,562 931 - 865,830
NLG Insurance Company Ltd (P) 28,462 1,050,000 10,844,022 28,462 1,050,000 13,234,830
United Modi Hydropower - - 337 33,700 57,964
Laxmi Laghubitta Laghubittiya Sanstha Ltd 4 2,644 4 - 4,392
11,948,013 31,525,117 16,813,682 58,087,624
Quoted Mutual Fund Investments
Laxmi Valued Fund-1 34,443 344,430 351,319 34,443 344,430 353,041
Global IME Samunnat Yojana-I 15,230,328 152,303,280 127,630,149 15,230,328 152,303,280 133,569,977
NMB Sulav Investment Fund-1 - - 1,332,498 13,324,980 15,390,352
NMB Hybrid Fund -1 788,701 7,887,010 7,910,671 788,701 7,887,010 7,642,513
160,534,720 135,892,138 173,859,700 156,955,882
Unquoted Equity Investments
Nepal Clearing House Limited 64,308 6,430,800 6,430,800 64,308 6,430,800 6,430,800
Banking Finance And Insurance Inst Limited 30,000 3,000,000 3,000,000
ICRA Nepal Ltd. 7,600 760,000 760,000 7,600 760,000 760,000
National Banking Training Institute P. Ltd 12,000 1,200,000 1,200,000 12,000 1,200,000 1,200,000
Nepal Electronics Payment System Ltd. 150,000 15,000,000 15,000,000 150,000 15,000,000 15,000,000
Nepal Reinsurance Co. Limited 421,963 42,196,262 42,196,262 421,963 42,196,262 42,196,262
Reliable Nepal Life Insurance Co. Limited 2,000,000 200,000,000 200,000,000 2,000,000 200,000,000 200,000,000
Care Ratings Nepal Limited 25,000 2,500,000 2,500,000 25,000 2,500,000 2,500,000
Nepal Infrastructure Bank Ltd 10,950,000 1,095,000,000 1,095,000,000 4,500,000 450,000,000 450,000,000
Nepal Finsoft Company 10,000 1,000,000 1,000,000 10,000 1,000,000 1,000,000
1,367,087,062 719,087,062
Total 1,534,504,317 934,130,568

GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19 101

 Amount in NPR
Bank
Current Year Previous Year
Unit Cost Fair Value Unit Cost Fair Value
Quoted Equity Investments
Gurans Life Insurance Co. Ltd. 18,991 1,535,385 8,830,815 15,986 1,535,385 14,147,610
National Life Insurance (O) 2,928 27,809 1,712,880 20,349 2,492,853 16,258,851
Nepal Life Insurance Co.Ltd - - 2,976 2,366,925 3,124,800
Nepal Doorsanchar Company Ltd. 13,115 9,014,195 9,088,695 13,115 9,014,195 9,455,915
Rural Microfinance Development Centre Ltd. - - 794 - 518,482
NLG Insurance Company Ltd (O) 931 - 686,562 931 - 865,830
NLG Insurance Company Ltd (P) 28,462 1,050,000 10,844,022 28,462 1,050,000 13,234,830
United Modi Hydropower - - - 337 33,700 57,964
Laxmi Laghubitta Laghubittiya Sanstha Ltd 4 2,644 4 - 4,392
11,627,388 31,174,393 16,493,057 57,668,674
Quoted Mutual Fund Investments
Laxmi Valued Fund-1 34,443 344,430 351,319 34,443 344,430 353,041
Global IME Samunnat Yojana-I 13,980,328 139,803,280 117,155,149 13,980,328 139,803,280 122,607,477
NMB Sulav Investment Fund-1 - - 1,332,498 13,324,980 15,390,352
NMB Hybrid Fund -1 788,701 7,887,010 7,910,671 788,701 7,887,010 7,642,513
125,417,138 145,993,382
Unquoted Equity Investments
Nepal Clearing House Limited 64,308 6,430,800 6,430,800 64,308 6,430,800 6,430,800
Banking Finance And Insurance Inst Limited 30,000 3,000,000 3,000,000
ICRA Nepal Ltd. 7,600 760,000 760,000 7,600 760,000 760,000
National Banking Training Institute P. Ltd 12,000 1,200,000 1,200,000 12,000 1,200,000 1,200,000
Nepal Electronics Payment System Ltd. 150,000 15,000,000 15,000,000 150,000 15,000,000 15,000,000
Nepal Reinsurance Co. Limited 421,963 42,196,262 42,196,262 421,963 42,196,262 42,196,262
Reliable Nepal Life Insurance Co. Limited 2,000,000 200,000,000 200,000,000 2,000,000 200,000,000 200,000,000
Care Ratings Nepal Limited 25,000 2,500,000 2,500,000 25,000 2,500,000 2,500,000
Nepal Infrastructure Bank Ltd 10,950,000 1,095,000,000 1,095,000,000 4,500,000 450,000,000 450,000,000
Nepal Finsoft Company
1,366,087,062 718,087,062
Total 1,522,669,818 921,749,118

4.9 CURRENT TAX ASSETS

Current tax assets consist of amounts paid to the Inland Revenue Department in respect of the current
year and the carried forward balance of advance taxes paid in previous years net off of those years,
income tax payable on those years using the tax rates enacted on the reporting date and any adjustment
to tax payable in respect of prior years.
Current tax liabilities consist of the amount of self assessed tax liabilities by the bank for the current year.
Amount in NPR

Group Bank
Current Year Previous Year Current Year Previous Year
Current Tax Assets
Current year income tax assets 1,317,330,086 1,040,358,579 1,259,701,665 1,010,327,239
Tax assets of prior periods -
Current Tax Liabilities

102 GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19

 Group Bank
Current Year Previous Year Current Year Previous Year
Current year income tax liabilities 1,245,969,517 920,657,758 1,202,570,465 903,324,893
Tax liabilities of prior periods - 45,190,884 45,190,884
Net tax assets / (liabilities) 71,360,569 74,509,937 57,131,200 61,811,462

4.10 INVESTMENT IN SUBSIDIARIES

Subsidiaries are entities in which the Bank directly or indirectly holds the majority of the voting rights
and where it determines their financial and business policies and is able to exercise control over them
in order to benefit from their activities. At each reporting date the Bank reassess whether it controls
an entity, if facts and circumstances indicate that there are changes to one or more elements of control
mentioned. Subsidiaries are fully consolidated from the date on which control is transferred to the
Group. They are de-consolidated from the date on which control ceases.
Inter-company transactions, balances and intergroup gains on transactions between group companies
are eliminated. Intergroup losses are also eliminated unless the transaction provides evidence of
impairment of the asset transferred.
Transactions and non-controlling interests
The group applies a policy of treating transactions with non-controlling interests as transactions with
equity owners of the group. For purchases from non-controlling interests, the difference between any
consideration paid and the relevant share acquired of the carrying value of net assets of the subsidiary is
recorded in equity. Gains or losses on disposals to non-controlling interests are also recorded in equity.
Interests in the equity of subsidiaries not attributable to the parent are reported in consolidated equity
as non-controlling interest. Profits or losses attributable to non-controlling interests are reported in the
consolidated comprehensive income as profit or loss attributable to non-controlling interests.
Amount in NPR

Group Bank
Current Year Previous Year Current Year Previous Year
Investment in quoted subsidiaries - - 54,775,000 54,775,000
Investment in unquoted
- - 165,000,000 165,000,000
subsidiaries
Total investment - - 219,775,000 219,775,000
Less: Impairment allowances - - - -
Net carrying amount - - 219,775,000 219,775,000

4.10.1. Investment in quoted subsidiaries

Amount in NPR
Current Year Previous Year
Units Cost Fair Value Units Cost Fair Value
GLOBAL IME LAGHUBITTA BITTIYA
773,202 54,775,000 464,694,402 672,350 54,775,000 403,410,000
SANSTHA LTD
54,775,000 464,694,402 54,775,000 403,410,000

GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19 103

4.10.2. Investment in unquoted subsidiaries
Amount in NPR

Current Year Previous Year

Units Cost Fair Value Units Cost Fair Value
GLOBAL IME CAPITAL LIMITED 1,650,000 165,000,000 165,000,000 1,650,000 165,000,000 165,000,000
165,000,000 165,000,000 165,000,000 165,000,000

4.10.3. Information relating to subsidiaries of the Bank

Percentage of ownership held by the Bank

Current Year Previous Year
Global IME Capital Ltd. (GICL) 75% 75%
Global IME Laghubitta Bittiya Sanstha Ltd. (GILBSL) 70% 70%

4.10.4. Non Controlling interest of the subsidiaries

Current Year Previous Year

GILBSL GICL GILBSL GICL
Equity interest held by NCI (%) 30% 25% 30% 25%
Profit/(loss) allocated during the year 24,329,235 9,984,606 6,102,236 1,815,384
Accumulated balances of NCI as on Asar end 64,065,967 67,883,705 52,611,208 63,623,087
Dividend paid to NCI - - - -

4.11 INVESTMENT IN ASSOCIATES

An associate is an entity over which the investor has significant influence where significant influence is
defined as power to participate in the financial and operating policy decisions of the investee but is not
control or joint control of those policies. If an entity holds 20% or more of the voting power (directly or
through subsidiaries) on an investee, it will be presumed the investor has significant influence unless
it can be clearly demonstrated that this is not the case. If the holding is less than 20%, the entity will
be presumed not to have significant influence unless such influence can be clearly demonstrated. A
substantial or majority ownership by another investor does not necessarily preclude an entity from
having significant influence.
Bank holds directorialship in two listed “D” class financial institution and one non listed life insurance
company. Though the the bank holds less than 20% of voting power, the bank has identified them to be
associates with the presumption as per NAS 28 “Investments in Associates and joint venture” para 6.
Investment in associates are accounted at cost with the provision of NAS 27 “Separate financial
statements” para 10 which states when an entity prepares separate financial statements, it shall account
for investments in subsidiaries, joint ventures and associates either:
a. at cost, or
b. in accordance with NFRS 9.
The Group has accounted its investment in associates using equity method by taking the carve out issued
by The Institute of Chartered Accountants of Nepal as disclosed in Note 3.26. The carve out gives the
exemptions for equity accounting under consolidated financial statements where the financial statements

104 GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19

 of associates are not prepared using uniform accounting policy of the bank. Equity accounting is based
on the profit reported by associate entities on their financial statements using the policy disclosed in the
financial statements.
Equity accounting for quoted associate Mero Microfinance Laghubitta Bittiya Sanstha is based on the
audited profit reported by the associate and equity accounting fro quoted associate First Microfinance
Laghubitta Bittiya Sanstha Ltd is based on the audited financial statements submitted to Nepal Rastra
Bank by the management.
Equity accounting for unquoted associate i.e. IME Life Insurance Company Ltd. Is based on unaudited
financial statement published by the associate as it has not been completed final audit at the date of
approval of the Bank’s financial statements.
Amount in NPR
Group Bank
Current Year Previous Year Current Year Previous Year
Investment in quoted associates 202,326,473 150,313,646 119,577,861 98,057,200
Investment in unquoted associates 219,821,606 209,414,756 200,000,000 200,000,000
Total investment 422,148,079 359,728,403 319,577,861 298,057,200
Less: Impairment allowances - - - -
Net carrying amount 422,148,079 359,728,403 319,577,861 298,057,200

4.11.1. Investment in quoted associates

Amount in NPR
Current Year Previous Year
Units Cost Fair Value Units Cost Fair Value
FIRST MICROFINANCE DEV
1,008,242 82,554,861 135,694,048 1,026,590 84,057,200 117,680,799
BANK LIMITED
MERO MICRO FINANCE
460,460 37,023,000 66,632,425 200,200 14,000,000 32,632,847
BITTYA SANSTHA LTD
119,577,861 202,326,473 98,057,200 150,313,646

4.11.2. Investment in unquoted associates

Amount in NPR
Current Year Previous Year
Units Cost Fair Value Units Cost Fair Value
IME LIFE INSURANCE CO. LTD 2,000,000 200,000,000 219,821,606 2,000,000 200,000,000 209,414,756
200,000,000 219,821,606 200,000,000 209,414,756

4.11.3. Information relating to associates of the Bank

Percentage of ownership held by Bank
Current Year Previous Year
FIRST MICROFINANCE DEV BANK LIMITED (O) 3.80% 4.07%
FIRST MICROFINANCE DEV BANK LIMITED (P) 10.93% 10.93%
MERO MICRO FINANCE BITTYA SANSTHA LTD (P) 7.00% 7.00%
IME LIFE INSURANCE CO. LIMITED 10.00% 10.00%

GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19 105

4.11.4. Equity Value of associates

Group Bank
Previous Current Previous
Current Year
Year Year Year
FIRST MICROFINANCE DEV BANK LIMITED 135,694,048 117,680,799
MERO MICRO FINANCE BITTYA SANSTHA LTD 66,632,425 32,632,847
IME LIFE INSURANCE COMPANY LTD 219,821,606 209,414,756
Net carrying amount 422,148,079 359,728,403 - -

4.12 INVESTMENT PROPERTY

Bank classifies the non-banking assets as repossessed collateral which are non-financial assets acquired
by the Bank in settlement of overdue loans. The assets are initially recognized at fair value when acquired
and included in investment property or other assets depending on their nature and the bank’s intention
in respect of recovery of these assets and are subsequently re-measured and accounted for in accordance
with the accounting policies for these categories of assets.
Land and Building are classified as investment property and all other assets repossessed for settlement
of overdue loans are classified as other assets.
Amount in NPR

Group Bank
Current Year Previous Year Current Year Previous Year
Investment properties measured at fair
value
Balance as on Shrawan 1
Additions during the year
Disposal during the year
Net changes in fair value during the year
Adjustment /transfer -
Net Amount - - - -
Investment properties measured at
cost
Balance as on Shrawan 1 91,917,079 144,690,079 91,917,079 144,690,079
Additions during the year 45,237,385 51,502,000 45,237,385 51,502,000
Disposal during the year (18,469,000) (104,275,000) (18,469,000) (104,275,000)
Adjustment/transfer - - - -
Accumulated depreciation - - - -
Accumulated impairment loss - - - -
Net Amount 118,685,464 91,917,079 118,685,464 91,917,079
Total 118,685,464 91,917,079 118,685,464 91,917,079

106 GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19

4.13 PROPERTY AND EQUIPMENT
Property and equipment is stated at cost excluding the costs of day–to–day servicing, less accumulated
depreciation and accumulated impairment in value. Changes in the expected useful life are accounted
for by changing the amortization period or methodology, as appropriate, and treated as changes in
accounting estimates.
Subsequent expenditures are included in the asset’s carrying amount or are recognized as a separate
asset, as appropriate, only when it is probable that future economic benefits associated with the item
will flow to the bank and the cost of the item can be measured reliably. The carrying amount of the
replaced part is derecognized. All other repair and maintenance costs are charged to other operating
expenses during the financial period in which they are incurred.
Depreciation on freehold land has not been calculated. Depreciation on other property and equipment is
calculated using the straight–line method to allocate their cost to their residual values over their estimated
useful lives. The estimated useful lives are included in Note 4.38 “Depreciation and Amortization”.
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each reporting date
of the statement of financial position. Assets are reviewed for impairment whenever events or changes
in circumstances indicate that the carrying amount may not be recoverable. An asset’s carrying amount
is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its
estimated recoverable amount. The recoverable amount is the higher of the asset’s fair value less costs to
sell and value in use. No property and equipment were impaired as at 31st Asar 2076 (16th July, 2019) &
32nd Asar 2075 (16th July, 2018): nil).
Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are
recognized in other operating expenses in the statement of profit or loss.
Capital Work in Progress
These are expenses of capital nature directly incurred in the construction of buildings, major plant
and machinery and system development, awaiting capitalization. Capital work-in-progress would be
transferred to the relevant asset when it is ready for use, i.e. when it is in the location and condition
necessary for it to be capable of operating in the manner intended by management. Capital work-in-
progress is stated at cost less any accumulated impairment losses.
Amount in NPR
GROUP
Office Motor Leasehold Capital Total Asar 32
Cost: Land Buildings Machinery Total
Equipment Vehicles Improvement WIP 2075
As on Sawan 1, 2075 441,824,460 223,107,191 180,992,384 728,720,642 382,178,199 359,484,139 2,043,819 2,318,350,834 1,667,031,372
Additions 45,995,000 425,558 18,848,723 87,612,972 78,297,925 85,567,581 - 316,747,758 704,102,439
Capitalization - - - - - 2,043,819 (2,043,819) - -
Disposals - - (1,010,142) (16,917,290) (55,995,606) (2,502,633) - (76,425,671) (52,782,977)
Balance on Asar end 2076 487,819,460 223,532,749 198,830,965 799,416,325 404,480,517 444,592,906 - 2,558,672,922 2,318,350,834
Accumulated Depreciation
As on Sawan 1, 2075 - 4,681,951 120,918,377 436,313,691 184,241,056 210,748,706 - 956,903,782 753,046,902
Charge for the year - 5,586,611 19,984,914 87,901,506 65,250,627 56,103,639 - 234,827,297 236,547,209
Disposals - - (911,188) (14,737,412) (36,520,318) - - (52,168,918) (32,690,329)
Balance on Asar end 2076 - 10,268,562 139,992,103 509,477,785 212,971,365 266,852,345 - 1,139,562,160 956,903,782
Capital WIP - -
Net book value:
As on Asar 32, 2075 441,824,460 218,425,240 60,074,006 292,406,951 197,937,143 148,735,433 2,043,819 1,361,447,052
As on Asar 31, 2076 487,819,460 213,264,187 58,838,862 289,938,540 191,509,152 177,740,561 - 1,419,110,761 1,361,447,052

GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19 107

 BANK

Office Motor Leasehold Total Asar 32

Cost: Land Buildings Machinery Total
Equipment Vehicles Improvement 2075
As on Sawan 1, 2075 430,378,816 223,107,191 168,095,970 715,523,358 369,944,555 357,952,491 2,265,002,381 1,622,117,267
Additions 45,995,000 425,558 14,773,205 83,932,872 70,077,575 84,922,462 300,126,671 695,571,494
Revaluation -
Disposals (958,842) (16,821,019) (55,995,606) (2,502,633) (76,278,100) (52,686,380)
Balance on Asar end 2076 476,373,816 223,532,749 181,910,333 782,635,211 384,026,523 440,372,320 2,488,850,952 2,265,002,381
Accumulated Depreciation
As on Sawan 1, 2075 - 4,681,951 114,354,665 429,468,571 181,277,757 210,748,706 940,531,650 741,472,347
Charge for the year 5,586,611 17,397,193 85,667,175 62,680,399 55,458,527 226,789,905 231,676,021
Disposals (865,019) (14,659,001) (36,520,318) (52,044,338) (32,616,718)
Balance on Asar end 2076 - 10,268,562 130,886,839 500,476,746 207,437,838 266,207,233 1,115,277,218 940,531,650
Capital WIP
Net book value:
As on Asar 32, 2075 430,378,816 218,425,240 53,741,305 286,054,787 188,666,798 147,203,785 1,324,470,731
As on Asar 31, 2076 476,373,816 213,264,187 51,023,494 282,158,466 176,588,685 174,165,087 1,373,573,734 1,324,470,731

4.14 GOODWILL AND INTANGIBLE ASSETS

The bank’s intangible assets include the value of computer software, and software WIP. An intangible
asset is recognized only when its cost can be measured reliably and it is probable that the expected
future economic benefits that are attributable to it will flow to the bank.
Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible
assets acquired in a business combination is their fair value as at the date of acquisition. Following initial
recognition, intangible assets are carried at cost less any accumulated amortization and any accumulated
impairment losses.
The useful lives of intangible assets are assessed to be either finite or indefinite. Intangible assets with
finite lives are amortized over the useful economic life. The amortization period and the amortization
method for an intangible asset with a finite useful life are reviewed at least at each financial year-end.
Changes in the expected useful life, or the expected pattern of consumption of future economic benefits
embodied in the asset, are accounted for by changing the amortization period or methodology, as
appropriate, which are then treated as changes in accounting estimates.
The amortization expense on intangible assets with finite lives is presented as a separate line item in
the income statement. Amortization is calculated using the straight–line method to write down the cost
of intangible assets to their residual values over their estimated useful lives, as mentioned in Note 4.38
“Depreciation and Amortization”.
Goodwill on Consolidation

Two of the subsidiaries namely Reliable Capital Ltd and Global IME Capital Ltd were merged during
the previous financial year to form Global IME Capital Ltd. As a result the shares held by the Bank for
Reliable Capital Ltd which is 100 % subsidiary were less than the shares actually to be received for
the consideration paid to Reliable Capital Ltd. As a result of difference in consideration paid to the
investments, goodwill has arisen on consolidation as per NFRS 10 ‘Consolidated Financial Statements’.

108 GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19

 Amount in NPR

GROUP
Software
Particulars Goodwill Other Total Asar
Purchased Developed Total 32 2075
As on Sawan 1, 2075 3,750,000 108,024,197 - - 111,774,197 92,091,066
Additions 10,595,069 - - 10,595,069 15,933,131
Goodwill on consolidation - 3,750,000
Disposals -
Balance on Asar end 2076 3,750,000 118,619,266 - - 122,369,266 111,774,197
Accumulated Amortization
As on Sawan 1, 2075 73,962,045 - - 73,962,045 60,967,197
Amortization for the year 12,590,188 - - 12,590,188 12,994,847
Disposals -
Balance on Asar end 2076 - 86,552,233 - - 86,552,233 73,962,045
Net book value:
As on Asar 32, 2075 3,750,000 34,062,152 - - 37,812,152 -
As on Asar 31, 2076 3,750,000 32,067,033 - - 35,817,033 37,812,152

BANK
Software Total Asar
Particulars Goodwill Other Total
Purchased Developed 32 2075

As on Sawan 1, 2075 103,081,397 103,081,397 87,797,166

Additions 8,026,203 8,026,203 15,284,231
Disposals -
Balance on Asar end 2076 111,107,600 - 111,107,600 103,081,397
Accumulated Amortization
As on Sawan 1, 2075 71,304,462 71,304,462 59,235,502
Amortization for the year 11,514,529 11,514,529 12,068,960
Disposals -
Balance on Asar end 2076 - 82,818,991 - - 82,818,991 71,304,462
Net book value:
As on Asar 32, 2075 - 31,776,935 - - 31,776,935
As on Asar 31, 2076 - 28,288,609 - - 28,288,609 31,776,935

GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19 109

4.15 DEFERRED TAX ASSETS / (LIABILITIES)
Deferred tax is provided on temporary differences at the reporting date between the tax bases of assets
and liabilities and their carrying amounts for financial reporting purposes.
Deferred tax assets are recognized for all deductible temporary differences, carried forward unused tax
losses (if any), to the extent it is probable that taxable profit will be available gainst which the deductible
temporary differences, carried forward unused tax credit and unused tax losses can be utilized.
The Bank has created deferred tax assets and liabilities for each adjustments made in adopting the NFRS
for any future tax liability or asset creating against these NFRS adjustments.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year
when the asset is realized or the liability is settled, based on tax rates that have been enacted at the
reporting date.
Amount in NPR
Group
Current Year Previous Year

Deferred Tax Deferred Net Deferred Deferred Tax Deferred Net Deferred
Tax Tax Assets/ Tax Tax Assets/
Assets Assets
Liabilities (Liabilities) Liabilities (Liabilities)
Deferred tax on temporary
differences on following items
Loan and Advance to B/FIs -
Loans and advances to customers -
Interest receivable on loans to 9,085,153 (9,085,153) 3,334,628 (3,334,628)
customers
Investment properties - -
Investment securities 1,988,561 1,988,561 7,825,360 (7,825,360)
Property & equipment 64,423,201 64,423,201 54,171,927 54,171,927
Employees' defined benefit plan 160,949,493 160,949,493 145,252,565 145,252,565
Lease liabilities 1,793,857 1,793,857 -
Provisions 50,241 50,241 -
Other temporary differences - 20,276 20,276
Deferred tax on temporary 229,205,352 9,085,153 220,120,199 199,444,768 11,159,988 188,284,780
differences
Deferred tax on carry forward of
unused tax losses
Deferred tax due to changes in tax
rate
Net Deferred tax asset/ 220,120,199 188,284,780
(liabilities) as on Asar 31, 2076
Deferred tax (asset)/liabilities as 188,284,780 2,927,905
on Shrawan 1, 2075
Origination/(Reversal) during (31,835,419) 185,356,875
the year
Deferred tax expense/(income) (27,968,047) (145,936,557)
recognized in profit or loss
Deferred tax expense/(income)
recognized in other comprehensive (3,867,372) (39,420,318)
income
Deferred tax expense/(income)
recognized in directly in equity

110 GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19

 Amount in NPR
Bank
Current Year Previous Year
Deferred Net Deferred Deferred Tax Deferred Net Deferred
Deferred Tax Tax Assets/ Tax Tax Assets/
Tax Assets Assets
Liabilities (Liabilities) Liabilities (Liabilities)
Deferred tax on temporary
differences on following
items
Loan and Advance to B/FIs - - - -
Loans and advances to - - - -
customers
Interest receivable on loans to - - - -
customers
Investment properties - - - -
Investment securities 923,806 923,806 - 7,742,790 (7,742,790)
Property & equipment 50,141,126 50,141,126 40,969,909 - 40,969,909
Employees' defined benefit 159,219,630 159,219,630 144,619,011 - 144,619,011
plan
Lease liabilities 1,793,857 1,793,857 - - -
Provisions - - - -
Other temporary differences - - - -
Deferred tax on temporary 212,078,419 - 212,078,419 185,588,920 7,742,790 177,846,130
differences
Deferred tax on carry forward - -
of unused tax losses
Deferred tax due to changes in - -
tax rate
Net Deferred tax asset/
(liabilities) as on Asar 32, 212,078,419 177,846,130
2075
Deferred tax asset/(liabilities) 177,846,130 907,696
as on Shrawan 1, 2074
Origination/(Reversal) (34,232,289) 176,938,434
during the year
Deferred tax expense/(income) (30,605,877) (137,902,491)
recognized in profit or loss
Deferred tax expense/
(income) recognized in other (3,626,412) (39,035,942)
comprehensive income
Deferred tax expense/(income) - -
recognized in directly in equity

4.16 OTHER ASSETS

Other assets includes those assets which are not classified separately in the financial statements. Accrued
income, prepayments, security deposits, account receivables and prepaid employee benefit balance are
classified as other assets.
Prepaid employee benefits are the benefits which arises as a result of lower interest rate on the staff
loans. These benefits are amortized over the term of the staff loan availed by the employees.

GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19 111

 Amount in NPR

Group Bank
Current Year Previous Year Current Year Previous Year
Assets held for sale -
Other non-banking assets - -
Bills receivable - -
Account receivables 320,543,426 626,575,434 236,417,716 590,729,195
Accrued Income - - - -
Prepayments and deposit 117,807,069 114,474,025 116,199,817 114,008,270
Income tax deposit 21,091,926 20,574,926 21,091,926 20,574,926
Deferred employee
expenditure 589,231,481 430,538,465 589,231,481 430,538,465
Other assets 65,020,724 72,034,497 112,160,695 67,914,038
Total 1,113,694,625 1,264,197,347 1,075,101,634 1,223,764,894

4.16.1 Deferred employee expenditure

Amount in NPR
Group Bank
Current Year Previous Year Current Year Previous Year
opening balance 430,538,465 344,565,793 430,538,465 344,565,793
adjustment for new loan
216,823,011 155,512,584 216,823,011 155,512,584
granted
adjustment for settled loan (26,974,329) (35,909,214) (26,974,329) (35,909,214)
charge to personnel
(31,155,667) (33,630,698) (31,155,667) (33,630,698)
expenses
closing balance 589,231,481 430,538,465 589,231,481 430,538,465

4.17 DUE TO BANK AND FINANCIAL INSTITUTIONS

Interbank borrowings and deposits from banks and financial institution are classified as due to bank and
financial institutions. These are subsequently measured at amortized cost using effective interest rate.
All the transaction cost are considered in calculating effective interest rate. The bank has not incurred
any additional cost in collecting the deposits or borrowings from the banks. Deposits from BFIs are in
nature of term, current deposits from B, C and D class financial institutions.
Amount in NPR

Group Bank
Current Year Previous Year Current Year Previous Year
Money market deposits - - - -
Inter bank borrowings 1,971,516,298 694,637,836 - -
Deposits from BFIs 4,325,584,840 1,652,114,510 4,410,876,030 1,659,926,258
Settlement and clearing
- - - -
accounts
Total 6,297,101,138 2,346,752,346 4,410,876,030 1,659,926,258

112 GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19

4.18 DUE TO NEPAL RASTRA BANK

Bank has classify any amount due to Nepal Rastra Bank as subsequently measured at amortized cost
using effective interest rate. All the transaction cost, incurred if any, are considered in calculating
effective interest rate. The bank has not incurred any additional transaction cost in taking the refinance
facility from the Nepal Rastra Bank.
The Bank has borrowed fund of Rs. 518,505,701 from the Nepal Rastra Bank under the program
“Sustainable Economic Development in Rural Areas”, a program of German Financial Cooperation
implemented by KFW (Kreditanstalt für Wiederaufbau) German government owned development
bank and Government of Nepal (represented by Ministry of Finance) on October 2017. These borrowing
is used to provide access to financial services to Micro Small and Medium Enterprises (MSMEs) as defined
in Article III (1.5) of the agreement. The borrowing carry the interest rate as defined in the agreement
between Nepal Rastra Bank which has acted as On - lending Agent and Global IME Bank acting as Project
- Executing Agency. As per the agreement the Bank has paid the interest of Rs. 27,229,753.03 as on the
reporting date. The loans floated through the borrowed funds are within the norms and compliance of
the agreement as stated in Article III (1.5) of the agreement.
Amount in NPR

Group Bank
Current Year Previous Year Current Year Previous Year
Refinance from NRB 713,294,510 860,231,068 713,294,510 860,231,068
Standing Liquidity Facility - - - -
Lender of last resort facility
- - - -
from NRB
Securities sold under
- - - -
repurchase agreements
Other payable to NRB 518,505,701 174,417,522 518,505,701 174,417,522
Total 1,231,800,211 1,034,648,590 1,231,800,211 1,034,648,590

4.19 DERIVATIVE FINANCIAL INSTRUMENTS

Derivatives are financial instruments that derive their value in response to changes in interest rates,
financial instrument prices, foreign exchange rates. Derivatives are categorised as trading unless they
are designated as hedging instruments.
All derivatives are initially recognised and subsequently measured at fair value, with all revaluation gains
recognised in income statement. Fair value is based on the quoted market price, quotes from brokers
or dealers, or estimates based upon discounted expected cash flows as appropriate. All derivatives are
carried as assets when fair value is positive and as liabilities when fair value is negative.
Amount in NPR

Group Bank
Current Year Previous Year Current Year Previous Year
Held for trading
-interest rate swap - - - -
-currency swap - - - -

GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19 113

 Group Bank
Current Year Previous Year Current Year Previous Year
-forward exchange contract - - - -
-others - - - -
Held for risk management
-Interest rate swap - - - -
-Currency swap - - - -
-forward exchange contract
liabilities 3,879,901,668 3,039,483,464 3,879,901,668 3,039,483,464
-others - - -
Total 3,879,901,668 3,039,483,464 3,879,901,668 3,039,483,464

4.20 DEPOSIT FROM CUSTOMERS

Deposit from customers are the deposits accepted by bank from the individuals, corporate entities and
other organized institutions. These deposits are in the form of saving, time, call, margin and demand.
Deposit from customers are recognized when the funds reaches to the banks. These are measured at
amortized cost using the effective interest rate. Any transaction cost incurred if any are considered in
determining the effective interest rate payable on deposit from customers. Bank launches the deposit
collection programme, dormant account activation, new deposit products awareness on regular basis
to the employees of the bank. Bank provides incentives and bonus for the motivation to carry out the
programme effectively. These incentives and bonuses has not been included as transaction cost in
calculating the effictive interest rate of the deposits as these cost are in immaterial nature and allocation
of the cost to individual deposit is not feasible.
Amount in NPR

Group Bank
Current Year Previous Year Current Year Previous Year
Institutional Customers
-term deposits 36,496,884,206 34,480,909,250 36,496,884,206 34,480,909,250
-call deposits 8,644,338,513 5,397,331,182 8,664,196,148 5,426,781,273
-current deposits 7,153,824,867 5,261,456,219 7,153,824,867 5,261,456,219
-other deposits 1,168,106,400 1,001,214,740 1,168,106,400 1,001,214,740
Individual Customers
-term deposits 23,924,182,190 18,877,454,619 23,924,085,133 18,877,454,619
-saving deposits 42,741,879,849 37,147,196,411 41,867,299,132 36,786,308,088
-current deposits 797,409,685 1,829,002,710 797,409,685 1,829,002,710
-other deposits 16,634,493 1,187,383,494 16,634,493 1,187,383,494
Total 120,943,260,203 105,181,948,626 120,088,440,064 104,850,510,393

114 GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19

4.20.1: Currency wise analysis of deposit from customers
Amount in NPR

Group Bank
Current Year Previous Year Current Year Previous Year
Nepalese rupee 118,463,188,527 103,438,984,249 117,608,368,388 103,107,546,015
Indian rupee - - -
United State dollar 2,450,342,039 1,719,643,274 2,450,342,039 1,719,643,274
Great Britain pound 19,913,440 7,733,508 19,913,440 7,733,508
Euro 9,599,244 15,000,251 9,599,244 15,000,251
Japanese yen - - -
Chinese yuan - - -
Other 216,951 587,346 216,951 587,346
Total 120,943,260,203 105,181,948,626 120,088,440,064 104,850,510,393

4.21 BORROWINGS

Borrowings are financial liabilities accepted by bank with fixed or determinable payments. Subsequent
to initial recognition, these financial instruments are measured at amortised cost using effective interest
rate. These borrowings can be from governement or other multinational financial institutions.
Amount in NPR

Group Bank
Current Previous Current Previous
Year Year Year Year
Domestic Borrowing
Nepal Government - - -
Other Institutions 18,000,000 - -
Other - - -
Sub total 18,000,000 - - -
Foreign Borrowing
Foreign Bank and Financial Institutions - - -
Multilateral Development Banks - - -
Other Institutions - - -
Sub total - - - -
Total 18,000,000 - - -

4.22 PROVISIONS

A provision is recognised when the bank has a present legal or constructive obligation as a result of a
past event and it is probable that an outflow of economic benefits will be required to settle the obligation,
and a reliable estimate can be made of the amount of the obligation. Where the effect of the time value
of money is material, the amount of a provision is determined by discounting the anticipated future cash

GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19 115

 flows expected to be required to settle the obligation at a pre-tax rate that reflects the risks specific to
the liability.
A provision for onerous contracts is recognised when the expected benefits to be derived by the bank
from a contract are lower than the unavoidable cost of meeting the obligations under the contract. The
provision is measured at the present value of the lower of the expected cost of terminating the contract
and net cost of continuing with the contract. Before a provision is established, the bank recognises any
impairment loss on the asset associated with that contract.
There has not been any instances or arise of any obligation for which the bank is required to make the
provisions for them. Any provisions that arises are reviewed at each reporting date and adjusted to
reflect the current best estimate.
Amount in NPR

Group Bank
Previous Previous
Current Year Current Year
Year Year
Provisions for redundancy - - - -
Provision for restructuring - - - -
Pending legal issues and tax litigation - - - -
Onerous contracts - - - -
Other - - - -
Total - - - -

4.22.1: Movement in provision

Group Bank
Current Year Previous Year Current Year Previous Year
Opening Balance - - - -
Provisions made during the year - - - -
Provisions used during the year - - - -
Provisions reversed during the year - - - -
Unwind of discount - - - -
Closing Balance - - - -

4.23 OTHER LIABILITIES

Creditors and accruals are financial liabilities which are initially measured at fair value, and subsequently
measured at amortised cost. These includes any payables to the vendors by bank for service gained from
them in the business operation.
Bank makes the provisions for long term benefits in the form of gratuity and accrued leave which are
payable at the time of retirement or termination. These long term benefits are provided on the basis of
actuarial valuation. The bank also makes a provision for staff bonus at 10% of profit before tax and after
bonus as a short term benefits for the service rendered to the bank.
Defined benefit obligation has been valued as per actuarial valuation. Actuarial valuation has been
conducted only for the parent.Liabilities accrued for subsidiaries are not valued using actuarial valuation.
So all the disclosures in Note 4.23.1 to 4.23.6 are the disclosure pertaining to the bank financial statements.

116 GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19

 Bank is under obligation to deposit the tax deducted at source collected from the payment of interest on
deposits, borrowings, and other vendors by the 25th of next month (Nepali Calendar). These liabilities to
inland revenue are presented separately from other liabilities.
All other liabilities in the form of bills payable, interest payable on deposits and borrowings, unpaid
dividend are measured at amortized cost.
Amount in NPR

Group Bank
Current Year Previous Year Current Year Previous Year
Liability for employees defined
372,860,965 345,449,674 368,137,661 342,379,252
benefit obligations
Liability for long-service leave 166,821,195 142,128,405 162,594,439 139,684,118
Short-term employee benefits 1,379,072 622,384 442,689 301,394
Bills payable 27,582,259 15,626,815 27,582,259 15,626,815
Creditors and accruals 1,897,296,822 2,370,512,269 1,575,747,432 2,044,184,375
Interest payable on deposits 157,513,303 182,367,293 130,161,781 172,777,370
Interest payable on borrowing 63,962,236 34,566,443 63,962,236 34,566,443
Liabilities on deferred grant
- - - -
income
Unpaid dividend 31,222,390 31,845,964 30,431,965 31,060,174
Liabilities under Finance Lease - - - -
Employee bonus payable 408,259,964 294,329,243 393,391,826 291,197,644
Other statutory liabilities 162,340,244 163,378,364 161,898,443 161,141,603
Other liabilities 123,778,536 121,999,508 97,000,285 96,977,177
Total 3,413,016,987 3,702,826,363 3,011,351,016 3,329,896,365
4.23.1. Defined benefit obligations
The amounts recognised in the statement of financial position are as follows:
Amount in NPR

Group Bank
Current Previous Current Previous
Year Year Year Year
Present value of unfunded obligations 530,732,100 482,063,370
Present value of funded obligations - -
Total present value of obligations 530,732,100 482,063,370
Fair value of plan assets - -
Present value of net obligations 530,732,100 482,063,370
recognized liability for defined benefit
530,732,100 482,063,370
obligations

GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19 117

4.23.2. Plan Assets
Amount in NPR
Group Bank
Current Previous Previous
Current Year
Year Year Year
Equity securities - - - -
Government bonds - - - -
Bank deposit - - - -
Other - - - -
Total - - - -
Actual Return on Plan Assets - - - -
4.23.3. Movement in the present value of defined benefit obligations
Amount in NPR

Group Bank
Current Previous
Current Year Previous Year
Year Year
Defined benefit obligations at Shrawan 1 - - 482,063,370 394,810,481
Actuarial losses/(gains) - - 3,879,921 37,446,711
Benefits paid by the plan - - (75,986,620) (56,069,824)
Current service costs and interest - - 120,775,429 105,876,002

Defined benefit obligations at Asar end - - 530,732,100

482,063,370

4.23.4. Movement in the fair value of plan assets

Amount in NPR

Group Bank
Current Previous Previous
Current Year
Year Year Year
Fair value of plan assets at Shrawan 1 - - - -
Contributions paid into the plan - - - -
Actuarial losses - - - -
Benefits paid by the plan - - - -
Expected return on plan assets - - - -
Fair value of plan assets at Asar end - - - -

118 GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19

4.23.5: Amount recognised in profit or loss
Amount in NPR

Group Bank
Previous Previous
Current Year Current Year
Year Year
Current service costs - - 80,276,835 86,519,665
Interest on obligation - - 40,498,594 31,120,834
Expected return on plan assets - - - -
Total - - 120,775,429 117,640,499

4.23.6: Amount recognised in other comprehensive income

Amount in NPR

Group Bank
Current Previous Previous
Current Year
Year Year Year
Actuarial (gain)/loss for the period - - (16,800,614) 25,682,214
Total - - (16,800,614) 25,682,214

4.23.6: Actuarial assumptions

Previous
Current Year
Year
Discount rate 9% 9%
Expected return on plan asset 0% 0%
Future salary increase As per Level As per Level
Withdrawal rate 12% 10%

4.24 DEBT SECURITIES ISSUED

The bank has issued 15,000,000 debentures of Rs 1000 each during the financial year on 28th Chaitra
2075 (11th April 2019). The debenture carries an interest rate of 10.25 % per annum payable semi-
annually and the term of the bond is 5 years from the date of issue. Debenture is measured at amortized
cost using the effective interest rate. All the transaction cost incurred upto the time of allotment formed
part of effective interest rate. During the financial year 10% GBL Debenture 2075-76 was matured on
Asar 30 2076. The bond was issued in financial year 2068-69 and contained 10% coupoun rate interest
payable semi-annually.
As per the NRB directive No. 16 licensed institutions which have issued the debentures shall compulsorily
create the capital redemption reserve proportionately for the maturity term. Nepal Rastra Bank has
exempted from creating the debenture redemption reserve on the year of issue of debenture and year
of redemption. Hence no any amount has been transferred to debenture redemption reserve in current
financial year however Rs. 57,142,857 was transferred in financial year 2074-2075.
During the financial year Rs. 347,619,047 has been withdrawn from debenture redemption reserve
because of the maturity of 10% GBL debenture 2075-76.

GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19 119

 Amount in NPR

Group Bank
Current Year Previous Year Current Year Previous Year
Debt securities issued
designated as at fair value - - - -
through profit or loss
Debt securities issued at
1,496,452,596 400,000,000 1,496,452,596 400,000,000
amortized cost
Total 1,496,452,596 400,000,000 1,496,452,596 400,000,000

4.25 SUBORDINATED LIABILITIES

These are the liabilities which are in lower ranks to the borrowers and other debts in terms of obligations.
These are the unsecured liabilities which are repaid only after the depositors in case of liquidation. The
bank has not issued any subordinated liabilities till the date of reporting from its inception.
Amount in NPR

Group Bank
Current Previous Previous
Current Year
Year Year Year
Redeemable preference shares - - - -
Irredeemable cumulative preference
- - - -
shares (liabilities component)
Other - - - -
Total - - - -

4.26 SHARE CAPITAL

Ordinary share capital represents the par value of ordinary shares issued. Share issuance cost which
were incurred for raising the capital has not been shown as deduction from share capital but are charged
to statement of profit or loss. Share premium represents the excess consideration received by the bank
over the par value of ordinary shares issued, and is classified as equity.
Amount in NPR

Group Bank
Current Year Previous Year Current Year Previous Year
Ordinary shares 10,310,515,959 8,888,375,827 10,310,515,959 8,888,375,827
Convertible preference shares
- - - -
(equity component only)
Irredeemable preference
shares (equity component - - - -
only)
Perpetual debt (equity
- - - -
component only)
Total 10,310,515,959 8,888,375,827 10,310,515,959 8,888,375,827

120 GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19

4.26.1: Ordinary shares
Amount in NPR

Group Bank
Current Year Previous Year Current Year Previous Year
Authorized Capital
160,000,000 Ordinary share of Rs. 100 each 16,000,000,000 10,000,000,000 16,000,000,000 10,000,000,000
Issued capital
103,105,159.59Ordinary share of Rs. 100 each 10,310,515,959 8,888,375,827 10,310,515,959 8,888,375,827
Subscribed and paid up capital
103,105,159.59 Ordinary share of Rs. 100 each 10,310,515,959 8,888,375,827 10,310,515,959 8,888,375,827
Total 10,310,515,959 8,888,375,827 10,310,515,959 8,888,375,827

4.26.2: Ordinary shares ownership

Amount in NPR

Current Year Previous Year

Percent Amount Percent Amount
Domestic ownership 100% 100%
Nepal Government 0.00% 0.00%
"A" class licensed institutions 0.00% 0.00%
Other licensed institutions 0.00% 0.00%
Other Institutions 15.52% 1,600,630,661 15.82% 1,405,952,590
Public 48.80% 5,032,030,786 48.80% 4,337,957,574
Other 35.67% 3,677,854,471 35.38% 3,144,465,627
Foreign ownership 0% 0%
Total 100% 10,310,515,918 100% 8,888,375,791

4.26.3: Share ownership 0.5% and above

Current Year Previous Year

Name of shareholders No. of Shares Percent No. of Shares Percent
World Wide Investment 6,824,206.39 6.62% 5,261,974.25 5.92%
IME Investment Pvt. 6,156,474.85 5.97% 5,307,306.13 5.97%
Sumit Kumar Agarwal 3,125,616.38 3.03% 2,694,496.88 3.03%
Continental Investment 2,830,671.17 2.75% 2,440,233.96 2.75%
Bishnu Prasad Neupane 2,745,935.39 2.66% 802,327.06 0.90%
Uttam Kumar Nepal 2,313,811.89 2.24% 2,518,308.29 2.83%
Homeland Developers 2,211,855.18 2.15% 1,906,771.71 2.15%
Usha Investment 2,088,580.47 2.03% 2,445,459.77 2.75%
Sandeep Agarwal 1,672,391.84 1.62% 1,442,717.11 1.62%
Hem Raj Dhakal 1,649,606.19 1.60% 1,419,601.30 1.60%
Cabinet Shrestha 1,560,693.70 1.51% 1,147,828.61 1.29%

GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19 121

 Current Year Previous Year
Name of shareholders No. of Shares Percent No. of Shares Percent
Suraj Kumar Shrestha 1,343,766.57 1.30% 1,208,419.63 1.36%
Binod Kumar Bhimsaria 1,105,585.25 1.07% 953,090.73 1.07%
Nimisha Investment Pvt. 1,018,046.45 0.99% 877,626.25 0.99%
Durga Prasad Neupane 893,525.25 0.87% 1,288,106.39 1.45%
Tikaram Neupane 815,903.17 0.79% 703,365.67 0.79%
Shovakar Neupane 757,310.38 0.73% 628,721.78 0.71%
Shasa Shrestha 699,780.93 0.68% 603,160.47 0.68%
Mala Investment 674,815.34 0.65% - -
Prabha Goenka Bhimsaria 654,631.85 0.63% 564,337.80 0.63%
Susan Vaidya Shrestha 652,579.21 0.63% 562,568.29 0.63%
Suhrid Raj Ghimire 513,979.63 0.50% 443,086.22 0.50%

4.27 RESERVES
Statutory Reserves
Statutory reserves represents the mandatory reserves maintained by the bank as per Nepal Rastra Bank
directives. This includes general reserve,exchange equilization reserve, capital redemption reserve,
investment reserve, interest capitilized reserves, corporate social responsibility reserve, training and
development reserve and other reserve notified by Nepal Rastra Bank. These reserves are not available
for distribution of dividend to the shareholders.
Amount in NPR

Group Bank
Current Year Previous Year Current Year Previous Year
Statutory general reserve 2,564,971,175 2,003,034,229 2,547,591,343 1,995,200,610
Exchange equalization reserve 121,192,258 99,158,504 121,192,258 99,158,504
Corporate social responsibility reserve 43,906,143 26,010,057 43,428,258 25,822,611
Capital redemption reserve - 347,619,047 - 347,619,047
Training Reserve 9,112,564 10,650,889 9,112,564 10,650,889
Interest capitalized reserve 43,720,000 43,720,000 43,720,000 43,720,000
Investment adjustment reserve 42,956,262 222,956,262 42,956,262 222,956,262
Capital reserve 22,605,030 - - -
Other reserve 3,909,747 456,934 - -
Assets revaluation reserve - - - -
Dividend equalization reserve - - - -
Deferred Tax Reserve 11,332,142 9,724,792 - -
Fair value reserve (3,199,623) 17,249,845 (2,155,546) 18,066,509
Regulatory reserve 579,293,295 479,083,924 550,314,646 476,164,212
Actuarial gain/(loss) 1,872,130 (9,888,299) 1,872,130 (9,888,300)
Total 3,441,671,122 3,249,776,184 3,358,031,915 3,229,470,345

122 GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19

a. General Reserve
According to Banks and Financial Institutions Act, 2073 amount equal to 20% of net profit from each year
is transferred to the general reserve fund. No type of dividend (cash or bonus share) shall be distributed
from the amount in general/statutory reserve fund without prior approval of Nepal Rastra Bank .
b. Exchange Equalization Reserve
Financial Institutions which has earned foreign exchange revaluation gain on foreign currency other than
Indian Currency has to allocate 25% of such revaluation gain to his reserve as per Banks and Financial
Institutions Act, 2073.
c. Regulatory Reserve
Regulatory reserve represents the reserves created as a result of first time adoption of NFRS in Nepal.
These reserve are the amounts allocated from profit or retained earnings of the Bank as per the Directive
of NRB for the purpose of implementation of NFRS.
These include interest income recognized but not received in cash, fair value of investment property,
amount equal to deferred tax asset in financial statement, amount equal to actuarial (loss) recognized
till date or reporting. These reserves too are not available for distribution of dividend to shareholders.
Amount in NPR

Deferred Tax Investment Investment Accrued Actuarial Total Regulatory

Reserve Property Fair Value Interest Gain/Loss Reserve

Balance as on Asar 32 2075 177,846,130 91,917,079 - 196,512,704 9,888,299 476,164,212

Transfer during the period 34,232,289 26,768,385 2,155,546 20,882,512 84,038,733
(Withdrawal) during the
(9,888,299) (9,888,299)
period
Balance as on Asar 31 2076 212,078,419 118,685,464 2,155,546 217,395,216 - 550,314,646

d. Fair Value Reserve

The fair value reserve comprises the cumulative net change in the fair value of financial assets that are
measured at fair value and the changes in fair value is recognized in other comprehensive income, until
the assets are derecognized. Difference of the purchase value and the market value of financial equity
instruments and mutual fund units are recognized as fair value reserve.
Amount in NPR

Fair Value Reserve

Balance as on Shrawan 1 2075 18,066,509
Transfer/(Withdrawal) during the period (20,222,056)
Balance as on Asar 31 2076 (2,155,547)
e. Revaluation Reserve
Fair value change of property and investment property if any revalued to match the market value of such
assets are included in revaluation reserve. These amounts are not available for distribution.
f. Other Reserves
i. Capital Redemption Reserve
Capital redemption reserve is created for the payment of future long term liability, which the bank

GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19 123

 has raised for its capital. This reserve includes the reserve set aside for redemption of Bank’s
debenture at its maturity.
ii. Interest Capitalized Reserve
Interest accrued in the loans provided to infrastructure project and are under the monatarium
period are capitalized and the same amount is kept in interest capitalized reserve.
iii. Investment Adjustment Reserve
Investment adjustment reserve are created as a cushion for adverse price movements in the bank’s
ivestments as per the directive issued by Nepal Rastra Bank. The Bank has created investment
adjustment reserve in the following investments as er directive of Nepal rastra Bank.
Amount in NPR
Investments Current Year Previous Year
Nepal Reinsurance Co. Limited 42,196,262 42,196,262
ICRA Nepal Ltd. 760,000 760,000
Nepal Electronics Payment System Ltd. - 15,000,000
Global IME Capital Limited - 165,000,000
Total (Balance as at 31st Asar 2076) 42,956,262 222,956,262
Addition/ (Withdrawal) during the year (180,000,000) 89,918,504
iv. Corporate Social Responsibility Reserve
As per NRB directive financial institutions are required to allocate 1% of its Net profit on Corporate
Social Responsibility Fund. Bank has used the fund in economic transformtion mainly in the field
of education, financial awareness, community conservation and community health by directly or
by support to various event organizers. This fund is used to expense out in next financial year in
the welfare of society as directed by the directive created as below:
Amount in NPR
CSR Reserve
Balance as on Shrawan 1 2075 35,822,611
Less: Corporate Social Responsibility expense during the year (10,153,889)
Add: Additional Reserve for the next financial year 27,745,509
Balance as on Asar 31 2076 43,414,230
V. Training Reserve
As per NRB directive financial institutions are required to incur minimum 3% of its total employee
expenses of previous year on training and development of their employees. This reserve is created
for the training and development of the Bank’s employees as per said directive as below:
Amount in NPR
Training Reserve
Balance as on Shrawan 1 2075 10,650,889
Less: Corporate Social Responsibility expense during the year (30,142,927)
Add: Additional Reserve for the next financial year 28,604,602
Balance as on Asar 31 2076 9,112,564

124 GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19

 The detail movement in the other reserves are as below:
Amount in NPR

Capital Interest Investment Training Actuarial Total Other

Redemption Capitalized Adjustment CSR Fund Reserve Gain/Loss Reserve
Reserve Reserve Reserve
Balance as on 347,619,047 43,720,000 222,956,262 25,822,611 10,650,889 (9,888,300) 640,880,509
Shrawan 1 2075
Transfer during the - - - 17,605,647 11,760,430 29,366,077
period
(Withdrawal) during (347,619,047) - (180,000,000) - (1,538,325) - (529,157,372)
the period
Balance as on Asar 31 - 43,720,000 42,956,262 43,428,258 9,112,564 1,872,130 141,089,214
2076

Retained earnings
Retained earnings represents the cumulative net earnings or profit after accounting for dividends to
shareholders and mandatory reserves required as per directives issued by Nepal Rastra Bank before
distributing dividend.
Amount in NPR

Group Bank
Current Year Previous Year Current Year Previous Year
Balance as on 1 Shrawan
st
1,561,267,902 2,047,458,949 1,460,832,125 1,957,821,861
2075
-add: profit for the year 2,892,357,853 2,151,225,994 2,761,953,667 2,101,363,149
-add: transfer from
- 249,104 -
merger
-less: transfer to
(111,705,020) (476,164,212) (84,038,733) (476,164,212)
regulatory reserves
-less: transfer from
9,888,299 - 9,888,299 -
regulatory reserves
-add: transfer from
529,157,372 89,544,608 529,157,372 89,544,608
statutory reserves
-less: transfer to statutory
(605,786,558) (614,825,051) (592,030,134) (595,664,950)
reserves
-less: cash dividend for FY
- (808,450,482) (808,034,166)
2073-2074
-less: scrip dividend for FY
- (808,034,166) (808,034,166)
2073-2074
-less: cash dividend for FY
(17,504,485) (12,236,842) -
2074-2075
-less: scrip dividend for FY
(1,432,225,382) (7,500,000) (1,422,140,132) -
2074-2075
Balance as at 31st Asar
2,825,449,981 1,561,267,901 2,663,622,463 1,460,832,125
2076

GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19 125

4.28 CONTINGENT LIABILITIES AND COMMITMENTS
Even though these obligations may not be recognized on the statement of financial position, they do
contain credit risk and are therefore part of the overall risk of the Bank.
Letters of credit and guarantees (including standby letters of credit) commit the Bank to make payments
on behalf of customers in the event of a specific act, generally related to the import or export of goods.
Guarantees and standby letters of credit carry a similar credit risk to loans.
Amount in NPR

Group Bank
Current Year Previous Year Current Year Previous Year
Contingent Liabilities 32,835,110,115 29,463,389,088 32,835,110,115 29,463,389,088
Undrawn disbursed
18,906,194,112 14,845,669,492 18,906,194,112 14,845,669,492
facilities
Capital commitments - - - -
Lease commitments - - - -
Litigations 120,490,779 127,167,730 120,490,779 127,167,730
51,861,795,006 44,436,226,309 51,861,795,006 44,436,226,309

4.28.1 Contingent liabilities

Contingent liabilities are possible obligations that arise out of past events and whose existence will
be confirmed only by the occurrence of or non-occurrence of one or more uncertain future events not
wholly within the control of the Bank. These can also be present obligations that arise from past events
but they are not recognized because it is not probable that an outflow of resources embodying economic
benefits will be required to settle the obligation, or the amount of the obligation cannot be measured
with sufficient reliability. Contingent liabilities are measured with the provisions of as defined in Nepal
Accounting Standard- NAS 37 - Provisions, Contingent Liabilities and Contingent Assets.
Amount in NPR

Group Bank
Current Year Previous Year Current Year Previous Year
1. Acceptances & Endorsements 1,453,802,342 1,493,331,284 1,453,802,342 1,493,331,284
2. Documentary Credit
Expiring within 6 Months 5,760,208,140 5,845,998,893 5,760,208,140 5,845,998,893
Expiring within 6 Months to 1 Year 492,921,462 327,757,711 492,921,462 327,757,711
Expiring after 1 Year 301,515,100 134,117,240 301,515,100 134,117,240
3. Bills for collection - -
4. Forward exchange contracts 8,187,952,152 6,381,728,835 8,187,952,152 6,381,728,835
5. Guarantees/Bonds
i.) Advance Payment Guarantee
Expiring within 6 Months 2,381,666,749 2,316,842,845 2,381,666,749 2,316,842,845
Expiring within 6 Months to 1 Year 1,699,907,831 1,227,920,607 1,699,907,831 1,227,920,607
Expiring after 1 Year 181,194,950 1,313,052,500 181,194,950 1,313,052,500
ii. Bid Bonds
Expiring within 6 Months 1,910,196,615 1,557,433,247 1,910,196,615 1,557,433,247

126 GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19

 Group Bank
Current Year Previous Year Current Year Previous Year
Expiring within 6 Months to 1 Year 21,622,000 1,150,000 21,622,000 1,150,000
Expiring after 1 Year - 4,427,000 - 4,427,000
iii. Performance Bonds
Expiring within 6 Months 3,078,600,888 2,207,451,038 3,078,600,888 2,207,451,038
Expiring within 6 Months to 1 Year 1,972,679,513 1,645,670,777 1,972,679,513 1,645,670,777
Expiring after 1 Year 3,906,341,679 3,830,186,381 3,906,341,679 3,830,186,381
iv. Other Guarantee/ Bonds
Expiring within 6 Months 781,709,915 547,128,000 781,709,915 547,128,000
Expiring within 6 Months to 1 Year 532,800,000 473,725,000 532,800,000 473,725,000
Expiring after 1 Year 51,500,000 28,300,000 51,500,000 28,300,000
6. Underwriting commitment - - - -
7. Contingent Liabilities on
120,490,779 127,167,730 120,490,779 127,167,730
Income Tax
Total 32,835,110,115 29,463,389,088 32,835,110,115 29,463,389,088

4.28.2 Undrawn and undisbursed facilities

To meet the financial needs of customers, the Bank enters into various irrevocable commitments
and contingent liabilities. These consist of financial guarantees, letters of credit and other undrawn
commitments to lend.
Amount in NPR

Group Bank
Current Year Previous Year Current Year Previous Year
1. Undisbursed amount of
loans
Expiring within 6 Months 3,228,448,394 840,786,704 3,228,448,394 840,786,704
Expiring within 6 Months to
2,193,379,340 32,238,553 2,193,379,340 32,238,553
1 Year
Expiring after 1 Year 12,922,954 1,326,088 12,922,954 1,326,088
2. Undrawn limits of
overdrafts
Expiring within 6 Months 3,299,656,586 3,490,254,608 3,299,656,586 3,490,254,608
Expiring within 6 Months to
2,132,339,996 2,651,556,329 2,132,339,996 2,651,556,329
1 Year
Expiring after 1 Year 11,002,066 16,794,468 11,002,066 16,794,468
3. Undrawn limits of credit
380,070,305 187,100,458 380,070,305 187,100,458
cards
4. Undrawn limits of letter
7,619,545,871 7,565,907,683 7,619,545,871 7,565,907,683
of credit
5. Undrawn limits of
28,828,600 59,704,600 28,828,600 59,704,600
guarantee
Total 18,906,194,112 14,845,669,492 18,906,194,112 14,845,669,492

GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19 127

4.28.3 Capital Commitments

There are no any Capital expenditure approved by relevant authority of the bank, which requires
provision in financial statements.
Amount in NPR

Current Previous Transition

Year Year Date
Capital commitments in relation to Property and
Equipment
Approved and contracted for - - -
Approved but not contracted for - - -
- - -
Capital commitments in relation to Intangible assets
Approved and contracted for - - -
Approved but not contracted for - - -
- - -
Total - - -

4.28.4 Lease Commitments

Lease commitments entered by bank for the leasing of spaces for expanding branch operations but
provision not made in financial statements.
Amount in NPR

Previous
Current Year
Year
Operating lease commitments
Future minimum lease payments under non-cancellable operating
lease, where the bank is lessee
Not later than 1 year
Later than 1 year but not later than 5 years
Later than 5 years

Finance lease commitments

Future minimum lease payments under non-cancellable finance lease,
where the bank is lessee
Not later than 1 year
Later than 1 year but not later than 5 years
Later than 5 years
- -
Total - -

128 GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19

4.28.5 Litigations

a. Income Tax
Tax assessment cases which are pending for decision under Supreme Court, Revenue Tribunal and
Inland Revenue Department there are provided below:
Amount in NPR

Cases at Estimated Contingent Liability

Supreme Court 55,942,704
Revenue Tribunal 46,777,797
Inland Revenue Department 17,770,278
Total 120,490,779
b. Others
Except for the above cases there are no other litigation cases, which will give rise to material outflow of
bank’s resources and affect the going concern of the bank

4.29 INTEREST INCOME

Interest income is recorded using the effective interest rate (EIR) method. EIR is the rate that exactly
discounts estimated future cash payments or receipts through the expected life of the financial instrument
or a shorter period, where appropriate, to the net carrying amount of the financial asset.
Interest incomes include interest income on loans and receivables to financial institutions and customers,
on cash balances and on bonds and other interest bearing securities in all financial assets. Once the
recorded value of a financial asset or a group of similar assets has been reduced due to an impairment
loss, interest income continues to be recognized using the rate of interest used to discount the future
cash flows for the purpose of measuring the impairment loss. On the basis of materiality the origination
fees on loans to customers or financial institution has not been considered in calculating the EIR.
The Bank has not recognized the interest income that has been accrued on the bad loans due to the
uncertainty of the cash flows. Further the Bank does not recognize accrued interest on Substandard
and Doubtful classified loans, unless such interest along with principal are covered by the collateral
valuation as defined by Nepal Rastra Bank Directives.
Amount in NPR

Group Bank
Current Year Previous Year Current Year Previous Year
-from cash and cash
196,960,677 87,052,444 173,061,687 55,420,739
equivalents
-from due from Nepal Rastra
- - - -
Bank
-from placements with bank
3,297,457 4,265,988 1,953,416 3,285,716
and financial institutions
-from loans and advances
to banks and financial 359,043,719 294,906,866 397,451,662 316,542,713
institutions

GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19 129

 Group Bank
Current Year Previous Year Current Year Previous Year
-from loans and advances to
12,744,414,210 10,699,476,321 12,347,481,177 10,571,702,024
customers
-from investment securities 507,897,426 486,499,324 507,897,426 486,499,324
-from loans and advances to
96,589,971 43,647,193 96,589,971 43,647,193
staff
-from others agency balance 22,467,011 26,222,605 6,449,458 4,634,340
13,930,670,471 11,642,070,742 13,530,884,797 11,481,732,049

4.30 INTEREST EXPENSE

Interest expense is recorded using the effective interest rate (EIR) method. EIR is the rate that exactly
discounts estimated future cash payments or receipts through the expected life of the financial instrument
or a shorter period, where appropriate, to the net carrying amount of the financial liability.
Interest expenses include interest on deposits from customers, deposits from banks, debt securities
issued, and other interest bearing financial liabilities.
Expenses for promotion and incentives provided to bring the deposits are not included in the calculation
of effective interest rate because of the immaterial nature and allocation of the cost to individual deposit
is not feasible.
Amount in NPR

Group Bank
Current Year Previous Year Current Year Previous Year
-on dues to bank and
224,240,347 107,533,456 66,777,051 62,077,109
financial institutions
-on dues to Nepal Rastra
- 16,781,922 - 16,781,922
Bank
-on deposit from customers 8,163,451,546 7,498,365,164 8,118,365,381 7,481,254,033
-on borrowings 25,815,332 4,735,030 22,493,962 4,735,030
-on debt securities issued 80,902,385 40,000,000 80,902,385 40,000,000
-on subordinated liabilities - - - -
Total 8,494,409,611 7,667,415,571 8,288,538,779 7,604,848,094

4.31 FEES AND COMMISSION INCOME

Fees and commission income earned from services that are provided over a certain period of time which
includes fees and commission collected from issuance of letter of credit, guarantees, and card related
fees are recognized on time proportion basis. Loan administration fees, service fees swap fees are
collected at the time of issuing new loans or renewal of underlying credit facilities. These fees collected
are in nature of fees charged by the bank for managing the loans and are collected at the range of 0% to
1 % of the loan size.
The management estimates that these fees collected are not an alternative for reduction of interest rate
charged to the customers and does not form part of calculating the effective interest rate. Other fees

130 GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19

 include commission income from remittance, custody and advisory fees as well as fees from insurance
brokerage, foreign exchange transactions.
Amount in NPR

Group Bank
Current Year Previous Year Current Year Previous Year
-from loan administration fees 251,031,080 172,322,761 249,859,930 171,928,761
-from service fees 204,441,440 135,469,967 104,994,393 91,508,540
-from consortium fees - - - -
-from commitment fees 161,400 194,065 161,400 194,065
-from D.D/ T.T/swift fees 19,101,019 13,450,418 19,101,019 13,450,418
-from credit card/ATM issuance
264,532,212 197,245,298 264,532,212 197,245,298
and renewal fees
-from prepayment and swap fees 5,607,960 7,171,549 5,607,960 7,171,549
-from investment banking fees - - - -
-asset management fees 7,165,807 8,176,073 - -
-from brokerage fees - - - -
-from remittance fees 181,678,781 167,912,147 181,678,781 167,912,147
-from commission on letter of
79,086,123 65,627,330 79,086,123 65,627,330
credit
-from commission on guarantee
179,553,929 156,363,987 179,553,929 156,363,987
contract issued
-from commission on share
18,108,552 9,284,741 - -
underwriting/issue
-from locker rental 5,320,250 4,372,225 5,320,250 4,372,225
-from other fees and commission
94,285,995 57,286,682 91,200,131 57,682,932
income
Total 1,310,074,547 994,877,243 1,181,096,127 933,457,252

4.32 FEES AND COMMISSION EXPENSE

Fee and commission expense relate mainly to transactions and services fees which are expensed as the
services are received. Fee and commission expense are recognized on an accrual basis.
Amount in NPR
Group Bank
Current Year Previous Year Current Year Previous Year
-on ATM management fees - - - -
-on VISA/Master card fees 75,711,687 54,601,929 75,711,687 54,601,929
-on guarantees - - - -
-on brokerage - - - -
-on D.D/ T.T/swift fees 8,602,031 6,628,376 8,602,031 6,628,376
-on remittance commission 80,024,003 76,886,679 80,024,003 76,886,679

GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19 131

 Group Bank
Current Year Previous Year Current Year Previous Year
-other commission expenses 74,400,522 36,724,556 52,095,846 36,661,249
Total 238,738,243 174,841,540 216,433,567 174,778,233
4.33 NET TRADING INCOME

Net trading income includes all gains and (losses) from changes in fair value, related capital gains/
losses, foreign exchange trading gains/ (losses), interest income from trading assets and dividend from
financial assets measured at fair value through profit or loss. Dividend income from assets is recognized
when the bank’s right to receive the payment is established.
Amount in NPR

Group Bank
Current Year Previous Year Current Year Previous Year
-from changes in fair value of
5,332,357 (32,856,036) - -
trading assets
-from gain/loss on disposal of
25,615,660 - - -
trading assets
-from interest income on trading
- - - -
assets
-from dividend income on
- - - -
trading assets
-from gain/loss foreign exchange
412,125,157 261,961,095 412,125,157 261,961,095
transaction
-from other trading income - - - -
Total 443,073,174 229,105,060 412,125,157 261,961,095

4.34 OTHER OPERATING INCOME

Gain/ (loss) from sale of investment securities, dividend on investment securities, gain/ (loss) on sale
of investment securities and properties, gain/ (loss) from trading of gold and silver and subsidies
received from the government or other financial institutions are recognized in other operating income.
Subsidy received for the purchase of equipment are deducted from the cost of related equipment. Profit
/ (loss) on sale of property and equipment are recorded when the control over those are transferred
to the buyer and fair consideration has been received. Profit / (loss) on sale of repossessed collateral
classified as investment property are recorded when control over those collateral are transferred and
a fair consideration has been received from the buyer. Dividend income from assets is recognized when
the bank’s right to receive the payment is established.
Amount in NPR

Group Bank
Current Year Previous Year Current Year Previous Year
-from foreign exchange
88,135,015 90,279,773 88,135,015 90,279,773
revaluation gain

132 GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19

 Group Bank
Current Year Previous Year Current Year Previous Year
-from gain/loss on sale of
16,424,361 62,428,481 16,424,361 62,428,481
investment securities
-from fair value gain/loss on
- - - -
investment properties
-from dividend on equity
39,333,469 23,536,791 35,606,539 21,516,432
instruments
-from gain/loss on sale of
5,953,376 620,971 5,953,376 643,957
property and equipment
-from gain/loss on sale of
- 872,060 - 872,060
investment property
-from operating lease income - - - -
-from gain/loss on sale of gold
3,784,539 1,237,753 3,784,539 1,237,753
and silver
-from others 32,668,232 40,616,757 13,153,816 21,185,481
Total 186,298,992 219,592,586 163,057,647 198,163,937

4.35 IMPAIRMENT CHARGE/ (REVERSAL) FOR LOANS AND OTHER LOSSES

Net impairment charge or reversal on loans are the movement in collective impairment allowance and
specific impairment allowance from the previous year on the basis of individual assessment of loans
and historical loss experience on loans. The Bank has applied the carve out as issued by Institute of
Chartered Accountants of Nepal Note no. 5 “Incurred Loss Model to measure the Impairment Loss on
Loan and advances” which gives the option to charge the impairment amount higher of incurred loss
model calculation and as per NRB directives. Net impairment losses relate to allowance recognized both
at individual and portfolio (collective) level. This includes recoveries on written-off-loans removed from
the statement of financial position in previous years.
Impairment charge/ (reversal) for loans and other losses comprise of impairment losses and reversal
of impairment on, investments, cash and bank balance measured at amortized cost and the account
receivable balance identified for impairment. Net impairment losses relate to allowance recognized at
individual assessment for those financial assets.
Amount in NPR
Group Bank
Current Year Previous Year Current Year Previous Year
-on loans and advances to B/FIs 2,480,163 10,446,671 4,993,569 12,396,671
-on loans and advances to customer 218,113,639 (297,254,962) 193,193,513 (302,227,456)
-on investment securities - - - -
-on cash and cash equivalents - (4,563) - (4,563)
-on placement with banks and financial
- - - -
institutions
-on property and equipment - - - -
-on goodwill and intangible assets - - - -
-on investment properties - - - -
-on account receivables - - - -
Total 220,593,802 (286,812,854) 198,187,082 (289,835,348)

GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19 133

4.36 PERSONNEL EXPENSES
Short Term Employee Benefits
The cost of all short-term employee benefits is recognized as an expense during the period in which the
employee renders the related service.
Accruals for employee entitlements to salaries, bonus and annual leave represent the amount which the
bank has a present obligation to pay as a result of employees’ services provided up to the reporting date.
The accruals have been calculated at undiscounted amounts based on current salary rates.
Defined Contribution Plans
A defined contribution plan is a post-employment benefit plan under which an Bank pays fixed contribution
into a separate bank (a fund) and will have no legal or constructive obligation to pay further contributions
if the fund does not hold sufficient assets to pay all employee benefits relating to employee services in the
current and prior periods, as defined in Nepal Accounting Standard – NAS 19 (Employee Benefits).
The contribution payable by the employer to a defined contribution plan in proportion to the services
rendered to bank by the employees and is recorded as an expense under ‘Personnel expenses’ as and
when they become due. Unpaid contributions are recorded as a liability under ‘Other liabilities’ in Notes
4.23. Bank contributed 10% on the salary of each employee to the Employees’ Provident Fund. The above
expenses are identified as contributions to ‘Defined Contribution Plans’ as defined in Nepal Accounting
Standards – NAS 19 (Employee Benefits).
Defined Benefit Plans- gratuity and unutilized accumulated leave
A defined benefit plan is a post-employment benefit plan other than a defined contribution plan.
Accordingly, staff gratuity and leave encashment has been considered as defined benefit plans as per
Nepal Accounting Standards – NAS 19 (Employee Benefits).
An actuarial valuation is carried out every year to ascertain the liability under gratuity and accumulated
leave. The liability recognized in the statement of financial position in respect of defined benefit plans is
the present value of the defined benefit obligation at the date of the statement of financial position less
the fair value of plan assets, together with adjustments for unrecognized actuarial gains or losses and
past service costs. The defined benefit obligation is calculated annually by independent actuaries using
the projected unit credit method.
Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions
are charged or credited to other comprehensive income. Interest cost, present service cost and past-
service costs are recognized in statement of profit or loss. The demographic assumptions underlying
the valuation are retirement age (58 years or 25 years of service whichever is earlier), early withdrawal
from service and retirement on medical grounds.
Staff Bonus
Bank provides annual staff bonus as per Bonus Act at 10% of profit before tax and after bonus.
Amount in NPR

Group Bank
Current Year Previous Year Current Year Previous Year
-salaries 506,219,174 406,157,649 450,042,256 368,882,246
-allowances 473,912,931 391,285,913 444,279,721 376,996,893
-gratuity 85,723,213 71,997,193 83,398,822 69,302,768

134 GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19

 Group Bank
Current Year Previous Year Current Year Previous Year
-provident fund 47,752,805 38,115,915 43,905,800 35,635,151
-uniform 730,921 240,012 - -
-training and development expenses 31,931,393 24,220,029 30,142,927 23,422,475
-leave encashment 60,817,053 48,975,461 58,057,141 48,337,731
-medical insurance 4,282,379 3,377,410 4,282,379 3,377,410
-life insurance 7,979,625 6,473,469 7,157,174 6,041,151
-employee incentives - - - -
-cash settled share-based payments - - - -
-pension expenses - - - -
-finance expense under NFRS 31,155,666 69,539,912 31,155,666 69,539,912
-other staff expenses 33,848,365 21,704,771 33,848,165 21,490,919
1,284,353,524 1,082,087,734 1,186,270,053 1,023,026,655
-employees bonus 408,259,964 294,329,244 393,391,826 291,197,644
Total 1,692,613,488 1,376,416,978 1,579,661,879 1,314,224,299

4.37 OTHER OPERATING EXPENSES

Bank operates in a competitive environment for making the banking service easily available and
accessible to the public. The bank incurs various expenses in form of lease rent, travelling, security, fuels
and electricity, communication and advertisements and directly related expenses. These expenses are
incurred and accounted on an accrual basis and are charged to income statement unless those expenses
form the capital nature.
Amount in NPR

Group Bank
Current Year Previous Year Current Year Previous Year
-directors' fees 2,877,700 2,955,000 1,732,000 1,659,000
-directors' expenses 3,490,499 2,773,034 3,094,197 2,519,276
-auditor's remuneration 2,536,616 2,635,160 2,260,000 2,260,000
-other audit related
340,591 517,609 - 217,280
expenses
-professional and legal
7,110,429 8,780,469 6,799,429 8,390,469
expense
-office administration
644,151,182 572,112,581 618,350,827 550,749,518
expenses
-operating lease expenses 228,750,034 193,612,274 217,158,922 185,433,538
-operating expense on
- - - -
investment properties
-corporate social
10,013,889 15,252,615 10,013,889 15,252,615
responsibility expenses
-onerous lease provisions - - - -

GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19 135

 Group Bank
Current Year Previous Year Current Year Previous Year
-other operating expenses - - - -
Total 899,270,940 798,638,743 859,409,263 766,481,696

4.37.1 Office administration expenses

Group Bank
Current Year Previous Year Current Year Previous Year
Water & electricity 39,827,641 35,187,944 38,734,470 34,374,541
Repairs and maintenance - - - -
(a) Building 369,474 419,408 369,474 419,408
(b) Vehicle 6,327,333 6,359,683 6,100,220 6,163,410
(c) Computer and accessories 659,408 1,057,268 659,408 1,057,268
(d) Office equipment and
7,280,464 11,513,255 7,280,464 11,118,605
furniture
(e) Other repairs 8,496,969 9,086,144 7,207,221 8,686,635
Insurance 7,906,672 7,142,293 7,620,890 6,860,523
Postage, telex, telephone, fax 46,038,754 43,254,989 43,807,760 41,751,628
Printing and stationery 62,951,967 59,435,441 58,810,281 55,451,246
Newspaper, books and journals 1,768,928 433,737 1,726,701 382,875
Advertisement 36,626,720 45,671,309 35,890,170 44,460,297
Donation - 60,000 - 60,000
Security expenses 146,691,111 95,791,325 145,673,238 95,264,677
Deposit and loan guarantee
44,670,075 41,100,934 44,670,075 41,100,934
premium
Travel allowance and expenses 37,122,775 35,766,647 34,311,030 33,946,999
Entertainment 2,492,448 3,763,337 2,492,448 3,759,950
Annual/special general meeting
1,636,211 981,437 1,403,592 649,163
expenses
Other - - - -
(a) ATS/AMC expenses 57,510,360 45,141,106 56,098,297 43,921,227
(b) Bank charges 6,366,178 5,217,665 5,922,155 5,151,719
(c) Business promotion 25,717,748 26,443,166 25,717,748 26,443,166
(d) Cleaning & gardening 14,460,215 10,223,142 14,220,274 10,210,274
(e) Fees & taxes 22,198,839 16,852,636 22,198,839 16,852,636
(f) Fuel & other lubricants 23,376,569 20,125,500 21,830,982 19,290,666
(g) Membership fees 1,279,036 1,771,420 847,370 1,630,570
(h) Office goods and supply 8,092,873 11,853,736 8,092,873 11,853,736
(i) Pantry expenses 9,385,873 10,419,345 8,056,157 7,210,352
(j) Share registration expenses 8,559,843 8,237,297 8,559,843 8,237,297
(k) Others 16,336,698 18,802,416 10,048,846 14,439,713
Total 644,151,182 572,112,581 618,350,827 550,749,518

136 GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19

4.38 DEPRECIATION AND AMORTIZATION

Depreciation of Property, and Equipment

Bank provides depreciation from the subsequent month of assets being put to use, while no depreciation
is charged in the month of disposal, at the following rates on a straight line basis over the periods
appropriate to the estimated useful lives of asset’s future economic benefits are expected to be consumed
by the bank. Leased assets are amortized over the period of 5 years or lease term which is earlier.
Freehold lands are not depreciated as they are non depreciable assets.
Depreciation of an asset ceases at the earlier of the date that the asset is classified as held for sale or the
date the asset is derecognised. Depreciation does not cease when the asset becomes idle or is retired
from active use unless the asset is fully depreciated.
Property & Equipment Expected Life
Building 40 Years
Vehicle 5 Years
Furniture- Wooden 5 Years
Furniture- Metal 10 Years
Office Equipment 5 Years
Computer 5 Years
Machinery including ATMs 5 Years

Amortization of Intangible Assets

Intangible assets,except for goodwill, are amortized on a straight line basis in the Statement of Profit or
Loss from the subsequent month of assets being put to use, over the best estimate of its useful economic
life based on a pattern in which the asset’s economic benefits are consumed by the Bank. The useful life
estimated by the Bank is 5 years from the date put to use. Bank assumes that there is no residual value
for its intangible assets.
Amount in NPR

Group Bank
Current Year Previous Year Current Year Previous Year
-on property and equipment 235,300,383 236,681,612 226,789,905 231,676,021
-on investment property - - - -
-on software and intangibles 12,616,185 12,817,501 11,514,529 12,068,961
Total 247,916,568 249,499,113 238,304,434 243,744,981

4.39 NON OPERATING INCOME

Non-operating income are those generated by activities outside of the core operating activities of the
banks. These includes recovery for earlier written off loans. Share of profit from investment in associates
are shown separately as non-operating income as equity method has only been applied while preparing
consolidated financial statements.

GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19 137

 Amount in NPR

Group Bank
Current Year Previous Year Current Year Previous Year
-from recovery of written off loans 27,289,531 1,888,454 27,289,531 1,888,454
-from other income - 386,904 - -
-from share of profit from investment
40,899,015 30,178,142 - -
in associates
Total 68,188,546 32,453,501 27,289,531 1,888,454

4.40 NON OPERATING EXPENSES

Non-operating expenses are those incurred outside of the core operating activities of the banks. These
includes write off for uncollectible loans and others like expenses of redundancy and restructuring.
Amount in NPR

Group Bank
Current Year Previous Year Current Year Previous Year
-on loan written off - 150,984,395 - 150,984,395
-on redundancy provision - - - -
-on expense of restructuring - - - -
-on other expense - - - -
Total - 150,984,395 - 150,984,395

4.41 INCOME TAX EXPENSE

Current Taxation
‘Current tax’ comprises the expected tax payable or receivable on the taxable income or loss for the year
and any adjustment to the tax payable or receivable in respect of previous years. The amount of current
tax receivable or payable is the best estimate of the tax amount expected to be paid or received that
reflects uncertainty related to income taxes, if any. It is measured using tax rates enacted or substantively
enacted, as at the reporting date. Accordingly, provision for taxation is based on the profit for the year
adjusted for taxation purpose in accordance with the provisions of the Income Tax Act.
Deferred Taxation
Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets
and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax
is not recognised for:
ƒ temporary differences on the initial recognition of assets or liabilities in a transaction that is not a
business combination and that affects neither accounting nor taxable profit or loss;
ƒ temporary differences related to investments in subsidiaries to the extent that it is probable that
they will not reverse in the foreseeable future; and
ƒ taxable temporary differences arising on the initial recognition of goodwill.
Deferred tax assets are recognised for unused tax losses, unused tax credits and deductible temporary

138 GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19

 differences to the extent that it is probable that future taxable profits will be available, against which
they can be used. Deferred tax assets are reviewed at each Reporting date and are reduced to the extent
that it is no longer probable that the related tax benefit will be realised. Unrecognised deferred tax
assets are reassessed at each reporting date and recognised to the extent that it has become probable
that future taxable profits will be available, against which they can be used.
Deferred tax is measured at the tax rates that are expected to be applied to temporary differences
when they reverse, i.e. using tax rates enacted or substantively enacted as at the reporting date. The
measurement of deferred tax reflects the tax consequences that would follow the manner in which the
Bank expects as at the reporting date to recover or settle the carrying amount of its assets and liabilities.
This Note includes the major components of tax expense, the effective tax rates and a reconciliation
between the profit before tax and tax expense, as required by the Nepal Accounting Standard – NAS 12
on ‘Income Taxes’.
Amount in NPR

Group Bank
Current Year Previous Year Current Year Previous Year
-current tax expense
-income tax expense based on
1,245,969,517 920,657,758 1,202,570,465 903,324,893
profit for current year
-adjustment for prior years
- 45,190,884 45,190,884
under/(over) provision
1,245,969,517 965,848,642 1,202,570,465 948,515,777
-deferred tax expense
-origination and reversal of
(27,968,044) (145,936,557) (30,605,877) (137,902,491)
temporary differences
-change in tax rates - - -
-recognition of previously
- - -
unrecognized tax losses
(27,968,044) (145,936,557) (30,605,877) (137,902,491)
Total income tax expenses 1,218,001,473 819,912,085 1,171,964,588 810,613,286

4.41.1: reconciliation of tax expense and accounting profit

Amount in NPR

Group Bank
Current Year Previous Year Current Year Previous Year
Profit before tax 3,933,918,255 2,911,976,436
Tax Amount at rate of 30% 1,180,175,477 873,592,931
Add: Tax effect of expenses
that are not deductible for tax 98,219,107 169,292,229
purpose
Less: Tax effect on exempt
(9,840,384) (5,075,712)
income

GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19 139

 Group Bank
Current Year Previous Year Current Year Previous Year
Add/(Less):Tax effect on NFRS
45,190,884
adjustments
Less: Tax effect of expenses
that are deductible for tax (65,983,734) (134,484,554)
purpose
Total Income tax - - 1,202,570,465 948,515,777
Effective tax rate 30.57% 32.57%

4.42 EARNINGS PER SHARE

The bank presents basic and diluted Earnings per Share (EPS) for its ordinary shares. Basic earnings per
share (EPS) is calculated by dividing the net profit for the year attributable to ordinary equity holders of
Bank by the weighted average number of ordinary shares outstanding during the year.
Diluted Earnings per Share is determined by adjusting both the profit attributable to the ordinary equity
holders and the weighted average number of ordinary shares outstanding, for the effects of all dilutive
potential ordinary shares if any.
a. Earnings per Share: Basic

Bank
Current Year Previous Year
Amount used as the numerator
Profit after tax for the year attributable to equity holder (Rs) 2,761,953,667 2,101,363,149
No. of ordinary shares used as the denominator
Weighted average number of ordinary shares 104,365,160 88,883,758
Basic/Diluted earnings per ordinary shares (Rs) 26.46 23.64
b. Earnings per Share: Diluted

Bank
Current Year Previous Year
Amount used as the numerator
Profit after tax for the year attributable to equity holder (Rs) 2,761,953,667 2,101,363,149
No. of ordinary shares used as the denominator
Weighted average number of ordinary shares 104,365,160 88,883,758
Basic/Diluted earnings per ordinary shares (Rs) 26.46 23.64
c. Weighted average Number of Ordinary Shares for basic/Diluted EPS

Current Year Previous Year

Number of Shares held at 1st of Shrawan 88,883,758 80,803,417
Add: Additional shares issued - -
Add: Number of shares issued due to final bonus 14,221,401 8,080,342

140 GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19

 Current Year Previous Year
103,105,160 88,883,758
Add: Additional shares issued to acquired entity in 18th Bhadra
1,260,000
2076
Adjusted Number of Shares eligible EPS calculation 104,365,160 88,883,758
The Bank has acquired one “C” class financial institution namely Hathway Finance Ltd on 4th September
2019. With this acquisition the Bank has restated the earnings per share as the acquired shares are
eligible to participate in the dividend distribution of current financial year.

4.43 PROPOSED AND DISTRIBUTED DIVIDEND

Provision for final dividend are recognised at the time the dividend is recommended by the Board of
Directors, and approved by the shareholders. Following are the details for dividend paid and proposed
during the financial year.
Amount in NPR

Current Year Previous Year

Final dividend paid for FY 2074-75 & 2073-74 respectively
Bonus shares distributed 1,422,140,132 808,034,166
Cash dividend paid - 808,034,166
1,422,140,132 1,616,068,332
Dividend paid per ordinary share of Rs 100 each 16.00 20.00

Final dividend proposed for FY 2075-76 & 2074-75

respectively
Bonus shares proposed 1,330,655,780 1,422,140,132
Cash dividend proposed 1,330,655,780 -
2,661,311,560 1,422,140,132
Dividend proposed per ordinary share of Rs 100 each 25.50 16.00

GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19 141

 STATEMENT OF DISTRIBUTABLE PROFIT OR LOSS
For Year ended 31st Asar 2076 (16th July, 2019)
(As per NRB Regulation)

Amount in NPR

Current Year Previous Year

Net profit or (loss) as per statement of profit or loss 2,761,953,667 2,101,363,149
Appropriations:
a. General reserve (552,390,733) (420,272,630)
b. Foreign exchange fluctuation fund (22,033,754) (22,569,943)
c. Capital redemption reserve 347,619,047 (57,142,857)
d. Corporate social responsibility fund (17,605,647) (21,013,631)
e. Employees' training fund 1,538,325 389,502
f. Investment adjustment Reserve 180,000,000 (89,918,504)
g. Interest capitalize Reserve - -
h. Other
Profit or (loss) before regulatory adjustment 2,699,080,905 1,490,835,086
Regulatory adjustment :
a. Interest receivable (-)/previous accrued interest received (+) (20,882,512) (196,512,704)
b. Short loan loss provision in accounts (-)/reversal (+) -
c. Short provision for possible losses on investment (-)/reversal (+) (2,155,546) -
d. Short loan loss provision on Non-Banking Assets (-)/reversal (+) (26,768,385) (91,917,079)
e. Deferred tax assets recognized (-)/ reversal (+) (34,232,289) (177,846,130)
f. Goodwill recognized (-)/ impairment of Goodwill (+) -
g. Bargain purchase gain recognized (-)/reversal (+) -
h. Actuarial loss recognized (-)/reversal (+) 9,888,299 (9,888,299)
i. Other -
Distributable profit or /(loss) 2,624,930,471 1,014,670,873

142 GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19

5. ADDITIONAL DISCLOSURES AND INFORMATION
5.1. RISK MANAGEMENT (companies, individuals, banks, financial
institutions, states etc) to perform their
Risk is inherent in the Bank’s activities, obligation towards Bank. Credit risk is
it is managed through an integrated risk paramount that bank is exposed to during
management framework, including ongoing the normal course of lending and credit
identification, measurement and monitoring, under writing. Global IME Bank’s credit
subject to risk limits and other controls. This Policy Guidelines is the highest level
process of risk management is critical to policy document and it reflects long-term
the Bank’s continuing profitability and each expectations and represents a key element of
individual within the Bank is accountable uniform, constructive and risk-aware culture
for the risk exposures relating to his or her throughout the Bank in addition to other
responsibilities. The Bank is exposed to credit product paper “Regulatory Retail Portfolio”
risk, liquidity risk, market risk, operational and “Claims Secured by Residential Property”.
risk, liquidity risk, legal and compliance risks. Number of proactive credit risk management
It is also subject to country risk and various techniques and tools under a broad risk
operating and business risks. framework used by the Bank is outlined below:

Credit Risk: ƒ Credit applications undergo a

comprehensive credit evaluation and
The Bank’s credit strategy is based on a clear Bank has procedures for Credit Approval
understanding of various risks, disciplined for both retail and corporate credit
risk assessment and measurement procedures proposals that ensure appropriate
and continuous monitoring. resources and tools are employed for
the type of credit assessment.
ƒ The threshold of credit proposals that ƒ Credit proposals are routed through
Credit Risk Management unit supervised Credit Risk Department with evaluation
has been reduced from existing level of of underlying risk, where borrowers
NPR. 10 Million to NPR. 5 Million on are classified according to risk grade
individual account. to reflect the risk of default. Lending
ƒ Post Loan Disbursement Monitoring is authority has not been assigned to the
being made more effective. staff under Credit Risk Department
ƒ Credit Risk Management Policy of the and headed by Chief Manager. This
Bank has been approved and under department is independent of business
implementation. unit and directly reporting to Board
ƒ Portfolio Analysis of the risk asset Level RMC.
exposure of the bank is being carried out. ƒ Primary importance is given on
ƒ The Bank has been using BRR (Borrower understanding and assessing the
Risk Rating Model) model to assess existing and future cash flows of the
the associated risk with respect to the business whereas secondary security is
borrower and have been also making taken as fixed asset collateral security
the loan pricing based on the risk based and personal guarantee / third part
model. guarantee to support the life of loan as
ƒ The bank have established the credit well as cash collateral to the possible
monitoring practice through system extent.
developed reports, business site visits. ƒ Once credit proposals are forwarded
from Credit Risk Department, underling
Credit Risk risks pointed out shall be addressed
properly by lending officers with
Credit Risk is the failure of customers mitigants before approval. Bank is

GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19 143

 having various level approving authority Periodic business evaluation and quality
depending upon proposed limits, of security / collateral to be done so as to
inherent risks etc. Credit limits are avoid event of any negative downturns
approved under dual approval system. in their values. Various credit portfolio
ƒ Approved loans are forwarded to analyses to single client group, product
Credit Administration Department and segment wise exposures etc. are
that administers the post approval reviewed on regular frequency and used
processes including review of security to form strategies in future. Compliance
documentation, contracts and other of Acts, Policies and Laws promulgated
legal paper in line with NRB directives, by various governing bodies like
CPG, Product Papers and as per the Unified Directives, BAFIA, Company Act,
approved terms and conditions. Credit Monetary Policy, Muluki Ain, etc. are
Administration Department verifies being ensured.
the certification and completion of all ƒ Bank has undertaken strategy to grow
formalities and disburses the loan in the majority of business in the corporate
system. sector followed by SME/Retail base in
ƒ Credit exposures once approved / the current fiscal year in order to better
disbursed are effectively monitored and manage the portfolio risk of the Bank.
reviewed on annual basis to determine Product paper on various products have
changes in risk levels. Bank has been developed/reviewed on periodic
standard procedures for credit review basis with settling of prudential lending
and monitoring systems, which is limit to a single client / obligor along
documented in Credit Policy Guidelines. with portfolio level in different product
ƒ Early warning signals from customers on corporate level.
in financial difficulties are read early ƒ Periodic review on product papers
and remedial management action is of regulatory retail portfolio, claims
implemented to minimize risk of default secured by residential properties
/ loss. and credit policy guidelines by Risk
ƒ Bank reviews and monitors credit on Management Committee and update as
a quarterly basis through diary notes, per the requirement.
visit reports, customer’s call/visit report ƒ Risk Management Committee is
and irregularity reports with respect to constituted by the Board of Directors.
the management of excesses, overdue Risk Management Committee oversee
payments of principal or interest and portfolio analysis, stress testing, existing
past due bills and deficiencies identified product papers, policy, procedures on
therein reported to credit chain. The credit, market and operational risk
working capital loans are monitored management on regular interval.
through verification of statement of
current assets provided by the borrower GIBL has been adopting a practice of analyzing
ensuring the utilization of limits are various levels of risks and mitigations in credit
within the approved drawing power. for different sectors Project, Corporate, SMEs
ƒ Loans are priced appropriately through and Retail. Details are assessed below:
a Risk Based Pricing model. A template
to this effect has been developed and Assessment of Macro Environment Aspects /
circulated to branches. Relationship External Impacts
managers and Branch managers to
identify/compute return on regulatory Change in economic indicators affecting credit
capital. portfolio such as GDP, Inflation, per capita
ƒ Periodic reviews at portfolio levels are income, demand supply mismatch, changes in
made in order to track performance consumption patterns etc.
and changes in quality of loan portfolio.

144 GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19

 The risks that could trigger out of above Time Frame etc.
indicators could ultimately lead to a credit ƒ Networking - Sales and Distribution /
default or even loss and GIBL has developed Dependency on few
a mechanism of assessing its impact to a
potential credit loss through extensive and Financial Risks Analysis
elaborative credit analysis such as industry/
market risk assessment where various factors GIBL has been taking very cautious measures
are assessed such as: in order to analyze the financial aspects of a
credit client. The major risks perceived in this
ƒ Market Trend – Introductory, Growing, area are considered to be timely submission of
Mature, Local vs. Exports, Quality, financial statements, audited balance sheets,
Quantity, Market Substitutes, Prevailing validation of financial statements, disclosures
Pricing Structures, Demand & Supply and transparency. Whilst these phenomena
Scenario etc. are common issues in the industry, GIBL has
ƒ Entry / Exit Barriers – License been adopting a practice of analyzing financial
regulations, Associations Permits and aspects more meticulously and with great
Restrictions, Investments Prohibitions degree of vigilance to overcome risks prevalent
and Practices etc. herein. Some of them are studied below:
ƒ Competition – Players in the Industry.
Ability to withstand in the market place ƒ Trend Analysis – Sales, Profit, Cash Flows,
despite competition, development of Performance, Forecast, Projections etc.
core competence and distinctiveness to ƒ Key Indicators – Liquidity, Solvency.
thrive in the market place. Margin, Debt Coverage, etc.
ƒ Vulnerability – Changes in Political ƒ Operating Cycle – Assets Conversion
scenario with corresponding changes Cycle Time
in administration, Legal Framework, ƒ Payback Period, Internal Rate of Return,
Socio-Cultural impacts and their affects Break Even Analysis etc.
in the credit. ƒ Others – Costs Overrun Analysis,
Sensitivity Analysis in project financing,
Business Risks Analysis – To an individual client/ etc.
group/section
Promoters Profile / Management expertise
GIBL has also been undertaking various risks
assessment mechanisms while assigning The experience and expertise of promoters in
credit lines to an individual credit customer/ the given filed of business play a pivotal role
group and they are: in the success of any business venture. GIBL’s
analysis also encompasses detailed analysis in
ƒ Product of the company whether are at these critical areas some of which includes:
introductory stage that warrant massive
market penetration strategies involving ƒ Promoters / Management – Expertise
costs factors or growing products in the and Experience in the given or related
market place with potentials of further filed.
growth or are at matured stage with ƒ Common / Diverse Interest of the
declining tendencies. promoters. Common interest in
ƒ Buyer / Supplier – Size, Credibility, the ventured business help ensure
Performance, Conduct etc. commitment and belongingness while
ƒ Market Share – Small, Moderate. Leader diverse interest may seriously impact
etc. the business in distress situation as
ƒ Technology – Obsolesce, Sound / Stable all these individuals would not be
etc. collaborating in consensus due to their
ƒ Operating Cycle – Assets Conversion priorities elsewhere,

GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19 145

 ƒ Continuity and Succession Plans / With the recent introduction of Secured
Successors, Transaction Registry Service by Secured
ƒ Fall Back Position & Strength, Transaction Registry Office regulated by
ƒ Other Investment and Ventures Ministry of Finance, the bank is preparing
towards registration of current/ movable asset.
GIBL as part of account performance monitoring
exercise has been taking various measures on In order to identify and effectively manage
the following critical areas of a credit: above risks, GIBL has been adopting various
mechanisms and modules that are as under:
ƒ Assessing Account Conduct, Historical
Performance, Credibility etc. BRR – Borrowers Risks Rating Module is in
ƒ Debt Servicing Habit (Operating Cash / place.
Personal Source)
ƒ Utilization trend analysis, Transaction Calculation on return on regulatory Capital
frequency, Hardcoreness of overdraft Module for all credit cases
utilization etc.
ƒ Compliance of Covenants, Terms, Monthly / quarterly review on sectorial
Drawing Power/NTA positions etc. exposures, productive sector lending, product
ƒ Measure Irregularities – delay in wise report, deprive sector, credit concentration
submission of inventory Stocks Report, on top 20 large borrowers, review on NPL,
Debtors Profile, – – Inspections of interest suspense, audit remarks etc.
pledged / hypothecated/mortgaged
assets, fund mismatch, Warehouse Standardized template of financial spreadsheet
Conditions, Security etc. with indicator parameters

Security Risks Asset/ Liability Management Committee (ALCO)

ƒ Quality of the hypothecation of current The Committee meets regularly to monitor and
assets manage the assets & liabilities of the Bank and
ƒ Identified value of FAC overall liquidity position to keep the Bank’s
ƒ Realization of FAC at distress liquidity at healthy levels, whilst satisfying
ƒ Salability and marketability of the regulatory requirements.
property mortgaged/hypothecated
Risk Measurement
GIBL has in place an assessing mechanism over
valuation of properties by bank’s appointed The Bank’s risks are measured using
valuator and such valuation is carried out appropriate techniques based on the type of
under guidelines provided by us to the risk and industry best practices. The Bank also
valuator. While assessing credit application, carries out Stress Testing to identify the effect
bank shall undergo a detailed analysis over of extreme events / worst case scenarios on
hypothecated/mortgaged collateral’s quality a periodic basis and are analyze by the Risk
and their potentials to convert into cash Department to take further actions.
both in normal and distress situations (when
company is defunct). Our focus shall always Monitoring and controlling risk is primarily
be disposition of such assets well in time to performed based on policies,limits and
derive to an advantage of going concern value threshhold established by the Bank. These
assets. On time inspection of hypothecated/ limits reflect the business strategy and market
mortgage assets together with validation of environment of the Bank as well as the level
such assets with relevant documents shall be of risk that the Bank is willing to accept (Risk
a regular task of GIBL in order to mitigate the Appetite).
security risks.

146 GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19

Risk Mitigation for the loan.

As part of its overall risk management, the Credit risk analysis within retail lending
Bank obtains various types of collaterals to programs is performed based on the current
mitigate the risk. Details such as, nature of income and the profile of the customer using
the collateral that will be accepted, required scoring models that are based on statistical
security margin etc are defined in Credit Policy analysis of defaults by specific lending
of the Bank. Any deviations above the policy programs.
requires specific approval.
C. Maximum Exposure to Credit Risk
Credit Risk
The maximum exposure to credit risk is
Credit risk is the risk of financial loss to the generally reflected in the carrying amounts of
Bank, if its customers or counterparties fail to financial assets in the statement of financial
discharge their contractual obligations which position. The maximum exposure to credit
arises from the Bank’s loans and advances to risk arising from credit related commitments
customers/other banks and investments. In is presented in Note 40 “Contingent Liabilities
addition to the credit risk from direct funding and Commitments”. The Bank uses the same
exposures, the Bank would also be exposed procedures and methodologies, as defined by
to indirect liabilities such as Letter of Credit, the credit policy, for approving credit related
Guarantees etc, which would carry the credit commitments (undrawn loan commitments,
risk. letters of credit and guarantees) as it does for
recognised credit obligations (loans).
A. Credit Risk Management
D. Credit Quality by Class of Financial Assets
Credit risk is managed at the individual
counterparty level (by individual credit limits The Bank manages the credit quality of
and limits for groups of connected borrowers) financial assets using internal credit rating.
and on the portfolio level. The table below shows the credit quality by the
class of assets for all financial assets exposed
B. Principles of setting credit risk limits to credit risk, based on the Bank’s internal
credit rating system. The amount presented
Individual credit risk limits and credit risk are gross of impairment allowances.
limits for groups of connected borrowers are
established by authorised bodies based on the Past Due Definition
comprehensive analysis and evaluation of risks
(credit, reputational, legal, environmental and The Bank considers that any amount
other risks) of an individual counterparty and uncollected for one day or more beyond their
the group of its related companies. contractual due date as ‘past due’.

Analysis of a debtor’s financial position E. Maturity Analysis

is performed using all the information
available to the Bank in accordance with the Treasury manages the maturity analysis of
methodology applied. This analysis includes assets and liabilities. Modelling of assets and
an assessment of the current and expected liabilities is necessary in cases where the
debtor’s financial position and the business of contractual maturity does not adequately
the debtor. reflect the liquidity risk position. The most
significant example in this context would be
Generally, the group of companies of the immediately repayable deposits from retail
debtor is evaluated as a whole, provided that and transaction banking customers which
all members of the group accept responsibility have consistently displayed high stability

GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19 147

 throughout even the most severe financial Where possible, the Bank seeks to restructure
crises. Financial assets and financial liabilities loans to borrowers experiencing temporary
must be disclosed by their by their contractual financial difficulties rather than to take
maturity, based on undiscounted cash flows. possession of collateral. This may involve
The gap is monitored on periodic basis to modification of the contractual payment terms
maintain the sufficient liquidity by the Asset of loans in order to improve the management
Liabilities Committee. of customer relationships and maximise
collection opportunities.
F. Allowance for loan losses
The Bank employs a set of preventive measures
The Bank establishes an impairment allowance for identification of the financial difficulties
that represents its estimate of losses incurred experienced by clients. Such measures include:
at the reporting date. The details of impairment
allowances are set in Note 19. ƒ developing special expertise in
identifying potential client risks prior to
The Bank writes off a loan balance against the critical deterioration of the issue
related impairment allowances when an ƒ timely cooperation with the client’s
authorised body determines that the loan management representatives in order
is uncollectible and when all necessary and to seek optimal solutions for problem
possible procedures to collect the loan are situations.
completed.
Restructuring implies modifying the material
G. Collateral and Other Credit Enhancements terms and conditions of the initial agreement,
that enables the client to fulfil its liabilities
The amount and type of collateral required on more manageable terms (e.g.: modified
depends on an assessment of the credit risk principal or/and interest repayment term,
of the counterparty. Guidelines are in place interest rate, the rate calculation method,
covering the acceptability and valuation of etc.).The Bank gives more attention to
each type of collateral. The main types of restructured loans through detailed
collateral obtained are as follows: monitoring. Impairment losses for such
loans are estimated individually based on an
For Commercial Lending: charges over analysis using a discounted expected cash
real estate properties, inventory and trade flow technique (Note 19).
receivables
In the event that the financial position of a client
For Retail Lending: mortgages over recovers and the client fulfils the restructured
residential properties, land loan in full and in a timely manner within an
established period, the loan is presented in
Management monitors the market value of the consolidated financial statements within
collateral and will request additional collateral the without individual signs of impairment
in accordance with the underlying agreement. category.
It is the Bank’s policy to dispose repossessed
properties in an orderly manner. The proceeds Market Risk
are used to recover the outstanding claim.
ALCO of the Bank has been monitoring the
H. Bad Debt work-out procedures market risk as on date and recently Market
Risk Unit have been established to closely
In order to maximise the efficiency of bad debt monitor the fluctuations in interest rate and
work out procedures the bank has established price and shall be involved in developing the
a recovery department. policies related to market risk management.

148 GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19

The strategy shall also be on strengthening Operational Risk
Treasury Middle office.
Operational Risk is the risk of loss resulting
Interest rate risk: Interest-rate risk can from inadequate or failed internal processes,
be defined as the effect of changes in rates people and system or from external causes,
on income and on the market value of an whether deliberate, accidental or natural.
institution’s equity position. The effect of
changes in rates on income is referred to as Operational Risk Management unit under
income-at-risk. GAP analysis is also one of the Integrated Risk Management Department
methods for measuring the level of interest- oversees the operational risk aspect.
rate risk and so is Duration analysis as it focuses Operational risk is inherent in all business
on value-at-risk with much more accurate tool activities. Whilst risks can never be eradicated,
for gaining a sense for the potential long term we follow a number of procedures and practices
effect of changes in rate on capital. It considers to manage and mitigate them to preserve and
both principal and interest cash flows. With create value of our business. We manage our
interest rate swap points not being available in operational risks through standardization of
our market context, the interest rate hedging internal processes and monitoring mechanisms.
is achieved with matching maturities of cash Staffs allowed participating in various trainings,
flows. workshops, conferences in different arena of
the banking function to minimize operational
Market risk and settlement risk: is the risk risk caused due to lack of knowledge and skills
of adverse deviations of mark-to-market value on the part of staffs.
of the trading portfolio during the period
required to liquidate the transactions. The Operational Risk for the current years and
four standard market risk factors are: Equity previous year has been calculated based on
risk (Share prices/Dividend yields), Interest the profit calculated as per previous audited
rate risk (Changes in the yield curve/Credit financials.
spreads/Banking book mismatch), Currency
risk (revaluation risk/FX rates), Commodity List of Identified risks:
risk (Price of oil, metals) and credit spread
risk. Some of the potential risks associated with
banking operation in current scenario are
Market risk control mechanisms (Trading listed as follows:
book Limit structure):
i. People Risk
ƒ Currency exposure limits
ƒ VaR limits Human Resource Department is involved in
ƒ Dealer level limits managing people who are considered as one of
ƒ Asset class limits the biggest assets of the organization. Hence,
ƒ Tenor limits(bonds) HRD is engaged in a broad range of human
ƒ Liquidity limits resource management practices to capitalize
ƒ Counterparty limits on those assets. In this regard, the risk is
ƒ Open-Position limits basically associated with the human capital and
ƒ Rating limits/Inter Bank Limits processes for their mitigation are cited follows:

GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19 149

 The major people risks Strategy on People Risk Management
1. Submission of Fake Sheet along with all
other Academic Credentials
2. Internal Fraud
The Bank has prepared and implemented Personnel
3. Biasness in Performance Appraisal policy guidelines to mitigate risk related to the people.
4. Mismanagement in handling Staff Operational risk can occur due to poor or failed transaction
Facilities processing or poor management of the process. These
5.Out dated and inadequate HR policies losses could be due to individual mistakes or due to a
and procedures poor process itself like data entry errors, accounting
errors, memos delivery failures, incomplete legal
6. Late Attendance documentation etc. For making department's activities /
7. HRIS System Failure workflow more effective more efficient, HRD is working
8. Poor Staff Management to prepare an Activities Process Management Manual.
9. Payroll Misappropriation
10. Lack of Departmental Co-ordination

ii. Risks related to Systems

Perceptions of risk:

There are various types of risk factors associated in IT context. Whatever the cause, if the outcome
results in damage to IT infrastructure, IT system, IT services, and IT operations, it can be perceived as
risk in IT context.

identified risk: Risk mitigation strategy

The bank has already prepared and implemented various IT
1. Hardware system failure:
related Policies and guidelines in line with IT guidelines issued
2. Software system failure:
by NRB along with IT Continuity of Business Plan & Policy.
3. Electrical / Power system
These policies/guidelines outline IT related risk factors and
failure
their impact IT systems as well as impact on daily operations/
4. Network / Connectivity
business of the bank. In addition, these policies/guidelines also
system failure:
list down necessary risk mitigating techniques implemented
5. System Intrusion:
and contingencies to continue IT operations in case of adverse
6. Risk of Human Errors:
conditions.

iii. Process Risk

i. Comprehensive Policy
Each area of operational activities is in written format and defined, continuous review/amendments and
formulation of required policy is continuous process. In the absence of the defined policy and guidelines,
staff in the branches and departments remain in the state of confusion which otherwise make impact of
irregularities and lack of uniformity in the performance in the branches.
ii. Documents Retention, Retrieval and Destruction Policy
In the absence of the policy, management of documents recording and filing cannot be done systematically.
As per regulatory requirement also, documents are to be kept in physical record for certain period as per
the nature/types of the documents. Absences of document retention and retrieval policy and procedures

150 GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19

 may lead to disorder in physical handling, also helped to assess hypothetical scenarios of
failure of timely retrieval and subsequently stresses on liquidity. ALCO is able to use this
loss of the documents due to which the bank is information as well as other analyses such
also exposed to regulatory risk as well. as GAP to manage liquidity effectively for the
Bank.
Compliance Risk
Other Areas
Compliance Risk is the risk resulting from
non-compliance with laws and regulations The vault in the branch is being arranged
and lack of adequate documentation to with the security measures and sufficient
demonstrate compliance and risk from failure space, so that excess movement of cash, cash
to comply with financial reporting standards, items and other security documents can be
agreements or regulatory requirements. accommodated in abnormal circumstances.
The main Compliance Risk components are
generally referred to as regulatory, financial Cash in Transit: To mitigate the risk associated
reporting and legal risk. We are constantly with cash in transit bank has policy to carry
monitoring and mitigating compliance risk cash in four wheeler vehicle with security guard
through the adoption of appropriate policies whenever possible, informing route to the local
and timely reporting as per the regulatory security agencies, and also risk is covered
requirements. through Cash in transit insurance policy.

Liquidity Risk Security Arrangements

Managing the risk has been integral part of Proper security arrangements should be placed
the banking business. Risk can be defined as in each branch premises to avoid possible
the degree of uncertainty of future returns risk of forgery, burglary, break ups and other
as well as transactions. This uncertainty natural disasters to avoid possible loss to the
has varied dimensions and therefore can be bank’s assets and human resources. Such
defined in diverse ways .In present context lapses in security management may be like;
of financial markets worldwide on account of absence of CCTV recording and monitoring
severe competition, deregulations of interest system, lack of discipline and guided job
rates both on lending as well as on deposits description to security guards/personnel, lack
and other developments, banks have been of security equipment in premises; like alarm
increasingly exposed to various types of risk system, smoke detector, fire alarm, metal
as mentioned below. detector; lack of alternate entrances and exit
door in the premises etc.
Liquidity Risk arises from funding needs
during challenging money market conditions. In the absence of these security measures,
Liquidity risk can be defined as a situation there is always risk of potential financial loss
arising from where short-term assets values and human casualties due to the unpredicted
are not sufficient to match short-term circumstances. Similarly, lack of proper
liabilities or unexpected cash outflows. The staff orientation on security arrangements,
Bank as per the approved guidelines from the measures and procedures of use may lead to
Board has been maintaining a comfortable the risk of potential financial loss and human
liquid asset to deposit ratio. This is monitored casualties even security equipment’s and
daily. The investments for liquid assets, asides resources are available in the branches.
from cash and bank balances largely comprise
of government securities- treasury bills. A Managing Operational Risk
large government securities portfolio is easily
convertible into cash level funds during times In its short span of operation, the Bank has
of liquidity tightness. Regular stress tests have placed a sound level of operational risk

GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19 151

 management and control measures in its to update pending instances within the
banking activities. The bank has adopted deadline as per commitments made by
integrated risk management approach by the branches.
formulating different policies, manuals, ƒ Periodical review of branch operations
circulars and guidelines from time to time functions by dedicated team of
to control and mitigate material operational Operational Risk Management Unit and
risks in the risk management process of the Internal Audit Department.
bank. Different process related to cash and ƒ Periodical review, amendments and
ATM operation, debit card issuance, internet implementation of operational manuals
banking, TT-LC issuance, swift transfer service, and guidelines to address each aspect of
inward and outward remittance, draft issuance branch operations.
& reconciliation etc. has been centralized; and ƒ Communication and regular monitoring
branches are required for reporting to head and follow up of policies, circulars
office in the respective functional areas on and directives issued by Nepal Rastra
periodical basis, for effective monitoring and Bank timely through the Compliance
control of the activities being carried out in Department.
the branches. ƒ Regular training and orientation of
staffs of the Bank on various operational
The Bank follows an ongoing process of processes and procedures.
internal audit system in all operational and ƒ Periodic visit, review and assessment of
business units and branches for verification operational activities in branches by the
of transactions/documents and process and central operations unit.
procedures followed in the course of action, ƒ Implementation of the system for data
by independent audit team/unit so that errors recording, management and reporting
are identified, and timely mitigated. Further, system for monitoring branch operation
the Bank has been conducting regular in-house activities. Updates for additional field
and external trainings on various areas at all in system for mandatory requirement
level to achieve high operational efficiency of customer data, KYC information has
and personal effectiveness in order to mitigate been implemented for required MIS
risk factors. and reporting purpose. Restriction has
been placed in the system for user limits
The bank has adopted the following strategies in cash transaction for proper control
and measures in its endeavor to create an and double-check mechanism to avoid
effective system of operational management the instances of wrong postings and
and its impact on capital adequacy of the bank: mistakes.
ƒ Procedures for review of customer
ƒ Centralized monitoring and approval in case of account opening and draft
process of branch operations activities issuance for sanction screening through
through central operations unit. Branch sanction screening software has been
visits and surprise cash verification, procured and is to be implemented
vault checking is carried out on a shortly.
periodical basis to ensure the branch ƒ For central record and monitoring of
has properly managed the vault and draft and TT issuance for import related
cash operations. transaction, a system is being developed
ƒ Compliance policy of the bank to to insert transaction details by branches
the suggestions and instruction on issuance of draft/TT.
on shortcomings as observed in ƒ Monitoring of pending documents,
internal, external audit and periodical limit of applicants, follow up and NRB
inspections from Nepal Rastra Bank. reporting shall be monitored through
Audit reports are reviewed periodically the system.
and follow up are made with the branch ƒ Procedures for validation of Good for

152 GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19

 Issuance (GFP) cheque and Balance Certificate (BC) issuance and Bank guarantee issuance shall
be implemented so that the authenticity of such documents can be checked and reviewed from the
point of customers / beneficiary via the bank's website.
ƒ Job description to each individual staff is provided so as to make clarity on the assignments and
responsibility of individual staff and keep the staff more accountability while carrying out their
assigned task.

5.2. Capital management

The bank’s management has introduced Internal Capital Adequacy Assessment Process (hereinafter
referred to as ICAAP). The ICAAP comprises the Bank’s procedures and measures designed to ensure
the following:

a. An appropriate identification and measurement of risks:

b. An appropriate level of internal capital in relation to Bank’s risk profile; and
c. Application and further development of suitable risk management systems for the Bank.

5.3. Classification of financial assets and liabilities

Financial instruments are measured on an ongoing basis either at fair value or at amortized cost. The following
table analyses the carrying amounts of financial instruments by category as defined in Nepal Financial
Reporting Standard NFRS 9 (Financial Instruments) under headings of Statement of Financial Position.

Amount in NPR

As on 31st Asar 2076

Note
At Amortized Cost At FVTPL At FVTOCI Total
Financial Assets
Cash and Cash Equivalents 4.1 11,531,556,889 11,531,556,889
Due from Nepal Rastra Bank 4.2 5,217,312,678 5,217,312,678
Placement with Bank and Financial Institutions 4.3 - -
Derivative financial instruments 4.4 4,112,517,152 4,112,517,152
Other trading assets 4.5 - -
Loan and advances to B/FIs 4.6 4,054,633,604 4,054,633,604
Loans and Advances to Customers 4.7 108,977,607,686 108,977,607,686
Investment Securities 4.8 11,630,482,174 1,522,669,818 13,153,151,992
Investment in subsidiaries 4.9 219,775,000 219,775,000
Investment in associates 4.10 319,577,861 319,577,861
Investment property 4.12 118,685,464 118,685,464
Other Assets 4.16 349,863,481 349,863,481
Total Financial Assets 142,419,494,838 4,112,517,152 1,522,669,818 148,054,681,808
Financial Liabilities
Due to Banks and Financial Institutions 4.17 4,410,876,030 4,410,876,030
Due to Nepal Rastra Bank 4.18 1,231,800,211 1,231,800,211
Derivative financial instruments 4.19 - 3,879,901,668 3,879,901,668
Due to Customers 4.20 120,088,440,064 120,088,440,064

GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19 153

 As on 31st Asar 2076
Note
At Amortized Cost At FVTPL At FVTOCI Total
Borrowings 4.21 - -
Other Liabilities 4.23 2,193,695,240 2,193,695,240
Debt Securities Issued 4.24 1,496,452,596 1,496,452,596
Total Financial Liabilities 129,421,264,140 3,879,901,668 - 133,301,165,808

Amount in NPR

As on 32nd Asar 2075

Note
At Amortized Cost At FVTPL At FVTOCI Total
Financial Assets
Cash and Cash Equivalents 4.1 8,027,502,157 8,027,502,157
Due from Nepal Rastra Bank 4.2 4,768,987,025 4,768,987,025
Placement with Bank and Financial Institutions 4.3 - -
Derivative financial instruments 4.4 - 2,994,226,795.72 2,994,226,796
Other trading assets 4.5 - -
Loan and advances to B/FIs 4.6 3,474,259,480 3,474,259,480
Loans and Advances to Customers 4.7 88,878,095,645 88,878,095,645
Investment Securities 4.8 15,398,903,714 921,749,118 16,320,652,832
Investment in subsidiaries 4.9 219,775,000 219,775,000
Investment in associates 4.10 298,057,200 298,057,200
Investment property 4.12 91,917,079 91,917,079
Other Assets 4.16 619,059,331 619,059,331
Total Financial Assets 121,776,556,632 2,994,226,795.72 921,749,118 125,692,532,545
Financial Liabilities
Due to Banks and Financial Institutions 4.17 1,659,926,258 1,659,926,258
Due to Nepal Rastra Bank 4.18 1,034,648,590 1,034,648,590
Derivative financial instruments 4.19 3,039,483,464 3,039,483,464
Due to Customers 4.20 104,850,510,393 104,850,510,393
Borrowings 4.21 - -
Other Liabilities 4.23 2,589,714,215 2,589,714,215
Debt Securities Issued 4.24 400,000,000 400,000,000
Total Financial Liabilities 110,534,799,456 3,039,483,464 - 113,574,282,920

5.4. Operating Segment Information

1. General Information.
Chief operating decision maker uses the branch wise information to make the decision. These information
are generated on a daily basis. The bank is in the process of establishing the province office which will
monitor their respective branches. Bank derives its revenue from the following products and services:
a. Lending Sevices
b. Treasury Services
c. Remittance Services

154 GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19

 d. Card Services
2. The following table shows the operating segment information:
Amount in NPR

Particulars Province 1 Province 2 Province 3 Province 4 Province 5 Province 6 Province 7 Total

Revenue from external 1,286,279,053 1,216,475,350 9,722,000,889 854,249,804 1,159,777,300 722,455,857 357,033,698 15,318,271,951
customers
Intersegment revenues 29,524,435 46,405,671 4,870,020,731 71,271,769 124,547,623 17,982,866 77,559,185 5,237,312,281
Gross Revenues 1,315,803,487 1,262,881,021 14,592,021,620 925,521,574 1,284,324,923 740,438,723 434,592,883 20,555,584,232
Interest Revenue 1,196,601,865 1,118,386,658 8,345,171,854 806,958,213 1,079,408,960 663,410,402 320,946,844 13,530,884,797
Interest Expenses 353,175,297 248,194,151 6,500,210,020 312,467,510 403,932,510 333,939,373 136,619,919 8,288,538,779
Net Interest Revenue 843,426,569 870,192,507 1,844,961,833 494,490,704 675,476,450 329,471,029 184,326,925 5,242,346,018
Depreciation and 16,209,035 12,192,172 166,347,345 15,206,314 13,882,010 5,450,998 9,016,560 238,304,434
amortization
Segment profit/(loss) 406,571,075 343,431,691 2,746,473,939 243,741,376 329,743,368 185,341,115 103,163,183 4,358,465,748
Entity's interest in
the profit or loss of - - - - - -
associates accounted for
using equity method
Other material non- - - - - - -
cash items
Impairment of assets 139,636,931 128,977,446 1,198,399,339 78,622,684 147,752,157 25,839,997 43,865,365 1,763,093,919
Segment assets 10,614,872,730 10,701,118,045 70,878,293,981 7,198,588,875 11,611,428,173 1,588,178,111 2,869,828,785 115,462,308,700
Segment liabilities 7,061,234,815 5,502,024,237 92,146,874,358 6,997,858,100 8,577,187,135 922,910,596 3,291,226,855 124,499,316,094

3. Any transactions that occurred between the reportable segments are recorded using interbranch
transaction account. This account is used mainly for accounting the inter branch revenue. These reveneus
are cancelled out at the reporting date. There is no difference between the measurement of reportable
segment’s assets and entity’s assets.
4. Reconciliations of reportable segment revenues, profit or loss, assets and liabilities.
a. Revenue
Amount in NPR

Total Revenues for reportable segments 20,555,584,232

Other Revenues
Elimination of intersegment revenues (5,237,312,281)
Entity's revenues 15,318,271,951
b. Profit or Loss
Amount in NPR

Total profit/loss for reportable segments 4,358,465,748

Elimination of intersegment revenues -
Unallocated amounts- Staff Benefit amortization (31,155,666)
Unallocated amounts- Staff Bonus (393,391,826)
Profit before Income Tax 3,933,918,256

GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19 155

 c. Assets
Amount in NPR
Total assets for reportable segments 115,462,308,700
Other assets 1,075,101,633
Unallocated amounts- Staff Loans & Interest Receivable 734,888,852
Unallocated amounts- Cash and Balance with NRB 16,748,869,567
Unallocated amounts- Investment Securities 13,692,504,854
Unallocated amounts- Current Tax Assets 1,259,701,665
Unallocated amounts- Investment Property 118,685,464
Unallocated amounts- Derivative financial Instruments 4,112,517,152
Unallocated amounts- Deferred Tax Assets 212,078,419
Entity's Assets 153,416,656,306
d. Liabilities
Amount in NPR
Total liabilities for reportable segments 124,499,316,094
Other liabilities 3,011,351,016
Unallocated amounts-Due to Nepal Rastra bank 1,231,800,211
Unallocated amounts- Current tax liabilities 1,202,570,465
Unallocated amounts- Derivative financial Instruments 3,879,901,668
Unallocated amounts-Debt Securities 1,496,452,596
Entity's Liabilities 135,321,392,050
5. Information about products and services
Amount in NPR
Loans and advances 13,459,679,277
Investment securities 690,802,628
Remittance 181,678,781
Card services 267,053,224
Others 719,058,041
Total Entity's Revenue 15,318,271,951
6. Information about geographical areas
Amount in NPR
Domestic
Province 1 889,752,993
Province 2 745,624,299
Province 3 11,119,762,720
Province 4 700,283,193
Province 5 939,926,994
Province 6 587,249,447
Province 7 335,672,305
Foreign
Total 15,318,271,951

156 GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19

7. Information about major customer.
The bank does not have any customer, which generates more than 10% of the entity’s revenue.

5.5. Share options and share based payment

The bank does not issue shares and options to its employees that would be accounted as per NFRS 2 “
Share based payments”.

5.6. Contingent liabilities and commitment

Details of contingent liabilities and commitments have been explained in Note 4.28.

5.7. Related Party Disclosures

The bank carries out transactions in the ordinary course of business with the parties who are defined
as related parties in the Nepal Accounting Standard – NAS 24 (Related Party Disclosures), the details of
which are reported below:

S. Relationship Date of joining /

No. Name Type with Bank resignation
1 Mr. Chandra Prasad Dhakal KMPs Chairman
2 Mr. Suman Pokharel KMPs Director
3 Mr. Sudarsun Krishna Shrestha KMPs Director
01.10.2019
4 Mr. Pawan Kumar Bhimsaria KMPs Director (Resigned)
5 Mr. Numanath Poudel KMPs Director
12.08.2018
6 Mr. Krishna Prasad Sharma KMPs Director (Appointed)
22.01.2019
7 Mr. Janak Sharma Poudyal KMPs CEO (Resigned)
23.01.2019
8 Mr. Mahesh Sharma Dhakal KMPs Act. CEO (Appointed Act.
CEO)
9 Global IME Capital Limited Entities where control exists Subsidiary
Global IME Laghubitta Bittiya Sanstha
10 Entities where control exists Subsidiary
Limited
Entities where significant
11 Mero Microfinance Bittiya Sanstha Ltd Associate
influence exists
Entities where significant
12 First Microfinance Development Bank Associate
influence exists
Entities where significant
13 IME Life Insurance Company Ltd Associate
influence exists

Parent and ultimate controlling party

The bank does not have an identifiable parent of its own.

Key Management Personnel
As per Nepal Accounting Standard – NAS 24 (Related Party Disclosures), Key Management Personnel
(KMP) are those having authority and responsibility for planning, directing and controlling the activities
of entity.

GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19 157

 According to above definition, a person can not be considered as a KMP unless such person has both
the authority and responsibility to carry out all three activities metioned in the above definition (i.e.
planning, directing and controlling the activities of entity). In considering each possible related party
relationship, attention is directed to the substance of the relationship, not merely the legal form.
Accordingly the board of directors and chief executive officer are considered as Key Management
Personnel of the bank.
Amount in NPR

Current Year Previous Year

Employment benefits
-salaries and allowances 18,165,807 24,421,771
-post employment benefits 18,336,426 742,979
Director's fees and expenses 4,826,197 4,178,276
41,328,430 29,343,027
In addition to above, the bank has also paid non cash-benefits such as fuel, repairs, telephone to KMPs
who are employee of the bank in line with the approved benefit plans of the bank.
Close Family Members (CFM) of Key Management Personnel
CFMs of the KMP are those family members who may be expected to influence or be influenced by that
KMP in their dealings with the entity. They may include KMP’s domestic partner, children of the KMP’s
domestic partner and dependents of the KMP.
Subsidiaries and associates
The bank has a subsidiaries with an equity interest of 75%, and 70% in Global IME Capital Ltd and Global
IME Microfinance Bittiya Sanstha Ltd. The subsidiaries nature of business are mentioned in Note 4.10.
The bank has associates with an equity interest of 14.73%, 10% and 7.00% in First Microfinance
Laghubitta Bittiya Sanstha Ltd, IME Life Insurance Company Ltd and Mero Microfinance Bittiya Sanstha
Ltd. The nature of business are mentioned in Note 4.11.
Amount in NPR

Current Year Previous Year

Global IME Capital Limited
-loans and receivables 1,054,076
-deposits 19,857,635 29,450,090
-payables - 162,629
For the year ended
-interest paid on deposit 1,062,288 2,359,001
-dividend received 16,125,290 9,000,000
-service fee paid 1,650,000 1,581,490
-other expenses 621,044 448,509
-service fee received - 64,603
- other income received 1,261,010 2,332,531
Global IME Laghubitta Bittiya Sanstha Limited

158 GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19

 Current Year Previous Year
-loans and receivables 551,340,586 300,000,000
-deposits 85,291,190 7,811,748
-advance for right share 77,320,250
For the year ended
-interest paid on deposit 41,289 4,796
-interest received on loans 38,407,943 22,033,562
-service fee paid 2,800,000
First Microfinance Laghubitta Bittiya Sanstha Ltd
-loans and receivables 565,704,565 499,893,604
-deposits 39,226,119 5,859,957
For the year ended
-interest paid on deposit 288,795 51,767
-interest received on loans 58,816,287 20,824,592
-service fee paid 40,000
Mero Microfinance Bittiya Sanstha Limited
-loans and receivables 469,900,000 399,900,000
-deposits 26,227,608 17,639,067
For the year ended
-interest paid on deposit 302,804 148,908
-interest received on loans 36,926,975 12,878,400
IME Life insurance co. Ltd.
-deposits 1,727,888 21,496
Other Related Parties
Other relaated parties to banks are the entities which are controlled or jointly controlled by KMP or
their close family members.

5.8. Merger and acquisition

During the financial Year the bank had signed Memorandum of Understanding with Hathway Finance
Ltd. A “C Class Financial Institution” to acquire the entity. Acquisition of Hathway Finance Ltd has been
completed with the swap ratio determined at 42 shares for every 100 shares held at Hathway Finance
Ltd. The swap ratio has been duly approved by the Special General Meeting held on Shrawan 14 2076.
Joint Operation of the two entities commenced from Bhadra 18 2076.
During the year Global IME Bank Ltd and Janata Bank Ltd a “A Class Financial Institution” has signed the
memorandum of understanding to merge with each other upon the approval of Nepal Rastra Bank and
General Meeting. The entities are working on the Due Diligence for completion of the merger.
During previous financial year two subsidiaries of Global IME Bank Ltd, namely Global IME Capital Ltd
and Reliable Capital Ltd were merged with each other and formed a single entity Global IME Capital Ltd.
The bank has recognised goodwill on consolidation for the excess of its investment over the share issued
to bank by Global IME Capital.

GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19 159

5.9. Additional dislosure of non consolidated entities

All the subsidiaries of the bank are consolidated and presented as a single entity. However for the
accounting of associates of bank the bank has applied the carve out issued by Institute of Chartered
Accountants of Nepal for NAS 28 “Investments in associates and joint venture”.
ƒ The entity’s financial statements shall be prepared using uniform accounting policies for like
transactions and events in similar circumstances unless, in case of an associate, it is impracticable
to do so.
5.10. Events after reporting date

Events after the reporting period are those events, favorable and unfavorable, that occur between the
reporting date and the date when the Financial Statements are authorized for issue. Joint operation on
acquisition of Hathway Finance Ltd was carried out from Bhadra 18 2076. The acquisition was approved
by the Special General Meeting held on Shrawan 14, 2076. The acquired shares remains eligible for
participation in dividend distribution, accordingly Earning Per Share (EPS) has been adjusted accordingly.
Business Acquired
The Bank acquired then Hathway Finance Ltd, a “C” class financial institution during the FY 2076-77.
Joint operation with the acquired entity was started from 18 Bhadra 2076. The existing shareholders of
Hathway Finance Ltd were issued ordinary equity shares of the bank at swap ratio of 42 shares for every
100 shares held.
Hathway Finance Ltd had prepared the audited financial statements as of 17 Bhadra 2076, i.e. the date
before merger. All recognizable assets and liabilities of the merged entity has been transferred in the
books of accounts of Global IME Bank Ltd as on date of merger. Profit or Loss of the merged entity as on
date of merger are transferred to retained earnings after appropriation of staff bonus and taxation.
The changes in equity of the bank due to the acquisition are as below:

Percentage of equity Consideration

Particulars Date of Merger
interest acquired transferred
Hathway Finance Ltd 4th September, 2019 100% 126,000,000
Consideration Paid
The bank issued 1,260,000 shares to shareholders of Hathway Finance Ltd at par value of Rs. 100. The
consideration value of Rs. 126,000,000 is on the basis of swap ratio of 42 shares for every 100 held,
as per the valuation report prepared by independent valuator in accordance with valuation guidelines
specified in the Merger and Acquisition By law 2073, issued by Nepal Rastra Bank.
Assets acquired and liabilities recognized at the date of acquisition
Amount in NPR
Particulars Fair Value
Liabilities
Deposits 27,98,55,262
Other Liabilities 1,43,30,544
Total Liabilities 29,41,85,806
Assets
Cash Balance 39,15,592

160 GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19

 Particulars Fair Value
Balance with Nepal Rastra Bank 1,50,25,741
Balance with Banks / Financial Institutions 1,81,133
Money at Call and Short Notice 15,20,84,862
Investments 1,00,000
Loan Advances and Bills Purchase 32,49,96,250
Fixed Assets 43,48,319
Other Assets 1,05,15,624
Total Assets 51,11,67,521
Net Assets Acquired 21,69,81,714
Bargain Purchase Gain/Loss
NFRS 3 “Business Combinations” applies to a transaction or other event that meets the definition of
business combination and does not apply to:
a. the formation of a joint venture.
b. the acquisition of an asset or a group of assets that does not constitute a business.
c. a combination of entities or businesses under common control (paragraphs B1–B4 provide related
application guidance)
As stated in Paragraph B1 of Appendix B Application Guidance, Business Combination does not apply
to a business combination of entities or businesses under common control. A business combination
involving entities or businesses under common control is a business combination in which all of the
combining entities or businesses are ultimately controlled by the same party or parties both before and
after the business combination, and that control is not transitory.
As stated in Paragraph 37, transferred assets and liabilities remain within the combined entity after
business combination and not to its former owners and therefore retains control of them. In that
situation, the acquirer shall measure those assets and liabilities at their carrying amounts immediately
before the acquisition date and shall not recognize a gain or loss in profit or loss on assets or liabilities it
controls both before and after the business combination.
In reference to the above provisions of NFRS 3 “Business Combinations” Bank has not recognized any
bargain purchase gain resulting from the combination.

GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19 161

 1. Capital Structure and Capital Adequacy Related disclosure as per New Capital Adequacy
• Tier 1 Capital and breakdowns of its Components

Particulars Amount (NPR)

Paid Up Capital 10,310,516
Irredeemable Non-cumulative preference shares -
Share Premium -
Proposed Bonus Equity Shares -
Statutory General Reserve 2,547,591
Retained Earning 2,663,622
Un-audited current year cumulative profit/(loss) -
Capital Redemption Reserve -
Capital Adjustment Reserve -
Dividend Equalization Reserve -
Debenture Redemption Reserve -
Other Free Reserve 96,261
Less: Intangible Assets (28,289)
Less: Deferred Tax Asset -
Less: Investment in equity of institutions with financial interests (704,803)
Adjustment under Pillar II 14,887,054
Less: Loans & Facilities extended to related parties and restricted lending -
Common Equity Tier I Capital 14,884,899
Additional Tier I Capital
Perpetual Non-Cumulative Preference Share Capital -
Perpetual Debt Instruments -
Stock Premium -
Core Capital (Tier I) 14,884,899
• Tier 2 Capital and breakdowns of its Components

Particulars Amount (NPR)

Subordinated Term Debt 1,200,000
General Loan Loss Provision 1,101,575
Exchange Fluctuation Reserve 121,192
Investment Reserve Fund 42,956
Supplementary Capital 2,465,723
• Detailed information about the Subordinated Term Debts with information on the
outstanding amount, maturity, amount raised during the year and amount eligible to be
reckoned as capital funds:
The Bank had issued “10 % Global Bank Ltd Debenture 2076" of Rs.1, 000 each during the FY 2011-12. The
outstanding amount of the Debentures is Rs.400 million. The debenture was matured on Asar 30 2076.
Further the Bank issued 1,500,000 “10.25% Global IME Bank Ltd Debenture 2080/81" of Rs.1,000 each
during the FY 2075-76. The outstanding amount of the Debentures is Rs.1,500 million. Eligible amount
for capital fund has been assigned at 20% of the total outstanding debenture as per the Nepal Rastra

162 GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19

Bank Directives. Capital Redemption Reserve has been not been created during the financial year as the
10% Gloal Bank Ltd Debenture 2076 was matured and Nepal Rastra Bank has exempted to transfer the
amount to Capital Redemption Reserve in the first year of issue of debenture and the year of maturity.
Hence the outstanding balance in capital redemption reserve of Rs. 347,619,047.00 has been transferred
to retained earnings in current financial year.
• Deductions from capital
Deductions in Tier I Capital Fund have been made for equivalent amounts in respect of following items:

Particulars Amount (NPR)

Bank's equity investment in institutions with financial interest 704,803
Intangible Assets 28,289
Total Deductions 733,092
• Total qualifying Capital

Particulars Amount (NPR)

Common Equity Tier I 14,884,899
Core Capital (Tier I) 14,884,899
Supplementary capital (Tier II) 2,465,723
Total Capital Fund 17,352,777
• Capital Adequacy Ratio

Description Ratio
Common Equity Tier 1 Capital to Total Risk Weighted Exposures (After Bank's
10.56%
adjustments of Pillar II)
Tier 1 Capital to Total Risk Weighted Exposures(After Bank's adjustments of Pillar II) 10.56%
Tier 1 and Tier 2 Capital to Total Risk Weighted Exposures(After Bank's adjustments of
12.31%
Pillar II)
• Summary of the Bank’s internal approach to assess the adequacy of its capital to support
current and future activities, if applicable;
The Management Team of the Bank is responsible for understanding the nature and level of risk taken
by the Bank and relating the risk to capital adequacy level. For assessing the adequacy of the capital,
the Bank’s Management has introduced Internal Capital Adequacy Assessment Process (hereinafter
referred to as ICAAP). The ICAAP comprises the Bank’s procedures and measures designed to ensure
the following:
a) An appropriate identification and measurement of risks;
b) An appropriate level of internal capital in relation to the Bank’s risk profile; and
c) Application and further development of suitable risk management systems for the Bank.
In addition to this, the Bank in the last 3 years has merged with other Banks and financial institutions
to maintain the level of capital adequacy in line with the increase in business. The Bank further plans to
adopt and implement sound polices for maintaining the capital adequacy in the future.
• Summary of the terms, conditions and main features of all capital instruments, especially
in case of subordinated term debts including hybrid capital instruments.
The Bank issued 1,500,000 “10.25% Global IME Bank Ltd Debenture 2080/81" of Rs.1,000 each during

GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19 163

 the FY 2075-76. The main features of the subordinated term debt issued by the Bank are as follows:
ƒ Maturity period: 5 Years.
ƒ Interest rate: 10.25% per annum.
ƒ Interest Payment frequency: Half Yearly.
ƒ Capital Redemption Reserve shall be created from the second year of issue.
2. Risk Exposure
• Risk weighted exposures for Credit Risk, Market Risk and Operational Risk:

Particulars Amount (NPR)

Risk Weighted Exposure for Credit Risk 122,185,915
Risk Weighted Exposure for Operational Risk 7,083,229
Risk Weighted Exposure for Market Risk 2,209,202
Total Risk Weighted Exposures 131,478,347
Add: 3% of the total RWE as per NRB directives (6.4 a 9) 3,944,350
Add: Desired level of disclosure requirement has not been achieved. Add 3% of
3,944,350
RWE (6.4 a 10)
Add: additional capital charge of 3% of Gross Income as per NRB directives (6.4 a 7) 1,581,140
Total Risk Weighted Exposures (After Bank's Adjustments of Pillar II) 140,948,188
• Risk Weighted Exposures under each of 11 categories of Credit Risk:

Particulars Amount (NPR)

a) Claims on government & central bank -
b) Claims on other official entities 360,038,735
c) Claims on banks 2,034,361,996
d) Claims on corporate & securities firms
64,718,136,265
e) Claims on regulatory retail portfolio
19,899,661,165
f) Claims secured by residential properties 8,198,185,628
g) Claims secured by commercial real state 1,313,014,746
h) Past due claims 1,951,889,807
i) High risk claims 5,921,691,999
j) Other assets 2,460,239,448
k) Off balance sheet items
15,388,882,667
Total Risk Weightage Assets 122,246,102,456
3. Details of Non-Performing loan ( Total amount and net amount)

Particulars Amount (NPR)

Restructured and rescheduled loan* -
Substandard loan 99,819,639

164 GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19

 Doubtful loans 113,140,885
Bad loan 409,560,387
Total 622,520,911
Provision For Loss 491,085,738
Net Amount 131,435,173
• Non-Performing Loan Ratio

Particulars Current Year Previous Year

NPA / Total Loan 0.55% 0.77%
Net NPA / Net Loan 0.12% 0.20%
• Movement of Non- performing Assets:

Current Year Previous Year Changes

Particulars
(Rs.) (Rs.) (%)
Non-Performing Assets (Gross) 622,520,911 717,438,172 -15.25%
Non-Performing Assets (Net) 131,435,173 188,021,321 -43.05%
• Write off of loans and interest Suspense during the year :

Current Year Previous Year

Particulars
(NPR) (NPR)
Write off of loans during the year - 150,984,395
Write off of interest Suspense during the year - 56,919,614
• Details of additional Loan Loss Provision:

Current Year Previous Year

Particulars
(NPR) (NPR)
1. Pass 208,370,072 124,027,124
2. Watch List 28,148,123 45,418,595
3. Restructured (3,068,404) (36,596)
4. Substandard (17,684,875) (18,789,284)
5. Doubtful 17,947,306 (58,847,539)
6. Loss (35,525,140) (381,603,085)
Total Loan Loss Provision 198,187,082 (289,830,785)
• Segregation of Investment Portfolio

Current Year Previous Year

Particulars
(NPR) (NPR)
Held for Trading -
Held to Maturity 18,731,750,260 19,406,322,527
Available for Sale 2,065,102,031 1,413,772,020
Total Investments 20,796,852,291 20,820,094,547

GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19 165

 Schedule 4.29

STATEMENT OF LOANS AND ADVANCES TO DIRECTORS/CHIEF

EXECUTIVE /PROMOTERS/EMPLOYEES AND SHAREHOLDERS
Amount in NPR

Outstanding up to Recovered in Additional Outstanding as on

Name of Promoter/ Previous Year Current Year Lending Asar end 2076
Director/Chief
Executive Current
Principal Interest Principal Principal Interest
Interest Year
A. Directors
1. …………………… - - - - - - -
2. …………………… - - - - - - -
3. …………………… - - - - - - -
B. Chief Executive
1. …………………… - - - - - - -
2. …………………… - - - - - - -
C. Promoters
1. …………………… - - - - - - -
2. …………………… - - - - - - -
3. …………………… - - - - - - -
D. Employees -
1. …………………… - - - - - - -
2. …………………… - - - - - - -
E. Shareholders
1. …………………… - - - - - - -
2. …………………… - - - - - - -
3. …………………… - - - - - - -
Total - - - - - - -

166 GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19

 Schedule 4.30 (A)
CAPITAL ADEQUACY TABLE
NPR In Thousand

1. 1 RISK WEIGHTED EXPOSURES Current Year Previous Year

a Risk Weighted Exposure for Credit Risk 102,098,333

122,185,915
b Risk Weighted Exposure for Operational Risk 7,083,229 6,011,851
c Risk Weighted Exposure for Market Risk 2,209,202 1,733,388
Total Risk Weighted Exposures (Before adjustments of Pillar II) 131,478,347 109,843,572
Adjustments under Pillar II
SRP 6.4a (5) ALM policies & practices are not satisfactory - -
Add .....% of the total deposit due to insufficient Liquid
SRP 6.4a (6) - -
Assets
Add RWE equivalent to reciprocal of capital charge of 3
SRP 6.4a (7) 1,581,100 1,456,060
% of gross income.
Overall risk management policies and procedures are not
SRP 6.4a (9) 3,944,350 3,295,307
satisfactory. Add 3% of RWE
Desired level of disclosure requirement has not been
SRP 6.4a (10) 3,944,350 3,295,307
achieved.
Total Risk Weighted Exposures (After Bank's adjustments of Pillar
140,948,148 117,890,246
II)

1.2 CAPITAL Current Year Previous Year

(A) Tier 1 Capital [Core Capital (CET 1 + AT 1)] 12,165,786
14,884,899
Common Equity Tier 1 (CET 1) 12,165,786
14,884,899
a Paid up Equity Share Capital 10,310,516 8,888,376
b Equity Share Premium -
c Proposed Bonus Equity Shares -
d Statutory General Reserves 2,547,591 1,995,201
e Retained Earnings 2,663,622 1,451,344
f Unaudited current year cumulative profit/(loss)
g Capital Redemption Reserve 347,619
h Capital Adjustment Reserve -
i Dividend Equalization Reserves
j Other Free Reserve 96,261 80,194
k Less: Goodwill
l Less: Intangible Assets 28,289 31,946
m Less: Deferred Tax Assets
n Less: Fictitious Assets

GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19 167

 Less: Investment in equity in licensed Financial
o
Institutions
Less: Investment in equity of institutions with financial
p 704,803 565,000
interests
Less: Investment in equity of institutions in excess of
q
limits
Less: Investments arising out of underwriting
r
commitments
s Less: Reciprocal crossholdings
Less: Purchase of land & building in excess of limit and
t
unutilized
u Less: Cash Flow Hedge
v Less: Defined Benefits Pension Assets
w Less: Unrecognized Defined Benefit Pension Liabilities
x Less: Other Deductions
Adjustments under Pillar II
SRP 6.4a(1) Less: Shortfall in Provision
Less: Loans & Facilities extended to related parties and
SRP 6.4a(2) - -
restricted lending
Additional Tier 1 (AT 1) - -
a Perpetual Non-Cumulative Preference Share Capital
b Perpetual Debt Instruments
c Stock Premium

(B) Supplementary Capital (Tier 2) 2,465,723 1,357,605

a Cumulative and/or Redeemable Preference Share
Subordinated Term Debt less 20% Amortization (
b 1,200,000
2.3(b) of Capital Adequacy Framework)
c Hybrid Capital Instruments
d General Loan Loss Provision 1,101,575 1,035,490
e Exchange Equalization Reserve 121,192 99,159
f Investment Adjustment Reserve 57,956 222,956
g Assets Revaluation Reserve
h Other Reserves
Total Capital Fund (Tier I and Tier II) 17,350,622 13,523,391

Current Previous
1.3 CAPITAL ADEQUACY RATIOS
Year Year
Common Equity Tier 1 Capital to Total Risk Weighted Exposures (After Bank's
10.56% 10.32%
adjustments of Pillar II)
Tier 1 Capital to Total Risk Weighted Exposures (After Bank's adjustments of
10.56% 10.32%
Pillar II)
Tier 1 and Tier 2 Capital to Total Risk Weighted Exposures (After Bank's
12.31% 11.47%
adjustments of Pillar II)

168 GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19

 Schedule 4.30 (B)
Risk Weighted Exposure for Credit Risk
Specific Risk Risk Weighted
Book Value Eligible CRM Net Value Previous Year
A. Balance Sheet Exposures Provision Weight Exposures
a b c d=a-b-c e f=d*e
Cash Balance 3,049,614 - - 3,049,614 0% - -
Balance With Nepal Rastra Bank 5,217,313 - - 5,217,313 0% - -
Gold 400 - - 400 0% - -
Investment in Nepalese Government Securities 8,941,780 - - 8,941,780 0% - -
All Claims on Government of Nepal 97,385 - - 97,385 0% - -
Investment in Nepal Rastra Bank securities 4,687,621 - - 4,687,621 0% - -
All claims on Nepal Rastra Bank - - - - 0% - -
Claims on Foreign Government and Central - - - - 0% - -
Bank (ECA 0-1)
Claims on Foreign Government and Central - - - - 20% - -
Bank (ECA -2)
Claims on Foreign Government and Central - - - - 50% - -
Bank (ECA -3)
Claims on Foreign Government and Central - - - - 100% - -
Bank (ECA-4-6)
Claims on Foreign Government and Central - - - - 150% - -
Bank (ECA -7)
Claims On BIS, IMF, ECB, EC and MDB's - - - - 0% - -
recognized by the framework
Claims on Other Multilateral Development - - - - 100% - -
Banks
Claims on Public Sector Entity (ECA 0-1) - - - - 20% - -
Claims on Public Sector Entity (ECA 2) - - - - 50% - -
Claims on Public Sector Entity (ECA 3-6) - - - - 100% - -
Claims on Public Sector Entity (ECA 7) 240,026 - - 240,026 150% 360,039 123,577
Claims on domestic banks that meet capital 5,809,219 - 1,700 5,807,519 20% 1,161,504 804,671
adequacy requirements
Claims on domestic banks that do not meet 33,254 33,251 - 3 100% 3 -
capital adequacy requirements
Claims on foreign bank (ECA Rating 0-1) 3,886,582 - - 3,886,582 20% 777,316 348,545
Claims on foreign bank (ECA Rating 2) 119,158 - - 119,158 50% 59,579 -
Claims on foreign bank (ECA Rating 3-6) - - - - 100% - -
Claims on foreign bank (ECA Rating 7) - - - - 150% - -
Claims on foreign bank incorporated in SAARC
region operating with a buffer of 1% above 179,799 - - 179,799 20% 35,960 21,616
their respective regulatory capital requirement
Claims on Domestic Corporates 62,888,858 127,403 30,780 62,730,675 100% 62,730,675 50,491,937
Claims on Foreign Corporates (ECA 0-1) - - - - 20% - -
Claims on Foreign Corporates (ECA 2) - - - - 50% - -
Claims on Foreign Corporates (ECA 3-6) - - - - 100% - -
Claims on Foreign Corporates (ECA 7) - - - - 150% - -
Regulatory Retail Portfolio (Not Overdue) 26,914,134 12,047 369,380 26,532,707 75% 19,899,530 17,272,389
Claims fulfilling all criterion of regularity retail - - - - 100% - -
except granularity
Claims secured by residential properties 12,351,018 5,164 - 12,345,854 60% 7,407,513 5,677,103
Claims not fully secured by residential - - - - 150%
properties
Claims secured by residential properties 236,283 9,860 - 226,422 100% 226,422 227,833
(Overdue)
Claims secured by Commercial real estate 1,313,472 457 - 1,313,015 100% 1,313,015 1,025,734
Past due claims (except for claims secured by 1,780,002 494,935 541 1,284,526 150% 1,926,789 1,859,245
residential properties)
High Risk claims 2,607,567 30 - 2,607,537 150% 3,911,305 5,769,246
Lending against securities (bonds & shares) 2,014,594 4,207 - 2,010,387 100% 2,010,387 -
Investments in equity and other capital
instruments of institutions listed in stock 194,212 - - 194,212 100% 194,212 313,245
exchange

GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19 169

 Risk Weighted Exposure for Credit Risk (Contd...)
Specific Risk Risk Weighted
Book Value Eligible CRM Net Value Previous Year
A. Balance Sheet Exposures Provision Weight Exposures
a b c d=a-b-c e f=d*e
Investments in equity and other capital
instruments of institutions not listed in the 1,166,087 - - 1,166,087 150% 1,749,131 777,131
stock exchange
Staff loan secured by residential property 940,418 - - 940,418 60% 564,251 409,012
Interest Receivable/claim on government 103,623 - - 103,623 0% - -
securities
Cash in transit and other cash items in the - - - - 20% - -
process of collection
Other Assets (as per attachment) 3,433,174 972,934 - 2,460,239 100% 2,460,239 2,343,502
TOTAL (A) 148,205,593 1,660,290 402,401 146,142,902 106,787,869 87,464,785
Specific Risk Risk Weighted Risk Weighted
B. Off Balance Sheet Exposures Book Value Eligible CRM Net Value
Provision Weight Exposures Exposures
Revocable Commitments - - - - 0% - -
Bills Under Collection - - - - 0% - -
Forward Exchange Contract Liabilities 8,187,952.15 - - 8,187,952.15 10% 818,795 638,173
LC Commitments With Original Maturity Upto 5,231,505.53 - 239,665.62 4,991,839.91 20% 998,368 1,124,931
6 months domestic counterparty
Foreign counterparty (ECA Rating 0-1) - - - - 20% - -
Foreign counterparty (ECA Rating 2) - - - - 50% - -
Foreign counterparty (ECA Rating 3-6) - - - - 100% - -
Foreign counterparty (ECA Rating 7) - - - - 150% - -
LC Commitments With Original Maturity Over 1,323,139.17 - 51,113.97 1,272,025.21 50% 636,013 1,814
6 months domestic counterparty
Foreign counterparty (ECA Rating 0-1) - - - - 20% - -
Foreign counterparty (ECA Rating 2) - - - - 50% - -
Foreign counterparty (ECA Rating 3-6) - - - - 100% - -
Foreign counterparty (ECA Rating 7) - - - - 150% - -
Bid Bond, Performance Bond and Counter 12,260,296.28 - 408,050.28 11,852,246.00 50% 5,926,123 4,967,965
guarantee domestic counterparty
Foreign counterparty (ECA Rating 0-1) - - - - 20% - -
Foreign counterparty (ECA Rating 2) - - - - 50% - -
Foreign counterparty (ECA Rating 3-6) - - - - 100% - -
Foreign counterparty (ECA Rating 7) - - - - 150% - -
Underwriting commitments - - - - 50% - -
Lending of Bank's Securities or Posting of - - - - 100% - -
Securities as collateral
Repurchase Agreements, Assets sale with - - - - 100% - -
recourse
Advance Payment Guarantee 4,257,923.86 - 105,465.63 4,152,458.23 100% 4,152,458 4,835,391
Financial Guarantee - - - - 100% - -
Acceptances and Endorsements 1,453,802.34 - - 1,453,802.34 100% 1,453,802 1,493,331
Unpaid portion of Partly paid shares and - - - - 100% - -
Securities
Irrevocable Credit commitments (short term) 5,431,996.58 - - 5,431,996.58 20% 1,086,399 1,402,867
Irrevocable Credit commitments (long term) 11,002.07 - - 11,002.07 50% 5,501 9,060
Claims on foreign bank incorporated in SAARC
region operating with a buffer of 1% above - - - - 20% - -
their respective regulatory capital requirement
Other Contingent Liabilities 126,787.55 - 21,091.93 105,695.62 100% 105,696 106,593
Unpaid Guarantee Claims 108,411.41 - 966.04 107,445.38 200% 214,891 53,422
TOTAL (B) 38,392,817 - 826,353 37,566,463 15,398,046 14,633,548
Total RWE for credit Risk Before 186,598,410 1,660,290 1,228,755 183,709,365 122,185,915 102,098,333
Adjustment (A) +(B)
Adjustments under Pillar II
SRP 6.4a(3) - Add 10% of the loans & facilities in excess of Single Obligor Limits to RWE - -
SRP 6.4a(4) - Add 1% of the contract (sale) value in case of the sale of credit with recourse to RWE - -
Total RWE for Credit Risk after Bank's 122,185,915 102,098,333
adjustments under Pillar II

170 GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19

 Schedule 4.30(C)
Eligible Credit Risk Mitigants
Deposits G'tee Sec/G'tee G'tee of G'tee Sec/G'tee
Govt.&
Deposits with of Previous
Gold NRB of of Other domestic of of Foreign Total
with Bank other Securities Govt.
Credit exposures Year
Nepal Sovereigns banks MDBs Banks
banks/FI
(a) (b) (c) (d) (e) (f) (g) (h) (i)
Balance Sheet Exposures
Claims on Foreign government and - - - - - - - - - - -
Central Bank (ECA -2)
Claims on Foreign government and - - - - - - - - - - -
Central Bank (ECA -3)
Claims on Foreign government and - - - - - - - - - - -
Central Bank (ECA-4-6)
Claims on Foreign government and - - - - - - - - - - -
Central Bank (ECA -7)
Claims on Other Multilateral Development - - - - - - - - - - -
Banks
Claims on Public Sector Entity (ECA 0-1) - - - - - - - - - - -
Claims on Public Sector Entity (ECA 2) - - - - - - - - - - -
Claims on Public Sector Entity (ECA 3-6) - - - - - - - - - - -
Claims on Public Sector Entity (ECA 7) - - - - - - - - - - -
Claims on domestic banks that meet 1,700 - - - - - - - - 1,700.00 1,350.00
capital adequacy requirements
Claims on domestic banks that do not - - - - - - - - - - -
meet capital adequacy requirements
Claims on foreign bank (ECA Rating 0-1) - - - - - - - - - - -
Claims on foreign bank (ECA Rating 2) - - - - - - - - - - -
Claims on foreign bank (ECA Rating 3-6) - - - - - - - - - - -
Claims on foreign bank (ECA Rating 7) - - - - - - - - - - -
Claims on foreign bank incorporated in
SAARC region operating with a buffer - - - - - - - - - - -
of 1% above their respective regulatory
capital requirement
Claims on Domestic Corporates 30,780 - - - - - - - - 30,780 76,341
Claims on Foreign Corporates (ECA 0-1) - - - - - - - - - - -
Claims on Foreign Corporates (ECA 2) - - - - - - - - - - -
Claims on Foreign Corporates (ECA 3-6) - - - - - - - - - - -
Claims on Foreign Corporates (ECA 7) - - - - - - - - - - -
Regulatory Retail Portfolio (Not Overdue) 369,380 - - - - - - - - 369,380 355,597
Claims fulfilling all criterion of regularity - - - - - - - - - - -
retail except granularity
Claims secured by residential properties - - - - - - - - - - -
Claims not fully secured by residential - - - - - - - - - - -
properties
Claims secured by residential properties - - - - - - - - - - -
(Overdue)
Claims secured by Commercial Real Estate - - - - - - - - - - -
Past due claims (except for claims secured - - 541 - - - - - - 541 -
by residential properties)
High Risk claims - - - - - - - - - - -

GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19 171

 Eligible Credit Risk Mitigants (Contd...)
Deposits G'tee Sec/G'tee G'tee of G'tee Sec/G'tee
Govt.&
Deposits with of Previous
Gold NRB of of Other domestic of of Foreign Total
with Bank other Securities Govt.
Credit exposures Year
Nepal Sovereigns banks MDBs Banks
banks/FI
(a) (b) (c) (d) (e) (f) (g) (h) (i)
Investments in equity and other capital
instruments of institutions listed in stock - - - - - - - - - - -
exchange
Investments in equity and other capital
instruments of institutions not listed in - - - - - - - - - - -
the stock exchange
Other Assets (as per attachment) - - - - - - - - - - -
Total 401,860 - 541 - - - - - - 402,401 433,288
Off Balance Sheet Exposures
Forward Exchange Contract Liabilities - - - - - - - - - - -
LC Commitments With Original Maturity - - - - - - - - - - 221,344
Upto 6 months domestic counterparty
Foreign counterparty (ECA Rating 0-1) 239,665 - - - - - - - - 239,666 -
Foreign counterparty (ECA Rating 2) - - - - - - - - - - -
Foreign counterparty (ECA Rating 3-6) - - - - - - - - - - -
Foreign counterparty (ECA Rating 7) - - - - - - - - - - -
LC Commitments With Original Maturity - - - - - - - - - - 458,247
Over 6 months domestic counterparty
Foreign counterparty (ECA Rating 0-1) 51,114 - - - - - - - - 51,114 -
Foreign counterparty (ECA Rating 2) - - - - - - - - - - -
Foreign counterparty (ECA Rating 3-6) - - - - - - - - - - -
Foreign counterparty (ECA Rating 7) - - - - - - - - - - -
Bid Bond, Performance Bond and Counter - - - - - - - - - - 359,541
guarantee domestic counterparty
Foreign counterparty (ECA Rating 0-1) 408,050 - - - - - - - - 408,050 -
Foreign counterparty (ECA Rating 2) - - - - - - - - - - -
Foreign counterparty (ECA Rating 3-6) - - - - - - - - - - -
Foreign counterparty (ECA Rating 7) - - - - - - - - - - -
Underwriting commitments - - - - - - - - - - -
Lending of Bank's Securities or Posting of - - - - - - - - - - -
Securities as collateral
Repurchase Agreements, Assets sale with - - - - - - - - - - -
recourse
Advance Payment Guarantee - - - - - - - - - - 22,424
Financial Guarantee 105,466 - - - - - - - - 105,466 -
Acceptances and Endorsements - - - - - - - - - - -
Unpaid portion of Partly paid shares and - - - - - - - - - - -
Securities
Irrevocable Credit commitments (short
- - - - - - - - - - -
term)
Irrevocable Credit commitments (long - - - - - - - - - - -
term)
Other Contingent Liabilities - - - - - - - - - - -
Unpaid Guarantee Claims 21,092 - - - - - - - - 21,092 249
Total 825,387 - - - - - - - - 825,387 1,061,806
Grand Total 1,227,248 - 541 - - - - - - 1,227,788 1,495,094

172 GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19

 Schedule 4.30(C)
Risk Weighted Exposure for Operational Risk
NPR in Thousand

Financial Year Previous

S.N. Particulars
2072-73 2073-74 2074-75 Year
1 Net Interest Income 2,889,554 3,664,381 3,876,884
2 Commission and Discount Income 311,850 866,510 933,457
3 Other Operating Income 493,463 151,698 198,164
4 Exchange Fluctuation Income 251,095 230,633 261,961
Addition/Deduction in Interest Suspense during the
5 36,817
period
6 Gross income (a) 3,982,779 4,913,223 5,270,466
7 Alfa (b) 15% 15% 15%
8 Fixed Percentage of Gross Income [c=(a×b)] 597,417 736,983 790,570
Capital Requirement for operational risk (d)
9 708,323 604,170
(average of c)
Risk Weight (reciprocal of capital requirement of
10 10 10
10%) in times (e)
11 Equivalent Risk Weight Exposure [f=(d×e)] 7,083,234 6,041,697

GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19 173

 Schedule 4.30 (E)
Risk Weighted Exposure for Market Risk
Amount in NPR

Previous Year
Open Position Exchange Open Position Relevant Open
S.No. Currency Relevant Open
(FCY) Rate (NPR) Position
Position
1 INR 2,673,431,081 1.60 4,279,628,475 4,279,628 3,409,783
2 USD (958,935) 109.85 (105,339,020) 105,339 35,166
3 GBP 4,699 137.32 645,248 645 632
4 EUR 17,442 123.54 2,154,783 2,155 190
5 THB 49,940 3.55 177,252 177 541
6 CHF 310 111.34 34,517 35 297
7 AUD 47,961 76.93 3,689,457 3,689 175
8 CAD 14,620 84.19 1,230,792 1,231 299
9 SGD 14,717 80.95 1,191,350 1,191 1,350
10 JPY (45,389) 1.02 (46,070) 46 340
11 HKD 23,830 14.05 334,735 335 298
12 DKK 39,700 16.53 656,416 656 493
13 SEK 260 11.71 3,045 3 3
14 SAR 290,820 29.28 8,514,686 8,515 4,385
15 QAR 204,108 30.17 6,157,066 6,157 4,362
16 AED 150,283 29.97 4,504,103 4,504 3,246
17 MYR 94,536 26.74 2,527,798 2,528 3,124
18 KRW 4,842,000 0.09 446,917 447 100
19 CNY 36,510 15.98 583,506 584 807
20 KWD 1,497 360.43 539,387 539 1,053
21 BHD - - 131
(a) Total Open Position 4,207,634,444 4,418,405 3,466,777
(b) Fixed Percentage 5% 5%
(c) Capital Charge for Market Risk (=a×b) 220,920 173,339
(d) Risk Weight (reciprocal of capital requirement of 10%) in times 10 10
(e) Equivalent Risk Weight Exposure (=c×d) 2,209,202 1,733,388

174 GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19

 Schedule 4.34

Statements of loan taken by Promoters/ Group of Promoters from Other

Bank and Financial Institution against pledge of Promoters Shares
Percentage
Loan No of
S. Name of Promoters/Group Total No with Total
Name of the Bank/Financial Institution Amount Pledged Remarks
No of Promoters of Shares Paid up
(Rs.) Share
Capital
1 Mira Pandey 26,547 0.03% Mahalaxmi Finance Limited 1,150,000 20,052
2 Bharat Regmi 33,093 0.03% Siddhartha Bank Limited 3,554,000 33,053
3 Rochana Bhattarai 9,131 0.01% Jyoti Bikash Bank Limited 596,268 7,871
4 Suresh Bhandari 10,620 0.01% Manjushree Financial Institution Limited 1,970,000 7,189
5 Maheswor Paudel 5,733 0.01% Fewa Bikas Bank Limited 450,000 4,942
6 Archana Thakur Mishra 5,309 0.01% Jyoti Bikash Bank Limited 804,960 4,160
7 Sumit Kumar Agarwal 3,100,445 3.01% Kumari Bank Limited 126,700,595 1,550,140
8 Rajendra Khatri 11,287 0.01% Fewa Bikas Bank Limited 700,000 10,260
9 Rishab Rungta 26,548 0.03% Garima Bikas Bank Limited 1,850,000 20,805
10 Prakash Joshi 66,176 0.06% Prime Commercial Bank Limited 3,615,232 47,147
11 Sushma Dwivedi Lohani 70,219 0.07% Nepal Credit & Commerce Bank Limited 4,343,315 60,534
12 Mahesh Raj Pandey 10,620 0.01% Yeti Development Bank Limited 3,500,000 7,189
Prudential Capital
13 34,067 0.03% Everest Bank Linited 4,690,000 23,063
Management Co. Pvt. Ltdd
14 Subhash Kumar Khetan 10,619 0.01% Siddhartha Bank Limited 700,000 10,618
15 Sher Bahadur Chhetri 26,548 0.03% United Finance Limited 2,056,262 20,805
16 Geha Nath Dhungana 127,803 0.12% Siddhartha Bank Limited 6,414,000 60,256
17 Shila Kumari Pokharel 20,343 0.02% Siddhartha Bank Limited 1,392,000 17,537
18 Narayan Bhakta Uprety 10,620 0.01% Sunrise Bank Limited 381,385 5,845
19 Ruchika Dugar 20,343 0.02% Nepal Credit and Commerce Bank Limited 1,322,000 17,537
20 Mohana Lohani 26,548 0.03% Sanima Bank Limited 3,662,694 17,972
21 Hathway Investment Nepal 78,027 0.08% Nepal Bank Limited 5,753,292 67,265
22 Uma Bista 18,128 0.02% Jyoti Bikash Bank Limited 2,580,197 18,127
23 Ashwini Kumar Acharya 86,057 0.08% IME Co-Operative Service Limited 5,000,000 86,057
24 Shyam Bahadur G C 2,302 0.00% Jyoti Bikash Bank Limited 142,848 1,984
S R Hydro And Investment
25 24,158 0.02% Sunrise Bank Limited 2,476,960 16,000
Pvt. Limited
26 Santosh Babu Lohani 127,671 0.12% Mahalaxmi Bikas Bank Limited 1,350,000 15,000
27 Basanta Raj Adhikari 166,068 0.16% IME Co-Operative Service Limited 15,000,000 130,418
28 Arjun Poudel Sharma 75,624 0.07% IME Co-Operative Service Limited 6,300,000 59,000
29 Homeland Developers 1,611,473 1.56% NMB Bank Limited 585,000,000 443,467
30 Sangeeta Gyawali 19,571 0.02% IME Co-Operative Service Limited 1,900,000 13,928
31 Joon Shrestha 26,548 0.03% IME Co-Operative Service Limited 1,461,100 14,611
32 Continental Investment 2,356,813 2.29% Nepal Bank Limited 302,607,887 1,015,867
33 Suhrid Raj Ghimire 501,075 0.49% Nepal Bank Limited 63,037,743 425,968
34 Dhan Bahadur Sherchan 90,212 0.09% Sunrise Bank Limited 8,591,616 48,816
35 Deepak Kumar Karki 26,548 0.03% Prime Commercial Bank Limited 1,720,000 22,885
36 Ashok Govinda Rajbhandari 97,879 0.09% Siddhartha Bank Limited 6,500,000 84,378
37 Krishna Prasad Pandey 283,116 0.27% IME Co-Operative Service Limited 9,000,000 191,663
38 Pramesh Kunwor 22,677 0.02% Om Development Bank Limited 3,016,215 19,549
39 Kamal Poudel 160,170 0.16% IME Co-Operative Service Limited 15,200,000 113,980
40 Tikaram Neupane 594,436 0.58% Prabhu Bank Limited 99,249,802 512,445
41 Saraswoti Sharma 38,041 0.04% Prabhu Bank Limited 7,114,541 30,219
Sapana Multipurpose Co-Operative
42 Roshani Swar 14,043 0.01% 650,000 3,197
Society Limited
Base Enterprises Pvt.
43 25,870 0.03% Prime Commercial Bank Ltd 2,900,000 17,513
Limited
44 Tilak Bahadur Bhandari 22,677 0.02% Siddhartha Bank Limited 1,500,000 15,351
45 Sangita Sibakoti 28,088 0.03% Manjushree Financial Institution Limited 2,100,000 22,012
46 Gayatri Kumari Sharma 17,682 0.02% Shree Investment And Finance Co. Limited 2,720,210 13,660

GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19 175

Statements of loan taken by Promoters/ Group of Promoters from Other Bank
and Financial Institution against pledge of Promoters Shares (Contd...)
Percentage
Loan No of
S. Name of Promoters/Group Total No with Total
Name of the Bank/Financial Institution Amount Pledged Remarks
No of Promoters of Shares Paid up
(Rs.) Share
Capital
47 Jhuma Vaidya 42,477 0.04% Siddhartha Bank Limited 2,894,000 28,756
48 Raman Kumar Shrestha 180,245 0.17% Citizens Bank International Limited 9,500,400 95,004
49 Asha Ram Suwal 79,644 0.08% Citizens Bank International Limited 6,865,800 68,658
50 Kalpana Kharel 26,548 0.03% Laxmi Bank Limited 1,773,000 22,885
51 Niraj Kharel 10,620 0.01% Laxmi Bank Limited 709,000 9,154
Captive Investment
52 28,021 0.03% Kailash Bikas Bank Limited 1,981,505 28,021
Company Pvt.Limited
53 Bishnu Hari Bhandari 31,388 0.03% International Development Bank Limited 1,727,600 17,276
54 Him Bahadur Gurung 3,536 0.00% Gurkhas Finance Limited 228,607 2,771
55 Udaya Nepali Shrestha 35,092 0.03% Sanima Bank Limited 2,658,307 30,251
56 Santosh Gopal Lacoul 38,278 0.04% Aarati Multipurpose Co-Operative Limited 5,741,478 32,997
Samir Ghimire Bhanne Yagya
57 22,086 0.02% Nepal Credit And Commerce Bank Limited 285,940 3,002
Raj Sharma Ghi
58 Janesh Shrestha 153,981 0.15% Citizens Bank International Limited 18,330,400 132,649
59 Ajay Kumar Jalan 16,931 0.02% Century Commercial Bank Limited 2,330,000 13,269
60 Naresh Kumar Rathi 106,192 0.10% Laxmi Bank Limited 6,500,000 91,545
61 Sunita Sureka Agrawal 314,097 0.30% Nepal Bangladesh Bank Limited 80,990,000 126,895
62 Bhim Prasad Timilsina 10,681 0.01% Siddhartha Bank Limited 703,000 8,370
63 Rajesh Upadhyay 304,274 0.30% NIC Asia Bank Limited 159,978,000 172,285
64 Hari Narayan Shrestha 10,620 0.01% Nabil Bank Limited 2,000,000 7,189
65 Shyam Prasad Shrestha 79,199 0.08% Kumari Bank Limited 4,693,094 20,410
66 Dasi Ram Khanal 15,929 0.02% Kailash Bikas Bank Limited 850,000 11,715
67 Sanjay Adhikari 258,175 0.25% Prabhu Bank Limited 15,986,989 258,154
68 Rajesh Kumar Agrawal 7,806 0.01% NIC Asia Bank Limited 2,541,250 6,116
69 Kamlesh Kumar Rateria 21,238 0.02% NIC Asia Bank Limited 9,600,000 5,473
70 Shiva Hari Dangal 8,136 0.01% NIC Asia Bank Limited 425,048 7,014
71 Sukunda Prasad Pradhan 183,040 0.18% Everest Bank Limited 12,389,000 60,000
72 Puspa Man Shrestha 151,152 0.15% Prabhu Bank Limited 20,122,636 151,152
73 Shyam Sundar Khetan 56,440 0.05% Kumari Bank Limited 3,456,502 48,654
74 Pushpa Man Shrestha 7,334 0.01% Prabhu Bank Limited 9,118,024 6,323
75 Namkhang Lama 73,678 0.07% Laxmi Bank Limited 259,000,000 57,737
76 Rachit Agrawal 3,919 0.00% United Finance Limited 277,707 3,918
Laxmi Bank Limited 259,000,000 135,687
77 Kusang Lama 173,144 0.17%
ICFC Finance Limited 1,684,316 23,891
Laxmi Bank Limited 120,000,000 46,942
78 Shamba Lama 73,678 0.07%
ICFC Finance Limited 1,477,962 20,964
International Development Bank Limited 81,660,000 432,403
79 Shovakar Neupane 551,748 0.54%
Nepal Credit and Commerce Bank Limited 6,538,039 43,241
Laxmi Bank Limited 272,302,389 170,336
80 Sonam Gyatso 202,616 0.20%
ICFC Finance Limited 1,970,475 27,950
Yeti Development Bank Limited 3,775,000 7,189
81 Srijana Pandey Lamsal 10,619 0.01%
Mahalaxmi Bikas Bank Limited 156,000 1,965
Surendra Bahadur Nhuchhe
82 10,042 0.01% Sincere Saving & Credit Cooperative 7,100,000 3,393
Pradhan
83 Sujana Pradhan 736.00 0.00% Sincere Saving & Credit Cooperative 7,100,000 249
84 Sangeeta Pradhan 736.00 0.00% Sincere Saving & Credit Cooperative 7,100,000 249

176 GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19

 Schedule 4.35
Comparison of unaudited and Audited financial statement as of
financial year 2075/76 (2018/19)
NPR In Thousand
Unaudited Audited
Reason for
Financial Financial Variance
Variance
Statement Statements
Rs Rs Rs %
Assets
Cash and Cash Equivalents 4,322,104 11,531,557 7,209,453 62.52% Note 1
Due from Nepal Rastra Bank 5,217,313 5,217,313 - 0.00%
Placement with Bank and Financial
6,564,039 - (6,564,039) -100.00% Note 1
Institutions
Derivative financial instruments 232,615 4,112,517 3,879,902 94.34% Note 2
Other trading assets - - - 0.00%
Loan and advances to B/FIs 4,017,329 4,054,634 37,305 0.92% Note 3
Loans and advances to customers 108,985,590 108,977,608 (7,982) -0.01% Note 4
Investment securities 13,690,390 13,153,152 (537,238) -4.08% Note 1
Current Tax Assets 1,259,551 1,259,702 151 0.01%
Investment in subsidiaries 219,775 219,775 - 0.00%
Investment in associates 319,578 319,578 - 0.00%
Investment property 118,685 118,685 - 0.00%
Property and equipment 1,373,574 1,373,574 - 0.00%
Goodwill and intangible assets 28,289 28,289 - 0.00%
Deferred Tax Assets 205,385 212,078 6,693 3.16% Note 5
Other Assets 1,212,876 1,075,102 (137,774) -12.82% Note 6
Total Assets 147,767,093 151,653,562 3,886,470 2.56%
Liabilities
Due to Banks and Financial Institutions 4,410,876 4,410,876 - 0.00%
Due to Nepal Rastra Bank 1,231,800 1,231,800 - 0.00%
Derivative financial instruments - 3,879,902 3,879,902 100.00% Note 2
Deposit from customers 120,088,440 120,088,440 - 0.00%
Borrowings - - - 0.00%
Current tax liabilities 1,173,676 1,202,570 28,895 2.40% Note 5
Provisions 925,238 - (925,238) -100.00% Note 7
Deferred Tax Liabilities - - - 0.00%
Other Liabilities 2,085,713 3,011,351 925,638 30.74% Note 7
Debt securities issued 1,496,453 1,496,453 - 0.00%
Subordinated Liabilities - - - 0.00%
Total Liabilities 131,412,196 135,321,392 3,909,196 2.89%
Equity
Share capital 10,310,516 10,310,516 - 0.00%
Share premium - -
Retained earnings 2,837,693 2,665,778 (171,915) -6.45% Note 8
Reserves 3,206,689 3,355,876 149,188 4.45% Note 9
Total equity attributable to equity holders 16,354,897 16,332,170 (22,727) -0.14%
Total Liabilities and Equity 147,767,093 151,653,562 3,886,470 2.56%

GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19 177

 Comparison of unaudited and Audited financial statement as of
financial year 2075/76 (2018/19) (Contd...)
Unaudited Audited
Reason for
Financial Financial Variance
Variance
Statement Statements
Rs Rs Rs %
Interest Income 13,457,016 13,530,885 73,869 0.55% Note 9
Interest Expenses 8,288,545 8,288,539 (7) 0.00%
Net interest income 5,168,471 5,242,346 73,875 1.41% Note 9
Fees, charges and commission income 1,181,079 1,181,096 17 0.00%
Fees, charges and commission expenses 197,877 216,434 18,556 8.57% Note 10
Net fee and commission income 983,202 964,663 (18,539) -1.92%
Net interest, fee and commission income 6,151,673 6,207,009 55,336 0.89%
Net Trading Income 412,125 412,125 - 0.00%
Other Operating Income 162,396 163,058 662 0.41%
Total operating income 6,726,193 6,782,191 55,998 0.83%
Impairment charge/(reversal) for loans and other losses 140,727 198,187 57,460 28.99% Note 4
Net Operating Income 6,585,466 6,584,004 (1,462) -0.02%
Operating Expenses
Personnel Expenses 1,563,643 1,579,662 16,019 1.01% Note 11
Other Operating Expenses 865,754 859,409 (6,344) -0.74% Note 10
Depreciation and Amortization 238,304 238,304 - 0.00%
Operating profit 3,917,765 3,906,629 (11,136) -0.29%
Non-operating income 27,290 27,290 - 0.00%
Non-operating expense - - - 0.00%
Profit before income tax 3,945,054 3,933,918 (11,136) -0.28%
Income Tax Expense
Current tax 1,173,676 1,202,570 28,895 2.40% Note 5
Deferred tax (23,916) (30,606) (6,690) 21.86% Note 5
Profit for the period 2,795,294 2,761,954 (33,340) -1.21%

Note 1 Reclassification of Placements with BFIs and T Bills with maturity less than 90 days to cash and cash
equivalent.
Note 2 Derivative financial instruments assets and liabilities presented separately
Note 3 Reclassification of loans and advances to BFIs
Note 4 Additional LLP and Classification of Interest receivable from other assets to loans and advances
Note 5 Change in Tax Base on completion of Statutory Audit
Note 6 Classification of Interest receivable from other assets to loans and advances, cash and cash
equivalents and investment securities
Note 7 Reclassification of Provisions to Other liabilities and reversal of expense provision.
Note 8 Cumulative effect of additional LLP, accrued income, income tax, deferred tax and transfer of reserve
Note 9 Recognition of AIR as per accrual basis with effect of 100% provisioned loans
Note 10 Reclassification of other expenses to fee based expenses
Note 11 Change of staff bonus calculation

178 GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19

 PRINCIPAL INDICATORS
F.Y. F.Y. F.Y. F.Y. F.Y. F.Y. F.Y. F. Y. F. Y. F. Y.
Particulars Indicator
2075/76 2074/75 2073/74 2072/73 2071/72 2070/71 2069/70 2068/69 2067/68 2066/67
1. Net Profit / Gross Income % 40.72% 41.24% 43.41% 35.03% 30.32% 41.05% 24.40% 28.97% 26.19% 10.92%
2. Earnings Per Share Rs. 26.79 23.64 25.51 19.33 15.58 19.57 16.15 11.79 14.06 4.95
3. Market Value per Share Rs. 293 290 388 515 479 640 432 160.00 209.00 260.00
4. Price Earnings Ratio Ratio 10.94 12.27 15.21 26.64 30.74 32.70 26.74 13.57 14.86 52.47
5. Stock Dividend on share capital (Bonus
% 12.75% 16.00% 10.00% 16.00% 23% 21.00% 15.00% 3.00% 6.67% -
Share)
6. Cash Dividend on share Capital % 12.75% 0% 10.00% 0% 0.% 4.00% - 10.00% 5.35% 5.00%
7. Interest Income/Loans & Advances % 12.29% 12.88% 10.20% 8.98% 10.00% 10.88% 13.43% 13.27% 15.37% 12.04%
8. Employee Expenses/Total Operating
% 59.00% 56.54% 59.13% 44.26% 46.10% 36.96% 37.40% 34.22% 39.50% 32.38%
Expenses
9. Interest Expenses to Total Deposits and
% 7.18% 7.26% 4.24% 3.06% 4.21% 4.74% 5.97% 7.47% 8.33% 6.26%
Borrowings
10. Exchange Fluctuation Gain/Total Income % 7.38% 6.91% 5.89% 6.36% 6.41% 5.84% 3.97% 5.52% 3.60% 5.29%
11. Staff Bonus/ Total Staff Expenses % 24.90% 22.16% 26.92% 29.77% 22.02% 34.43% 22.51% 24.09% 16.79% 14.89%
12. Total Operating Expenses/Total Assets % 1.77% 1.85% 1.54% 1.70% 1.99% 1.69% 1.99% 1.51% 2.24% 1.80%
13. Net Profit/Loans & Advances % 2.42% 2.25% 2.62% 2.27% 1.91% 2.26% 1.66% 1.28% 1.76% 0.60%
14. Net Profit/ Total Assets % 1.82% 1.67% 1.75% 1.58% 1.39% 1.62% 1.15% 0.87% 1.28% 0.42%
15. Credit to Deposit Ratio
a. Total Credit / Deposit % 91.62% 84.70% 79.30% 81.47% 83.47% 82.27% 79.13% 77.15% 84.82% 83.48%
b. Total Credit / Deposit and Core Capital % 78.69% 75.35% 71.24% 72.96% 74.41% 73.64% 72.28% 70.51% 78.02% 75.59%
16. Adequacy of Capital Fund on Risk
Weightage
Assets
a. CET1 % 10.56% 10.32% 10.23% 11.01%
b. Core Capital % 10.56% 10.32% 10.23% 11.01% 11.24% 10.94% 9.17% 9.21% 10.14% 10.01%
c. Total Capital Fund % 12.31% 11.47% 11.37% 12.35% 12.69% 12.38% 11.14% 11.66% 11.09% 10.90%
17. Liquidity % 22.13% 25.34% 33.54% 35.14% 30.12% 31.11% 32.25% 34.13% 27.23% 30.00%
18. Non-Performing Loans/Total Loans % 0.55% 0.77% 1.60% 1.89% 2.23% 2.55% 2.27% 1.64% 2.52% 0.85%
19. Weighted Average Interest Rate Spread % 4.47% 4.86% 3.36% 4.52% 4.11% 5.34% 4.21% 3.88% 3.27% 3.05%
20. Book Net worth (In Mio) Rs. 16,335 13,579 12,376 8,706 7,323 6,126 3,231 2,537 1,708 1,521
21. Total Employees No. 1696 1638 1348 1107 1117 1098 838 664 386 376

GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19 179

ABOUT SPECIAL RESOLUTION TO BE PRESENTED BEFORE 12TH ANNUAL GENERAL MEETING OF
GLOBAL IME BANK LIMITED TO BE HELD ON 18TH NOVEMBER, 2019

Three Columns Format (Tin-Mahale) of the Amendments in the Memorandum of Association

Reason for the

S.N. Clause Existing Provision Proposed Provision
Amendment
The Issued share capital The Issued share capital
of the Bank shall be Rs. of the Bank shall be Rs. To increase Bank’s
1 5 (Ka)
16,000,000,000.00 (Rupees 25,000,000,000.00 (Rupees authorized capital.
Sixteen Billion only). Twenty Five Billion only).
The Issued share capital The Issued share capital
of the Bank shall be Rs. of the Bank shall be Rs.
10,436,515,958.86 (Rupees 11,767,171,738.58 (Rupees
To increase Bank’s capital
Ten Billion Four Hundred Eleven Billion Seven Hundred
2 5 (Kha) after issue of bonus share
Thirty Six Million Five Sixty Seven Million One
to shareholders.
Hundred Fifteen Thousand Hundred Seventy One
Nine Hundred Fifty Eight and Thousand Seven Hundred
86/100 only). Thirty Eight and 25/100 only).
The Paid-up share capital The Paid-up share capital
of the Bank shall be Rs. of the Bank shall be Rs.
10,436,515,958.86 (Rupees 11,767,171,738.58 (Rupees
To increase Bank’s capital
Ten Billion Four Hundred Eleven Billion Seven Hundred
3 5 (Ga) after issue of bonus share
Thirty Six Million Five Sixty Seven Million One
to shareholders.
Hundred Fifteen Thousand Hundred Seventy One
Nine Hundred Fifty Eight and Thousand Seven Hundred
86/100 only). Thirty Eight and 25/100 only).

Three Columns Format (Tin-Mahale) of the Amendments in the Bank’s Regulation.

S.N. Clause Existing Provision Proposed Provision Reason for the Amendment
31 (Kha) Board Member Fees – Board Member Fees – 11th Annual General Meeting has
Chairman Rs. 11,000 and Chairman Rs. 17000 and approved the amendment and
Other Board Member Other Board Member enforcement from the Regulatory
Fees Rs. 10,000 Fees Rs. 15,000 Body Required and to match
present time scenario

180 GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19

 BOD report regarding Merger between Global IME Bank Limited and
Janata Bank Limited presented at 13th Annual General Meeting
Dear Shareholders, given by the 12th AGM to its BOD to a find suitable
partner for merger/acquisition, Global IME Bank
Considering the fact that the Government of Nepal and Janata Bank have been found suitable as merger
vide their budget for FY 76-77 and Nepal Rastra Bank partners and the Memorandum of Understanding
vide their monetary policy have been motivating the was signed on 5th July, 2019.
merger/acquisition process in order to strengthen
BFIs, we would like to inform you that due to Global We would like to inform our shareholders that
IME Bank Limited and Janata Bank Nepal Limited the Joint Merger Committee was formed with 3
being strong commercial banks the merger between Directors each from both banks for the purposes of
the two banks is a suitable path forward. completing merger activities. In order to furnish such
activities, the committee further created several sub-
We are assured that the merger of Global IME Bank committees, namely: Employee Management Sub-
Ltd and Janata Bank Nepal Ltd into a single institution committee, Information Technology Sub-committee,
will lead to additional business prospects with and Branch Management Sub-committee.
capital enhancement, increase the competitiveness
capability, enhance the financial, human resource, In order to complete the Due Diligence Audit (DDA)
technical, and other capabilities which will ease , S.R. Pandey and Associates have been selected and
in providing modern, qualitative, and trustworthy the DDA report has also been obtained according
banking services to our valuable customers. It will to the Banks and Financial Institutions Act 2073
further maintain stability in the financial sector B.S. (Article 71) as well as the Merger/Acquisition
creating good governance, secure, healthy, and Bylaws 2073 B.S. (Section 8) issued by NRB.
capable banking and bolster the financial systems
and processes of the nation with wide access and On the basis of Due Diligence Audit Report provided
quality banking service to customers through by the valuators and the share swap ratio mentioned
enhanced services, facilities, and subsidies. We are in Serial No 13 of MOU dated 5th July, 2019 signed
pleased to inform our shareholders about these by the both banks at 1.0000:0.8366 (i.e. 83.66
motives for the merger. number of shares of Global IME Bank Ltd for 100
number of shares of Janata Bank Nepal Ltd), further
The primary objective of the merger is to further recalculation of the share swap ratio was authorized
enhance our benchmark as an excellent “A” class to be calculated by the Joint Merger Committee
commercial bank by providing quality banking according to Bylaw No 9 of the Merger/Acquisition
service to customers as well as by maximizing return Bylaws 2073, where the share swap ratio was revised
to our shareholders through maximally utilizing to 1.00:0.85 (i.e. 85 number of shares of Global IME
the local access of both banks, their combined Bank Ltd for 100 number of shares of Janata Bank
experience, and their renewed capacity while Nepal Ltd) and approved by the Board of Directors
maintaining our position as industry leader through of both banks.
business opportunities available in various sectors
in the country. The final MOU was signed on 25th October 2019 as per
the recommendation of the Joint Merger Committee
We would like to inform our shareholders that we and was approved by the BOD for commencement of
have received the Letter of Intent (LOI) from Nepal the merger under these main points:
Rastra Bank on 25th September 2019 for the merger
on the basis of the joint application placed at NRB. ƒ The Bank will maintain the name of “Global
According to the Bank and Financial Institution Act IME Bank Limited” and its Registered and
2073 B.S., the Company Act 2063 B.S., the Merger/ Corporate Office will remain at Kamaladi,
Acquisition Bylaws 2073 B.S., Instruction of Nepal Kathmandu after the merger.
Rastra Bank, Securities Law, and as per the authority

GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19 181

 ƒ After the Merger, the members of the BOD proposed to the BOD for approval and approved by
will be formed from the 5 existing Directors the 330th BOD meeting held on 2076.07.08. Therefore,
of Global IME Bank Limited (Mr. Chandra the Special Proposal regarding the merger with
Prasad Dhakal, Mr. Sudarshan Krishna Janata Bank Nepal Limited and the Share Swap Ratio
Shrestha, Mr. Suman Pokharel, Mr. Krishna has been presented in the Annual General Meeting
Prasad Sharma and Mr. Numanath Poudel) for approval purposes. We would like to request
and 2 existing Directors of Janata Bank Nepal all of our dear shareholders to pass the presented
Limited (Mr. Keshav Bahadur Rayamajhi, Special Proposal after necessary discussions.
Chairman, and Mr. Binit Kumar Agrawal).
Mr. Chandra Prasad Dhakal will hold the We are keen about our responsibility towards the
Chairman’s post of the BOD. Government and Nepal Rastra Bank’s merger/
acquisition policy for strengthening our success. We
ƒ After the Merger, the Chief Executive Officer have established ourselves and have been moving
will be Mr. Parashu Ram Kunwar Chhetri forward as one of the most successful organizations
of Janta Bank Nepal Ltd and Mr. Mahesh in the country by entering into various mergers
Sharma Dhakal of Global IME Bank Ltd will and acquisitions in the past years. We believe that
be the Senior Deputy Executive Officer of the with this merger, the Bank’s capital base will be
Bank. strengthened and will help to maintain stability in the
financial sector by creating good governance, secure,
Post-merger, Global IME Bank Ltd will be the healthy, and capable banking and maximize the
largest bank of Nepal in terms of Capital, Business return to all of our shareholders and stakeholders.
and Branch Network. The paid up capital will Our valued and dedicated employees have played
approximate NPR 19 billion while total deposit and a huge role in the completion of this merger and
total loans will approximate NPR 2.13 billion and their contributions towards the Bank will continue
1.94 billion respectively. The difference arising from to be the driving factor being the Bank’s continued
the share swap ratio of NPR 1.2721 billion after the success.
merger will be added to the capital reserve. Similarly,
the Bank will boast a network of more than 300 We would like to thank the Government of Nepal,
branches, 3250 employees, and representation in Nepal Rastra Bank, Securities Board of Nepal,
all 7 provinces and 77 districts. There will be a total Company Registrar, Other Regulatory Bodies,
of 838 outlets including 259 ATMs, 243 BLBs, 33 Shareholders of both Banks, and Our Valued
Government Revenue and Extension Counters, and 3 Employees for supporting us through this merger
Foreign Representative Offices. The Bank’s customer process between the two entities, Global IME Bank
base will reach around 2 Million. Limited and Janata Bank Nepal Limited.

On the basis of the DDA Report, the Joint Merger Thank You.
Committee has determined the share swap ratio to On behalf of Board of Directors,
be 1:0.85, which means investors holding 100 unit Mr. Chandra Prasad Dhakal
shares of Janata Bank Nepal Ltd will receive 85 unit Chairman
shares of Global IME Bank Ltd, and the same was Date: 18th November, 2019

182 GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19

 Branch Managers

PROVINCE 1
SUBASH SAPKOTA (Province Head)
BHOJPUR BRANCH BHOTKHOLA BRANCH BIRATCHOWK BRANCH BIRATNAGAR BRANCH
DIPAK KUMAR PATHAK GOURAB TRITAL KRISHNA PRASAD LUITEL SHASHI SEKHAR SHARMA
Phone No.: 9852058440 PHONE NO.: 9742127186 Phone No.: 021-546038, 545457 Phone No.: 021-440551/52/53/54
BIRTAMOD BRANCH CHAINPUR BRANCH CHARALI BRANCH DAMAK BRANCH
PAWAN KUMAR POUDYAL KRISHNA PRASAD NEPAL SURESH KUMAR SHRESTHA PRABESH LAMSAL
Phone No.: 023-544703 Phone No.: 029-570250/570325 Phone No.: 023-460601 Phone No.: 023-582364/65
DHARAN BRANCH DHARAN II BRANCH DHULABARI BRANCH GAIGHAT BRANCH
BHUPAL GHIMIRE KARNA BAHADUR SHAHI SANJEEB KOIRALA RABIN RAJ DAHAL
Phone No.: 025-530340, 527340 Phone No.: 025-533930/533931 Phone No.: 023-560771/73/74 Phone No.: 035-420932
HILE BRANCH ITAHARI BRANCH KHOTANG BRANCH OKHALDHUNGA BRANCH
KIRTAN ADHIKARI CHHETRI MUKESH KUMAR SHAH PRAKASH REGMI SANJAY ADHIKARI
Phone No.: 026-540705/026-540706 Phone No.: 025-586617 Phone No.: 9815011420 Phone No.: 035-420932
PHIDIM BRANCH PHIKAL BRANCH SOLUKHUMBU BRANCH TAPLEJUNG BRANCH
NIRAJ KHANAL ANANTA KUMAR ACHARYA NAWANIDHI DHAKAL PRAJWAL SUBBA
Phone No.:024-520990 Phone No.: 027-540472 Phone No.: 9852671779 Phone No.: 024-460632
TERHATHUM BRANCH
OM PRAKASH BHANDARI
Phone No.: 026-460732

PROVINCE 2
NEERAJ SHRESTHA (Province Head)
BARDIBAS BRANCH BELWA BRANCH BIRGUNJ BRANCH DAKNESHWORI
DHARMENDRA YADAV
RAJ KUMAR MAHATO RAKESH GYAWALI RANJIT KUMAR MAHATO
Phone No.: 9854027217
Phone No.: 9854038760 Phone No.: 051-530337/38/520019 Phone No.: 9804315965

FATUWA BRANCH FETA BRANCH GOLBAZAR BRANCH JANAKPUR BRANCH

MUKESH KUMAR THAKUR BIDHYANANDA CHAUDHARY ROSHAN KUMAR PANJIYAR BIJAY KUMAR SHAH
Phone No.: 9844120193 Phone No.: 053-620462 Phone No.: 033-540390 Phone No.: 041-420305, 420206
LAALBANDI BRANCH LAHAN BRANCH MIRCHAIYAYA BRANCH MITHILA BIHARI
LOKNATH PAUDEL MAHESH KUMAR MAHATO SHRAWAN KUMAR MAHASETH HARI NARAYAN SAH
Phone No.: 046-50167273 Phone No.: 033-561261/62 Phone No.: 033-550804 Phone No.: 9811880235
NAWALPUR BRANCH NIJGADH BRANCH RAJBIRAJ BRANCH SIRAHA BRANCH
SONALAL MAHATO PURSHOTAM KUMAR KHATI MANISH MAHASETH SAROJ KUMAR JHA
Phone No.: 9845934189 Phone No.: 053-540174 Phone No.: 031-523582/83 Phone No.: 033-521165

GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19 183

 PROVINCE 3
RAJ RIMAL (Province Head)
ANAMNAGAR BRANCH BAIRENI BRANCH BANASTHALI BRANCH BANEPA BRANCH
MADHAV RAJ SHARMA POKHAREL SAYAR UPRETI HEMANTA ACHARYA YEK RAJ BARTAULA
Phone No.: 01-4242764, 4249242 Phone No.: 010-692655/ 403086 Phone No.: 01-4366074 Phone No.. 011-663017/19
BARHABISE BRANCH BELCHOWK BRANCH BETHANCHOWK BRANCH CHABAHIL BRANCH
UJWAL POKHAREL GANESH ADHIKARI SAROJ K.C. RAJU DEVKOTA
Phone No.: 011-489268 Phone No.: 056-572007 CONTACT NO. : 9851201589 Phone No. : 01-4487580
CHARIKOT BRANCH CHETRAPATI BRANCH CORPORATE BRANCH DHAPASI BRANCH
DIPAK POKHREL PRATIKSHYA OJHA BISHNU PRASAD POKHREL
KRISHNA RAJ NEUPANE
Phone No.: 01-4249033 Phone No.: 01-4243891, 4241219 Phone No.: 01-4355919, 4356449
DILLIBAZAR BRANCH GONGABU BRANCH GOTHATAR BRANCH GWARKO BRANCH
SHRUTI HADA SHRESTHA PESHAL KUMAR DAHAL SHAILAJA RAJYA LAXMI SHAH BIBEK THAPA
Phone No.: 01-4437388, 4437071 Phone No.: 01-4358657, 4385986 Phone No.: 01-6201228 Phone No..: 01-5547660
GYANESHWOR BRANCH GYANESHWOR II BRANCH HATTIGAUDA BRANCH HETAUDA BRANCH
RABINDRA DHAKAL DEEPA NEUPANE NABIN ACHARYA HEM RAJ SHARMA
Phone No.: 01-4445008 Phone No.: 01-4441860, 4441737 Phone No.: 01-4375275, 4376241 Phone No.: 057-527368/527378
HETAUDA-II BRANCH JORPATI BRANCH KALANKI BRANCH KAMALADI BRANCH
BIPIN PAUDEL SURESH SHARMA KRISHNA HARI ADHIKARI DIPENDRA KADARIYA
Phone No.: 057-526813 Phone No..: 01-4911845 Phone No.: 01-4288074, 4288075 Phone No.: 01-4446150, 4446151
KANTIPATH BRANCH KHADICHAUR BRANCH KHOLESIMAL BRANCH KIRTIPUR BRANCH
ANAMIKA SINGH SAMJHANA SHRESTHA KHEM NATH SHARMA PAUDEL SHOVA NEUPANE
Phone No.: 01-4231198 Phone No.: 011-482143 Phone No.: 056-413144/45 Phone No.: 01-4335941
KOTESHWOR BRANCH KULESHWOR BRANCH KUPONDOLE BRANCH KURINTAR BRANCH
SUDIP BHAKTA WAGLE SURENDRA SHARMA DHAKAL NARAYAN SHRESTHA SAGAR SHRESTHA
Phone No.: 01-4602030 Phone No.: 01-4286445, 4286446 Phone No.: 01-5549872, 5549863 Phone No.: 056-410003
LAGANKHEL BRANCH MANAMAIJU BRANCH MANTHALI BRANCH NAGARJUN BRANCH
MERINA SHRESTHA DEVENDRA PRASAD RIJAL SABIN MAHARJAN DEEPAK DHAKAL
Phone No.: 01-5548950, 5548951 Phone No.: 01-4027307 Phone No.: 048-540456 Phone No.: 9851146476
NAKKHU BRANCH NARAYANGHAT BRANCH NEW BANESHWOR BRANCH NEW ROAD BRANCH
PRAKASH K.C. SACHIN NEUPANE SUSHIL KUMAR BUDHATHOKI CHITRA KUMAR CHALISE
Phone No..: 01-5185346,5185084 Phone No.: 056-571135/571536 Phone No.: 01-4464366 Phone No.: 01-4223433,4240878
PANIPOKHARI BRANCH PULCHOWK BRANCH SATDOBATO BRANCH SINAMANGAL BRANCH
SWAICHA RANA SAROJA HADA NYACHHYON SAMA SHAH MALA GHIMIRE
Phone No.: 01-4002505, 4002503 Phone No.: 01-5009275/76 Phone No.: 01-55152431, 5152267 Phone No.: 01-4478616, 4478618
SINDHULI BRANCH SUKEDHARA BRANCH SUNDHARA-II BRANCH SURYABINAYAK BRANCH
RAMESH SANJEL BIMAL DHAKAL BRIHASPATI TIWARI DIPAK KHANAL
Phone No.: 047-521356 Phone No.: 4375639 Phone No.: 01-4218989, 4218927 Phone No.: 01-6615389, 6615390
TATOPANI BRANCH (CLOSED
TADI BRANCH THAMEL BRANCH THANKOT BRANCH
UNTIL FURTHER NOTICE)
YUBARAJ POUDEL GOKARNA PRASAD BARTAULA RABINDRA PRASAD NEPAL
Phone No.: 056-560085/96 Phone No.: 011-480192 Phone No.: 01-4701327, 4701323 Phone No.. 01-4310235
TRIPURESHWOR BRANCH TRISHULI , BRANCH
DEVENDRA SHRESTHA GANGA BAHADUR ROKA
Phone No.: 01-4239170, 4239171 Phone No.: 010-561626

184 GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19

 PROVINCE 4
AJAY THAPA (Province Head)
AMARSINGH CHOWK BRANCH BAGLUNG BRANCH BANDIPUR BRANCH BEGNAS BRANCH
KAMANA POUDEL NARAYAN PRASAD PAUDYAL SHOBHIT SHRESTHA DINESH ADHIKARI
Phone No.: 9851185893 Phone No.: 068-522245/46 Phone No.: 9846079949 Phone No.: 061-561779
BENI BRANCH BESISAHAR BRANCH BHORLETAR BRANCH BHOTEWODAR BRANCH
BHOLA NATH PAUDEL DEEPAK BASNET NABA RAJ POUDEL JANMABHUMI GURUNG
Phone No.: 069-521004 Phone No.: 066 -521035 Phone No.: 066-410032/33 Phone No.: 066-400075/76
BURTIBANG BRANCH DAMAULI BRANCH DUMRE BRANCH GAIDAKOT BRANCH
SOKENDRA THAPA MAGAR RAJU SHIVA BHAKTI NIRAJAN SHRESTHA SUNIL POUDEL
PHONE NUMBER: 068-410174 Phone No.: 065-560009 Phone No.: 065-580317 Phone No.: 078-503047/501155
GALKOT BRANCH GORKHA BAZAR KAWASOTI BRANCH KUSHMISHERA BRANCH
SHYAM PRASAD DHAKAL RAM CHANDRA KANDEL KHEM RAJ NEUPANE HARI PRASAD SHARMA
Phone No.: 068-412040 Phone No.: 064-420337 Phone No.: 078-540527/28 Phone No.: 068-421077/78
NEW ROAD, POKHARA SHABAGRIHA CHOWK,
KUSMA BRANCH MANAKAMANA BRANCH
BRANCH POKHARA BRANCH
PRAKASH SHARMA KESHAV PAUDEL ARJUN PAUDEL MANDIP BARAL
Phone No.: 067-421244 Phone No.: 064-460210 Phone No.: 061-527503/04 Phone No.: 061-539406/537881
SIRANCHOWK BRANCH SUNDAR BAZAR BRANCH UDIPUR BRANCH
RAJENDRA DHAKAL PRADEEP JOSHI CHANDRA KALA GHALE GURUNG
Phone No.: 064-691154 Phone No.: 066-402039 Phone No.: 9846535320

PROVINCE 5
DHOJ SAUD (Province Head)
ARGHAKHANCHI BRANCH BUTWAL RAM MANDIR LINE, BRANCH BHAIRAHAWA BRANCH BHAIRAHAWA SEZ BRANCH
PRALHAD NEUPANE JOG LAL BHUSAL DILIP DANGI SUSHMA SHARMA
Phone No.: 077-420754 Phone No.: 071-551484/85/86 Phone No.: 071-523803/04/05 Phone No.: 9841415517
BHUMAHI BRANCH MILAN CHOWK, BUTWAL GHORAHI BRANCH GAUDAKOT BRANCH
NAVIN KUMAR PANTHI KESHAB PRASAD WOLI DILLI RAJ BHUSHAL LOK BAHADUR BAKABAL THAPA
Phone No.: 078-415134/35 Phone No.: 071-438174 Phone No.: 082-562285 Phone No.: 079-620038
HOLERI BRANCH JITPUR BRANCH KOHALPUR BRANCH LIWANG BRANCH
RAJ KUMAR THAPA DILLI RAJ DHAKAL NIRMAL RAJ BUDHATHOKI PRAVIN ACHARYA
Phone No.: 9851137084 Phone No.: 076-550352/53 Phone No.: 081-541688 Phone No.: 086-440284
MAJUWA BRANCH PUSHPALAL CHOWK, NEPALGUNJ TRIBHUWAN CHOWK,NEPALGUNJ PURBA KHOLA BRANCH
DURGA PRASAD SAPKOTA DHOJ SAUD VIKASH SHRESTHA SUBASH KANTA JOSHI
Phone No.: 079-692070 Phone No.: 081-526392/95 Phone No.: 081-522037/38/522151 Phone No.: 9856046192
SULICHAUR BRANCH TAMGHAS BRANCH TANSEN BRANCH TULSIPUR BRANCH
UDAY KUMAR SHARMA YOGENDRA RAYAMAJHI MANOJ SHARMA SHAMBHU KARKI
Phone No.: 086-401069 Phone No.: 079-520038/520744/45 Phone No..: 075-522825/26 Phone No.: 082-522844
WAMI BRANCH
MADHAV UPADHYAY
Phone No.: 079-690058

GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19 185

 PROVINCE 6
AASHISH RAJ PANDEY (Province Head)
DAILEKH BRANCH KALIKOT BRANCH RASKOT BRANCH RUKUM BRANCH
ARUN UPADHYAY BIMAL KUMAR ACHARYA DINESH BHANDARI NIMESH PURI
Phone No.: 089-410259/ 410260 Phone No.: 087-440273/74 Phone No.: 9848177570 Phone No.: 088-530218
SALYAN BRANCH SURKHET BRANCH
SUBODH JNAWALI KRISHNA RAJ BARAKOTI
Phone No.: 9857064893 Phone No.: 083-525471/72

PROVINCE 7
MAHENDRA ADHIKARI (Province Head)
AJAYAMERU BRANCH ATTARIYA BRANCH BAITADI BRANCH BOGTAN BRANCH
BUDDHI MAN BARAM PRAMOD KHANAL KHAGENDRA PANDEY CHET RAJ PATHAK
Phone No.: 9858034431 Phone No.: 091-550637, 550987 Phone No.: 095-520542/43 Phone No.: 9851179218
DADELDHURA BRANCH DHANGADI BRANCH DIPAYAL BRANCH DOGADA KEDAR BRANCH
TOYANATH JOSHI SHAMBHU PRASAD JOSHI DIPENDRA SINGH THAGUNNA
LILADHAR BHATT
Phone No.: 096-420276 Phone No.: 091-417238/39/40 Phone No.: 9851179218
LAMKI BRANCH MAHENDRANAGAR BRANCH PURBI CHAUKI BRANCH PURCHOUDI BRANCH
SUBASH KANDEL DIPENDRA BAHADUR SINGH SHIV RAJ BISTA KESHAB RAJ JOSHI
Phone No.: 091-540505/06/07 Phone No.: 099-520946/48 Phone No.: 9851056721 Phone No.: 096-690808

186 GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19

 ATMs
PROVINCE ATMS ON LOCATIONS AND OFF LOCATIONS DISTRICT LOCATION No of ATM
BIRATCHOWK BRANCH MORANG 1
BIRATNAGAR BHATBHATENI SUPER MARKET MORANG 1
BIRATNAGAR BRANCH MORANG 1
BIRTAMODE BRANCH JHAPA 1
CHAINPUR BRANCH SANKHUWASABHA 1
CHARALI BRANCH JHAPA 1
DAMAK BRANCH JHAPA 1
DHARAN BRANCH SUNSARI 1
DHULABARI BRANCH JHAPA 1
PROVINCE 1 GAIGHAT BRANCH UDAYAPUR 1
ITAHARI BRANCH SUNSARI 1
ITAHARI HALGADA SUNSARI 1
KOSHI ZONAL HOSPITAL, BIRATNAGAR MORANG 1
NEURO HOSPITAL BIRATNAGAR MORANG 1
PASHUPATINAGAR ATM ILAM 1
PHIDIM BRANCH PANCHTHAR 1
PHIKKAL BRANCH ILAM 1
TAPLEJUNG BRANCH TAPLEJUNG 1
TERHATHUM BRANCH TERHATHUM 1
BIRGUNJ BRANCH PARSA 1
GOLBAZAR BRANCH SIRAHA 1
JANAKPUR BRANCH DHANUSHA 1
LAHAN BRANCH SIRAHA 1
LALBANDI BRANCH SARLAHI 1
PROVINCE 2
MIRCHAIYA BRANCH SIRAHA 1
NARAYANI SUB-REGIONAL HOSPITAL PARSA 1
NIJGADH BRANCH BARA 1
RAJBIRAJ BRANCH SAPTARI 1
SIRAHA BRANCH SIRAHA 1
ANAMNAGAR BRANCH KATHMANDU 1
ASON CHOWK ATM KATHMANDU 1
BAGGIKHANA ATM KATHMANDU 1
PROVINCE 3
BAIRENI BRANCH DHADING 1
BALKHU PANIKA ATM KATHMANDU 1
BANASTHALI BRANCH KATHMANDU 1

GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19 187

 BANEPA BRANCH KAVREPALANCHOWK 1
BANESHWOR BRANCH KATHMANDU 1
BANESHWOR LOUNGE KATHMANDU 1
BHATBATENI NAXAL ATM KATHMANDU 1
BHATBHATENI STORE NAXAL KATHMANDU 1
BOUDHA ATM LOUNGE KATHMANDU 1
CHABAHIL ATM LOUNGE KATHMANDU 1
CHABAHIL BRANCH KATHMANDU 1
CHANDRAGIRI CABLE CAR KATHMANDU 1
CHANDRAGIRI HILLS KATHMANDU 1
CHHETRAPATI BRANCH KATHMANDU 1
CORPORATE OFFICE KAMALADI KATHMANDU 1
DHAPASI BRANCH KATHMANDU 1
DILLIBAZAR BRANCH KATHMANDU 1
GONGABU BRANCH KATHMANDU 2
GWARKO BRANCH LALITPUR 1
GYANESHWOR BRANCH KATHMANDU 1
GYANESHWOR II BRANCH KATHMANDU 1
HATTIGAUDA BRANCH KATHMANDU 1
HETAUDA BRANCH MAKAWANPUR 1
PROVINCE 3
HOTEL GARUDA LOUNGE KATHMANDU 1
JORPATI BRANCH KATHMANDU 1
KALANKI BRANCH KATHMANDU 1
KALIKASTAN ATM KATHMANDU 1
KAMALADI BRANCH KATHMANDU 2
KANTIPATH LOUNGE ATM KATHMANDU 2
KAPAN SATTALE ATM KATHMANDU 1
KESHA PLAZA KATHMANDU 1
KIRTIPUR BRANCH KATHMANDU 1
KOTESHWOR BRANCH KATHMANDU 2
KULESHWOR BRANCH KATHMANDU 1
KUPONDOL BRANCH LALITPUR 1
KURINTAR BRANCH CHITWAN 1
LAGANKHEL BRANCH LALITPUR 1
MACCHAPOKHARI ATM KATHMANDU 1
MANAMAIJU BRANCH KATHMANDU 1
MEDICITI HOSPITAL NAKKHU LALITPUR 1
MY MART ATM KATHMANDU 1
NACHGHAR COMPLEX KATHMANDU 1
NAKKHU BRANCH LALITPUR 1

188 GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19

 NARAYANGHAT BRANCH CHITWAN 1
NEWROAD BRANCH ATM KATHMANDU 2
PANIPOKHARI BRANCH KATHMANDU 1
PEPSICOLA ATM KATHMANDU 1
POLICE PETROL PUMP NAXAL KATHMANDU 1
PULCHOWK BRANCH LALITPUR 1
PUTALISADAK ATM KATHMANDU 1
SATDOBATO BRANCH LALITPUR 1
SHANGRILA HOTEL KATHMANDU 1
SINAMANGAL BRANCH KATHMANDU 1
SUKEDHARA BRANCH KATHMANDU 1
PROVINCE 3
SURYABINAYAK BRANCH BHAKTAPUR 1
TANDI BRANCH CHITWAN 1
THAMEL BRANCH KATHMANDU 1
THAMEL LOUNGE KATHMANDU 1
THAMEL LOUNGE II KATHMANDU 1
THANKOT BRANCH KATHMANDU 1
TIA - DOMESTIC KATHMANDU 1
TIA - INTERNATIONAL KATHMANDU 1
TRIPURESHWOR BRANCH KATHMANDU 1
TRISHARA LOUNGE KATHMANDU 1
TRISHULI BRANCH NUWAKOT 1
AMARSINGH CHOWK BRANCH KASKI 1
BAGLUNG BRANCH BAGLUNG 1
BEGNAS BRANCH KASKI 1
BENI BRANCH MYAGDI 1
BESISAHAR BRANCH LAMJUNG 1
BHORLETAR LAMJUNG 1
BURTIBANG BRANCH BAGLUNG 1
DAMAULI BRANCH TANAHUN 1
GAIDAKOT BRANCH NAWALPUR 1
PROVINCE 4 GALKOT BRANCH BAGLUNG 1
GORKHA BRANCH GORKHA 1
HOTEL LANDMARK, POKHARA KASKI 1
KAWASOTI BRANCH NAWALPARASI 1
KUSHMA BRANCH PARBAT 1
KUSHMISHERA BRANCH BAGLUNG 1
LAKESIDE LOUNGE,POKHARA KASKI 1
PAME LOUNGE ATM KASKI 1
POKHARA BRANCH KASKI 1
SABHAGRIHA CHOWK BRANCH KASKI 1

GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19 189

 ARGHAKHANCHI BRANCH ARGHAKHANCHI 1
BHAIRAHAWA BRANCH RUPANDEHI 1
BHUMAHI BRANCH NAWALPARASI 1
BUTWAL BRANCH RUPANDEHI 1
BUTWAL CHAURAHA BRANCH RUPANDEHI 1
GHORAHI BRANCH DANG 1
JEETPUR BRANCH KAPILVASTU 1
KOHALPUR BRANCH BANKE 1
PROVINCE 5 LIWANG BRANCH ROLPA 1
MAJUWA BRANCH GULMI 1
NEPALGUNJ BRANCH BANKE 1
NEPALGUNJ II BRANCH BANKE 1
SULICHOUR BRANCH ROLPA 1
TAMGHAS BRANCH GULMI 1
TANSEN BRANCH PALPA 1
TULSIPUR BRANCH DANG 1
WAMI BRANCH GULMI 1
KALIKOT BRANCH KALIKOT 1
PROVINCE 6 RUKUM BRANCH RUKUM 1
SURKHET BRANCH SURKHET 1
ATTARIYA BRANCH KAILALI 1
BAITADI BRANCH BAITADI 1
DADELDHURA BRANCH DADELDHURA 1
PROVINCE 7
DHANGADI BRANCH KAILALI 1
LAMKI BRANCH KAILALI 1
MAHENDRANAGAR BRANCH KANCHANPUR 1

190 GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19

Branchless Banking
PROVINCE BLB PARENT BRANCH BLB REPRESENTATIVE ADDRESS CONTACT NO
Arjundhara Na.Pa. -03
BIRTAMOD BRANCH Narendra Kumar Shrestha 9842640716
Khudunabari
Chainpur Na. Pa.-03, Pokhari 9819044800 /
CHAINPUR BRANCH Manmaya Limbu
Bazzar 9812397629
Dharmadevi Na. Pa.-04,
CHAINPUR BRANCH Anirudra Singh Lingkha 9852051039
Yakhkhachowk
Chainpur Na.Pa.-11, Lohakot,
CHAINPUR BRANCH Yubraj Trital 9842164441
Sankhuwasava
DAMAK BRANCH Ganga Nayak Kamal Ga. Pa.-04, Masaygadh 9813672432
GAIGHAT BRANCH Maheshwor Prasad Kafle Triyuga Na. Pa.-07, Chuhade 9862790011
ITAHARI BRANCH Jagat Bahadur Poudel Baraha Na. Pa.-05, Kalabanjar 9800996255
ITAHARI BRANCH Jageshwor Shahu Sudi Koshi Ga.Pa-03, Jamuwa 9842055102
ITAHARI BRANCH Padam Rana Letang Na. Pa.-3, Milan Chowk 9842282888
Pathree Sanishchare Na. Pa.-4,
ITAHARI BRANCH Som Nath Acharya 9860549328
Sanishchare
Province 1 9842766248/
PHIDIM BRANCH Birendra Kumar Yonghang Hilihang Ga. Pa.-01, Bhaluchowk
024-690571
PHIKKAL BRANCH Yog Prasad Gautam Suryodaya Na. Pa.-14, Katuse 9806005054
Meringden Ga. Pa.-18, Dovan 9752608116/
TAPLEJUNG BRANCH Tanka Prasad Khatiwada
Bazzar 9844618116
9863712690 /
TAPLEJUNG BRANCH Chandra Kumar Upreti Hilihang Ga. Pa.-2, Singapur
9815998383
TERHATHUM BRANCH Arjun Shrestha Laaliguras Na. Pa.-07, Lasune 9852062224
BIRATCHOWK BRANCH Khagendra Thebe Belbari Na. Pa-10 Chadanichowk 9852054536
BIRATCHOWK BRANCH Sukra Raj Kerung Belbari Na.Pa -11 Laxmi Marg 9805340655
DHULABARI BRANCH Khadga Bahadur Basnet Mechinagar Na.Pa -02 Bhrikuti Chowk 9842744656
GAIGHAT BRANCH Binod Kumar Raut Chaudandigadhi Na.Pa -09 Hadiya 9826729598
BIRTAMODE BRANCH Indra Prasad Giri Buddha Shanti Ga.Pa -02 Jayapur 9804902655
Buddhashanti Ga.Pa -05
CHARALI BRANCH Khem Raj Bhattarai 9852673199
Shantiagar
GAIGHAT BRANCH Min Bahadur Rai Triyuga Na.Pa- 14 Saune Bazar 9823575345
Parsagadhi Na.Pa.-1, Manawa 9802382232 /
BELWA BRANCH Ram Ayodha Thakur
Bazar, Parsa 9819291446
GOLBAZAR BRANCH Sitaram Mahato Arma Na. Pa.-01, Mahanor 9801044655
Nagarain Municipality ward no.
JANAKPUR BRANCH Dipendra Prasad Sah 9807603060
03, Fulgama, Dhanusha
JANAKPUR BRANCH Surendra Kumar Mandal Pipara Na. Pa.-06, Ratauli 9807830265
JANAKPUR BRANCH Ram Pukar Yadav Sabela Na. Pa.-03, Sabela Bazaar 9844276504
Province 2
Manara Siswa Na. Pa.-6, Sarpallo
JANAKPUR BRANCH Jagdish Kumar Sah 9801600319
Bazaar
JANAKPUR BRANCH Shyam K. Chaudhary Shahidnagar Na. Pa.-3, Yadukuha 9854020330
Sukhupur Na. Pa.-8, Sukhipur
LAHAN BRANCH Dinesh Chaudhary 9852832901
Bazar
LALBANDI BRANCH Bijay Kumar Sah Kanu Ishwarpur Ga. Pa.-01, Chaukhali 9854035920
MIRCHAIYA BRANCH Rajaram Sah Kalyanpur Na. Pa.-11, Kalyanpur Jabadi 9804722157

GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19 191

PROVINCE BLB PARENT BRANCH BLB REPRESENTATIVE ADDRESS CONTACT NO
Dakneshwori Na. Pa.-09,
RAJBIRAJ BRANCH Dipendra Prasad Sah 9807603060
Pathargada Chowk
Shambhunath Ga. Pa.-08,
RAJBIRAJ BRANCH Shiv Charan Chaudhary 9804708581
Kathauna Bazzar
SIRAHA BRANCH Kusheshor Yadhav Bishnupur Ga. Pa.-01, Bishnupur 9842638876
9807784747/
SIRAHA BRANCH Bijaya Kumar Shah Kalyanpur Na. Pa.-12, Belha
9844191668
Arnama Ga. Pa.- 03, Ramjanki
SIRAHA BRANCH Dip Narayan Sah 9862943630
Bazar
SIRAHA BRANCH Rabinandan Kishor Yadav Siraha Na. Na 19 Sanhaitha Chowk 9811754945
LAHAN BRANCH Gita Devi Sah Bhagwanpur Ga.Pa-04 Thandi 9817780674
Province 2 Dhangadhimai Na.Pa- 11
LAHAN BRANCH Ashok Kumar Chaudhary 9861623366
Dhangadi
SIRAHA BRANCH Dhurba Kumar Mahato Siraha Na.Pa-17 Madar bazar 9800902151
LALBANDI BRANCH Gyanendra Bahadur Karki Lalbandi Na. Pa-16 Parwanipur 9865667071
LALBANDI BRANCH Devkala Kumari Ishworpur Na.Pa -13 Maharani 9814888088
Sabaila Municipality -12
MITHILA BIHARI BRANCH Lalit Purbe 9812033696
Raghunathpur
Paterwa Sugauli Gaupalika -02 9865160742,
BELWA BRANCH Satrodhan Shah
Rangapur Bazar 9821120496
NIJGADH BRANCH Tilak Bahadur Ghalan Nijgadh Na. Pa -11 Ratanpur 9855044517
053-410052/
NIJGADH BRANCH Vibek Kumar Shrestha Kolhabi Na. Pa -01 Kolhabi
9841190857
Belkotgadhi Na. Pa-7,
BAIRENI BRANCH Ram Bahadur Shrestha 9813320808
Mahadevphat
BARHABISE BRANCH Nirmal Raut Barhabise Na. Pa.-08, Mansarobar 9818570630
9869416105/
BARHABISE BRANCH Posta Bahadur Khadka Bhotekoshi Ga. Pa.-04, Chaku
9843167882
Barhabise Na. Pa. -04, Sano Patali-
BARHABISE BRANCH Hari Charan Paudyal 9841956709
Bahun Dada
Sagachowk Gadi Na. Pa.-09,
BARHABISE BRANCH Padam Bahadur Shrestha 9849858588
Balephi
Tripurasundari Ga. Pa.-6,
BARHABISE BRANCH Bhupendra Shrestha 9851210270
Tekanpur
Sunkoshi Ga. Pa.-5, Thumpakhar-
BARHABISE BRANCH Amrit Kumar Karki 9741312309
Pati Danda
Province 3
Shankharapur Na. Pa.-01, 9849039204 /
CHABAHIL BRANCH Laxman Dhakal and Bharat Tiwari
Chanpabot 9849958402
Tokha Chandeswori Na. Pa-1,
DHAPASI BRANCH Ram Sharan Dulal 9841764869
Radha Krishna Mandir chowk
9845148698 /
HETAUDA BRANCH Dhurba Prasad Aryal Indrasarobar Ga. Pa.-2, Deurali
9855069653
HETAUDA BRANCH Dinesh Dahal Makawanpurgadhi, Hetauda 9845458008
KURINTAR BRANCH Rajan Shrestha Gandaki Ga. Pa.-01, Makaisingh 9846255378
MANTHALI BRANCH Pushkar Karki Gokulganga Ga. Pa.-4, Betali 9843770243
Bharatpur Ma. Na. Pa.-25, Amrit
NARAYANGHAT BRANCH Narahari Ghimire 9855064217
Chowk
Chagunarayan Na. Pa.-07,
SURYABINAYAK BRANCH Gaurav Timalsena 9843518498
Saraswatisthan

192 GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19

PROVINCE BLB PARENT BRANCH BLB REPRESENTATIVE ADDRESS CONTACT NO
TANDI BRANCH Rajendra Shrestha Khairahani Na. Pa.-12, Kumroj 9865257502
THANKOT BRANCH Rajan Kapali Thaha Na. Pa.-09, Chitlang 9860606815
Ichchyakamana Ga.Pa 07
KHOLESIMAL BRANCH Kamal Gurung 9869891052
Bhalumare
KHOLESIMAL BRANCH Som Raj Pandey Kalika Na.Pa 09 Shaktikhor 9855066175
Province 3 TRISULI BRANCH Rammani Adhikari Suryagadhi Ga.Pa 03 Phalante 9851143022
BANEPA BRANCH Sashidhar Ghimire Panauti Na. Pa 02 Kushadevi 9861199509
Bagmati Ga. Pa- 06, Phaparbai,
HETAUDA BRANCH Punya Prasad Sapkota 9855070240
Makwanpur
Belkotgadhi Na.Pa- 05, Keureni,
BAIRENI BRANCH Ram Krishna Shrestha 9813784850
Nuwakot
BAGLUNG BRANCH Usha Rani Sharma Baglung Na. Pa.-13, Paiyupatta 9847631150
BAGLUNG BRANCH Mahendra Pun Kathekhola Ga.Pa.-7 9857621766
BAGLUNG BRANCH Narayan Prasad Shrestha Baglung Na.Pa.-14, Hatiya 9857620526
BAGLUNG BRANCH Hari Prasad Gautam Kathekhola Ga.Pa.-7 9857672100
BEGNAS BRANCH Kashiran Miya Rupakot Ga.Pa-06, Rupakot 9805839010
9746701143 /
BENI BRANCH Giri prasad Chantyal Dhawalagiri Ga. Pa.-7, Takam
069-680160
BHORLETAR BRANCH Sarfu Din Miya Kwholasothar Ga. Pa.-8, Salme 9846184731
BHOTEWODAR BRANCH Gopal Bahadur Nepali Rainas Ga. Pa -05, Satbesi 9846192476
BHOTEWODAR BRANCH Durga Prasad Parajuli Koshi Ga. Pa -06 9856042956
BURTIBANG BRANCH Anil Kunwar Nishi Khola Ga. Pa.-02, Juggakhola 9857647610
BURTIBANG BRANCH Shyam Gharti Magar Dhorpatan Na. Pa.-08, Bobang 9846823530
Madhya Nepal Na. Pa.-03,
DAMAULI BRANCH Babu Ram Puri 9856060892
Shotipasal
DUMRE BRANCH Upendra Babu Tiwari Bhanu Na. Pa.-10, Kalimatti 9814198789
Devachuli Na. Pa.-13,
KAWASOTI BRANCH Shiva Hari Aryal 9847060223
Pragatinagar-Daldale Bazaar
Province 4 KAWASOTI BRANCH Subash Shrestha Kawasoti Na. Pa.-17, Gochada 9857087605
Madhyabindu Na. Pa.-15,
KAWASOTI BRANCH Narayan Mahato 9815465315
Harbastar
KAWASOTI BRANCH Juddha Bahadur Thapa Hupsekot Ga. Pa.-04, Jhyalbass 9847095314
KAWASOTI BRANCH Amit Bhandari Kawashoti Na. Pa.-04, Hasaura 9857040767
KAWASOTI BRANCH Bhakta Raj Shrestha Madhyabindu Na. Pa.-03, Koluwa 9847434570
Kushma Na. Pa.-02, Khurkot
KUSHMA BRANCH Chhatra Bahadur Chhetri 9847612465
Bagaicha
Modi Ga.Pa.-7, Ramja Thanti,
KUSHMA BRANCH Santosh Kumar Gurung 9846061258
Parbat
KUSHMISERA BRANCH Krishna Prasad Chapagain Baglung Na. Pa.-12, Amalachaur 9847629795
NARAYANGHAT BRANCH Kiran Subedi Devghat Ga.Pa 02 Devghat 9855064964
DAMAULI BRANCH Raghunath Sharma Vyas Na.Pa. 05 Sange 9845519833
BESISAHAR BRANCH Bishal Poudel Marshyandi Ga.Pa -03 Khudi 9846099454
GORKHA BRANCH Subash Bhattarai Gorkha Na.Pa 02 Kokhe Ale 9869146922
SIRANCHWOK BRANCH Rabindra Amgai Siranchwok Rural Municipality 9865218668
Jaimini Na.Pa - 10 Dewaldhara
KUSHMISERA BRANCH Dal Bahadur Shrees 9851147032
Rangkhani

GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19 193

PROVINCE BLB PARENT BRANCH BLB REPRESENTATIVE ADDRESS CONTACT NO
KUSHMISERA BRANCH Moti Prasad Wagle Jaimini Na.Pa - 07 Jaidi 9857635235
DUMRE BRANCH Nanda Raj Shrestha Bhanu Na. Pa-03, Turture, Tanahu 9846840438
Tarakhola Ga. Pa-01, Argal,
GALKOT BRANCH Top Bahadur Roka 9857640403
Baglung
Province 4 Gaidakot Na.pa-03, Dhodeni,
GAINDAKOT BRANCH Arjun Kumar Thapa 9845407236
Nawalparasi
KUSHMISERA BRANCH Narayan Adhikari Jaimini Municipality 8, Chhesti 9847668904
Raghuganga Ga. Pa 01, Begkhola,
BENI BRANCH Ramesh Pariyar 9846582181
Myagdi
9857066825 /
ARGHAKHANCHI BRANCH Pashupati Bhattarai Sandhikharka Na. Pa.-04, Wangla
9847059825
9857061370 /
ARGHAKHANCHI BRANCH Bishnu Prasad Bhusal Chhatradev Ga. Pa.-2, Balkot
9847320476
Bhumikasthan Na.Pa-10,
ARGHAKHANCHI BRANCH Lekhnath Pandey 9857061185
Dhanchaur
Chhatradev Ga. Pa.-6,
ARGHAKHANCHI BRANCH Dhanishwar Pandey 9857063429
Thulapokhara
Bardaghat Na. Pa.-12, Jahada- 9804486343 /
BHAIRAHAWA BRANCH Gajendra Bahadur Giri
Bhataulia 9811453508
9821970453 /
BHUMAHI BRANCH Sima Kumari Chaudhary Ramgram Na. Pa.-17, Patkhauli
9867515755
Sunawal Na.Pa.-11, Jargaha,
BHUMAHI BRANCH Thir Lal Neupane 9847010443
Nawalparasi
BUTWAL BRANCH Kamal Chhetri Saina Maina-06, Ramapur Kalauni 9857050510
Tillottama Na. Pa.-15,
BUTWAL BRANCH Aananda Panthi 9857060302
Madhawaliya
Buddhi Bahadur Khattri Cheetri 9847160433 /
BUTWAL, RAM MANDIR LINE Devdaha Na. Pa.-10, Charange
and Kul Prasad Rijal 9857071278
9857085739 /
Province 5 GAUDAKOT BRANCH Shankar Mahotra Chhatrakot Ga. Pa.-02, Veduwa
9847185739
9851181888 /
GAUDAKOT BRANCH Padam Prasad Aryal Chhatrakot Ga. Pa.-03, Hardineta
9847181888
GAUDAKOT BRANCH Narayan Prasad Aryal Gulmi Darbar Ga. Pa.-06, Charpala 9857061611
GAUDAKOT BRANCH Uttam Pun Gulmi Darbar Ga. Pa.-01, Balithum 9857064507
JEETPUR BRANCH Jagdish Gupta Kapilbastu Na. Pa.-09, Jagadishpur 9867596444
KOHALPUR BRANCH Bir Bahadur Budha Baijanath Ga. Pa.-04, Baniyabhar 9858069223
KOHALPUR BRANCH Rudra Mani Dhakal Raptisonari Ga. Pa.-1, Kusum 9815574511
LIWANG BRANCH Bishwo Kumar Chand Paribartan Ga. Pa.-03, Iribang 9758503497
LIWANG BRANCH Kamal Gharti Magar Maadi Ga. Pa.-02, Ghartigau 9866704999
9809531654 /
LIWANG BRANCH Basant Roka Thawang Ga. Pa.-02, Thulogau
9857835329
Gulmidarbar Ga. Pa.-02, Jubhung 9847557564 /
MAJUWA BRANCH Kopila Poudel
Hatiya 9867008636
9811461240 /
MAJUWA BRANCH Suman Kharel Mushikhot Na. Pa-05, Aapchaur
9847008979
Sharma Kirana Tatha Hardware
NEPALGUNJ BRANCH Badaiyatal Ga. Pa.-6, Mainapokhar 9858024007
Pasal
PURBAKHOLA BRANCH Mehar Singh Thapa Purbakhola Ga. Pa. 04, Devinagar 9857060170

194 GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19

PROVINCE BLB PARENT BRANCH BLB REPRESENTATIVE ADDRESS CONTACT NO
PURBAKHOLA BRANCH Rita Rana Purbakhola Ga.Pa.-5, Birkot, Palpa 9857081178
SULICHAUR BRANCH Kshitiz Pun Lungri Ga. Pa.-02, Sirpa, Rolpa 9857824711
SULICHAUR BRANCH Top Bahadur Roka Sunilsmriti Ga. Pa.-07, Tebang 9844969624
Satyawati Ga. Pa.-1, Rudrabeni 9847169009 /
TAMGHAS BRANCH Parishowar Dhakal
Bazaar 9857064009
Bhagirath Bahuuddeshiya
TAMGHAS BRANCH Chhatrakot Ga. Pa.-04, Digam 9867049333
Sahakari Sanstha
Mirmire Bachat Tatha Rin Gulmidarbar Ga. Pa.-4, Birbase
TAMGHAS BRANCH 9747006626
Sahakari Bazzar
TAMGHAS BRANCH Lumakanta Pandey Dhurkot Ga. Pa.-05, Bastu 9857064295
TAMGHAS BRANCH Madhab Prasad Poudyal Isma Ga. Pa.-05, Ismna Maidan 9847106898
Chhatrakot Ga. Pa.-5, Kharjyang 9857064053 /
TAMGHAS BRANCH Ram Prasad Kandel
Bazzar 071-621321
TAMGHAS BRANCH Krishna Kunwar Chhetri Mala Rami Ga. Pa.-02, Dadakateri 9867042245
9848514243/
TAMGHAS BRANCH Chandra Bahadur Thapa Madane Ga. Pa.-6, Purkot
9847838977
TAMGHAS BRANCH Harikala Paharai Resunga Na.Pa.-14, Paralmi, Gulmi 9812932990
TANSEN BRANCH Bhabishwor Thapa Tansen Na. Pa.-13, Bougha Gumha 9847125113
TANSEN BRANCH Chaturbhuj Dhakal Rambha Ga. Pa.-01, Hungi 9847067579
WAMI BRANCH Sagar Sapkota Mushikot Na. Pa.-06, Bhumichindi 9801191453
Province 5
WAMI BRANCH Deepak Pun Bhimghethee -01 Bhimghethee 9857641199
WAMI BRANCH Basanta Adhikari Musikot Na. Pa.-03, Thulapokhara 9847676371
WAMI BRANCH Drona Prasad Sapkota Musikot Na. Pa.-09, Padthok 9847676371
MAJUWA BRANCH Narayan Bahadur Bhandari Satyawati Ga.Pa -06 Chorkate 9867135757
TAMGHAS BRANCH Yamlal Aryal Malika Ga.Pa -02 Darling 9857064595
9867402467/
ARGHAKHANCHI BRANCH Mahesh Pandey Panini Ga. Pa -08 Pali
9847237462
9857034556/
ARGHAKHANCHI BRANCH Prem Narayan Ghimire Panini Ga. Pa - 04 Nigali
9747139718
ARGHAKHANCHI BRANCH Krishna Prasad Paudel Bhumikasthan Na.Pa -06 Khilji 9847362009
Sunil smirti, Rural Municipality
SULICHAUR BRANCH Dhan Prasad Giri 9857824047
-02 Khungri
9822865605/
TULSIPUR BRANCH Birendra Basnet Shantinagar Ga. Pa -05 Ragaija
9847834460
WAMI BRANCH Ganga Shrestha Musikot Na. Pa -01 Paudi Amarai 9867205530
Lunhgri Ga.Pa-03, Jutung Khola,
SULICHAUR BRANCH Anil Kumar G.C 9748539472
Rolpa
LIWANG BRANCH Jang Bahadur Thapa Magar Rolpa Na. Pa-03 , Satdobato, Rolpa 9860381125
LIWANG BRANCH Jagat Kiran D.C. Gangadev Ga.Pa-01, Oat, Rolpa 9844981995
LIWANG BRANCH Ram Chandra Thapa Paribartan Ga.Pa-06, Nafe, Rolpa 9857821678
Khadachakra Na. Pa.-02, Bharta-
KALIKOT BRANCH Santosh Mahatara 9851026463
Lalighat
KALIKOT BRANCH Prem Bhadur Budha Tribeni Ga.Pa.-01 9851240400
RUKUM BRANCH Jaya Bahadur K.C. Musikot Na. Pa-04, Solabang 9847837068
Province 6
RUKUM BRANCH Jeevan Khadka Saanibheri Ga. Pa.-09, Simlli 9843565650
SURKHET BRANCH Ramesh Sharma Veriganga Na. Pa.-11, Ramghat 9848243762
Shree Jana Jyoti Higher Secondary Barahatal Ga. Pa.-5, Baddichaur 9858023524 /
SURKHET BRANCH
School Bazaar 9858051250

GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19 195

PROVINCE BLB PARENT BRANCH BLB REPRESENTATIVE ADDRESS CONTACT NO
AJAYMERU BRANCH Himalaya Shankar Ayer Ajayameru Ga. Pa.-02, Chamada 9843435721
AJAYMERU BRANCH Khadak Singh Khadka Ajayameru Ga. Pa.-06, Dewal 9865678020
Dasharathchand Na. Pa.-2,
BAITADI BRANCH Surya Bahadur Bohara 9848876097
Dehimandu
BAITADI BRANCH Harish Karki Dogdakedar Ga. Pa.-3, Khochlek Bazar 9848746820
BOGTAN BRANCH Puran Bahadur Bam K. I. Singh Ga. Pa.-02, Tikhatar 9848617689
9749101482 /
DADELDHURA BRANCH Narayan Datta Awasthi Nawa Durga Ga. Pa.-2, Badam
9809461578
Ganyapdhura Ga. Pa.-02,
DADELDHURA BRANCH Bhawana Kumari Adhikari 9868566715
Ganeshpur
DADELDHURA BRANCH Suresh Shahi Ganyapdhura Ga. Pa.-3, Sakayal 9749012002
DADELDHURA BRANCH Bhoj Bahadur Malla Joryal Ga. Pa.-01, Gaira 9848800068
Dhangadhi Upa. Ma. Na. Pa.-18,
DHANGADI BRANCH Thala Ram Rijal 9804655600
Aadarsa Chowk
DHANGADI BRANCH Nabin Bahadur Singh Godawari Na. Pa.-12, Olani-Gaudi 9868542513
9864756475 /
DOGADAKEDAR BRANCH Hem Raj Bhatta Dogdakedar Ga. Pa.-04, Basali
9848770678
Dogdakedar Ga. Pa.-02, Kafalkot
DOGADAKEDAR BRANCH Karan Singh Bista 9848835245
Badiya
JOGBUDA EXTENSION 9868848700 /
Janaki Kumari Joshi Alital Ga. Pa.-08, Godam
COUNTER 9806467722
JOGBUDA EXTENSION 9848888355 /
Bimala Kumari Bohara Parshuram Na. Pa.-07, Sadani
COUNTER 9864973202
KHODPE EXTENSION 9749039091 /
Nar Bahadur Bohara Bitthad Chir Ga. Pa.-01, Bitthad
COUNTER 9868568585
Province 7 KHODPE EXTENSION 9749537687 /
Bir Bahadur Chand Surnaya, Motinagar, Baitadi
COUNTER 9749554254
KHODPE EXTENSION
Arjun Bahadur Kunwar Patan Na. Pa.-10, Thata 9848801329
COUNTER
9848443079 /
LAMKI BRANCH Anup Kumar Rawat Janaki Na. Pa.-04, Munuwa
9804644055
LAMKI BRANCH Hira Devi Jaishi Mohanyal Ga.Pa.-6, Solta 9758002554
Bardagoriya Ga. Pa.-04, Mudha
LAMKI BRANCH Megh Raj Sapkota 9865667071
Bazar
9801387490 /
MAHENDRANAGAR BRANCH Bharat Mahata Krishnapur Na. Pa.-02, Baani
9801387099
9848850133 /
MAHENDRANAGAR BRANCH Ramesh Bahadur Khadka Bhimdatta Na. Pa.-9, Bramhadev
9848705696
Mahakali Na. Pa.-02, Chandani
MAHENDRANAGAR BRANCH Saraswati Kumari Bista Pandey 9801380618
Bazaar
PATAN EXTENSION COUNTER Jog Raj Ojha Melauli Na. Pa.-07, Kanda Bazzar 9848707370
PATAN EXTENSION COUNTER Prakash Joshi Melauli Na. Pa.-2, Salena Patauna 9848826667
Purbichauki Ga. Pa.-05,
PURBICHAUKI BRANCH Deepak Bahadur Bogati 9860178332
Chaukhutte
Purbichauki Ga. Pa.-01,
PURBICHAUKI BRANCH Mahesh Bahadur Khadka 9865643054
Shantinagar
Dipayal Silgadhi Municipality -07 9848540510/
PURBICHAUKI BRANCH Jayanti Bhatta Bist
Rataoli 9848691020
Dipayal Silgadhi Na.Pa -08 Nari
PURBICHAUKI BRANCH Prakash Thapa 9868706114
Dang
Purchoudi Na.Pa-05, Kuwakot,
PURCHOUDI BRANCH Keshab Bahadur Kunwar 9868782929
Baitadi 05 Nuwakot

196 GLOBAL IME BANK LTD. | ANNUAL REPORT 2018-19