3.

BRIEF INTRODUCTION OF ORGANIZATION

3.1 The Concept

One of Nepal's well-known banks, Global Bank, combined with IME Financial
Institution and Lord Buddha Finance and began operating in July. As a result, as of
2012, it is now known as Global IME Bank Limited. "Global Bank was chosen to
oversee the merger of three institutions, making it the first category "A" financial
institution to do so. By completing the merger procedure more quickly, the Global
IME Bank merger is the largest merger in the banking industry's history in Nepal.

The Office of the Company Registrar and Nepal Rastra Bank have both approved the
merger of Global Bank, Lord Buddha Finance, and IME Financial Institution. The
bank began conducting its business under the new name, Global IME Bank, in
accordance with the merger notice that was issued. As stated in the combination
notice, the bank began conducting its business as Global IME Bank Limited as of July
9, 2012. The new bank's head office and corporate office are still located in the same
Panipokhari building where Global Bank formerly conducted its operations.

In January 2007, the Global bank was created. Similar to how IME Financial
Institution began operations on August 1, 2005, Lord Buddha Finance began
operations on November 19, 2006, and vice versa. Global IME Bank Limited was
formed after the merger of Global Bank with IME Financial Institution and Lord
Buddha Finance in 2012. Both the IME Finance companies of Nepal. After that,
Global IME Bank merged two development bank in 2013. They were Social
Development Bank and GulmiBikas Bank. Both the institution were “B” class
Development Bank. In 2014, the mergers continued

Global IME Bank considered feedback and decided to combine with Bank Nepal as
the "A" class commercial bank. Likewise for the years 2015 and 2016. Pacific
Development Bank and Reliable Development Bank were two "B" Development
Banks that Global IME Bank purchased. Currently, the bank is in the process of
merging with Janta Development Bank. Global IME Bank has also inked an
acquisition deal with Hathway Finance ("C" class finance). An "A" class commercial
bank in Nepal is called Janta Development Bank.
Global IME Bank Limited is a national-level commercial bank that has been
supported by well-known business figures, groups, and reputable citizens of the
nation who have achieved success in their fields of endeavor while maintaining high
standards of moral character and public reputation. Global IME Bank is dedicated to
providing a wide range of banking products and services tailored with cutting-edge
technology to meet the specific needs of every customer/client and thereby delight
them by exceeding their expectations. This is done under the direction of a reputable
Board of Directors and a professional and dynamic management team with extensive
experience and a proven track-record in the banking industry.

The Global IME Bank Team is dedicated to provide its valued customers the best
goods and services with the utmost consideration and courtesy in accordance with the
common goal of "The Bank for All." Global IME Bank is committed to providing
customers with high-quality goods and services that are created or adapted to best
meet their needs.

 Vision

Global IME bank is newly emerged bank with following vision.

“The Bank For All”

 Mission

To win the respectable market share through customer focuses quality products and
services, innovation business solutions and technology driven banking thereby
enhancing the growth and profitability of the bank so to ensure the optimum benefit
to all stake holders at all.

Objective
 Business growth
 Profit maximization
 Increase market share
 Provide innovative financial services to the customers.
 To provide financial help to the General Public.
 To encourage industries by providing necessary capitals.
  To provide safe deposit to the customers.
 To provide various kind of credit facilities such as home, education loan etc.

 Core value and Ethical principles

Integrity and business Ethics: Commitment to integrity and business ethics is our
fundamental principle to do the business.

a. Teamwork

We believe that essence of success is team work and thus achievement is possible
only when every member of team contributed to their ability. Most importantly we
consider all our business partners(clients) as a part of the team with whom we share
our ideas/skills, learn from each other and take the business relations to the greater
heights so as to be mutually beneficial which will ultimately lead to the successful
relationship.

b. Respect and Humility

We understand that respect and humility are the key factors to motivate and drive
every individual towards the organization goals. We honor the culture, language,
ethnicity social values and entrepreneurial spirit of every individual across the
boundaries and draw strength from opportunity and diversity thereby enabling the
growth of all the stakeholders.

c. Good Governance

We are committed to ensure the transparency and internal control systems through
clear-cut policy guidelines/manuals, procedures, central bank's rules regulations for
our own satisfaction and to satisfy the regulators thereby ensuring the Corporate Good
Governance.

d. Loyalty

We maintain the highest level of loyalty towards all stakeholders, particularly the
business times/situations. We will strive to prove that “Bankers are all weather
friends” as against the traditional concept of “Fair weather” by maintaining the
business loyalty at all times.
3.1.1 Board of Director

Table no: 1 Board of Director of Global IME Bank

Name Position

Mr. Chandra Prasad Dhakal Chairman

Mr. Sudarshan Krishna Shrestha Director

Mr. Krishna Prasad Sharma Director

Mr. Decent Pratap Singh Director

Mr. Cabinet Shrestha Director

Mr. Ram Bahadur Bhandari Director

( Source: http//globalimebank.com/board-of-directors.)

The employee of Global IME Bank at Itahari Branch in the following position are
given below:

Branch Manager: Binod Karki

Operational Department: Srijana Shrestha

Credit and Loan Department: Om khanal

Teller / Cash Department: Kala Basnet

Remittance: Suraj Mandal

Customer Service Department: Grishma Adhikari

Teller 1: Sonali Khatiwada

Teller 2: Manish Jung Basnet

Teller 3: Chandra Kala Basnet

3.1.2 Capital Structure

Table No: 2 Capital structure of Global IME Bank

Particular Amount

Authorized Capital 500,000,000

    Issued Capital 365,500,000

    Paid Up Capital 365,500,000

(Source: globalimebank.com/globalimebankcapitalstructure)

3.1.3. Shareholding structure

Table No: 3 Shareholding structure of Global IME Bank

Ownership Structure Percentage (%)
Domestic Ownership 100
Promoter (Institutions) 14.21
Promoter (individual) 36.99
General Public 48.8
Foreign Ownership _
Total 100
(Source: https://globalimebank.com/globalimebankshareholdingstructure)
3.1.4 Product and Services offered by Global IME Bank Limited

Global IME Bank as one of the competing commercial bank is providing variety of
product and services to satisfy its customers’ needs. It is providing various new and
modified products according to changing needs and demand of customers to attract
new customers and retain them in the bank. The product and services offered by
Global IME Bank can be categorized into:
a. Deposits

Global IME Bank provides an array of deposit schemes with competitive interest rate
to the customers to attract them. The types of accounts and schemes of deposits
provided by Global IME Bank are:

Table no: 4 Types of Deposits

Interest Rate of Saving Deposits [ Effective From : 2022-12-01 ]its [ Effective

From : 2020-08-01 ]

Minimum Rates Per

s.n.. Account type
balance Annum

1 Normal Saving 0 2.50%

2 Global Premium Savings 10,000/- 3.50%

3 Nari Bachat 100/- 2.50%

4 Balbalika Bachat 100/- 2.50%

5 Senior Citizen Account 100/- 3.50%

6 Karmachari Bachat 0 3.00%

7 Students Savings Account 0 2.50%

8 Janmabhumi Bachat 0 3.00%

9 Remittance Deposit Account 0 3.00%

10 BLB/Micro Finance Savings 0 2.50%

11 Social Secuity Allowances 0 2.50%

12 Sabai Nepaliko Bachat Khata 0 2.50%

13 Global Navaratna Bachat Khata 25,000/- 4.50%

14 Global Navaratna Salary Account 100/- 4.50%

15 Global Share Lagani Bachat Khata 0 4.50%

16 Global Sansthagat Bachat Khata 1,000/- 2.50%

17 Global Suraksha Bachat Khata 10,000/- 3.50%

Interest Rate of Saving Deposits [ Effective From : 2022-12-01 ]its [ Effective
From : 2020-08-01 ]

Minimum Rates Per

s.n.. Account type
balance Annum

18 Global NRN LCY Saving Account 5,000/- 4.50%

19 USD Saving Account/Global NRN FCY 0 2.00%

Savings Account

20 Other foreign Currency Saving Account 0 0.75%

b. Loans and Advances

Different kinds of loans provided by GIBL:

i. Consumer/Personal Loan

 Global Home Loan

 Global Auto Loan
 Global Hire Purchase Loan
 Global Education Loan
 Global Mortgage Loan (Personal Loan)
 Loan against FD

ii. Small and Medium Enterprises (SME)

Loan Purpose:

 Financing for small business facilities and commitments

 Working capital financing
 Financing for capital expenditure (in the form of Fixed Term Loan)
 Financing for trade related facilities and non-funded facilities like bank guarantee,
LC etc.

iii. Corporate Loan

GIBL provide corporate loan firm to maximize business growth. It provides

 Funded Loan

 Fixed Term Loan

 Working Capital Loan
 Overdraft
 Demand Loan
 Cash Credit
 Pledge Loan

 Non Funded Loan

 To support import and export or international trade, GIBL provide facility like
 Guarantee
 Letter of credit

 Global IME Bank Card Products

Global IME bank offers various card products to its customers. All of global IME
banks cards are issued under visa brand. The banks offer two types of cards, debit
cards and credit cards. Customers who have the Banks cards can use it to purchase
goods and services at various merchant locations in Nepal and India. In addition, they
can use their cards to withdraw cash from hundreds of Automatic Teller Machines
(ATM) in Nepal and from thousands of ATM machines in India. Debit card
customers can also use ATM machines to recharge prepaid GSM/CDMA (Nepal
Telecom) and request claques book and bank account statement anytime.
International Prepaid Cards and Credit Cards are also issued by the bank and these
cards are acceptable.

 Visa Debit Cards

Visa Debit Card is the standard debit card issued by Global IME Banks to its account
holders. A Debit Card (also known as Banks Cards and Check Card) is a plastic card
that provides an alternative payments method to cash when making purchase.
Functionally, it can be called an electronic claque, as the fund withdrawn directly
from the bank account. In some cases, the cards are designed exclusively for use on
the internet, and so there is no physical card. An example of such is world famous
PayPal and e-sewa in Nepal.
 Global Travel Cards

Prepaid debit cards, also called re-loadable prepaid cards, are often used for recurring
payments. Global Travel Cards is preloaded with customer desired amount in terms of
US dollars and can be used worldwide wherever Visa is accepted.

 Visa Domestic Gold Credit Cards

It is the high class credit card valid within Nepal and India issued under visa brand.

Any Nepalese citizens aged 16 years and above and with monthly income of NRS
35,000 and above are eligible to apply for this card. Apart from this, Visa Classic
Card can be upgraded to Visa Gold depending upon limit utilization and payments
history.

 Visa Domestic Classic Credit Cards

A credit card is a small plastic card issued to users as a system of payment. It allows
its holders to buy goods and services based on the holders premise to pay for these
goods and services. The issuers of the cards grant a line of credit to the costumer from
which the user can borrow money for payment to a merchant or as the cash advance
to the user. It is a standard credit card valid within Nepal and India issued under visa
brand.

 Visa International Credit Cards(USD)

Visa Gold International Credit Card is valid worldwide .Any Nepalese citizens
maintaining convertible foreign currency account expect for Indian Rupees are
eligible to apply for this card .Foreign national maintaining bank account in
convertible foreign currency can also apply for this card by submitting attested
identification documents from concerned embassy.

 Global IME Bank ATMs:

Global IME Bank has an extensive network of ATMs both inside and outside
Kathmandu valley ,which also allows Global IME Bank card holders to withdraw
money from there ATMs at any time .in addition to withdrawing money , GIBL Bank
ATMs can be used for recharging Nepal Telecom GSM/CDMA prepaid card as well
as requesting claques books and account statements .

 Global IME E-Banking Products

Global IME Bank has two types of e-Banking (electronic Banking) Products.

 Global Mobile Banking:

Global IME Bank has upgraded SMS Banking to Global Mobile Banking. Now
Global IME Bank customers don’t need to send SMS to 3456 to do banking with it.
GIBL costumers needs to have Global Mobile Banking application installed in their
mobile phone and through that application all the banking transactions and enquiry
mentioned here below can be performed via mobile phones. Global Mobile Banking
continues to support syntax based SMS banking. Mobile phone users who don’t have
access to Windows based or Java enabled mobile can continue using syntax based
mobile banking.

 Global Online-Internet Banking:

Why stand in line when you can be online? The Bank offers covenant banking
facilities through the internet so its valued customers can save their time and money.
Global online banking features many of the traditional banking activities which
previously could only be done through the counter.

a) Global Online: The following are the list of features available through GIBL
Online Banking :
 Fund transfer,
 Credit card payment
 NTC lending/postpaid bill payment
 Recharge NTC prepaid cards
 Recharge E-Sewa
 Claque book and statement request
 Claque stop
 Account information (mini statement/ full statement)
 Change login and transaction password
 Link account and link credit card setting

b) Global Online-Corporate Interne Banking:

It offers all the features and advantages of GIBL Online Banking and the added
benefit is that corporate users can disburse the salary to their entire staffs on a
monthly basis or as per the requirement of the individual corporation. This service
allows corporate clients with their staff salary accounts with the bank to upload their
staffs’ salary from their own office.

c) Global Online through WAP:

Now mobile phone users with internet access over mobile phones can access Global
Online .All features of GIBL Online can be accessed through this application.

However, Corporate Internet Banking isn’t available through WAP Due to the
Complex nature of this model itself.

3.1.5 Organizational structure of Global IME Bank

The Global IME Bank maintained functional departmentalization, where the different
functions of the bank are separated into different department and sub units.The
structure is designed to induce the employees to work in predictable and accountable
ways in a pre- specified structure. The organizational structure of Global IME Bank
diagram is shown as follows:
Figure Organizational structure
 BOARD OF DIRECTOR

Operation Credit Department Relationship

Department Mangement

Customer Service Teller Cash

Department Department

3.1.6 Global IME Bank Limited Itahari, Sunsari

The GLOBAL IME BANK is a leading bank in term of service, footprints, lending,
customer based and balance sheet size. over the operation of 11 years, the bank has
established many branches in different places of country. GLOBAL IME BANK
Itahari branch also established with the same objectives of providing financial
services to the rural community and to attain sustainable growth with in the rural
municipality. GLOBAL IME BANK Itahari branch is located in province number 1,
Sunsari district, Itahari sub-metropolitan city ward number 6 at near to Honk-kong
market with the objective of covering all the rural and city area of Itahari. In the
Itahari Branch, here 9 employees are working by providing wide range of banking
services and facilities to the customer and it provide a token system to the customer
so it helps to reduce rush in front of counter and the customer easily wait their turn
through token system.
Similarly, the bank provides facilities to the customer from morning 10:00 am to
evening 4:00 pm with different kind of its product and services as per customer needs
and demand. The GLOBAL IME BANK open different types of products, services
such as individual, corporate saving and current account. It also lands different types
of loan to the customer such as home loan, auto loan, educational loan, business loan
etc. withj minimum interest rate on loan and maximum at the deposit. Now, Mr
Binod Karki is the Branch manager of Global IME bank, Itahari branch who is
responsible of monitornig the day to day activities at the branch.
3.2 Present Situation:

A major force driving growth at GIBL is technology, which remains key to continued
progress. While integrating technology the bank continuously strives create a culture
that exemplifies service excellence, simplification of the interfaces between
customers and the bank, while creating secure and safe transactional platforms. In
2020/21, the bank successfully migrated to state of art Core Banking Systems and
platforms that will take our business into the future. It values the trust customers have
placed on it, which is the rationale for investments in the right technology and teams
to protect customer information whilst also delivering faster and more reliable
services. The bank recognizes that customer led innovation is crucial in the rapidly
changing digital space.

This explains its efforts to continuously engage in developing customer focused

concepts and platforms that will be introduced in coming years. Engaging stakeholder
is another core component of bank’s strategy implementation process. By developing
and maintaining meaningful relationship through stakeholder engagement, the bank
has been able to continuously improve its relations with stakeholders and in building
trust needed for expanding the business.

In the context of present situation there is tough competition for banking industry. The
overall competitions have been increased over the gap of time. Due to this reason
many banking industry is facing lots of problem. Some are in the position of insolvent
and some are in the process of merger. The political instability is creating lots of
problem in their operation. Few banks are making their presence in market by
providing security and confidence to customer.

Table no: 5 Financial Achievement of Global IME Bank

Heading 2078/79 2077/78 Percent change

Paid up capital (RsArba) 23.79 21.63 9.99

Reserve and Surplus (RsArba) 13.35 11.08 20.49

Deposit from customers (RsArba) 277.49 268.43 3.38

Loans and advance from customers 258.54 228.65 13.07
(RsArba)

Net interest income (RsArba) 10.74 9.13 17.63

Operating profit (RsArba) 7.56 5.95 27.06

Net Profit (RsArba) 5.2 4.16 25.00

Distributable profit (RsArba) 3.19 - -

Non performing loans NIL (%) 1.22 1.41 -13.48

Base Rate (%) 9.4 6.6 42.42

Earning per share EPS (Rs) 21.88 - -

Net worth per share ( Rs) 152.11 - -

Market price per share (Rs) Ashad 251.4 - -

end 2077

P/E ratio 11.49 - -

(Source:https://www.investopaper.com/news/global-ime-bank-fourth-quarter-
report/ )

3.3 Challenges and Opportunity

SWOT analysis is one of the major tools for analyzing organization internal as well as
external environment. The internal environment provides strength and weakness
whereas external environment provides opportunities and threats to the organization.

Figure no 2: An overview of GIBL’s SWOT analysis

Strength
  Good customer service
 Strong network among branches outside the valley
 Diversified product and service offered
 Very helpful environment created with the entire concerned department

Weakness

 Low interest rate on deposits

 Experienced employee turnover
 Lack of sufficient ATM machine all over Nepal.
 Poor ATM service, frequent breakdown.
 Low supervision of departments.
 Crowd management is not good.

Opportunities

 New Investment opportunities.

 Growing international trade.
 Introduction of innovative products, services and programs.
 Installation of updated

Threats

 Political instability
 Changing customer preferences
 Changing technology
 Emerging issue like COVID
 Intense competition
 Changing rules and regulations of NRB