Annual Report 2074 2075 (In English)

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 14
Director's Report 16
Management Team 23
Message from Acting CEO 24
Organogram 26
Annexure "A" 29
Disclosures 32
Corporate Governance 33
Corporate Social Responsibility 37
Bank's Products & Services 42
International Correspondent Banks 58
Auditor's Report 60
Financial Statements 63
Disclosure effect of NFRS Adoption 152
Principal Indicators 176
Branch Details 177
ATMs Locations 180
2 Annual Report 2074-75 Global IME Bank Limited
Financial Highlights
NPR IN BILLION
NET INTEREST INCOME TOTAL OPERATING INCOME

3.89 5.10
3.66 4.75
3.95
2.89
2.29 3.17
1.76 2.37
2014 2015 2016 2017 2018 2014 2015 2016 2017 2018
net profit loans & advances

93.37
2.10 80.82
2.06
1.38 60.84
0.96 50.23
0.97 43.02
2014 2015 2016 2017 2018 2014 2015 2016 2017 2018
deposit mobilization GOVERNMENT SECURITIES

106.51
120.00
101.91 18.00 16.84
100.00 16.00
74.68 14.00
80.00 11.46
60.18 12.00 11.23
60.00 52.29 10.00 9.34
8.14
8.00
40.00 6.00
4.00
20.00
2.00
2014 2015 2016 2017 2018 2014 2015 2016 2017 2018
Global IME Bank Limited Annual Report 2074-75 3
NON PERFORMING LOAN RATIO CCD RATIO & CAPITAL ADEQUACY RATIO
3.00%
80.00% 73.64% 74.41% 75.35%
2.55% 72.96% 71.24%
2.50% 70.00%
2.22%
60.00%
1.89%
2.00% 50.00%
1.60%
40.00%
1.50%
30.00%
20.00% 12.38% 12.69% 12.35% 11.37% 11.47%
1.00% 0.77%
10.00%
0.50% 0.00%
2014 2015 2016 2017 2018
0.00 2014 2015 2016 2017 2018 Capital Adequacy Ratio Credit to Capital and Deposit Ratio
BRANCHES AND ATMS DIVIDEND PAYOUTS (STOCK & CASH)

25.00% 23.00%
160 134 21.00%
20.00%
140 114 16.00%
15.76%
120 90 99 15.00%
84 133
100 112 10.00%
10.00%
80
84 85 91
60 5.00%
4.00%
40
0.00%
20 0.00% 0.00% 0.00%
0 2014 2015 2016 2017 2018
2014 2015 2016 2017 2018
Stock Dividend Cash Divident
Number of Branches Number of Branches
MARKET PRICE PER SHARE / RETURN ON SHAREHOLDER'S FUND

EARNING PER SHARE / P/ E RATIO 18.00% 16.00%
30.00 700.00 16.00% 17.00%
640.00 16.00% 13.00%
25.51 14.00% 15.00%
25.00 600.00
515.00 23.64 12.00%
479.00 500.00
20.00 19.57 10.00%
19.33 388.00 400.00 8.00%
15.00 15.58 290.00
300.00 6.00%
10.00 200.00 4.00%
5.00 100.00 2.00%
0.00 0.00%
0.00
2014 2015 2016 2017 2018
2014 2015 2016 2017 2018
Market Price per Share Earning per Share
NPR IN BILLION
SHAREHOLDER'S FUNDS TOTAL ASSETS

13.58 125.85
12.38 117.89
8.95 88.68
7.32 69.19
6.12 60.02
2014 2015 2016 2017 2018 2014 2015 2016 2017 2018
BANK'S MARKET CAPITALIZATION
31.75
28.10
25.78
16.81
14.05
2014 2015 2016 2017 2018
Margin Lending CALL DEPOSIT

1.88 2% 7.97 7%
Others SAVING DEPOSIT

16.88 18% 36.87 35%
Real Estate Loan

3.55 4%
LOAN MIX DEPOSIT MIX
TOTAL 93.37 TOTAL 106.51
Term Loan
13.42 14% Working Capital Loan TERM DEPOSIT
49.05 53% 53.39 50%
DEMAND DEPOSIT
Home Loan 7.36 7%
8.60 9% MARGIN DEPOSIT
0.92 1%
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 STAKE HOLDERS AT ALL TIMES.
CORE VALUES
INTEGRITY AND BUSINESS ETHICS
Commitment to integrity and business ethics is our fundamental principle to do the
business.
TEAMWORK
We believe that essence of success is team work and thus achievement of VMO is possible
only when every member of team contributes to their ability. Most importantly we consider
all our business partners (clients) as a part of the team with whom we share our ideas/
skills, learn from each other and take the business relations to the greater heights so as to
be mutually beneficial which will ultimately lead to the successful relationship.
RESPECT AND HUMILITY

We understand that respect and humility are the key factors to motivate and drive every
individual towards the organizational goals. We honor the culture, language, ethnicity,
social values and entrepreneurial spirit of every individual across the boundaries and
draw strength from equal opportunity and diversity thereby enabling the growth of all the
stakeholders.
PROFESSIONALISM
Everything we do, we do with the highest standards of professionalism. Research and
Development with focus on business partners (clients/customers) is the key to pursue
innovation, deployment of imagination and quality functions/characteristics and translate
new ideas into reality consistently whereby we can delight the customer/clients by
delivering the products/services with outstanding quality so that our relationships with
our clients will remain forever
GOOD GOVERNANCE
We are committed 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.
LOYALTY
We maintain the highest level of loyalty towards all stakeholders, particularly the business
partners (customers/clients) and promise to walk alongside the business partners at
difficult times/ situations. We will strive to prove that “Bankers are all weather friends”
as against the traditional concept of “Fair weather friends” by maintaining the business
loyalty at all times.
SHAREHOLDING STRUCTURE
AUTHORIZED CAPITAL OF GLOBAL IME BANK IS NPR 16,000 MILLION AND PAID UP CAPITAL IS NPR 10,310.52
MILLION. THE PROMOTERS HOLD 51.20% WHILE 48.80% IS held by the PUBLIC.
CURRENT SHAREHOLDER STRUCTURE OF THE BANK IS AS BELOW:
PROMOTER
SHAREHOLDER
NPR 5,278.49
PUBLIC
MILLION
SHAREHOLDER
NPR 5,032.03
MILLION
TOTAL
NPR 10,310.52
MILLION
BANK’S OVERVIEW
Global IME Bank Ltd. (GIBL) impetus to the Economy through status in the industry. The bank
emerged after successful merger world class banking service. has been handling government
of Global Bank Ltd (an “A” class transactions and is officially
commercial bank), IME Financial For the day to day operations, the among one of the few commercial
Institution (a “C” class finance bank has been using the world banks trusted by the Government
company) and Lord Buddha renowned FINACLE software in handing Government
Finance Ltd. (a “C” class finance that provides real time access revenue transactions of various
company) in year 2012. Two to customer database across offices. The bank has been able
more development banks (Social all branches and corporate to earn the trust and confidence
Development Bank and Gulmi locations of the bank. This state of the public, which is reflected
Bikas Bank) merged with Global of the art customer database in the large and ever expanding
IME Bank Ltd in year 2013. Later, has also been linked to a customer base with more than
in the year 2014, Global IME Bank Management Information System 1,000,000 number of accounts in
merged with Commerz and Trust that provides easy reach to all deposit base and above 24,000 in
Bank Nepal Ltd. (an “A” class possible database information for credit. Through all this the bank
commercial bank). During 2015- balanced and informed decision has been able to truly achieve
16, Global IME Bank Limited making. A Disaster Recovery its vision of being “The Bank for
acquired Pacific Development System (DRS) of the Bank has also All”. Even with all this success, the
Bank Limited (a "B" Class been established in the Western bank remains internally focused
Development Bank) and Reliable Region of Nepal (200 km west of towards manpower development,
Development Bank Limited (a "B" Kathmandu). product innovation and process
Class Development Bank). innovation etc., to have a strong
The bank has been able to and solid foundation, which
Then Global Bank Limited (GBL) achieve excellent diversification are ongoing and continuous
was established in 2007 as an of its assets. A well balanced improvement initiatives
‘A’ class commercial bank in distribution of exposure in undertaken by the management
Nepal which provided entire areas of national interest has and staff alike.
commercial banking services. been possible through long
The bank was established with term forecasting and timely GIBL has been conferred
the largest capital base at the strategic planning. The bank has with “The Bank of the Year
time with paid up capital of NPR diversified interests in hydro Award 2014” for Nepal by the
1 billion. The paid up capital of power, manufacturing, textiles, Bankers Magazine (Publication
the bank has since been increased services industry, aviation, of the Financial Times, UK), “Best
to NPR 10.31 billion. The bank's exports, trading and microfinance Internet Bank 2016- Nepal” by
shares are publicly traded as an projects, just to mention a few. International Finance Magazine,
'A' category company in the Nepal London and “Best Employer
Stock Exchange. It is in line with The exemplary performance of Award 2018” by World HRD
the aim of the bank to be “The the bank in these last twelve years Congress, India.
Bank for All” by giving necessary has elevated it to a premier
PROMOTERS
GIBL has been promoted by a group of prominent indigenous entrepreneurs

who have written a history of success in their field 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 the 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.
Mr. Chandra Prasad Dhakal

Chairman
Chairman’s Profile
Mr. Chandra Prasad Dhakal is one of the leading entrepreneurs of the country. He is the Executive
Chairman of IME Group of Companies, one of the fastest growing business conglomerates in Nepal,
which has presence in banking, money service, IT, trading, hydro-energy, travel and tourism, cable car
and infrastructures.
Mr. Dhakal set up International Money Executive Chairman of IME • Trading: C.M. Trading
Express (IME) in 2001 in Nepal and Group of Companies, a business Enterprises Pvt. Ltd.
Malaysia to facilitate the migrant conglomerate that has a wide array • Automobiles: IME Automotives
workers in Malaysia to send their of investment portfolios and IME Pvt. Ltd.
earnings homes. This arrangement has Ltd., the number one remittance • Energy: Himalayan Power
not only become productive, but also company of Nepal and CIP award Partner Ltd. and Mountain
paved pathway to institutionalizing winner 2014. He is a member Energy Pvt. Ltd.
the formal means of remittances. (Permanent Invitee) of Investment • Infrastructure: Chandragiri
Remittance payment locations in Board Nepal (Government body Hills Pvt. Ltd.
every corner of the country have chaired by the Prime Minister of
ensured rural communities' access Nepal), Vice President (Associate) Mr. Dhakal has participated in
to finance and this has contributed and Executive Committee Member many international conferences
greatly in poverty alleviation, one of Federation of Nepalese and seminars such as 7th NRNA
of the fundamental objectives of Chambers of Commerce and European Regional Meeting & the
Millennium Development Goals. For Industry (FNCCI), Chairperson of 5th NRNA Women’s Conference,
his outstanding contribution in the International and NRN Investment Regional Conference on Money
national economy by bringing in the Promotion Committee, President Service Business organized by
largest volume of remittances, he of Nepal Malaysia Chamber of Bank Negara Malaysia (Central
has also been conferred with the CIP Commerce and Industry, Vice- Bank of Malaysia), Courtesy call on
award 2014 by the government of Chairman of International Chamber Hon'ble Dr Mahathir bin Mohamad,
Nepal, Business Personality of the of Commerce and Industry Nepal former Prime Minister of Malaysia,
year 2014 by Kantipur Publications (ICC-N), Nepal German Chamber of at his residence to extend an
and Gorkha Dakshin Bahu IV from Commerce and Industry (NGCCI) invitation for participation in
the then King of Nepal Gyanendra Bir and Western Development Forum Nepal Business Conclave 2014,
Bikram Shah. (a non-profit organization for the India Infrastructure Summit 2013
overall development of the western & AGM of Indo-Canadian Business
His involvement in banking part of Nepal that includes three Chamber, 12th Meeting of Nepal-
sector also reflects his visionary zones/sixteen districts). China Non- Governmental Forum,
leadership as he shouldered 4th Bhutan Construction Expo &
to execute the merger policy of HIS INVESTMENT FNCCI Delegation to Bhutan, 31st
Government of Nepal and Nepal PORTFOLIO INCLUDES Association of Nepalese in America,
Rasta Bank with successful merger 6th NRNA European Regional
of Global IME Bank and other six • Banking: Global IME Bank Meeting & 4th NRNA Regional
financial institutions of Nepal. Limited Women's Conference Convention,
• Remittances: IME Ltd. Global Forum on Remittances
Mr. Dhakal is the Honorary Consul • Travel and Tours: IME Travels 2013 organized by the World Bank
of the Republic of Indonesia to and Tours Pvt. Ltd. and IFAD, 8th World Chambers
Nepal since 2010, Chairman of • Freight Forwarding: Mount Congress, CACCI Presidential Visit
Global IME Bank Limited, Nepal, Pumori Air Cargo Pvt. Ltd. to Myanmar, etc.
Board of directors
Pawan Kumar
Bhimsaria
Director
Mr. Bhimsaria is one of the leading Businessman of Nepal. He completed his Diploma
in Commerce from Nepal and MBA from Ireland. With 30 years of work experience
as a Managing Director in Bhimsaria Group of Companies. Bhimsaria Group of
companies is associated with top notch companies and is the authorized distributor
in Nepal for many popular Brands. Mr. Bhimsaria was the founder member of
Kantipur Publications and worked as a Director in Kantipur Publications Pvt. Ltd.
Mr. Bhimsaria has been the board of director of Himalayan White House Int'l College,
General Secretary of Friends of Kathmandu Medical College, the chief advisor for
International Computer Trade and the advisor for Computer Association of Nepal.
He is associated with Nepal Russia Chamber of Commerce, Nepal Greece Cultural
Association, Confederation of Nepalese Industries (CNI), Nepal Thai Chamber of
Commerce, Nepal Myanmar (Burma) Chamber of Commerce, and Nepal Foreign
Trade Association as an Executive Member.
Mr. Bhimsaria is also a Life Member of Human Rights Organization of Nepal.
Sudarshan
Krishna Shrestha
Director
Mr. Shrestha, a veteran banker having wide knowledge of banking operations,
retired from Rastriya Banijya Bank after 30 years of service. He holds a Master’s
Degree in Economics. Mr. Shrestha has worked in Credit Department, Managed
various Branches and also has experience in International Banking. He has attended
many banking related international/national trainings and seminars.
Suman
Pokharel
Director
Mr. Pokharel is presently working as 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 with Everest Bank and then Global
Bank Limited with strong forte in banking operations, credit, international
remittance and correspondence banking. Mr. Pokharel has been awarded
"The Best Manager of the Year 2018" by Management Association of Nepal.
Krishna
Prasad Sharma
Director
Mr. Sharma the eminent banker having more than 32 years of experience in
banking operations, business management and human resource management. He
had served as the Chief Executive officer at Rastriya Banijya Bank and Board of
Director of Nabil Bank ltd, Nepal Investment Bank , Employee Provident Fund,
National Life Insurance , NLG General Insurance , Credit Information Center, Deposit
Insurance Credit Guarantee Company and others as well. He holds a Master’s
Degree in Business Administration (MBA), Masters of Arts in Sociology (MA) and
Bachelor of Science in Agriculture (BSC). He had attended many banking related
international and national trainings and seminars.
Numanath
Poudel
Director
Mr. Poudel's core professional expertise includes Business Planning, Banking
Services, Financial Analytics and Access to finance. He holds Chartered Accountancy
degree from ICAI and also holds MBA degree from TU, Kathmandu. He has
participated in various National and International seminars and conferences in
countries like India, Hong Kong, Taiwan, Switzerland, Netherlands and Malaysia.
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
F
iscal Year 2017-18 proved to be a year full of challenges
to the banking sector. This year we witnessed a decline
in the growth of remittance inflows, a dire shortage
of loanable funds thereby increasing the interest rates and
ultimately a steep increment in the cost of funds. Amidst
these challenges the bank was able to report a net profit of
Rs. 2.10 Billion along with a significant growth in business size.
The bank’s deposit base grew by 4.51% to Rs. 106 Billion, and
its total risk portfolio increased by 15.53% to Rs. 93.37 Billion
during the fiscal year, which I consider to be satisfactory given
the market situation.
In the digital age of today, the banking industry has been

in the forefront of rapidly changing information and digital
technology. Global IME Bank Limited is committed to capitalize
Chandra Prasad Dhakal in these advancements in all fronts possible, especially by
Chairman improving the quality of services to our customers and
achieving operational efficiency through maximum utilization
of available digital platforms. The new “Global Smart”
application rolled out in 2018 has facilitated banking services
to our customers through their own devices, providing them
greater freedom and control in managing their finances and
payments. The bank has also introduced various other digital
products that support cashless transactions with the highest
degree of efficiency, convenience and security. This is expected
to contribute towards a true cashless economy.
We are highly committed towards our role as a as a responsible

corporate of the country and this is well covered/reflected in
all our activities, may it be a part of business or otherwise. We
have introduced a number of subsidized products branchless banking centers. Our network is further
including “Byabasaik Krishi Tatha Pashupanchi strengthened by our 7 provincial offices that is
Karja” and “Sikchhit Yuva Sworajgar Karja”. These contributing towards a sustained de-centralization
products are particularly catered towards our youth, strategy.
small entrepreneurs and those involved Agriculture.
I must place on record my appreciation for the
Our priority for the upcoming year will be business cooperation extended by my fellow Board Members
growth in low risk segments with higher risk for their professionalism in providing a strategic
adjusted returns. A special focus shall be to achieve guidance to the bank. I would also like to convey my
cost control by improving operational efficiency. The appreciation to the Global IME Bank employees for
Bank shall also focus on better risk management, your dedication and passion, which has become a
robust compliance, strengthening technology great source of competitive advantage for us.
and introduction of innovative customer friendly
products during the year. I express my sincere gratitude for the guidance and
support received from Nepal Rastra Bank, Securities
Global IME Bank Limited is well aware of its role Board of Nepal, Nepal Stock Exchange, Office of
as a custodian of the hard earned money of more Company Registrar, Ministry of Finance, Government
than a million customers, thus we are committed of Nepal and all other regulatory bodies.
to being prudent, ethical and transparent in our
operations. We have a robust mechanism supported My sincere gratitude to our shareholders – your
by an effective structure and clear policy guidelines support over the years has been a source of immense
to ensure corporate governance at all levels. All our strength for the Bank and I look forward to your
activities, in all fronts, are guided by highest degree continued support in moving forward in this journey
of professionalism and in the best interest of all our of excellence.
stakeholders.
To our loyal customers, the Bank is infinitely grateful
We have been able to reach our diverse customer for the trust and confidence you have placed in Global
base through our 453 service outlets that includes IME Bank. You remain the reason we are driven to
137 branches, 142 ATMs 3 representative offices succeed, innovate and grow.
25 extension /revenue collection counters and 146
Director's report
Dear Shareholders, The annual average consumer price inflation
moderated to 4.2 percent in 2017-18 from 4.5 percent
On behalf of the Board of Directors and myself, I in the previous year, however, the consumer price
am pleased to welcome all our shareholders in the inflation as at mid July 2018 remained at 4.6 percent.
Twelfth Annual General Meeting of Global IME Bank The inflation rate is targeted to keep below 6.5 percent
Ltd. As in the past years, we are happy to inform our in the fiscal year 2018-19. On the basis of annual
shareholders that with the support and solidarity indicator for financial year 2017-18, consumer price
of our shareholders, customers and regulatory inflation as on mid-October remained at 4.7 percent.
authorities, the bank has been able to continuously However, the same indicator for mid October 2016 was
achieve its goals. at 3.1 percent. However, in coming days there remains
the risk of rise in inflation with the increment in cost
On behalf of the Board of Directors, I present before of petroleum products and devaluation of Nepalese
you with the Annual Report along with Statement of currency.
Financial Position (Balance Sheet) as at 16th July 2018,
Statement of Profit and Loss for the Fiscal Year 2017- During the year under review, the export import ratio
18, Cash Flow Statements and various activities of the was 6.5 percent as compared to previous year of 7.4
bank for your consideration. percent. During this year, inward remittance increased
by 8.6 percent to Rs. 755.6 billion as compared to 7.7
This Annual Report has been prepared in conformity percent previously. During mid-October 2019, inward
with the provisions laid down in the Bank and Financial remittance has increased by 37.3%, however, during
Institution Act, 2073, Companies Act 2063 and Nepal the corresponding period of previous period, the
Rastra Bank’s Directives. inward remittance has increased by 2.6%
1. COUNTRY’S ECONOMIC CONDITION During the year under review, the deposit mobilisation
of Banks and Financial Institutions increased by
During Financial Year 2017-18, the growth in the real 19.20 percent compared to previous year of 14
Gross Domestic Product (at producers’ price) stands at percent. Similarly, during that period, the Loans and
6.3 percent compared to 7.9 percent in the preceding Investments of Banks and Financial Institutions have
year. (With a turnaround of paddy production from a increased by 22.50 percent compared to of 18.20
negative growth of 1.5 percent in 2017/18, a pickup in percent in previous year. Strategy for development of
agricultural growth in 2018/19 is likely to underpin Financial Sector Strategy as mentioned in monitory
the sustained rebound in overall GDP growth seen in policy, commercial banks are required to maintain the
the last two years.) interest rate spread between loans and deposits at 4.5
percent by the end of fiscal year 2018-19.
2. REVIEW OF THE BANK’S OPERATIONS DURING F/Y 2017-18
(A) FINANCIAL POSITION
Financial Position of the Bank in Comparison to last year is as follows:

Amount in NRs. Million
Increment
Particulars 2017-18 2016-17
Amount Percentage
Paid Up Capital 8,888 8,080 808 10.00%
Deposit from Customer and BFIs 106,510 101,910 4,600 4.51%
Loans to Customers and BFIs 93,373 80,820 12,553 15.53%
Investment in securities 16,321 10,155 6,166 60.72%
Investments in Subsidiary and Associates 518 484 34 7.08%
Reserve and Surplus 4,690 4,296 394 9.18%
Debenture 400 400 - 0.00%
As per the above table, as compared to 16 July 2017, there has been remarkable growth in the Bank’s Investment,
Deposit Resources and Lending as at 16 July 2018. During this year also the Bank has been able to continue its
business maintaining the comfortable Paid up Capital as in previous year.
(B) OPERATING RESULT
The Bank’s Operating Profit before provisioning stood at NRs. 3.06 billion and net profit after tax stood at NRs.
2.10 billion. The Bank’s summarised operating results for FY 2017-18 is as below:
Amount in NRs. Million

Increment
Particulars 2017-18 2016-17
Amount Percentage
Interest Income 11,482 7,464 4,018 53.84%
Interest Expenses 7,605 3,799 3,806 100.17%
Net Interest Income 3,877 3,664 213 5.80%
Net Fee Based Income 759 702 57 8.09%
Trading and Other Operating Income 460 382 78 20.35%
Provision/(Reversal) for Possible Losses (290) (19) (271) 1466.52%
Employee Expenses (1314) (1073) (241) 22.46%
Operating Expenses (1010) (742) (268) 36.12%
Tax Expenses (811) (907) 97 -10.68%
Net Profit after Tax 2,101 2,061 40 1.95%
During FY 2017-18, as compared to last year, the total interest income has increased by NRs. 4.02 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. During the bank “The Bank for All” envisages our aim of going
the review year interest income from placement of forward by bringing every person in contact with
liquid assets increased by 75.33 percent. Along with financial sector.
the increase in bank’s business net fee based income
too have increased satisfactorily by 8.09 percent. The bank will prioritize following strategy/work plan
Increment in operating expense was basically due in the coming financial years:
to increase in the branches and increased number of
staffs. Net profit after tax of the bank has increased by In view of making risk management more
1.95% to Rs. 2.10 Billion. Despite the stiff competition effective banking business, bank has
in the interest rates in the banking sector and economic established separate department for risk
slowdown during the previous year, the bank has which includes credit risk, operation risk,
been able to achieve satisfactory growth in its overall market risk and will continue to make the
activities. We extend our commitment to continue our risk management work more effective.
efforts for similar growth in the years to come.
To increase the effectiveness of the Bank’s
(C) Progress in the two month of the motto “Bank for all”, the Bank has established
current Fiscal year the provincial office, alongwith this, the bank
has opened its branches in these provinces
During the first five months of the current fiscal year, as instructed by the Central Bank. The Bank
deposit resources have increased by 7.70 billion and shall continue to increase the effectiveness
reached 114.21 billion. The Bank’s total loan has also of coordination, supervision, corporate
increased by 9.30 billion and reached 102.37 billion. governance, risk management and grievance
handling between the branches falling under
Amount in NPR million the province.
Particulars 15-Dec-18 16-Jul-18 NPR Increase % increase
Total Deposit 104,021 101,910 2,111 2.07%
In order to continue extending the customer
service, the Bank has currently established
Total Loan 85,478 80,820 4,658 5.76%
133 branches in 52 district. The bank is
conducting the feasibility study for extending
3. FUTURE PLANNING customer service in all 77 districts and aims at
working towards establishing the branches.
Bank will continuously work towards balanced
growth in deposit collection and credit mobilization as With the aim of making an international
per its strategic plan. We expect this will aid to bank’s recognition, to promote and contribute in the
sustainable business growth as well as higher return Nepal’s Economy through Remittance and
on shareholder’s investments. We would like to assure Business Promotional activities, the Bank
our shareholder that management will remain always has established its representative offices in
focus in continuing and strengthening this growth, Australia, India and the United Kingdom. In
and also further strengthening the positive indicators coming days the bank aims extend its services
that the bank has achieved. by providing banking services through these
representative offices.
The Bank has been striving to improve its business
with active participation from the general public. To increase the business, bank is in the process
According to which, today the Bank’s total customer of issuing 5 year term debenture named
has crossed 900 thousand. This has been possible as “Global IME Bank Ltd Debenture 2080/81”
a result of Bank’s massive branch network, popularity worth 1.5 Billion with yearly interest rate of
among the general public owing to a variety of services 10.50 percent.
provided to them. We are of the belief that the vision of
With aim to further strengthening the additional exchange houses and Banks in all
compliance of the bank, the Bank has remittance corridors .
formed a separate Compliance Unit. All the
compliances are being monitored with high The bank is continuously studying the
importance. possibility of new technology embedded-
products and services with the motive of
To provide the prompt services to customers providing convenient and easily accessible
and lowering the operation cost through service to the customer through advance
the use of information technology, the Bank technology.
plans to establish a “Digital Banking” Unit.
The Bank aims to initiate the digital banking Bank will work in making the lifestyle of
transaction by studying the feasibility of deprive sector community intuitive, provide
benefits of the use of information technology education and health through the corporate
in banking works. social responsibility.
Since the establishment of the bank, the Bank is continuously focused on providing
bank has prioritized the provision of Retail highest level of service and facilities to
and SME Loan, the Bank shall continue to its customers. In making this work more
extend Retail and SME Loan to its customers. effective, bank has established separate
In coming days the bank will also prioritize “Customer Service Unit” in the branches and
its credit flow to the deprived sector and the unit are providing effective service.
specified productive sectors as directed by
Nepal Rastra Bank. As one of government transactions conducting
bank, we aim to increase the trustworthiness
Global IME Bank has welcomed the Nepal and strengthen the services provided for
Government as well as Nepal Rastra Bank’s conducting government transactions.
Merger / Acquisition policy and successfully Currently, we are providing revenue
merged / acquired 10 Banks and Financial collection services to Department of Survey,
Institutions and establish ourselves as one Immigration Department, Department of
of the lead commercial bank in this area. Transport Management, Traffic Police Office,
As a result of this, we have not only merged Department of Industries and Tribhuvan
with 10 Banks and financial institutions but University Examination Control Office,
also successfully merged the employees and revenue collection counter for people leaving
branches to provide the quality banking to Korea for foreign employment (EPS
service to the customer, which has made Counter) and C.D.S. and Clearing Limited.
us strong and we are always committed to
strive at making our motto of “Bank for All” Bank is continuously focusing on developing
successful. knowledge and expertise of its employees. To
make this work more effective a separate unit
The remittance service of the bank has “Employees Training and Development” under
strengthen and the bank is meticulously Human Resource Department is established.
involved in widening its service. Bank has This unit prepares the yearly program and
contributed in channelizing the money conducts different trainings and program and
remitted form various counties. The bank is working to further strengthen it.
is working towards extending relation with
Through the above mentioned programs, the bank branches and 54 branchless banking services were
aims at attaining remarkable achievement in business opened. The Bank is currently providing services to
and profit. its customers through 7 extension counter, 1 CDS
& Clearing Counter, 15 Revenue Collection counter
4. CUSTOMER RELATION and 115 Branchless Banking services and 141
ATMs. As per Nepal Rastra Bank direction the bank
There has been continuous increase in the number has established the provincial office in all seven
of customers of the bank. As compared to the total province and the province office are working towards
number of customers of 700,000 as at July 16, 2017,this coordinating, supervising and making customer
year our number of customer has reached 900,000. service easily accessible among branches falling
The bank is guided with the principle of prioritizing under the respective provinces.
customer satisfaction first. We are responding with
appropriate products, both in lending and deposit The Bank has already established its representative
mobilizations and proud to say that we are able to gain office in Australia, the United Kingdom and India.
recognition as the customer’s bank. We attribute the
success of our bank to the confidence bestowed upon 6. TECHNOLOGY
us by the customers. We express our commitment to
continue better customer service, always. Information technology are of great importance to
banking sector in this modern technology days and
With the support and collaboration of our customer, believe that banking and information technology
our bank endeavor to prepare customer centric should progress hand in hand. We are fully aware
plan to and reach every household. Similarly, we of the importance of keeping up with the new
are strictly following the guidelines on “Know your technology in providing quality banking services. Till
customer (KYC)” and “Anti-Money Laundering (AML)” date, the bank has been providing e-banking, mobile
standards. For effective implementation of AML & banking and card related services to our valued
CFT, the Bank has initiated Automated Swift Sanction customers. The bank has succeeded in securing a
Screening Service and Acuity Services. Along with this, lead position in the card banking business. The Bank
the Bank has formed an AML & CFT committee for has also initiated facilities to its customers where
regular monitoring and analysis. the customers can transfer funds through Mobile
Banking, Internet Banking, QR Payment System. The
Bank has prioritized the monitoring of customer Bank will continuously research and analyse the
transaction details through GO AML software benefits of the technology embedded-products.
according to Nepal Rastra Bank direction and aims
to fully implement the System Supported Suspicious 7. HUMAN RESOURCE DEVELOPMENT
Transaction Tracking work.
Efficient human resources plays a vital role in our
5. BRANCH NETWORK efforts to attain our vision and objectives, including
proper manning of an expanded branch network. We
We would like to inform you that, ranging from Far- believe in qualitative human resource management
Eastern Taplejung to Far Western Kalikot, in the 14 and extension of high quality services keeping the
zones and 7 Provinces, the bank currently has 133 customers satisfaction at its center-stage. The bank
branches. During Financial Year 2017-18, the Bank has is continuously endeavoring to create appropriate
relocated 8 Branches (Gothatar Kathmandu, Tansen environment for not only capacity development
Palpa, Gorkha Bazar Gorkha, Birat Chowk Morang, of the employees but also ensuring and promoting
Nijgadh Bara, Manmaiju Kathmandu, Hattigauda honesty, professionalism, competency, healthy
Kathmandu and Amar Singh Chowk Pokhara) and working environment, mutual respect, creativity,
converted the Kurintar and Fidim extension counter team work, etc. and its effective implementation.
to branches and started the branch operations. 18 new Currently, the Bank has total number of 1700
employees catering to our customers. services through its 117 branchless banking service
in remote areas where banking services are not
Accordingly, the bank has taken initiative towards accessible. The bank has also provided support
providing skill development trainings and incentives. for collection of revenue with ease to the public in
Our human resources are engaged in in-house as large for the various revenue collection centers in
well as external trainings, which gives them adequate Department of Transport, Department of Industry,
exposure to enhance their professional efficiency. Department of Survey, Ministry of Foreign Affairs
and Traffic Police Office.
During the FY 2017-18 bank’s human resources were
involved in numerous professional development 10. CORPORATE GOVERNANCE
trainings, in which 75 were in-house training, 170
external trainings and 37 international trainings. In We have a robust corporate governance system and
coming days, the bank has already prepared a skill practices in place. The Board of Directors and the
enhancement training programs and aims to take management is always committed for good corporate
forward accordingly. governance practices with zero tolerance. The
members of Board of Directors as well as employees
8. CONTRIBUTION TO NATIONAL ECONOMY this subject to the Code of Conduct, including the one
issued by Nepal Rastra Bank which is being complied
In FY 2017-18, bank has contributed a sum of NRs. in full.
1.70 Billion as corporate income tax and Tax deducted
at Source to the Government of Nepal. This is excluding On the basis of bank’s extended business and other
the Value Added Tax paid by the bank on goods and operating activities internal control and other workforce
services procured by the Bank. Bank, as a financial areas are being further strengthen. Additionally for
mediatory, is playing a vital role in the development further extending the employee’s capabilities, bank’s
of industrial sector, providing employment and organizational structure and officials responsibilities
contributing to national revenue in the form of income are amended as per the necessity. The Audit Committee
and other taxes. of the bank monitors all activities and ensures the
processes and procedures in place are adequate and
9. CORPORATE SOCIAL RESPONSIBILITY operational along with compliance of Nepal Rastra
Bank directives. Good corporate governance practice
I take the pleasure of informing that our bank apart has remained its primary agenda, with a commitment
from business motive, has always remain conscious to operate in a very transparent manner. As directed by
and careful to the society we live in and work with Nepal Rastra Bank, separate unit for governance unit
through the corporate social responsibility. During has been formed and is continuously monitoring the
Financial Year 2017-18, the Bank has contributed governance position of the bank.
Rs. 1.52 Million in the areas of education, health,
banking awareness, natural calamities, environment 11. STOCK DIVIDEND RECOMMENDED
protection etc. To continue our financial literacy
awareness among the general public, we are The Board has together with the profit of the Financial
continuously conducting “Bachat Garau” campaign Year 2017-18 and retained earnings of previous years,
as well. proposed 16 percent bonus shares equivalent to Rs.
1.42 Billion to our valued shareholders. We would like
Similarly, the bank is also contributed in uplifting to bring to your notice that after issue of such bonus
the community of deprived sector through their shares the Issued Capital of our Bank will reach Rs.
involvement in economic activities for which 10.31 Billion. With the development of capital structure,
our small business loan, small agricultural loan we believe we will be able to gain the confidence from
and deprived sector loan has been vital to these all the concerned parties which will indeed support in
community. Likewise, bank has provided banking increasing the business.
The fraction share shall be kept as it is in the name of the bank’s board committee. Shree Suraj Kumar
the respective shareholder till the fraction share is not Shrestha, who was elected from general shareholder
converted into a whole share. group submitted his resignation citing business work
schedule. The resignation was approved by board
Though the tax on dividend to shareholders until two committee on 22nd May 2018. The vacant position
years from the date of merger in accordance with the was filled by appointing Shree Krishna Prasad Sharma
Merger and Acquisition Byelaw, 2073 is exempted, (former Chief Executive Officer of Rastriya Banijya
the Income Tax Act has exempted such tax to only Bank) on 12th August 2018 for the remaining term.
those shareholders who held the shares at the time
of merger/ acquisition i.e on 9th July 2017 from tax We request to approve this appointment made by
on dividend for 2 years from the date of merger / board committee through this annual general meeting.
acquisition. Accordingly we have proposed to collect Along with this, Shree Numnath Poudel (former Chief
the taxes appicable on bonus shares to the share Executive Officer of First Microfinance Development
holders onboarded after the acquisition date and Bank and a Chartered Accountant by qualification)
distribute the bonus shares accordingly. who brings wealth of experience in banking sector is
appointed as an independent director.
We request our shareholders to approve the bonus
share proposed by Board of Directors. 14. ACKNOWLEDGMENT
12. FINANCIAL STATEMENTS AND AUDIT Lastly, I would like to express my sincere gratitude to,
all our shareholders- your patronage over the years
The Consolidated Statement of Financial Position as has been a source of immense strength for the Bank,
at the year ended 16 July 2018 (31st Ashad 2075), our customers perpetually believing in us, Government
Consolidated Statement of Profit and Loss for FY of Nepal, Ministry of Finance, Nepal Rastra Bank,
2017-18, Consolidated Cash Flow Statement, related Company Registrar’s Office, Securities Exchange Board
annexure as well as the Auditor’s Report have been of Nepal, Nepal Share Exchange Limited and other
attached herewith and placed as an integral part of this regulatory bodies for guiding us on the road map of
report. The various details required by Companies Act, progress, all the bank’s employees who have worked
2073 is presented in “Annexure A”. hard for the growth of the bank and the media. I would
like to reiterate our commitment in providing the
We request our shareholders to approve the highest quality services and to provide higher returns
Consolidated Financial Statements of the bank and its to our respected shareholders in the years ahead.
subsidiaries.
We welcome your thoughts and suggestions.
13. CHANGE IN MANAGEMENT AND BOARD
OF DIRECTORS Thank you.
For and on behalf of the Board of Directors
Chairman of the board of directors, Shree Chandra Chandra Prasad Dhakal
Prakash Dhakal promoters group, Shree Pawan Kumar Chairman
Bhimsaria promoters group, Shree Sudarshan Krishna Dated: 11th January, 2019
Shrestha, Shree Suman Pokharel, Shree Krishna
Prasad Sharma from General Shareholder Group and
independent director Shree Numnath Poudel forms
Management Team
Mahesh Sharma Dhakal

Acting Chief Executive Officer
Surendra Raj Regmi Aarati Rajya Laxmi Rana

Assistant General Manager Assistant General Manager
Buddhi akela RAJA ARYAL BHAWANI DHAKAL

Chief Risk Officer Chief Financial Officer Chief Compliance Officer
ANIL JOSHI DEEP CHANDRA REGMI GANESH AWASTHI RANJAN THAPA

Head-Information Technology Head-Human Resources Chief Operating Officer Head-Treasury and
Card & E-banking International Banking
Message from
Mahesh Sharma Dhakal

A strong relationship requires strong partners.

Over the past decade Global IME Bank has met the Services to 146 locations. In addition to this we are
financial needs of our customers with outstanding providing services through 25 extension / revenue
services, value-oriented products, and conveniently collection counters. We have established the provincial
located branch offices. It gives me a great pride to offices in all 7 provinces to cater to the needs of our
report that once again in 2018, Global IME Bank widespread customer base. Our 3 representative
Ltd was able to continue the tradition of generating offices in India, Australia and UK are reaching to our
consistent results, as it has done over the past years. customers internationally and we plan to continue to
I share this achievement with all our investors, expand such services in years to come.
valued customers, devoted team members and all the
concerned stakeholders. Strength and Strategy
Performance of the Bank We at Global IME continue to focus strategically on

better customer service, development and retention
During the year Net Interest Income (NII) increased by of quality human resources, innovation and initiation
5.80%, similarly fee based income and other operating on exploring technology embedded products/services.
income increased by 11.59%. The growth in deposit Our customer’s trust on us has helped to crossed
was 4.51% and our total deposit at the end of FY 2017- a million mark on customer base. We are among
18 was Rs. 106.51 Billion as we focused on ensuring the few banks that has been entrusted by the Nepal
a change in the deposit mix with lesser concentration Government for revenue collection and conducting
of the term deposit and more concentration on saving government transactions. We shall continue to also
deposit. The growth in loans and advances was 15.53% focus on revenue maximization with cost minimization,
and our total loans and advance at the end of FY 2017- better risk management and reduction in NPAs.
18 was Rs. 93.37 Billion. We continue our focus on high
credibility customers, which can be visible through I would like to reiterate our focus on delivering
our decrease in Non-Performing Assets that has come high sustainable earnings growth and return to our
down to 0.77% from 1.60% in this fiscal year. shareholders. We shall move ahead with clear purpose
and are convinced that a strategy that prepares us today
Total operating expenses and employee expenses to meet the demands of the future on environmental
(excluding annual staff bonus) grew by 30.7% and performance, profitability and social responsibility, is
30.4% respectively as compared to the 9.3% in a winning strategy.
operating expenses and 19.1% in employee expenses.
This was mainly due to the rapid branch expansion Appreciation
leading to increased staff personnel. In achieving yet
another milestone we have been able to report a net Our achievements during 2017-18 are evidence of the
profit of above 2.1 Billion. Return on Assets and Return dedication and professionalism of the employees of the
on Equity remains slightly on lower side to 1.67% Bank, whose ingenuity, experience and customer focus
and 15.48% respectively as compared to 1.75% and continues to drive our results. I take this opportunity
16.65% in previous year as a result of increase in equity to thank our efficient Management Team and Global
base due to previous year’s final bonus distribution. IME Team for their constant dedication and support.
I would also like to express my gratitude to the
Network reach Chairman and the members of the Board of Directors
whose guidance and support strengthens our business
The Bank is committed towards customer excellence. strategy, Nepal Rastra Bank and all other concerned
During the year, we expanded our network to 137 government agencies and regulatory authorities. I
branches i.e. additional of 21 branches. Our ATM would also like to thank our valued customers for their
centers reached to 142 locations i.e. additional of 31 trust and belief towards us.
ATMs. We have increased our Branchless Banking
26
Chairman and Board of Directors
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
Annual Report 2074-75
Credit Risk Operations Risk Market Risk

Management Unit Management Unit Management Unit
Operation Reconciliation Information

Risk Security Risk
People Process System External

Event
Treasury Market Liquidity Interest Rate

Middle Office Risk Risk Risk
Global IME Bank Limited
,
Annexure "A"
AS REQUIRED BY SEC 109 OF COMPANIES ACT 2063, REMAINING POINT WISE
PARTICULARS OF DETAILS TO BE INCLUDED SEPARATELY IN BOARD’S REPORT
1. Information on shares forfeited by the Bank 5. Information regarding the purchase and
during the year: ownership of shares by the Directors and
high officials of the company, and further
There is no forfeiture of share during the Fiscal information received by the company
year 2017-18. from the directors if involved in the share
transactions.
2. Financial positions of the Bank and its
subsidiary in the previous year ended: The Directors and members of management
team are not involved in the share transaction of
The detailed financial position of the bank the company. Management team has not taken
and its subsidiaries have been provided in the any shares apart from the ones separated for
Director’s Report and Audited Consolidated the employees. Shareholding patterns of the
Financial Statement for the year 2017-18. The Directors are as follows:
Bank’s Performance has also been highlighted
in the Board Report for FY 2017-18.
No. of
S. No. Name of Shareholder Representative Shares
3. Major transactions carried out by the Bank
and its subsidiary during the financial year 1 Mr. Chandra Prasad Dhakal Promoter, IME 5,307,306
Investment P. Ltd
2017-18, and any significant changes in the
business of the Bank during the period: 2 Mr. Pawan Kumar Bhimsaria Promoter 176,028
The major transactions carried out by the 3 Mr. Sudarshan Krishna Shrestha General Shareholder 316
bank and its subsidiary and the change in
transactions is provided in the attached 4 Mr. Suman Pokharel General Shareholder 9,111
Consolidated Statement of Financial
5 Mr. Krishna Prasad Sharma General Shareholder 839
Position, Consolidated Statement of Profit
or Loss, Consolidated Statement of Other 6 Mr. Numnath Poudel Independent Director 1,724
Comprehensive Income, Consolidated Cash
Flow Statement, Statement of Changes in
Equity, Significant Accounting Policies and 6. Information provided to the company by
Notes to Accounts. any directors or his close relatives on their
personal interest in the company related
4. Information provided by key shareholder to agreements in the previous fiscal year.
the company during the previous fiscal year.
No such information have been provided to the
No such transaction noted. company.
7. If company has purchased its own shares, Rs. 352,000/-has been presented to the audit
the reason for purchasing its own shares, the committee members. Audit committee in regular
number of shares purchased and the amount intervals discusses internal and annual audit
and also the payment by the company for report prepared by Internal Audit Department
such kind of purchase details. and presents it to the Board of Directors. During
the review year, Audit Committee meeting
No such transaction took place. was held 19 times with different agenda. As a
result, the committee has given suggestions to
8. Distribution of Profit: the Board of Directors on various areas such as
financial position, internal control operation,
The bank has recommended distributing bonus legal compliance and risk minimization.
shares of Rs. 1,422,140,132.32 (i.e. 16%) from its
net profit of current year and retained earnings. 11. Payments due to the Bank from any Directors,
Net profit has been transferred to various Managing Director, Chief Executive or the
statutory reserves and funds as directed by Nepal key shareholders of the Bank and their
Rastra Bank and such distribution has been close relatives, or from any firm, company or
shown in the financial statements accordingly. corporate body in which 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 2017-18 are as follows: or corporate body in which they are involved in.
Particulars Amount 12.

Remuneration, allowances and facilities
Staff Expenses * 1,314,224,299 provided to the Directors, Managing Director,
Chief Executive Officer and other official of
Other Operating Expenses 1,185,004,910
the bank.
Total 2,499,229,209
The amounts paid as remunerations, allowances
* Staff Expenses include provision for annual and facilities to the Directors, Chief Executive Officer
bonus amounting to Rs 291,197,644.00 and other office bearers are as provided below:
10. Details on the members of the Audit a. Chairman and Board members:
Committee; salary, bonus and facilities
provided to the members; work carried out Chairman of the Board of Directors and
by the committee and any suggestions given: the Board members get Rs. 11,000 and Rs.
10,000 respectively as meeting allowance
The Bank has Audit Committee comprising of per meeting and the sub-committee
the following members: members get Rs. 10,000 as meeting
Mr. Sudarshan Krishna Shrestha - Coordinator allowance per meeting. Sum of Rs. 10,000
Mr. Suman Pokharel – Member per month is provided to directors for
Mr. Sushil Shrestha - Member Secretary communication and travelling facilities.
(Chief – Internal Audit Department)
During the fiscal year a sum of Rs 1,032,000
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 627,000 for
In this current fiscal year, a total allowance of sub-committee members (including audit
committee members). Rs. 543,258 has fee of Rs 1,290,000.00 and legal advisory fee
been incurred as other expenses during of Rs. 1,290,000.00 during the year.
the board meeting and Rs. 1,975,018 has � Remuneration and facilities so provided has
been incurred for participation of board been paid only after deducting income tax
members in different meeting / conference and TDS as per Income Tax Act.
on behalf of the Bank. � Other facilities and allowances have been
provided as per the company’s employee
b. Chief Executive Officer, Company bye- laws and any decision made by the
Secretary and other officials: board of directors.
i. The detail of salary and allowance paid to d. During the fiscal year total employee
CEO are as below: expenses including the annual staff bonus
provision is Rs. 1,314,224,299.00.
Particulars Amount
Salary 8,348,415.52
13. Dividend yet to be collected by the
Shareholders:
Allowance 3,936,517.25
Provident Fund 1,501,769.38 The dividend yet to be collected by
Leave Encashment 2,814,109.59 shareholders is Rs. 31,060,174.00.
Dashain Allowance 1,075,000.00
Others 2,017,459.49 14. Details of property purchased or sold u/s
Total 19,693,271.23 141 by the Bank during the year:
ii. The performance based salary provided to a) The details of assets required by the bank
the CEO is as follows: such as vehicle, office equipment, capital
expenditure, leasehold improvement
a) Employee Bonus- Rs. 4,603,666.66 purchased and sold has been shown under
b) Facility as per existing condition- None schedule 4.13 of the attached financial
c) Others- None statement.
b) The bank has purchased or sold the assets
iii. Other Facilities as per the prevailing market price and the
procedures prescribed in the financial
a) Telephone & Mobile Expense policy of the bank.
Rs. 24,082.56
b) Water & Electricity- Rs. 41,988.89 15. Details of transactions between related
c) Repair and maintenance of vehicle companies u/s 175.
Rs. 29,765.71
d) Fuel- Rs. 143,438.00 The details of transaction between the related
e) Security Guard- Rs. 543,078.00 companies have been provided in Note 5.7 of the
financial statement published with this annual report.
c. Other facilities
16. Details to be disclosed as per the Company Act
and other related acts regarding board meeting :
� For staffs up to the position of assistant
manager, salary, allowance and provident N/A
fund totaling to Rs. 134,110,578.42 and in
addition to this, fuel and mobile facility is 17. Any other issues:
provided as per the bank’s rule.
� Company Secretary has received consultancy N/A
DISCLOSURE RELATED TO SUB RULE (2) OF RULE 26 OF SECURITIES REGISTRATION AND ISSUANCE REGULATION, 2073
1. Report of Board of Directors: to increasing challenges in the operational risk

Included in the Annual Report management.
� Increasing Operation Cost.
2. Report of the Auditors: � Increasing staff and related cost.
Included in the Annual Report
External
3. Audited Financial Details:
Included in the Annual Report � Negative Impact in Industries due to political
instability.
4. Details relating to Legal Action � Volatile Liquidity in the Market.
a. Law Suits filed by/against the Bank: � Competitive banking market.
No such except business cases. � Increasing NPL in baking sector
b. Strategy followed by the management in solving
b. Law Suits filed by/against the promoters/
such problems and challenges:
directors involving charge of regulatory
violations or criminal offences: � Branch expansion and remittance promotion
No information received by the Bank. initiated with a view to target low cost deposits
and business growth through large network.
c. Case filed against any promoters/directors � Targeting good quality loan customers.
for financial fraud: � Effective management of Bank’s assets and
No information received by the Bank. liabilities.
5. Analysis of share transaction and progress of � Regular In-House and outsourced training to
organized institution: enhance work efficiency of the staffs.
� Good industrial relations.
a. Management view on share transactions of � Regular monitoring and analysis of operating
the bank on Nepal Stock Exchange: expenses.
Since the share prices are determined by open � Strict monitoring of expenses and diversification
market operations at Nepal Stock Exchange of risk asset portfolio for higher yield.
under the supervision of Securities Board of
Nepal, management has no comment on the 7. Corporate Governance
same. � The Bank has been fully complying with the
directions, guidelines issued by NRB regarding
b. Maximum, minimum and closing share
corporate Governance.
price of organized institution including total
� Regular Central Management Committee meetings
transacted number of shares and transacted
to review progress in various areas of operations.
days during the Year 2074-75 (as per the
� Bank’s Internal Audit Department has been
table):
strengthened.
Maximum Minimum Closing Total Transacted Total Number
Quarter (Months) Share Price Share Price Share Price Number of Shares of Trading days
I Quarter (Shrawan- Ashwin) 410 358 386 1,055,994 56
II Quarter (Kartik- Poush) 399 309 315 1,266,406 57
III Quarter (Magh- Chaitra) 337 285 311 1,046,173 56
IV Quarter (Baisakh- Ashad) 344 275 290 1,306,980 63
6. Problems and Challenges � Board of Directors and its Committees’ meeting are
a. Problems and Challenges Faced: held on regular basis.
Internal � ALCO and Risk Management Committee (Operation,
Credit and Market) meetings are held regularly.
� Low interest spread due to high competition. � Board of Directors and Management are committed
� Increase in the business and branches leading to maintain corporate governance.
CORPORATE GOVERNANCE
WE STRIVE TO DEVELOP A CULTURE OF OPENNESS AND TRANSPARENCY TO EMBED
OUR GOVERNANE AND CONTROL PROCEDURES THROUGH THE BUSINESS. 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.
Corporate governance is an internal system The Board of Directors is responsible for the overall
comprising of governance structures, policies, leadership of the Bank through oversight and
processes, systems and people which serves the guidance on key strategic and risk issues. It plays
interests of its shareholders and other stakeholders a pivotal role in setting up the system of corporate
by directing them and directing management governance within the Bank to ensure safe guard of
activities with good business proficiency, integrity policies and procedures, ensuring that Management
and neutrality. It is the institution that should seek conducts its business operations with integrity
to inculcate a system of good corporate governance. and in accordance with best corporate governance
practices. It ensures that in carrying out its duties,
We believe that good corporate governance is the Management complies with relevant laws and
cornerstone of the Bank’s success. The Bank strives regulation and risk management while balancing the
to create and enhance long-term sustainable value interests of the various stakeholders.
for stakeholders through ethically driven business
practices. Through the Board, the Bank has put in The Board of Directors is chaired by an independent
place systems to ensure that the highest standards nonexecutive Chairman and is composed of five
of corporate governance are maintained at all levels non-executive members who have a wide range of
and ensure compliance with the Nepal Rastra Bank’s skills, experience and independent judgment. Their
Regulations on Corporate Governance, Banks and skills, competencies and academic qualifications
Financial Institutions Act, Companies Act, Securities can be found on this Annual Report. The Chairman,
Exchange Board of Nepal, directives and circulars who has overall responsibility for the Board,
of Nepal Rastra Bank, Accounting guidelines from ensures overall leadership and long term success of
Accounting Standard Board of Nepal and other the Bank.
national and international bodies devising policies
on Corporate Governance. The Board has delegated the authority for day-to-
day management of the Bank to the Chief Executive
THE BOARD OF DIRECTORS Officer of the Bank. The Chief Executive Officer
has overall responsibility for the performance of
The Board of Directors of the bank is the apex body the business and provides leadership to facilitate
to approve plans, policies and set decisions and successful planning and execution of the objectives
has ultimate responsibility for governance. All the and strategies agreed by the Board. For the successful
member of Board of Directors fully complies with management of the Board and their functions, the
code of conduct as per Directive 6 of Central Bank Board is guided by a Board Charter which sets out
Unified Directive and prudent practices. their powers, roles and responsibilities. The Board
meets on a quarterly basis or more frequently as RELATIONS WITH THE SHAREHOLDERS
the business demands. The Board functions either
as a full Board or through various committees The Board of the bank always encourage active
constituted to oversee specific operational areas .In participation of shareholders in every Annual General
addition to the quarterly meetings, the Board has Meeting. Meeting has been a very good platform
appointed four subcommittees to assist in achieving for the board to interact with the shareholders in
its mandate as per the Central Bank requirements. communicating strategies and objectives, clarifying
various concern among the shareholders and
COMMUNICATION WITH THE BOARD sharing collective vision.
Bank has a culture of open and relevant communication BOARD COMMITTEES

between the Board of Directors and the Bank’s
Management Team. The Board receives reports and To ensure efficiency within the governance
presentations from coordinators of various Board structure and to assist carry out its independent
Level Committees and the CEO. Such reports include oversight function, the Board has delegated certain
key issues related to credit exposures, risk portfolio, responsibilities to Board’s Committees. Pursuant
liquidity, financial performance, business expansion, to Section 7 of Directive No. 6 of Central Bank’s
audit and compliance. The Board regularly reviews Unified Directive, Bank has formed four Board
management performance against approved budget Level Committees, each with terms of reference
targets and set goals. to support the Board in performing its functions.
The Board is kept up to date on the deliberations
All Board Level Committees have a member secretary and recommendations of the Committees through
from senior management team who is engaged in reports from each of the Committee Chair at Board
the concerned area of business within the Bank. For meetings. All Directors have access to the services of
effective discussions of the items in agenda, other the member secretary from senior level management
members from the bank’s management, whose in relation to discharging their duties as a director,
responsibilities relate to the matter in agenda, are or as a member of any
also invited as required in the Board Level Committee
meetings. They may seek independent professional Board Committee.
advice wherever required.
Following board committees were in function
Directors also make offsite visits to branches to during the year:
obtain a better understanding of local business
conditions, participate in business promotion and 1. Audit Committee
corporate social responsibility related activities and 2. Risk Management Committee
interact with customers and employees. There is the 3. Employee Benefit Committee
practice in the bank that Board Members are also 4. Anti-Money Laundering and Counter
invited in the branch level performance meet of the Financing of Terrorism Committee
bank.
AUDIT COMMITTEE
CHANGES IN THE BOARD
The Committee has been functioning and
An Independent Director, Mr. Krishna Prasad Sharma discharging its duties and responsibility in line
has been added to the Board of Directors with effect with the provisions laid down in Section 7 of
from 12th August 2018 after the resignation of Mr. Directive 6 of Central Bank’s Unified Directive and
Suraj Kumar Shrestha on 22nd May 2018. The same Sections 164 and 165 of the Company Act 2063.
has been approved by the 12th AGM. This is the principal Board Committee charged with
overseeing the Bank’s financial reporting policies RISK MANAGEMENT COMMITTEE

and disclosures to ensure that they are produced in
accordance with International Nepalese Financial The mandate of the Risk Management Committee is to
Reporting Standards and meet all the necessary ensure that the Bank’s enterprise risk management
regulatory requirements. The Audit Committee is policies and procedures are updated to ensure that
responsible for ensuring that the Bank’s internal the risks are properly tackled, effectively controlled
controls and procedures are adequate and adhered and managed. Risk Management Committee is
to, making recommendations where necessary. constituted in line with the spirit of Risk Management
Guidelines and Unified Directives of Central Bank.
Committee comprises of two independent non- The guidelines highlights on risk governance and
executive board members who meet frequently identifies the need of a strong risk management
as business demands. Chief Internal Audit acts as framework, well defined risk management processes
member secretary of the committee with Director and effective risk assessment and measurement
Mr. Sudarshan Krishna Shrestha as the Coordinator mechanism. Director Mr. Numanath Poudel is the
and Director Mr. Suman Pokharel the member of the Coordinator and Directors Mr. Sudarshan Krishna
Audit Committee. Shrestha and Mr. Pawan Kumar Bhimsariya are
members of committee. Bank’s Chief Risk Officer
The committee meeting was held nineteen times to (CRO) is the Member–Secretary of the committee.
discuss Internal Auditor’s reports of branches and During the review period a total of 8 meetings were
corporate departments, Central Bank’s Inspection held to discuss on various issues.
Report and Statutory Auditors Reports and provided
necessary instructions to the Management and TERMS OF REFERENCE
submitted its minutes to the Board for its perusal.
The committee reviews the risk associated with
TERMS OF REFERENCE business activities, risk appetite, strategies adopted
by the management for managing the risk, policy
Audit Committee is responsible for setting level matters and recommends to the Board.
appropriate measures to safeguard Bank’s assets Risk Management Committee oversees that risk
and in this regard determining the effectiveness management framework remains compliant with
and efficiency of internal control systems; the regulatory requirements and appropriate risk
reviewing and recommending for Board’s approval management policies and procedures are in place;
on the periodical financial statements, statement approval and monitoring of limits in respect of credit,
on internal control, related party transactions market, operational and other risks; carrying out risk
and recommendation for appointment of external related surveillance function on behalf of the Board
auditors. It is also required to receive, review and and ensuring that the Risk Management Committee
present to the Board management letters issued by is kept abreast of changing risk management
the external auditors; consider internal audit reports techniques through effective trainings programs.
and submit findings to the Board that require its
attention; ensuring effective coordination between EMPLOYEE BENEFIT COMMITTEE
internal and external auditors. It also reviews the
scope of internal audit function. Determination and Employee Benefit Committee of the Bank is formed
monitoring compliance to statutory / regulatory in line with provisions of NRB Directives of Central
requirements and best practices of corporate Bank. The Committee has been functioning and
governance and taking up any other matter on the discharging its duties and responsibility in line with
directions of the Board are also within the scope of the provisions laid down in Annexure 6.1 of Directive
the Audit Committee. 6 of Central Bank’s Unified Directive. Director Mr. Mr.
Suman Pokharel is the co-ordinator of the Employee development, performance appraisal, rewards/
Benefit Committee. Human Resources Head is the punishment and labor policies.
Member-Secretary of the Committee. During the
review period a total of 6 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 approval
TERMS OF REFERENCE to Board of Directors.
To assist Board of Directors to prepare ANTI-MONEY LAUNDERING AND COUNTER

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

We Global IME Bank believe that we must be at the forefront of the country’s social
economic transformation not only through the banking business but also in giving back
to the communities in which we work. As such we have a clear CSR strategy focusing
on four pillars of education & sports, financial awareness, community conservation
and promoting community health.
As a public entity of the country for the past twelve

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
through our socio-economic development activities
and our self-belief in serving back the communities
of our own. We proactively identify opportunities
arising from key social, developmental and business
issues when formulating our CSR programs, rather
than just reacting to requests from charitable
causes. We have a CSR Committee which implement
the Bank’s CSR strategy. The Committee is composed
of four members who sit at least once a month to
evaluate project proposals brought to the Bank. Contribution to build the infrastructure of
Through the CSR Committee, we ensures that, Nisibhuji Janata Multiple Campus, Burtibang
engaged projects have minimal adverse impacts on Baglung.
the environment and that those with potentially
major adverse environmental and social impact are Sponsorship to National Cricket Player Mr.
accompanied by adequate mitigation measures. Dipendra Singh Airee.
Our contribution to the community in large are Scholarships to students studying in Kalikot
highlighted below: district
EDUCATION & SPORTS Scholarship to economically deprived

students studying in class 1 to 10 in
We believe that education and sports forms base association with PABSON and HISSAN.
to all the future development. In promoting the
education and sports we have left no stone unturned. Contribution to Madan Bhandari Foundation,
Our contribution in promoting education and sports which promotes education and literacy and
include: art in all parts of Nepal.
COMMUNITY HEALTH Cycle Rally for financial Literacy through
program organized by Nepal Rastra Bank
We believe that with sound health, community
can always thrive economically and socially. We at Financial Literacy Expo in Burtibang Bazar
Global IME Bank have contributed to development Baglung
of community health in ways below:
COMMUNITY CONSERVATION
We are assisting in protecting our community in

following ways:
Contribution to Prime Minister Disaster

Relief Fund
Contribution of CCTV Cameras to

community police in Panchthar
Contribution in protecting our culture by

donating to Kumari Tol Sudhar Samitee.
Eye Check-up and Health check-up camp at
Parbat, Siraha, Baglung and other places. Providing dustbin for cleaning of RARA Lake
and Begnas Lake.
Blood Donation Campaign on the occasion of
12th Anniversary of Bank in association with Apart from all the contribution listed above we do
Nepal Red Cross Society. not limit our focus in developing the CSR activities
in these four pillars only. We are always responsive
Sticks to visually disable person in to the need of community in every possible needs.
association with Fellowship Society Nepal We have contributed to Image Badhi Pahiro Rahat
Kosh for the flood victims affected in Siraha, Saptari,
FINANCIAL AWARENESS Morang and Sunsari districts as our support to
recovery from the natural disaster.
We are promoting the financial awareness programs
from all the branches and our BLB agents as well. Bank will always be close to the community
Apart from these we have conducted the following: development in near future so as to be always
associated with the communities which gives us so
Walkathon for financial literacy on 12th much to work.
Anniversary.
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.
The lending product portfolio includes CORRESPONDENT NETWORK

commercial loan products such as demand The bank has been maintaining harmonious
loans, cash credits, overdrafts, trust receipts correspondent relationships with above
and term loans, whereas a complete portfolio 60 different international banks from various
of personal and retail credit products are countries to facilitate trade, remittance and
also provided by the bank. Non-fund based other cross border services. Through these
products such as bank guarantees and letters correspondents the bank is able to provide
of credit are also available to the bank’s services in any major currencies in the world.
customers. GIBL's focus has been stretched The bank also maintains its extension offices
out to financial supports to Corporate and in India and Middle East to assist in the
Infrastructure Sectors with preference remittance of funds from overseas Nepalese
on renewal energy, SME, Retail and Micro workers. These services are soon to be
Financing Loans. In continuation of living expanded to South Korea.
with its vision “The Bank for All”, the bank has
launched Agricultural Loan in co-ordination BRANCHLESS BANKING
with food processing industries as about As part of financial inclusion, Global
70% of the Nepalese population depend on IME Bank has addressed new strategy of
agriculture for their livelihood. launching branchless banking service in
the remotest parts of the country where
VALUE ADDED SERVICES presence of financial institutions are very
In addition to the above, the bank also less in number or not at all. Within the short
offers a variety of value added services to its duration of 3 years bank has already launched
customers. The bank has also been providing 133 branchless banking services catering
Internet/Mobile Banking Services (through more than 22,000 customers on their daily
its website www.globalimebank.com), SMS deposits and withdrawals. Our branchless
Banking Services and SMS Notification banking locations also offer micro lending
Services among other such value added facility to small farmers and businessmen.
proposition to its customers. The bank has
also been issuing VISA debit and VISA credit BRANCH NETWORK
cards to its customers since 2009. GIBL is The bank is now operating 136 branches, 8
the only bank to provide SMS alert to its extension counters and 17 revenue collection
customers on credit transactions and credit counters spread throughout Nepal. All of the
card transactions besides other transactions. bank's branches have been established as
full service outlets that offer a large range
GIBL has introduced "Global Smart" an of banking services to its customers. The
advance banking application with customized bank also operates 142 ATMs throughout
features on updated format for financial the country strategically placed for the
transaction through SMS and Internet convenience of customers.
Connectivity.
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 FEATURES:
account opening form and a government issued Free mobile banking/Viber banking for the
photo-bearing ID card. In addition, the bank will first year.
deposit Rs. 100/- (tax applicable) after successful Free VISA Debit Card for the first year
opening of the account. Free Internet banking
Free cheque book
OTHER FEATURES: Free ABBS
Minimum Balance: Zero 50% discount on annual locker charge
Free cheque Book on demand (upon availability)
Visa Debit card on request. 50% discount on credit card issuance fee
Mobile banking service on request (subject to eligibility criteria)
Free internet banking service on 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/-.
Free mobile banking/Viber banking for the Accidental insurance coverage of up to Rs. 5
first 1 year. lakhs.
Free DEMAT account opening (first year) Free mobile banking/Viber banking (first
Free Mero Share facility (first year) year charge waiver).
Free VISA Debit Card for the first year Free internet banking.
Free ASBA Facility Free ABBS.
Free Internet banking 50% discount on VISA Debit Card issuance
Free cheque book charge.
Free ABBS 50% discount on Annual Locker Charge
50% discount on annual locker charge (upon availability).
(upon availability) 50% discount on Credit Card issuance fee.
50% discount on credit card issuance fee 50% discount on issuance of Balance
(subject to eligibility criteria) Certificate.
IPO/FPO information and notification via
Viber
GLOBAL GOLD SAVING ACCOUNT Free Cheque Book

It is a saving deposit product intended for people Free VISA Debit Card for the first year.
looking for better returns on saving accounts. Mobile Banking Service, Free for first year
Free Internet Banking Service
FEATURES: Locker Facility, 50% discount on Annual
Minimum balance Rs. 20,000/- Charge
Free mobile banking service for the first Free ABBS facility
year. Statement email every month in registered
Free Internet banking service. 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: Nil
GLOBAL ABHIBHAWAK BACHAT KHATA Free Cheque Book
Global Abhibhawak Bachat Khata is a saving Free ABBS (Any Branch Banking Service)
product targeted specially for parents/guardians Mobile Banking with alert of every
with school/college going children. The customers transactions and bill payment features.
(parents/guardians) with this saving account can Free Internet banking
directly make payment of their children’s fees Free Visa Debit Card for the first year
into the school/college’s account maintained with
us through mobile/ internet banking or counter GLOBAL REMITTANCE BACHAT KHATA
deposit. Although targeted specially to the parents, This product is designed for people who are looking
college-going students who are 16 years and above to travel foreign country for working purpose.
of age, may also open an account under this scheme. They can open account here in Nepal and obtain
an account number so that they can use the same
OTHER FEATURES: 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: Nil
Payment of school fee through Global Free ABBS (Any branch banking service)
Smart/Internet banking. Free Internet Banking
Waiver on joining fee for Visa debit card. Mobile Banking Facility
Free ABBS Visa Debit Card
Locker facility with 30% discount on annual Free Cheque Book
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.
FEATURES: waived for first year

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

FEATURES Competitive Interest rates:
Minimum balance – Rs. 100 Loan against Fixed Deposit of own bank:
Free Cheque Book Plus 1.5% p.a.
Free Internet Banking Flexible tenor: Any period within the
maturity period of the FD.
FOREIGN CURRENCY SAVINGS DEPOSIT ACCOUNT Financing up to 90 % of the fixed deposit.
People having income in foreign currency and
wishing to maintain deposit in foreign currency are GLOBAL MORTGAGE LOAN (PERSONAL LOAN)
the target customers for this product. !! Global Mortgage Loan/ Global Personal Loan
is provided to suffice your personal financing/
FEATURES: business requirements such as for financing your
USD Savings Account: Interest @ 0.75% p.a., long vacation plans, buying home equipment,
Minimum balance requirement: USD 100.00 electronics or any other unexpected needs. !!
EUR Savings Account: Interest @ 0.75% p.a.,
Minimum balance requirement: EUR 100.00 PURPOSE
GBP Savings Account: Interest @ 0.75% p.a., Financing your Personal/ Business needs
Minimum balance requirement: GBP 100.00 Swapping loan from another bank / financial
institutions
GLOBAL GENERAL FIXED DEPOSIT
This product is designed to allow general public and GLOBAL EDUCATION LOAN
institution who wish to earn higher interest rate by !! Global Education Loan is provided to suffice
keeping their fund in fixed deposit in the bank. 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. 10,000.00 students are met without any hassles. !!
GLOBAL CURRENT DEPOSIT PURPOSE

This product is designed to allow institutions and To provide education cost of the student to
individuals to deposit their fund in the bank for safe study abroad or within the country in or
keeping. There are no restrictions for deposit and above +2 in any streams.
withdrawal of funds in this account. The education cost includes tuition
fee, admission fee, ticket expense,
FEATURES: accommodation expense and stationary
Minimum Balance: Rs. 5,000 expenses.
GLOBAL CONVERTIBLE FOREIGN GLOBAL HIRE PURCHASE LOAN

CURRENCY CURRENT DEPOSIT SCHEME !! GIBL Hire Purchase loan enables you to purchase
FEATURES: commercial vehicles such as heavy and light
Minimum Balance: Foreign Currency 100 commercial vehicles especially truck, bus, microbus
excavator etc.!!
LOANS AND ADVANCES
CONSUMER/ PERSONAL LOAN PURPOSE
!! Financing your personal and business needs!! Purchase of new vehicles
Swapping Loan from other Bank or financial Bond / Advance Payment Guarantees to
institutions facilitate existing and new businesses
GLOBAL AUTO LOAN FEATURES AND BENEFITS:

!! Our Auto Loan with its all-inclusive features is the Easy Access and prompt decision
ultimate solution to your financing requirements. Non-endowment life insurance policy of
With its simple documentation process coupled with borrower/guarantor up to the loan amount
our speed of delivery and flexibility, you can drive of Rs. 0.5 million assigned to the bank. –
your vehicle today itself- be it brand new or used. !! Optional and to be decided by the borrowers
Premium borne by Bank
PURPOSE Flexibility in collateral requirement
Purchase of New Vehicle
Swapping loan from other Bank/Financial ELIGIBILITY:
Institutions Small business in the vicinity of the branch
Financing on used vehicles as the case Firm registration
may be depending upon the analysis of Domicile of locality
repayment capacity of the borrower. Borrower/Guarantor should be eligible for
insurance coverage.
GLOBAL HOME LOAN Should not be exposed to other Banks/FIs.
!! Helping you realize your dreams!! Female member of the household to be
preferred.
PURPOSE Joint application may be considered.
Purchase of a plot of land and construction
of residential building. DOCUMENTS REQUIRED:
Purchase of Individual houses / Residential Loan Application Form and Insurance Form
apartments. dully filled and signed.
Purchase of Bungalow / Apartment Photocopy of citizenship certificate of
constructed by builders/ developers applicant, guarantors(s)
Renovation, modification, extension of Passport size photographs of applicant,
existing building guarantor(s)
Swapping from another bank or financial Name of the family members
institutions Location map of the residence and business
premises
GLOBAL SMALL BUSINESS LOAN Multiple banking declaration
Global Small Business Loan also gives you the Photocopy of Firm Registration if applicable
comfort of Insurance while fulfilling your business/ Medical checkup report of the client as
financial need. required by Insurance Company and other
documents as required
PURPOSE: Other documents stipulated by the Bank
Banking facilities for those who do not have from time to time
access facilities to banking services
Providing all kind of financing facilities with SME LOAN
hassle-free processing and documentation !! Flexible financial solutions for business operation
formalities and expansion. !!
Working capital for existing / startup
businesses GLOBAL SMALL BUSINESS LOAN/ SMALL
Term loan for existing and new business AND MEDIUM ENTERPRISES LOAN
Supplier Credit / Bid Bond / Performance Our SME Loan enables you to meet your unique
business requirement. SECURITY
Primary security: Hypothecation of stocks,
PURPOSE: assignment of current assets, bills and
Financing for small business facilities and receivables of the business.
commitments Secondary Security: Acceptable Fixed
Working capital financing Assets Collateral.
Financing term loans and leases e.g. Auto
loan, hire purchase etc. DOCUMENTS REQUIRED
Swapping of loan from other banks and Registration Related Documents:
financial institutions Copy of registration certificate issued
Financing for capital expenditure (in the by Company Registrar’s office/ office
form of Fixed Term Loan) of commerce / office of small & cottage
Financing for trade related facilities like industry & PAN Certificate.
LC/TR and non-funded facilities like bank Copy of Article of Association.
guarantee etc. Copy of Memorandum/partnership deed as
applicable.
FEATURES AND BENEFITS: Copy of TAX Registration/renewal
Competitive premium rates certificate.
Fast approval process In case of requirement of specific permit/
Prompt services. license to operate the business, same should
Facility available in all branches be obtained from the concerned ministry/
Flexible tenor: Maximum up to 10 years on department.
installment basis for term loan and 1 year Share Holding pattern certificated by
for working capital loan. Company registrar’s office.
Counseling to help better financing by our
Relationship Managers throughout the COLLATERAL / PROPERTY RELATED DOCUMENTS:
process Copy of Ownership Documents of property
(Lalpurja).
ELIGIBILITY: Copy of Land Revenue Payment Receipt
Small and medium scale industries (carpet, (Tiro Rashid) - most recent.
garment, pashmina, handicraft etc); Trading Copy of ownership transfer document
sector (wholesaler & retailers/distributors, (Rajinama/Bakaspatra)
import and exporters), service sector Cad-astral map (blue-print map).
(cargo/ freight forwarders, travel/ tour/ Certification of 4 corners (Chauhaddi) from
ticketing agencies, hospital/ polyclinics, ward office.
educational consultancies etc.) and any Copy of Building drawing approved by
other sector concerned authority ;building construction
Firm/ company owned by Nepalese completion certificate (in case of Building)
individual registered in concerning Any other documents related to property as
government authorities / municipality / applicable.
VDC.
Minimum 2 years of profitable operation or OTHER DOCUMENTS:
the new business to be established by the Certified true copy of Board Minute to
key person who has minimum 2 years of obtain loan.
experience in the similar business. Citizenship & photographs of directors/
Swapping of loan is subject to the proprietors/partners and personal
satisfactory debt servicing to concerning guarantors.
banks/financial institution Loan application firm duly filled and signed
in standard format of the Bank. to finance variable working capital requirement

Financial statement of last three years of businesses. The borrower shall be allowed to
either audited or management prepared overdraw his/her current account with prescribed
and projected financial statement for at limit and stipulated time period offered by the
least next 3 years. For term nature loan, competent authority. The borrower can deposit
projected financial to be at least for five any amount in this account. Thus, the balance will
years be fluctuating due to withdrawal and repayment of
Name of sister concern if any money by the borrower. Overdraft will generally be
Multiple banking declaration granted to the businessmen for the fulfillment of
Other documents stipulated by the Bank their short - term credit needs not exceeding 1 year
from time to time. tenure.
CORPORATE LOAN FEATURES AND BENEFITS:

!! Financing to help you maximize business growth!! Financing 70% of the working capital
requirement
FUNDED LOAN Tenure: 1 year
!! Global IME Bank offers different Industrial/ Renewable based on the transactions,
Business Loans to suffice financing requirement of repayment and requirement of the client
different kinds of organizations. !! Counseling to help better financing by our
Relationship Managers throughout the process
Followings are the different funded facilities offered Loan processing fee: 1.50% of the loan
by GIBL: amount
FIXED TERM LOAN IMPORT CREDIT: TRUST RECEIPT (TR) LOANS

Fixed term loan is granted for industry to finance TR loan is a short period loan booked to make
fixed assets whose gestation period is high. payment for goods ordered by issuing LC through
Global IME Bank Limited. Trust Receipt Loan is
REPAYMENT PERIOD: associated with import Letter of Credit only. This
3 – 15 years (Infrastructure period) is an arrangement under which credit is allowed
3 – 7 years (Other projects) against trust receipts and imported goods remain
in the custody of the importer. The borrower has to
Repayment Schedule: Repayment on installments execute a trust receipt in favor of the bank declaring
over the period of loan that he holds goods imported with the Bank’s
credit in trust of the bank. TR is extended up to the
WORKING CAPITAL LOAN maximum tenor of 120 days.
Working capital loan will be granted to meet the
working capital requirement of the borrower. EXPORT CREDIT: PRE SHIPMENT AND
Working capital can be divided into fixed working POST SHIPMENT CREDIT
capital and variable working capital. Fixed working Pre-shipment credits are usually required by
capital will be financed by way of short term loan exporters to purchase and procure raw materials,
whilst variable working capital will be financed process and manufacture export goods, pack the
by overdraft facility. Financing up to 70% of the goods for export, pay for transporting goods to
requirement (working capital calculated by net of the sea ports/airports for export, pay the freight,
current assets and current liability) can be made insurance and export duty, if any. Pre-shipment
through this type of loan. credits are usually liquidated by negotiating bills or
by the post-shipment credit.
OVERDRAFT
Overdraft facility is a running loan account grated Pre-shipment credit will be granted to the exporter
on the basis of a confirmed letter of credit against a cost price of goods/ commodity under pledge.
firm export order.
DOCUMENTS REQUIRED
The Bank will extend post-shipment credit through Article & Memorandum of association/
purchase/discount of export bills or by way of partnership deed
advance against such bills. Registration certificate
Tax clearance certificate/PAN Card / VAT
DEMAND LOAN Registration certificate
Demand loan is provided in a lump sum or repayable Joint Venture Agreement (Wherever
either in fixed installments or in lump sum by applicable)
assessing the working capital requirement of the Resolution of partners/Board of Directors
borrower. for availing banking facilities, authorization
for loan operation, authorization to
CASH CREDIT mortgage company’s/Institution assets,
Global IME Bank offers both Revolving and Non- provide undertaking, provide corporate
revolving Cash Credit to finance unique requirement guarantee
of the businesses. Copy of citizenship certificate of major
shareholders.
Cash Credit - Revolving (CCR): Title Deed (Lalpurja)
Cash Credit - Revolving is similar to that of Blue print of cadastral map (Napi Naksa)
overdraft limit in nature but unlike in OD, Recent land tax payment receipt from
a separate loan account will be maintained malpot office (Tiro tireko rashid)
for loan limit implementation and is Wealth tax payment receipt of the borrower
regulated by the drawing power within Copy of property transfer deed
the offered limit. Revolving Cash Credit Certificate from municipality stating the
shall be provided against the pledge or name of land owners of four Corners along
hypothecation of stock - in - trade, goods, with kitta no. (Char- Killa Pramanit Gareko)
machinery, land, building etc. Citizenship certificate of landlord
Approved/Certified building drawing
Cash Credit - Non – Revolving (CCNR): Cash along with the approval (Naksha & Pass
Credit - Non - Certificate)
Revolving is basically a substitute to TR loan “No objection Letter”(NOC) in case
for financing the import of capital goods of collateral owned by third party
such as plant and machinery. (Manjurinama)
NOC from legal hires of owner of the
PLEDGE LOAN company/Institution mortgage of the
Pledge loan is provided basically for maintaining property(ies)
the stock of the trading items / goods under the Relation certificate issued by local authority
speculation that the price of the commodity would Any other documents are per the case
increase in due course of time. Generally, the goods required and stipulated by the bank
having seasonal nature like food - grains, sugar etc.,
are considered for the pledge loan. Under pledge INFRASTRUCTURE/PROJECT &
loan, goods are kept under lock and key of the bank CONSORTIUM LOANS
in the borrower’s go - down for security of the loan. !! Financial Solution to your complex and large
The goods will be released partially or fully as and projects!!
when the sales deal is made and corresponding
amount of loan outstanding is settled. Global IME INFRASTRUCTURE/PROJECT LOAN
Bank offers pledge loan and finance up to 70% of the Global IME Bank finances to different types of
infrastructure/project including “Green Field” which is discounted by Global IME Bank

projects. The bank has currently financed on different Limited with certain discounting interest,
types of projects such as Hydro, Cement, Steel, Hotels net of payment which is made at sight to the
and Housing. Expert and experienced relationship beneficiary and payment by the applicant
managers are involved in project assessment to look to us at specific future date only after
after financial and technical feasibility of the project. acceptance of the presented documents.
CONSORTIUM LOAN IMPORT LETTER OF CREDIT CYCLE

Global IME Bank provides consortium loans for The buyer and seller negotiate the deal
large projects. The bank has currently managed for purchase/sell of goods/ services and
different consortiums as a Lead Bank for hydro, approach the LC issuing bank to open an
steel and hotel projects. Further, the bank has also import letter of Credit (LC)
participated in different consortiums as a Member The issuing bank issues the Letter of Credit
Bank for hydro, cement, hotel and pharmaceutical and sends it to the advising bank for advising
projects to mention a few. the LC to the beneficiary, the advising bank
advises the LC to beneficiary for shipment
TRADE FINANCE of goods.
Global IME Bank Limited provides wide range of trade The exporter/seller exports the goods as
services covering import, export and Guarantees per the terms and conditions of the LC and
services. We have an experience team of trade staffs, submits the relevant documents as stated in
who will work with you in a very personalized and the LC to the negotiating/nominated bank
professional manner, to ensure international trade The negotiating bank forwards the original
transactions; proceed faster, easier and risk-free. documents to issuing bank for payment
Our team will not only process your request but under LC
also provide you import information useful to your The issuing bank obtains the payment from
business as well. the applicant/buyer and sends the payment
to the negotiating bank to further credit the
IMPORT LETTER OF CREDIT payment to the beneficiary/seller.
Documentary Letter of Credit (DC) is a conditional The issuing bank provides the LC documents
undertaking given by a bank (issuing bank) on to the applicant/buyer for the release of
behalf of buyer/ applicant to pay a seller/beneficiary goods from the customs.
against stipulated documents provided all terms
and conditions are complied. Letter of credit is the PRE-REQUISITES FOR ISSUING IMPORT LC
most safe and convenient means of payment for the Before issuing LC, applicant will require to have
export in all domestic and international trade. Global approved credit limits sanctioned by the bank. In line
IME Bank Limited offers inland and foreign Letter of with Nepal Rastra Bank regulations, we will require
Credit of two types: the following documents along with our dully filled
up LC application form for establishing LC:
Sight LC: The Letter of Credit which needs
to be settled/ retired within 5 banking Proforma Invoice/ Sales Contract/ Indent
days after the sight of the documentary bill with mandatorily mentioned following
following the date of presentation provided information:
that the documents are clean. Goods Name, brand and model number
Usance LC: The Letter of Credit which needs Country of Origin of goods
to be settled/retired in a specific future Quantity, Unit Price and Total amount
date only after acceptance of the presented Incoterms (CIF, FOB, CFR, EXW, etc)
documents Payment type- Sight Payment, Usance
Discounting LCs: The Usance Letter of Credit with tenure or if deferred payment if the
payment is to be made in mixed basis for both sight (DAP) and usance (DAA) collection
(for e.g. certain percent payment after documents.
documents arrival and certain percent
payment after arrival of goods etc) REMITTANCE GLOBAL REMIT
At least eight digit harmonic code Global Remit is a premium online customer focused
number and technology oriented remittance product of Global
Full name and address of the applicant/ IME Bank Ltd. It is web based remittance software
buyer and beneficiary/seller that facilitates online money transfer system with
Bi.Bi.Ni. form number 3 the latest technological features. It supports ID &
Firm/ Company registration certificate Account Transfers enabling customers to transfer
PAN certificate funds from our International partners to all our
Board Minute (If applicable) branches/payout locations at your nearest locations.
Memorandum of Association (MOA) (If With the vast experience of the management team
applicable) and the board of directors in remittance business,
Article of Association (AOA) (if applicable) Global Remit is dedicated to provide fastest and
Citizenship of the borrower safest way of money transfer. So far with the lowest
Latest Tax lodge/clearance certificate sending fee and highest exchange rate offered to its
customers, Global Remit has established a strong
EXPORT LETTER OF CREDIT bond amongst its customers.
Global IME Bank offers export LC advising and
negotiation services. Under export LC negotiation, FEATURES
we purchase sight bill of exchange and discounting 1. Web based technology.
of usance bill of exchange. 2. VeriSign Secured
3. Largest Network with 138 Global IME Bank
LETTER OF GUARANTEE Branches, more than 5200 IME locations
A Letter of Guarantee is an irrevocable promise and 1000 plus YES Remit agents.
made in writing by one person (guarantor or surety) 4. Real time transaction processing
to another party(the beneficiary) to answer for the 5. Provide fastest and reliable means of
debt or default of a third party (principal debtor). remittance information.
6. Deposit instant in any Global IME Bank
Global IME Bank Limited provides international branches & any other Banks & Financial
guarantees besides local guarantees. We have our Institutions.
correspondent bank in Asia, America and Europe. 7. Competitive service charge.
We provide below mentioned guarantees:
DIGITAL BANKING
Bid Bond Guarantee Secured Convenient and Ease
Performance Bond Guarantee
Advance Payment Guarantee You can bank how, where and when it's most
convenient for you. Global IME Digital Banking gives
DOCUMENTARY COLLECTIONS you a powerful, comprehensive set of online and
Documentary Collection offers low-cost but secure mobile banking tools to its valued customers.
alternatives to letter of credit to trade. It is easy
and convenient to route documentary collection GLOBAL ONLINE
through Global IME Bank Limited. The bank offers Why stand in line when you can do online? Global IME
both inward and outward documentary collection Bank offers convenient banking facilities through the
services in a very competitive pricing in compliance Internet so its valued customers can save their time
with ICC publication Uniform Rules for Collection and money. Global online banking features many of
number 522 and Nepal Rastra Bank directives the traditional banking activities which previously
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, Television with their staff salary accounts with the Bank to
E-wallet Load upload their staff’s salary from their own office.
2. Request PROCEDURE TO REGISTER TO GLOBAL

CORPORATE ONLINE BANKING
Cheque Stop Fill up the application for Global Corporate
Cheque Book Online Banking*
Submit it to the respective branch
3. Accounts Enquiry Receive your user ID and passwords in your
e-mail and mobile phone
General Information Begin using Global Corporate Online
Mini Statement Banking Services
Full Statement
* The application form must be accompanied by
4. Settings Request for Global Corporate Online Baking on the
official letter head of the corporation. The letter
Change Login Password must be signed by all of the required account
Change Transaction Password operators and official stamp of the corporation is
Link Account Settings also mandatory.
Link Credit Card Settings
ELIGIBILITY:
5. Message and History All corporate account holders of Global IME Bank
are eligible to apply for Global Corporate Online
Compose and Send Message Banking.
Read Message
Global Online History GIBL SECURED ECOM
There is 3D secure services available for our Credit
PROCEDURE TO REGISTER TO GLOBAL Cardholders to perform online transactions via card.
ONLINE BANKING This service allows GIBL credit card holders to use
Fill up the application for online banking. their cards during online transactions and allow
Submit it to the respective branch. them to participate in Verified by Visa process. The
Receive your user ID and passwords in your new value-added service by us is an extension of the
e-mail and mobile phone. Banks mission to reiterate our commitment to our
Begin using online banking service. consumers to meet the needs of an ever-changing
market in terms of security, technology, and financial
ELIGIBLITY solutions.
All account holders of Global IME Bank are eligible
The few simple steps will enable our cardholders Credit Card Bill payments
to activate the new feature while performing first Mobile Top up viz. NTC Prepaid/Postpaid,
ecommerce transaction where customers need Ncell Prepaid/Postpaid, NT Landline, ADSL,
to enroll and set credentials for future usage. Dishhome, SimTv, SmartCell
Subsequent online purchases will then be validated Recharge Cards viz. NT GSM, NT CDMA,
with additional layer of security for cardholder’s Dishhome, Broadlink internet, SmartCell
authentication. We in association with VISA Load eSewa, Imepay Wallet
have partnered with Izealiant Technologies for Personalized QR Code
implementing this solution that provides flexibility Fonepay Integration
to choose authentication types like Password or OTP Banking services without internet(SMS
depending upon customer preference. Banking)
Engaging Promotion banners
As a direct benefit, GIBL cardholders can now enjoy Information of exciting offers and discounts
additional security for their online card usage
on various ecommerce sites worldwide. This will Global Smart Mobile Banking application, required
also increase acceptance across more Merchants to be installed in mobile phone can be downloaded
participating in 3D secure services for using Global from our website www.globalimebank.com. This
IME cards. The protective feature enables the setup file can be downloaded from mobile phones
bank to authenticate not only the card but also the with GPRS facility or can be downloaded to any PC
cardholder during payment of internet purchases and then transferred to mobile phone.
thus protecting their online transactions against
theft and illegal use of cards. PROCEDURE TO REGISTER TO GLOBAL
SMART MOBILE BANKING
GLOBAL SMART MOBILE BANKING Fill up the application for Global Smart
Global Smart is Global IME Bank’s Mobile Banking Mobile Banking.
Application, developed to improve the experience of Submit it to the respective branch.
its customers. Global Smart is available on Android Receive your confirmations SMS and PIN
and iOS devices. code in your registered NTC or NCELL
mobile.
With Global Smart Mobile Banking, discover quick, Start using Global Smart Mobile Banking.
simple and convenient way to take command of your
bank account, on your mobile phone. MISSED CALL BANKING
To provide hassle free and convenient banking
Global Smart is equipped with following features: services to the customer by leveraging technology,
Global IME Bank have introduced Missed Call
Account Dashboard which links linked banking. All customers who have already got their
account information of Saving Account, mobile number registered in the Global Smart
Loan Account, Overdraft, Credit Card details. application can get the information regarding
Biometric Login Security using Fingerprint balance of their account, mini statement, mobile
for both Login and Transaction Pin. top up, credit card statement, loan enquiry and
Graphical Statement and Account information by just giving missed call to predefined
Dashboard numbers.
Payment to different Merchant Outlets using
QR Code The following 6 features can be accessed by using
Fund transfer using QR Code Missed Call Banking Service in the respective Mobile
Easy to navigate Bank's Branches/ ATMs, Number:
Exchange rate, Contact
Missed Call banking
Mobile Feedbacks: Enables users to give feedbacks

S. No. Features and comments directly to bank through Viber
Number
Social Networks: Allows customers to
1 Balance enquiry 98012312 94
connect with bank through various social
2 Mini Statement(Last 3 Transaction) 98012312 95 media
3 Top Up of Rs 100 98012312 96 FAQs: Gives information regarding most
frequently asked questions
4 Last 3 statement of Credit Card 98012312 97 Interest Rate: Gives current rates for
5 EMI Due Enquiry 98012312 98 various types of account and loans
Branchless Banking: Lists branchless
6 Loan Product Enquiry 98012312 99 banking locations
Social Responsibility: Gives news of CSR
PROCESS OF MISSED CALL BANKING activities done by bank
Customer gives miss call to dedicated Online Account Open: Provide the link for
number to access specified feature as online account opening
mentioned above from any mobile set.
After First ring, the call gets automatically ADDITIONAL KEY FEATURES
disconnected. Account Information: Displays the registered
The SMS is delivered to the customer customer’s account related information like
instantly as per the SMS format of each Account holder name, account number,
feature Mobile number and email address.
Balance Inquiry: Displays Account balance,
VIBER BANKING Available Balance and Accrued interest
Viber banking is a digital technology that allows Mini Statement: Displays last 5 transaction
you to enjoy various services by interacting with Credit Card Inquiry: Displays information
the Bank directly through social network app Viber, regarding available credit limit, available
the popular internet based cross-platform instant cash limit, total outstanding amount, due
messaging over VOIP IP application, available for amount, due date and last payment date
free from Google store and App store. Loan/Overdraft Inquiry: Displays EMI
amount, due date, outstanding interest and
FEATURES loan amount.
About Us: Displays various information Fixed Deposit Amount: Displays FD amount,
about the bank tenure of FD period, maturity date and
Notices: Receive information on recent interest rate.
notices and updates published by the bank
Branches: Lists the location addresses for QR MERCHANT PAYMENT
all available banking branches As a paperless system of making payment, Global
Banking hours: Displays designated IME Bank offers an alternative to the traditional
Normal Business/Transaction Hours and systems, a payment via QR Code scanning through
Extended Banking Hours at the bank’s Mobile. QR payment systems have the advantage of
branches enabling transactions to be processed quickly and
ATMs: Lists the location addresses for all more cheaply and also offer a much more convenient
available Automatic Teller Machines method of effecting settlement of transactions.
Products & Services: Showcases the
bank’s various products and service related QR code (Quick Response) is a black and white
information dotted digital image which holds certain information
Forex Rates: Allows users to check the on it and only smart phone's camera can scan the
Foreign Currency Exchange rates details. Global IME Bank has introduced QR payment
technology through Mobile banking channel (Global and at any time.
Smart) for the first time in Nepal. In this technology, Speed: A fixed deposit account can be
simply customer makes payment through mobile by opened instantly. There is no need to spend
scanning QR code at the merchant. time to travel to a bank’s branch, wait in a
queue and then travel back in traffic.
Bank Customers are provided Mobile Banking Application Easy payment option: In the online method,
for QR payment on different Merchant Outlets. the amount is directly debited from the
savings account of the customer and thus it
Following are the steps for QR code Scan and is an easy payment option. This eliminates
payment on Merchant Outlets: the need to carry a lump sum to the bank or
visit the bank, etc.
Customer opens bank's Mobile Banking application.
Without login into the application, Customer Scrolls GLOBAL IME EASY BUY EASY PAY (EBEP) -
on right side of the landing page. The "Scan to Pay A CREDIT CARD LOAN FACILITY
on Merchant Outlets" screen appears which is used Global IME Easy Buy Easy Pay (EBEP) is a Credit Card
to scan the QR code displayed on the merchant side. based loan facility designed to promptly facilitate
the customers in purchasing their desired products
Also, by login into the Mobile banking application, instantly without any down payment requirements at
Customer Needs to click on "Scan 2 Pay" option which 0% interest on EMI basis upon their choice of repayment
leads to "Scan to Pay on Merchant Outlets" screen. time frame, as per their convenience, availed through
hassle-free quick processing service enabling the
ONLINE FIXED DEPOSIT customers to enjoy the products as and when required.
“Online Fixed Deposit” is a service through which
the saving account holders wishing to open an FD Our EBEP facility offers the financing facility on
accounts can do through Global Online (Internet wide range of consumer goods such as electronic
banking) service from anywhere. Through Online appliances and gadgets, mobile phones and
Fixed Deposit module, the account holders who accessories, home appliances, furniture, designer
have subscribed to Global Online (Internet banking) wears, refined jewelries of renowned brands. The
service can seamlessly transfer funds from their Credit Card loan facility offers following features:
saving accounts to the fixed deposit accounts from
anywhere, anytime without visiting branches. 1. EBEP offers financing facility on products
worth ranging from minimum Rs. 15,000 up
Eligibility: to Rs. 2 Lakhs.
Maintain Personal Saving account with the 2. The customer can select the repayment
bank tenure from minimum 6 months up to 18
Subscribe Global Online(Internet Banking months.
Service) 3. The billing will be processed at the 1st of
every English Month with 15 days of grace
Charges: Free Global Online(Internet Banking) service period to the customer for the payment who
Tenure: 3 month, 6 month, 9 month and 12 month has the principal payment.
Interest Rate: 0.5% extra on card rate 4. The customer also has the choice of
Limit for Online FD: Minimum Limit: Rs 10,000 prepaying the outstanding loan amount at
Maximum Limit: Rs. 10 Million minimal pre-payment charges.
Benefits: The renowned brand partners of EBEP are listed

Convenience: It gives the convenience to in the Bank’s website www.globalimebank.com
open a fixed deposit account while sitting in herewith and the bank is constantly progressing on
your own home or anywhere in the world associating with more celebrated brands.
58 Annual
AnnualReport
Report2074-75
2074-75 Global IME Bank Limited
INTERNATIONAL CORRESPONDENT BANKS

LIST OF FOREIGN NOSTRO ACCOUNT AND BIC CODES FOR SETTLEMENT THROUGH: GLBB NP KA
AUD Account INR Account USD Account

National Australia Bank Ltd. IDBI Bank Kookmin Bank
Melbourne Ashok Nagar, Chennai-600083 Seoul
SWIFT Code: NATA AU 33 033 SWIFT Code: IBKL IN BB 005 SWIFT Code: CZNB KR SE
Account Number: 1803 11082 5500 Account Number: 06301 020000 15880 Account Number: 7918 USD 014
EUR Account INR Account USD Account

Standard Chartered Bank YES Bank Standard Chartered Bank
Frankfurt am Main Mumbai New York
SWIFT Code: SCBL DE FX SWIFT Code: YESB IN BB SWIFT Code: SCBL US 33
Account Number: 018 188 406 Account Number: 041 986 800 000 060 Account Number: 3582-021108-001
IBAN Number: DE 1451 2305 0000 1818 8406
INR Account USD Account
GBP Account RBL Bank Korea Exchange Bank
Standard Chartered Bank Mumbai Seoul, Korea
London SWIFT Code: RATNINBB SWIFT Code: KOEX KR SE
SWIFT Code: SCBL GB 2L Account Number: 409 000 454512 Account Number: 0963-THR-0508-70012
Account Number: 0126 774 6601
Sort code: 609104 INR Account USD Account
ICICI Bank China Construction Bank
INR Account Mumbai Shanghai, China
United Bank of India SWIFT Code: ICICI NB BA SWIFT Code: PCBC CN BJ
Kolkata Account Number: 000405076127 Account Number: 31014 0020 0022 0015 240
SWIFT Code: UTBI IN BB ISFC CODE: ICIC0000004
Account Number: 0852 05000 9379 USD Account
JPY Account Industrial Bank of Korea
INR Account Standard Chartered Bank,Tokyo Seoul, Korea
HDFC Bank Ltd SWIFT Code: SCBL JP JT SWIFT Code: IBKO KR SE
Mumbai 232 7368 1110 Account Number: 719-000096-57-00011
SWIFT Code: HDFC IN BB
Account Number: 006 003 90000 293 CNY Account USD Account
ISFC CODE: HDFC 0000060 China Construction Bank ICICI Bank
Shanghai, China Hong Kong
INR Account SWIFT Code: PCBC CN BJ SWIFT Code: ICICHKHHCLR
Standard Chartered Bank Account Number: 3100 1520 3130 5922 0136 Account Number: 852037503
Mumbai
SWIFT Code: SCBL IN BB SGD Account AED Account
Account Number: 222-05333 962 Standard Chartered Bank, Standard Chartered Bank
ISFC CODE: SCBL 0036001 Singapore Dubai
SWIFT Code: SCBL SG SG SWIFT Code: SCBL AE ADB
INR Account Account Number: 010 217 2803 Account Number: 1520 993 2401
Punjab National Bank, Mumbai IBAN Number: AE 310440000015209932401
SWIFT Code: PUNB IN BB USD Account
Account Number: 4553 0036 0000 0015 Habib American Bank QAR Account
New York The Commercial Bank (Q.S.C)
INR Account SWIFT Code: HANY US 33 Doha, State of Qatar
AXIS Bank, Mumbai Account Number: 20729306 SWIFT Code: CBQ AQ AQA
SWIFT Code: AXIS IN BB Account Number: 4010-005236 001
Account Number: 9100 2004 2002 345 IBAN Number:
ISFC CODE: UTIB0000004 QA30CBQA00000000401000236001
Financial Statements for the

Financial Year 2074-75 (2017-18)
CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As on 32nd Asar 2075 (16 July 2018)
Group Bank
Current Year Previous Year 1st Shrawan 2073 Current Year Previous Year 1st Shrawan 2073
Note Rs Rs Rs Rs Rs Rs
Assets
Cash and Cash Equivalents 4.1 8,514,053,748 11,499,993,862 8,455,688,921 8,027,502,157 9,364,024,369 7,951,720,437
Due from Nepal Rastra Bank 4.2 4,768,987,025 14,809,251,159 5,436,424,014 4,768,987,025 14,809,251,159 5,436,424,014
Placement with Bank and Financial 4.3 172,737,827 688,423,011 1,626,073,355 - 572,623,011 1,626,073,355
Institutions
Derivative financial instruments 4.4 - 99,487,367 64,905,009 - 99,487,367 64,905,009
Other trading assets 4.5 207,784,950 134,169,611 105,070,225 - - -
Loan and advances to B/FIs 4.6 3,177,259,480 2,227,338,696 2,175,502,166 3,474,259,480 2,331,288,696 2,175,502,166
Loans and advances to customers 4.7 89,974,867,252 77,586,333,313 57,363,187,377 88,878,095,645 77,135,881,061 57,363,187,377
Investment securities 4.8 16,333,034,282 10,168,695,947 11,764,568,989 16,320,652,832 10,154,592,358 11,752,068,989
Current Tax Assets 4.9 1,040,358,579 985,400,330 660,515,467 1,010,327,239 951,113,247 645,646,478
Investment in subsidiaries 4.10 - - - 219,775,000 219,775,000 60,000,000
Investment in associates 4.11 359,728,403 295,330,560 55,801,302 298,057,200 263,837,500 44,000,000
Investment property 4.12 91,917,079 144,690,079 146,707,979 91,917,079 144,690,079 146,707,979
Property and equipment 4.13 1,361,404,114 1,064,642,821 945,204,472 1,324,470,731 1,030,664,732 934,939,965
Goodwill and intangible assets 4.14 38,024,595 31,293,369 33,068,455 31,946,435 28,731,164 31,262,121
Deferred Tax Assets 4.15 188,284,780 2,940,002 - 177,846,130 907,696 -
Other Assets 4.16 1,264,028,413 849,460,582 466,997,327 1,223,595,394 787,077,429 450,126,778
Total Assets 127,492,470,526 120,587,450,708 89,299,715,058 125,847,432,347 117,893,944,868 88,682,564,668
Liabilities
Due to Banks and Financial Institutions 4.17 2,346,752,348 2,063,231,613 3,683,919,798 1,659,926,258 1,738,945,338 3,683,919,798
Due to Nepal Rastra Bank 4.18 1,034,648,590 39,376,400 - 1,034,648,590 39,376,400 -
Derivative financial instruments 4.19 45,256,669 - - 45,256,669 - -
Deposit from customers 4.20 105,181,948,626 99,385,350,459 73,351,714,071 104,850,510,393 100,171,539,270 73,398,997,418
Borrowings 4.21 - - - - - -
Current tax liabilities 4.9 965,848,642 912,958,788 606,993,314 948,515,777 889,367,811 597,876,049
Provisions 4.22 - - - - - -
Deferred Tax Liabilities 4.15 - - 2,919,405 - - 3,115,971
Other Liabilities 4.23 3,702,826,363 5,235,443,927 2,220,991,742 3,329,896,365 2,278,282,871 1,653,428,460
Debt securities issued 4.24 400,000,000 400,000,000 400,000,000 400,000,000 400,000,000 400,000,000
Subordinated Liabilities 4.25 - - - - - -
Total Liabilities 113,677,281,237 108,036,361,187 80,266,538,329 112,268,754,051 105,517,511,690 79,737,337,696
Current Year Previous Year 1st Shrawan 2073 Current Year Previous Year 1st Shrawan 2073
Rs Rs Rs Rs Rs Rs
Equity
Share capital 4.26 8,888,375,827 8,080,341,661 6,164,267,536 8,888,375,827 8,080,341,661 6,164,267,536
Share premium
Retained earnings 4.27 1,573,923,423 2,030,743,100 1,163,193,151 1,460,832,125 1,957,821,861 1,129,702,776
Reserves 4.27 3,237,071,383 2,346,924,258 1,651,256,660 3,229,470,345 2,338,269,656 1,651,256,660
Total equity attributable to equity 13,699,370,632 12,458,009,019 8,978,717,348 13,578,678,296 12,376,433,178 8,945,226,972
holders
Non-controlling interest 115,818,657 93,080,501 54,459,382
Total Equity 13,815,189,289 12,551,089,520 9,033,176,729
Total Liabilities and Equity 127,492,470,526 120,587,450,708 89,299,715,058 125,847,432,347 117,893,944,868 88,682,564,668
Liabilities and Commitment 4.28

The accounting policies and notes on pages 69 through 155 form an integral part of the Financial Statements.
___________________________ __________________________________ ………………

Janak Sharma Poudyal Chandra Prasad Dhakal Yuddha Raj Oli, FCA
Chief Executive Officer Chairman Senior Partner
__________________________________ PYC & Associates
Sudarshan Krishna Shrestha Chartered Accountants
__________________________ ________________________________
Deep Chandra Regmi Pawan Kumar Bhimsaria
Chief Financial Officer _____________________ Director
Suman Pokharel
_____________________
Numanath Poudel
18th Mangsir 2075 _____________________
Kathmandu Krishna Prasad Sharma
CONSOLIDATED STATEMENT OF PROFIT OR LOSS

For the period ended 32nd Asar 2075 (16 July 2017 to 16 July 2018)
Group Bank
For Year ended Note Current Year Previous Year Current Year Previous Year
Rs Rs Rs Rs
Interest Income 4.29 11,641,969,739 7,606,537,999 11,481,732,049 7,463,643,573
Interest Expenses 4.30 7,667,415,571 3,811,063,602 7,604,848,094 3,799,262,121
Net interest income 3,974,554,168 3,795,474,397 3,876,883,954 3,664,381,452
Fees and commission income 4.31 994,847,243 911,641,614 933,457,252 866,510,173
Fees and commission expenses 4.32 174,841,540 165,017,005 174,778,233 164,616,955
Net fee and commission income 820,005,703 746,624,609 758,679,018 701,893,217
Net interest, fee and commission income 4,794,559,871 4,542,099,006 4,635,562,973 4,366,274,669
Net Trading Income 4.33 229,105,060 229,476,617 261,961,095 230,633,246
Other Operating Income 4.34 220,009,490 133,524,894 198,163,937 151,697,777
Total operating income 5,243,674,420 4,905,100,517 5,095,688,005 4,748,605,692
Impairment charge/(reversal) for loans and other losses 4.35 (286,324,596) (13,373,425) (289,835,348) (18,501,862)
Net Operating Income 5,529,999,016 4,918,473,942 5,385,523,353 4,767,107,554
Operating Expenses
Personnel Expenses 4.36 1,376,416,978 1,122,008,495 1,314,224,299 1,073,472,925
Other Operating Expenses 4.37 806,562,432 630,296,958 766,481,696 602,115,702
Depreciation and Amortization 4.38 249,499,113 143,762,768 243,744,981 139,865,680
Operating profit 3,097,520,494 3,022,405,720 3,061,072,377 2,951,653,247
Non-operating income 4.39 32,066,597 36,765,000 1,888,454 17,073,242
Non-operating expense 4.40 150,984,395 - 150,984,395 -
Profit before income tax 2,978,602,695 3,059,170,720 2,911,976,436 2,968,726,489
Income Tax Expense 4.41
Current tax 965,848,642 912,984,492 948,515,777 889,367,811
Deferred tax (145,924,461) 15,704,776 (137,902,491) 18,119,192
Profit For the Year 2,158,678,514 2,130,481,452 2,101,363,149 2,061,239,486
Profit attributable to:
Equity holders of the Bank 2,150,996,692 2,111,049,965
Non-controlling interest 7,681,822 19,431,487
Profit For the Year 2,158,678,514 2,130,481,452 2,101,363,149 2,061,239,486
Earnings per Share 4.42
Basic earnings per share 23.64 25.51
Diluted earnings per share 23.64 25.51
___________________________ __________________________________ ………………

__________________________________ PYC & Associates
__________________________ ________________________________
Suman Pokharel
_____________________
Numanath Poudel
18th Mangsir 2075 _____________________
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For period ended 32nd Asar 2075 (16 July 2017 to 16 July 2018)
Group Bank
For Year ended Current Year Previous Year Current Year Previous Year
Note Rs Rs Rs Rs

Profit for the year 2,158,678,514 2,130,481,452 2,101,363,149 2,061,239,486
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 measured 4.8 (105,975,093) (55,072,397) (104,437,593) (55,072,397)
at fair value
Gains/(losses) on revaluation - - - -
Actuarial gain/(losses) on defined benefit plans 4.23 (25,682,214) 10,368,523 (25,682,214) 10,368,523
Income Tax relating to above items 4.41 39,420,318 13,411,162 39,035,943 13,411,162
Net other comprehensive income that will not be reclassified to (92,236,989) (31,292,712) (91,083,864) (31,292,712)
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 accounted
as per equity method
Other comprehensive income, net of income tax (92,236,989) (31,292,712) (91,083,864) (31,292,712)
Total comprehensive income for the year 2,066,441,525 2,099,188,740 2,010,279,285 2,029,946,774
Total comprehensive income attributable to:
Equity holders of the Bank 2,059,047,985 2,079,757,253
Non-controlling interest 7,393,540 19,431,487
Total comprehensive income for the period 2,066,441,525 2,099,188,740 2,010,279,285 2,029,946,774
___________________________ __________________________________ ………………

__________________________________ PYC & Associates
__________________________ ________________________________
Suman Pokharel
_____________________
Numanath Poudel
18th Mangsir 2075 _____________________
STATEMENT OF CHANGES IN EQUITY

For period Shrawan 1 2073 to Asar 2075 (16 July 2016 to 16 July 2018)
Group
Attributable to equity holders of the Bank
Non-
Exchange Total
Share General Total Controlling Shareholders'
Equalization Regulatory Fair Value Revaluation Retained Other
Share Capital Premium Interest
Reserve Reserve Reserve Reserve Earnings Reserve Funds
Fund
Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs
Balance as at Shrawan 1, 2073 6,164,267,536 987,772,415 64,319,769 129,723,502 - 1,163,193,151 469,440,974 8,978,717,348 54,459,382 9,033,176,729
Balance as at Shrawan 1, 2073 6,164,267,536 987,772,415 64,319,769 129,723,502 - 1,170,535,277 469,440,974 8,986,059,473 8,986,059,473
Comprehensive income for the year
Comprehensive income for the year - - (38,550,678) 2,123,050,264 7,257,966 2,091,757,552 2,091,757,552
Transfer to reserve during the year 6,022,035 - 6,022,035 6,022,035
General Reserve Fund 409,280,208 (409,280,208) - - -
Debenture Redemption Reserve (57,142,857) 57,142,857 - -
Exchange Fluctuation Fund - - 12,268,792 - - - (12,268,792) - - -
Interest Capitalized Reserve - - - - - - (12,904,106) 12,904,106 - -
Corporate Social Responsibility Fund - - - - - - (20,061,595) 20,061,595 - -
Training Reserve - - - - - - (11,040,391) 11,040,391 - -
Other Reserve - - - - - - (606,286) 606,286 - -
Regulatory reserve - - - - - - - - - -
Transfer from reserve during the year - - - -
Capital Reserve - - - - - - 213,672,603 (213,672,603) - -
Investment Adjustment Reserve - - - - - - 95,612,310 (95,612,310) - -
Transactions with owners, directly - - - -
recognized in equity
Bonus shares Issued 986,282,806 - - - - - (986,282,806) - - -
Dividend Paid - - - - - - (27,089,474) - (27,089,474) (27,089,474)
Share issued to merged Entities 929,791,319 - - - - - - - 929,791,319 929,791,319
Transfer from Merger - - 185,923,673 - (41,752,945) 327,017,315 471,188,043 471,188,043
NFRS adjustments for b/f provisions - - - - 280,070 - 280,070 - 280,070
Minority Interest 93,080,501 93,080,501
Balance as at Asar 31, 2074 8,080,341,661 - 1,582,976,296 76,588,561 - 91,172,824 - 2,030,743,099 596,186,577 12,458,009,019 93,080,501 12,551,089,520
Opening Balance 8,080,341,661 - 1,574,927,980 76,588,561 91,172,824 2,047,584,163 595,580,291 12,466,195,480 12,466,195,480
Comprehensive income for the year - - - - - (74,259,440) 2,150,675,798 (17,977,550) 2,058,438,808 2,058,438,808
Transfer to reserve during the year
General Reserve Fund - - 428,106,249 - - - (420,272,630) - 7,833,619 7,833,619
Debenture Redemption Reserve - - - - - - (57,142,857) 57,142,857 - -
Exchange Fluctuation Fund - - - 22,569,943 - - (22,569,943) - - -
Investment Adjustment Reserve - - - - - - (89,918,504) 89,918,504 - -
Corporate Social Responsibility Fund - - - - - (5,761,016) 5,761,016 - -
Regulatory reserve - - - - 298,318,082 - (298,318,082) - - -
Deferred Tax Reserve - - - 177,846,130 - (177,846,130) - - -
Other Reserve - - - - - - - 920,543 920,543 920,543
Transfer from reserve during the year - - - - - - - - - -
Training Reserve - - - - - - 389,502 (389,502) - -
Other Reserve - - - - - - 89,155,106 (89,155,106) - -
Transactions with owners, directly
recognized in equity
Transfer from Merger - - - - - - 332,138 - 332,138 332,138
Dividend Paid - - - - - - (824,349,955) - (824,349,955) (824,349,955)
Bonus shares Issued 808,034,166 - - - - - (818,034,166) - (10,000,000) (10,000,000)
Minority Interest - - - - - - - - - 115,818,657 115,818,657
Balance as at Asar 32, 2075 8,888,375,827 - 2,003,034,229 99,158,504 476,164,212 16,913,384 - 1,573,923,423 641,801,053 13,699,370,633 115,818,657 13,815,189,289
___________________________ __________________________________ ………………
__________________________________ PYC & Associates
__________________________ ________________________________
Suman Pokharel
_____________________
Numanath Poudel
18th Mangsir 2075 _____________________
Bank
Exchange
Share General Regulatory Fair Value Revaluation Retained
Share Capital Premium Equalization Other Reserve Total Shareholders'
Reserve Reserve Reserve Reserve Earnings Funds
Fund
Rs Rs Rs Rs Rs Rs Rs Rs Rs Rs
Balance as at Asar 31, 2073 7,150,550,342 - 987,772,415 64,319,769 - - - 34,465,079 468,609,689 8,705,717,294
Reversal of Bonus shares declared (986,282,806) 986,282,806 -
NFRS Adjustments 129,723,502 108,954,891 831,284 239,509,678
Balance as at Shrawan 1, 2073 6,164,267,536 - 987,772,415 64,319,769 - 129,723,502 - 1,129,702,776 469,440,973 8,945,226,972
Comprehensive income for the year -
Net profit for the year - - - - - - 2,061,239,486 - 2,061,239,486
Other Comprehensive income, net of tax - - - - - - - - -
Re-measurement of defined benefit liability (assets) - - - - - - - 7,257,966 7,257,966
Fair value reserve (Investment in equity instrument): - - - - (38,550,678) - - - (38,550,678)
Total comprehensive income for the year 2,061,239,486 2,061,239,486
Transfer to reserve during the year -
General Reserve Fund - 401,231,892 - - - - (401,231,892) - -
Debenture Redemption Reserve - - - - - - (57,142,857) 57,142,857 -
Exchange Fluctuation Fund - - 12,268,792 - - - (12,268,792) - -
Interest Capitalized Reserve - - - - - - (12,904,106) 12,904,106 -
Corporate Social Responsibility Fund - - - - - - (20,061,595) 20,061,595 -
Training Reserve - - - - - - (11,040,391) 11,040,391 -
Transfer from reserve during the year -
Capital Reserve - - - - - - 213,672,603 (213,672,603) -
Investment Adjustment Reserve - - - - - - 95,612,310 (95,612,310) -
Transactions with owners, directly recognized in equity -
Bonus shares Issued 986,282,806 - - - - - (986,282,806) -
Share issued to merged Entities 929,791,319 - - - - - - - 929,791,319
Transfer from Merger - - 185,923,673 - - - (41,752,945) 327,017,315 471,188,043
NFRS adjustments for b/f provisions - - 280,070 280,070
Balance as at Asar 31, 2074 8,080,341,661 - 1,574,927,980 76,588,561 - 91,172,824 - 1,957,821,861 595,580,290 12,376,433,178
Comprehensive income for the year -
Net profit for the year - - - - - - 2,101,363,149 - 2,101,363,149
Other Comprehensive income, net of tax - - - - - - - - -
Re-measurement of defined benefit liability (assets) - - - - - - - (17,977,550) (17,977,550)
Fair value reserve (Investment in equity instrument): - - - - - (73,106,315) - - (73,106,315)
Total comprehensive income for the year 2,101,363,149 2,101,363,149
Transfer to reserve during the year -
General Reserve Fund - - 420,272,630 - - - (420,272,630) -
Debenture Redemption Reserve - - - - - - (57,142,857) 57,142,857 -
Exchange Fluctuation Fund - - - 22,569,943 - - (22,569,943) - -
Investment Adjustment Reserve - - - - - - (89,918,504) 89,918,504 -
Corporate Social Responsibility Fund - - - - - - (5,761,016) 5,761,016 -
Regulatory reserve - - - - 298,318,082 - (298,318,082) -
Deferred Tax Reserve - - - - 177,846,130 - (177,846,130) - -
Transfer from reserve during the year -
Training Reserve - - - - - - 389,502 (389,502) -
Other Reserve - - 89,155,106 (89,155,106)
Transactions with owners, directly recognized in equity -
Bonus shares Issued 808,034,166 - - - - - (808,034,166) - -
Dividend Paid - - - - - - (808,034,166) - (808,034,166)
Balance as at Asar 32, 2075 8,888,375,827 - 1,995,200,610 99,158,504 476,164,212 18,066,509 - 1,460,832,125 640,880,509 13,578,678,296
___________________________ __________________________________ ………………

__________________________________ PYC & Associates
__________________________ ________________________________
Suman Pokharel
_____________________
Numanath Poudel
18th Mangsir 2075 _____________________
CONSOLIDATED STATEMENT OF CASH FLOWS

For period ended 32nd Asar 2075 (16 July 2017 to 16 July 2018)
Group Bank
Current Year Previous Year Current Year Previous Year
Rs Rs Rs Rs
CASH FLOW FROM OPERATING ACTIVITIES
Interest Received 10,833,866,598 7,080,159,921 10,711,871,217 6,939,393,664
Fees and Other Income Received 1,023,576,714 942,455,513 958,208,101 878,032,467
Dividend received - - - -
Receipts from other operating activities 303,420,083 299,153,606 286,272,783 279,461,848
Interest Paid (7,700,972,012) (3,606,801,293) (7,620,952,343) (3,572,867,633)
Commission and Fees Paid (177,191,058) (164,616,955) (174,778,233) (164,616,955)
Cash Payment to Employees (1,256,165,498) (901,856,327) (1,192,308,760) (862,512,983)
Other Expenses Paid (810,214,881) (632,022,473) (766,477,133) (602,040,392)
Operating cash flows before changes in operating assets and liabilities 2,216,319,946 3,016,471,992 2,201,835,632 2,894,850,016
(Increase) / Decrease in operating assets
Due from Nepal Rastra Bank 10,040,264,134 (9,372,827,145) 10,040,264,135 (9,372,827,145)
Placements with Bank and financial institutions 506,716,800 1,060,403,553 563,654,627 1,060,403,552
Other trading assets (97,807,111) - - -
Loans and advances to bank and financial institutions (855,947,132) (157,585,598) (1,155,947,132) (157,585,598)
Loans and advances to customers (12,002,870,603) (19,644,796,294) (11,356,768,411) (19,546,123,512)
Other assets (566,827,596) (436,489,066) (583,508,944) (405,379,395)
(2,976,471,508) (28,551,294,550) (2,492,305,725) (28,421,512,098)
(Increase) / Decrease in operating liabilities
Due to Nepal Rastra Bank 995,272,190 39,376,400 995,272,190 39,376,400
Due to bank and financial institutions 178,520,735 (1,861,046,742) (79,019,080) (1,944,974,459)
Deposit from customers 4,847,005,648 25,959,653,688 4,678,971,122 26,772,541,852
Borrowings - - - -
Other liabilities (1,375,632,111) 2,600,303,384 1,218,943,840 248,726,628
4,645,166,462 26,738,286,730 6,814,168,072 25,115,670,421
Net cash flow from operating activities before tax paid 3,885,014,900 1,203,464,173 6,523,697,979 (410,991,660)
Income taxes paid (958,574,160) (937,198,835) (948,581,803) (903,342,818)
Net cash flow from operating activities 2,926,440,740 266,265,338 5,575,116,176 (1,314,334,478)
CASH FLOW FROM INVESTING ACTIVITIES
Purchase of investment securities (6,269,855,476) 1,090,558,347 (6,241,399,472) 1,179,939,062
Receipt from sale of investment securities 120,246,891 31,303,156 120,246,893 25,841,080
Purchase of property and equipment (530,172,861) (236,987,083) (524,838,062) (224,904,293)
Receipt from sale of property and equipment - - - -
Purchase of intangible assets (15,449,285) (10,422,558) (15,284,232) (10,422,558)
Receipt from sale of intangible assets - - - -
Purchase of investment properties - - - -
Receipt from sale of investment properties 53,645,060 16,554,860 53,645,063 16,554,860
Interest received 480,633,114 286,304,820 424,069,075 286,304,820
Dividend received 23,536,791 40,256,573 21,516,432 40,256,573
Net cash used in investing activities (6,137,415,766) 1,217,568,116 (6,162,044,303) 1,313,569,543
CASH FLOW FROM FINANCING ACTIVITIES
Receipt from issue of debt securities - - - -
Repayment of debt securities - - - -
Receipt from issue of subordinated liabilities - - - -
Repayment of subordinated liabilities - - - -
Receipt from issue of shares 100,622,921 63,283,347 - 8,219,016
Dividend paid (810,918,631) (12,919,321) (809,697,353) 2,870,153
Interest paid (30,176,504) (40,135,884) (30,176,504) (40,135,884)
Other receipt/payment - 1,384,027,554 - 1,393,040,415
Net cash from financing activities (740,472,214) 1,394,255,696 (839,873,857) 1,363,993,700
Net increase/(decrease) in cash and cash equivalents (3,951,447,240) 2,878,089,152 (1,426,801,985) 1,363,228,765
Cash and Cash Equivalents as at 1st Shrawan 12,375,221,215 8,572,829,547 9,364,024,369 7,951,720,437
Effect of exchange rate fluctuation on Cash & Cash Equivalents 90,279,773 49,075,167 90,279,773 49,075,167
Cash and Cash Equivalents as at Asar End 8,514,053,748 11,499,993,862 8,027,502,157 9,364,024,369
___________________________ __________________________________ ………………
__________________________________ PYC & Associates
__________________________ ________________________________
Suman Pokharel
_____________________
Numanath Poudel
18th Mangsir 2075 _____________________
1. BANK
1.1 Corporate Information Global IME Microfinance Bittiya in Equity, Statement of Cash
Sanstha Ltd Flows, Notes to the Financial
Global IME Bank Limited Statements and reconciliations of
(hereinafter referred to as The principal activities of the equity between GAAP and Nepal
“The Bank”) is a public limited Global IME Microfinance Bittiya Financial Reporting Standard
company, incorporated on Sanstha Ltd (Previously Reliable have been prepared in accordance
29th May 2006 as per the then Microfinance Bittiya Sanstha with Nepal Financial Reporting
Companies Act 1964 of Nepal. Ltd) is to provide the sustainable Standards as issued by the Nepal
The Bank obtained its operating microfinance services to the Accounting Standard Board and in
license from Nepal Rastra Bank deprived group of people and compliance with the requirements
on 31st December 2006. The small entrepreneurs and mostly of the Companies Act, 2006 and
registered office of the Bank is to the female entrepreneurs to directives issued by NRB.
located at Kamaladi, Kathmandu, help them in developing self-
Nepal. Its ordinary shares employment opportunities The formats used in the
are listed on the Nepal Stock and various income generating preparation of the Financial
Exchange Limited (the sole stock activities. This microfinance Statements and the disclosures
exchange in Nepal) for public primarily deal in providing small made therein also comply with
trading. size loan, collection of regular the specified formats prescribed
savings and related financial by the NRB for the preparation,
Global IME Bank Ltd services in its working sector presentation and publication
of 10 districts namely Dolpa, of Annual Audited Financial
The principal activities of the Mustang, Manang, Lamjung, Statements of Commercial Banks.
Bank are to provide commercial Gorkha, Dhading, Nuwakot,
banking services including, Rasuwa, Sindhupalchok and These NFRSs and NASs are
agency services, trade finance Ramechhap. The microfinance available at www.ican.org.np.
services, remittance, card started its operation on 19th
services, e-commerce products May 2013 from its head office 2.2. Reporting Period
and services and commodity Besisahar, Lamjung. and approval of financial
trading services to its customers statements
through its strategic business 2. Basis of Preparation
units, branches, extension The Banks reporting period is
counters, ATMs and network of The principal accounting policies from 1st Shrawan 2074 to 32nd
agents. applied in the preparation of Asar 2075
these financial statements are
Global IME Capital Ltd set out below. These policies For all periods up to and
have been consistently applied including the year ended 31st
The principal activities of the to all the years presented, unless Ashar 2074, the Bank prepared
Global IME Capital Ltd is to provide otherwise stated. the financial statements in
merchant banking services that accordance with the Nepal
include management of public 2.1. Statement of Accounting Standards which
offerings, portfolio management, compliance were effective prior to 31st Asar
underwriting of securities, and 2074. Hence the transition date
fund management of mutual fund The Financial Statement of Bank for the first time adoption of
schemes, depository participant's which comprises of Statement NFRS is 1st Shrawan 2073 (16th
service under Central Depository of Financial Position, Statement July 2016). These financial
Service (CDS) and administration of Profit or Loss and Statement statements for the year ended
and record keeping of securities of Other Comprehensive 32nd Asar 2075 (16th July 2018)
of its clients. Income shown as two separate are the first set of financial
statements, Statement of Changes statements the Bank has
prepared in accordance with made in applying accounting i. IFRS 9- Financial
NFRSs. policies that have the most Instruments
significant effects on the amounts
These financial statements have recognized in these Financial In July 2014, the IASB issued
been approved by the Board of Statements are included in the IFRS 9 Financial Instruments,
Directors on 18th Mangsir 2075 following notes. the standard that will replace
(4th December 2018). IAS 39 for annual periods on or
2.5. Changes in Accounting after 1 January 2018, with early
2.3. Functional and Policies adoption permitted.
presentation currency
New accounting policies Classification and
Items included in these Financial have been followed after the Measurement
Statements are measured using new accounting standards
the currency of the primary were issued by the Institute From a classification and
economic environment in of Chartered Accountants of measurement perspective, the
which the Bank operates. Nepal which were effective new standard will require all
These Financial Statements are and have been consistently financial assets, except equity
presented in Nepalese Rupees, applied for and after Shrawan 1 instruments and derivatives, to be
the Bank’s functional and 2074. Corresponding previous assessed based on a combination
presentation currency. year figures too have been re- of the entity’s business model
measured or reclassified with for managing the assets and the
2.4. Use of judgments and the same accounting policies instruments’ contractual cash
estimates adopted for current financial flow characteristics.
year.
In preparing the Financial The IAS 39 measurement
Statements of the Bank in 2.6. New standards issued categories will be replaced by:
conformity with NFRSs and but not yet effective Fair Value through Profit or
NASs, the management has Loss (FVPL), Fair Value through
made judgments, estimates and Following are the list of new Other Comprehensive Income
assumptions which affect the standards issued by International (FVOCI), and amortized cost.
application of accounting policies Accounting Standard Board but IFRS 9 will also allow entities
and the reported amounts of not yet effective in Nepal because to continue to irrevocably
assets, liabilities, income and such standards are yet to be designate instruments that
expenses. Actual results may differ pronounced by the Accounting qualify for amortized cost or fair
from these estimates. Estimates Standards Board of Nepal: value through OCI instruments
and underlying assumptions as FVPL, if doing so eliminates
are reviewed on an ongoing a. IFRS 9- Financial Instruments or significantly reduces a
basis. Revisions to accounting b. IFRS 15 Revenue from measurement or recognition
estimates are recognized contracts with Customers inconsistency. Equity instruments
prospectively. Significant areas of c. IFRS 16 Leases that are not held for trading
critical judgments, assumptions may be irrevocably designated
and estimation uncertainty, in 2.7. New standards and as FVOCI, with no subsequent
applying accounting policies that interpretation not adopted reclassification of gains or losses
have most significant effects on to the income statement.
the amounts recognized in the Standards issued but not yet
Financial Statements of the Bank effective up to the date of issuance The accounting for financial
are explained below. of the financial statements liabilities will largely be the
are disclosed below. The Bank same as the requirements of
A. Judgment intends to adopt these standards, IAS 39, except for the treatment
if applicable when they become of gains or losses arising from
Information about judgments effective. an entity’s own credit risk
relating to liabilities designated on the present value of all cash periods beginning on 1 January
at FVPL. Such movements will shortfalls over the remaining 2018 with early adoption
be presented in OCI with no expected life of the financial asset, permitted. This standard is yet
subsequent reclassification to i.e., the difference between: to be pronounced by the Nepal
the income statement, unless an Accounting Standard Board. The
accounting mismatch in profit or the contractual cash flows Bank does not anticipate early
loss would arise. that are due to the Bank adopting IFRS 15 and no impact
under the contract, and has been evaluated.
The bank has adopted NFRS 9 for The cash flows that the
the classification of financial assets Bank expects to receive, IFRS 15 defines principles for
and liabilities as per NFRS 9. The discounted at the effective recognizing revenue and will be
impairment measurement, which interest rate of the loan. applicable to all contracts with
bank follows is the incurred loss customers. However, interest and
model. The bank will move from In comparison to IAS 39, the Bank fee income integral to financial
incurred loss model to ‘expected expects the impairment charge instruments and leases will
loss model’ when the Accounting under IFRS 9 to be more volatile continue to fall outside the scope
Standard Board pronounce the full than under IAS 39 and to result of IFRS 15 and will be regulated
version of IFRS 9 in Nepal. in an increase in the total level of by the other applicable standards
current impairment allowances.
Overview of Impairment on Revenue under IFRS 15 will
financial assets under IFRS-9 The brief impairment need to be recognized as goods
methodology under NFRS 9, is set and services are transferred, to
IFRS 9 will fundamentally out below: the extent that the transferor
change the loan loss impairment anticipates entitlement to goods
methodology. The standard Stage 1 – Performing and services. The standard will
will replace IAS 39’s incurred loans: when loans are also specify a comprehensive
loss approach with a forward- first recognized, the Bank set of disclosure requirements
looking expected credit loss recognizes an allowance regarding the nature, extent and
(ECL) approach. The Bank will be based on 12-month expected timing as well as any uncertainty
required to record an allowance credit losses. of revenue and corresponding
for expected losses for all loans Stage 2 – Underperforming cash flows with customers.
and other debt financial assets loans: when a loan shows a
not held at FVPL, together significant increase in credit iii. IFRS 16 Leases
with loan commitments and risk, the Bank records an
financial guarantee contracts. allowance for the lifetime The IASB issued the new standard
The allowance is based on the expected credit loss. for accounting for leases - IFRS 16
expected credit losses associated Stage 3 – Impaired loans: Leases in January 2016 but this
with the probability of default in the Bank recognizes the standard is yet to be pronounced
the next twelve months unless lifetime expected credit by the Nepal Accounting
there has been a significant losses for these loans. In Standard Board. The Bank does
increase in credit risk since addition, in Stage 3 the Bank not anticipate early adopting
origination, in which case, accrues interest income on IFRS 16 and no impact has been
the allowance is based on the the amortized cost of the evaluated.
probability of default over the life loan net of allowances.
of the asset. The new standard does not
ii. IFRS 15 Revenue from significantly change the
To calculate ECL, the Bank will contracts with Customers accounting for leases for lessors.
estimate the risk of a default However, it does require lessees
occurring on the financial In May 2014, the IASB issued to recognize most leases on their
instrument during its expected IFRS 15 Revenue from Contracts balance sheets as lease liabilities,
life. ECLs are estimated based with Customers, effective for with the corresponding right of-
use assets. Lessees must apply a year ended 32nd Asar 2075 are These estimates are based on
single model for all recognized set out below: assumptions about a number of
leases, but will have the option factors and hence actual results
not to recognize ‘short-term’ 2.11. Fair value of financial may differ, resulting in future
leases and leases of ‘low-value’ instruments changes to the provisions made.
assets. Generally, the profit
or loss recognition pattern The determination of fair values The individual impairment
for recognized leases will be of financial assets and financial provision applies to financial
similar to today’s finance lease liabilities recorded on the assets evaluated individually
accounting, with interest and Statement of Financial Position, for impairment and is based on
depreciation expense recognized for which there is no observable management’s best estimate of
separately in the statement of market price are determined the present value of the future
profit or loss. using a variety of valuation cash flows that are expected to
techniques that include the use of be received. In estimating these
2.8. Discounting mathematical models. The Bank cash flows, management makes
measures fair value using the judgments about a borrower’s
Financial assets and liabilities fair value hierarchy that reflects financial situation and the net
which are of long term nature the significance of input used in realizable value of any underlying
i.e. either receivable/payable making measurements. collateral. Each impaired asset is
after more than a year have been assessed on its merits, and the
discounted using the appropriate 2.12. Impairment losses on workout strategy and estimate
discount rate which reflects loans and advances of cash flows considered
the market rate of borrowings. recoverable.
Interest income or expenses has The impairment losses on loans
been recognized on unwinding and advances has been calculated A collective impairment provision
of the assets and liabilities as per NFRS 9 in accordance with is established for:
appropriately. incurred loss model.
groups of homogeneous
2.9. Going concern basis The Bank has applied the carve loans and advances that are
out as issued by Institute of not considered individually
The management has made Chartered Accountants of Nepal significant; and
an assessment of its ability to Note no. 5 “Incurred Loss Model groups of loans and advances
continue as a going concern and is to measure the Impairment Loss that are individually
satisfied that it has the resources on Loan and advances” which significant but that were
to continue its business for the gives the option to charge the not found to be individually
foreseeable future. Management impairment amount higher of impaired
is not aware of any material incurred loss model calculation
uncertainties that may cast doubt and as per NRB directives. These The collective provision for
upon the Bank’s ability to continue are explained in detail in Note 4.7. groups of homogeneous loans
as a going concern. Therefore, the is established using statistical
Financial Statements of the bank The Bank reviews its individually methods (such as, net flow rate
continue to be prepared on going significant loans and advances methodology, risk migration
concern basis. at each reporting date to assess analysis) or, a formula approach
whether an impairment loss based on historical loss rate
2.10. Estimates and should be provided in the experience, using the statistical
assumptions Statement of Profit or Loss. In analysis of historical data on
particular, the management’s delinquency to estimate the
Information about assumptions judgment is required in the amount of loss. Management
and estimates uncertainties that estimation of the amount and applies judgment to ensure that
have a significant risk of resulting timing of future cash flows when the estimate of loss arrived at, on
in material adjustments for the determining the impairment loss. the basis of historical information
is appropriately adjusted to of these values, rates, methods due processes in respective legal
reflect the economic conditions and hence they are subject to jurisdictions.
and portfolio factors as at the uncertainty. Details useful lives
reporting date. The loss rates are of property and equipment Information about significant
regularly reviewed against actual are disclosed in Note 4.38 areas of estimation uncertainty
loss experience. “Depreciation and Amortization”. and critical judgments in applying
accounting policies other than
In assessing the need for collective 2.15. Deferred tax assets those stated above that have
impairment, management significant effects on the amounts
considers factors such as Deferred tax assets are recognized recognized in the financial
credit quality (for example, in respect of tax losses to the extent statements are described in Note
loan to collateral ratio, level of that it is probable that future 4.28.
restructured performing loans), taxable profit will be available
portfolio size, concentrations and and can be utilized against such 2.18. Functional and
economic factors. To estimate the tax losses. Judgment is required presentation currency
required allowance, assumptions to determine the amount of
are made to define how inherent deferred tax assets that can be Items included in these Financial
losses are modeled and to recognized, based upon the likely Statements are measured using
determine the required input timing and level of future taxable the currency of the primary
parameters, based on historical profits, together with future tax- economic environment in
experience and current economic planning strategies. which the Bank operates.
conditions. The accuracy of the These Financial Statements are
provision depends on the model 2.16. Defined benefit presented in Nepalese Rupees,
assumptions and parameters obligation the Bank’s functional and
used in determining the collective presentation currency.
provisions. The cost of the defined benefit
plans are determined using an 2.19. Presentation of
2.13. Impairment of actuarial valuation. The actuarial financial statements
financial investments valuation involves making
measured at fair value assumptions about discount The assets and liabilities of the
rates, expected rates of return bank presented in the Statement
The Bank also records on assets, salary escalation rate, of Financial Position are grouped
impairment charges on equity withdrawal rate, mortality rates, by nature and listed in an order
investments when there has been etc. Due to the long-term nature that reflects their relative
a significant or prolonged decline of these plans, such estimates are liquidity and maturity pattern.
in the fair value below their cost subject to significant uncertainty.
along with the historical share 2.20. Offsetting
price movements, duration and 2.17. Provisions for
extent up to which the fair value liabilities, commitments Financial assets and financial
of an investment is less than its and contingencies liabilities are offset and the net
cost. amount reported in the Statement
The Bank may receive legal of Financial Position, only when
2.14. Useful lives of claims in the normal course of there is a legally enforceable right to
property & equipment business. Management has made offset the recognized amounts and
judgments as to the likelihood of there is an intention to settle on a
The Bank reviews the residual any claim succeeding in making net basis or to realize the assets and
values, useful lives and methods provisions. The time of concluding settle the liabilities simultaneously.
of depreciation of property, & legal claims is uncertain, as is the Income and expenses are not offset
equipment at each reporting date. amount of possible outflow of in the Statement of Profit or Loss,
Judgment of the management economic benefits. Timing and unless required or permitted by
is exercised in the estimation cost ultimately depends on the Nepalese Financial Reporting
Standards or Interpretation (issued defined benefit obligations c. Subsidiaries
by the International Financial are recognized as the
Reporting Interpretations present value of the defined Subsidiaries are entities that
Committee (IFRIC) and Standard benefit obligation, less net are controlled by the bank. The
Interpretations Committee (SIC)) total of the plan assets, plus bank is presumed to control an
and as specifically disclosed in the recognized actuarial gains, entity when it is exposed or has
Significant Accounting Policies of less recognized past service rights to variable returns from its
the Bank. cost and recognized actuarial involvement with the entity and has
losses. the ability to affect those returns
2.21. Materiality and through its power over the entity.
Aggregation 3.2. Basis of consolidation At each reporting date the Bank
reassesses whether it controls an
Each material class of similar a. Business Combination entity if facts and circumstances
items is presented separately in indicate that there are changes to
the Financial Statements. Items of The Group’s Financial Statements one or more elements of control
dissimilar nature or function are comprise consolidation of the mentioned above.
presented separately, unless they Financial Statements of the Bank
are immaterial as permitted by and its Subsidiaries in terms of The Financial Statements of
the Nepal Accounting Standard the Nepal Accounting Standard - subsidiaries are fully consolidated
– NAS 1 on ‘Presentation of NFRS 10 (Consolidated Financial from the date on which control
Financial Statements’. Statements). is transferred to the bank and
continue to be consolidated until
Notes to the Financial The Group measures goodwill as the date when such control ceases.
Statements are presented in the fair value of the consideration The Financial Statements of the
a systematic manner which transferred including the bank’s subsidiaries are prepared
ensures the understandability recognized amount of any non- for the same reporting year as
and comparability of Financial controlling interest in the acquiree, per the bank, using consistent
Statements of the bank. less the net recognized amount accounting policies.
Understandability of the Financial (generally fair value) of the
Statements is not compromised identifiable assets acquired and d. Loss of Control
by obscuring material information liabilities assumed, all measured
with immaterial information or as of the acquisition date. When The loss of control of a subsidiary is
by aggregating material items that the excess is negative, a bargain a transaction or another event
have different natures or functions. purchase gain is recognized in which a parent company
immediately in profit or loss, if sells its controlling interest in
3. Significant Accounting controlling power is acquired. a subsidiary to another party.
Policies- General
b. Non-Controlling Interest If a parent loses control of a
3.1. Basis of measurement subsidiary, the parent:
Nepal Accounting Standard 27
The financial statements have (NAS 27) defines non-controlling derecognizes the assets
been prepared under the interest as “the equity in a and liabilities of the
historical cost convention, subsidiary not attributable, former subsidiary from the
except for following material directly or indirectly, to a parent”. consolidated statement of
items stated in the Statement of The similar term "minority financial position
Financial Position: interest" was previously used recognizes any investment
in standards. Non-Controlling retained in the former
Fair value and impairment of Interest (NCI) refers to ownership subsidiary when control is lost
financial instruments of a company which does not give and subsequently accounts
Defined Benefit Obligation the shareholder the control of the for it and for any amounts
where, net liability for company. owed by or to the former
subsidiary in accordance with of financial assets that require measured in the statement
relevant IFRSs. That retained delivery of assets within the time of financial position at fair
interest is remeasured and the frame generally established by value. Changes in fair value are
remeasured value is regarded regulation or convention in the recognized in net trading income.
as the fair value on initial market place. Interest and dividend income or
recognition of a financial asset expense is recorded in net trading
in accordance with NFRS Initial measurement of income according to the terms of
9 Financial Instruments or, financial instruments the contract, or when the right to
when appropriate, the cost payment has been established.
on initial recognition of an The classification of financial
investment in an associate or instruments at initial recognition 3.4.3. Financial instruments
joint venture. depends on their purpose measured at amortized cost
recognizes the gain or loss and characteristics and the
associated with the loss of management’s intention when Financial instruments are
control attributable to the acquiring them. All financial measured at amortized cost
former controlling interest. instruments are measured where they have:
initially at their fair value plus
e. Transaction elimination on transaction costs, except in contractual terms that give
consolidation the case of financial assets and rise to cash flows on specified
financial liabilities recorded at dates, that represent solely
All the intergroup transactions fair value through profit or loss. payments of principal and
between subsidiary and parent interest on the principal
are eliminated on consolidation. 3.4.2. Classification of Financial amount outstanding; and
assets or liabilities are held within a business
3.3. Cash and cash model whose objective is
equivalents The Bank classifies its financial achieved by holding to collect
assets into the following contractual cash flows.
Cash and cash equivalents as measurement categories:
referred to in the cash flow These financial instruments are
statement comprises cash on those to be measured at fair initially recognized at fair value plus
hand, non–restricted balances value (either through other directly attributable transaction
with Nepal Rastra Bank, amounts comprehensive income, or costs and subsequently measured
due from financial institutions through profit or loss); and at amortized cost using the
and investments with an original Those to be measured at Effective Interest Rate (EIR) less
maturity of three months or less. amortized cost. impairment. The measurement
of credit impairment is based on
3.4. Financial Instruments- The classification depends on the incurred loss model described
Initial recognition and the Bank’s business model for below in Note 3.6 Impairment of
subsequent measurement managing financial assets and the financial assets.
contractual terms of the financial
3.4.1. Date of recognition assets' cash flows. Financial instruments measured at
amortized cost are included in Note
Financial Instruments, including The Bank classifies its financial 4.1 “Cash and cash equivalents”,
loans and advances to customers liabilities at amortized cost unless Note 4.2 “Due from Nepal Rastra
and balances due from customers, it has designated liabilities at fair Bank”, Note 4.3 “Placements with
are initially recognized on the value through profit or loss or is Bank and Financial Institutions”
trade date, i.e., the date that the required to measure liabilities at Note 4.6 “Loans and advances
Bank becomes a party to the fair value through profit or loss. to BFIs”, Note 4.7 “Loans and
contractual provisions of the advances to customers”, Note 4.8
instrument. This includes regular Held for trading assets and “Investment securities”.
way trades: purchases or sales liabilities are recorded and
3.4.4. Financial instruments Amounts presented in other losses are recognized in the
measured at fair value through comprehensive income are not income statement as they arise
other comprehensive income subsequently transferred to
profit or loss. Dividends on such a. Financial instruments held for
a. Debt Instruments investments are recognized in trading
profit or loss unless the dividend
Investments in debt instruments clearly represents a recovery of A financial instrument is
are measured at fair value part of the cost of the investment. classified as held for trading if it is
through other comprehensive acquired or incurred principally
income when they have: 3.4.5. Financial instruments for the purpose of selling or
measured at fair value through repurchasing in the near term,
contractual terms that give profit or loss or forms part of a portfolio of
rise to cash flows on specified financial instruments that are
dates, that represent solely Instruments measured at fair value managed together and for which
payments of principal and through profit or loss comprise: there is evidence of short-term
interest on the principal profit taking, or it is a derivative.
amount outstanding; and Instruments held for trading
are held within a business Instruments specifically b. Financial instruments
model whose objective is designated as fair value designated as measured at fair
achieved by both collecting through profit or loss on value through profit or loss
contractual cash flows and initial recognition; and
selling financial assets. Debt instruments with Upon initial recognition, financial
contractual terms that do not instruments may be designated
These debt instruments are represent solely payments of as measured at fair value through
initially recognized at fair principal and interest. profit or loss. A financial asset may
value plus directly attributable only be designated at fair value
transaction costs and subsequently Financial instruments measured through profit or loss if doing so
measured at fair value. Gains and at fair value through profit or eliminates or significantly reduces
losses arising from changes in loss are initially recognized measurement or recognition
fair value are included in other at fair value, with transaction inconsistencies (i.e. eliminates an
comprehensive income within costs recognized in the accounting mismatch) that would
a separate component of equity. income statement as incurred. otherwise arise from measuring
Impairment losses or reversals, Subsequently, they are measured financial assets or liabilities on a
interest revenue and foreign at fair value and any gains or different basis.
exchange gains and losses are
recognized in profit and loss. 3.4.6. Process of classification of financial assets and liabilities
Upon disposal, the cumulative under NFRS 9
gain or loss previously recognized
in other comprehensive income
is reclassified from equity to the
income statement.
b. Equity Instruments
Investment in equity instruments

that are not held for trading are
measured at fair value through
other comprehensive income,
where an irrevocable election has
been made by management.
Classes of Financial Instruments
The bank classifies the financial instruments into the following classes as per NFRS 9.
Classification as Assets/
Sub Class
defined by NFRS 9 Liabilities
Financial Assets Financial Assets Held for Trading Debt Securities NO
at Fair Value Equity Securities NO
Through Profit or Designated at fair value through Debt Securities NO
Loss profit and loss Equity Securities NO
Loans and Advances to Financial Institutions YES
Overdrafts YES
Loans to Credit Cards YES
Individuals Term Loans
Financial Assets
YES
Mortgage Loans YES
Loans and Advances to Customers
Financial Assets Large Corporate
Loans to YES
at Amortized Cost Customers
Corporate
Entities SMEs YES
Others YES
Investment Securities –Debt Listed NO
Unlisted NO
Other Receivables YES
Financial Assets Investment Securities -Debt Listed NO
at Fair Value Investment Securities -Equity Listed YES
through OCI Unlisted YES
Financial Financial Liabilities Held for Trading NO

Liabilities At Fair NO
Value Through Designated at fair value through profit and
Profit or Loss loss
Deposits from Banks YES
Financial Retail Customers YES
Liabilities Corporate Customers YES
Financial Deposits from
Liabilities at Customers SMEs YES
Amortized Cost Others YES
Debt Securities Issued YES
Other Financial Liabilities YES
Off- Balance Loan Commitments YES
Sheet Financial YES
Instruments Guarantees, Acceptance and Other Financial Liabilities
3.4.7. Determination of fair value used for valuation are significant, or receipts through the expected
are derived from directly or life of the financial instrument
‘Fair value’ is the price that would indirectly observable market or, when appropriate at a shorter
be received to sell an asset or paid data available over the entire period, to the net carrying amount
to transfer a liability (exit price) period of the instrument’s life. of the financial asset or financial
in an orderly transaction between Such inputs include quoted prices liability. The amortized cost of the
market participants at the for similar assets or liabilities in financial asset or financial liability
measurement date. The fair value active markets, quoted prices for is adjusted if the Bank revises its
measurement is based on the identical instruments in inactive estimates of payments or receipts.
presumption that the transaction markets and observable inputs The adjusted amortized cost is
to sell the asset or transfer the other than quoted prices such as calculated based on the original
liability takes place either: interest rates and yield curves, or latest re-estimated EIR and the
implied volatilities, and credit change is recorded as ‘Interest
In the principal market for spreads. In addition, adjustments income’ for financial assets and
the asset or liability or may be required for the condition ‘Interest expense’ for financial
In the absence of principal or location of the asset or the liabilities. The accounting
market, in the most extent to which it relates to policies for the EIR method vary
advantageous market for items that are comparable to by instruments and are further
asset or liability. the valued instrument. However, explained in Notes:
if such adjustments are based
All assets and liabilities for which on unobservable inputs which for ‘Financial Assets
fair value is measured or disclosed are significant to the entire Measured at Amortized Cost'
in the financial statements are measurement, the Bank will for ‘Financial assets measured
categorized within the fair value classify the instruments as Level at fair value through other
hierarchy, described as follows, 3. comprehensive income ’
based on the lowest level input for ‘Financial assets measured
that is significant to the fair value Level 3 – financial at fair value through other
measurement as a whole: instruments – profit or loss ’
for ‘Due from banks and loans
Level 1 - financial Those that include one or more and advances to customers’
instruments – unobservable input that is for ‘Debt securities issued
significant to the measurement as and other borrowed funds’
Those where the inputs used a whole
in the valuation are unadjusted b. Day 1 profit or loss
quoted prices from active The bank evaluates the leveling
markets for identical assets or at each reporting period on an When the transaction price
liabilities that the Bank has access instrument-by-instrument basis differs from the fair value
to at the measurement date. and reclassifies instruments of other observable current
The bank considers markets as when necessary based on the market transactions in the
active only if there are sufficient facts at the end of the reporting same instrument, or based on
trading activities with regards period. a valuation technique with the
to the volume and liquidity of variables including only data
the identical assets or liabilities The bank also considers the from observable markets, the
and when there are binding and following in measuring the fair Bank immediately recognizes
exercisable price quotes available value of financial assets the difference between the
on the balance sheet date. transaction price and fair value (a
a. Effective interest rate Day 1 profit or loss) in net trading
Level 2 - financial income. In cases where fair value
instruments – The effective interest rate (EIR) is determined using data which
is the rate that exactly discounts is not observable, the difference
Those where the inputs that are estimated future cash payments between the transaction price and
model value is only recognized transferred if, and only if, the profit or loss will not be
in the income statement when transferee has the practical ability reclassified to other category.
the inputs become observable, to sell the asset in its entirety
or when the instrument is to an unrelated third party and Reclassifications are made at fair
derecognized. is able to exercise that ability value as of the reclassification
unilaterally and without needing date. Fair value becomes the
3.4.8. De recognition of to impose additional restrictions new cost or amortized cost as
financial assets and liabilities on the transfer. The bank also applicable, and no reversals
derecognizes a financial asset, of fair value gains or losses
a. Financial Assets in particular, a loan to customer recorded before reclassification
when the terms and conditions date are subsequently made.
A financial asset (or, where have been renegotiated to the Effective interest rates for
applicable a part of a financial extent that it substantially became financial assets reclassified to
asset or part of a group of similar a new loan, with the difference financial assets measured at
financial assets) is derecognized recognized as impairment in the amortized cost are determined at
when the rights to receive cash income statement. the reclassification date. Further
flows from the asset have expired. increases in estimates of cash
The Bank also derecognizes the b. Financial Liabilities flows adjust effective interest
assets if it has both transferred rates prospectively.
the asset, and the transfer A financial liability is derecognized
qualifies for de recognition. when the obligation under the The Bank has not made any
liability is discharged, cancelled reclassification among its
The bank has transferred the or expires. Where an existing financial assets from the initial
asset if and only if, either: financial liability is replaced by recognition.
another from the same lender on
The bank has transferred its substantially different terms, or 3.4.10. Impairment of financial
contractual rights to receive the terms of an existing liability assets
cash flows from the asset; Or are substantially modified, such
It retains the rights to the an exchange or modification The bank assesses at the end of
cash flows, but has assumed is treated as de recognition of each reporting period whether
an obligation to pay the the original liability and the there is any objective evidence
received cash flows in full recognition of a new liability. The that a financial asset or group
without material delay to a difference between the carrying of financial assets is impaired.
third party under a ‘pass– value of the original financial A financial asset or group of
through’ arrangement. liability and the consideration financial assets is impaired and
paid is recognized in profit or impairment losses are incurred
A transfer only qualifies for de loss. if, and only if, there is objective
recognition if either: evidence of impairment as a
3.4.9. Reclassification of result of one or more events that
The bank has transferred Financial Instruments has occurred after the initial
substantially all the risks and recognition of the asset (an
rewards of the asset; or The bank may choose to reclassify incurred ‘loss event’) and that
The bank has neither its financial assets when and loss event (or events) has an
transferred nor retained only when, an entity changes its impact on the estimated future
substantially all the risks and business model for managing cash flows of the financial asset or
rewards of the asset, but has financial assets. When the entity group of financial assets that can
transferred control of the changes its business model all be reliably estimated.
asset. the affected financial assets
are reclassified in accordance Objective evidence that financial
In relation to the above, bank with Note 3.3. Financial assets assets are impaired can include:
considers the control to be measured at fair value through
significant financial difficulty A. Specific impairment losses through the use of an allowance
of the obligor for individually significant account and the amount of the
default or delinquency by a or specifically identified loss is recognized in “Impairment
borrower exposures charges for Loans” in the income
breach of loan covenants or statement.
conditions, restructuring of a It is the Bank’s policy to regularly
loan or advance monitor its loan portfolio. For Loans and advances together
indications that a borrower or retail and consumer lending, a with the associated allowances
issuer will enter bankruptcy, specific assessment is made on are written off when there is
the disappearance of an active an individual basis for loans that no realistic prospect of future
market for a security, are 180 days past due. For the recovery and all collateral has been
deterioration in the value of corporate and small business realized or has been transferred
collateral, portfolio impairment indicators to the Bank. If, in a subsequent
or other observable data include: year, the amount of the estimated
relating to a group of assets impairment loss increases or
such as adverse changes in the - internal rating of the decreases because of an event
payment status of borrowers borrower indicating default occurring after the impairment
in the group, or economic or near-default, was recognized, the previously
conditions that correlate with - the borrower requesting recognized impairment loss is
defaults in the group. emergency funding from the increased or reduced (but only
Bank; up to the extent of the carrying
In the case of equity investments - the borrower having past due amount had the impairment not
classified as available for- liabilities to public creditors been recognized) by adjusting
sale, objective evidence would or employees; the allowance account. If a future
additionally include a significant - a material decrease in the write–off is later recovered, the
or prolonged decline in the fair underlying collateral value recovery is credited to the “Loan
value of the instrument below where the sale of the financed Impairment allowance”.
its cost. The bank deems more asset is required to repay the
than 20% decline below cost as loan; B. Collective Impairment
“significant” and a decline for more - a material decrease in the
than 6 months as “prolonged”. borrower’s turnover or the For the purposes of a collective
loss of a major customer; evaluation of impairment,
i. Financial assets carried at - a material decrease in financial assets are grouped
amortized cost estimated future cash flows; on the basis of similar credit
- any material facility at the risk characteristics (that is,
The bank’s impairment debtor level falling beyond 90 on the basis of the product
methodology for financial assets past due; characteristics, industry, past-
carried at amortized cost, such as - a covenant breach not waived due status and other relevant
amounts due from banks, held to by the Bank. factors). Those characteristics
maturity investments comprises: are relevant to the estimation of
If there is objective evidence that future cash flows for groups of
A. Specific impairment losses an impairment loss has been such assets by being indicative
for individually significant incurred, the amount of the loss of the debtors’ ability to pay all
or specifically identified is measured as the difference amounts due according to the
exposures between the assets carrying contractual terms of the assets
amount and the present value being evaluated.
B. Collective impairment of: of estimated future cash flows
i. Individually not significant (excluding future expected Collective impairment losses
exposures credit losses that have not yet reflect impairment losses
ii. Incurred but not yet been incurred). The carrying that have been incurred in
identified losses amount of the asset is reduced the performing portfolio but
have not yet been identified by date, whether there is objective the cumulative gains and losses
either the specific or collective evidence that an investment is previously recognized in other
assessment. These loans, similar impaired. comprehensive income are not
to the ‘individually not significant’ reclassified from equity to profit
exposures, are grouped into In the case of debt instruments or loss.
smaller homogenous portfolios classified as at fair value through
by risk drivers. The methodology other comprehensive income, 3.5. Trading Assets
combines probability of default the following amortized cost
(PD), exposure at the time of information is presented in profit A financial instrument is
default (EAD) and loss given or loss: classified as trading assets if it is
default (LGD) over the loss acquired or incurred principally
emergence period (the period Interest revenue is calculated for the purpose of selling or
between the loss event and the using the effective interest repurchasing in the near term,
impairment being identified). method that is applied to or forms part of a portfolio of
The loss emergence period financial assets measured at financial instruments that are
is determined and regularly amortized cost managed together and for which
monitored by the Bank for each Foreign exchange gains and there is evidence of short-term
portfolio. losses on the amortized cost profit taking, or it is a derivative.
are recognized in profit or loss
ii. Financial assets carried at fair Impairment gains and losses 3.6. Derivative assets and
value through profit or loss are derived using the same derivative liabilities
methodology that is applied
For financial assets carried at fair to financial assets measured Derivatives are financial
value through profit or loss, the at amortized cost instruments that derive their
bank assesses at each reporting value in response to changes
date, whether there is objective The fair value gains and in interest rates, financial
evidence that an investment is losses on these financial instrument prices, foreign
impaired. assets are recognized in exchange rates. Derivatives are
other comprehensive income. categorized as trading unless
In the case of debt instruments When these financial assets they are designated as hedging
classified as at fair value through are derecognized, the instruments.
profit or loss, the bank assesses cumulative gains and losses
individually whether there is previously recognized in other All derivatives are initially
objective evidence of impairment comprehensive income are recognized and subsequently
regarding a decline in estimated reclassified (i.e., ‘recycled’) measured at fair value, with all
future cash-flows impacting the from equity to profit or loss as a revaluation gains recognized in
bank’s ability to recover all cash reclassification adjustment. income statement. Fair value
flows. is based on the quoted market
For equity instruments where price, quotes from brokers or
In case of equity instruments the initial irrevocable option dealers, or estimates based upon
changes in fair values are charged has been taken to measure the discounted expected cash flows
to statement of profit or loss. equity instruments at fair value as appropriate. All derivatives are
through other comprehensive carried as assets when fair value
iii. Financial assets carried at income, all changes in fair is positive and as liabilities when
fair value through other value are recognized in other fair value is negative.
comprehensive income comprehensive income.
3.7. Property and
For financial assets carried Dividends received are Equipment
at fair value through other recognized in the statement
comprehensive income, the of profit or loss. When these Property and equipment is
bank assesses at each reporting financial assets are derecognized, stated at cost excluding the costs
of day–to–day servicing, less initial recognition at cost. The 2058.
accumulated depreciation and cost of intangible assets acquired
accumulated impairment in value. in a business combination is Current income tax relating to
Changes in the expected useful their fair value as at the date items recognized directly in
life are accounted for by changing of acquisition. Following initial equity is recognized in equity and
the amortization period or recognition, intangible assets not in the statement of profit or
methodology, as appropriate, and are carried at cost less any loss. Management periodically
treated as changes in accounting accumulated amortization and evaluates positions taken in
estimates. any accumulated impairment the tax returns with respect to
losses. The useful lives of situations in which applicable
Subsequent expenditures are intangible assets are assessed to tax regulations are subject to
included in the asset’s carrying be either finite or indefinite. interpretation and establishes
amount or are recognized as a provisions where appropriate.
separate asset, as appropriate, 3.9. Investment Property
only when it is probable that ii. Deferred tax
future economic benefits Non-Banking Assets which are
associated with the item will flow acquired as part of recovery of Deferred tax is provided on
to the bank and the cost of the loans are classified as investment temporary differences at the
item can be measured reliably. property and are carried at cost. reporting date between the tax
The carrying amount of the The Bank’s policy is to determine bases of assets and liabilities
replaced part is derecognized. whether a repossessed asset and their carrying amounts for
All other repair and maintenance can be best used for its internal financial reporting purposes.
costs are charged to other operations or should be sold.
operating expenses during the Assets determined to be useful Deferred tax liabilities are
financial period in which they are for the internal operations are recognized for all taxable
incurred. transferred to their relevant asset temporary differences, except:
category at the repossessed value.
Depreciation on freehold land has Land and Building of repossessed Where the deferred tax
not been calculated. Depreciation collateral are classified as liability arises from the initial
on other property and equipment investment property. recognition of goodwill or
is calculated using the straight– of an asset or liability in
line method to allocate their Assets for which selling is a transaction that is not a
cost to their residual values over determined to be a better option business combination and, at
their estimated useful lives. The are transferred to assets held for the time of the transaction,
estimated useful lives are included sale at their fair value or fair value affects neither the accounting
in Note 4.38 “Depreciation and less cost to sell for non-financial profit nor taxable profit or loss
Amortization” assets at the repossession date in In respect of taxable
line with the bank’s policy. temporary differences
3.8. Goodwill and associated with investments
Intangible assets 3.10. Income tax in subsidiaries, where the
timing of the reversal of
An intangible asset is recognized i. Current tax the temporary differences
only when its cost can be can be controlled and it is
measured reliably and it is Current tax assets and liabilities probable that the temporary
probable that the expected for the current and prior years differences will not reverse in
future economic benefits that are are measured at the amount the foreseeable future
attributable to it will flow to the expected to be recovered from, or
bank. paid to, the taxation authorities. The carrying amount of deferred
The tax rates and tax laws used tax assets is reviewed at each
Intangible assets acquired to compute the amount are rates reporting date and reduced to the
separately are measured on applicable as per income tax act extent that it is no longer probable
that sufficient taxable profit will demand. Deposit from customers liability. The expense relating
be available to allow all or part are recognized when the funds to any provision is presented
of the deferred tax asset to be reaches to the banks. These are in the income statement net of
utilized. Unrecognized deferred measured at amortized cost using any reimbursement in other
tax assets are reassessed at each the effective interest rate. operating expenses.
reporting date and are recognized
to the extent that it becomes Financial instruments issued by the 3.13. Revenue Recognition
probable that future taxable bank that are not held for trading or
profit will allow the deferred tax designated at FVTPL, are classified a. Interest Income
asset to be recovered. as liabilities under ‘Debt securities
issued’ where the substance of the Interest income is recorded
Deferred tax assets and liabilities contractual arrangement results using the effective interest rate
are measured at the tax rates that in the Bank having an obligation (EIR) method. EIR is the rate
are expected to apply in the year either to deliver cash or another that exactly discounts estimated
when the asset is realized or the financial asset to the holder, or to future cash payments or receipts
liability is settled, based on tax satisfy the obligation other than by through the expected life of the
rates (and tax laws) that have the exchange of a fixed amount of financial instrument or a shorter
been enacted or substantively cash or another financial asset for a period, where appropriate, to
enacted at the reporting date. fixed number of own equity shares. the net carrying amount of the
financial asset.
Current and deferred taxes are After initial measurement,
recognized as income tax benefits deposits, debt issued and other b. Fees and Commission Income
or expenses in the income borrowings are subsequently
statement except for tax related to measured at amortized cost Fees and commission income
the fair value re measurement of using the EIR. Amortized cost is earned from services that are
available-for-sale assets, actuarial calculated by taking into account provided over a certain period
gains/losses, which are charged or any discount or premium on of time which includes fees
credited to Other Comprehensive the issue and costs that are an and commission collected from
Income. These exceptions are integral part of the EIR. issuance of letter of credit,
subsequently reclassified from guarantees, and card related
Other Comprehensive Income to An analysis of the Bank’s issued fees are recognized on time
the income statement together debt is disclosed in Note 4.24 proportion basis.
with the respective deferred loss
or gain. 3.12. Provisions c. Dividend Income
The bank only off-sets its deferred Provisions are recognized Dividend income from assets
tax assets against liabilities when when the Bank has a present is recognized when the bank’s
there is both a legal right to offset obligation (legal or constructive) right to receive the payment is
and it is the Bank’s intention to as a result of past events, and it established.
settle on a net basis. is probable that an outflow of
resources embodying economic d. Net trading Income
3.11. Deposits, debt benefits will be required to settle
securities issued and the obligation, and a reliable All the gain/loss arising from
subordinated liabilities estimate can be made of the change in fair value are recognized
amount of the obligation. When as net trading income.
Deposit from customers are the the effect of the time value of
deposits accepted by bank from money is material, the Bank e. Net income from other
the individuals, corporate entities determines the level of provision financial instrument at fair
and other organized institutions. by discounting the expected cash value through Profit or Loss
These deposits are in the form flows at a pre-tax rate reflecting
of saving, time, call, margin and the current rates specific to the Changes in fair value for the
financial instruments measured and requires an assessment of rates at the respective reporting
at fair value through profit or whether the fulfillment of the date. Non-monetary items that
loss are recognized as net income arrangement is dependent on the are measured at historical cost in
from other financial instruments use of a specific asset or assets a foreign currency are translated
at FVTPL. or whether the arrangement using the exchange rates as at the
conveys a right to use the asset. dates of the initial transactions.
3.14. Interest Expense Non-monetary items measured
Bank as a lessee at fair value in a foreign currency
Interest expense is recorded are translated using the exchange
using the effective interest rate Leases that do not transfer to rates at the date when the fair
(EIR) method. EIR is the rate the bank substantially the entire value was determined.
that exactly discounts estimated risks and benefits incidental to
future cash payments or receipts ownership of the leased items The foreign currency gain or loss
through the expected life of the are operating leases. Operating on monetary assets and liabilities
financial instrument or a shorter lease payments are recognized is the difference between
period, where appropriate, to as an expense in the income amortized costs in the functional
the net carrying amount of the statement on a straight-line basis currency at the beginning of
financial liability. over the lease term. Contingent the period, adjusted for interest
rental payable is recognized as accrued using the effective
3.15. Employee Benefits an expense in the period in which interest rate and payments during
they it is incurred. the period, and the amortized cost
a. Short Term Employee in foreign currency translated at
Benefits 3.17. Foreign currency the exchange rate at the end of
translation the period.
Short term employee benefit
obligations are measured on a. Functional and presentation Foreign exchange differences
an undiscounted basis and are currency arising on translations are
expensed as the related service recognized in profit or loss,
is provided. Benefits includes Items included in the financial except for differences arising
salaries, allowances, provident statements of each of the Bank’s on translation on equity
fund and annual staff bonus. entities are measured using the instruments measured at FVTOCI
currency of the primary economic unless the difference is due
b. Long term Employee Benefits environment in which the to impairment in which case
entity operates (‘the functional foreign currency differences
Long term employee benefit currency’).The financial that have been recognized in
obligations are measured on statements are presented in other comprehensive income are
discounted basis using the Rupees, which is the Bank’s reclassified to profit or loss.
actuarial and are expensed presentation currency.
over the service period of the All foreign exchange gains and
employees. These benefits are b. Transactions and balances losses recognized in the income
gratuity and leave encashment statement are presented on net
which are settled during the staff Transactions in foreign currencies basis in the statement of profit
resignation or completion of are translated to the functional or loss within the corresponding
service period of the employee. currency of the relevant Bank item. Foreign exchange gains and
entity at the foreign exchange losses on other comprehensive
3.16. Leases rate at the date of the transaction. income items are presented in
other comprehensive income
The determination of whether Monetary assets and liabilities within the corresponding item.
an arrangement is a lease, or denominated in foreign currencies
contains a lease, is based on the are translated to the functional As at 32nd Asar 2075, the
substance of the arrangement currency at the foreign exchange principal rates of exchange used
for translating foreign currency attributable to ordinary equity less costs to sell and its value in
balance is NPR 109.70 to USD 1 share holders of the Bank by use. Where the carrying amount of
(31st Asar 2074: NPR 103.15 to the weighted average number an asset or Cash Generating Unit
USD 1 ) of ordinary shares outstanding exceeds its recoverable amount, the
during the period. Diluted EPS asset is considered impaired and
3.18. Financial Guarantee is determined by adjusting both is written down to its recoverable
and loan commitment the profit attributable to the amount.
ordinary equity share holders
In the ordinary course of and the weighted average In assessing value in use, the
business, the bank issues number of ordinary shares estimated future cash flows
financial guarantees, consisting of outstanding, for the effects of are discounted to their present
letters of credit, guarantees and all dilutive potential ordinary value using a pre–tax discount
acceptances. Financial guarantees shares, if any. rate that reflects current market
are initially recognized in the assessments of the time value of
financial statements at fair value, 3.21. Segment Reporting money and the risks specific to the
being the premium received. The asset. In determining fair value
premium received is recognized An operating segment is a less costs to sell, an appropriate
in the income statement in net component of the Bank that valuation model is used.
fees and commission income on a engages in business activities
straight line basis over the life of from which it may earn revenue For assets excluding goodwill,
the guarantee. and incur expenses, including an assessment is made at each
revenue and expenses that relate reporting date as to whether there
3.19. Share Capital and to transactions with any of the is any indication that previously
Reserves Bank’s other components, whose recognized impairment losses
operating results are reviewed may no longer exist or may have
Share capital is increased when regularly by the chief operating decreased. If such indication exists,
dividends in form of scrip are paid to decision maker to make decisions the bank estimates the asset’s
the shareholders. Proposed bonus about resources allocated to or CGU’s recoverable amount. A
shares are not shown as increment each segment and assess its previously recognized impairment
to share capital until approval by performance, and for which loss is reversed only if there has
annual general meeting. discrete financial information been a change in the assumptions
is available. For management used to determine the asset’s
Reserves are the accumulation purpose, the bank has identified recoverable amount since the last
of profit over the years which five province as operating impairment loss was recognized.
comprises of statutory reserves segments The reversal is limited so that
and regulatory reserve as the carrying amount of the asset
formed with the direction of OTHERS does not exceed its recoverable
Nepal Rastra Bank and the amount, nor exceeds the carrying
retained earnings after the 3.22. Impairment of non- amount that would have been
allocation of statutory reserve financial assets determined, net of depreciation,
ad distribution of dividend to had no impairment loss been
shareholders. The bank assesses at each recognized for the asset in prior
reporting date whether there is years. Such reversal is recognized
3.20. Earnings per share an indication that an asset may be in the income statement.
including diluted impaired. If any indication exists,
or when annual impairment testing 3.23. Loans and advances
The Bank presents basic and for an asset is required, the bank to customers
diluted Earnings per Share estimates the asset’s recoverable
(EPS) data for its ordinary amount. An asset’s recoverable Loans and advances to customers
shares. Basic EPS is calculated amount is the higher of an asset’s include non-derivative financial
by dividing the profit or loss or Cash Generating Unit’s fair value assets with fixed or determinable
payments and are solely for the where possible, to mitigate its The Financial Statements
purpose of collecting contractual risks on financial assets. The of subsidiaries are fully
cash flows and are not quoted collateral comes in various forms consolidated from the date on
in an active market and are such as cash, securities, letters of which control is transferred
measured at amortized cost credit/guarantees, real estate, to the bank and continue to
using the effective interest rate receivables, inventories, other be consolidated until the date
(EIR) method less allowance non-financial assets and credit when such control ceases. The
for impairment. Amortized enhancements such as netting Financial Statements of the
cost is not calculated by taking agreements. The fair value of bank’s subsidiaries are prepared
into account of any discounts/ collateral is generally assessed, for the same reporting year as
premium, fees and costs on at a minimum, at inception and per the bank, using consistent
acquisition. based on the Bank’s annual accounting policies.
reporting schedule. However,
Restructured loans some collateral, for example, 3.26. Investment in
cash or securities relating to Associates
In order to maximize collection margining requirements, is
opportunities and minimize valued daily. An associate is an entity over
the number of defaults, bank which the Bank has significant
renegotiates loans to customers To the extent possible, the bank influence but not control.
in financial difficulties. Loan uses active market data for Significant influence is the power
restructure can be granted if the valuing financial assets held to participate in the financial
borrower is currently in default as collateral. Other financial and operating policy decisions
or if there is a high risk of default, assets which do not have readily of the investee but does not
there is evidence that the debtor determinable market values have control or joint control
made all efforts to pay according to are valued using models. Non- over these policies. The Bank's
the original contractual terms and financial collateral, such as investments in associates, are
it is expected that the debtor is able real estate, is valued based on accounted at cost as per NAS 28
to meet the revised terms. Revised data provided by third parties “Investment in Associates and
terms could be extended maturity, such as valuators, government Joint Ventures” and with the
changing the timing of interest published price indices, audited principles of NAS 27 “Separate
payments, interest reduction or financial statements, and other Financial Statements” and the
forgiveness etc. independent sources. carve out issued by Institute
of Chartered Accountants of
Loans subject to restructuring are 3.25. Investment in Nepal. The carve out gives
generally not derecognized and subsidiary the exemptions for equity
are considered for impairment accounting under consolidated
based on renegotiated conditions. Subsidiaries are entities that financial statements where
However, in certain cases when are controlled by the bank. The the financial statements of
the renegotiation is qualitatively bank is presumed to control an associates are not prepared
assessed as a substantial entity when it is exposed or has using uniform accounting policy
extinguishment of the rights rights to variable returns from of the bank. Equity accounting
to collect the cash flows due to its involvement with the entity is based on the profit reported
material changes in the timing and has the ability to affect those by associate entities on their
and the amount of the cash flows, returns through its power over financial statements using the
the loan is derecognized and the the entity. At each reporting date policy disclosed in the financial
renegotiated loan is recognized as the Bank reassesses whether statements.
a new loan measured at fair value. it controls an entity if facts and
circumstances indicate that 3.27. Dividend on ordinary
3.24. Collateral valuation there are changes to one or more shares
elements of control mentioned
The bank seeks to use collateral, above. Dividend on ordinary shares
are recognized as a liability and 2073) the date of transition. to the additional benefit to both
deducted from equity when lessor and lessee. This carve out
they are approved by the Bank’s NFRS 1 First Time adoption applies for FY 2017-18.
shareholders on annual general of Nepal Financial Reporting
meeting. Dividends for the year Standards allows first time ii.
Calculation of Effective
that are approved after the adopters certain exemptions Interest rate
reporting date are disclosed as from the retrospective
an event after the reporting date. application of certain NFRS. The Transaction cost and fees
bank has taken the following incurred and received in
3.28. Cash Flow Statement exemptions. obtaining deposits and lending
to customers are not included in
The cash flow statement has i. The bank has used the calculating the effective interest
been prepared using ‘The Direct previous GAAP values of rate. Those costs and fees are not
Method’, whereby gross cash equipment as deemed cost of material item and the effect of
receipts and gross cash payments on the date of transition these will not materially differ
of operating activities, finance and the same cost has in the original effective interest
activities and investing activities been considered for the rate and re-calculated effective
have been recognized. calculation of depreciation interest rate. This carve out
and amortization. applies for FY 2017-18, and FY
3.29. First time adoption of 2018-19.
Nepal Financial Reporting The Bank has taken the
Standards following carve out from the iii.
Incurred loss model to
Carve out issued by Institute measure the Impairment
As stated in Note 2.2, these are the of Chartered Accountants of Loss on Loans and advances.
bank’s first financial statements Nepal.
prepared in accordance with Bank has separately calculated
Nepal Financial Reporting i. Operating Lease in the the impairment loss on loans
Standards. The accounting financial statement of lessee and advances under incurred
policies set out in Note 3 have loss model. The details of
been applied in preparing the The bank has recognized lease impairment loss is disclosed in
Financial Statements for the payments under operating Note 4.7. Bank has applied carve
year ended 16th July 2018 (Asar lease on monthly basis as per out which mandate for providing
end 2075), the comparative the contract terms. The future loss allowance for loans and
information presented for the increase in rent amount has not advances as per the directive
year ended 15th July 2017(Asar been considered for the charge in issued by Nepal Rastra Bank.
end 2074) and in preparation the current year. The increment
of an opening NFRS based are with regards to future
Statement of Financial Position inflation adjustments and are
at 16th July 2016 (Shrawan 1 not material that will give rise
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 Bank. Interest accrued on these cash and cash equivalents too are
included in cash and cash equivaents.
Group Bank
-cash in hand 2,683,396,500 2,247,625,118 2,683,115,945 2,256,438,975
-balance with financial institution 1,621,352,977 4,014,963,693 1,135,081,941 1,870,180,343
-money at call and short notice - - - -
-other cash and cash equivalent 4,209,304,271 5,237,405,051 4,209,304,271 5,237,405,051
8,514,053,748 11,499,993,862 8,027,502,157 9,364,024,369
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 32nd Asar 2075, the minimum cash reserve requirement was 6 % (2074: 6 %) of the total rupee
deposit liabilities.
As at 32nd Asar 2075, the statutory liquidity ratio to be maintained was 12 % (2074: 12 %) of the local currency
deposit liabilities.For the purpose of calculating statutory liquidity ratio mandatory cash reserve can also be
used.Balances with Nepal Rastra Bank are carried at amortised cost in the Statement of Financial Position.
Group Bank
-statutory balance with Nepal
4,768,987,025 14,809,251,159 4,768,987,025 14,809,251,159
Rastra Bank
-securities purchased under
- - - -
resale agreement
-other deposit and receivable
- - - -
from NRB
4,768,987,025 14,809,251,159 4,768,987,025 14,809,251,159
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.
Group Bank
-placements
-with domestic B/FIs Nepal 172,737,827 115,800,000 - -
- with foreign B/FIs - 572,623,011 - 572,623,011
less: allowances for impairment - -
172,737,827 688,423,011 - 572,623,011
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. All derivatives are carried
as assets when fair value is positive and as liabilities when fair value is negative.
Group Bank
Held for trading
-interest rate swap - - - -
-currency swap - - - -
-forward exchange contract - 99,487,367 - 99,487,367
-others - - - -
Held for risk management
-Interest rate swap - - - -
-Currency swap - - - -
-forward exchange contract - - - -
-others - - - -
- 99,487,367 - 99,487,367
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
Group Bank
Treasury bills - - - -
Government bonds - - - -
NRB Bonds - - - -
Domestic Corporate bonds - - - -
Equities 207,784,950 134,169,611 - -
Other - - - -
207,784,950 134,169,611 - -
Pledged - - - -
Non-pledged 207,784,950 134,169,611 - -
207,784,950 134,169,611 - -
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 arise for the year and the previous years. Collective impairment also did not
arise for loans and advances to BFIs as no historical loss ratio exists for such loans and advances.
Loans to microfinance institutions and others include interest income accrued on such loans.
Group Bank
Loans to microfinance institutions 3,066,323,732 2,209,197,607 3,366,323,732 2,314,197,607
Others 143,874,655 40,633,325 143,874,655 40,633,325
Less: Allowances for Impairment (32,938,907) (22,492,236) (35,938,907) (23,542,236)
3,177,259,480 2,227,338,696 3,474,259,480 2,331,288,696
4.6.1: Allowances for impairment
Group Bank
Balance at Shrawan 1 22,492,236 21,966,380 23,542,236 21,966,380
Impairment loss for the year:
Charge for the year 26,211,980 3,583,055 28,161,980 4,633,055
Recoveries/reversal (15,765,309) (3,057,199) (15,765,309) (3,057,199)
Amount written off - - - -
Balance at Asar end 32,938,907 22,492,236 35,938,907 23,542,236
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.
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 is not material
to the net interest earned by the bank. As per NAS 1 these service fees are taken to the income and 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. Loan loss provisions and are
provided on the basis of percentage of total loan outstanding on the basis of their overdue days and other
criteria set out in the directive.
Staff loans which are fair valued at initial recognition are included in the balance of loans and advances
measured ar amortized cost. Loans and advances to customers include accrued interest on these loans.
Group Bank
Loan and advances measured at
91,520,125,021 79,428,846,042 90,407,063,576 78,967,076,446
amortized cost
Less: Allowances for
Impairment
Collective impairment (1,010,494,345) (993,152,255) (999,551,079) (988,693,354)
Individual impairment (534,763,423) (849,360,474) (529,416,851) (842,502,031)
Net amount 89,974,867,252 77,586,333,313 88,878,095,645 77,135,881,061
Loan and advances measured at
- -
FVTPL
Total 89,974,867,252 77,586,333,313 88,878,095,645 77,135,881,061
Impairment of loans and advances to customers under NFRS
Bank applies the principles of incurred loss model set out in NFRS 9 for 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

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 under
NFRS are as below:
Current Year Rs Previous Year Rs Transition Date Rs

Impairment Allowances under NFRS
Collective impairment 204,321,237 241,549,049 187,744,634
Individual impairment 42,122,175 217,853,765 175,687,253
Total 246,443,412 459,402,814 363,431,887
Impairment Allowances under NRB 1,528,967,930 1,831,195,386 1,600,100,376
4.7.1 Analysis of Loans and Advances – By Product
Group Bank
Product
Term loans 13,415,213,440 11,317,839,939 13,415,213,440 11,317,839,939
Overdraft 23,017,979,048 21,986,795,201 23,017,979,048 21,986,795,201
Trust receipt/Import loans 5,704,000,311 1,306,462,408 5,704,000,311 1,306,462,408
Demand and other working
20,327,086,084 16,654,486,163 20,327,086,084 16,654,486,163
capital loans
Personal residential loans 8,603,201,968 7,856,953,786 8,603,201,968 7,856,953,786
Real estate loans 3,547,936,730 3,759,845,278 3,547,936,730 3,759,845,278
Margin lending loans 1,879,418,081 2,021,608,924 1,879,418,081 2,021,608,924
Hire purchase loans 6,931,406,832 6,090,424,570 6,931,406,832 6,090,424,570
Deprived sector loans 1,308,557,548 1,412,838,497 1,308,557,548 1,412,838,497
Bills purchased - 1,518,662,613 - 1,518,662,613
Staff loans 347,742,614 330,306,955 347,742,614 330,306,955
Other 6,231,106,194 4,996,743,053 5,128,446,964 4,539,697,757
Sub total 91,313,648,850 79,252,967,389 90,210,989,620 78,795,922,093
Interest Receivable 206,476,171 175,878,653 196,073,956 171,154,352
Grand total 91,520,125,021 79,428,846,041 90,407,063,576 78,967,076,445
4.7.2 Analysis of loan and advances – By Currency
Group Bank
Nepalese rupee 87,018,797,640 76,424,300,750 85,916,138,410 75,967,255,454
Indian rupee - -
United State dollar 4,294,851,210 2,828,666,639 4,294,851,210 2,828,666,639
Great Britain pound - - - -
Euro - - - -
Japanese yen - - - -
Chinese Yuan - - - -
Other - - - -
Sub total 91,313,648,850 79,252,967,389 90,210,989,620 78,795,922,093
4.7.3 Analysis of loan and advances – By Collateral
Group Bank
Secured
Movable/immovable assets 88,168,750,759 44,043,319,609 88,168,750,759 44,043,319,609
Gold and silver - - - -
Guarantee of domestic B/FIs - 91,856,000 - 91,856,000
Government guarantee - - - -
Guarantee of international
- - - -
rated bank
Collateral of export document - - - -
Collateral of fixed deposit
561,636,210 81,409,260 561,636,210 81,409,260
receipt
Collateral of Government
169,747,083 - 169,747,083 -
securities
Counter guarantee 2,536,178 - 2,536,178 -
Personal guarantee 44,994,909 - 44,994,909 -
Other collateral 2,365,983,711 35,036,382,520 1,263,324,481 34,579,337,224
Sub total 91,313,648,850 79,252,967,389 90,210,989,620 78,795,922,093
Unsecured - - - -
Grand Total 91,313,648,850 79,252,967,389 90,210,989,620 78,795,922,093
4.7.4 Allowances for Impairment
Specific allowances for impairment
Group Bank
Balance at Shrawan 1 1,842,512,730 1,605,514,340 1,831,195,386 1,600,100,376
Impairment loss for the year: - - - -
Charge for the year 232,167,192 317,733,737 227,194,698 311,830,356
Recoveries/reversal during the year (529,422,154) (331,832,764) (529,422,154) (331,832,764)
Write-offs - - - -
Exchange rate variance on foreign
- - - -
currency impairment
Other movement - 251,097,418 - 251,097,418
Balance at Asar end 1,545,257,768 1,842,512,730 1,528,967,930 1,831,195,386
Collective allowances for
impairment
Balance at Shrawan 1 - - - -
Impairment loss for the year: - - - -
Charge for the year - - - -
Group Bank
Recoveries/reversal during the year - - - -
Exchange rate variance on foreign
- - - -
currency impairment
Other movement - - - -
Balance at Asar end - - - -
Total Allowances for impairment 1,545,257,768 1,842,512,730 1,528,967,930 1,831,195,386
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 and units of
mutual funds and others. Investment securities 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 funds investments
are recognised in other omprehensive income as fair value change.
Group Bank
Investment securities measured
15,398,903,714 9,523,087,237 15,398,903,714 9,523,087,236
at amortized cost
Investment securities measured
934,130,568 645,608,710 921,749,118 631,505,122
as at FVTOCI
16,333,034,282 10,168,695,947 16,320,652,832 10,154,592,358
4.8.1. Investment securities measured at amortized cost
Group Bank
-debt securities - -
-government bonds 8,278,705,719 6,701,341,219 8,278,705,719 6,701,341,218
-government treasury bills 7,120,197,995 2,821,746,018 7,120,197,995 2,821,746,018
-nepal rastra bank bonds - - - -
-nepal rastra bank deposit
- - -
instruments
15,398,903,714 9,523,087,237 15,398,903,714 9,523,087,236
Less: specific allowances for
- - - -
impairment
Total 15,398,903,714 9,523,087,237 15,398,903,714 9,523,087,236
4.8.2. Investment in equity measured at fair value through other comprehensive income
Group Bank
Equity Instruments
-unquoted equity instruments 718,087,062 265,587,062 718,087,062 265,587,062
-quoted equity instruments 57,668,674 85,425,120 57,668,674 85,425,120
Mutual Funds 158,374,832 294,596,528 145,993,382 280,492,940
Total 934,130,568 645,608,710 921,749,118 631,505,122
4.8.3. Information relating to investmennt in quoted equities
Group Bank
Unit Cost Fair Value Unit Cost Fair Value Unit Cost Fair Value Unit Cost Fair Value
QUOTED EQUITY SHARES
Agricultural Development Bank Ltd. 16,458 6,101,340 5,167,812 6,628 4,316,155 4,201,272 - - - - - -
API Power Company Ltd. 743 270,264 211,012 27 2,600 14,715 - - - - - -
Arun Valley Hydropower Dev Co. Ltd. 7,344 1,778,150 1,123,632 4,404 1,273,693 1,215,504 - - - - - -
Bank of Kathmandu Ltd. 4,396 1,748,128 1,160,544 309 1,128,526 1,114,436 - - - - - -
Butwal Power Company Ltd. 57,180 28,738,687 26,131,260 753 500,310 466,860 - - - - - -
Civil Bank Ltd 15,330 2,478,558 2,345,490 - - - - - - - - -
Century Commercial Bank Ltd. 525 113,166 88,725 - - - - - - - - -
Chilime Hydro Power Company Ltd. 11,446 10,190,832 9,042,340 17,017 18,986,438 13,579,566 - - - - - -
Citizens Bank International Ltd. 7,271 2,770,164 1,715,956 1,845 2,770,164 2,725,859 - - - - - -
Citizen Investment Trust 1,994 5,263,162 4,985,000 - - - - - - - - -
Chhimek Laghubitta Bikas Bank Ltd. 3,317 2,865,908 2,909,009 - - - - - - - - -
Crystal Finance Ltd. 50 5,000 5,000 - - - - - -
Deprosc Development Bank Ltd 7,034 7,109,665 5,275,500 - - - - - - - - -
Deva Bikas Bank Ltd. 11,495 2,296,405 1,482,855 5,000 1,583,550 1,295,000 - - - - - -
Dibyashwari Hydropower Ltd. 11 1,100 2,486 - - - - - -
Everest Bank Ltd. 4,229 4,283,807 2,803,827 1,968 2,890,789 2,662,704 - - - - - -
First Microfinace Bittiya Santha Ltd. 1,228 727,316 663,120 - - - - - - - - -
Forward Community Bittiya Sanstha Ltd. 941 2,124,633 2,089,020 26 2,600 83,746 - - - - - -
Group Bank
Gurans Life Insurance Co. Ltd. 19,178 5,192,860 16,972,530 18,178 4,156,345 18,541,560 15,986 1,535,385 14,147,610 15,986 1,535,385 16,305,720
Gurkhas Finance Ltd. 14,122 2,824,483 1,496,932 7,548 1,747,160 1,366,188 - - - - - -
Himalayan Bank Limited 1,887 1,468,864 1,039,737 1,510 1,468,864 1,337,860 - - - - - -
ICFC Finance Company Ltd. 2,054 437,758 353,288 49 15,360 14,112 - - - - - -
Janata Bank Nepal Ltd. 19,187 3,879,447 3,012,359 5,000 1,508,250 1,420,000 - - - - - -
Kabeli Bikas Bank Limited 2,978 1,241,424 702,808 1,983 1,038,376 1,050,990 - - - - - -
Kanchan Development Bank Ltd. 29 8,574 5,916 26 8,574 7,046 - - - - - -
Khani Khola Hydropower- Ordinary - - - 16 1,600 3,328 - - - - - -
Kumari Bank Ltd. 6,125 1,899,758 1,218,875 4,104 1,515,963 1,342,008 - - - - - -
Mahila Sahayatra Microfinance Bittiya 705 822,864 500,550 598 744,595 693,680 - - - - - -
Sanstha Ltd.
Manjushree Finance Ltd. 1,869 265,737 218,673 - - - - - - - - -
Machhapuchchhre Bank Ltd. 7,512 2,212,204 1,570,008 1,070 900,792 886,710 - - - - - -
Mega Bank Ltd. - - - 721 295,982 330,218 - - - - - -
Metro Development Bank Ltd. - - - 96 8,494 31,392 - - - - - -
Mission Development Bank Ltd. 6,660 1,837,550 1,178,820 - - - - - - - - -
Mithila Laghubitta Bikas Bank Ltd. 1 786 1,015 15 1,337 19,365 - - - - - -
Muktinath Bikas Bank Ltd. 343 218,052 129,654 203 209,851 197,113 - - - - - -
National Hydropower Co Ltd. 12,370 1,178,008 1,063,820 - - - - - - - - -
National Life Insurance (Ordinary Share) 26,171 9,515,257 20,910,629 17,824 7,030,544 41,340,475 20,349 2,492,853 16,258,851 16,109 2,492,853 37,050,700
NB Insurance Co. Ltd. 1,150 1,017,668 1,023,500 4,000 2,795,893 4,020,000 - - - - - -
Nepal Bangladesh Bank Ltd. 102 22,968 21,828 1 100 402 - - - - - -
National Microfinance Bittiya Sanstha - - - 19 1,900 1,900 - - - - - -
Nepal Bank Ltd. 29,122 11,234,215 8,183,282 12,203 7,686,661 7,095,051 - - - - - -
Nepal Grameen Bikas Bank Ltd. 8,340 6,528,152 5,112,420 - - - - - - - - -
Nepal Insurance Company Ltd. 2,530 1,706,386 1,664,740 815 1,113,377 1,165,450 - - - - - -
Nepal Investment Bank Ltd. (Promoter) 25,790 15,470,316 14,055,550 20,108 15,470,316 15,003,304 - - - - - -
Nepal Life Insurance Co. Ltd 9,821 10,888,433 10,312,050 2,377 2,687,550 5,105,796 2,976 2,366,925 3,124,800 2,096 2,366,925 4,502,208
Nepal SBI Bank Ltd. 57 31,632 28,443 - 2,837 2,837 - - - - - -
NMB Bank Ltd. 1,305 696,756 467,190 869 997,128 984,178 - - - - - -
Nepal Doorsanchar Company Ltd. 15,035 10,518,821 10,840,235 18,075 12,221,810 12,200,625 13,115 9,014,195 9,455,915 13,115 9,014,195 8,852,625
Oriental Hotel Ltd. 12,770 6,897,427 6,653,170 - - - - - - - - -
Prime Commercial Bank Ltd. 5,395 1,959,435 1,548,365 4,248 1,957,776 1,788,408 - - - - - -
Prabhu Bank Limited 11,843 3,970,536 2,214,641 8,459 3,632,136 3,434,354 - - - - - -
Premier Insurance Company Ltd. 179 261,413 201,375 500 827,252 845,000 - - - - - -
Rastriya Beema Company Ltd-Promoter 1,070 13,093,096 10,649,710 - - - - - - - - -
Global IME Microfinance Bittiya Sanstha 798 904,106 995,904 48 51,411 91,200 - - - - - -
Ridhi Hydropower Co. Ltd. 1,000 146,860 123,000 - - - - - - - - -
RSDC- Ordinary Share 5,036 3,403,233 2,794,980 16 1,575 47,375 - - - - - -
RMDC Laghubitta Bittiya Sanstha Ltd 1,758 717,537 1,147,974 1758 717,537 710,602 794 518,482 756 585,900
Sahara Bikas Bank Ltd. 158 12,947 72,680 801 1,647 606,600 - - - - - -
Sajha Bikas Bank Ltd. - 354 35,400 77,526 - - - - - -
Sana Kisan Bikas Bank Ltd. 625 839,825 725,000 - - - - - - - - -
Sanima Bank Ltd. 13,159 5,266,077 4,263,516 6,182 3,120,601 2,664,442 - - - - - -
Siddhartha Bank Ltd. 16,110 7,932,269 4,833,000 8,737 7,800,969 6,762,161 - - - - - -
Standard Chartered Bank Ltd. 3,833 3,326,626 2,893,915 - - - - - - - - -
Sewa Bikas Bank Ltd. 12,133 2,475,500 1,747,152 10,000 2,325,500 3,090,000 - - - - - -
Shine Resunga Development Bank Ltd. 4,375 1,442,415 1,185,625 - - - - - - - - -
Shrijana Finance Co. Ltd. 2,070 603,333 484,380 - - - - - - - - -
Sindhu Bikas Bank Ltd. 114 27,061 14,934 60 22,261 21,960 - - - - - -
Soaltee Hotel Ltd. 2,550 697,267 619,650 - - - - - - - - -
Sunrise Bank Ltd. 45,650 18,553,809 10,499,500 27,963 15,929,920 12,524,609 - - - - - -
Surya Life Insurance Co. Ltd. 9,639 6,722,312 5,783,400 4,784 5,526,447 5,118,880 - - - - - -
Swadeshi Laghubitta Bittiya Sanstha Ltd. - 12 1,200 1,200 - - - - - -
Synergy Hydropower-Ordinary Share 1,501 252,533 186,124 147 14,700 35,721 - - - - - -
United Insurance Ltd. 470 464,096 448,850 880 1,201,191 1,258,400 - - - - - -
Vibor Bikas Bank Ltd. - - - 120 12,000 20,160 - - - - - -
Group Bank
Taragoan Regency Hotel 2,690 799,737 737,060 - - - - - - - - -
WOMI Microfinance Bittiya Sanstha Ltd. 1 100 1,385 38 34,939 75,202 - - - - - -
NLG Insurance Company Ltd (O) 931 - 865,830 745 - 1,106,325 931 865,830 745 1,106,325
NLG Insurance Company Ltd (P) 28,462 1,050,000 13,234,830 22,770 1,050,000 16,906,725 28,462 1,050,000 13,234,830 22,770 1,050,000 16,906,725
United Modi Hydropower 337 33,700 57,964 337 33,700 114,917 337 33,700 57,964 337 33,700 114,917
Laxmi Laghubittiya Sanstha Ltd 4 - 4,392 - - - 4 - 4,392 - - -
251,832,407 244,268,260 141,388,743 198,830,501 16,493,057 57,668,674 16,493,058 85,425,120
4.8.4. Information relating to investmennt in unquoted equities
Group Bank
UNQUOTED EQUITY
SHARES
Nepal Reinsurance Co. Ltd 632,944 63,294,393 63,294,393 632,944 63,294,393 63,294,393 421,963 42,196,262 42,196,262 421,963 42,196,262 42,196,262
Nepal Clearing house ltd 64,308 6,430,800 6,430,800 64,308 6,430,800 6,430,800 64,308 6,430,800 6,430,800 64,308 6,430,800 6,430,800
ICRA Nepal Ltd 7,600 760,000 760,000 7,600 760,000 760,000 7,600 760,000 760,000 7,600 760,000 760,000
National Banking Training
Ins P Ltd 12,000 1,200,000 1,200,000 12,000 1,200,000 1,200,000 12,000 1,200,000 1,200,000 12,000 1,200,000 1,200,000
Nepal Electronic Payment
System 150,000 15,000,000 15,000,000 150,000 15,000,000 15,000,000 150,000 15,000,000 15,000,000 150,000 15,000,000 15,000,000
Reliable Nepal Life Insur-
ance Co 2,000,000 200,000,000 200,000,000 2,000,000 200,000,000 200,000,000 2,000,000 200,000,000 200,000,000 2,000,000 200,000,000 200,000,000
CARE Ratings Nepal Ltd 25,000 2,500,000 2,500,000 - - - 25,000 2,500,000 2,500,000 - - -
Nepal Infrastructure Ltd 4,500,000 450,000,000 450,000,000 - - - 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 - - - - - -
740,185,193 740,185,193 287,685,193 287,685,193 718,087,062 718,087,062 265,587,062 265,587,062
4.8.5. Information relating to investmennt in quoted units of mutual funds
Group Bank
Global IME
Samunnat Yojana-I 16,480,328 164,803,280 133,569,977 15,230,328 152,303,280 154,959,542 13,980,328 139,803,280 122,607,477 13,980,328 139,803,280 142,459,542
Nabil Balance Fund - - - 1,426,041 14,260,410 28,093,008 - - - 1,426,041 14,260,410 28,093,008
Laxmi Value Fund 34,443 344,430 353,041 1,274,243 12,742,430 15,609,477 34,443 344,430 353,041 1,274,243 12,742,430 15,609,477
NMB Sulab
Investment Fund 1,332,498 13,324,980 15,390,352 1,548,498 15,484,980 19,356,225 1,332,498 13,324,980 15,390,352 1,548,498 15,484,980 19,356,225
Siddhartha
Investment Growth - - - 2,900,000 29,000,000 67,135,000 - - - 2,900,000 29,000,000 67,135,000
NMB Hybrid Fund 829,479 8,290,154 8,037,652 804,477 8,044,750 7,996,501 788,703 7,887,010 7,642,513 788,701 7,887,010 7,839,688
Nabil Equity Fund - - - 11,264 112,640 112,640 - - - - - -
186,762,844 157,351,021 231,948,490 293,262,393 161,359,700 145,993,382 219,178,110 280,492,940
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.
Group Bank
Current Tax Assets
Current year income tax assets 1,040,358,579 985,400,330 1,010,327,239 951,113,247
Tax assets of prior periods - - - -
Current Tax Liabilities - - - -
Current year income tax
liabilities 920,657,758 912,958,788 903,324,893 889,367,811
Tax liabilities of prior periods 45,190,884 - 45,190,884 -
Net tax assets / (liabilities) 54,509,937 72,441,541 61,811,462 61,745,436
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.
The results of the subsidiaries acquired or disposed of during the year are included in the consolidated
income statement from the effective acquisition date or up to the effective date on which control ceases, as
appropriate.
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.
The integration of the subsidiaries into the consolidated financial statements is based on consistent accounting
and valuation methods for similar transactions and other occurrences under similar circumstances. During
the year two subsidiaries of the bank namely Reliable Capital Ltd and Global IME Capital Ltd were merged as
a single entity to be Global IME Capital Ltd. There has been no changes in the control in the Global IME Capital
Ltd. However the holding on Global IME Ltd has been changed from 60% to 75% due to the acquisition of
100% subsidiary Reliable Capital Ltd by Global IME Capital Ltd. The combinations has resulted in recognition
of goodwill to the bank in consolidated financial statement.
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.
Group Bank
Investment in quoted subsidiaries - - 54,775,000 54,775,000
Investment in unquoted subsidiaries - - 165,000,000 165,000,000
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
Current Year Previous Year

Units Cost Fair Value Units Cost Fair Value
GLOBAL IME LAGHUBITTA BITTIYA 672,350 54,775,000 403,410,000 593,250 54,775,000 563,587,500
SANSTHA LTD
54,775,000 403,410,000 54,775,000 563,587,500
4.10.2. Investment in unquoted subsidiaries

GLOBAL IME CAPITAL LIMITED 1,650,000 165,000,000 165,000,000 600,000 60,000,000 60,000,000
RELIABLE CAPITAL LIMITED - - - 1,050,000 105,000,000 105,000,000
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

Global IME Capital Ltd 75% 60%
Reliable Capital Ltd - 100%
Global IME Laghubitta Bittiya Sanstha Ltd 70% 70%
4.10.4. Non Controlling interest of the subsidiaries
Current Year
GILBSL GICL
Equity interest held by NCI (%) 30% 25%
Profit/(loss) allocated during the year 5,866,438 1,815,384
Accumulated balances of NCI as on Asar end 2075. 52,471,733 63,911,368
Dividend paid to NCI - -
Non Controlling interest of the subsidiaries
Previous Year
GILBSL GICL RCL
Equity interest held by NCI (%) 30% 40% 0%
Profit/(loss) allocated during the year 3,828,044 15,603,443 -
Accumulated balances of NCI as on Asar end 2074 29,333,466 63,747,035 -
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 class “D” 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
associate 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 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 unquoted associate i.e. IME Life Insurance Company Ltd. is based on the profit reported
by the management as statutory audit of the associate has not been completed at the date of approval of the
Bank’s financial statements.
Group Bank
Investment in quoted associates 150,313,646 94,254,295 98,057,200 63,837,500
Investment in unquoted associates 209,414,757 201,076,265 200,000,000 200,000,000
Total investment 359,728,403 295,330,560 298,057,200 263,837,500
Less: Impairment allowances - - - -
Net carrying amount 359,728,403 295,330,560 298,057,200 263,837,500
4.11.1. Investment in quoted associates

FIRST MICROFINANCE DEV
1,026,590 84,057,200 117,680,799 595,124 49,837,500 68,243,360
BANK LIMITED
MERO MICRO FINANCE BITTYA
200,200 14,000,000 32,632,847 154,000 14,000,000 26,010,935
SANSTHA LTD
98,057,200 150,313,646 63,837,500 94,254,295
4.11.2. Investment in unquoted associates

IME LIFE INSURANCE CO. LTD 2,000,000 200,000,000 209,414,756 2,000,000 200,000,000 201,076,265
200,000,000 209,414,756 200,000,000 201,076,265
4.11.3. Information relating to associates of the Bank
Percentage of ownership held by Bank

FIRST MICROFINANCE DEV BANK LIMITED (O) 4.07% 4.07%
FIRST MICROFINANCE DEV BANK LIMITED (P) 10.93% 10.93%
MERO MICRO FINANCE BITTYA SANSTHA LTD (P) 7.50% 7.50%
IME LIFE INSURANCE CO. LIMITED 10.00% 10.00%
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.
Group Bank
Investment properties measured at
fair value
Balance as on Shrawan 1 - - - -
Additions during the year - - - -
Disposal during the year - - - -
Group Bank
Net changes in fair value during the
- - - -
year
Adjustment /transfer - - - -
Net Amount - - - -
Investment properties measured at
cost
Balance as on Shrawan 1 144,690,079 146,707,979 144,690,079 146,707,979
Addition during the year 51,502,000 49,285,000 51,502,000 49,285,000
Disposal during the year (104,275,000) (51,703,000) (104,275,000) (51,703,000)
Adjustment/transfer - 400,100 - 400,100
Accumulated depreciation - - -
Accumulated impairment loss - 400,100 - 400,100
Net Amount 91,917,079 144,690,079 91,917,079 144,690,079
Total 91,917,079 144,690,079 91,917,079 144,690,079
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 32nd Asar 2075 (31st Asar 2074: 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.
Change in Estimates
Because of uncertainties inherent in business activities, many items in financial statement cannot be measured
with precision but can only be estimated. The estimation involves judgments based on the latest available
reliable information. The use of reasonable estimates is an essential part of financial statements and does not
undermine their reliability.
During the year the bank had revised its estimated residual value of all the property and equipment as below:
Property & Equipment Previous Estimate Revised Estimate

Vehicle 30% of Purchase Value Rs. 1
Building 10% of Purchase Value Rs. 1
Computer 5% of Purchase Value Rs. 1
Machinery including ATMs 5% of Purchase Value Rs. 1
Office Equipment 10% of Purchase Value Rs. 1
Furniture- Wooden 10% of Purchase Value Rs. 1
Furniture- Metal 20% of Purchase Value Rs. 1
The change in estimates by the management is as per the provisions of NAS 8 “ Accounting policies,Changes
in accounting estimates and errors”.
Group
Office Motor Leasehold Total Asar 31
Cost: Land Buildings Machinery Capital WIP Total
Equipment Vehicles Improvement 2074
Rs Rs Rs Rs Rs Rs Rs Rs
As on Sawan 1, 2074 386,834,460 2,497,355 145,256,369 537,127,887 305,591,124 289,811,637 1,363,046 1,668,481,877 1,420,591,690
Additions 54,990,000 220,609,836 36,380,789 208,864,813 107,204,034 75,372,194 680,773 704,102,439 142,345,862
Revaluation - - - - - - - - -
Transfer from Merger - - - - - - - - 126,132,173
Disposals - - (4,409,448) (13,507,384) (30,616,959) (4,249,186) - (52,782,977) (20,587,848)
Balance on Asar end 2075 441,824,460 223,107,191 177,227,710 732,485,316 382,178,199 360,934,645 2,043,819 2,319,801,340 1,668,481,877
Accumulated Depreciation
As on Sawan 1, 2074 - 23,413 103,834,910 358,442,430 127,185,081 165,054,512 - 754,540,346 576,039,058
Depreciation charge for
- 4,658,538 19,598,170 89,887,183 75,258,618 47,144,699 - 236,547,209 130,469,556
the year
Disposals - - (4,339,962) (10,147,724) (18,202,643) - - (32,690,329) (12,854,011)
Balance on Asar end 2075 - 4,681,951 119,093,118 438,181,889 184,241,056 212,199,211 - 958,397,226 754,540,350
Capital WIP - 150,019,812
Net book value: - - - - - - - - -
As on Sawan 1, 2073 371,577,204 - 33,223,627 154,910,019 141,911,193 127,794,478 115,787,951 945,204,472 -
As on Asar 31, 2074 386,834,460 2,473,942 41,421,458 178,685,457 178,406,043 124,757,125 1,363,046 1,064,642,821 -
As on Asar 31, 2075 441,824,460 218,425,240 58,134,591 294,303,427 197,937,143 148,735,433 2,043,819 1,361,404,114 -
Bank
Office Motor Leasehold Total Asar 31,

Cost: Land Buildings Machinery Improvement Capital WIP Total
Equipment Vehicles 2074
Rs Rs Rs Rs Rs Rs Rs
As on Sawan 1, 2074 375,388,816 2,497,355 137,316,779 523,121,854 296,733,480 287,058,983 - 1,622,117,267 1,385,680,460
Additions 54,990,000 220,609,836 35,188,639 205,812,291 103,828,034 75,142,694 - 695,571,494 130,892,482
Revaluation - - - - - - - - -
Disposals - - (4,409,448) (13,410,787) (30,616,959) (4,249,186) - (52,686,380) (20,587,848)
Balance on Asar end 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
Accumulated Depreciation
As on Sawan 1, 2074 - 23,413 100,359,209 351,728,692 125,407,583 163,953,450 - 741,472,347 566,528,446
Depreciation charge for - 4,658,538 18,335,418 87,813,992 74,072,817 46,795,256 - 231,676,021 126,912,165
the year
Disposals - - (4,339,962) (10,074,113) (18,202,643) - - (32,616,718) (12,854,011)
Balance on Asar end 2075 - 4,681,951 114,354,665 429,468,571 181,277,757 210,748,706 - 940,531,650 741,472,347
Capital WIP - 150,019,812
Net book value: - - - - - - - - -
As on Sawan 1, 2073 371,577,204 - 29,330,085 151,155,817 141,496,553 125,592,355 115,787,951 934,939,965 -
As on Asar 31, 2074 375,388,816 2,473,942 36,957,570 171,393,162 171,325,897 123,105,533 - 1,030,664,732 -
As on Asar 31, 2075 430,378,816 218,425,240 53,741,305 286,054,787 188,666,798 147,203,785 - 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.
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
current 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’.
Group
Software
Particulars Goodwill Other Total Asar 31
Purchased Developed Total
2074
As on Shrawan 1, 2074 - 92,260,566 - - 92,260,566 76,334,809
Additions - 15,933,131 - - 15,933,131 8,590,684
Transfer from Merger - - - - - 7,353,303
Goodwill on consolidation 3,750,000 - - - 3,750,000 -
Disposals - - - - - (18,230)
Balance on Asar end 2075 3,750,000 108,193,697 - - 111,943,697 92,260,566
Accumulated Amortization
As on Shrawan 1, 2074 - 60,967,197 - - 60,967,197 42,388,971
Amortization for the year - 12,951,905 - - 12,951,905 13,704,438
Disposals - - - - - -
Balance on Asar end 2075 - 73,919,102 - - 73,919,102 60,967,196
Net book value:
As on Shrawan 1, 2073 - 33,068,455 - - 33,068,455 -
As on Asar 31, 2074 - 31,293,369 - - 31,293,369 -
As on Asar 31, 2075 3,750,000 34,274,595 - - 38,024,595 31,293,370
Bank
Software Total Asar 31
Particulars Goodwill Other Total
Purchased Developed 2074
Rs Rs Rs
As on Shrawan 1, 2074 - 87,966,666 - - 87,966,666 72,670,319
Additions - 15,284,231 - - 15,284,231 7,961,274
Disposals - - - - - (18,230)
Accumulated Amortization
As on Shrawan 1, 2074 - 59,235,502 - - 59,235,502 41,408,198
Transfer from Merger - - - - 4,873,788
Amortization for the year - 12,068,960 - - 12,068,960 12,953,515
Disposals - - - - -
Net book value:
As on Shrawan 1, 2073 - 31,262,121 - - 31,262,121 -
As on Asar 31, 2074 - 28,731,164 - - 28,731,164 -
As on Asar 31, 2075 - 31,946,435 - - 31,946,435 28,731,165
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.
Group Bank
Current Year Current Year
Deferred Tax Net Deferred Tax Deferred Tax Net Deferred

Deferred
Tax Assets/ Deferred Tax Assets/
Tax Assets Liabilities (Liabilities) Assets Liabilities (Liabilities)
Deferred tax on temporary differences on

Loan and Advance to B/FIs - - - - - -
Loans and advances to customers - - - - - -
Interest receivable on loans to customers - 3,334,628 (3,334,628) - - -
Investment properties - - - - - -
Investment securities - 7,825,360 (7,825,360) - 7,742,790 (7,742,790)
Property & equipment - (54,171,927) 54,171,927 40,969,909 - 40,969,909
Employees' defined benefit plan 145,252,565 - 145,252,565 144,619,011 - 144,619,011
Lease liabilities - - - - - -
Provisions - - - - - -
Other temporary differences 20,276 - 20,276 - - -
Deferred tax on temporary differences 145,272,841 (43,011,939) 188,284,780 185,588,920 7,742,790 177,846,130
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, 2075 188,284,780 177,846,130
Deferred tax (asset)/liabilities as on Shrawan 1, 2074 2,940,002 907,696
Origination/(Reversal) during the year 185,344,778 (176,938,434)
Deferred tax expense/(income) recognized in profit or loss - (137,902,491)

Deferred tax expense/(income) recognized in other comprehensive income - (39,035,942)
Deferred tax expense/(income) recognized in directly in equity - -
Group Bank
Previous Year Previous Year
Net Deferred Net Deferred
Deferred Tax Deferred Tax Deferred Tax Deferred Tax
Tax Assets/ Tax Assets/
Assets Liabilities Assets Liabilities
(Liabilities) (Liabilities)
Deferred tax on temporary differences on
Loan and Advance to B/FIs - - - - - -
Loans and advances to customers - - - - - -
Interest receivable on loans to customers - 57,133,713 (57,133,713) - 55,716,423 (55,716,423)
Investment properties - 43,407,024 (43,407,024) - 43,407,024 (43,407,024)
Investment securities - 39,904,807 (39,904,807) - 39,136,736 (39,136,736)
Property & equipment 13,996,873 - 13,996,873 10,199,195 - 10,199,195
Employees' defined benefit plan 118,842,857 - 118,842,857 118,443,145 - 118,443,145
Lease liabilities - - - - - -
Other temporary differences 10,545,815 - 10,545,815 10,525,539 - 10,525,539
Deferred tax on temporary differences 143,385,545 140,445,544 2,940,002 139,167,879 138,260,183 907,696
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 31, 2074 2,940,002 907,696
Deferred tax (asset)/liabilities as on Shrawan 1, 2074 (2,919,405) (3,115,971)
Origination/(Reversal) during the year 5,859,407 4,023,667

Deferred tax expense/(income) recognized in profit or loss - (18,119,192)
Deferred tax expense/(income) recognized in other comprehensive income - 13,411,162
Deferred tax expense/(income) recognized in directly in equity - (120,030)
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.
Group Bank
Assets held for sale - - - -
Other non-banking assets - - - -
Bills receivable - - - -
Account receivables 626,568,409 296,559,869 590,729,196 252,867,552
Accrued Income - - - -
Group Bank
Prepayments and deposit 114,304,525 186,592,319 113,838,770 163,818,276
Income tax deposit 20,574,926 17,364,926 20,574,926 17,364,926
Deferred employee expenditure 430,538,465 344,565,793 430,538,465 344,565,793
Other assets 72,042,089 4,377,674 67,914,038 8,460,882
1,264,028,414 849,460,581 1,223,595,395 787,077,429
4.16.1 Deferred employee expenditure
Group Bank
opening balance 344,565,793 231,191,124 344,565,793 231,191,124
adjustment for new loan granted 155,512,584 146,313,359 155,512,584 146,313,359
charge to personnel expenses (69,539,912) (32,938,690) (69,539,912) (32,938,690)
closing balance 430,538,465 344,565,793 430,538,465 344,565,793
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.
Group Bank
Money market deposits - - - -
Inter bank borrowings 694,637,838 324,286,275 -
Deposits from BFIs 1,652,114,510 1,738,945,338 1,659,926,258 1,738,945,338
Settlement and clearing accounts - - - -
2,346,752,348 2,063,231,613 1,659,926,258 1,738,945,338
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. 174,417,522 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 December 2017. These borrowing was used to provide
access to financial services to Micro Small and Medium Enterprises (MSMEs).This borrowing is classified as
financial liability and are measured at amortised cost. 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.
Group Bank
Refinance from NRB 860,231,068 39,376,400 860,231,068 39,376,400
Standing Liquidity Facility - - - -
Lender of last resort facility from NRB - - - -
Securities sold under repurchase agreements - - - -
Other payable to NRB 174,417,522 - 174,417,522 -
Total 1,034,648,590 39,376,400 1,034,648,590 39,376,400
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.
Group Bank
Held for trading
-interest rate swap - - - -
-currency swap - - - -
-forward exchange contract 45,256,669 - 45,256,669 -
-others - - -
Held for risk management
-Interest rate swap - - - -
-Currency swap - - - -
-forward exchange contract - - - -
-others - - - -
45,256,669 - 45,256,669 -
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.
Group Bank
Institutional Customers
-term deposits 34,480,909,250 40,607,301,374 34,480,909,250 40,607,301,374
-call deposits 5,397,331,182 7,659,071,488 5,426,781,273 8,608,664,007
-current deposits 5,261,456,219 3,395,170,693 5,261,456,219 3,395,170,693
-other deposits 1,001,214,740 743,504,849 1,001,214,740 743,504,849
Individual Customers
-term deposits 18,990,880,343 10,675,657,483 18,877,454,619 10,635,197,000
-saving deposits 37,033,770,686 32,697,370,024 36,786,308,088 32,574,426,799
-current deposits 1,829,002,710 929,190,144 1,829,002,710 929,190,144
-other deposits 1,187,383,494 2,678,084,404 1,187,383,494 2,678,084,404
105,181,948,626 99,385,350,459 104,850,510,393 100,171,539,270
4.20.1: Currency wise analysis of deposit from customers
Group Bank
Nepalese rupee 103,439,571,594 97,199,843,667 103,107,546,015 97,982,252,570
Indian rupee - -
United State dollar 1,719,643,274 2,163,928,101 1,719,643,274 2,163,928,101
Great Britain pound 7,733,508 7,299,814 7,733,508 7,299,814
Euro 15,000,251 14,278,878 15,000,251 14,278,878
Japanese yen - -
Chinese Yuan - -
Other- AUD 587,346 3,779,908
Total 105,181,948,626 99,385,350,459 104,850,510,393 100,171,539,270
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.
Group Bank
Domestic Borrowing
Nepal Government - - - -
Other Institutions - - - -
Other - - - -
Sub total - - - -
Foreign Borrowing
Foreign Bank and Financial Institutions - - - -
Multilateral Development Banks - - - -
Other Institutions - - - -
Sub total - - - -
Total - - - -
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 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.
Group Bank
Provisions for redundancy - - - -
Provision for restructuring - - - -
Pending legal issues and tax litigation - - - -
Onerous contracts - - - -
Other - - - -
Total - - - -
4.22.1: Movement in provision
Group Bank
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
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.
Liability against employees
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.
Statutory liabilities
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. These liabilities to inland revenue are
presented separately from other liabilities.
Other liabilities
All other liabilities in the form of bills payable, interest payable on deposits and borrowings, unpaid dividend
are measured at amortized cost.
Group Bank
Liability for employees defined benefit
346,739,443 268,711,308 342,379,252 266,490,659
obligations
Liability for long-service leave 140,838,636 129,280,006 139,684,118 128,319,822
Short-term employee benefits 622,384 431,032 301,394 209,539
Group Bank
Bills payable 15,626,815 28,537,913 15,626,815 28,537,913
Creditors and accruals 2,370,748,554 3,984,233,913 2,044,184,375 1,054,267,927
Interest payable on deposits 182,367,293 236,659,120 172,777,370 233,616,648
Interest payable on borrowing 34,566,443 20,007,917 34,566,443 20,007,917
Liabilities on deferred grant income - - - -
Unpaid dividend 31,845,964 34,730,429 31,060,174 32,723,360
Liabilities under Finance Lease - - - -
Employee bonus payable 294,329,244 308,333,459 291,197,644 300,392,692
Other statutory liabilities 163,725,047 147,625,726 161,141,603 145,544,970
Other liabilities 121,416,540 76,893,105 96,977,177 68,171,424
Total 3,702,826,363 5,235,443,927 3,329,896,365 2,278,282,871
4.23.1. Defined benefit obligations
The amounts recognised in the statement of financial position are as follows:
Group Bank
Present value of unfunded obligations - - 482,063,370 394,810,481
Present value of funded obligations - - - -
Total present value of obligations - - 482,063,370 394,810,481
Fair value of plan assets - - - -
Present value of net obligations - - 482,063,370 394,810,481
Recognized liability for defined benefit obligations - 482,063,370 394,810,481
4.23.2. Plan Assets
Plan assets comprise
Group Bank
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
Group Bank
Defined benefit obligations at Shrawan 1 - - 394,810,481 331,163,212
Actuarial losses/(gains) - - 37,446,711 3,895,706
Benefits paid by the plan - - (56,069,824) (35,067,213)
Current service costs and interest - - 105,876,002 94,818,776
Defined benefit obligations at Asar end - - 482,063,370 394,810,481
4.23.4. Movement in the fair value of plan assets
Group Bank
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 - - - -
4.23.5: Amount recognised in profit or loss
Group Bank
Current service costs - - 86,519,665 84,097,308
Interest on obligation - - 31,120,834 24,985,697
Expected return on plan assets - - - -
Total - - 117,640,499 109,083,005
4.23.6: Amount recognised in other comprehensive income
Group Bank
Actuarial (gain)/loss for the period - - 25,682,214 (10,368,523)
Total - - 25,682,214 (10,368,523)
4.23.6: Actuarial assumptions

Discount rate 9% 8.5%
Expected return on plan asset 0% 0%
Future salary increase As per Level As per Level
Withdrawal rate 10% 10%
4.24 DEBT SECURITIES ISSUED
The bank had issued 4,00,000 debentures of Rs 1000 each during financial year 2011-12.The debenture
carries an interest rate of 10% per annum payable semi-annually and the term of the bond is 7 years from
the date of issue.
Debenture is measured at amortized cost using the effective interest rate. All the transaction cost incurred at
the time of allotment formed part of effective interest rate. During the first time adoption of NFRS reasonable
amount of transaction cost incurred during the issue of debenture could not be established and hence the
effective interest rate of bond is continued as the coupoun interest rate. As the bond is being matured in
Financial Year 2018-19 the management has estimated there would be no material adjustment in terms of
effective interest rate adjustments.
As per the NRB directive No. 16 licensed institutions which have issued the debentures shall compulsorily
create the capital redemption reserve under the discount factor. Amount transferred to capital redemption
reserve Rs. 57,142,857 (FY 2074-2075) Rs. 57,142,857 (FY 2073-2074). Total Capital Redemption Reserve
as at year end Rs. 347,619,047.
Group Bank
Previous Previous
Current Year Current Year
Year Year
Debt securities issued designated as at
- - - -
fair value through profit or loss
Debt securities issued at amortized cost 400,000,000 400,000,000 400,000,000 400,000,000
400,000,000 400,000,000 400,000,000 400,000,000
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.
Group Bank
Redeemable preference shares - - - -
Irredeemable cumulative preference
- - - -
shares (liabilities component)
Other - - - -
- - - -
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.
Group Bank
Ordinary shares 8,888,375,827 8,080,341,661 8,888,375,827 8,080,341,661
Convertible preference shares (equity
- - - -
component only)
Irredeemable preference shares (equity
- - - -
component only)
Perpetual debt (equity component only) - - - -
Total 8,888,375,827 8,080,341,661 8,888,375,827 8,080,341,661
4.26.1: Ordinary shares
Group Bank
Authorized Capital
100,000,000 Ordinary share of Rs. 100 each 10,000,000,000 10,000,000,000 10,000,000,000 10,000,000,000
Issued capital
88,883,758.27 Ordinary share of Rs. 100 each 8,888,375,827 8,080,341,661 8,888,375,827 8,080,341,661
Subscribed and paid up capital
88,883,758.27 Ordinary share of Rs. 100 each 8,888,375,827 8,080,341,661 8,888,375,827 8,080,341,661
Total 8,888,375,827 8,080,341,661 8,888,375,827 8,080,341,661
4.26.2: Ordinary shares ownership

Percent Amount Percent Amount
Domestic ownership
Nepal Government - - - -
"A" class licensed institutions - - - -
Other licensed institutions - - - -
Other Institutions 14.21% 1,263,052,448 14.21% 1,148,229,498
Public 48.80% 4,337,957,472 48.80% 3,943,597,702
Other 36.99% 3,287,365,866 36.99% 2,988,514,424
Foreign ownership - - - -
Total 100% 8,888,375,826 100% 8,080,341,624
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.
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.
Movement in Regulatory Reserve is as below:
Deferred Investment Accrued Actuarial Total Regulatory

Tax Reserve Property Interest Gain/Loss Reserve
Rs Rs Rs Rs Rs
Balance as on Shrawan 1
- - - - -
2073
Transfer/(Withdrawal)
- - - - -
during the period
Balance as on Asar 31
- - - - -
2074
Transfer/(Withdrawal)
177,846,130 91,917,079 196,512,704 9,888,299 476,164,212
during the period
Transfer from Merger
Balance as on Asar 32
177,846,130 91,516,979 196,512,704 9,888,299 476,164,212
2075
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.
Fair Value Reserve

Rs
Balance as on Shrawan 1 2073 129,723,502
Transfer/(Withdrawal) during the period (38,550,678)
Balance as on Asar 31 2074 91,172,824
Transfer/(Withdrawal) during the period (73,106,315)
Transfer from Merger
Balance as on Asar 32 2075 18,066,509
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 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
investments as per the directive issued by Nepal Rastra Bank.
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. This fund is used to expense out in next financial year in the welfare of
society as directed by the directive created as below
Corporate Social Responsibility

Opening Balance 20,061,595
Less: Corporate Social Responsibility expense during the year 15,252,615
CSR expenses to be incurred during FY 2075-76 (1% of Current Year Net Profit) 21,013,631
Balance to be created as reserve during FY 2074-75 25,822,611
v. Training Reserve
As per NRB directive financial institutions are required to incur minimum 3% of its total employee
expenses 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:
Opening balance in training reserve 11,040,391

Less: Training and development expenses during the year 23,422,475
Training expenses that should have been incurred during FY 2075-76 (3% of PY
total employee expenses excluding annual bonus) 23,032,973
Balance to be created as reserve during FY 2074-75 10,650,889
The movement in the other reserves are as below:
BANK
Capital Interest Investment Training Actuarial Other Total Other
Redemption Capitalized Adjustment CSR Fund Reserve Gain/Loss Reserve Reserve
Reserve Reserve Reserve
Rs Rs Rs Rs Rs Rs Rs Rs
Balance as on Shrawan 1 2073 233,333,333 30,815,894 123,244,303 - - 831,284 81,216,159 469,440,973
Transfer/(Withdrawal) during the 57,142,857 12,904,106 (95,612,310) 20,061,595 11,040,391 7,257,966 12,794,605
period
Transfer from Merger - - 105,405,765 - - - 7,938,947 113,344,712
Balance as on Asar 31 2074 290,476,190 43,720,000 133,037,758 20,061,595 11,040,391 8,089,250 89,155,106 595,580,290
Transfer/(Withdrawal) during the
57,142,857 - 89,918,504 5,761,016 (389,502) (17,977,550) (89,155,106) 45,300,219
period
Transfer from Merger - - - - - - - -
Balance as on Asar 32 2075 347,619,047 43,720,000 222,956,262 25,822,611 10,650,889 (9,888,300) - 640,880,509
Details of Reserve as per financial statement of the Bank and Group are presented as below:
Group Bank
Statutory general reserve 2,003,034,229 1,582,976,296 1,995,200,610 1,574,927,980
Exchange equalization reserve 99,158,504 76,588,561 99,158,504 76,588,561
Corporate social responsibility
25,822,611 20,061,595 25,822,611 20,061,595
reserve
Capital redemption reserve 347,619,047 290,476,190 347,619,047 290,476,190
Training Reserve 10,650,889 11,040,391 10,650,889 11,040,391
Interest capitalized reserve 43,720,000 43,720,000 43,720,000 43,720,000
Investment adjustment reserve 222,956,262 133,037,758 222,956,262 133,037,758
Capital reserve - - - -
Other reserve 920,543 89,761,392 - 89,155,106
Assets revaluation reserve - - - -
Dividend equalization reserve - - - -
Fair value reserve 16,913,384 91,172,824 18,066,509 91,172,824
Regulatory reserve 476,164,212 - 476,164,212 -
Actuarial gain/(loss) (9,888,299) 8,089,251 (9,888,300) 8,089,250
Total 3,237,071,383 2,346,924,258 3,229,470,345 2,338,269,656
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.
Group Bank
-opening balance 2,047,584,163 1,170,535,277 1,957,821,861 1,129,702,776
-add: profit for the year 2,150,675,798 2,123,050,264 2,101,363,149 2,061,239,486
-add: transfer from merger 332,138 172,199,728 - 172,199,728
-less: transfer to regulatory reserves (476,164,212) - (476,164,212) -
-less: transfer from regulatory reserves - - - -
-add: transfer from statutory reserves 89,544,608 95,612,310 89,544,608 95,612,310
-less: transfer to statutory reserves (595,664,950) (517,282,199) (595,664,950) (514,649,633)
-less: cash dividend for FY 2072-2073 - (27,089,474) -
-less: scrip dividend for FY 2072-2073 - (986,282,806) - (986,282,806)
-less: cash dividend for FY 2073-2074 (824,349,955) - (808,034,166) -
-less: scrip dividend for FY 2073-2074 (818,034,166) - (808,034,166) -
-closing balance 1,573,923,423 2,030,743,100 1,460,832,125 1,957,821,861
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.
Group Bank
Contingent Liabilities 29,463,389,088 27,227,254,447 29,463,389,088 27,227,254,447
Undrawn disbursed facilities 14,845,669,492 10,583,251,304 14,845,669,492 10,583,251,304
Capital commitments - - - -
Lease commitments 1,193,230,739 922,100,651 1,193,230,739 922,100,651
Litigations - - - -
45,502,289,319 38,732,606,402 45,502,289,319 38,732,606,402
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.
Group Bank
1. Acceptances & Endorsements 1,493,331,284 3,901,825,384 1,493,331,284 3,901,825,384
2. Documentary Credit
Expiring within 6 Months 5,845,998,893 3,607,985,068 5,845,998,893 3,607,985,068
Expiring within 6 Months to 1 Year 327,757,711 551,469,663 327,757,711 551,469,663
Expiring after 1 Year 134,117,240 200,290,816 134,117,240 200,290,816
3. Bills for collection - - - -
4. Forward exchange contracts 6,381,728,835 5,885,678,611 6,381,728,835 5,885,678,611
5. Guarantees/Bonds
i.) Advance Payment Guarantee
Expiring within 6 Months 2,316,842,845 862,533,046 2,316,842,845 862,533,046
Expiring within 6 Months to 1 Year 1,227,920,607 1,364,736,788 1,227,920,607 1,364,736,788
Expiring after 1 Year 1,313,052,500 1,101,579,355 1,313,052,500 1,101,579,355
ii. Bid Bonds
iii. Performance Bonds
Expiring after 1 Year 3,830,186,381 4,487,293,109 3,830,186,381 4,487,293,109
iv. Other Guarantee/ Bonds
Expiring within 6 Months 547,128,000 143,815,093 547,128,000 143,815,093
6. Underwriting commitment - - - -
7. Contingent Liabilities on Income Tax 127,167,730 107,908,001 127,167,730 107,908,001
Total 29,463,389,088 27,227,254,447 29,463,389,088 27,227,254,447
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.
Group Bank
1. Undisbursed amount of loans
Expiring within 6 Months 840,786,704 750,394,795 840,786,704 750,394,795
Group Bank
2. Undrawn limits of overdrafts
3. Undrawn limits of credit cards 187,100,458 116,934,934 187,100,458 116,934,934
4. Undrawn limits of letter of credit 7,565,907,683 4,357,042,645 7,565,907,683 4,357,042,645
5. Undrawn limits of guarantee 59,704,600 64,181,100 59,704,600 64,181,100
Total 14,845,669,492 10,583,251,304 14,845,669,492 10,583,251,304
4.28.2 Capital Commitments
Capital expenditure approved by relevant authority of the bank but provision has not been made in financial
statements
Current Year Previous Year Transition 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 - - -
4.28.3 Lease Commitments
Lease commitments entered by bank for the leasing of spaces for expanding branch operations but provision
not made in financial statements.

Operating lease commitments
Future minimum lease payments under non-cancellable operating lease,
where the bank is lessee
Not later than 1 year 178,842,757 171,404,654
Later than 1 year but not later than 5 years 698,062,806 527,452,900
Later than 5 years 316,325,175 223,243,096
1,193,230,739 922,100,651
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 1,193,230,739 922,100,651
4.28.4 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:
Cases at Estimated Contingent Liability

Supreme Court 2,863,031
Revenue Tribunal 68,728,050
Inland Revenue Department 55,576,649
Total 127,167,730
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.
Group Bank
-from cash and cash equivalents 87,052,444 76,708,823 55,420,739 29,280,340
-from due from Nepal Rastra Bank - - - -
-from placements with bank and financial
25,854,254 23,308,833 3,285,716 9,676,861
institutions
-from loans and advances to banks and
294,906,866 46,218,809 316,542,713 39,614,299
financial institutions
-from loans and advances to customers 10,699,375,318 7,169,283,459 10,571,702,024 7,094,053,999
Group Bank
-from investment securities 486,499,324 271,994,951 486,499,324 271,994,951
-from loans and advances to staff 43,647,193 17,546,601 43,647,193 17,546,601
-from others agency balance 4,634,340 1,476,523 4,634,340 1,476,523
11,641,969,739 7,606,537,999 11,481,732,049 7,463,643,573
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.
Group Bank
-on dues to bank and financial institutions 107,533,456 26,527,143 62,077,109 25,131,791
-on dues to Nepal Rastra Bank 16,781,922 153,488 16,781,922 153,488
-on deposit from customers 7,498,365,164 3,744,382,970 7,481,254,033 3,733,976,842
-on borrowings 4,735,030 - 4,735,030 -
-on debt securities issued 40,000,000 40,000,000 40,000,000 40,000,000
-on subordinated liabilities - - - -
7,667,415,571 3,811,063,602 7,604,848,094 3,799,262,121
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 include
commission income from remittance, custody and advisory fees as well as fees from insurance brokerage,
foreign exchange transactions.
Group Bank
-from loan administration fees 171,928,761 132,061,170 171,928,761 132,061,170
-from service fees 135,863,967 94,668,688 91,508,540 66,972,154
-from consortium fees - - - -
-from commitment fees 194,065 16,695,880 194,065 16,695,880
-from D.D/ T.T/swift fees 13,450,418 11,039,256 13,450,418 11,039,256
-from credit card/ATM issuance and renewal fees 197,245,298 218,832,319 197,245,298 218,832,319
-from prepayment and swap fees 7,171,549 2,721,471 7,171,549 2,721,471
-from investment banking fees - - - -
-asset management fees 8,176,073 14,071,791 - -
-from brokerage fees - - - -
-from remittance fees 167,912,147 142,035,965 167,912,147 142,035,965
-from commission on letter of credit 65,627,330 55,140,246 65,627,330 55,140,246
-from commission on guarantee contract issued 156,363,987 130,286,906 156,363,987 130,286,906
-from commission on share underwriting/issue 9,284,741 963,191 - -
-from locker rental 4,372,225 3,777,575 4,372,225 3,777,575
-from other fees and commission income 57,256,682 89,347,156 57,682,932 86,947,230
Total fees and commission income 994,847,243 911,641,614 933,457,252 866,510,173
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.
Group Bank
-on ATM management fees - - - -
-on VISA/Master card fees 54,601,929 68,920,078 54,601,929 68,920,078
-on guarantees - - - -
-on brokerage - - - -
-on D.D/ T.T/swift fees 6,628,376 4,470,586 6,628,376 4,470,586
-on remittance commission 76,886,679 61,129,451 76,886,679 61,129,451
-others 36,724,556 30,496,890 36,661,249 30,096,840
Total fees and commission expense 174,841,540 165,017,005 174,778,233 164,616,955
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.
Group Bank
-from changes in fair value of trading assets (32,856,036) (6,618,704) - -
-from gain/loss on disposal of trading assets - 5,462,075 - -
-from interest income on trading assets - - - -
-from dividend income on trading assets - - - -
-from gain/loss foreign exchange translation 261,961,095 230,633,246 261,961,095 230,633,246
-from others - - - -
Total net trading income 229,105,060 229,476,617 261,961,095 230,633,246
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.
Group Bank
-from foreign exchange revaluation gain 90,279,773 49,075,167 90,279,773 49,075,167
-from gain/loss on sale of investment securities 62,428,481 18,341,078 62,428,481 18,341,078
-from fair value gain/loss on investment
- - - -
properties
-from dividend on equity instruments 23,536,791 40,573,704 21,516,432 40,256,573
-from gain/loss on sale of property and
650,971 (2,267,361) 643,957 (2,267,361)
equipment
-from gain/loss on sale of investment property 872,060 14,536,960 872,060 14,536,960
-from operating lease income - - - -
-from gain/loss on sale of gold and silver 1,237,753 3,481,593 1,237,753 3,481,593
-from others 41,003,661 9,783,753 21,185,481 28,273,768
Total other operating income 220,009,490 133,524,894 198,163,937 151,697,777
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.
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.
Group Bank
-on loans and advances to B/FIs 10,446,671 1,575,856 12,396,671 1,575,856
-on loans and advances to customer (296,766,704) (14,927,724) (302,227,456) (20,002,408)
-on investment securities - - - -
-on cash and cash equivalents (4,563) (75,310) (4,563) (75,310)
-on placement with banks and financial institutions - - - -
-on property and equipment - - - -
-on goodwill and intangible assets - - - -
-on investment properties - - - -
-on account receivables - 53,753 - -
Total impairment charge/(reversal) (286,324,596) (13,373,425) (289,835,348) (18,501,862)
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.
Group Bank
-salaries 414,622,540 336,002,271 368,882,246 305,508,787
-allowances 386,915,080 293,345,660 376,996,893 286,428,214
-gratuity 70,224,487 54,459,647 69,302,768 53,773,006
-provident fund 36,844,103 30,767,165 35,635,150.63 29,938,161
-uniform - - - -
-training and development expenses 24,220,029 9,134,048 23,422,475 8,728,253
-leave encashment 48,337,731 29,314,075 48,337,731 29,314,075
-medical insurance 3,377,410 2,730,558 3,377,410 2,730,558
-life insurance 6,301,671 4,844,126 6,041,151 4,701,576
-employee incentives - - - -
-cash settled share-based payments - - - -
-pension expenses - - - -
-finance expense under NFRS 69,539,912 32,938,690 69,539,912 32,938,690
-other staff expenses 21,704,771 31,527,414 21,490,919 30,407,531
1,082,087,734 825,063,654 1,023,026,655 784,468,851
-employees bonus 294,329,244 296,944,841 291,197,644 289,004,074
Total personnel expenses 1,376,416,978 1,122,008,495 1,314,224,299 1,073,472,925
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.
Group Bank
-directors' fees 1,963,000 2,205,200 1,659,000 1,839,000
-directors' expenses 2,533,034 1,072,584 2,519,276 1,021,254
-auditor's remuneration 2,486,000 2,526,000 2,260,000 2,260,000
-other audit related expenses 506,460 412,892 217,280 200,000
-professional and legal expense 8,510,469 5,008,607 8,390,469 4,964,107
-office administration expenses 405,112,311 342,365,471 369,723,160 317,315,982
-operating lease expenses 188,987,548 153,502,151 185,433,538 151,311,306
-operating expense on investment properties - - - -
-corporate social responsibility expenses 15,252,615 2,198,628 15,252,615 2,198,628
-onerous lease provisions - - - -
-other operating expenses 181,210,996 121,005,425 181,026,358 121,005,425
Total operating expense 806,562,432 630,296,958 766,481,696 602,115,702
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
Because of uncertainties inherent in business activities, many items in financial statement cannot be
measured with precision but can only be estimated. The estimation involves judgments based on the latest
available reliable information. The use of reasonable estimates is an essential part of financial statements and
does not undermine their reliability. During the year the bank had revised its estimated residual value of all
the property and equipment as mentioned in Note 4.13. Bank’s net profit would be inflated by Rs. 64,834,112,
if bank followed the same estimates,
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. Bank assumes that there is no
residual value for its intangible assets.
Computer software – 5 years
Group Bank
-on property and equipment 236,681,612 130,058,331 231,676,021 126,912,165
-on investment property - - - -
-on software and intangibles 12,817,501 13,704,438 12,068,961 12,953,515
Total Depreciation & Amortization 249,499,113 143,762,768 243,744,981 139,865,680
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.
Group Bank
-from recovery of written off loans 1,888,454 17,073,242 1,888,454 17,073,242
-from other income 30,178,142 19,691,758
Total non-operating income 32,066,597 36,765,000 1,888,454 17,073,242
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.
Group Bank
-on loan written off 150,984,395 - 150,984,395 -
-on redundancy provision - - - -
-on expense of restructuring - - - -
-on other expense - - - -
Total non-operating expense 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:
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;
temporary differences related to investments in subsidiaries to the extent that it is probable that
they will not reverse in the foreseeable future; and
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
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 also 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’.
Group Bank
-current tax expense
income tax expense based on profit for
920,657,758 912,984,492 903,324,893 889,367,811
current year
adjustment for prior years under/(over)
45,190,884 - 45,190,884 -
provision
965,848,642 912,984,492 948,515,777 889,367,811
-deferred tax expense
origination and reversal of temporary
(145,924,461) 15,704,776 (137,902,491) 18,119,192
differences
change in tax rates - - - -
recognition of previously unrecognized tax
- - - -
losses
(145,924,461) 15,704,776 (137,902,491) 18,119,192
Total income tax expenses 819,924,181 928,689,268 810,613,286 907,487,003
4.41.1: Reconciliation of tax expense and accounting profit
Group Bank
Profit before tax 2,911,976,436 2,968,726,489
Tax Amount at rate of 30% 873,592,931 890,617,947
Add: Tax effect of expenses that are not
169,292,229 194,335,521
deductible for tax purpose
Less: Tax effect on exempt income (5,075,712) (3,626,783)
Add/(Less):Tax effect on NFRS
45,190,884 (23,605,725)
adjustments
Less: Tax effect of expenses that are
(134,484,554) (168,353,148)
deductible for tax purpose
Total Income tax 948,515,777 889,367,811
Effective tax rate 32.57% 29.96%
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

Amount used as the numerator
Profit after tax for the year attributable to equity holder (Rs) 2,101,363,149 2,061,239,486
No. of ordinary shares used as the denominator
Weighted average number of ordinary shares ( Note 13.2) 88,883,758 80,803,417
Basic/Diluted earnings per ordinary shares (Rs) 23.64 25.51
b. Earnings per Share: Diluted

Amount used as the numerator
Profit after tax for the year attributable to equity holder (Rs) 2,101,363,149 2,061,239,486
No. of ordinary shares used as the denominator
Weighted average number of ordinary shares ( Note 13.2) 88,883,758 80,803,417
Basic/Diluted earnings per ordinary shares (Rs) 23.64 25.51
c. Weighted average Number of Ordinary Shares for basic/Diluted EPS

Number of Shares held at 1st of Shrawan 80,803,417 61,642,675
Add: Additional shares issued for merged entities - 9,297,913
Add: Number of shares issued due to final bonus (FY 2072-2073) - 9,862,828
80,803,417 80,803,417
Add: Additional shares issued - -
Add: Number of shares issued due to final bonus (FY 2073-2074) 8,080,342 -
Number of Shares held at Asar end 88,883,758 80,803,417
There have been no transactions involving ordinary shares or potential ordinary shares between the
reporting date and the date of the completion of these financial statements which would require the
restatement of EPS.
4.43 DIVIDEND PAID AND PROPOSED
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.

Final dividend paid
scrip dividend paid 808,034,166 986,282,806
cash dividend paid 808,034,166 -
1,616,068,332 986,282,806
Dividend paid per ordinary share of rs 100 each 20 16
Final dividend proposed

scrip dividend proposed 1,422,140,132 808,034,166
cash dividend proposed - 808,034,166
1,422,140,132 1,616,068,332
Dividend proposed per ordinary share of rs 100 each 16 20
STATEMENT OF DISTRIBUTABLE PROFIT OR LOSS

For Year ended 32nd Asar 2075
(As per NRB Regulation)

Rs Rs
Net profit or (loss) as per statement of profit or loss 2,101,363,149 2,061,239,486
Appropriations:
a. General reserve (420,272,630) (401,231,892)
b. Foreign exchange fluctuation fund (22,569,943) (12,268,792)
c. Capital redemption reserve (57,142,857) (57,142,857)
d. Corporate social responsibility fund (21,013,631) (20,061,595)
e. Employees' training fund 389,502 (11,040,391)
f. Investment adjustment Reserve (89,918,504) 95,612,310
g. Interest capitalize Reserve - (12,904,106)
f. Other - -
Profit or (loss) before regulatory adjustment 1,490,835,086 1,642,202,163
Regulatory adjustment :
a. Interest receivable (-)/previous accrued interest received (+) (196,512,704) -
b. Short loan loss provision in accounts (-)/reversal (+) - -
c. Short provision for possible losses on investment (-)/reversal (+) - -
d. Short loan loss provision on Non-Banking Assets (-)/reversal (+) (91,917,079) -
e. Deferred tax assets recognized (-)/ reversal (+) (177,846,130) -
f. Goodwill recognized (-)/ impairment of Goodwill (+) - -
g. Bargain purchase gain recognized (-)/reversal (+) - -
h. Actuarial loss recognized (-)/reversal (+) (9,888,299) -
Distributable profit or /(loss) 1,014,670,873 1,642,202,163
5. Disclosure & Additional Information

5.1. RISK MANAGEMENT throughout the Bank in addition to other product
paper “Regulatory Retail Portfolio” and “Claims
Risk is inherent in the Bank’s activities, it is managed Secured by Residential Property”. Number of
through an integrated risk management framework, proactive credit risk management techniques and
including ongoing identification, measurement and tools under a broad risk framework used by the
monitoring, subject to risk limits and other controls. Bank is outlined below:
This process of risk management is critical to the Bank’s
continuing profitability and each individual within the Credit applications undergo a comprehensive
Bank is accountable for the risk exposures relating to credit evaluation and Bank has procedures for
his or her responsibilities. The Bank is exposed to credit Credit Approval for both retail and corporate
risk, liquidity risk, market risk, operational risk, liquidity credit proposals that ensure appropriate
risk, legal and compliance risks. It is also subject to resources and tools are employed for the type of
country risk and various operating and business risks. credit assessment.
Credit proposals are routed through Credit Risk
The Bank’s credit strategy is based on a clear Department with evaluation of underlying risk,
understanding of various risks, disciplined risk where borrowers are classified according to
assessment and measurement procedures and risk grade to reflect the risk of default. Lending
continuous monitoring. authority has not been assigned to the staff
under Credit Risk Department and headed by
The threshold of credit proposals that Credit Chief Manager. This department is independent
Risk Management unit supervised has been of business unit and directly reporting to Board
reduced from existing level of Rs. 10 Mio to Rs. 5 Level RMC.
million on individual account. Primary importance is given on understanding
Post Loan Disbursement Monitoring is being and assessing the existing and future cash flows
made more effective. of the business whereas secondary security
Credit Risk Management Policy of the Bank has is taken as fixed asset collateral security and
been approved and under implementation. personal guarantee / third part guarantee to
Portfolio Analysis of the risk asset exposure of support the life of loan as well as cash collateral
the bank is being carried out. to the possible extent.
The Bank has been using BRR (Borrower Risk Once credit proposals are forwarded from Credit
Rating Model) model to assess the associated Risk Department, underling risks pointed out
risk with respect to the borrower and have been shall be addressed properly by lending officers
also making the loan pricing based on the risk with mitigants before approval. Bank is having
based model. various level approving authority depending
The bank have established the credit upon proposed limits, inherent risks etc. Credit
monitoring practice through system limits are approved under dual approval system.
developed reports, business site visits. Approved loans are forwarded to Credit
Administration Department that administers
Credit Risk the post approval processes including review
of security documentation, contracts and
Credit Risk is the failure of customers (companies, other legal paper in line with NRB directives,
individuals, banks, financial institutions, states etc) CPG, Product Papers and as per the approved
to perform their obligation towards Bank. Credit terms and conditions. Credit Administration
risk is paramount that bank is exposed to during the Department verifies the certification and
normal course of lending and credit under writing. completion of all formalities and disburses the
Global IME Bank’s credit Policy Guidelines is the loan in the system.
highest level policy document and it reflects long- Credit exposures once approved / disbursed are
term expectations and represents a key element effectively monitored and reviewed on annual
of uniform, constructive and risk-aware culture basis to determine changes in risk levels. Bank
has standard procedures for credit review and Risk Management Committee is constituted
monitoring systems, which is documented in by the Board of Directors. Risk Management
Credit Policy Guidelines. Committee oversee portfolio analysis, stress
Early warning signals from customers in testing, existing product papers, policy,
financial difficulties are read early and remedial procedures on credit, market and operational
management action is implemented to minimize risk management on regular interval.
risk of default / loss.
Bank reviews and monitors credit on a quarterly GIBL has been adopting a practice of analyzing
basis through diary notes, visit reports, customer’s various levels of risks and mitigations in credit for
call/visit report and irregularity reports with different sectors Project, Corporate, SMEs and Retail.
respect to the management of excesses, overdue Details are assessed below:
payments of principal or interest and past due
bills and deficiencies identified therein reported Assessment of Macro Environment Aspects /
to credit chain. The working capital loans are External Impacts
monitored through verification of statement
of current assets provided by the borrower Change in economic indicators affecting credit
ensuring the utilization of limits are within the portfolio such as GDP, Inflation, per capita income,
approved drawing power. demand supply mismatch, changes in consumption
Loans are priced appropriately through a Risk patterns etc.
Based Pricing model. A template to this effect
has been developed and circulated to branches. The risks that could trigger out of above indicators
Relationship managers and Branch managers to could ultimately lead to a credit default or even loss
identify/compute return on regulatory capital. and GIBL has developed a mechanism of assessing
Periodic reviews at portfolio levels are made its impact to a potential credit loss through extensive
in order to track performance and changes and elaborative credit analysis such as industry/
in quality of loan portfolio. Periodic business market risk assessment where various factors are
evaluation and quality of security / collateral assessed such as:
to be done so as to avoid event of any negative
downturns in their values. Various credit Market Trend – Introductory, Growing, Mature,
portfolio analyses to single client group, Local vs. Exports, Quality, Quantity, Market
product and segment wise exposures etc. are Substitutes, Prevailing Pricing Structures,
reviewed on regular frequency and used to form Demand & Supply Scenario etc.
strategies in future. Compliance of Acts, Policies Entry / Exit Barriers – License regulations,
and Laws promulgated by various governing Associations Permits and Restrictions,
bodies like Unified Directives, BAFIA, Company Investments Prohibitions and Practices etc.
Act, Monetary Policy, Muluki Ain, etc. are being Competition – Players in the Industry. Ability
ensured. to withstand in the market place despite
Bank has undertaken strategy to grow majority competition, development of core competence
of business in the corporate sector followed by and distinctiveness to thrive in the market place.
SME/Retail base in the current fiscal year in Vulnerability – Changes in Political scenario with
order to better manage the portfolio risk of the corresponding changes in administration, Legal
Bank. Product paper on various products have Framework, Socio-Cultural impacts and their
been developed/reviewed on periodic basis affects in the credit.
with settling of prudential lending limit to a
single client / obligor along with portfolio level Business Risks Analysis – To an individual
in different product on corporate level. client/group/section
Periodic review on product papers of regulatory
retail portfolio, claims secured by residential GIBL has also been undertaking various risks
properties and credit policy guidelines by Risk assessment mechanisms while assigning credit lines
Management Committee and update as per the to an individual credit customer/group and they are:
requirement.
Product of the company whether are at help ensure commitment and belongingness
introductory stage that warrant massive market while diverse interest may seriously impact
penetration strategies involving costs factors the business in distress situation as all these
or growing products in the market place with individuals would not be collaborating in
potentials of further growth or are at matured consensus due to their priorities elsewhere,
stage with declining tendencies. Continuity and Succession Plans / Successors,
Buyer / Supplier – Size, Credibility, Performance, Fall Back Position & Strength,
Conduct etc. Other Investment and Ventures
Market Share – Small, Moderate. Leader etc.
Technology – Obsolesce, Sound / Stable etc. GIBL as part of account performance monitoring
Operating Cycle – Assets Conversion Time Frame exercise has been taking various measures on the
etc. following critical areas of a credit:
Networking - Sales and Distribution /
Dependency on few Assessing Account Conduct, Historical
Performance, Credibility etc.
Financial Risks Analysis Debt Servicing Habit (Operating Cash / Personal
Source)
GIBL has been taking very cautious measures in Utilization trend analysis, Transaction frequency,
order to analyze the financial aspects of a credit Hardcoreness of overdraft utilization etc.
client. The major risks perceived in this area are Compliance of Covenants, Terms, Drawing
considered to be timely submission of financial Power/NTA positions etc.
statements, audited balance sheets, validation of Measure Irregularities – delay in submission
financial statements, disclosures and transparency. of inventory Stocks Report, Debtors Profile,
Whilst these phenomena are common issues in – – Inspections of pledged /hypothecated/
the industry, GIBL has been adopting a practice of mortgaged assets, fund mismatch, Warehouse
analyzing financial aspects more meticulously and Conditions, Security etc.
with great degree of vigilance to overcome risks
prevalent herein. Some of them are studied below: Security Risks
Trend Analysis – Sales, Profit, Cash Flows, Quality of the hypothecation of current assets
Performance, Forecast, Projections etc. Identified value of FAC
Key Indicators – Liquidity, Solvency. Margin, Realization of FAC at distress
Debt Coverage, etc. Salability and marketability of the property
Operating Cycle – Assets Conversion Cycle Time mortgaged/hypothecated
Payback Period, Internal Rate of Return, Break
Even Analysis etc. GIBL has in place an assessing mechanism over
Others – Costs Overrun Analysis, Sensitivity valuation of properties by bank’s appointed valuator
Analysis in project financing, etc. and such valuation is carried out under guidelines
provided by us to the valuator. While assessing
Promoters Profile / Management expertise credit application, bank shall undergo a detailed
analysis over hypothecated/mortgaged collateral’s
The experience and expertise of promoters in the quality and their potentials to convert into cash both
given filed of business play a pivotal role in the in normal and distress situations (when company
success of any business venture. GIBL’s analysis also is defunct). Our focus shall always be disposition of
encompasses detailed analysis in these critical areas such assets well in time to derive to an advantage
some of which includes: of going concern value assets. On time inspection
of hypothecated/mortgage assets together with
Promoters / Management – Expertise and validation of such assets with relevant documents
Experience in the given or related filed. shall be a regular task of GIBL in order to mitigate
Common / Diverse Interest of the promoters. the security risks.
Common interest in the ventured business
With the recent introduction of Secured Transaction obtains various types of collaterals to mitigate the
Registry Service by Secured Transaction Registry risk. Details such as, nature of the collateral that will
Office regulated by Ministry of Finance, the bank is be accepted, required security margin etc are defined
preparing towards registration of current/ movable in Credit Policy of the Bank. Any deviations above the
asset. policy requires specific approval.
In order to identify and effectively manage above I. Credit Risk

risks, GIBL has been adopting various mechanisms
and modules that are as under: Credit risk is the risk of financial loss to the Bank,
if its customers or counterparties fail to discharge
BRR – Borrowers Risks Rating Module is in place. their contractual obligations which arises from
the Bank’s loans and advances to customers/other
Calculation on return on regulatory Capital Module banks and investments. In addition to the credit risk
for all credit cases from direct funding exposures, the Bank would also
be exposed to indirect liabilities such as Letter of
Monthly / quarterly review on sectorial exposures, Credit, Guarantees etc, which would carry the credit
productive sector lending, product wise report, risk.
deprive sector, credit concentration on top 20 large
borrowers, review on NPL, interest suspense, audit A. Credit Risk Management
remarks etc.
Credit risk is managed at the individual counterparty
Standardized template of financial spreadsheet with level (by individual credit limits and limits for groups
indicator parameters of connected borrowers) and on the portfolio level.
Asset/ Liability Management Committee (ALCO) B. Principles of setting credit risk limits
The Committee meets regularly to monitor and Individual credit risk limits and credit risk limits
manage the assets & liabilities of the Bank and for groups of connected borrowers are established
overall liquidity position to keep the Bank’s liquidity by authorised bodies based on the comprehensive
at healthy levels, whilst satisfying regulatory analysis and evaluation of risks (credit, reputational,
requirements. legal, environmental and other risks) of an individual
counterparty and the group of its related companies.
Risk Measurement
Analysis of a debtor’s financial position is performed
The Bank’s risks are measured using appropriate using all the information available to the Bank in
techniques based on the type of risk and industry best accordance with the methodology applied. This
practices. The Bank also carries out Stress Testing analysis includes an assessment of the current and
to identify the effect of extreme events / worst case expected debtor’s financial position and the business
scenarios on a periodic basis and are analyze by the of the debtor.
Risk Department to take further actions.
Generally, the group of companies of the debtor is
Monitoring and controlling risk is primarily evaluated as a whole, provided that all members of
performed based on policies,limits and threshhold the group accept responsibility for the loan.
established by the Bank. These limits reflect the
business strategy and market environment of the Credit risk analysis within retail lending programs
Bank as well as the level of risk that the Bank is is performed based on the current income and the
willing to accept (Risk Appetite). profile of the customer using scoring models that are
based on statistical analysis of defaults by specific
Risk Mitigation lending programs.
As part of its overall risk management, the Bank

C. Maximum Exposure to Credit Risk are set in Note 19.
The maximum exposure to credit risk is generally The Bank writes off a loan balance against related
reflected in the carrying amounts of financial assets impairment allowances when an authorised body
in the statement of financial position. The maximum determines that the loan is uncollectible and when
exposure to credit risk arising from credit related all necessary and possible procedures to collect the
commitments is presented in Note 40 “Contingent loan are completed.
Liabilities and Commitments”. The Bank uses the
same procedures and methodologies, as defined G. Collateral and Other Credit Enhancements
by the credit policy, for approving credit related
commitments (undrawn loan commitments, letters The amount and type of collateral required
of credit and guarantees) as it does for recognised depends on an assessment of the credit risk of the
credit obligations (loans). counterparty. Guidelines are in place covering the
acceptability and valuation of each type of collateral.
D. Credit Quality by Class of Financial Assets The main types of collateral obtained are as follows:
The Bank manages the credit quality of financial For Commercial Lending: charges over real estate
assets using internal credit rating. The table below properties, inventory and trade receivables
shows the credit quality by the class of assets for all
financial assets exposed to credit risk, based on the For Retail Lending: mortgages over residential
Bank’s internal credit rating system. The amount properties, land
presented are gross of impairment allowances.
Management monitors the market value of collateral
Past Due Definition and will request additional collateral in accordance
with the underlying agreement. It is the Bank’s
The Bank considers that any amount uncollected for policy to dispose repossessed properties in an
one day or more beyond their contractual due date orderly manner. The proceeds are used to recover
as ‘past due’. the outstanding claim.
E. Maturity Analysis H. Bad Debt work-out procedures
Treasury manages the maturity analysis of assets In order to maximise the efficiency of bad debt work
and liabilities. Modelling of assets and liabilities is out procedures the bank has established a recovery
necessary in cases where the contractual maturity department.
does not adequately reflect the liquidity risk position.
The most significant example in this context would Where possible, the Bank seeks to restructure
be immediately repayable deposits from retail loans to borrowers experiencing temporary
and transaction banking customers which have financial difficulties rather than to take possession
consistently displayed high stability throughout even of collateral. This may involve modification of the
the most severe financial crises. Financial assets and contractual payment terms of loans in order to
financial liabilities must be disclosed by their by improve the management of customer relationships
their contractual maturity, based on undiscounted and maximise collection opportunities.
cash flows.The gap is monitored on periodic basis
to maintain the sufficient liquidity by the Asset The Bank employs a set of preventive measures for
Liabilities Committee. identification of the financial difficulties experienced
by clients. Such measures include:
F. Allowance for loan losses
developing special expertise in identifying
The Bank establishes an impairment allowance that potential client risks prior to the critical
represents its estimate of losses incurred at the deterioration of the issue
reporting date. The details of impairment allowances timely cooperation with the client’s management
representatives in order to seek optimal in the yield curve/Credit spreads/Banking book

solutions for problem situations. mismatch), Currency risk (revaluation risk/FX
rates), Commodity risk (Price of oil, metals) and
Restructuring implies modifying the material terms credit spread risk.
and conditions of the initial agreement, that enables
the client to fulfil its liabilities on more manageable Market risk control mechanisms (Trading book
terms (e.g.: modified principal or/and interest Limit structure):
repayment term, interest rate, the rate calculation Currency exposure limits
method, etc.).The Bank gives more attention to VaR limits
restructured loans through detailed monitoring. Dealer level limits
Impairment losses for such loans are estimated Asset class limits
individually based on an analysis using a discounted Tenor limits(bonds)
expected cash flow technique (Note 19). Liquidity limits
Counterparty limits
In the event that the financial position of a client Open-Position limits
recovers and the client fulfils the restructured loan Rating limits/Inter Bank Limits
in full and in a timely manner within an established
period, the loan is presented in the consolidated III. Operational Risk
financial statements within the without individual
signs of impairment category. Operational Risk is the risk of loss resulting from
inadequate or failed internal processes, people and
II. Market Risk system or from external causes, whether deliberate,
accidental or natural.
ALCO of the Bank have been monitoring the
market risk as on date and recently Market Risk Operational Risk Management unit under Integrated
Unit have been established to closely monitor the Risk Management Department oversees the
fluctuations in interest rate and price and shall be operational risk aspect. Operational risk is inherent
involved in developing the policies related to market in all business activities. Whilst risks can never be
risk management. The strategy shall also be on eradicated, we follow a number of procedures and
strengthening Treasury Middle office. practices to manage and mitigate them to preserve
and create value of our business. We manage
Interest rate risk: Interest-rate risk can be defined our operational risks through standardization of
as the effect of changes in rates on income and on the internal processes and monitoring mechanisms.
market value of an institution’s equity position. The Staffs allowed participating in various trainings,
effect of changes in rates on income is referred to as workshops, conferences in different arena of the
income-at-risk. GAP analysis is also one of the methods banking function to minimize operational risk
for measuring the level of interest-rate risk and so is caused due to lack of knowledge and skills on the
Duration analysis as it focuses on value-at-risk with part of staffs.
much more accurate tool for gaining a sense for the
potential long term effect of changes in rate on capital. Operational Risk for the current years and previous
It considers both principal and interest cash flows. With year has been calculated based on the profit
interest rate swap points not being available in our calculated as per previous audited financials.
market context, the interest rate hedging is achieved
with matching maturities of cash flows. List of Identified Risks:
Market risk and settlement risk: is the risk of Some of the potential risks associated with banking
adverse deviations of mark-to-market value of operation in current scenario are listed as follows:
the trading portfolio during the period required
to liquidate the transactions. The four standard i. People Risk
market risk factors are: Equity risk (Share prices/
Dividend yields), Interest rate risk (Changes Human Resource Department is involved in
managing people who are considered as one of the biggest assets of the organization. Hence, HRD is engaged
in a broad range of human resource management practices to capitalize on those assets. In this regard, the
risk is basically associated with the human capital and processes for their mitigation are cited follows:
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 policy
3. Biasness in Performance Appraisal guidelines to mitigate risk related to the people. Operational
4. Mismanagement in handling Staff risk can occur due to poor or failed transaction processing
Facilities or poor management of the process. These losses could be
5. Out dated and inadequate HR policies due to individual mistakes or due to a poor process itself like
and procedures data entry errors, accounting errors, memos delivery failures,
incomplete legal documentation etc. For making department's
6. Late Attendance activities / workflow more effective more efficient, HRD is
7. HRIS System Failure working to prepare an Activities Process Management
8. Poor Staff 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

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

Destruction Policy
In its short span of operation, the Bank has placed
In the absence of the policy, management of a sound level of operational risk management and
documents recording and filing cannot be done control measures in its banking activities. The bank
systematically. As per regulatory requirement has adopted integrated risk management approach
also, documents are to be kept in physical record by formulating different policies, manuals, circulars
for certain period as per the nature/types of the and guidelines from time to time to control and
documents. Absences of document retention and mitigate material operational risks in the risk
retrieval policy and procedures may lead to disorder management process of the bank. Different process
in physical handling, failure of timely retrieval and related to cash and ATM operation, debit card
subsequently loss of the documents due to which the issuance, internet banking, TT-LC issuance, swift
bank is also exposed to regulatory risk as well. transfer service, inward and outward remittance,
draft issuance & reconciliation etc. has been
iii. Other Areas centralized; and branches are required for reporting
to head office in the respective functional areas on
The vault in the branch is being arranged with the periodical basis, for effective monitoring and control
security measures and sufficient space, so that excess of the activities being carried out in the branches.
movement of cash, cash items and other security
documents can be accommodated in abnormal The Bank follows an ongoing process of internal
circumstances. audit system in all operational and business units and
branches for verification of transactions/documents
Cash in Transit: To mitigate the risk associated and process and procedures followed in the course
with cash in transit bank has policy to carry cash in of action, by independent audit team/unit so that
four wheeler vehicle with security guard whenever errors are identified, and timely mitigated. Further,
possible, informing route to the local security the Bank has been conducting regular in-house
agencies, and also risk is covered through Cash in and external trainings on various areas at all level
transit insurance policy. to achieve high operational efficiency and personal
effectiveness in order to mitigate risk factors.
Security Arrangements
The bank has adopted following strategies and
Proper security arrangements should be placed in measures in its endeavor to create effective system
each branch premises to avoid possible risk of forgery, of operational management and its impact on capital
burglary, break ups and other natural disasters to adequacy of the bank:
avoid possible loss to the bank’s assets and human
resources. Such lapses in security management may Centralized monitoring and approval process
be like; absence of CCTV recording and monitoring of branch operations activities through central
system, lack of discipline and guided job description operations unit. Branch visits and surprise
to security guards/personnel, lack of security cash verification, vault checking is carried out
equipment in premises; like alarm system, smoke periodical basis to ensure branch has properly
detector, fire alarm, metal detector; lack of alternate managed the vault and cash operations.
entrances and exit door in the premises etc. Compliance policy of the bank to the
suggestions and instruction on shortcomings
In the absence of these security measures, there is as observed in internal, external audit and
always risk of potential financial loss and human periodical inspections from Nepal Rastra Bank.
casualties due to the unpredicted circumstances. Audit reports are reviewed periodically and
Similarly, lack of proper staff orientation on security follow up are made with the branch to update
arrangements, measures and procedures of use may pending instances within the deadline as per
lead to the risk of potential financial loss and human commitments made by the branches.
casualties’ even security equipment’s and resources Periodical review of branch operations
are available in the branches. functions by dedicated team of Operational
Risk Management Unit and Internal Audit the staff more accountability while carrying out
Department. their assigned task.
Periodical review, amendments and
implementation of operational manuals and V. Compliance Risk
guidelines to address each aspect of branch
operations. Compliance Risk is the risk resulting from non-
Communication and regular monitoring and compliance with laws and regulations and lack
follow up of policies, circulars and directives of adequate documentation to demonstrate
issued by Nepal Rastra Bank from time on compliance and risk from failure to comply with
through Compliance Department. financial reporting standards, agreements or
Regular training and orientation of staffs of regulatory requirements. The main Compliance Risk
the Bank on various operational processes and components are generally referred to as regulatory,
procedures. financial reporting and legal risk. We are constantly
Periodic visit, review and assessment of monitoring and mitigating compliance risk through
operational activities in branches by central the adoption of appropriate policies
operations unit.
Implementation of the system for data recording, and timely reporting as per the regulatory
management and reporting system for requirements.
monitoring branch operation activities. Updates
for additional field in system for mandatory VI. Liquidity Risk
requirement of customer data, KYC information
has been implemented for required MIS and Managing the risk has been integral part of the
reporting purpose. Restriction has been place banking business. Risk can be defined as the degree of
in system for user limits in cash transaction for uncertainty of future returns as well as transactions.
proper control and double check mechanism This uncertainty has varied dimensions and
to avoid the instances of wrong posting and therefore can be defined in diverse ways .In present
mistakes. context of financial markets worldwide on account
Procedures for review of customer in case of of severe competition, deregulations of interest
account opening and draft issuance for sanction rates both on lending as well as on deposits and
screening through sanction screening software other developments, banks have been increasingly
has been procured and to be implemented exposed to various types of risk as mentioned below.
shortly.
For central record and monitoring of draft and Liquidity Risk arises from funding needs during
TT issuance for import related transaction, a challenging money market conditions. Liquidity risk
system is being developed to insert transaction can be defined as a situation arising from where
details by branches on issuance of draft/TT. short-term assets values are not sufficient to match
Monitoring of pending documents, limit of short-term liabilities or unexpected cash outflows.
applicants, follow up and NRB reporting shall be The Bank as per the approved guidelines from the
monitored through system. Board has been maintaining a comfortable liquid
Procedures for validation of Good for Issuance asset to deposit ratio. This is monitored daily. The
(GFP) cheque and Balance Certificate (BC) investments for liquid assets, asides from cash and
issuance and Bank guarantee issuance shall be bank balances largely comprise of government
implemented so that the authenticity of such securities- treasury bills. A large government
documents can be checked and reviewed from securities portfolio is easily convertible into cash
the point of customers, beneficiary in bank's level funds during times of liquidity tightness.
website. Regular stress tests have also help assess hypothetical
Job description to each individual staff is scenarios of stresses on liquidity. ALCO is able to use
provided so as to make clarity on the assignments this information as well as other analyses such as
and responsibility of individual staff and keep GAP to manage liquidity effectively for the Bank.
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 onternal capital in relation to Bank’s risk profile; and
c. Application and further development of suitable risk management systems for the Bak.
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.
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 - - - -
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 121,776,556,630 - 921,749,118 122,698,305,748
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 1,034,648,589.81 - - 1,034,648,589.81
Derivative financial instruments 4.19 - 45,256,669 - 45,256,669
Due to Customers 4.20 104,850,510,393 - - 104,850,510,393
Borrowings 4.21 - - - -
Other Liabilities 4.23 2,589,714,215 - - 2,596,583,559
Debt Securities Issued 4.24 400,000,000 - - 400,000,000
Total Financial Liabilities 110,534,799,456 45,256,669 - 110,580,056,124
As on 31st Asar 2074

Note
Financial Assets
Cash and Cash Equivalents 4.1 9,364,024,369 - - 9,364,024,369
As on 31st Asar 2074

Note
Due from Nepal Rastra Bank 4.2 14,809,251,159 - - 14,809,251,159

Placement with Bank and Financial Institutions 4.3 572,623,011 - - 572,623,011
Derivative financial instruments 4.4 - 99,487,367 - 99,487,367
Other trading assets 4.5 - - - -
Loan and advances to B/FIs 4.6 2,331,288,696 - - 2,331,288,696
Loans and Advances to Customers 4.7 77,135,881,061 - - 77,135,881,061
Investment Securities 4.8 9,523,087,236 - 631,505,122 10,154,592,358
Investment in subsidiaries 4.9 219,775,000 - - 219,775,000
Investment in associates 4.10 263,837,500 - 263,837,500
Investment property 4.12 144,690,079 - - 144,690,079
Other Assets 4.16 275,219,907 - - 275,219,907
Total Financial Assets 114,639,678,018 99,487,367 631,505,122 115,370,670,507
Financial Liabilities
Due to Banks and Financial Institutions 4.17 1,738,945,338 - - 1,738,945,338
Due to Nepal Rastra Bank 4.18 39,376,400 - - 39,376,400
Derivative financial instruments 4.19 - - - -
Due to Customers 4.20 100,171,539,270 - - 100,171,539,270
Borrowings 4.21 - - - -
Other Liabilities 4.23 1,669,755,996 - - 1,669,755,996
Debt Securities Issued 4.24 400,000,000 - - 400,000,000
Total Financial Liabilities 104,019,617,004 - - 104,019,617,004
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 repective branches. Bank derives its revenue from the following products and services:
a. Lending Sevices
b. Treasury Services
c. Remittance Services
d. Card Services
2. The following table shows the operating segment information:
Particulars Province 1 Province 2 Province 3 Province 4 Province 5 Others Total

Revenue from external 1,122,531,332 838,779,178 7,169,980,512 922,083,474 1,091,107,931 1,678,741,625 12,823,224,052
customers
Intersegment revenues 61,558,405 3,102,601 4,627,001,781 32,177,833 99,907,710 49,989,875 4,873,738,206
Gross Revenues 1,184,089,737 841,881,780 11,796,982,293 954,261,307 1,191,015,641 1,728,731,501 17,696,962,258
Interest Revenue 1,054,230,591 773,569,084 6,795,488,103 879,596,815 1,029,812,014 895,056,710 11,427,753,316
Interest Expenses 335,930,991 160,296,882 6,270,936,766 252,897,580 341,286,357 243,556,383 7,604,904,959
Particulars Province 1 Province 2 Province 3 Province 4 Province 5 Others Total

Net Interest Revenue 718,299,600 613,272,202 524,551,337 626,699,235 688,525,657 651,500,326 3,822,848,357
Depreciation and 16,437,635 8,608,715 47,676,581 14,340,093 16,052,065 116,472,597 219,587,686
amortization
Segment profit/(loss) 308,778,095 228,111,239 1,846,945,920 281,324,014 270,052,557 326,423,283 3,261,635,108
Entity's interest in
the profit or loss of - - - - - - -
associates accounted for
using equity method
Other material non-cash - - - - - - -
items
Impairment of assets 152,029,507 98,347,307 1,057,395,034 90,286,280 107,545,310 59,303,398 1,564,906,837
Segment assets 8,728,319,841 9,184,654,223 57,358,160,266 5,939,315,914 9,344,799,309 4,579,227,759 95,134,477,311
Segment liabilities 7,155,252,583 3,598,235,173 79,761,011,611 5,507,096,512 7,173,557,255 3,315,283,517 106,510,436,651
3. Any transactoins that occurred between the reportable segments are recorded using interbranch
transaction account. This account is used mainly for accountiing the inter branch revenue. These reveneus
are cancelled out at the reporting date. There is no any 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
Total Revenues for reportable segments 17,696,962,258

Other Revenues -
Accrued Interest 53,978,733
Elimination of intersegment revenues (4,873,738,206)
Entity's revenues 12,877,202,785
b. Profit or Loss
Total profit/loss for reportable segments 3,261,635,108

Other profit or loss (58,461,028)
Elimination of intersegment revenues
Unallocated amounts- Staff Bonus (291,197,644)
Profit before Income Tax 2,911,976,437
c. Assets
Total assets for reportable segments 95,134,477,311

Other assets 1,223,595,397
Unallocated amounts- Staff Loans 347,742,614
Unallocated amounts- Cash and Balance with NRB 12,796,489,182
Unallocated amounts- Investment Securities 16,838,485,032
Unallocated amounts- Current Tax Assets 1,010,327,239
Unallocated amounts- Investment Property 91,917,079

Unallocated amounts- Deferred Tax Assets 177,846,130
Entity's Assets 127,620,879,984
d. Liabilities
Total liabilities for reportable segments 106,510,436,651

Other liabilities 3,336,765,709
Unallocated amounts- Derivative Instruments 45,256,669
Unallocated amounts-Due to Nepal Rastra bank 1,034,648,590
Unallocated amounts- Current tax liabilities 969,123,811
Unallocated amounts-Debt Securities 400,000,000
Entity's Liabilities 112,296,231,430
5. Information about products and services
Loans and advances 11,962,205,222

Investment securities 549,840,119
Remittance 167,912,147
Card services 197,245,298
Total Entity's Revenue 12,877,202,786
6. Information about geographical areas
(a) Domestic
Province 1 1,122,531,332
Province 2 838,779,178
Province 3 7,169,980,512
Province 4 922,083,474
Province 5 1,091,107,931
Province 6 147,355,266
Province 7 267,418,102
(b) Foreign
Total 11,559,255,795
7. Information about major customer.
The bank does not have any customer, which generate 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 carry 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:
Relationship Date of joining /

S. No. Name Type with Bank resignation
1 Mr. Chandra Prasad Dhakal KMPs Chairman
2 Mr. Suman Pokharel KMPs Director
3 Mr. Suraj Kumar Shrestha KMPs Director 22.05.2018 (Resigned)
4 Mr. Sudarshan Krishna Shrestha KMPs Director
5 Mr. Pawan Kumar Bhimsaria KMPs Director
6 Mr. Numanath Poudel KMPs Director 29.01.2018
7 Mr. Krishna Prasad Sharma KMPs Director 03.09.2018
8 Mr. Janak Sharma Poudyal KMPs CEO 29.11.2017
9 Mr. Anil Gyawali KMPs CEO 17.09.2017 (Resigned)
10 Global IME Capital Limited Entities where control exists Subsidiary
11 Global IME Laghubitta Bittiya Sanstha Limited Entities where control exists Subsidiary
12 Mero Microfinance Bittiya Sanstha Ltd Entities where significant influence exists Associate
13 First Microfinance Development Bank Entities where significant influence exists Associate
14 IME Life Insurance Company Ltd Entities where significant influence exists Associate
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.
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.

Short term employment benefits
-salaries and allowances 24,421,771 21,632,554
-post employment benefits 742,979 1,075,000
Director's fees and expenses 4,178,276 2,860,254
29,343,027 25,567,808
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 15%, 10% and 7.5% in First Microfinance Development
Bank, IME Life Insurance Company Ltd and Mero Microfinance Bittiya Sanstha Ltd. The nature of business are
mentioned in Note 4.11.

Global IME Capital Limited
-loans and receivables 1,054,076 125,067
-deposits 29,450,090 865,845,279
-payables 162,629 6,001,756
For the year ended
-interest paid on deposit 2,359,001 23,542,112
-dividend received 9,000,000 9,000,000
-service fee paid 1,581,490 1,500,000
-other expenses 448,509 530,575
-service fee received 64,603 -
- other income received 2,332,531 -
Reliable Capital Limited
-loans and receivables - -
-deposits - 83,354,786
-accrued interest payable - 1,018,630
For the year ended
-interest paid on deposit - 184,103
-dividend received 5,250,000 -

Global IME Laghubitta Bittiya Sanstha Limited
-loans and receivables 300,000,000 105,000,000
-deposits 7,811,748 392,455
For the year ended
-interest paid on deposit 4,796 112
-interest received on loans 22,033,562 949,315
First Microfinance Laghubitta Bittiya Sanstha Ltd
-deposits 5,859,957 14,804,408
For the year ended
-interest paid on deposit 51,767 5,982,343
-interest received on loans 20,824,592 10,920,751
Mero Microfinance Bittiya Sanstha Limited
-deposits 17,639,067 101,126,845
For the year ended
-interest paid on deposit 148,908 1,571,704
-interest received on loans 12,878,400 6,136,189
IME Life insurance co. Ltd.
-deposits 21,496 46,033,715
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
There has not been merger and acquisition between the bank and other entities. During the year two of the
subsidiaries Global IME Capital Ltd and Reliable Capital Ltd were merged with each other and 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 Globl IME Capital.
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”.
- 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 associates, 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.
No circumstances have arisen since the reporting date which would require adjustments to, or disclosure in
the financial statements.
5.11 Disclosure effect of transition from previous GAAP to NFRSs
1. Reconciliation of equity
As at 01.04.2073 As at 31.03.2074
End of last period
Explanatory
Date of Transition presented under
Note
previous GAAP)
Total Equity under previous GAAP 8,705,717,294 11,304,821,950
Adjustments under NFRSs - -
Impairment on loans and advances - -
Fair Value & employees benefit accounting of staff loan 1 - (32,938,690)
Lease accounting - -
Measurement of investment securities at fair value 2 185,319,289 130,455,784
Revaluation of property & equipment - -
Recognition of investment property 3 146,707,979 144,690,079
Amortization of debt securities - -
Deferred tax 4 (102,647,005) (112,961,598)
Defined benefit obligations 5 (75,847,612) (49,243,480)
Goodwill/Bargain purchase gain - -
Interest Income 6 85,977,027 183,574,969
Proposed Bonus Shares 7 - 808,034,166
8,945,226,972 12,376,433,179
2. Reconciliation of profit or loss
For the year ended 31.03.2074

Explanatory (the latest period presented under

Note previous GAAP)
Profit/(Loss) for the year
Previous GAAP Profit before tax 2,006,159,458
Adjustments under NFRSs:
Interest Income 6 97,597,942
Impairment of loan and advances -
Employees benefit amortization under staff loan 1 (32,938,690)
Defined benefit obligation of employee 5 16,235,609
Operating lease expense -

Amortization expense of debt securities -
Other operating income 3 (2,418,000)
Interest expense -
Depreciation & Amortization -
Impairment charge on investments 2 208,892
Deferred tax 4 (23,605,726)
Total adjustment to profit or loss 55,080,027
Profit or loss under NFRSs 2,061,239,486

Other Comprehensive Income 2 &5 (44,703,874)
Deferred tax 4 13,411,162
Total Comprehensive income under NFRSs 2,029,946,774
3. Effect of NFRSs adoption for the Statement of Financial Position
As at 31.03.2074 (End of last period presented

As at 01.04.2073(Date of Transition)
under previous GAAP)
Corresponding
Effect of Opening NFRS Effect of Year NFRS
Explanatory
Previous GAAP transition to Statement of Previous GAAP transition to Statement
Note
NFRSs Financial Position NFRSs of Financial
Position
Assets
Cash and Cash Equivalents 7,951,720,437 - 7,951,720,437 9,364,024,369 - 9,364,024,369
Due from Nepal Rastra Bank 5,436,424,014 - 5,436,424,014 14,809,251,159 - 14,809,251,159
Placement with Bank and Financial
1,626,073,355 - 1,626,073,355 572,623,011 - 572,623,011
Institutions
Derivative financial instruments 64,905,009 - 64,905,009 99,487,367 - 99,487,367
Other trading assets - - - - - -
Loan and advances to B/FIs 6 2,174,671,606 830,560 2,175,502,166 2,330,681,348 607,348 2,331,288,696
Loans and advances to customers 6 57,509,232,034 (146,044,657) 57,363,187,377 77,330,417,923 (194,536,862) 77,135,881,061
Investment securities 2 11,566,749,700 185,319,289 11,752,068,989 10,024,136,575 130,455,784 10,154,592,359
Current Tax Assets 645,646,478 - 645,646,478 951,113,247 - 951,113,247
Investment in subsidiaries 60,000,000 - 60,000,000 219,775,000 - 219,775,000
Investment in associates 44,000,000 - 44,000,000 263,837,500 - 263,837,500
Investment property 146,707,979 - 146,707,979 144,690,079 - 144,690,079
Property and equipment 934,939,965 - 934,939,965 1,030,664,732 - 1,030,664,732
Goodwill and intangible assets 31,262,121 - 31,262,121 28,731,164 - 28,731,164
Deferred Tax Assets 4 99,531,034 (47,051,218) 52,479,816 113,869,295 (73,887,530) 39,981,765
Other Assets 1 218,935,654 231,191,124 450,126,778 442,511,636 344,565,793 787,077,429
Total Assets 88,510,799,386 224,245,098 88,735,044,484 117,725,814,405 207,204,533 117,933,018,938
As at 31.03.2074 (End of last period presented

As at 01.04.2073(Date of Transition)
under previous GAAP)
Corresponding
Effect of Opening NFRS Effect of Year NFRS
Explanatory
Previous GAAP transition to Statement of Previous GAAP transition to Statement
Note
NFRSs Financial Position NFRSs of Financial
Position
Liabilities
Due to Banks and Financial
3,683,919,798 - 3,683,919,798 1,738,945,338 - 1,738,945,338
Institutions
Due to Nepal Rastra Bank - - - 39,376,400 - 39,376,400
Derivative financial instruments - - - -
Deposit from customers 73,398,997,418 - 73,398,997,418 100,171,539,270 - 100,171,539,270
Borrowings - - - - - -
Current tax liabilities 597,876,049 - 597,876,049 889,367,811 - 889,367,811
Deferred Tax Liabilities 4 - 55,595,787 55,595,787 - 39,074,068 39,074,068
Other Liabilities 5 1,724,288,827 (70,860,367) 1,653,428,460 2,373,729,470 (95,446,599) 2,278,282,871
Debt securities issued 400,000,000 - 400,000,000 400,000,000 - 400,000,000
Subordinated Liabilities - - - - - -
Total Liabilities 79,805,082,092 (15,264,580) 79,789,817,512 105,612,958,289 (56,372,531) 105,556,585,758
Equity
Share capital 6,164,267,536 6,164,267,536 8,080,341,661 - 8,080,341,661
Share premium - - - -
Reserves 2,541,449,758 239,509,679 2,780,959,437 4,032,514,455 263,577,064 4,296,091,519
Total equity 8,705,717,294 239,509,679 8,945,226,973 12,112,856,116 263,577,064 12,376,433,180
Total liabilities and equity 88,510,799,386 224,245,099 88,735,044,484 117,725,814,405 207,204,533 117,933,018,938
4. Effect of NFRS adoption for statement of profit or loss and other comprehensive income
For the year ended 31.03.2074 (the latest period

presented under previous GAAP)
Effect of
Explanatory Previous GAAP transition Amount as per
to
Note NFRSs
NFRSs
Interest Income 1&6 7,366,045,631 97,597,942 7,463,643,573

Interest Expenses (3,799,262,121) - (3,799,262,121)
Net interest income 3,566,783,510 97,597,942 3,664,381,452
Fee & Commission Income 866,510,173 - 866,510,173
Fee & Commission Expenses (164,616,955) - (164,616,955)
Net fee and commission income 701,893,217 - 701,893,217
Net interest, fee and commission income 4,268,676,727 97,597,942 4,366,274,669
Net Trading Income 230,633,246 - 230,633,246

Other Operating Income 151,697,777 - 151,697,777
Total Operating Income 4,651,007,750 97,597,942 4,748,605,692
For the year ended 31.03.2074 (the latest period

presented under previous GAAP)
Effect of
Explanatory Previous GAAP transition Amount as per
to
Note NFRSs
NFRSs
Impairment charge/(reversal) for loans and other losses 2 (20,710,970) 2,209,108 (18,501,862)
Net Operating Income 4,671,718,720 95,388,834 4,767,107,554
Less: Operating Expenses

Personnel Expenses 1 (1,056,769,844) (16,703,081) (1,073,472,925)
Other Operating Expenses (602,115,702) - (602,115,702)
Depreciation and Amortization (139,865,680) - (139,865,680)
Profit Before Tax 2,872,967,494 78,685,753 2,951,653,247
Non-operating income 17,073,242 - 17,073,242
Non-operating expense - - -
Operating profit 2,890,040,736 78,685,753 2,968,726,489
Income Tax Expenses (889,367,811) - (889,367,811)
Deferred Tax Expenses 4 5,486,533 (23,605,725) (18,119,192)
Profit For the Year 2,006,159,458 55,080,028 2,061,239,486
Other Comprehensive Income 2 (31,292,712) (31,292,712)
Total Comprehensive Income 2,006,159,458 23,787,316 2,029,946,774
Explanatory Notes:
Note No. Remarks

1 Amortization of Staff Loans and advances as per Market interest rate
2 Change in Fair values of quoted securities as valued with reference to Nepal Stock Exchange
Non-Banking Assets previously recognized with net off 100% provision now accounted
3 without providing provision
4 Deferred tax on all the adjustments under NFRS
5 Liability recognized for staff leave encashment and gratuity as per actuarial valuation.
6 Interest income on customer loans and staff loans recognized on accrual basis
7 Proposed Bonus Share previously recognized in Share Capital reversed
6. Capital Structure and Capital Adequacy Related disclosure as per

New Capital Adequacy
Tier 1 Capital and breakdowns of its Components
Particulars Amount (Rs.)

Paid Up Capital 8,888,375,827
Irredeemable Non-cumulative preference shares -
Share Premium -
Proposed Bonus Equity Shares -
Statutory General Reserve 1,995,200,610
Retained Earning 1,451,343,925
Un-audited current year cumulative profit/(loss) -
Capital Redemption Reserve 347,619,047
Capital Adjustment Reserve -
Dividend Equalization Reserve -
Debenture Redemption Reserve -
Other Free Reserve 80,193,500
Less: Intangible Assets (31,946,435)
Less: Deferred Tax Asset -
Less: Investment in equity of institutions with financial interests (565,000,000)
Adjustment under Pillar II -
Less: Loans & Facilities extended to related parties and restricted lending -
Common Equity Tier I Capital 12,165,786,474
Additional Tier I Capital
Perpetual Non-Cumulative Preference Share Capital -
Perpetual Debt Instruments -
Stock Premium -
Core Capital (Tier I) 12,165,786,474
Tier 2 Capital and breakdowns of its Components

Subordinated Term Debt -
General Loan Loss Provision 1,035,489,986
Exchange Fluctuation Reserve 99,158,504
Investment Reserve Fund 222,956,262
Supplementary Capital 1,357,604,752
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 Debentures 2076" of Rs.1, 000 each during the FY 2011-
12. The outstanding amount of the Debentures is Rs.400 million. The maturity of the debenture is
2076 B.S i.e. 10 years from the year of issue. Only 20% of this amount has been reckoned as eligible
for capital funds. Capital Redemption Reserve has been created from the year 2011-12 and the
outstanding balance of said Reserve is Rs. 347,619,047.
Deductions from capital
Deductions in Tier I Capital Fund have been made for equivalent amounts in respect of following
items:

Bank's equity investment in institutions with financial interest 565,000,000
Intangible Assets 31,946,435
Total Deductions 596,946,435
Total qualifying Capital

Common Equity Tier I 12,165,786,474
Core Capital (Tier I) 12,165,786,474
Supplementary capital (Tier II) 1,357,604,752
Total Capital Fund 13,523,391,227
Capital Adequacy Ratio :
Description Ratio
Common Equity Tier 1 Capital to Total Risk Weighted Exposures (After
Bank's adjustments of Pillar II) 10.32%
Tier 1 Capital to Total Risk Weighted Exposures(After Bank's
adjustments of Pillar II) 10.32%
Tier 1 and Tier 2 Capital to Total Risk Weighted Exposures(After Bank's
adjustments of Pillar II) 11.47%
Summary of the Bank’s internal approach to assess the adequacy of its capital to support
current and future activities, if applicable; and
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 “10% Global Bank Ltd. Debentures 2076" of Rs.1,000 each during the FY 2011-12.
The main features of the subordinated term debt issued by the Bank are as follows:
Maturity period: 7 Years.

Interest rate: 10% per annum.
Interest Payment frequency: Half Yearly.
Capital Redemption Reserve shall be created from the year of issue.
2. Risk Exposure
Risk weighted exposures for Credit Risk, Market Risk and Operational Risk:

Risk Weighted Exposure for Credit Risk 102,098,332,794
Risk Weighted Exposure for Operational Risk 6,011,850,924
Risk Weighted Exposure for Market Risk 1,733,388,406
Total Risk Weighted Exposures 109,843,572,125
Add: 3% of the total RWE as per NRB directives (6.4 a 9) 3,295,307,163.74
Add: Desired level of disclosure requirement has not been achieved. Add 3,295,307,164
3% of RWE (6.4 a 10)
Add: additional capital charge of 3% of Gross Income as per NRB 1,456,059,554
directives (6.4 a 7)
Total Risk Weighted Exposures (After Bank's Adjustments of Pillar 117,890,246,006
II)
Risk Weighted Exposures under each of 11 categories of Credit Risk;

a) Claims on government & central bank -
b) Claims on other official entities 123,577,204
c) Claims on banks 1,174,831,577
d) Claims on corporate & securities firms 51,582,312,338
e) Claims on regulatory retail portfolio 17,272,388,509
f) Claims secured by residential properties 6,313,948,757
g) Claims secured by commercial real state 1,025,733,521
h) Past due claims 1,859,245,195
i) High risk claims 5,769,246,044
j) Other assets 2,343,501,948

k) Off balance sheet items 14,633,547,702
Total Risk Weightage Assets 102,098,332,794
Total risk weighted exposure calculation table:
Particulars Amount ( Rs.)

Risk Weighted Exposure for Credit Risk 102,098,332,794
Risk Weighted Exposure for Operational Risk 6,011,850,924
Risk Weighted Exposure for Market Risk 1,733,388,406
Add: 3% of the total RWE as per NRB directives (6.4 a 9) 3,295,307,164
Add: Desired level of disclosure requirement has not been achieved. Add 3,295,307,164
3% of RWE (6.4 a 10)
Add: additional capital charge of 3% of Gross Income as per NRB 1,456,059,554
directives (6.4 a 7)
Total Risk Weighted Exposures 117,890,246,006
Common Equity Tier I 12,165,786,474
Total Tier 1 Capital Fund 12,165,786,474
Total Capital Fund 13,523,391,227
Common Equity Tier 1 Capital to Total Risk Weighted Exposures 10.32%
Total Tier 1 Capital to Total Risk Weighted Exposures 10.32%
Total Capital Fund to Total Risk Weighted Exposures 11.47%
3. Details of Non-Performing loan ( Total amount and net amount)
Particulars Loan (Rs.)

Restructured and rescheduled loan* 24,547,236
Substandard loan 170,559,137
Doubtful loans 77,246,272
Bad loan 445,085,526
Total 717,438,172
Provision For Loss 529,416,851
Net Amount 188,021,321
* Rescheduled/ Restructured loan also considered as NPA as per NRB Directive.
Non-Performing Loan Ratio
Particulars Ratio
NPA / Total Loan 0.77%
Net NPA / Net Loan 0.20%
Movement of Non- performing Assets:


Particulars Changes (%)
(Rs.) (Rs.)
Non-Performing Assets (Gross) 717,438,172 1,296,574,229 -44.67%
Non-Performing Assets (Net) 188,021,321 307,880,874 -38.93%
Write off of loans and interest Suspense during the quarter :

Write off of loans during the year 150,984,395
Write off of interest Suspense during the year 56,919,614
Movements in Loan Loss Provisions and interest suspense

Particulars Changes (%)
End (Rs.) (Rs.)
Loan Loss Provision 1,564,906,837 1,854,737,622 -15.63%
Interest Suspense 292,291,898 358,847,308 -18.55%
Details of additional Loan Loss Provision:
Current Year End

Particulars
(Rs.)
1. Pass 124,027,124
2. Watch List 45,418,595
3. Restructured (36,596)
4. Substandard (18,789,284)
5. Doubtful (58,847,539)
6. Loss (381,603,085)
Total Loan Loss Provision (289,830,784)
Segregation of Investment Portfolio:
Particulars Current year (Rs.)

Held for Trading -
Held to Maturity 19,406,322,527
Available for Sale 1,413,772,020
Total Investments 20,820,094,547
ABOUT SPECIAL RESOLUTION TO BE PRESENTED BEFORE 12TH ANNUAL GENERAL MEETING OF GLOBAL
IME BANK LIMITED TO BE HELD ON 11TH JANUARY, 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 of the Bank The Issued share capital of the Bank
To increase Bank’s
1 5 (Ka) shall be Rs. 10,000,00w0,000.00 shall be Rs. 16,000,000,000.00
authorized capital.
(Rupees Ten Billion only). (Rupees Sixteen Billion only).
The Issued share capital of the Bank The Issued share capital of the Bank
shall be Rs. 8,888,375,826.94 (Rupees shall be Rs. 10,310,515,959.25 To increase Bank’s
Eight Billion Eight Hundred Eighty (Rupees Ten Billion Three Hundred capital after issue
2 5 (Kha)
Eight Million Three Hundred Seventy Ten Million Five Hundred Fifteen of bonus share to
Five Thousand Eight Hundred Twenty Thousand Nine Hundred Fifty Nine shareholders.
Six and 94/100 only). and 25/100 only).
The Paid-up share capital of the Bank The Paid-up share capital of the
shall be Rs. 8,888,375,826.94 (Rupees Bank shall be Rs. 10,310,515,959.25 To increase Bank’s
Eight Billion Eight Hundred Eighty (Rupees Ten Billion Three Hundred capital after issue
3 5 (Ga)
Eight Million Three Hundred Seventy Ten Million Five Hundred Fifteen of bonus share to
Five Thousand Eight Hundred Twenty Thousand Nine Hundred Fifty Nine shareholders.
Six and 94/100 only). and 25/100 only).
Bank can make borrowings in

To expand the bank
4 4 (13) - convertible foreign currency from
business
foreign bank and financial institutions.
Bank can establish subsidiary to carry

To expand the bank
5 4 (14) - out the work related to securities
business
business.
Establishment of Bank’s branch/ To expand the bank

6 4 (15) -
subsidiary in foreign. business
Distribution of bonus shares and cash

To expand the bank
7 4 (16) - dividend to shareholders as required
business
from the profit earned by bank
Three Columns Format (Tin-Mahale) of the Amendments in the Bank’s Regulation.
Existing Reason for the

S.N. Clause Proposed Provision
Provision Amendment
Daily Travelling allowance to Chairman and Directors to be as

below:
SAARC
Daily Other
Nepal India Countries
31 (Ga) allowance Traveler Nations
(NRS) (INR) (Other than
(i) inside Nepal (USD)
India)(USD)
Rs. 1500/-
Chairman 11,000 11,000 200 250
Director 10,000 10,000 175 225

To make the benefits
availed by Board of
1 Travelling Expenses of Board of Directors to be on actual on the
directors to match
basis of Business Class. Lodging Expenses of Board of Directors
the present scenario.
to be on actual basis. Food expenses of Board of Directors to be
as below:
Travelling
Expenses SAARC
31 (Ga) Other
of Board of Nepal India Countries
(ii) Traveler Nations
Directors to be (NRS) (INR) (Other than
(USD)
on actual basis. India)(USD)
Chairman 5,500 5,500 225 325
Director 5,000 5,000 200 300

Schedule 4.29
STATEMENT OF LOANS AND ADVANCES TO DIRECTORS/CHIEF
EXECUTIVE /PROMOTERS/EMPLOYEES AND SHAREHOLDERS
As at Ashad 32, 2075 (16 July, 2018)
(in NPR)
Name of Promoter/ Outstanding up to Last Additional Outstanding as of Ashad
Recovered in Current Year
Director/ Year Lending end 2073
Chief Executive Principal Interest Principal Interest in this year Principal Interest
A. Directors - - - - - - -
1. ………………… - - - - - - -
2. ………………… - - - - - - -
3. ………………… - - - - - - -
B. Chief Executive - - - - - - -
1. ………………… - - - - - - -
2. ………………… - - - - - - -
C. Promoters - - - - - - -
- - - - - - -
- - - - - - -
- - - - - - -
- - - - - - -
D. Employees - -

E. Shareholders - - - - - -

Total - - - - - - -
Note:
As per Clause 6 of the Nepal Rastra Bank (Cental Bank) Directive No.6, loans given to employees are as per the Human Resource Policy
of the Bank are not treated as loan and reported in other assets as receivables.
Schedule 4.30(A)
Capital Adequacy Table
At the year end of Asar, 2075
(Rs. in Thousand)
1. 1 RISK WEIGHTED EXPOSURES Current Period Previous Period
a Risk Weighted Exposure for Credit Risk 102,098,333 90,242,441
b Risk Weighted Exposure for Operational Risk 6,011,851 4,828,920
c Risk Weighted Exposure for Market Risk 1,733,388 1,389,820
Total Risk Weighted Exposures (Before adjustments of Pillar II) 109,843,572 96,461,181
Adjustments under Pillar II
SRP 6.4a (5) ALM policies & practices are not satisfactory - -
SRP 6.4a (6) Add .....% of the total deposit due to insufficient Liquid Assets - -
SRP 6.4a (7) Add RWE equivalent to reciprocal of capital charge of 3 % of gross income. 1,456,060 1,218,316
Overall risk management policies and precedures are not satisfactory. Add 3%
SRP 6.4a (9) 3,295,307 3,858,447
of RWE
SRP 6.4a (10) Desired level of disclosure requirement has not been achieved. 3,295,307
Total Risk Weighted Exposures (After Bank's adjustments of Pillar II) 117,890,246 101,537,944

1.2 CAPITAL Current Period Previous Period
(A) Tier 1 Capital [Core Capital (CET 1 + AT 1)] 12,165,786 10,387,595
Common Equity Tier 1 (CET 1) 12,165,786 10,387,595
a Paid up Equity Share Capital 8,888,376 8,080,342
b Equity Share Premium - -
c Proposed Bonus Equity Shares - 808,034
d Statutory General Reserves 1,995,201 1,572,060
e Retained Earnings 1,451,344 162,847
f Unaudited current year cumulative profit/(loss)
g Capital Redemption Reserve 347,619 290,476
h Capital Adjustment Reserve - -
i Dividend Equalization Reserves
j Other Free Reserve 80,194 167,098
k Less: Goodwill
l Less: Intangible Assets 31,946 28,731
m Less: Deferred Tax Assets 99,531
n Less: Fictitious Assets
o Less: Investment in equity in licensed Financial Institutions
p Less: Investment in equity of institutions with financial interests 565,000 565,000
q Less: Investment in equity of institutions in excess of limits
r Less: Investments arising out of underwriting commitments
s Less: Reciprocal crossholdings
t Less: Purchase of land & building in excess of limit and unutilized
u Less: Cash Flow Hedge
v Less: Defined Benefits Pension Assets
w Less: Unrecognized Defined Benefit Pension Liabilities
1. 1 RISK WEIGHTED EXPOSURES Current Period Previous Period

x Less: Other Deductions
SRP 6.4a(1) Less: Shortfall in Provision
SRP 6.4a(2) Less: Loans & Facilities extended to related parties and 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) 1,357,605 1,155,671
a Cumulative and/or Redeemable Preference Share
Subordinated Term Debt less 20% Amortization ( 2.3(b) of Capital
b 80,000
Adequacy Framework)
c Hybrid Capital Instruments
d General Loan Loss Provision 1,035,490 866,044
e Exchange Equalization Reserve 99,159 76,589
f Investment Adjustment Reserve 222,956 133,038
g Assets Revaluation Reserve
h Other Reserves
Total Capital Fund (Tier I and Tier II) 13,523,391 11,543,266

1.3 CAPITAL ADEQUACY RATIOS Current Period Previous Period
Common Equity Tier 1 Capital to Total Risk Weighted Exposures (After Bank's adjustments 10.32% 10.23%
of Pillar II)
Tier 1 Capital to Total Risk Weighted Exposures(After Bank's adjustments of Pillar II) 10.32% 10.23%
Tier 1 and Tier 2 Capital to Total Risk Weighted Exposures(After Bank's adjustments of 11.47% 11.37%
Pillar II)
Schedule 4.30(B)
Risk Weighted Exposure for Credit Risk
(Rs. in Thousand)
Specific Risk
Eligible Risk
Book Value Net Value Weighted Previous
Provision CRM Weight
A. Balance Sheet Exposures Exposures Year
a b c d=a-b-c e f=d*e
Cash Balance 2,683,116 2,683,116 0% - -
Balance With Nepal Rastra Bank 4,768,987 4,768,987 0% - -
Gold - 0% - -
Investment in Nepalese Government Securities - 0% - -
All Claims on Government of Nepal 97,385 97,385 0% - -
Investment in Nepal Rastra Bank securities 17,837,702 17,837,702 0% - -
All claims on Nepal Rastra Bank - 0% - -
Claims on Foreign Government and Central Bank (ECA 0-1) - 0% - -
Claims on Foreign Government and Central Bank (ECA -2) - 20% - -
Claims on Foreign Government and Central Bank (ECA-4-6) - 100% - -
Claims On BIS, IMF, ECB, EC and MDB's recognized by the - 0% - -
framework
Claims on Other Multilateral Development Banks - 100% - -
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) 82,385 82,385 150% 123,577 171,380
Claims on domestic banks that meet capital adequacy 4,024,707 1,350 4,023,357 20% 804,671 647,817
requirements
Claims on domestic banks that do not meet capital adequacy 33,254 33,254 - 100% - 47,045
requirements
Claims on foreign bank (ECA Rating 0-1) 1,742,723 1,742,723 20% 348,545 824,259
Claims on foreign bank (ECA Rating 2) - 50% - -
Claims on foreign bank (ECA Rating 3-6) - 100% - -
Claims on foreign bank (ECA Rating 7) - 150% - 3,150
Claims on foreign bank incorporated in SAARC region operating
with a buffer of 1% above their respective regulatory capital 108,078 108,078 20% 21,616 30,625
requirement
Claims on Domestic Corporates 50,568,278 - 76,341 50,491,937 100% 50,491,937 39,599,803
Claims on Foreign Corporates (ECA 0-1) - 20% - -
Claims on Foreign Corporates (ECA 2) - - 50% - 6,484
Claims on Foreign Corporates (ECA 3-6) - 100% - -
Claims on Foreign Corporates (ECA 7) - - 150% - -
Regulatory Retail Portfolio (Not Overdue) 23,385,448 - 355,597 23,029,851 75% 17,272,389 17,541,067
Claims fulfilling all criterion of regularity retail except - 100% - -
granularity
Claims secured by residential properties 9,461,838 9,461,838 60% 5,677,103 5,364,457
Claims not fully secured by residential properties 150%
Claims secured by residential properties (Overdue) 244,366 16,533 227,833 100% 227,833 108,796
Claims secured by Commercial real estate 1,025,734 1,025,734 100% 1,025,734 875,842
Past due claims (except for claims secured by residential 1,677,537 438,040 1,239,497 150% 1,859,245 1,071,528
properties)
High Risk claims 3,850,466 4,302 - 3,846,164 150% 5,769,246 5,250,386
Investments in equity and other capital instruments of 330,685 17,440 313,245 100% 313,245 354,075
institutions listed in stock exchange
Investments in equity and other capital instruments of 518,087 518,087 150% 777,131 776,934
institutions not listed in the stock exchange
Specific Risk
Eligible Risk
Book Value Net Value Weighted Previous
Provision CRM Weight
A. Balance Sheet Exposures Exposures Year
a b c d=a-b-c e f=d*e
Staff loan secured by residential property 681,687 681,687 60% 409,012 417,599
Interest Receivable/claim on government securities 3,515 3,515 0% - -
Cash in transit and other cash items in the process of collection - 20% - -
Other Assets (as per attachment) 3,572,463 1,228,961 2,343,502 100% 2,343,502 2,454,384
TOTAL (A) 126,698,442 1,738,531 433,288 124,526,623 87,464,785 75,545,631

Specific Risk Risk

B. Off Balance Sheet Exposures Book Value Eligible Risk
Net Value Weighted Weighted
Provision CRM Weight Exposures Exposures
Revocable Commitments - 0% - -
Bills Under Collection - 0% - -
Forward Exchange Contract Liabilities 6,381,729 6,381,729 10% 638,173 588,568
LC Commitments With Original Maturity Upto 6 months 5,845,999 221,344 5,624,655 20% 1,124,931 760,050
domestic counterparty
Foreign counterparty (ECA Rating 0-1) - 20% - -
Foreign counterparty (ECA Rating 2) - 50% - -
LC Commitments With Original Maturity Over 6 months 461,875 458,247 3,628 50% 1,814 109,525
domestic counterparty
Bid Bond, Performance Bond and Counter guarantee domestic 10,295,471 359,541 9,935,930 50% 4,967,965 4,694,179
counterparty
Underwriting commitments - 50% - -
Lending of Bank's Securities or Posting of Securities as collateral - 100% - -
Repurchase Agreements, Assets sale with recourse - 100% - -
Advance Payment Guarantee 4,857,816 22,424 4,835,391 100% 4,835,391 3,287,809
Financial Guarantee - 100% - -
Acceptances and Endorsements 1,493,331 1,493,331 100% 1,493,331 3,901,825
Unpaid portion of Partly paid shares and Securities - 100% - -
Irrevocable Credit commitments (short term) 7,014,335 7,014,335 20% 1,402,867 1,207,156
Irrevocable Credit commitments (long term) 18,121 18,121 50% 9,060 4,657
Claims on foreign bank incorporated in SAARC region operating
with a buffer of 1% above their respective regulatory capital - 20% - -
requirement
Other Contingent Liabilities 127,168 20,575 106,593 100% 106,593 90,543
Unpaid Guarantee Claims 26,960 249 26,711 200% 53,422 52,498
TOTAL (B) 36,522,804 20,575 1,061,806 35,440,424 14,633,548 14,696,810
Total RWE for credit Risk Before Adjustment (A) +(B) 163,221,247 1,759,106 1,495,094 159,967,047 102,098,333 90,242,441
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 adjustments under 102,098,333 90,242,441
Pillar II
Schedule 4.30(C)
Eligible Credit Risk Mitigants
At the year end of Asar, 2075 (Rs. in Thousand)
Deposits Sec/
Govt.& G'tee of Sec/G'tee G'tee of
Deposits with G'tee of G'tee of
NRB Govt. of of Other domestic Total Previous
Credit exposures with Bank other Gold Securities MDBs Foreign
Nepal Sovereigns banks Year
banks/ Banks
FI
(a) (b) (c) (d) (e) (f) (g) (h) (i)
Balance Sheet Exposures
Claims on Foreign government and - -
Central Bank (ECA -2)
Central Bank (ECA-4-6)
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 1,350.00 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 76,341 - - 76,341 137,302
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 355,597 - - 355,597 394,665
Overdue)
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 by residential properties)
High Risk claims - 4,410
Deposits Sec/
Govt.& G'tee of Sec/G'tee G'tee of
Deposits with G'tee of G'tee of
NRB Govt. of of Other domestic Total Previous
Credit exposures with Bank other Gold Securities MDBs Foreign
Nepal Sovereigns banks Year
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 433,288 - - - - - - - - 433,288 536,377

Off Balance Sheet Exposures
Forward Exchange Contract Liabilities - -
LC Commitments With Original
Maturity Upto 6 months domestic 221,344 221,344 160,350
counterparty
Foreign counterparty (ECA Rating 0-1) - -
Foreign counterparty (ECA Rating 2) - -
LC Commitments With Original
Maturity Over 6 months domestic 458,247 458,247 2,928
counterparty
Bid Bond, Performance Bond
and Counter guarantee domestic 359,541 359,541 254,890
counterparty
Underwriting commitments - -
Lending of Bank's Securities or Posting - -
of Securities as collateral
Repurchase Agreements, Assets sale - -
with recourse
Advance Payment Guarantee 22,424 22,424 14,791
Financial Guarantee - -
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 249 249 -
Total 1,061,806 - - - - - - - - 1,061,806 432,959
Grand Total 1,495,094 - - - - - - - - 1,495,094 969,336
Schedule 4.30 (D)
Risk Weighted Exposure for Operational Risk

(Rs. in Thousand)
Fiscal Year
Previous
S.N. Particulars Year
2071/072 2072/073 2073/074
1 Net Interest Income 2,289,780 2,889,554 3,566,784
2 Commission and Discount Income 294,209 311,850 374,766
3 Other Operating Income 381,504 493,463 517,183
4 Exchange Fluctuation Income 203,129 251,095 279,708
Addition/Deduction in Interest Suspense during the

5 18,769 36,817 115,091
period
6 Gross income (a) 3,187,391 3,982,779 4,853,532 - Formula
7 Alfa (b) 15% 15% 15% 15% 3
8 Fixed Percentage of Gross Income [c=(a×b)] 478,109 597,417 728,030 142,879 381
Capital Requirement for operational risk (d)

9 601,185 262,574
(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)] 6,011,851 2,625,740
**Operational Risk for the current years and previous year has been calculated based on the profit calculated as per previous audited
financials.
Schedule 4.30(E)
Risk Weighted Exposure for Market Risk

(Rs. in Thousand)
Previous Year
Exchange Open Position Relevant Open
S.No. Currency Open Position (FCY) Relevant Open
Rate (NPR) Position Position
1 INR 2,130,049,569.94 1.60 3,409,783,352 3,409,783 2,796,027
2 USD (320,566.80) 109.70 (35,166,178) 35,166 (31,407)
3 GBP 4,355.01 145.07 631,760 632 2,499
4 EUR (1,486.93) 127.94 (190,242) 190 (897)
5 THB 164,170.00 3.30 541,236 541 477
6 CHF 2,720.00 109.35 297,420 297 91
7 AUD 2,155.42 80.97 174,527 175 376
8 CAD 3,600.00 83.10 299,175 299 257
9 SGD 16,827.51 80.20 1,349,576 1,350 1,139
10 JPY 349,359.00 0.97 339,996 340 911
11 HKD 21,420.00 13.92 298,173 298 312
12 DKK 28,800.00 17.13 493,258 493 285
13 SEK 260.00 12.30 3,198 3 3
14 SAR 150,351.00 29.16 4,384,671 4,385 3,602
15 QAR 145,199.00 30.04 4,362,097 4,362 2,476
16 AED 109,004.87 29.78 3,246,318 3,246 663
17 MYR 115,600.00 27.02 3,123,974 3,124 1,743
18 KRW 1,044,000.00 0.10 100,433 100 3
19 CNY 49,380.00 16.34 806,795 807 380
20 KWD 2,918.50 360.88 1,053,241 1,053 632
21 BHD 454.00 288.97 131,192 131 66

(a) Total Open Position 3,396,063,972 3,466,777 2,779,638
(b) Fixed Percentage 5% 5%
(c) Capital Charge for Market Risk (=a×b) 173,339 138,982
(d) Risk Weight (reciprocal of capital requirement of 10%) in times 10 10
(e) Equivalent Risk Weight Exposure (=c×d) 1,733,388 1,389,819

Schedule 4.34
Statements of loan taken by Promoters/ Group of Promoters from Other
Bank and Financial Institution against pledge of Promoters Shares
Share holding of Promoter
Loan Details
Group
Name of Promoters/ No of Pledged
S.No Loan Amount
Group of Promoters Percentage with Share
Total No Name of the Bank/Financial
Total Paid up
of share Institution
Capital
Century Commercial Bank

1 Ajay Jalan 14,596 0.02% 2,330,000.00 13,269.00
Limited
2 Amit Shrestha 36,618 0.04% Nabil Bank Limited 5,386,000.00 29,769.00
Archana Thakur
3 4,576 0.01% Jyoti Bikash Bank Limited 1,609,920.00 4,576.00
Mishra
4 Arjun Sharma 65,193 0.07% IME Co-Operative Service Limited 6,300,000.00 59,000.00
Citizens Bank International

5 Asha Suwal 68,658 0.08% 6,865,800.00 68,658.00
Limited
6 Ashok Rajbhandari 84,378 0.09% Kumari Bank Limited 10,400,000.00 68,032.00
7 Basanta Adhikari 166,075 0.19% IME Co-Operative Service Limited 60,000,000.00 166,067.00
Base Enterprises Pvt.

8 22,301 0.03% Prime Commercial Bank Limited 11,600,000.00 22,300.00
Ltd .
International Development Bank

0.31% 24,196,000.00 51,350.00
Limited
9 Bhaban Bhatta 274,636
Nepal Credit And Commerce
0.00% 150,173,021.72 220,520.00
Bank Limited
10 Bharat Regmi 28,528 0.03% Siddhartha Bank Limited 11,200,000.00 28,526.00
Bhim Prasad
11 9,208 0.01% Siddhartha Bank Limited 703,000.00 8,370.00
Timilsina
12 Binaya Upadhyay 22,402 0.03% Laxmi Bank Limited 7,668,000.00 17,480.00
International Development Bank

13 Bishnu Bhandari 27,059 0.03% 6,910,400.00 21,997.00
Limited
Kasthamandap Development
Captive Investment 0.11% 10,379,210.00 3,986.00
14 97,432 Bank Limited
Company Pvt.Ltd .
0.00% Laxmi Bank Limited 24,487,800.00 93,426.00
Continental 2.29% Nepal SBI Bank Limited 353,000,000.00 722,750.00

15 2,031,735
Investment Pvt. Ltd 0.00% Nepal Investment Bank Limited 70,000,000.00 293,000.00
16 Damber Adhikari 62,333 0.07% Sunrise Bank Limited 43,534,173.00 62,329.00
17 Deepak Karki 22,886 0.03% Prime Commercial Bank Limited 6,199,400.00 22,885.00
18 Dhan Sherchan 163,976 0.18% Sunrise Bank Limited 19,800,000.00 115,159.00
19 Diwaker Shrestha 15,333 0.02% Jyoti Bikash Bank Limited 696,950.00 13,939.00

20 Durga Neupane 1,071,086 1.21% 39,388,750.00 500,000.00
Limited
21 Gaurav Shrestha 7,298 0.01% Janata Bank Nepal Limited 616,000.00 6,634.00
Shree Investment and Finance Co.

22 Gayatri Sharma 15,243 0.02% 6,102,756.00 13,553.00
Limited

Loan Details
Group
S.No Loan Amount
Total Paid up
Capital
23 Geha Dhungana 110,173 0.12% Siddhartha Bank Limited 24,914,000.00 110,173.00
24 Hari Shrestha 9,155 0.01% Nabil Bank Limited 8,000,000.00 9,152.00
25 Harihar Dhungana 177,778 0.20% IME Co-Operative Service Limited 40,000,000.00 177,770.00
26 Him Gurung 3,048 0.00% Gurkhas Finance Limited 228,607.00 2,771.00
Homeland Developers
27 1,389,201 1.56% NMB Bank Limited 2,340,000,000.00 564,692.00
Pvt.Ltd

28 Janesh Shrestha 132,742 0.15% 18,330,400.00 132,649.00
Limited
29 Jayaram Nepal 183,091 0.21% IME Co-Operative Service Limited 46,758,000.00 148,848.00
30 Jeevan Bhattarai 9,155 0.01% Kumari Bank Limited 2,875,600.00 9,152.00
31 Jhuma Vaidya 36,618 0.04% Siddhartha Bank Limited 5,788,000.00 31,631.00
32 Joon Shrestha 22,886 0.03% IME Co-Operative Service Limited 5,844,400.00 18,604.00

33 Kalpana Kharel 22,886 0.03% 2,288,500.00 22,885.00
Limited
34 Kamal Poudel 138,078 0.16% IME Co-Operative Service Limited 48,000,000.00 112,253.00
35 Kamlesh Rateria 18,309 0.02% NIC Asia Bank Limited 38,400,000.00 6,967.00
36 Kanhaiya Mittal 18,309 0.02% Nabil Bank Limited 1,412,000.00 633.00
37 Kishan Dhanawat 59,349 0.07% Siddhartha Bank Limited 21,808,000.00 59,343.00
38 Krishna Pandey 244,065 0.27% IME Co-Operative Service Limited 36,000,000.00 244,055.00
39 Kusang Lama 149,263 0.17% Laxmi Bank Limited 518,000,000.00 149,253.00

40 Lok Paudel 39,271 0.04% 10,028,800.00 31,925.00
Limited
41 Mahesh Pandey 9,155 0.01% Yeti Development Bank Limited 3,500,000.00 7,189.00
42 Maheswor Paudel 4,942 0.01% Mahalaxmi Bikas Bank Limited 355,000.00 4,942.00
43 Mira Pandey 22,885 0.03% Mahalaxmi Bikas Bank Limited 1,150,000.00 20,052.00
44 Mohana Lohani 22,886 0.03% Sanima Bank Limited 7,325,387.20 19,769.00
45 Namkhang Lama 63,516 0.07% Laxmi Bank Limited 518,000,000.00 63,509.00
46 Narayan Uprety 9,155 0.01% Sunrise Bank Limited 1,525,541.00 7,442.00
47 Nawa Nepal 226,464 0.25% IME Co-Operative Service Limited 52,956,000.00 168,579.00

48 Niraj Kharel 9,155 0.01% 794,044.00 9,154.00
Limited
49 Nirmal Pradhan 15,879 0.02% Siddhartha Bank Limited 1,367,000.00 15,878.00
50 Niscesh Pradhan 6,351 0.01% Siddhartha Bank Limited 42,501,500.00 6,348.00
51 Nitesh Pradhan 6,351 0.01% Siddhartha Bank Limited 547,000.00 6,350.00
52 Prakash Joshi 57,049 0.06% Prime Commercial Bank Limited 4,732,851.60 47,147.00
53 Prakash Joshi 57,049 0.06% Prime Commercial Bank Limited 4,732,851.60 4,714.00

Loan Details
Group
S.No Loan Amount
Total Paid up
Capital
54 Pramita Adhikari 65,317 0.07% Sunrise Bank Limited 43,740,718.00 65,313.00
Prudential Capital
55 Management 29,368 0.03% Everest Bank Limited 9,380,000.00 25,369.00
Company Pvt. Ltd .
56 Pushpa Shrestha 158,178 0.18% Prabhu Bank Limited 27,522,618.41 158,178.00
57 Rajesh Agrawal 6,729 0.01% NIC Asia Bank Limited 5,082,500.00 6,727.00
NIC Asia Bank Limited 360,956,000.00 190,076.00
58 Rajesh Upadhyay 262,305 0.30% Sagarmatha Finance Ltd . 28800000 16288
Everest Bank Limited 16,290,000.00 33,701.00
59 Rajju Shrestha 25,331 0.03% NIC Asia Bank Limited 4,383,600.00 3,993.00

60 Raman Shrestha 155,384 0.17% 38,001,600.00 120,973.00
Limited
61 Rishab Rungta 22,886 0.03% Garima Bikas Bank Limited 1,850,000.00 20,805.00
62 Roma Pradhan 6,351 0.01% Siddhartha Bank Limited 547,000.00 6,350.00
63 Roni Malla 197,597 0.22% Siddhartha Bank Limited 17,058,000.00 197,596.00
Sapana Multipurpose Co-

64 Roshani Swar 12,106 0.01% 3,240,000.00 12,103.00
Operative Soceity Limited
65 Rukmani Pradhan 12,702 0.01% Siddhartha Bank Limited 43,003,500.00 12,701.00
S R Hydro And
66 Investment Pvt. Ltd. 20,826 0.02% Sunrise Bank Limited 6,400,000.00 20,373.00
Pvt Ltd
Samir Ghimire Yagya Nepal Credit And Commerce

67 19,039 0.02% 571,880.00 3,302.00
Raj Sharma Ghi Bank Limited
68 Sandeep Agarwal 1,180,081 1.33% Siddhartha Bank Limited 49,744,000.00 275,000.00
69 Sangeeta Gyawali 16,871 0.02% IME Co-Operative Service Limited 5,600,000.00 13,714.00
Manjushree Financial Institution

70 Sangita Sibakoti 24,213 0.03% 4,200,000.00 24,213.00
Limited
71 Sanjay Adhikari 222,565 0.25% Prabhu Bank Limited 360,000,000.00 222,554.00
72 Sanjay Sureka 87,683 0.10% Nepal Bangladesh Bank Limited 18,690,000.00 54,595.00
Mahalaxmi Bikas Bank Limited 1,350,000.00 15,000.00

73 Santosh Lohani 110,061 0.12%
Yeti Development Bank Limited 18,800,000.00 54,917.00
74 Saraswoti Sharma 32,794 0.04% Prabhu Bank Limited 13,836,074.00 32,794.00
75 Shamba Lama 63,516 0.07% Laxmi Bank Limited 241,865,200.00 52,714.00
76 Sher Chhetri 22,886 0.03% United Finance Limited 4,112,524.00 22,885.00
77 Shila Pokharel 17,537 0.02% Siddhartha Bank Limited 1,392,000.00 17,537.00

78 Shovakar Neupane 475,644 0.54% 221,660,000.00 467,555.00
Limited
79 Shyam G C 1,984 0.00% Machhapuchchhre Bank Limited 261,580.00 1,804.00


Loan Details
Group
S.No Loan Amount
Total Paid up
Capital
80 Shyam Shrestha 68,275 0.08% Kumari Bank Limited 18,772,376.00 25,987.00
81 Shyam Sijapati 9,155 0.01% Kumari Bank Limited 1,489,538.88 9,154.00
82 Shyam Sundar Khetan 48,655 0.05% Kumari Bank Limited 3,803,161.55 48,654.00
Sky Touch Investment

83 28,148 0.03% Prabhu Bank Limited 2,409,000.00 21,967.00
& Consultant Pvt. Ltd.
84 Sonam Gyatso 174,669 0.20% Laxmi Bank Limited 531,302,389.00 174,665.00
Srijana Pandey Yeti Development Bank Limited 3,775,000.00 7,189.00

85 9,154 0.01%
Lamsal Mahalaxmi Bikas Bank Limited 156,000.00 1,965.00
Sunrise Bank Limited 60,000,000.00 197,370.00

86 Suhrid Raj Ghimire 431,961 0.49%
Nepal SBI Bank Limited 353,000,000.00 196,000.00
87 Sukunda Pradhan 157,793 0.18% Everest Bank Limited 24,778,000.00 66,000.00
88 Suman Acharya 20,047 0.02% Siddhartha Bank Limited 8,400,000.00 20,042.00
Sanima Bank Limited 44,936,000.00 40,516.00

89 Sumit Agarwal 2,672,797 3.01%
Kumari Bank Limited 10,000,000.00 1,316,140.00
Sunita Sureka
90 270,773 0.30% Nepal Bangladesh Bank Limited 321,980,000.00 159,848.00
Agrawal
91 Suraj Adhikari 9,155 0.01% NIC Asia Bank Limited 5,774,000.00 9,154.00
Manjushree Financial Institution

92 Suresh Bhandari 9,155 0.01% 7,880,000.00 9,152.00
Limited
93 Tenzing Nepali 63,516 0.07% Prabhu Bank Limited 40,000,000.00 63,511.00
94 Tikaram Neupane 512,446 0.58% Prabhu Bank Limited 99,249,802.00 512,445.00
95 Tilak Bhandari 19,549 0.02% Siddhartha Bank Limited 3,000,000.00 16,886.00
Surendra Bahadur Sincere Saving & Credit

96 8,657.00 0.01% 7,100,000.00 3,393.00
Nhuchhe Pradhan Cooperative
Sincere Saving & Credit

97 Sujana Pradhan 635.00 0.00% 7,100,000.00 249.00
Cooperative
Sincere Saving & Credit

98 Sangeeta Pradhan 635.00 0.00% 7,100,000.00 249.00
Cooperative
PRINCIPAL INDICATORS
F.Y. F.Y. F.Y. F.Y. F.Y. F.Y. F. Y. F. Y. F. Y. F. Y.
Particulars Indicators
2074/75 2073/74 2072/73 2071/72 2070/71 2069/70 2068/69 2067/68 2066/67 2065/66
1. Percentage of Net Profit /
% 41.24% 43.41% 35.03% 30.32% 41.05% 24.40% 28.97% 26.19% 10.92% 7.87%
Gross Income
2. Earnings Per Share Rs. 23.64 25.51 19.33 15.58 19.57 16.15 11.79 14.06 4.95 2.63
3. Market Value per Share Rs. 290 388 515 479 640 432 160.00 209.00 260.00 570
4. Price Earning Ratio Ratio 12.27 15.21 26.64 30.74 32.70 26.74 13.57 14.86 52.47 216.73
5. Stock Dividend on share
% 16% 10% 16% 23% 21.00% 15.00% 3% 6.67% - -
capital (Bonus Share)
6. Cash Dividend on share
% 0.00% 10% 0.00% 0.00% 4.00% - 10% 5.35% 5.00% -
Capital
7. Interest Income/Loans &
% 12.88% 10.20% 8.98% 10.00% 10.88% 13.43% 13.27% 15.37% 12.04% 7.47%
Advances
8. Employee Expenses/Total
% 56.54% 59.13% 44.26% 46.10% 36.96% 37.40% 34.22% 39.50% 32.38% 33.29%
Operating Expenses
9. Interest Expenses to Total
% 7.26% 4.24% 3.06% 4.21% 4.74% 5.97% 7.47% 8.33% 6.26% 4.02%
Deposits and Borrowings
10. Exchange Fluctuation Gain/
% 6.91% 5.89% 6.36% 6.41% 5.84% 3.97% 5.52% 3.60% 5.29% 9.04%
Total Income
11. Staff Bonus/ Total Staff
% 22.16% 26.92% 29.77% 22.02% 34.43% 22.51% 24.09% 16.79% 14.89% 8.88%
Expenses
12. Net Profit/Loans &
% 2.33% 2.62% 2.27% 1.91% 2.26% 1.66% 1.28% 1.76% 0.60% 0.29%
Advances
13. Net Profit/ Total Assets % 1.67% 1.75% 1.58% 1.39% 1.62% 1.15% 0.87% 1.28% 0.42% 0.21%
14. Credit to Deposit Ratio
a. Total Credit / Deposit % 84.70% 77.32% 81.47% 83.47% 82.27% 79.13% 77.15% 84.82% 83.48% 83.78%
b. Total Credit / Deposit and
% 75.35% 71.24% 72.96% 74.41% 73.64% 72.28% 70.51% 78.02% 75.59% -
Core Capital
15. Total Operating Expenses/
% 1.85% 1.54% 1.70% 1.99% 1.69% 1.99% 1.51% 2.24% 1.80% 1.58%
Total Assets
16. Adequacy of Capital Fund

on Risk Weightage
Assets
a. CET1 % 10.32% 10.23% 11.01%
b. Core Capital % 10.32% 10.23% 11.01% 11.24% 10.94% 9.17% 9.21% 10.14% 10.01% 9.42
c. Total Capital Fund % 11.47% 11.37% 12.35% 12.69% 12.38% 11.14% 11.66% 11.09% 10.90% 10.31%
17. Liquidity % 25.34% 33.54% 35.14% 30.12% 31.11% 32.25% 34.13% 27.23% 30.00% 27.00%
18. Non Performing Loans/
% 0.77% 1.60% 1.89% 2.23% 2.55% 2.27% 1.64% 2.52% 0.85% 0.09%
Total Loans
19. Weighted Average Interest
% 4.86% 3.36% 4.52% 4.11% 5.34% 4.21% 3.88% 3.27% 3.05% 3.05%
Rate Spread
20. Book Net worth ( Rs. in Mio) Rs. 13,579 12,376 8,945 7,323 6,126 3,231 2,537 1,708 1,521 1,049
21. Total Shares ( Including
Number 88,883,758 88,883,758 71,505,503 61,642,675 49,766,402 27,808,585 22,503,568 15,000,000 14,733,502 10,000,000
Proposed Bonus Share)
21. Total Employees Number 1700 1348 1107 1117 1098 838 664 386 376 241
**Principal Indicators before financial year 2073/74 have been calculated based on the previous audited financials.
Branch Managers
PROVINCE 1
DIPENDRA KADARIYA
BHOTKHOLA CHAINPUR BRANCH DHULABARI BRANCH PHIKAL BRANCH
GOURAB TRITAL KRISHNA PRASAD NEPAL SANJEEB KOIRALA BHUPAL GHIMIRE
Phone No: 029-570250/570325 Phone No: 023-560771/73/74 Phone No: 027-540472
BIRATCHOWK CHARALI BRANCH GAIGHAT BRANCH TAPLEJUNG BRANCH
MADHU KOIRALA MOBINA DHUNGANA RABIN RAJ DAHAL JYOTI KAFLE
Phone No: 021-546038, 545457 Phone: 023-460601 Phone No: 035-420932 Phone No: 024-460632
BIRATNAGAR BRANCH DAMAK BRANCH ITAHARI BRANCH TERHATHUM BRANCH
SHASHI SEKHAR SHARMA SURESH KUMAR SHRESTHA MUKESH KUMAR SHAH OM PRAKASH BHANDARI
Phone No: 021-440551/52/53/54 Phone No: 023-582364/65 Phone No: 025-586617 Phone No: 026-460732
birtamode DHARAN BRANCH PHIDIM BRANCH
PAWAN KUMAR POUDYAL LAXMI DUMRE ANANTA KUMAR ACHARYA
Phone No: 023-544703 Phone No: 025-530340, 527340 Phone No:024-520990
PROVINCE 2
NEERAJ SHRESTHA
BARDIBAS FATUWA LAALBANDI NIJGADH
SAGAR RAJ THAPA MUKESH KUMAR THAKUR LOKNATH PAUDEL SUSHIL KUMAR DWIVEDI
Phone No: 9844120193 Phone No: 046-50167273 Phone No: 053-540174
BELWA FETA LAHAN BRANCH RAJBIRAJ BRANCH
RAJ KUMAR MAHATO ARJUN KUMAR ADHIKARI MAHESH KUMAR MAHATO MANISH MAHASETH
Phone No: 9854038760 Phone No: 053-620462 Phone No: 033-561261/62 Phone No: 031-523582/83
BIRGUNJ BRANCH GOLBAZAR BRANCH MIRCHAIYAYA BRANCH SIRAHA BRANCH
RAKESH GYAWALI MOHAN PRASAD SAH SHRAWAN KUMAR MAHASETH RAJ KUMAR SHARMA
Phone No: 051-530337/38/520019 Phone No: 033-540390 Phone No: 033-550804 Phone No: 033-521165
DAKNESHWORI JANAKPUR BRANCH MITHILA BIHARI
RANJIT KUMAR MAHATO BIJAY KUMAR SHAH HARI NARAYAN SAH
Phone No: 9804315965 Phone No: 041-420305, 420206 Phone No: 9811880235
PROVINCE 3
RAJ RIMAL
ANAMNAGAR BRANCH GOTHATAR BRANCH KOTESHWOR BRANCH SATDOBATO BRANCH
MADHAV RAJ SHARMA POKHAREL DEVENDRA PRASAD RIJAL SUDIP BHAKTA WAGLE SAMA SHAH
Phone No: 01-4242764, 4249242 Phone No: 01-6201228 Phone No: 01-4602030 Phone No: 01-55152431, 5152267
BAIRENI BRANCH GWARKO BRANCH KULESHWOR BRANCH SINAMANGAL BRANCH
ATMA RAM BASKOTA BIBEK THAPA SURENDRA SHARMA DHAKAL MALA GHIMIRE
Phone: 010-692655/403086 Phone No.: 01-5547660 Phone No: 01-4286445, 4286446 Phone No: 01-4478616, 4478618
BANASTHALI BRANCH GYANESHWOR BRANCH KUPONDOLE BRANCH SINDHULI BRANCH
BINOD MAHARJAN RABINDRA DHAKAL RITHEE SHAHI KESHAV PAUDEL
Phone No: 01-4366074 Phone No: 01-4445008 Phone No: 01-5549872, 5549863
BANEPA BRANCH GYANESHWOR II BRANCH KURINTAR BRANCH SUKEDHARA BRANCH
YEK RAJ BARTAULA DEEPA NEUPANE SAGAR SHRESTHA BIMAL DHAKAL
Phone No. 011-663017/19 Phone No: 01-4441860, 4441737 Phone No: 056-410003 Phone No: 4375639
PROVINCE 3
BARHABISE BRANCH HATTIGAUDA BRANCH LAGANKHEL BRANCH SUNDHARA BRANCH
BIMAL KUMAR POKHAREL NABIN ACHARYA MERINA SHRESTHA BRIHASPATI TIWARI
Phone No.: 011-489268 Phone No: 01-4375275, 4376241 Phone No: 01-5548950, 5548951 Phone: 01-4218989, 4218927
BELCHOWK BRANCH HETAUDA BRANCH MANAMAIJU BRANCH SURYABINAYAK BRANCH
GANESH ADHIKARI HEM RAJ SHARMA KRISHNA PRASAD LAMICHHANE DAMBER THAKURATHI
Phone: 056-572007 Phone No: 057-527368/527378 Phone No: 01-4027307 Phone No: 01-6615389, 6615390
BETHANCHOWK BRANCH INDRA CHOWK BRANCH MANTHALI BRANCH TADI BRANCH
SAROJ K.C. UROJ SHRESTHA SABIN MAHARJAN BIJJU SUBEDI
Contact No. : 9851201589 Phone No: 01-4212770,4212870 Phone: 048-540456 Phone No: 056-560085/96
CHABAHIL BRANCH JORPATI BRANCH MID BANESHWOR BRANCH TATOPANI BRANCH

(closed until further notice)
RAJU DEVKOTA SURESH SHARMA SHUSIL KUMAR BUDHATHOKI

Phone No : 01-4487580 Phone No.: 01-4911845 Phone No: 01-4464366 Phone No: 011-480192
CHETRAPATI BRANCH KALANKI BRANCH NAKKHU BRANCH THAMEL BRANCH
DIPAK POKHREL KRISHNA HARI ADHIKARI PRAKASH K.C. DEVENDRA SHRESTHA
Phone No: 01-4249033 Phone No: 01-4288074, 4288075 Phone No.: 01-5185346, 5185084 Phone No: 01-4701327, 4701323
CORPORATE BRANCH KAMALADI BRANCH NARAYANGHAT BRANCH THANKOT BRANCH
PRATIKSHYA OJHA SUBHASH SAPKOTA SACHIN NEUPANE RABINDRA PRASAD NEPAL
Phone No: 01-4243891, 4241219 Phone: 01-4446150, 4446151 Phone No: 056-571135/571536 Phone No. 01-4310235
DHAPASI BRANCH KANTIPATH BRANCH NEW ROAD BRANCH TRISHULI NUWAKOT
BISHNU PRASAD POKHREL ANAMIKA SINGH CHITRA KUMAR CHALISE GANGA BAHADUR ROKA
Phone No: 01-4355919, 4356449 Phone No: 01-4231198 Phone No: 01-4223433,4240878 Phone: 010-561626
DILLIBAZAR BRANCH KHOLESIMAL BRANCH PANIPOKHARI BRANCH TRIPURESHWOR BRANCH
SHRUTI HADA SHRESTHA YUBARAJ POUDEL SWAICHA RANA GOKARNA PRASAD BARTAULA
Phone No: 01-4437388, 4437071 Phone: 056-413144/45 Phone No: 01-4002505, 4002503 Phone No: 01-4239170, 4239171
GONGABU BRANCH KIRTIPUR BRANCH PULCHOWK BRANCH
PESHAL KUMAR DAHAL SHOVA NEUPANE SAROJA HADA NYACHHYON
Phone No: 01-4358657, 4385986 Phone No: 01-4335941 Phone: 01-5009275/76
PROVINCE 4
AJAY THAPA
AMARSINGH CHOWK BRANCH BHOTEWODAR BRANCH GORKHA BAZAR SHAVAGRIHA CHOWK, POKHARA
KAMANA POUDEL JANMABHUMI GURUNG BIDUR ADHIKARI MANDIP BARAL
Phone No: 9851185893 Phone No: 066-400075/76 Phone No: 064-420337 Phone: 061-539406/537881
BAGLUNG BRANCH BURTIBANG BRANCH KAWASOTI BRANCH SIRANCHOWK BRANCH
NARAYAN PRASAD POUDYAL SOKENDRA THAPA MAGAR KHEM NATH SHARMA PAUDEL RAJENDRA DHAKAL
Phone No: 068-522245/46 Phone Number: 068-410174 Phone No: 078-540527/28 Phone No: 064-691154
BEGNAS BRANCH DAMAULI BRANCH KUSHMISHERA BRANCH SUNDAR BAZAR BRANCH
DINESH ADHIKARI NABA RAJ POUDEL PRAKASH SHARMA BIKASH SHRESTHA
Phone: 061-561779 Phone: 065-560009 Phone No: 068-421077/78 Phone No: 066-402039
BENI BRANCH DUMRE BRANCH KUSMA BRANCH BHORLETAR BRANCH
BHOLA NATH PAUDEL UJWAL POKHAREL GOVINDA PRASAD ACHARYA PRADEEP JOSHI
Phone No: 069-521004 Phone: 065-580317 Phone No: 067-421244 Phone No: 066-410032/33
PROVINCE 4
BESISAHAR BRANCH GAIDAKOT BRANCH MANAKAMANA BRANCH GALKOT BRANCH
DIPAK KHANAL NAGENDRA RAJ GAUTAM RAMESH SANJEL SHYAM PRASAD DHAKAL
Phone No: 066 -521035 Phone No: 078-503047/501155 Phone: 064-460210 Phone No: 068-412040
NEW ROAD, POKHARA BRANCH
ARJUN PAUDEL
Phone No: 061-527503/04
PROVINCE 5
DHOJ SAUD
ARGHAKHANCHI BRANCH GHORAHI BRANCH MILAN CHOWK, BUTWAL TAMGHAS BRANCH
PRALHAD NEUPANE DILLI RAJ BHUSAL KESHAB PRASAD WOLI YOGENDRA RAYAMAJHI
Phone No: 077-420754 Phone No: 082-562285 Phone No: 071-438174 Phone No: 079-520038/520744/45
BUTWAL RAM MANDIR LINE JITPUR BRANCH PURBA KHOLA BRANCH TANSEN BRANCH
JOG LAL BHUSAL DILLI RAJ DHAKAL SUBASH KANTA JOSHI MANOJ SHARMA
Phone No: 071-551484/85/86 Phone No: 076-550352/53 Phone No: 9856046192 Phone No.: 075-522825/26
BHAIRAHAWA BRANCH KOHALPUR BRANCH PUSHPALAL CHOWK, NEPALGUNJ TRIBHUWAN CHOWK, NEPALGUNJ
DILIP DANGI NIRMAL RAJ BUDHATHOKI DHOJ SAUD VIKASH SHRESTHA
Phone No: 071-523803/04/05 Phone: 081-541688 Phone No: 081-526392/95 Phone No: 081-522037/38/522151
BHUMAHI BRANCH LIWANG BRANCH SULICHAUR BRANCH TULSIPUR BRANCH
NAVIN KUMAR PANTHI PRAVIN ACHARYA UDAY KUMAR SHARMA SHAMBHU KARKI
Phone: 078-415134/35 Phone No: 086-440284 Phone: 086-401069 Phone No: 082-522844
GAUDAKOT BRANCH MAJUWA BRANCH WAMI BRANCH
LOK BAHADUR BAKABAL THAPA KHEM RAJ NEUPANE MADHAV UPADHYAY
Phone No: 079-620038 Phone No: 079-692070 Phone No: 079-690058
PROVINCE 6
AASHISH RAJ PANDEY
KALIKOT BRANCH RASKOT BRANCH RUKUM BRANCH SURKHET BRANCH SALYAN BRANCH
KASHI RAJ BHANDARY DINESH BHANDARI NIMESH PURI AASHISH RAJ PANDEY RESHMI RAJ GAIRE
Phone No: 087-440273/74 Phone No: 9848177570 Phone No: 088-530218 Phone No: 083-525471/72
PROVINCE 7
MAHENDRA ADHIKARI
AJAYAMERU BRANCH BOGTAN BRANCH DOGADA KEDAR BRANCH PURBI CHAUKI BRANCH
LILADHAR BHATT CHET RAJ PATHAK DIPENDRA SINGH THAGUNNA SHIV RAJ BISTA
Phone No: 9858034431 Phone No: 9851179218 Phone No: 9851179218 Phone No: 9851056721
ATTARIYA BRANCH DADELDHURA BRANCH LAMKI BRANCH BRANCH PURCHOUDI BRANCH
SUSHIL PADAL TOYANATH JOSHI SUBASH KANDEL KESHAB RAJ JOSHI
Phone No: 091-550637, 550987 Phone No: 096-420276 Phone No: 091-540505/06/07 Phone No: 096-690808
BAITADI BRANCH DHANGADI BRANCH MAHENDRANAGAR BRANCH
KHAGENDRA PANDEYA SHAMBHU PRASAD JOSHI DIPENDRA BAHADUR SINGH
Phone No: 095-520542/43 Phone No: 091-417238/39/40 Phone No: 099-520946/48
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
PROVINCE 3 BAGGIKHANA ATM KATHMANDU 1
BAIRENI BRANCH DHADING 1
BALKHU PANIKA ATM KATHMANDU 1

BANASTHALI BRANCH KATHMANDU 1
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
PROVINCE 3
HATTIGAUDA BRANCH KATHMANDU 1
HETAUDA BRANCH MAKAWANPUR 1
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
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
PROVINCE 3 SINAMANGAL BRANCH KATHMANDU 1
SUKEDHARA BRANCH KATHMANDU 1
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
PROVINCE 4 BURTIBANG BRANCH BAGLUNG 1
DAMAULI BRANCH TANAHUN 1
GAIDAKOT BRANCH NAWALPUR 1
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
PROVINCE 4
PAME LOUNGE ATM KASKI 1
POKHARA BRANCH KASKI 1
SABHAGRIHA CHOWK BRANCH KASKI 1
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
Branchless Banking
PROVINCE BLB PARENT BRANCH BLB REPRESENTATIVE ADDRESS CONTACT NO
Narendra Kumar
BIRTAMOD Khudunabari VDC 09, Birtamod 9842640716
Shrestha
9819044800 /
CHAINPUR Manmaya Limbu Chainpur Na. Pa.-03, Pokhari Bazzar
9812397629
CHAINPUR Anirudra Singh Lingkha Dharmadevi Na. Pa.-04, Yakhkhachowk 9852051039
CHAINPUR Yubraj Trital Chainpur Na.Pa.-11, Lohakot, Sankhuwasava 9842164441
DAMAK Ganga Nayak Kamal Ga. Pa.-04, Masaygadh 9813672432
GAIGHAT Maheshwor Prasad Kafle Triyuga Na. Pa.-07, Chuhade 9862790011
ITAHARI Jagat Bahadur Poudel Baraha Na. Pa.-05, Kalabanjar 9800996255
Province 1 ITAHARI Jageshwor Shahu Sudi Koshi Ga.Pa-03, Jamuwa 9842055102
ITAHARI Padam Rana Letang Na. Pa.-3, Milan Chowk 9842282888
ITAHARI Som Nath Acharya Pathree Sanishchare Na. Pa.-4, Sanishchare 9860549328
Birendra Kumar
PHIDIM Hilihang Ga. Pa.-01, Bhaluchowk 9852684248
Yonghang
PHIKKAL Yog Prasad Gautam Suryodaya Na. Pa.-14, Katuse 9806005054
TAPLEJUNG Tanka Prasad Khatiwada Meringden Ga. Pa.-18, Dovan Bazzar 9752608116
9863712690 /
TAPLEJUNG Chandra Kumar Upreti Hilihang Ga. Pa.-2, Singapur
9815998383
TERHATHUM Arjun Shrestha Laaliguras Na. Pa.-07, Lasune 9852062224
9802382232 /
BELWA Ram Ayodha Thakur Parsagadhi Na.Pa.-1, Manawa Bazar, Parsa
9819291446
GOLBAZAR Sitaram Mahato Arma Na. Pa.-01, Mahanor 9801044655
Nagarain Municipality ward no. 03, Fulgama,
JANAKPUR Dipendra Prasad Sah 9807603060
Dhanusha
JANAKPUR Surendra Kumar Mandal Pipara Na. Pa.-06, Ratauli 9807830265
9801612004 /
JANAKPUR Sanjaya Kumar Sha Sabela Na. Pa.-03, Sabela Bazaar
041-401074
JANAKPUR Jagdish Kumar Sah Manara Siswa Na. Pa.-6, Sarpallo Bazaar 9801600319
Province 2
JANAKPUR Shyam K. Chaudhary Shahidnagar Na. Pa.-3, Yadukuha 9854020330
LAHAN Dinesh Chaudhary Sukhupur Na. Pa.-8, Sukhipur Bazar 9852832901
LALBANDI Bijay Kumar Sah Kanu Ishwarpur Ga. Pa.-01, Chaukhali 9854035920
Rajaram Sub Money 9804722157 /
MIRCHAIYA Kalyanpur Na. Pa.-11, Kalyanpur Jabadi
Transfer Pvt. Ltd 033-403006
RAJBIRAJ Dipendra Prasad Sah Dakneshwori Na. Pa.-09, Pathargada Chowk 9808073085
RAJBIRAJ Shiv Charan Chaudhary Shambhunath Ga. Pa.-08, Kathauna Bazzar 9804708581
9842638876 /
SIRAHA Kusheshor Yadhav Bishnupur Ga. Pa.-01, Bishnupur
033-402011

SIRAHA Bijaya Kumar Shah Kalyanpur Na. Pa.-12, Belha 9844191668
SIRAHA Dip Narayan Sah Arnama Ga. Pa.- 03, Ramjanki Bazar 9862943630
Province 2
Rabinandan Kishor
SIRAHA Siraha Na. Na 19 9811754945
Yadav
BAIRENI Ram Bahadur Shrestha Belkotgadhi Na. Pa-7, Mahadevphat 9813320808
BARHABISE Nirmal Raut Barhabise Na. Pa.-08, Mansarobar 9818570630
BARHABISE Posta Bahadur Khadka Bhotekoshi Ga. Pa.-04, Chaku 9843167882
BARHABISE Hari Charan Paudyal Barhabise Na. Pa. -04, Sano Patali-Bahun Dada 9841956709
Padam Bahadur
BARHABISE Sagachowk Gadi Na. Pa.-09, Balephi 9849858588
Shrestha
BARHABISE Bhupendra Shrestha Tripurasundari Ga. Pa.-6, Tekanpur 9851210270
BARHABISE Amrit Kumar Karki Sunkoshi Ga. Pa.-5, Thumpakhar-Pati Danda 9741312309
Laxman Dhakal and 9849039204 /
CHABAHIL Shankharapur Na. Pa.-01, Chanpabot
Bharat Tiwari 9849958402
Province 3 Tokha Chandeswori Na. Pa-1, Radha Krishna Mandir
DHAPASI Ram Sharan Dulal 9841764869
chowk
9845148698 /
HETAUDA Dhurba Prasad Aryal Indrasarobar Ga. Pa.-2, Deurali
9855069653
HETAUDA Dinesh Dahal Makawanpurgadhi, Hetauda 9845458008
KURINTAR Rajan Shrestha Gandaki Ga. Pa.-01, Makaisingh 9846255378
MANTHALI Pushkar Karki Gokulganga Ga. Pa.-4, Betali 9843770243
NARAYANGHAT Narahari Ghimire Bharatpur Ma. Na. Pa.-25, Amrit Chowk 9855064217
SURYABINAYAK Gaurav Timalsena Chagunarayan Na. Pa.-07, Saraswatisthan 9843518498
TANDI Rajendra Shrestha Khairahani Na. Pa.-12, Kumroj 9865257502
THANKOT Rajan Kapali Thaha Na. Pa.-09, Chitlang 9860606815
BAGLUNG Usha Rani Sharma Baglung Na. Pa.-13, Paiyupatta 9847631150
BAGLUNG Mahendra Pun Kathekhola Ga.Pa.-7 9857621766
BAGLUNG Narayan Prasad Shrestha Baglung Na.Pa.-14, Hatiya 9857620526
BAGLUNG Hari Prasad Gautam Kathekhola Ga.Pa.-7 9857672100
BEGNAS Kashiran Miya Rupakot Ga.Pa-06, Rupakot 9805839010
9746701143 /
BENI Giri prasad Chantyal Dhawalagiri Ga. Pa.-7, Takam
Province 4 069-680160
BHORLETAR Sarfu Din Miya Kwholasothar Ga. Pa.-8, Salme 9846184731
BHOTEWODAR Gopal Bahadur Nepali Rainas Ga. Pa -05, Satbesi 9846192476
BHOTEWODAR Durga Prasad Parajuli Koshi Ga. Pa -06 9856042956
BURTIBANG Anil Kunwar Nishi Khola Ga. Pa.-02, Juggakhola 9857647610
BURTIBANG Shyam Gharti Magar Dhorpatan Na. Pa.-08, Bobang 9846823530
DAMAULI Babu Ram Puri Madhya Nepal Na. Pa.-03, Shotipasal 9856060892

DUMRE Upendra Babu Tiwari Bhanu Na. Pa.-10, Kalimatti 9814198739
KAWASOTI Shiva Hari Aryal Devachuli Na. Pa.-13, Pragatinagar-Daldale Bazaar 9847060223
KAWASOTI Subash Shrestha Kawasoti Na. Pa.-17, Gochada 9857087605
KAWASOTI Narayan Mahato Madhyabindu Na. Pa.-15, Harbastar 9815465315
KAWASOTI Jhuddha Bahadur Thapa Hupsekot Ga. Pa.-04, Jhyalbass 9847095314
Province 4 KAWASOTI Amit Bhandari Kawashoti Na. Pa.-04, Hasaura 9857040767
KAWASOTI Bhakta Raj Shrestha Madhyabindu Na. Pa.-03, Koluwa 9847434570
KUSHMA Chhatra Bahadur Chhetri Kushma Na. Pa.-02, Khurkot Bagaicha 9847612465
KUSHMA Santosh Kumar Gurung Modi Ga.Pa.-7, Ramja Thanti, Parbat 9846061258
Krishna Prasad
KUSHMISERA Baglung Na. Pa.-12, Amalachaur 9847629795
Chapagain
9857066825 /
ARGHAKHANCHI Pashupati Bhattarai Sandhikharka Na. Pa.-04, Wangla
9847059825
9857061370 /
ARGHAKHANCHI Bishnu Prasad Bhusal Chhatradev Ga. Pa.-2, Balkot
9847320476
ARGHAKHANCHI Lekhnath Pandey Bhumikasthan Na.Pa-10, Dhanchaur 9857061185
ARGHAKHANCHI Dhanishwar Pandey Chhatradev Ga. Pa.-6, Thulapokhara 9857063429
9804486343 /
BHAIRAHAWA Gajendra Bahadur Giri Bardaghat Na. Pa.-12, Jahada-Bhataulia
9811453508
9821970453 /
BHUMAHI Sima Kumari Chaudhary Ramgram Na. Pa.-17, Patkhauli
9867515755
BHUMAHI Thir Lal Neupane Sunawal Na.Pa.-11, Jargaha, Nawalparasi 9847010443
BUTWAL Kamal Chhetri Saina Maina-06, Ramapur Kalauni 9857050510
BUTWAL Aananda Panthi Tillottama Na. Pa.-15, Madhawaliya 9857060302
Buddhi Bahadur Khattri
BUTWAL, RAM 9847160433 /
Province 5 MANDIR LINE Cheetri and Kul Prasad Devdaha Na. Pa.-10, Charange
9857071278
Rijal
9857085739 /
GAUDAKOT Shankar Mahotra Chhatrakot Ga. Pa.-02, Veduwa
9847185739
9851181888 /
GAUDAKOT Padam Prasad Aryal Chhatrakot Ga. Pa.-03, Hardineta
9847181888
GAUDAKOT Narayan Prasad Aryal Gulmi Darbar Ga. Pa.-06, Charpala 9857061611
GAUDAKOT Uttam Pun Gulmi Darbar Ga. Pa.-01, Balithum 9857064507
JEETPUR Jagdish Gupta Kapilbastu Na. Pa.-09, Jagadishpur 9867596444
KOHALPUR Bir Bahadur Budha Baijanath Ga. Pa.-04, Baniyabhar 9858069223
KOHALPUR Rudra Mani Dhakal Raptisonari Ga. Pa.-1, Kusum 9815574511
LIWANG Bishwo Kumar Chand Paribartan Ga. Pa.-03, Iribang 9758503497
LIWANG Kamal Gharti Magar Maadi Ga. Pa.-02, Ghartigau 9866704999
9809531654 /
LIWANG Basant Roka Thawang Ga. Pa.-02, Thulogau
9857835329

9847557564 /
MAJUWA Kopila Poudel Gulmidarbar Ga. Pa.-02, Jubhung Hatiya
9867008636
9811461240 /
MAJUWA Suman Kharel Mushikhot Na. Pa-05, Aapchaur
9847008979
Sharma Kirana Tatha
NEPALGUNJ Badaiyatal Ga. Pa.-6, Mainapokhar 9858024007
Hardware Pasal
PURBAKHOLA Mehar Singh Thapa Purbakhola Ga. Pa. 04, Devinagar 9857060170
PURBAKHOLA Rita Rana Purbakhola Ga.Pa.-5, Birkot, Palpa 9857081178
SULICHAUR Kshitiz Pun Lungri Ga. Pa.-02, Sirpa, Rolpa 9857824711
SULICHAUR Top Bahadur Roka Sunilsmriti Ga. Pa.-07, Tebang 9844969624
9847169009 /
TAMGHAS Parishowar Dhakal Satyawati Ga. Pa.-1, Rudrabeni Bazaar
9857064009
Bhagirath
TAMGHAS Bahuuddeshiya Sahakari Chhatrakot Ga. Pa.-04, Digam 9867049333
Sanstha
Mirmire Bachat Tatha
Province 5 TAMGHAS Gulmidarbar Ga. Pa.-4, Birbase Bazzar 9747006626
Rin Sahakari
TAMGHAS Lumakanta Pandey Dhurkot Ga. Pa.-05, Bastu 9857064295
TAMGHAS Madhab Prasad Poudyal Isma Ga. Pa.-05, Ismna Maidan 9847106898
9857064053 /
TAMGHAS Ram Prasad Kandel Chhatrakot Ga. Pa.-5, Kharjyang Bazzar
071-621321
TAMGHAS Krishna Kunwar Chhetri Mala Rami Ga. Pa.-02, Dadakateri 9867042245
Amardeep Multiple P.A.
TAMGHAS Madane Ga. Pa.-6, Purkot 9848514243
Co- operative
TAMGHAS Harikala Paharai Resunga Na.Pa.-14, Paralmi, Gulmi 9812932990
TANSEN Bhabishwor Thapa Tansen Na. Pa.-13, Bougha Gumha 9847125113
TANSEN Chaturbhuj Dhakal Rambha Ga. Pa.-01, Hungi 9847067579
WAMI Sagar Sapkota Mushikot Na. Pa.-06, Bhumichindi 9801191453
WAMI Hari Chandra Khatri Badigad Ga. Pa.-7, Bhimgithe 9867196538
WAMI Basanta Adhikari Musikot Na. Pa.-03, Thulapokhara 9847676371
WAMI Drona Prasad Sapkota Musikot Na. Pa.-09, Padthok 9847676371
KALIKOT Santosh Mahatara Khadachakra Na. Pa.-02, Bharta-Lalighat 9851026463
KALIKOT Prem Bhadur Budha Tribeni Ga.Pa.-01 9851240400
RUKUM Jaya Bahadur K.C. Musikot Na. Pa-04, Solabang 9847837068
Province 6 RUKUM Jeevan Khadka Saanibheri Ga. Pa.-09, Simlli 9843565650
SURKHET Ramesh Sharma Veriganga Na. Pa.-11, Ramghat 9848243762
Shree Jana Jyoti Higher 9858023524 /
SURKHET Barahatal Ga. Pa.-5, Baddichaur Bazaar
Secondary School 9858051250
AJAYMERU Himalaya Shankar Ayer Ajayameru Ga. Pa.-02, Chamada 9843435721
Province 7
AJAYMERU Khadak Singh Khadka Ajayameru Ga. Pa.-06, Dewal 9865678020

BAITADI Surya Bahadur Bohara Dasharathchand Na. Pa.-2, Dehimandu 9848876097
BAITADI Harish Karki Dogdakedar Ga. Pa.-3, Khochlek Bazar 9848746820
BOGTAN Puran Bahadur Bam K. I. Singh Ga. Pa.-02, Tikhatar 9848617689
9749101482 /
DADELDHURA Narayan Datta Awasthi Nawa Durga Ga. Pa.-2, Badam
9809461578
Bhawana Kumari
DADELDHURA Ganyapdhura Ga. Pa.-02, Ganeshpur 9868566715
Adhikari
DADELDHURA Suresh Shahi Ganyapdhura Ga. Pa.-3, Sakayal 9749012002
DADELDHURA Bhoj Bahadur Malla Joryal Ga. Pa.-01, Gaira 9848800068
DHANGADI Thala Ram Rijal Dhangadhi Upa. Ma. Na. Pa.-18, Aadarsa Chowk 9804655600
DHANGADI Nabin Bahadur Singh Godawari Na. Pa.-12, Olani-Gaudi 9868542513
9864756475 /
DOGADAKEDAR Hem Raj Bhatta Dogdakedar Ga. Pa.-04, Basali
9848770678
DOGADAKEDAR Karan Singh Bista Dogdakedar Ga. Pa.-02, Kafalkot Badiya 9848835245
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 Anup Kumar Rawat Janaki Na. Pa.-04, Munuwa
9804644055
LAMKI Hira Devi Jaishi Mohanyal Ga.Pa.-6, Solta 9758002554
LAMKI Megh Raj Sapkota Bardagoriya Ga. Pa.-04, Mudha Bazar 9865667071
9801387490 /
MAHENDRANAGAR Bharat Mahata Krishnapur Na. Pa.-02, Baani
9801387099
Ramesh Bahadur 9848850133 /
MAHENDRANAGAR Bhimdatta Na. Pa.-9, Bramhadev
Khadka 9848705696
Saraswati Kumari Bista
MAHENDRANAGAR Mahakali Na. Pa.-02, Chandani Bazaar 9801380618
Pandey
PATAN EXTENSION
Jog Raj Ojha Melauli Na. Pa.-07, Kanda Bazzar 9848707370
COUNTER
PATAN EXTENSION
Prakash Joshi Melauli Na. Pa.-2, Salena Patauna 9848826667
COUNTER
PURBICHAUKI Deepak Bahadur Bogati Purbichauki Ga. Pa.-05, Chaukhutte 9860178332
Mahesh Bahadur
PURBICHAUKI Purbichauki Ga. Pa.-01, Shantinagar 9865643054
Khadka
EXTENSION COUNTER
S.No. EXTENSION COUNTER ADDRESS
DISTRICT ADMINISTRATION OFFICE, District Administration Office, Lalitpur
1
LALITPUR* Lalitpur Metropolitan City - 5, Manbhawan
Bhanu Municipality-2, Fusretar, Tanahun
2 FUSRETAR EXTENSION COUNTER
Mobile No: 9841936313
Madi Rural Municipality-2, Ghartigaun, Rolpa
3 GHARTIGAUN EXTENSION COUNTER
Mobile No: 9851137084
Parshuram Municipality,
4 JOGBUDA EXTENSION COUNTER Ward no. 12, Jogbuda, Dadeldhura
Phone No. 9848413256/9843036993
Siddeshwor VDC 09, Khodpe, Baitadi
5 KHODPE EXTENSION COUNTER
Phone No: 095-410020/410021
Pa Ni Ka Extension Counter,
6 PA NI KA EXTENSION COUNTER
Kirtipur Municipality, Balkhu, Kathmandu
PASHUPATINAGAR EXTENSION Address : Suryodaya-2, Ilam
7
COUNTER Phone no. : 027-550026
Patan Municipality-13,Patan,Baitadi
8 PATAN EXTENSION COUNTER
Phone No:095-400066/67
SHANKAR DEV CAMPUS EXTENSION Kathmandu Metropolitan City, Putalisadak, Kathmandu

9
COUNTER Shankar Dev Campus Extension Counter
Tax Service Office, Galchi

10 TAX SERVICE OFFICE, GALCHI*
Galchi Rural Municipality - 6, Dhading
11 DEPARTMENT OF IMMIGRATION Anamnagar, Kathmandu
Office of Cottage & Small Industries

12 DEPARTMENT OF INDUSTRY
Tripureshwor, Kathmandu
DEPARTMENT OF TRANSPORT
13 Birgunj
MANAGEMENT
14 Itahari
MANAGEMENT
15 Pokhara
MANAGEMENT
16 MANAGEMENT, MOTORCYCLE Satungal, Kathmandu
DIVISION
17 INLAND REVENUE OFFICE Kawasoti
18 INLAND REVENUE OFFICE Dharan

S.No. EXTENSION COUNTER ADDRESS
19 INLAND REVENUE OFFICE Lahan
20 INLAND REVENUE OFFICE Janakpur
21 INLAND REVENUE OFFICE Tulsipur, Dang
22 INLAND REVENUE OFFICE Narayanghat, Chitwan
METROPLITIAN TRAFFIC POLICE

23 Bagghikhana, Kathmandu
DIVISION
MINISTRY OF FOREIGN AFFAIRS Passport Division,
24
(MOFA) Kantipath, Kathmandu
MINISTRY OF FOREIGN AFFAIRS Department of Consular Services,
25
(MOFA) Tripureshwor, Kathmandu
26 INLAND REVENUE OFFICE Mahendranagar
27 LAND REVENUE OFFICE* Tamghas
28 Public Service Commission *
CDS and Clearing Limited

29 CDS & Clearing Counter Share Markets Commercial complex
Putalisadak, Kathmandu
*Functions both as extension counter and revenue collection office
REPRESENTATIVE OFFICE
S.NO. REPRESENTATIVE OFFICE ADDRESS
Suite 12, Level 6, 321 Pitt Street
Sydney, NSW 2000, Australia
1 Sydney- Australia
Tel: +612 8540 4785
e-Mail: giblsydney@gibl.com.np
201, Arunachal Building,

19 Barakhamba Road, New Delhi-110001, India
2 New Delhi, India Tel: +91 11 43549190
e-Mail: giblindia@gibl.com.np
roindia@gibl.com.np
Unit 19B Union Street, Aldershot, Hampshire

GU11 1EP
3 United Kingdom
Tel: +44 1252 208773
e-Mail: gibluk@gibl.com.np

Annual Report 2074 2075 (In English)

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Annual Report 2074 2075 (In English)

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Table of Contents

NET INTEREST INCOME TOTAL OPERATING INCOME

net profit loans & advances

deposit mobilization GOVERNMENT SECURITIES

BRANCHES AND ATMS DIVIDEND PAYOUTS (STOCK & CASH)

MARKET PRICE PER SHARE / RETURN ON SHAREHOLDER'S FUND

SHAREHOLDER'S FUNDS TOTAL ASSETS

BANK'S MARKET CAPITALIZATION

2014 2015 2016 2017 2018

Margin Lending CALL DEPOSIT

Others SAVING DEPOSIT

Real Estate Loan

VISION & MISSION

RESPECT AND HUMILITY

GIBL has been promoted by a group of prominent indigenous entrepreneurs

Mr. Chandra Prasad Dhakal

Message from Chairman

In the digital age of today, the banking industry has been

We are highly committed towards our role as a as a responsible

2. REVIEW OF THE BANK’S OPERATIONS DURING F/Y 2017-18

(A) FINANCIAL POSITION

Financial Position of the Bank in Comparison to last year is as follows:

(B) OPERATING RESULT

Amount in NRs. Million

Mahesh Sharma Dhakal

Surendra Raj Regmi Aarati Rajya Laxmi Rana

Buddhi akela RAJA ARYAL BHAWANI DHAKAL

ANIL JOSHI DEEP CHANDRA REGMI GANESH AWASTHI RANJAN THAPA

Mahesh Sharma Dhakal

A strong relationship requires strong partners.

Performance of the Bank We at Global IME continue to focus strategically on

Board Risk Management Board Human Resources and

Management Level Risk

Credit Risk Operations Risk Market Risk

Operation Reconciliation Information

People Process System External

Treasury Market Liquidity Interest Rate

Particulars Amount 12.

1. Report of Board of Directors: to increasing challenges in the operational risk

Bank has a culture of open and relevant communication BOARD COMMITTEES

overseeing the Bank’s financial reporting policies RISK MANAGEMENT COMMITTEE

To assist Board of Directors to prepare ANTI-MONEY LAUNDERING AND COUNTER

CORPORATE SOCIAL RESPONSIBILITY (CSR)

As a public entity of the country for the past twelve

EDUCATION & SPORTS Scholarship to economically deprived

We are assisting in protecting our community in

Contribution to Prime Minister Disaster

Contribution of CCTV Cameras to

Contribution in protecting our culture by

Bank’s product and services

The lending product portfolio includes CORRESPONDENT NETWORK

PRODUCT AND SERVICES

GLOBAL GOLD SAVING ACCOUNT Free Cheque Book

FEATURES: waived for first year

GLOBAL LADDER SAVINGS ACCOUNT FEATURES:

GLOBAL CURRENT DEPOSIT PURPOSE

GLOBAL CONVERTIBLE FOREIGN GLOBAL HIRE PURCHASE LOAN

GLOBAL AUTO LOAN FEATURES AND BENEFITS:

_ ________ ………………

_ ________ ………………

_ ________ ………………

_ ________ ………………