Annual Report GBL

The Bank for All
An n u al Report
2010/11
Contents
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Bank Overview Vision & Mission Core Values Board of Directors Message from Chairman Message from CEO Management Team Department Heads & Senior Relationship Managers Board of Directors Report Product & Services Branch Managers Annexure A Corporate Social Responsibility New Initiatives Auditors Report Financial Statements Risk Management Functions Branch and ATM Network Contacts of our Network 1 2 3 4 7 9 10 12 14 24 36 38 41 42 43 44 88 92 94
Bank Overview
Global Bank Limited is a national level commercial bank promoted by highly prominent business personalities/ groups and reputed individuals of the country who have excelled in their field of business/profession with very good integrity and social standings. Under the guidance of reputed Board of Directors and professional and dynamic management team having extensive experience with proven track-record in the banking industry, Global Bank is committed to offer a wide range of banking products and services tailored with the state-of-the-art technology to meet the unique requirements of all the customer/clients and thereby delight them by exceeding their expectations. With a shared vision of The Bank for All, Global Bank Team is committed to providing the quality products and services to its valued customers with utmost courtesy and care. We at Global Bank believe that delivery of quality products/services designed/ customized to best suit the customer need through continuous research/ development and innovation is the foundation to build-up the trust and enhance the level of confidence between the customer and the bank. Hence, Global Bank Team pledges its commitment to always endeavor for delivery of innovative products/ services to all the customers to best suit their requirements thereby ensuring the optimum benefit and value addition to the customer as well as to all other stake holders.
Capital Structure Authorized Capital: Rs. 3,000 Million Paid-up Capital : Rs. 1,601.5 Million
Annual Report 2010/11
Vision Mission
Vision
The Bank For All
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.
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Integrity
Core Values
and Business Ethics:
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.
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.
Good Governance: We are committed to ensure the transparency and internal control systems through clear-cut policy guidelines/ manuals, procedures, central banks rules regulations for our own satisfaction and to satisfy the regulators thereby ensuring the Corporate Good Governance. Loyalty: We maintain the highest level 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.
Professionalism: Everything we do, we do

with the highest standards of professionalism. Research and Development with focus on
Chairman: Chandra Prasad Dhakal
Board of Directors
Mr. Sandeep Agrawal Mr. Surendra Nath Panta Mr. Suraj Kumar Shrestha Directors Mr. Ashwini Kumar Acharya Mr. Pushpa Man Shrestha Mr. Chandi Shrestha
Board Members at Board Meeting

From Left
Bishnu Banskota Company Secretary
Ratna Raj Bajracharya

Chief Executive Ofcer
Pushpa Man Shrestha

Director
Ashwini Kumar Acharya

Director
Chandi Shrestha
Director
Chandra Prasad Dhakal

Chairman
Sandeep Agrawal
Director
Suraj Kumar Shrestha

Director
Surendra Nath Panta

Director
Janak Sharma Poudyal

General Manager
I rmly believe that Global Bank Limited has the right mindset, the right tools, the right people, the nancial strength and the organisational structure best able to deliver and serve shareholders to their full contentment...
Message From Chairman

Corporate Social Responsibility Our employees also support a wide range of community programmes, volunteering their time and energy to local causes and initiatives. I am particularly proud of providing scholarships up to 10th standard to the talented and well deserving children of the martyrs. In addition, we have been actively involved and focused on deprived sector lending to help the poor and rule out the poverty in Nepal. New Initiatives The Bank will endeavour to engage in activities that offer an appropriate risk and return for the investment made, while ensuring security for all stakeholders. We will set new standards in regulatory compliance, performance, professionalism and innovation. We will continue and strive to transform our bank into a world class financial services provider, and endeavour to meet the expectations of Stakeholders in the coming year and beyond. In this journey of scaling the new heights, I solicit your continued cooperation and patronage. Conclusion I firmly believe that Global Bank Limited has the right mindset, the right tools, the right people, the financial strength and the organisational structure best able to deliver and serve shareholders to their full contentment. It has the values, vision and mission that will sail us through a successful journey and it is a privilege to have the opportunity to serve as the Chairman of Global Bank. Hence, with great pleasure, I would like to extend my thanks and appreciation to the Board of Directors for their support, advice and contribution towards another successful year. Also, my honest and sincere gratitude go out to our proactive management and all 386 employees for their continued hard work and commitment that underlie strength of our business. It is through our employees that Global Banks distinctive character stands out for our customers and it is they who ensure that not all banks are the same. Well done!
Dear Stakeholders,
It gives me immense pleasure to present the Financial Statement and Annual Report of Global Bank Limited for the year ended on 16th July, 2011. Despite the year under review was characterized by tumultuous global economy and political instability, the Bank continued to deliver a strong core performance and carried out strategies towards creating a customer-centric bank. It continued to register significant improvements both with regards to its systems and operations as well as its financial results. We have achieved operating profit of Rs.467 million. Notwithstanding economic downturn, the bank saw a significant net profit of Rs.225 million as compared to the previous year. Deposit has increased to Rs.15,067 million and Loans and Advances increased to Rs. 12,779 million. Global Bank Limited has, therefore, carved its name well in the market not only because of innovativeness but also as a result of our important attributes-Professionalism, veteran management; client/customer oriented and in being in the forefront for product development. Integrity, teamwork and business ethics are some of our core values, and they define the way we conduct our business. Shareholders rebuilding confidence and trust I understand how important it is for our shareholders that Global Bank builds sustainable long-term value that is reflected through the share price. I fully acknowledge the significance of maintaining a disciplined approach to balance sheet management and our commitment to returning capital for your financing and investment. The best way to do so, we believe, is to combine clear performance targets with transparent disclosure, consistency and good governance practice. Governance While the board of any company must ensure that a robust governance structure is in place, we are equally committed to fostering a culture throughout the organization that values exemplary ethical standards, personal and corporate identity, teamwork, taking personal responsibility and respect for others.
Chandra Prasad Dhakal Chairman

Our focus and consideration is to drive the organization to create measurable long-term value for its stakeholders, which would be sustainable in long run...
Message From CEO

governance, regulatory compliance and a system driven and performance driven culture. We are committed to incorporating these commitments into our strategy, culture and day-to-day operations. We continue to strive to provide sustainable and balanced returns to our shareholders. In order to meet our long-term objective, we will continue to remain tactful; be more observant in managing issues & shall continue to strengthen our fundamentals & competencies. We are dedicated to focus on advancing our technology to meet the customers needs and wants, making our bank the customers first priority, which will significantly increase our strength and possibility to reach our ambitions. Our focus and consideration is to drive the organization to create measurable long-term value for its stakeholders, which would be sustainable in long run. We are convinced that a strategy that prepares us today to meet the demands of the future on environmental performance, profitability and social responsibility, is a winning strategy. I would like to express my gratitude and appreciation to our energetic and hardworking staff and efficient management team. They have provided better performance throughout the years that has led the growth and reputation of our bank. I also would like to express my gratitude to BOD for their support and valuable contribution. Finally, I would like to thank the Nepal Rastra Bank, the Ministry of Finance, all other concerned government agencies, regulators and valued customers for providing us their full support in our endeavors.
Dear Stakeholders,
Financial year 2010-11 was a remarkable year for us as we were able to report an encouraging financial result and better return to investors for Global Bank. Despite the very challenging market conditions, our net profit marked the growth of 208%. Our focused approach for the managed growth in terms of revenue maximization, cost minimization and better risk management helped us for such a marvelous achievement. We could settle some problematic accounts to contribute toward better results. With the changed prospective, we are focusing toward portfolio diversification with increased customer base. For the efficient service delivery, we are focused on techno-based services and proud to inform that apart from SMS banking, internet banking, VISA Debit and Credit card service, utility bill payment services and ABBS banking facilities and real time transaction services is also delivered. This array of products has placed Global Bank among the top service provider not only in the peer group, but in the industry as a whole. Bank has achieved another milestone after getting permission to collect Government Revenue. To cater widespread customer base, we have established our presence in 31 locations as branch, 1 location to collect government revenue and 36 locations for ATM services. We have identified the information system as a major tool to measure our performance and have taken steps to strengthen the Information Technology and Management Information System, which has helped us to monitor business and meet regulatory requirements of reporting. Bank management has been focusing on disciplined management, maximum customer base, diversified portfolio, good corporate
Ratna Raj Bajracharya Chief Executive Officer
Management Team
From Left
Manoj Gyawali Head - Finance & Planning Prabin Raj Pokhrel Chief Operating Ofcer
Suresh Raj Maharjan Head - Marketing

Hari Prasad Acharya Branch Manager-New Road Branch
Janak Sharma Poudyal

General Manager Surendra Raj Regmi Head - Credit Control
Ratna Raj Bajracharya Chief Executive Ofcer Bhawani Dhakal Head - Human Resources
Arati Rajyalaxmi Rana

Branch Manager-Kantipath Branch
Department Heads & Senior Relationship Managers
From Left
Shanta Shiwakoti Manager-Marketing Buddhi Akela Manager-Credit Raja Aryal Manager-Credit Ranjan Thapa Head-Treasury Anuj Acharya Incharge-Finance & Planning Sushovan Devkota Senior Relationship Manager Manohar K.C. Manager-Operation Deep Regmi Manager-Central Trade Operation Rupendra Wagle Senior Relationship Manager
Sushil Shrestha Operation Incharge Kantipath Branch
Manindra Raj Joshi Manager-IT
Dil Bahadur Kafle Head-General Service Department
Krishna P. Lamichhane Head-Internal Audit
Ganesh Awasthi Senior Relationship Manager
Board of Directors Report

production was due mainly to the favorable weather condition and expansion in the area of maize cultivation. The production of these two crops had declined by 11.0 percent and 3.9 percent respectively in the previous year. In the review period, the production of vegetables, fruits, meat and milk were estimated to grow by 6.7 percent, 2.8 percent, 10.6 percent and 4.0 percent respectively. In 2010/11, the ratio of total consumption to GDP increased marginally to 93.3 percent from 92.6 percent last year. Consequently, the gross domestic saving remained at only 6.7 percent of GDP in the review year. Similarly, the ratio of gross investment to GDP stood at 30.2 percent in the review year compared to 35.1 percent in the preceding year. B) Inflation The annual average consumer price inflation remained constant at 9.6 percent in 2010/11 compared to an increase of 9.6 percent in 2009/10. Despite a substantial rise of 14.7 percent in the prices of food and beverages group, the annual average consumer price inflation moderate on account of a low increment by 5.4 percent in the prices of non-food and services group. The index of food and beverages and non-food and services had increased by 15.1 percent and 4.9 percent respectively in 2009/10. In the review year, yearly average price index of vegetables, the item under food and beverages group, increased sharply by 35.0 percent; it had increased by 20.5 percent in the previous year. Similarly, the annual average price indices of spices, sugar and sweets and fruits went up by 23.2 percent, 19.5 percent and 19.4 percent respectively compared to their respective increments of 27.4 percent, 45.3 percent and 20.5 percent in the previous year.
Respected Shareholders,
On behalf of the Board of Directors and myself, I welcome you all to the Fifth Annual General Meeting of Global Bank Ltd. We are pleased to inform the completion of fifth year of business operation. Because of the support and trust of shareholders, customers, stakeholders and regulators of the bank we are growing in the market with new banking technology and products for the past five years. By the end of fiscal year 2010-11 we have provided quality banking service to our valued customers through our 28 branches located inside and outside valley. I would like to present, in brief, the banks overall economic and social situation, deposit mobilization and lending position of commercial banks and the progress achieved by the bank.
1. Countrys Economic condition

According to the recent data published by Nepal Rastra Bank for the fiscal year 2010-11 the details of economic growth are summarized here under A) Gross Domestic Product (GDP) According to the preliminary estimates of the Central Bureau of Statistics (CBS) based on the first three to seven months data of 2010/2011, the real GDP at basic price grew at 3.47 percent compared to 3.97 percent in the previous year. The real GDP at producers price was estimated to grow at 3.48 percent in the review year compared to 4.55 percent last year. The agriculture and non-agriculture sectors were estimated to grow by 4.1 percent and 3.1 percent respectively in 2010/11. These sectors had grown by 1.3 percent and 5.4 percent respectively last year. In 2010/11, the production of major crops like paddy and maize were estimated to grow by 10.8 percent and 11.4 percent respectively. Such a higher
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On behalf of the Board of Directors and myself, I welcome you all to the Fifth Annual General Meeting of Global Bank Ltd.
The annual price index of restaurant and hotel grew by 15.5 percent compared to a 20.3 percent rise in the previous year. Likewise, the annual price indices of milk products and egg, cereals grains and their products and tobacco products increased by 14.6 percent, 13.9 percent and 13.5 percent respectively compared to their respective increases of 11.9 percent, 10.1 percent and 12.5 percent in the previous year. In 2010/11, the annual average price index of legume varieties declined by 7.6 percent as against a rise of 26.0 percent in the previous year. C) Foreign Trade and Balance of Payment In 2010/11, the growth rate of exports outpaced the growth of imports for the first time in ten years. While exports rebounded after a slump in the previous year, the growth rate of imports declined markedly, resulting in a significant fall in the growth of trade deficit. Nevertheless, trade concentration with India reached its peak, constituting about two thirds of Nepals total trade. Export trade, which had declined by 10.2 percent in the previous year, recorded a growth of 6.1 percent to Rs. 64.56 billion in the review year. Exports had amounted to Rs. 60.82 billion in the previous year. On a monthly basis, the merchandise imports declined by 2.9 percent in June/July of the current fiscal year in comparison to the value of the previous month.Due to the improvement in the export and reduction in the growth of import, total trade deficit went up only by 5.4 percent to Rs. 330.34 billion in the review year. Trade deficit had expanded by 44.6 percent in the last year. The overall BOP which had remained in deficit until the ten months of 2010/11 ended with a surplus of Rs. 2.93 billion in contrast to a deficit of Rs. 3.63 billion in the previous year. The BOP registered the highest deficit of Rs. 14.79 billion in the nine months of the review year. The
improvement in the BOP was attributed to the significant moderation in the current account deficit coupled with satisfactory increase in the government capital transfers and external loan. The current account deficit shrank to Rs. 11.91 billion from a deficit of Rs. 28.14 billion a year ago. The deceleration in the growth of trade deficit resulting from higher growth in exports than imports coupled with improvement in the service account led to significant contraction in the current account deficit. In the review year, the current account deficit to GDP ratio improved to 0.9 percent from 2.4 percent a year ago. D) Government of Nepal Revenue Mobilization In 2010/11, revenue mobilization of the GON increased by 11.6 percent to Rs.200.79 billion, which is 92.7 percent of annual budget estimate of Rs. 216.64 billion. The revenue had risen by 25.4 percent to Rs. 179.95 billion in 2009/10. Consequently, the revenue to GDP ratio remained at 14.9 percent in 2010/11 as against 15.4 percent in 2009/10. The impact of the delay in the announcement of the government budget, revenue mobilization based on previous years Finance Act during the first four months and slow growth rate of the capital expenditure were responsible for such a low growth rate of revenue mobilization. Likewise, decline in the growth rate of import also affected the growth rate of revenue of the government during the review year. E) Deposit Mobilization and Credit Flow of Commercial Banks The imbalance between deposit mobilization and lending by commercial banks also continued in 2010/11. The deposit mobilization of commercial banks increased by Rs. 59.62 billion while the loan and advances increased by Rs. 79.80 billion in the review year. The deposit mobilization and
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loan and advances had increased by Rs. 69.93 billion and Rs. 76.71 billion respectively in the previous year. Credit to private sector increased by Rs. 57.94 billion during the review year compared to Rs. 65.61 billion in the previous year. Of the total bank credit to private sector, the credit to production sector increased by Rs. 20.13 billion during the review year compared to Rs. 6.84 billion in the previous year. Similarly, banks credit to wholesale and retail trade, and construction sectors also increased. F) Liquidity Situation of commercial banks The NRB injected net liquidity of Rs. 71.39 billion through secondary market operation in 2010/11. Liquidity of Rs. 21.0 billion was mopped up through outright sale auction of Rs. 2.0 billion and reverse repo auction of Rs. 19.0 billion in the review year. On the other hand, liquidity of Rs. 92.39 billion was injected through repo auction in the review year. Liquidity of Rs. 8.44 billion was mopped up through outright sale auction and reverse repo auction while Rs. 135.06 billion was injected through outright purchase auction and repo auction in the previous year.
The NRB injected net liquidity of Rs. 174.30 billion through the purchase of USD 2.41 billion from foreign exchange market (commercial banks) in 2010/11. A net liquidity of Rs. 118.66 billion was injected through the purchase of USD 1.60 billion from foreign exchange market in the previous year. The NRB purchased Indian currency equivalent to Rs. 198.15 billion through the sale of USD 2.74 billion in the Indian money market during the review year. INR equivalent to Rs. 163.35 billion was purchased through the sale of USD 2.19 billion in the previous year. Such a higher amount of INR purchase in the review year has mainly attributed to the widening trade deficit with India on account of sharp increase in the import of petroleum products.
2. Review of the banks Operation during F.Y 2010/2011

A) Financial Position Banks current Financial Position as compared to the previous year is as follows:
Amount In Lakhs
Description
Paid Up Capital Capital fund Total Deposit Total Loan CD ratio(as per NRB directives) Liquidity Ratio Non Performing Loan
As on Ashad End 2068

15,000 11.09% 150,665 127,792 78.02% 27.23% 2.52%
Increment Amount
266
2067
14,734 10.90 % 150,316 121,636 75.59% 30.00% 0.85%
Percentage
1.81 0.19
349 6,155
0.23 5.06 2.43 (2.77) 1.67
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Last year, all the right shares issued were sold. As a result, the capital has increased to Rs one billion five hundred million. Bank has received Rs.15, 050,422 as share premium after auction of the unsold right shares of 148,367 out of which 8518 shares were of promoters and the remaining 139,849 shares were of general public. Yet another year and the bank has been able to maintain its capital fund in a sound position while conducting its various commercial activities. During this year, there was no significant increase in the in the deposit in the banking sector. As a result, there was no increment in the deposit of our bank as well. In addition, no significant growth in
loan disbursement has been observed due to this very reason. Also, looking at the liquidity problem bank has not gone aggressively in the loan disbursement. Consequently, the bank has been able to reduce its CD ratio to 80% as on Ashad end itself while as per NRB Directives it is to be reduced to 80% by Poush end 2068. Last year there was a problem in recovering few loans resulting in the increment of NPL. However, the management is continuously going ahead with the recovery of those loans. B) Operating Result: The banks operating profit before provision is 46.66 crores whilst net profit after tax is 22.50 crores. Banks interest income has increased approximately by 50 crores and interest
Banks brief details on operating profit is highlighted here under:

Amount In Lakhs
Particulars
Interest Income Interest Expenses Net Interest Income Other Income Total Operating Income Total Operating Expense Operating Profit before Provision for Possible Loss Provision for Possible Loss Provision for Possible Loss return back Profit from Regular Activities Profit/Loss from Extraordinary Activities Net Profit after Considering all Activities Bonus and Tax Net Profit/Loss
As on Ashad End 2068

19,636 12,881 6,755 1,835 8,590 3,924 4,666 (2,529)
Increment Amount
4,986 3,261 1,725 180 1,906 828 1,078 (579)
2067
14,650 9,620 5,030 1,655 6,684 3,096 3,588 (1,951)
Percentage
34 34 34 11 29 40 30 30
1,661 3,798 (935)
1,642 -
1,661 2,156 -
131 -
2,863 613 2,250
1,642 912 730
1,221 (299) 1,520
74 32 208
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expense by 33 crores in this fiscal year. Net Interest Income (NII) of the bank is 67.56 crores showing 34% increment and operating profit before provision is 46.66 crores which has increased by 30% from last year. Although there has been a significant increment in operating profit before provision, due to additional loan loss provision of 25.29 crores; net profit however is 22.50 crores which is 208% increment as compare with previous year. While the bank faces major liquidity crunch and other various financial sector problems, bank has achieved a remarkable achievement. We would like to assure that in the upcoming years, bank will continuously strive to achieve the same success. c) Progress in the first two months of the current Fiscal year: In the first two months of the current Fiscal Year, banks deposit has increased by Rs.70 crores; hence, the total deposit has reached Rs.15.77 billion. After the year end, improvement in the deposit in financial sector resulted in the increment of the deposit of our bank. As a result of this, the loan portfolio has also increased. This has made a favorable improvement in the income as well. The cost of fund is increasing while the interest rate on loan is not increasing proportionately due to a strong competition, resulting in lower NII and non funded income and the management is completely aware of this situation.
5 lakhs to clients in an easy and convenient way. Hence, the bank has been able to attract the customers as expected. Also, considering the fact of accident, death and disability of the customer, to recover the loan amount, the bank has an insurance policy with an insurance company which is a very distinct feature of this product. As per the directives of NRB, the banks should at least have 20% of the total loan portfolio in productive sector lending. Our bank has, therefore, started working on it already to meet the two years deadline. Furthermore, we have already proceeded for insurance of deposit as per the NRB Directives. This will help to gain additional trust from our customers. In view of the fact that the remittance service of our bank has a lot of potential, Global Bank is taking a special interest on it. Taking into account the flow of Nepalese to South Korea, our bank has already made an agreement with Kookmin Bank for remittance purpose. Also bearing in mind the number of people who work and send money from our neighboring country India, Global Bank has already started working with a national level bank there for remittance purpose and is hopeful it will get sorted out shortly and as planned. Overall taking into account the scope in remittance sector, Global Bank is trying to get agreements with other banks in foreign countries. Going forward as per the slogan of our bank The Bank For All the involved manpower are made more capable by
3. Future Planning:
The bank is targeting small businesses all over the country. This has brought a scheme of small business loan where it provides loan from Rs 50 thousand to Rs
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focusing and making priority on the following areas: Of the deprived sector, Global Bank is focusing more on the small farmers. We are planning on additional lending through small micro finances in order to contribute significantly in this sector. Targeting banks Saving Deposit and Non Interest Bearing Deposit by execution of required planning and Marketing Continuous endeavor towards quality consumer, increase in business loan and share of Import Export Business. Considering the increment in Credit and Operational Risk, focus is on improvement of Internal system and intense training of personnel Initiation of mobile banking in selected places, addition of internet banking and card related services with a view to increase customer services. Hence the bank aims to attain remarkable achievement in business and income from the above stated programs.
The banks success solely goes to the various customers of our bank and will try to improve its services all the more hence forward. Getting a lot of cooperation from our clients, our staffs have even started providing door to door service. We are strictly following the guidelines of Know your customer (KYC) and Anti-Money Laundering (AML). Bearing all these things in mind, the bank has appointed a senior level staff as Head Compliance and has appointed one compliance officer at every branch and department.
5. Branch Network:
Ranging from Far-Eastern Dhulabari to Far Western Dadeldhura, the bank has 28 branches at present. Considering the need and demand of banking service in all the various sectors and region, we have a plan to open 6 new branches in the coming year and amongst these, I am delighted to share with all of you that we have got the approval from NRB to open the branch at Surkhet, Baitadi and Dillibazar. Furthermore, apart from doing our feasibility study to open new branches at appropriate and prime locations, we are also doing our study in improving and providing mobile banking and extension counter facility accessible in order to further enhance customer relationship. Regarding ATMs, we have 35 ATMs running at the moment. Along with the new branch openings, we are planning to open new ATMs at prime and appropriate locations to make it convenient for the customers.
4. Customer Relation:
There has been a continuous increment in the number of customers of the bank. As at Ashad end, the total number of customers reached 98,496. At present, the number has increased to 104,261. There has been a significant increment in the number of saving accounts as well. Therefore, the saving deposits have also increased and it looks very promising. The bank, being customer oriented, has always moved ahead by keeping in mind the customer satisfaction. Being able to deliver as per customers need on deposit and savings, our bank is being recognized as the customers bank.
6. Technology:
Keeping in mind that technology is very essential and one of the core factors in
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providing quality banking services, our bank has started focusing in enhancing technological products. Providing technology friendly products has been the main focus of the bank. Till date, we have been providing various facilities such as SMS banking, internet banking, telephone bill payment, e-ticketing, mobile recharge, and mobile utility bill payments to our valued customers. Likewise, we have already started issuing VISA credit card (National and International) which we have noticed that the customers take a special interest on. We are proud to be the first bank that provides SMS alert to customers every time they use their credit card. In addition, we have become the second bank to have a DRS (Disaster Recovery Site) outside Kathmandu Valley in Bhairahawa for protection of the data.
quality service to the customers. Hence, the bank takes initiatives to further develop the employees caliber by creating an appropriate and sound environment to provide necessary trainings at national and international level where they can be cultivated in different areas such as capability, loyalty, teamwork, creativity etc. Trainings will continuously be held to uphold the quality of human resources in our bank. Along with the banks focus on increasing the Global banking network, the employees have also increased and the bank looks forward to employ and work with high caliber staffs in the future.
8. Contribution to National Economy:

Bank, as a financial mediatory, is playing a vital role for development of industrial sector, providing employment and making contribution to national revenue in the form of income tax and other taxes. In the FY 2010/11, the bank has made payment of Rs.57.3 million as corporate tax.
7. Human Resource:
Compared to last year where our bank had 376 staffs, we have reached 386 staffs at present. Global Bank Ltd. is what it is now due to good coordination and effort of bank management and employees. Bank believes that, for the expansion of branch network and to meet the objectives laid by the management, human resources play a vital role. It is because of the staffs hard work, dedication, team work, commitment and enthusiasm that contribute towards the success of the bank. On the banks part, we do recognize our employees toil by rewarding them from time to time to encourage them and make them feel acknowledged. We believe that content employees give good output and
9. Corporate Social Responsibility:

Not only is the bank profit oriented, it is also fulfilling its corporate social responsibility. The bank has started providing scholarship to martyrs children up to class ten. In addition, the bank has been providing loan on deprived sectors in order to reduce poverty in the country. The bank is in process of implementing Global Small Loan and Global Small Farmer Loan that is further going to help in deprived sector. Henceforth, the bank will, all the more, be seen being engaged in such activities.
10. Corporate governance:

The Board of Directors and the Management is always committed for good corporate governance. Bank has always complied with good corporate
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governance guidelines. Also, the Board of Directors and Employees have complied with the Code of Conduct outlined by Nepal Rastra Bank. The Audit Committee of the bank monitors all the activities and ensures the bank complies with directives of Nepal Rastra Bank. In addition, the committee ensures the adequacy of procedures and processes of the bank. On the whole, bank is always concerned with development of corporate governance through transparent operations.
making effort to recover this loan at earliest possible. It is obvious that if these loans are recovered till the date of annual general meeting by auction sale of collateral, there will be no obstacle to distribute the proposed dividend. In case this process does not complete, only after 100% loss provision on these loans proposed cash dividend can be distributed. In that case, bank will do accordingly to distribute the dividend. After the proposed bonus share issuance, Banks paid up capital will increasae by 100 million and reach 1.6 billion from which bank will be able to meet the minimum share capital as directed by Nepal Rastra Bank. It is recommended to approve the proposed cash dividend and bonus share proposed by Board of Director.
11. Amount Recommended for Dividend Distribution:

Bank has recommended for approval of 5.35% Cash Dividend and 6.67% Bonus Share for the shareholders from the profit of fiscal year 2010/11, Share Premium and Retained Earnings. Accordingly financial statements have been submitted to Nepal Rastra Bank for approval to distribute Rs. 80,263,158.00 as cash dividend and Rs. 100 Million as bonus share out of retained earnings and profit of current fiscal year. NRB has instructed the bank to distribute the cash dividend only after 100% provision for outstanding loan of abscond loanee facing action under banking fraud. Immediately after the instruction, the Bank has published the auction sale notice of the collateral kept on loan of M/S. Star Holding Pvt. Ltd. Auction process has not completed till the date of this Annual Report preparation. Similarly the deadline has not expired yet for the loan redemption (settlement) notice given to another loanee, Rajendra Das Shrestha. The actual scenario will be finalized till the date of annual general meeting and the same will be informed about auction sale of these both loanee. Bank has been
12. Financial Statements and Audit

Balance sheet as of 2068 Ashad end, Profit & Loss account of 2067-068, Cash Flow statement, related annexures and auditors report have been attached herewith as parts of this report. Other statements as company act, 2063 have been presented in annex A.
13. Instruction from Nepal Rastra Bank And Response From The Board Of Directors In The Process Of Approval For Publishing Financial Statements
Approval letter from the Nepal Rastra Bank regarding the annual accounts of F/Y 2067/068 has been published in this report. There are some policy directions given in the approval letter. Although the bank is committed to comply with the directions, bank opines on the issues as follows:
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It has been separately mentioned in the point no. 11 above regarding the proposed dividend distribution. Regarding the auditors comment, Direction No. 1: In some cases, bank hasnt obtained the declaration form in case loanee is taking loan from other bank and financial institutions. Banks opinion: Bank is in practice to obtain multiple declaration form if the loanee has taken loan from other banks and financial institutions. Auditor had commented in four loans only and the multiple declaration form has been obtained for the same. Direction No. 2: Loan disbursed without repayment schedule of principle and interest in some cases of term loan. Banks Opinion: Bank is in practice to disburse the term loan after the preparation of repayment schedule. Auditor made a comment that repayment schedule is missing on eight loans. Hence, repayment schedule has been prepared and updated accordingly. Direction No. 3: In some cases, assets held for the security of loan have not been insured or under insured, and insurance premium not paid timely. Banks opinion: As per the Credit policy collateral should be insured, which can be waived according to the situation by the loan approving authority. Waiver for insurance is given in such cases where stock such as iron, cement etc
(that cannot be lost or stolen) is kept as collateral, and where customer requests for waiver of insurance where the value of land is adequate to cover the loan amount. similarly, bank is always keen on timely renewal of insurance policy. There are 14 loans where the insurance premium has not been paid as pointed out by the Auditors for which the premium payment now has been made.
14. Change in the Board of Directors and the Management

Mr. Chandra Prasad Dhakal chairs the banks board of directors, and Mr. Krishna Bahadur Kunwar, Mr. Sandeep Agrawal, Mr. Dhan Bahadur Sherchan, Mr. Surendra Nath Pant, Mr. Sumit Kumar Agrawal, Mr. Ashwini Kumar Acharya, Mr. Pushpa Man Shrestha are the directors. Out of them Mr. Ashwini Kumar Acharya and Mr. Pushpa Man Shrestha are from public shareholders. Meanwhile Mr. Mahendra Nath Karmacharya, who had been appointed as specialist director and working since 2068 Jestha 23 has resigned from the post on 2068 Mangsir 15 quoting personal reason. Board of director expresses sincere thanks to him for his contribution even in the short span of time. Our current CEO Mr. Anil Gyawali has resigned from bank services sighting the reason of his appointment as CEO of Nabil Bank. His resignation has been accepted with effect from 2068.01.31. We would like to thank him for his services as CEO in bank. Board of Directors has appointed Mr. Ratna Raj Bajracharya having huge experience in
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Banking sector from 2068.02.01. We are confident that bank will achieve remarkable success during his tenure.
15. Merger with other institutions:

It is known that banks special AGM held on 2068/04/23 has passed the special proposal which has given power to board of directors for merger with other appropriate banks and financial institutions by analysing various aspects as per policy and the directives of Nepal Rastra Bank as well as Nepal government. We would like to inform that we are seeking an appropriate institution for merger and have been discussing with some institutions for the same. Shareholders will be informed accordingly if any agreement is made with any bank/ financial institutions.
we commit to provide our respected shareholders suitable return in coming years by providing quality banking services to our respected well wishers and customers. We sincerely thank the employees for their remarkable contribution in achieving the banks objective and express our gratitude to our respected shareholders, customers, Nepal Government, Ministry of Finance, Nepal Rastra Bank, Press, Civil Society for their assistance in banks advancement. To conclude, Global Bank Limited is firmly committed to delivering long-term value to our shareholders while driving profitable growth and staying focused on the success of our customers and partners. We appreciate your continued trust and we thank you for being a valued shareholder.
16. Conclusion
As mentioned in the previous year, I would like to mention yet again that
Thank You. From the board of Director Chandra Prasad Dhakal Chairman.
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10
Product and Services

Deposit Products
Global Savings Products
Our Savings Products facilitate easy and regular withdrawal of funds as and when required and simultaneously earning of income on the balance that is kept in the account. Any person having a savings account is allowed to deposit money and withdraw to the extent of balance freely from his/her account.
Features:
Minimum Balance: Rs.10,000 Free ABBS (Any Branch Banking Service) SMS Banking with alert of every transactions and bill payment features. Annual fee waived for 1st year. Free Internet banking Visa Debit Card Safe deposit locker facility
Global Super Savings

Global Super Savings is an interest bearing account, designed to provide higher return on savings of general public without having to lock fund. The customer has flexibility to deposit and withdraw any amount of fund.
Global Shubhalabh Bachat

Global Shubhalabh Bachat is another interest bearing account that provides moderate return to the customer without having to maintain high minimum balance.
Features:
Minimum Balance: Rs. 5,000 Free ABBS (Any Branch Banking Service) SMS Banking with alert of every transactions and bill payment features. Annual fee waived for 1st year. Free Internet banking Visa Debit Card Safe Deposit Locker facility
Features:
Minimum Balance: Rs. 25,000 Free ABBS (Any Branch Banking Service) SMS Banking with alert of every transactions and bill payment features. Annual fee waived for 1st year. Free Internet banking 50% discount on issuance fee Visa Debit Card 50% discount on Locker Facility Waiver of locker key deposit requirement
Global Nari Bachat

Global Nari Bachat has been designed to encourage saving habits of women. The low minimum balance focuses on enabling any women to open the account whenever they wish.
Global Savings Plus

Global Savings Plus has been designed to provide moderate return to the customer without having to maintain high minimum balance.
Features:
Minimum Balance: Rs. 100
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Our Savings Products facilitate easy and regular withdrawal of funds as and when required and simultaneously earning of income on the balance that is kept in the account. ...
ABBS (Any Branch Banking Service) SMS Banking with alert of every transactions and bill payment features. Annual fee waived for 1st year Free Internet banking Visa Debit Card Safe Deposit Locker facility
to meet the savings needs of the college students and thus aims at developing banking habits among the college students.
Features:
Minimum Balance: Nil Free ABBS (Any branch banking service) SMS Banking with alert of every transactions and bill payment features. Annual fee waived for 1st year. Free Internet Banking 50% discount on the issuance fee of Visa Debit Card Cheque book will be issued on request Attractive Discounts at various recreational centers for the students
Global Future Star Deposit

Global Future Star Deposit enables parents to save for secured future of their children by opening the account in their childrens name and keeping themselves as patron until the children reach the age of 16.
Features:
Minimum Balance: Rs. 1000 ABBS (Any Branch Banking Service)
Global Karmachari Bachat

Global Karmachari Bachat has been designed to enable institutions to efficiently distribute salary of their employees through the banking channel.
Global Senior Citizen Account

Global Senior Citizen Account caters the special requirement of the senior citizens of our country.
Features:
Minimum Balance: Rs. 1000 ABBS (Any Branch Banking Service) SMS Banking with alert of every transactions and bill payment features. Annual fee waived for 1st year. Free Internet banking Visa Debit Card 30% discount on locker service charge Safe Deposit Locker facility Privileged service is offered from the branches in which Global Plus Lounge is available
Features:
Minimum Balance: Nil Free ABBS (Any branch banking service) SMS Banking with alert of every transactions and bill payment features. Annual fee waived for 1st year. Free Internet Banking 50% discount on Visa Debit Card 30% discount on service fee of Safe Deposit Locker Facility
Global Remitters Super Savings Account

Global Remitters Super Savings Account enables Nepalese workers at foreign countries to save their earnings in the bank and also to easily send their earnings to their families back home.
Global Student Savings Account

Global Student Savings Account, our latest deposit product, has been designed
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Features:
Minimum Balance: Nil Free ABBS (Any branch banking service) Free Internet Banking 0.25% discount on processing fee of home
Features:
Minimum balance requirement: USD 100.00 Minimum balance requirement: EUR 100.00 Minimum balance requirement: GBP 100.00
Global Normal Savings

This is a general savings product designed to encourage small savings among people.
Global Fixed Deposit Products

The fixed deposit product enables a customer to earn higher rate of interest on the funds that the customer is ready to deposit without withdrawing for certain period of time. The products offer higher rate of interest than savings account. Different interest rates are offered on deposits maintained for different tenures.
Features:
Minimum Balance: Rs. 1,000 ABBS (Any Branch Banking Service) SMS Banking with alert of every transactions and bill payment features Free Internet banking Visa Debit Card Safe Deposit Locker facility
FCY Fixed Deposit and Call Deposit Rates are Negotiable
Foreign Currency Savings Deposit Account

This product enables people having income in foreign currency to maintain deposits in foreign currency.
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!! Financing your personal and business needs !!
Loan Products
Consumer/ Personal Loan
Global Home Loan Helping you realize your dreams.
Global Small Business Loan

Global Small Business Loan also gives you the comfort of Insurance while fulfilling your business/financial need.
Global Auto Loan

Our Auto Loan with its all-inclusive features is the ultimate solution to your financing requirements. With its simple documentation process coupled with our speed of delivery and flexibility, you can drive your vehicle today itself- be it brand new or used.
Purpose:
Banking facilities for those who do not have access facilities to banking services Providing all kind of financing facilities with hassle-free processing and documentation formalities Working capital for existing / startup businesses Term loan for existing and new business Supplier Credit / Bid Bond / Performance Bond / Advance Payment Guarantees to facilitate existing and new businesses
Global Hire Purchase Loan

GBL Hire Purchase loan enables you to purchase commercial vehicles such as heavy and light commercial vehicles especially truck, bus, microbus excavator etc.
Global Education Loan

Global Education Loan is provided to suffice financing requirement for students to pursue sound academic career. Our education loan aims to provide financing in such a way that the requirements of the students are met without any hassles.
Features and Benefits:

Easy Access and prompt decision Competitive interest rates Other necessary charges (CICL enquiry charge etc.) on actual basis, if applicable. Flexibility in collateral requirement Rokka land and building / no mortgage required No valuation cost
Global Mortgage Loan (Personal Loan)

Global Mortgage Loan/ Global Personal Loan is provided to suffice your personal financing/ business requirements such as for financing your long vacation plans, buying home equipments, electronics or any other unexpected needs.
Eligibility:
Small business new or existing Business registration (with VDC or other local bodies, as applicable) Business located in branch locality Borrower should be eligible for insurance coverage Should not have loan with any bank or financial institution
Loan against FD
Provides you flexibility of availing loan on your Deposit.
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Only member from one family shall be eligible Joint application may be considered
Financing for trade related facilities like LC/TR and non-funded facilities like bank guarantee etc.
Features and Benefits: Documents Required:

Loan Application Form and Insurance Form dully filled and signed. Photocopy of citizenship certificate of applicant, guarantors(s) Passport size photographs of applicant, guarantor(s) Name of the family members Location map of the residence and business premises Multiple banking declaration Photocopy of Firm Registration if applicable Medical checkup report of the client as required by Insurance Company and other documents as required Other documents stipulated by the Bank from time to time Competitive Interest rates. Quick Turnover time: Approving status within 36-48 hours upon completion of all required documents Flexible tenor: Maximum up to 10 years on installment basis and 1 year for term loan. Counseling to help better financing by our Relationship Managers throughout the process Prepayment charge: 1% of the prepaid amount if prepayment is one year from the date of initial disbursement
Eligibility
Small and medium scale industries (carpet, garment, pashmina, handicraft etc); Trading sector (wholesaler & retailers/distributors, import and exporters), service sector (cargo/ freight forwarders, travel/ tour/ ticketing agencies, hospital/ polyclinics, educational consultancies etc.) and any other sector Firm/ company owned by Nepalese individual registered in concerning government authorities / municipality / VDC. Business is in operation at least for last six months for new venture after registration in concerning government authorities/ municipality/ VDC. Minimum 2 years of profitable operation or the new business to be established by the key person who has minimum 2 years of experience in the similar business.
SME Loan
!! Flexible financial solutions for business operation and expansion. !! Global Small Business Loan/ Small and Medium Enterprises Loan Our SME Loan enables you to meet your unique business requirement.
Purpose
Financing for small business facilities and commitments Working capital financing Swapping of loan from other banks and financial institutions Financing for capital expenditure (in the form of Fixed Term Loan)
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Swapping of loan is subject to the satisfactory debt servicing to concerning banks/financial institution Primary security: Hypothecation of stocks, assignment of current assets, bills and receivables of the business. Secondary Security: Acceptable Fixed Assets Collateral. Maximum loan amount up to Rs.10 million for both funded and non funded loan / facility.
Documents Required
Loan application firm duly filled and signed in standard format of the Bank Photocopy of citizenship certificate of applicant, guarantor. Name of the family members Current account in the name of the borrower Name of the sister concerns Photocopy of Firm / company Registration Photocopy of article of association and memorandum of association and board resolution Net-worth declaration statements. Stock report, account receivables and payables Photocopy of land ownership certificate Financial statement of last three years either audited or management prepared Original blue print of the land Photocopy of construction completion certificate from Municipality/VDC (Nirman Sampanna Pramanpatra).
Photocopy of four Boundary Disclosure (Char Killa) from ward office of the land/building to be placed as collateral. Photocopy of latest land revenue receipt (Malpot Receipt) and tax clearance receipt of the building to be placed as collateral Photocopy of Tax/PAN/VAT certificate along with registration certificate Photocopy of land/housing Transfer Deed (Rajinama) Original letter stating coheir (Anshiyar) of the owner of the collateral from local authority (Ward) Other documents stipulated by the Bank from time to time
Corporate Loan
!! Financing to help you maximize business growth !! Funded Loan Global Bank offers different Industrial/ Business Loans to suffice financing requirement of different kinds of organizations. Non Funded Loan/Trade Services We provide you a wide range of trade services covering import services, export services and guarantees. We have an experience team of trade finance staff, who will work with you in a very personalized manner, to ensure you international trade finance transactions proceed faster, easier and risk-free.
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Remittance
Domestic Remittances:
Global Bank, one of the largest commercial bank of Nepal in terms of capital investment, is providing fastest, most reliable and most secured remittance facilities of domestic remittances through its wide network of more than 200 locations. Nepalese staying in any part of country can send their money more safely to their relatives at other part of country in no time.
Details of Correspondent Banks:

USD Account: Standard Chartered Bank, New York, One Madison Avenue, New York 10010-3603 SWIFT CODE: SCBLUS33 Account Number: 3582-021108-001 HABIB American Bank, 99 Madison Avenue, New York, NY 10016 SWIFT CODE: HANYUS33 Account Number: 2072-9306 Standard Chartered Bank, Singapore, 6 Battery Road, Singapore SWIFT CODE: SCBLSGSG Account Number: 01-02-1728-03 EUR Accounts: Standard Chartered Bank GMBH, 60486 Frankfurt, Am Main, GERMANY SWIFT CODE: SCBLDEFX Account Number: 018-188-406 Habib Bank of UK Plc Habib Allied International Bank Plc, 63 Mark Lane, London ECR 7 NQ SWIFT CODE: HABBGB2L Account Number: 2041-007-000-1882 GBP Account: Habib Bank of UK Plc Habib Allied International Bank Plc 63 Mark Lane, London ECR 7 NQ SWIFT CODE: HABBGB2L Account Number: 2041-007-000-1825 JPY Account: Standard Chartered Bank (Tokyo branch) 21st floor, Sanno Park Tower, 2-11-1 Nagatacho, Chiyoda-ku, JAPAN, SWIFT CODE: SCBLJPJT Account Number: 2327-368-1110
Inward Remittances:
Nepalese staying in any part of the world can remit their hard earned money to their family members in Nepal through Global Bank Limited.
Mode of remittance:
1.Swift Transfer Through the SWIFT transfer mechanism, you can transfer your fund from virtually anywhere in the world to us from any bank in the world. Society for Worldwide Interbank Financial Telecommunication System (SWIFT), the most reliable communications network system, provides you an opportunity to route your hard earned to Global Bank. You just need to provide the form filling up details to your local bank with the detail mentioning Swift Code of our correspondent bank, Swift code of Global Bank and your account number. Please instruct your bank to Credit our Nostro account number. ......... With ..........Bank (pls mention name of correspondent bank), .......... (Pls mention address of correspondent bank) SWIFT: ........ (pls mention Swift Code) of Global Bank Ltd Kathmandu, Nepal SWIFT: GLBBNPKA for Onward credit to ......... (pls mention your account number with Global Bank) ......... Branch, Global Bank Limited
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AUD Account: National Australia Bank Limited, Melbourne, Head Office, Melbourne, Australia SWIFT CODE: NATAAU33033 Account Number: 1803-1108-25-500 INR Account: HDFC Bank Ltd, Ground Floor, Conwood House, Yashodham, Gen. A. K. Vaidya Marg, Goregaon (East), Mumbai-400063, Maharashtra, India. Swift Code: HDFCINBB Account Number: 006-00-39-0000293 Standard Chartered Bank, 90 MG Road, Fort Mumbai 4001 India. SWIFT CODE: SCBLINBB Account Number: 222-05-333-962 Citibank Limited, Mumbai, India. SWIFT CODE: CITINBXXXX Account Number: 583479007
Global Remit:
Global Bank has established remittance business relationship with various foreign banks and foreign exchange companies. Nepalese staying abroad can visit any of these banks and exchange companies and send money through Global Remit, the safest and reliable money transfer system of Global Bank Limited, at low charges and high exchange rates to more than 800 remittance payment outlets across Nepal. Customers need not to have account with Global Bank to get the payment through Global Bank Limited. Global Remit Support Hotline: 977-1-4002515 Email: supportremit@globalbank.com.np
IME Remit:
Global Bank also works as one of the paying partner of IMEREMIT that has its reach in over 25 countries for bringing remittance to Nepal which means all International payments from IMEREMIT can be collected from Global Bank branches and Global Remit through IME outlets. Global Bank currently has its local remittance service in partnership with IME.
Cash Management Services (CMS):

Global Bank Limited, in association with Standard Chartered Bank (SCB), India, is also providing cash management services especially to corporate customers to get the payment with less hassles, time and cost. Under this system, Global Bank makes the necessary arrangement to collect the cheques from the Indian counterparts of Nepalese corporate houses through the branches of SCB and credit the account of customers at Global Bank Limited within very short span of time. Similarly, we have cash management arrangement with HDFC Bank, India through their branch network.
Outward Remittances:
Swift: Through the SWIFT transfer mechanism, you can transfer your fund to virtually anywhere in the world through Global Bank Limited. Society for Worldwide Interbank Financial Telecommunication System (SWIFT), the most reliable communications network system, provides you an opportunity to transfer your funds to any of the foreign banks.
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Bank Draft:
Global Bank has entered into draft drawing arrangement with various banks in India and abroad. Global Bank, thus, can draw demand drafts to its correspondent banks. Indian Rupee Draft Arrangement: Global Bank can draw the demand drafts to the various branches of Standard Chartered Bank, India, HDFC Bank and Centurion Bank, India. FCY Draft Arrangement: Global Bank can draw the demand drafts on number of its correspondent banks located various part of the world in various currencies.
interconnected. You can either deposit in account or withdraw from your account through any branches of Global Bank Limited under Anywhere Branch Banking System (ABBS).
Other Services
1. 2. 3. 4. 5. 6.
Managers Cheques:
Managers Cheque is the cheque drawn by Global Bank on itself. Global Bank issues Mangers cheque at very less charges which can be deposited in any account with other banks or in customers account at Global Bank itself.
Foreign Currency Sales / Purchase Foreign Currency Deposit Accounts Remittance Services Locker Service Internet Banking ATM (Automated Teller Machine) Service 7. Anywhere Banking (free of cost) 8. Global Plus Lounge 9. 365 Days Banking 10. Evening Counter 11. Draft Facility
Special Features
Fully centralized operations supported by cutting edge technology and world renowned banking software FINACLE with electronic document management systems Main focus on quality service Internet banking/technology-tailored products/ Aggressive branch expansion plan in Kathmandu and other parts of the country
Anywhere Branch Banking System:

Global Bank has used latest banking software FINACLE to provide best services to its valuable customers. With the centralized banking system, all the branches of Global Bank are
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Global Mobile Banking

INFORMATION ON GLOBAL MOBILE BANKING
We have upgraded Global SMS Banking to Global Mobile Banking. Now Global Banks customers do not need to send SMS to 3456 to do the Banking with us. GBL customer needs to have Global Mobile Banking application installed in their Mobile Phones and through that application all the banking transactions and enquiry mentioned here below can be performed via mobile phones. Global Mobile Banking continues to support syntax based SMS banking. Mobile phone users who do not have access to Windows based, Android based, or Java enabled mobile can continue using syntax based mobile banking.
1. Transaction
a. Fund Transfer c. Shopping d. Landline Bill Payment e. Postpaid Bill Payment f. i) i) Recharge NTC GSM Prepaid NTC CDMA Prepaid b. Credit Card Payment
4. General Enquiry
a. Online Account Balance b. Last Five Transactions c. Banking Hour d. Exchange Rate
This application supports both GPRS and SMS which is the added benefit to our customers along with relief from the hassle of traditional SMS Banking where customers are required to memorize the SMS syntax. Global Mobile Banking application which is required to be installed in mobile phone can be downloaded from our website www.globalbanknepal.com . This setup file can be downloaded from mobile phones with GPRS facility or can be downloaded to any PC and then transferred to mobile phone.
Global Online
Why stand in line when you can be online? Global Bank offers convenient banking facilities through the Internet so its valued customers can save their time and money. Global online banking features many of the traditional banking activities which previously could only be done through the counter.
iii) ESewa Account
2. Request
a. Card Stop b. Cheque Stop c. Statement d. Cheque Book e. Pin Change f. Help
Global Corporate Online Banking

Global Corporate Online Banking offers all the features and advantages of Global Online Banking and the added benefit is that Corporate Users can disburse the salary to their entire staffs on a monthly basis or as per the requirement of the individual corporation. This service allows corporate clients with their staff salary accounts with the Bank to upload their staffs salary from their own office.
3. Credit Card Enquiry

a. Available Credit Limit b. Available Cash Limit c. Total Outstanding Amount d. Minimum due Amount e. Total Due f. Last Payment g. Interest Charged
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Card Products
Global Card Products: Global Bank offers various card products to its customers. All of Global Banks cards are issued under Visa brand. The Bank offers two types of cards, debit card and credit card. Customers who have the Banks card(s) can use it to purchase goods and services at various merchant locations in Nepal and India. In addition, they can use their cards to withdraw cash from hundreds of Automatic Teller Machines (ATM) in Nepal and from thousands of ATM machines in India. Debit Card customers can also use ATM machines to recharge prepaid GSM/CDMA (Nepal Telecom) and request cheque book and bank account statement anytime. International Prepaid Cards and Credit Cards are also issued by the Bank and these cards are acceptable wherever Visa is accepted. Card Products : Visa Debit Cards Global Travel Card Visa Domestic Gold Credit Cards Visa Domestic Classic Credit Cards Visa International Credit Cards (USD)
2. Select Account type - Savings, Current or Credit 3. Select Mobile Service Provider GSM or CDMA 4. Select Voucher Size 5. Recharge PIN will be printed in Consumer Receipt 6. Use this number to recharge balance in usual way i.e. dialing 1414 (GSM) OR 1415 (CDMA) typing USSD command : *411*PIN NUMBER# and Call (For GSM only) Request Cheque Book and Statement anytime through ATMs Global Bank is proud to announce Cheque Book Request and Statement Request through ATM. Now, Global Banks customers dont need to visit bank to apply for new cheque book or statement. You can simply request these from nearest Global Bank ATM. The next working day, your check book/statement will be ready for collection. Transaction Process: 1. Select Others from Main Menu 2. Select Option - Cheque Book Request or Statement Request 3. Select Account Type - Saving or Current Customer Care Phone No: 977 - 01 - 4245477 Customer Care Service is available from 08:00 a.m. to 08:00 p.m. everyday including weekend and public holidays.
Recharge Prepaid GSM/CDMA (Nepal Telecom) anytime through Global Bank ATMs
Global Bank is proud to offer prepaid phone recharge facility to Nepal Telecom GSM/CDMA prepaid phone subscribers. The recharge pin can be purchased from any Global Bank ATM location. Transaction process: 1. Select Mobile Recharge from Main Menu of ATM
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the bank takes initiatives to further develop the employees caliber by creating an appropriate and sound environment to provide necessary trainings at national and international level where they can be cultivated in different areas...
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Dhoj Bahadur Saud Birjung (Head-Office) Hari Prasad Acharya New Road
Branch Managers
Arati Rana Kantipath
Narahari Silwal Baglung
Manoj Regmi Pokhara
Anup Ghimire Biratnagar
Rohit Kumar Mahaseth Lahan
Anamika Singh Bouddha
Prabin Shrestha Gyaneshwor
Suresh Sharma Butwal
Rabindra Dhakal Kirtipur
Krishnahari Adhikari Narayanghat
Anil Aryal Kuleshwor
Anil Bajracharya Nepalgunj
Damber Thakurathi Dadeldhura
Sujan Poudel Lamki
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Gyanendra Dutta Gaighat
Tarka Raj Acharya Lagankhal
Bishal Gupta Dhulabari
Swaicha Rana Dhapasi
Aline Bharati Thamel
Surendra Bahadur Shahi Dhangadi
Chamatkar Poudel Banasthali
Prajjwal Nakarmi Chhetrapati
Kush Sudan Singh Bhairahawa
Sanjog Rajbhandari Phikkal
Merina Shrestha Kupondol
Sagar Bahadur Singh New Baneshwor
Deepak Khanal Surkhet
Birendra Bhatta Baitadi
Chitra chalise Dillibazar
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12
Annexure A
,Significant Accounting Policies and Notes to Accounts.
4. Information provided by key shareholder to the company during the previous F.Y .
As required by sec 109 of Companies Act 2063, remaining point wise particulars of details to be included separately in Boards Report
1. Information on Shares forfeited by the Bank during the year:
There is not any forfeiture of share during the Fiscal year 2010-11.
2. Financial positions of the Bank and its subsidiary in the previous year ended:
Bank does not have any subsidiaries. Detail financial position of the bank has been provided on the Directors report and audited financial statements of the year 2010-11.
3. Major transactions carried out by the Bank and its subsidiary during the financial year 2010/11, and any significant changes in the business of the Bank during the period:
Promoter shareholder of the bank from Group A Sub Group F, Mr. Sushil Kumar Pant, has informed the bank to hold only 0.95% share in his name as a result of division of family and he is no more the major Shareholder.
5. Information regarding the ownership of shares and involvment in the share transactions by the Directors and officials of the company.
Bank does not have any subsidiaries. The major transactions carried out by the bank and the change in transactions is apparent through the attached Balance Sheet, Profit & Loss a/c, Cash Flow Statement
The Directors and members of management team are not involved in the share transaction of the company. Management team has not taken any shares apart from the ones separated for the employees.
Share holding patterns of the Directors are as follows: S.No 1 2 3 4 5 6 7 8 9 Name of Shareholder Mr. Chandra Prasad Dhakal ( Representative IME Investment P Ltd) . Mr. Krishna Bahadur Kunwar Wide Investment P Ltd) . Mr. Dhan Bahadur Sherchan Mr. Sumit Kumar Agrawal Mr. Sandeep Agarwal Mr. Aswini Kumar Acharya (General Public) Mr. Pushpa Man Shrestha (General Public) Mr. Surendra Nath Pant ( Representative Continental Investment P Ltd) . Mr. Mahendra Nath Karmacharya (Specialist) (Representative World No. Of shares 1,576,206 1,393,396 93,907 886,515 506,580 525 435 1,124,010 270
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6.
Information provided to the company by Any Directors or his close relatives on their personal interest in the company related agreements in the previous fiscal year.
Mr. Krishna Prasad Lamichane
- Member Secretary (Head- Internal Audit Department) For every audit meeting held, the audit committee members (Board Members only) get Rs. 5000/- allowance. In this current fiscal year, a total allowance of Rs.85, 000/-has been paid to the audit committee members. Audit committee in regular intervals discusses internal and annual audit report prepared by Internal Audit Department and presents it to the Board of Directors. During the review year, Audit Committee meeting was held ten times with different agenda. As a result, the committee has given suggestions to the Board of Directors on various areas such as financial position, internal control system, legal compliance and risk minimization.
No such transaction has taken place.

7. If company has purchased its own shares, the reason for purchasing its own shares, the number of shares purchased and the face value and also the payment maid by the company for such purchase.
The Bank has not purchased any of its own shares.

8. Distribution of Profit:
The bank has recommended to distribute 12.02 % dividend (5.35% cash dividend and 6.67% bonus share) from current year profit including the accumulated profit and share premium from last year to its shareholders. Appropriation from net profit to other reserves and funds has been reflected in Reserve and Funds in the Financial Statement.
9. Statement of the Total Management expenses for the financial year
11. Payments due to the Bank from any Directors, Managing Director, Chief Executive or the key shareholders of the Bank and their close relatives, or from any firm, company or corporate body in which they are involved in.
Particulars of the total management expenses for the financial year 2010/2011 are as follows: Particulars Staff Expense Operating Expense Total Amount (Rs) 155,003,585 237,364,199 392,367,784
No payment is due to the Bank from any such persons.

12. Remuneration, allowances and facilities provided to the Directors, Managing Director, Chief Executive Officer and other official of the bank.
10. Details on the members of the Audit Committee; salary, allowance and facilities provided to the members; work carried out by the committee and any suggestions given:
The Bank has Audit Committee comprising of the following members:

Mr. Dhan Bahadur Sherchan
Coordinator
Mr. Krishna Bahadur Kunwar
Member
The under noted amounts were paid as remunerations, allowances and facilities to the Directors, managing director, chief executive officer and other office bearers: (a) Chairman and Board members: Chairman of the Board of Directors and the board members get Rs.5, 000/-meeting allowance per meeting and the sub-committee members get Rs 5000/- meeting allowance per meeting. A sum of Rs 575,000/- has been paid to the Chairman, and the board members as allowance for the year 2010/11 and Rs 405,000/- allowance for
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subcommittee members. Rs.175, 655/has been incurred as other expenses for the board meeting. Apart from the allowance, the Chairman, the Board and Sub Committee members do not receive any remuneration, other allowances and facilities. (b) Chief Executive Officer, Company Secretary and other officials: The detail of salary, allowance and facilities provided to CEO, Company Secretary and other officials are as below: Salary, allowance and facilities provided to CEO are as follows: Particulars Salary Allowance PF Electricity Expense Water Expense Mobile Expense Total Amount (Rs) 4,760,000.00 3,315,000.00 476,000.00 20,258.00 6,164.00 8,910.00 8,586,332.00
Other allowance and facilities are provided as per the banks Personal Policy Guidelines, Financial Administrative Policy and as decieded by Board from time to time.
13. Dividend yet to be collected by the Shareholder:
The dividend yet to be collected by shareholders is Rs 10,750,589.50.

14. Details of property purchased or sold as per section 141:
a)
The details of assests required by the bank (Vehicle, office equipment, capital expenditure, leasehold improvement) purchased and sold details has been shown under schedule 4.14 of the attached financial statement. Assets have been purchased and sold as per the prevailing market price and the procedures prescribed in the Financial Administrative Policy of the bank.
b)
15. Details of transactions between related companies as per section 175.
No any such transations. For staffs up to the position of Assistant Manager, salary, allowance and PF of Rs 24,789,771/- Rs 1,584,818/- as Fuel expenses, and Rs 479,678/- as mobile expenses totaling to Rs 26,820,818/payment has been made. Rs 403,647/- has been paid to Company Secretary as remuneration this year. Salary, allowance and facilities are provided only after deducting tax as per the prevailing laws.
16. Others details to be disclosed in the Board report as per the Company Act and other laws in force.
No any such details.

17. Other important matters:
No any such matters.
40
13
Corporate Social Responsibility

on car accident on 10 Mangsir 2068. Mr Khatri at that time was serving for Karobar Daily as financial news editor.
As part of our CSR activity we have conducted various events mentioned as below;
We are providing Rs. 100,000.00 every year till 12th grade to Bhaibhav Khatri son of late Bijay Babu Khatri who died
Global Bank had provided Rs. 10,000.00 to tewa for marathon event. This fund will go for empowerment of rural women
Blood donation program held at kantipath branch on occasion of banks 4th anniversary. As a CSR activity bank has been doing blood donation camp every year
41
14
New Initiative
Press conference on start of remittance service from Korea at hotel radisson
15
Auditors Report
AUDITORS REPORT
TO THE SHAREHOLDERS OF GLOBAL BANK LIMITED
1. We have audited the accompanying Balance Sheet of Global Bank Limited as on Ashadh 32, 2068 (July 16, 2011) and the related Profit and Loss Account and Cash Flow Statement for the year then ended. These financial statements are the responsibility of the banks management. Our responsibility is to express an opinion on these financial statements based on our audit. 2. We conducted our audit in accordance with the generally accepted auditing standards in Nepal and the directives issued by the Nepal Rastra Bank. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. 3. On examination of the financial statements as aforesaid, we report that: a) We have obtained all information and explanations, which to the best of our knowledge and belief were necessary for the purpose of our examination. b) In our opinion, proper books of account as required by law have been kept by the Bank, in so far as appears from our examination of those books of account and the financial statements dealt with by this report are in agreement with the books of accounts. c) In our opinion, the statements received from the respective branches are adequate for the audit purpose, though the statements are independently not audited. d) In our opinion and to the best of our information and according to the explanations given to us and from our examination of the books of accounts of the Bank, we have not come across the cases where the Board of Directors or any member thereof or any employee of the Bank has acted deliberately contrary to the provisions of the law relating to accounts or caused loss or damage to the Bank or committed any misappropriation or violated any directive of Nepal Rastra Bank or acted in a manner to jeopardize the interest and security of the Bank and its depositors. e) In our opinion, adequate capital fund and provisions for losses have been made and the business of the Bank has been conducted within its authority. 4. In our opinion and to the best of our information and according to the explanations given to us, the said financial statements referred to above, read together with the notes attached thereon give a true and fair view of the financial position of the bank as of Ashad 32,2068 (July 16, 2011) and of the results of its operations and its cash flow for the year then ended in accordance with Nepal Accounting Standards so far as applicable in compliance with prevailing Laws.
Sundar Man Shrestha, FCA Chartered Accountant For Sundar & Co. Date: August 22, 2011
43
16
BALANCE SHEET
As at Ashad 32, 2068 (16 July,2011)
Capital & Liabilities 1. 2. 3. 4. 5. 6. 7. 8. 9. Share Capital Reserves and Surplus Debentures & Bonds Borrowings Deposit Liabilities Bills Payable Proposed Dividend & Unpaid Dividend Income Tax Liabilities Other Liabilities Total Capital and Liabilities Assets 1. 2. 3. 4. 5. 6. 7. 8. 9. Cash Balance Balance with Nepal Rastra Bank Balance with Banks/Financial Institution Money at Call and Short Notice Investment Loans, Advances and Bills Purchase Fixed Assets Non Banking Assets Other Assets Total Assets
Finacial Statements
Schedule 1 2 3 4 5 6 Current Year (in npr) 1,600,000,000 108,027,365 401,789,148 15,066,490,196 60,460,181 80,263,158 205,678,387 17,522,708,435 Schedule 8 9 10 11 12 13 14 15 16 Current Year (in npr) 522,683,708 808,764,905 422,997,504 2,920,246,931 12,372,423,238 231,579,653 244,012,496 17,522,708,435 Previous Year (in NPR) 1,473,350,200 47,671,695 339,160,000 15,031,548,347 66,631,883 74,258,165 168,795,196 17,201,415,486 Previous Year (in npr) 543,541,704 945,041,257 945,754,986 2,270,487,367 11,960,452,518 284,400,059 251,737,595 17,201,415,486
Contingent Liabilities Directors' Declaration Statement of Capital Fund Statement of Risk Weighted Assets Principal Indicators Principal Accounting Policies Notes to Accounts
Schedule 17 Schedule 29 Schedule 30 Schedule 30(A) Schedule 31 Schedule 32 Schedule 33
Schedules 1 to 17 ,32 and 33 are integral part of the Balance Sheet. Ratna Raj Bajracharya Chief Executive Ofcer Chandra Prasad Dhakal Chairman Dhan Bahadur Sherchan Krishna Bahadur Kunwar Sandeep Agrawal Sumit Kumar Agrawal Surendra Nath Pant Ashwini Kumar Acharya Pushpa Man Shrestha Mahendra Karmacharya As per our Attached Report of even date
Manoj Gyawali, FCA Head- Finance & Planning
Directors
Sundar Man Shrestha, FCA Partner .. Chartered Accountants
Date :17-08-2011 Place - Kathmandu
44
PROFIT AND LOSS ACCOUNT

For the period 1 Shrawan 2067 to 32 Ashad 2068 (17 July 2010 to 16 July 2011)
Particulars 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. Schedule Current Year (in NPR) 1,963,603,757 1,288,050,875 675,552,882 67,518,016 84,979,378 30,936,320 858,986,596 155,003,585 237,364,199 466,618,812 252,931,188 213,687,624 (132,689) 166,245,258 379,800,193 (93,481,115) 286,319,078 26,029,007 57,270,136 (13,593,640) (8,474,972) 110,796 224,977,751 Previous Year (in NPR) 1,464,977,690 962,009,866 502,967,824 54,618,494 75,488,363 35,362,777 668,437,458 100,256,551 209,346,082 358,834,825 195,065,688 163,769,137 440,325 164,209,462 164,209,462 14,928,133 74,360,781 1,917,256 73,003,292
Interest Income 18 Interest Expenses 19 Net Interest Income Commission and Discount 20 Other Operating Income 21 Exchange Fluctuation Income 22 Total Operating Income. Staff Expenses 23 Other Operating Expenses 24 Exchange Fluctuation Loss 22 Operating Prot before provision for Possible Loss Provision for Possible Losses 25 Operating Prot Non Operating Income /(Loss) 26 Provision For Possible Loss Written Back 27 Prot from Regular Operations Prot/(Loss) from Extra-Ordinary Activities 28 Net Prot after Considering all Activities Provision for Staff Bonus Provision for Income Tax * Current Years * Deferred Tax: Current Year Previous Year * Up to Previous Year Net Prot/Loss
Schedules 18 to 28 are integral part of the Prot & Loss Account.
Ratna Raj Bajracharya Chief Executive Ofcer
Chandra Prasad Dhakal Chairman Dhan Bahadur Sherchan Krishna Bahadur Kunwar Sandeep Agrawal Sumit Kumar Agrawal Surendra Nath Pant Ashwini Kumar Acharya Pushpa Man Shrestha Mahendra Karmacharya
As per our Attached Report of even date
Directors
45
PROFIT AND LOSS APPROPRIATION ACCOUNT

Particulars Income 1. Accumulated Prot up to Previous Year Add:Transferred from Dividend Payable 2. Current Year's Prot 3. Exchange Fluctuation Fund 4. Transfer from Share Premium Total Expenses 1. Accumulated Loss up to Previous Year 2. This Year's Loss 3. General Reserve 4. Contingent Reserve 5. Institutional Development Fund 6. Dividend Equalization Fund 7. Staff Related Reserves 8. Proposed Dividend 9. Proposed Bonus Shares 10. Special Reserve Fund 11. Exchange Fluctuation Fund 12. Capital Redemption Reserve Fund 13. Capital Adjustment Fund 14. Investment Adjustment Reserve 15. Deferred Tax Reserve Total 15. Accumulated Prot/(Loss) Schedule
This Year (in NPR) 1,336,206 590,655 224,977,751 15,050,422 241,955,034 Previous Year (in NPR) 23,597,584 73,003,292 96,600,876
44,995,550 80,263,158 100,000,000 2,835,017 13,593,640 241,687,365 267,669
14,600,658 74,258,165 6,105,847 300,000 95,264,670 1,336,206
Ratna Raj Bajracharya Chief Executive Ofcer
Chandra Prasad Dhakal Chairman Dhan Bahadur Sherchan Krishna Bahadur Kunwar Sandeep Agrawal Sumit Kumar Agrawal Surendra Nath Pant Ashwini Kumar Acharya Pushpa Man Shrestha Mahendra Karmacharya
As per our Attached Report of even date
Directors
46
STATEMENT OF CHANGES IN EQUITY

Share Capital Accumulated Prot/ Loss
1,336,206 32,108,384 13,927,105 300,000
As at Ashad 32, 2068 (16 July,2011)

General Reserve Capital Reserve Fund Proposed Bonus Share Share Premium Exchange Fluctuation Fund Deferred Tax Reserve Investment Adjustment Reserve Other Reserve & Fund
-
Particulars
Total Amount
Opening Balance
1,473,350,200
1,521,021,895 -
Deffered Tax 590,655 1,473,350,200 1,926,861 32,108,384 13,927,105 300,000 -
Transferred from Dividend Payable
Restated Balance
1,521,612,550 -
Surplus on revaluation of property
Currency Translation Difference
Net gain /loss not recognized in 224,977,751 15,050,422 (44,995,550) 44,995,550 15,050,422 (15,050,422)
the income statement 224,977,751 15,050,422 -
Net prot for the period
Adjustments
Transfer to General Reserve
Investment Adjustment Reserve
Capital Adjustment Fund
Transfer from Share Premium
Declaration of Dividend (80,263,158) (100,000,000) (2,835,017) 26,649,800 (13,593,640) 1,500,000,000 267,669 77,103,934 100,000,000 16,762,122 13,593,640 13,593,640 300,000 100,000,000 2,835,017 -
a. Cash
b. Bonus Share
Exchange Fluctuation Fund
26,649,800 1,788,290,523
Right Issue (Renounced &
Acutioned)
Transfer to Deferred Tax Reserve
Closing Balance at 32 Ashad
2068
*590,655 on account of unpaid dividend
47
CASH FLOW STATEMENT
Particulars (a) Cash Flow from Operating Activities 1. Cash Received 1.1 Interest Income 1.2 Commission and Discount Income 1.3 Income from Foreign Exchange transaction 1.4 Recovery of Loan Written off 1.5 Other Incomes 2. Cash Payment 2.1 Interest Expenses 2.2 Staff Expenses 2.3 Ofce Overhead Expenses 2.4 Income Tax Paid 2.5 Other Expenses Cash Flow before changes in Working Capital Increase/( Decrease) of Current Assets 1. (Increase)/Decrease in Money at Call and Short Notice 2. (Increase)/Decrease in Short Term Investment 3. (Increase)/Decrease in Loans, Advances and Bills Purchase 4. (Increase)/Decrease in Other Assets Increase/( Decrease) of Current Liabilities 1. Increase/(Decrease) in Deposits 2. Increase/(Decrease) in Certicates of Deposits 3. Increase/(Decrease) in Short Term Borrowings 4. Increase/(Decrease) in Other Liabilities (b) Cash Flow from Investment Activities 1. (Increase)/Decrease in Long-term Investment 2. (Increase)/Decrease in Fixed Assets 3. Interest income from Long term Investment 4. Dividend Income (c) Cash Flow from Financing Activities 1. Increase/(Decrease) in Long term Borrowings (Bonds,Debentures etc) 2. Increase/(Decrease) in Share Capital 3. Increase/(Decrease) in Other Liabilities 4. Increase/(Decrease) in Renance/facilities received from NRB 5. Payment of Dividend (d) Income/Loss from change in exchange rate in Cash & Bank Balances (e) Current Years Cash Flow from All Activities (f) Opening Balance of Cash and Bank Balances (g) Closing Balance of Cash and Bank Balances This Year (in NPR) Previous Year (in NPR) (807,753,392) 1,233,235,412 2,037,972,778 1,524,317,137 1,780,928,722 1,358,847,503 68,364,215 54,618,494 30,936,320 35,362,777 72,764,143 84,979,378 75,488,363 1,634,402,718 1,276,072,490 1,260,532,008 953,788,564 146,429,908 104,115,160 162,985,900.00 143,807,985 64,454,902 74,360,781 403,570,060 248,244,647 (1,291,256,612) (3,032,217,457) 36,643,201 (632,259,594) (237,947,293) (664,341,628) (2,994,611,213) 5,344,610 163,697,848 79,933,160 4,017,208,222 34,941,849 4,101,150,936 62,629,148 (160,300,000) (17,637,837) 76,357,286 166,000,552 (644,562,808) (17,499,970) (650,366,639) (10,964,719) (116,306,742) 194,465,241 122,110,573 (38,138,990) 463,523,331 41,700,222 (6,171,702) (73,667,510) (679,891,830) 2,434,337,947 1,754,446,117 473,350,200 (9,826,869) 1,052,195,935 1,382,142,012 2,434,337,947
48
SHARE CAPITAL AND OWNERSHIP

As at Ashad 32, 2068 (16 July,2011)
Schedule 1
Particulars 1. Share Capital 1.1 Authorized Capital a) 30,000,000 Ordinary Shares of NPR 100 each b) .Non-redeemable Preference Shares of NPR.each c) .Redeemable Preference Shares of NPR.each 1.2 Issued Capital a) 15,000,000 Ordinary Shares of NPR 100.00 each b) .Non-redeemable Preference Shares of NPR.each c) .Redeemable Preference Shares of NPR.each 1.3 Paid Up Capital a) 150,00,000 Ordinary Shares of NPR 100.00 each b) .Proposed Bonus Shares of NPR.each c) .Non-redeemable Preference Shares of NPR.each d) .Redeemable Preference Shares of NPR.each 1.4 Proposed Bonus Share 1.5 Calls In Advance 1.6 Total Amount (1.3+1.4+1.5)
This Year (in NPR) 3,000,000,000 3,000,000,000
Previous Year (in NPR) 3,000,000,000 3,000,000,000
1,500,000,000 1,500,000,000
1,500,000,000 1,500,000,000
1,500,000,000 1,500,000,000
1,473,350,200 1,473,350,200
100,000,000 1,600,000,000.00
1,473,350,200
LIST OF SHAREHOLDERS HOLDING MORE THAN 0.5% OF SHARE CAPITAL

S. No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 NAME IME Investment Pvt. Ltd. Harihar Dhungana Basant Raj Adhikari World Wide Investment Pvt. Ltd. Usha Investment Pvt. Ltd. Sandeep Agarwal Bimala Ojha Prabhu Investment P. Ltd. Dhan Bahadur Sherchan Suraj Kumar Shrestha Continental Investment Pvt. Ltd. Jagdish Ghimire Rajesh Upadhyay Sumit Kumar Agarwal Sushil Kumar Panta Homeland Developers Pvt. Ltd. Nimisha Investment Pvt Ltd. Suhrada Raj Ghimire Total PREVIOUS YEAR AMOUNT (in NPR) 157,620,600 10,110,300 10,110,300 139,339,600 137,115,300 50,658,000 37,993,500 75,519,600 9,390,700 41,735,100 112,401,000 23,626,200 10,110,300 88,651,500 25,329,000 75,987,000 10,024,500 1,015,722,500 % 10.70 0.69 0.69 9.46 9.31 3.44 2.58 5.13 0.64 2.83 7.63 1.60 0.69 6.02 1.72 5.16 0.68 THIS YEAR AMOUNT (in NPR) 157,620,600 10,110,300 10,110,300 139,339,600 137,967,100 50,658,000 37,993,500 75,519,600 9,390,700 41,735,100 112,401,000 23,626,200 10,110,300 88,651,500 25,329,000 75,987,000 10,225,000 11,813,100 1,028,587,900 % 10.51 0.67 0.67 9.29 9.20 3.38 2.53 5.03 0.63 2.78 7.49 1.58 0.67 5.91 1.69 5.07 0.68 0.79
SHARE CAPITAL & OWNERSHIP
49
SHARE CAPITAL AND OWNERSHIP

As at Ashad 32, 2068 (16 July,2011)
Particulars 1. Local Ownership 1.1 Government of Nepal 1.2 A Class Liscensed Institutions 1.3 Other Liscensed Institutions 1.4 Other Entities 1.5 General Public 1.6 Others (Individual Promotors) 2. Foreign Ownership Total % 100.00 0% 0% 0% 46.7% 30.0% 23.3% 100% This Year (in NPR) 1,500,000,000 700,500,000 450,000,000 349,500,000 1,500,000,000 Previous Year (in NPR) 1,473,350,200 699,260,200 436,015,100 338,074,900 1,473,350,200 % 100.00 0% 0% 0% 47.5% 29.6% 22.9% 100%
As at Ashad 32, 2068 (16 July,2011)

Particulars 1. General Reserve Fund 2. Capital Reserve Fund 3. Capital Redemption Reserve 4. Capital Adjustment Fund 5. Other Reserves & Funds 5.1. Contingent Reserve 5.2. Institutional Development Fund 5.3. Dividend Equalization Fund 5.4. Special Reserve Fund 5.5. Assets Revaluation Reserve 5.6. Deferred Tax Reserve 5.7. Other Free Reserves 5.8. Other Reserve Fund 5.8.1 Investment Adjustment Reserve 5.8.2 Share Premium 7. Accumulated Prot/Loss 8. Exchange Fluctuation Fund Total This Year (in NPR) 77,103,934 0 0 0 0 0 0 0 0 0 13,593,640 0 0 300,000 0 267,669 16,762,122 108,027,365
RESERVES FUNDS
Schedule 2
Previous Year (in NPR) 32,108,384 300,000 1,336,206 13,927,105 47,671,695
DEBENTURES AND BONDS

As at Ashad 32, 2068 (16 July,2011)
Schedule 3
Particulars 1. .% Bond/Debentures of Rs..each Issued on and matured on . (Outstanding balance of Redemption Reserve Rs) 2. .% Bond/Debentures of Rs..each Issued on and matured on . (Outstanding balance of Redemption Reserve Rs) 3. .% Bond/Debentures of Rs..each Issued on and matured on . (Outstanding balance of Redemption Reserve Rs) Total (1+2+3)
This Year (in NPR) -
Previous Year (in NPR) -
50
BORROWINGS
As at Ashad 32, 2068 (16 July,2011)

Schedule 4
Particulars A. Local 1. Government of Nepal 2. Nepal Rastra Bank 3. Repo Obligations 4. Inter Bank and Financial Institutions 5. Other Organized Institutions 6. Others Total B. Foreign 1. Banks 2. Others Total Total (A+B)
This Year (in NPR) 400,000,000 1,789,148 401,789,148 401,789,148
Previous Year (in NPR) 236,800,000 50,000,000 286,800,000 52,360,000 52,360,000 339,160,000
DEPOSIT LIABILITY
As at Ashad 32, 2068 (16 July,2011)

Particulars 1. Non-Interest bearing accounts A. Current Deposits704,008,967 1. Local Currency 1.1 Government of Nepal 1.2 A Class Licensed Institutions 1.3 Other Licensed Institutions 1.4 Other Organized Institutions 1.5 Individuals 1.6 Others 2. Foreign Currency 2.1 Government of Nepal 2.2 A Class Licensed Institutions 2.3 Other Licensed Financial Institutions 2.4 Other Organized Institutions 2.5 Individuals 2.6 Others B. Margin Deposits 1. Employees Guarantee 2. Guarantee Margin 3. Margin on Letter of Credit 3. Others C. Others 1. Local Currency 1.1 Financial Institutions 1.2 Other Organized Institutions 1.3 Individual 2. Foreign Currency 2.1 Financial Institutions 2.2 Other Organized Institutions 2.3 Individual Total of Non-Interest Bearing Accounts This Year (in NPR) 512,013,644 580,497,233 513,684 7,867,083 459,011,431.81 86,094,883 27,010,151 123,511,734
Schedule 5
Previous Year (in NPR)
439,986,057 171,584 18,433,552 346,131,092 75,249,829 72,027,587
1,060,331 122,451,403 271,115,396 193,966,943 68,308,347 8,840,106 -
69,839,134 2,188,453 287,046,149 187,820,742 99,225,407 -
975,124,363
799,059,793
51
DEPOSIT LIABILITY
As at Ashad 32, 2068 (16 July,2011)

Particulars 2. Interest Bearing Accounts A. Saving Deposits 1. Local Currency 1.1 Organizations/ Institutions 1.2 Individual 1.3 Others 2. Foreign Currency 2.1 Organizations/ Institutions 2.2 Individual 2.3 Others B. Fixed Deposits 1. Local Currency 1.1 Organizations/ Institutions 1.2 Individual 1.3 Others 2. Foreign Currency 2.1 Organizations/ Institutions 2.2 Individual 2.3 Others C. Call Deposits 1. Local Currency 1.1 A Class Licensed Institutions 1.2 Other Licensed Financial Institutions 1.3 Other Organized Institutions 1.4 Individual 1.5 Others 2. Foreign Currency 2.1 A Class Licensed Institutions 2.2 Other Licensed Institutions 2.3 Other Organized Institutions 2.4 Individual 2.5 Others D. Certicate of Deposit 1. Organized Institution 2. Individual 3. Others Total of Interest Bearing Accounts Total Deposit (1+2) This Year (in NPR) 3,860,768,000 3,795,340,000 2,796,774 3,618,998,198 173,545,028 65,428,000 65,428,000 6,401,204,000 6,209,779,000 2,581,697,037 436,601,768 3,191,480,195 191,425,000 6,045,192 185,379,808 3,829,393,833 3,814,143,000 448,109,232 2,345,138,854 894,667,186 126,227,728 15,250,833
Schedule (5A)
Previous Year (in NPR) 4,353,317,872 4,288,388,376 127,951,957 4,160,436,419 64,929,496 890,234 64,039,262 6,206,616,459 5,901,631,775 3,079,482,401 2,822,149,374 304,984,684 80,584,684 224,400,000 3,672,554,223 3,653,336,970 3,785,723 375,526,499 2,653,876,009 620,148,739 19,217,253
21,424 15,229,409 14,091,365,833 15,066,490,196
16,705,426 2,511,827 14,232,488,554 15,031,548,347
BILLS PAYABLE
Particulars 1. Local Currency 2. Foreign Currency Total
As at Ashad 32, 2068 (16 July,2011)

Schedule 6
This Year (in NPR) 60,460,181 60,460,181
Previous Year (in NPR) 66,631,883 66,631,883
52
OTHER LIABILITIES
As at Ashad 32, 2068 (16 July,2011)

Schedule 7
Particulars 1. Pension/Gratuity Fund 2. Employees Provident Fund 3. Employees Welfare Fund 4. Provision for Staff Bonus 5. Interest Payable on Deposits 6. Interest Payable on Borrowings 7. Unearned Discount and Commission 8. Sundry Creditors 9. Branch Account 10. Deffered Tax Liabilities 11. Unpaid Dividend 12. Others (a) Audit Fee Payable (b) Provision for Leave Encashment (c) Others
This Year (in NPR) 12,089,132 26,029,007 61,517,281 1,788,742 2,866,905 83,608,640 197,750 17,580,930 205,678,387
Previous Year (in NPR) 6,168,252 14,928,133 30,974,216 4,812,940 2,020,706 101,246,477 8,474,972 169,500 168,795,196
CASH BALANCE
As at Ashad 32, 2068 (16 July,2011)

Particulars 1. Local Currency (Including Coins) 2. Foreign Currency Total This Year (in NPR) 513,707,001 8,976,707 522,683,708
Schedule 8
Previous Year (in NPR) 539,382,335 4,159,369 543,541,704
BALANCE WITH NEPAL RASTRA BANK

As at Ashad 32, 2068 (16 July,2011)
Particulars Local Currency 1. Nepal Rastra Bank 797,365,320 a. Current Account 797,365,320 b. Other Account Schedule 9
Foreign Currency (in NPR) INR Convertible FCY Total 11,399,585 11,399,585 11,399,585 11,399,585 -
This Year (in NPR) 808,764,905 808,764,905
Previous Year (in NPR) 945,041,257 945,041,257 -
Bank Balance as per NRB conrmation Rs. 820,043,892
53
BALANCE WITH BANKS/FINANCIAL INSTITUTIONS

As at Ashad 32, 2068 (16 July,2011)
Particulars This Year 1. Local Licensed Institutions a. Current Account b. Other Account 2. Foreign Banks a. Current Account b. Other Account Total
Schedule 10
Local Currency 146,311,646 146,311,646 146,311,646
Foreign Currency (in NPR) INR Convertible FCY 622,469 622,469 622,469 59,969,355 216,094,034 59,969,355 216,094,034 59,969,355 216,716,503
Total 622,469 146,934,115 276,063,389 276,063,389 276,685,858
(in NPR) 146,934,115 276,063,389 276,063,389 422,997,504
Previous Year (in NPR) 805,936,290 805,936,290 139,818,696 139,818,696 945,754,986
MONEY AT CALL AND SHORT NOTICE

As at Ashad 32, 2068 (16 July,2011)
PARTICULARS 1. Local Currency 2. Foreign Currency TOTAL
Schedule 11
THIS YEAR (IN NPR) -
PREVIOUS YEAR (IN NPR) -
INVESTMENTS
Particulars 1. 2. 3. 4. 5. 6. 7. 8. 9.
As at Ashad 32, 2068 (16 July,2011)

Schedule 12
Purpose Trading Other 1,319,455,301 740,000,000 717,816,960 116,981,670 17,500,000 8,493,000 2,920,246,931 2,920,246,931
This Year (in NPR) 1,319,455,301 740,000,000 717,816,960 116,981,670 17,500,000 8,493,000 2,920,246,931 2,920,246,931
Previous Year (in NPR) 1,211,998,850 740,000,000 292,495,517 17,500,000 8,493,000 2,270,487,367 2,270,487,367
Government of Nepal Treasury Bills Government of Nepal Saving Bonds Government of Nepal Other securities Nepal Rastra Bank Bonds Foreign Securities Local Licensed Institution Foreign Bank Placement Shares of Organized Institutions Bonds and Debentures of Organized Institutions 10. Other Investments Total Investment Provision Net Investment
54
INVESTMENT IN SHARES, DEBENTURES AND BONDS

As at Ashad 32, 2068 (16 July,2011)
Particulars 1. Investment in Shares 1.1 Nepal Clearing House Limited (25000 Ordinary Share of Rs.100 Paid up) 1.2 First Micronance Development Bank Ltd. (150000 Ordinary Share of Rs.100 Paid up) 2. Investment in Debentures and Bonds 2.1 NEA Bond (Listed on Stock exchange) Total Investment 3. Provision for Loss 3.1 Up to previous year 3.2 Increase/Decrease this year Total Provision
Schedule 12A
This Year (in NPR) (in NPR) Cost Price Market Price Provision 17,500,000 2,500,000 15,000,000 8,493,000 8,493,000 25,993,000 -
Previous Year 17,500,000 2,500,000 15,000,000 8,493,000 8,493,000 25,993,000 -
INVESTMENT CATEGORIZED AS HELD FOR TRADING

As at Ashad 32, 2068 (16 July,2011)
Particulars
Schedule 12.1
Cost Price of Previous
Market price Market Period (A)
1. 2. 3. 4. 5. 6. 7.
Government of Nepal Treasury Bills Government of Nepal Saving Bonds Government of Nepal Other securities Nepal Rastra Bank Bonds Foreign Securities Local Licensed Institution's Share Local Licensed Institution's Debenture and Bonds 8. Share, Bonds and Debentures of Local Organized Institutions 9. Foreign Bank Placement 10. Interbank Lending 11. Other Investments Total Investment
Current year Price (B) ( Loss) (B-A) -
Current years ncome/ ( Loss) -
Previous income/
Remarks
55
INVESTMENT CATEGORIZED AS HELD TO MATURITY

As at Ashad 32, 2068 (16 July,2011)
Schedule 12.2
Particulars
Cost Price (A) 1. 2. 3. 4. 5. 6. 7. Government of Nepal Treasury Bills 1,319,455,301 Government of Nepal Saving Bonds 740,000,000 Government of Nepal Other securities Nepal Rastra Bank Bonds Foreign Securities Local Licensed Institution's Share Local Licensed Institution's Debenture and Bonds 8. Share, Bonds and Debentures 8,493,000 of Local Organized Institutions 9. Foreign Bank Placement 116,981,670 10. Other Investments 717,816,960 Total Investment 2,902,746,931
Loss upto the Current Period (B)
Loss of Current Period (C) -
Current years income / (Loss) (A-B-C) -
Previous years income /Loss) -
Remarks
Local Bank Placement -
INVESTMENT CATEGORIZED AS AVAILABLE FOR SALE

As at Ashad 32, 2068 (16 July,2011)
Particulars
Schedule 12.3
Government of Nepal Treasury Bills Government of Nepal Saving Bonds Government of Nepal Other securities Nepal Rastra Bank Bonds Foreign Securities Local Licensed Institution's Share Local Licensed Institution's Debenture and Bonds 8. Share, Bonds and Debentures of Local Organized Institutions 9. Foreign Bank Placement 10. Other Investments Total Investment
1. 2. 3. 4. 5. 6. 7.
Market Price of Previous Year Cost Price Period (A) 17,500,000 17,500,000 -
Current Market Price (B) -
Current Year Fund Adjustment (B-A) -
Previous years income/ ( Loss) -
Remarks
56
CLASSIFICATION OF LOANS, ADVANCES AND BILLS PURCHASED & PROVISIONING

Schedule 13
As at Ashad 32, 2068 (16 July,2011)

Loans & Advances Domestic Deprived Sector Insured 29,951,750 373,450,841 12,388,427,305 12,761,878,146 17,297,000 226,058,510 226,058,510 38,898,726 38,898,726 17,297,000 29,951,750 33,386,741 373,192,197 -
Bills Purchased/Discounted Total NPR) 12,457,392,751 12,457,392,751 321,782,395 29,951,750 26,873,409 38,898,726 226,058,510 12,779,175,146 17,874,667 43,775,000 41,546,105 12,163,635,545 12,440,095,751 12,440,095,751 321,782,395 29,951,750 26,873,409 17,297,000 17,297,000 17,297,000 17,297,000 Domestic Foreign Total This Year (in Previous Year (in NPR) 12,060,439,773 12,060,439,773 103,195,772
Particulars Uninsured 343,499,091 343,499,091 29,951,750 26,873,409 291,830,645 2,096,596,660 12,096,596,660 Other Foreign
1. Performing Loan
1.1 Pass
2.
Non-Performing Loan
2.1 Restructured/Rescheduled *
2.2 Sub-Standard
2.3 Doubtful
2.4 Bad
A. Total Loan
3. Loan Loss Provision 3,434,991 6,718,352 19,449,368 226,058,510 406,578,938 226,058,510 19,449,368 6,718,352 172,970
3.1 Pass 29,951,750 -
120,965,967
124,400,958
172,970
172,970 172,970 -
124,573,928 29,951,750 6,718,352 19,449,368 226,058,510

406,751,908
120,304,880 14,975,875 4,468,667 21,887,500 41,546,105 203,183,027
3.2 Restructured
3.3 Sub-Standard
3.4 Doubtful
3.5 Bad
B. Total Provisioning
4. Provisioning up to Previous Year 340,064,100 15,274,076 15,274,076 18,112,665 184,819,491 48,802,027 237,174,733 188,372,706 12,015,235,108 41,546,105 21,887,500 4,468,667 14,975,875 3,136,790 116,917,219 120,054,009 14,975,875 4,468,667 21,887,500 41,546,105 202,932,156 48,802,027 252,448,809 203,646,782 12,355,299,208 223,280 223,280 (50,310) (50,310) 17,124,030 27,591 27,591 (27,591) (27,591) -
4.1 Pass
250,871 250,871 (77,901) (77,901) 17,124,030
120,304,880 14,975,875 4,468,667 21,887,500 41,546,105 203,183,027 48,802,027 252,370,908 203,568,881 12,372,423,238
91,512,036 3,400,000 1,795,000 96,707,036 106,475,991 106,475,991 11,960,452,518
4.2 Restructured
4.3 Sub-Standard
4.4 Doubtful
4.5 Bad
C. Total Provisions up to Previous Year
D. Written Back from Last year
E. Addition this year
Changes this year
Net Loan (A-B)
57
* Last year restructurecd/rescheduled loan was on Pass loan category hence while presenting this amount in P.Y column it has been put under Pass category
LOANS, ADVANCES AND BILLS PURCHASED SECURITY WISE

As at Ashad 32, 2068 (16 July,2011)
Schedule 13 A
Particulars This Year (in NPR) A. Secured 12,779,175,145 1. Movable/Immovable Assets 12,375,865,068 2. Guarantee of Local Licensed Institutions 3. Government Guarantee 91,598,000 4. Internationally Rated Bank Guarantee 5. Export Documents 6. Fixed Deposit Receipts a. Own Fixed Deposit Receipts 84,477,243 b. Fixed Deposit Receipts of Other Licensed Institutions 7. Government Securities 8. Counter Guarantee 9. Personal Guarantee 10. Other Securities 227,234,834 B. Unsecured Total 12,779,175,145
Previous Year (in NPR) 12,163,635,544 11,906,135,063 91,598,000
2,036,133 24,401,000
139,465,348 12,163,635,544
58
FIXED ASSETS
As at Ashad 32, 2068 (16 July,2011)

Schedule 14
Particulars Building Vehicles ASSETS Machinery Ofce Equipment Others
This Year (in NPR)
Previous Year (in NPR) 191,257,124 79,709,119 8,034,398 262,931,845
16,901,286 10,125,065 (1,755,037) 69,718,148 69,718,148 46,970,677 25,271,314 46,970,677 23,883,275 32,057,578 32,057,578 60,992,744 82,833,250 82,833,250 13,395,469 10,487,806 37,189,472 23,803,272
72,052,788 5,630,000 (5,440,797) 72,241,991
54,360,613 1,580,240 55,940,853
136,518,444 7,307,550 143,825,994
262,931,845 14,517,790 (5,440,797) 272,008,838 67,486,227 44,416,143 (1,755,037) 110,147,333 161,861,505 69,718,148 231,579,653
1. Cost Price a. Previous Year balance b. Addition during the year c. Revaluation/Written Back this year d. Sold during the year e. Written off during the year Total Cost (a+b+c-d-e) 2. Depreciation a. Up to previous year b. For this year c. Depreciation on revaluation/Written Back d. Depreciation on Sold Assets
32,954,794 37,543,382 (3,011,949)
Total Depreciation 3. Book Value (WDV*) (1-2) 4. Land 5. Capital Construction (pending Capitalization) 6. Leasehold Assets Total (3+4+5+6)
67,486,227 195,445,618 88,954,441 284,400,059
59
NON BANKING ASSETS

Previous Year (in NPR) A-
As at Ashad 32, 2068 (16 July,2011)

Schedule 15
Name & Address of Borrower or Party
Date of assuming Non Banking Assets
Total Non Loss Provision Banking Assets (in NPR) % in NPR
Grand Total
Net Non Banking Banking Assets(in NPR) -
OTHER ASSETS
As at Ashad 32, 2068 (16 July,2011)

Schedule 16
Particulars 1. Stationary Stock 2. Income Receivable on Investment 3. Accrued Interest on Loan 64,698,293 Less: Interest Suspense Account (64,698,293) 4. Commission Receivable 5. Sundry Debtors 6. Staff Loan & Advances 7. Pre Payments 8. Cash in Transit 9. Other Transit items (including Cheques) 10. Drafts Paid Without Notice 11. Expenses not Written Off 12. Branch Account Reconciliation 13. Deffered Tax Assets 14. Others a. Goodwill b. Deferred Software Expenses (to the extent not written off) c. Advance Corporate Tax d. Accounts Receivable 560,280 Less: Provision for Possible Loss (560,280) e. Bond premium f. Deposit for Telophone & Miscllaneous Total
This Year (in NPR) 2,063,845 21,211,792 23,164,446 101,996,516 15,846,527 13,593,640 66,135,730 24,860,665 14,880,748 25,746,216 648,101 244,012,496
Previous Year (in NPR) 5,264,218 27,757,758 26,547,986 (26,547,986) 38,814,046 88,833,436 16,022,616 75,045,521 32,181,816 7,806,778 117,443,231 (117,443,231) 30,990,456 4,066,471 251,737,595
60
OTHER ASSETS (ADDITIONAL STATEMENT)

As at Ashad 32, 2068 (16 July,2011)
Previous Year (in NPR) 26,547,986 Particulars 1. 2. 3. 4.
Schedule 16 A
This Year (in NPR) Up to 1 Year Accrued Interest on Loan 61,168,687 Drafts Paid without notice Branch Account Local & Foreign Agency Accounts -
Previous Year (in NPR) 1 to 3 Year 3,529,606 Above 3 Years Total 64,698,293 26,547,986 -
CONTINGENT LIABILITIES
As at Ashad 32, 2068 (16 July,2011)
Schedule 17
Particulars 1. Claims on institution not accepted by the Institution 2. Letter of Credit (Full Amount) a. Less than 6 months maturity b. More than 6 months maturity 3. Rediscounted Bills 4. Unmatured Guarantees/Bonds a. Bid Bonds b. Performance Bonds c. Other Guarantee/Bonds 5. Unpaid Shares in Investment 6. Outstanding Liabilities on Forward Exchange Contract 7. Bills under Collection 8. Acceptance & Endorsement 9. Underwriting Commitment 10. Irrevocable Loan Commitment 11. Guarantees issued against Counter Guarantee of Internationally Rated Banks 12. Advance Payment Guarantee 13. Financial Guarantee 14. Contingent Liabilities on Income Tax 15. Others (sale of loan) Total
This Year (in NPR) 825,614,510 662,417,076 163,197,434 2,354,963,403 710,273,817 1,644,689,586
Previous Year (in NPR) 1,195,195,521 1,067,310,504 127,885,017 1,818,921,555 605,734,286 1,213,187,269
30,818,485 202,496,065 647,493,716
41,497,602 327,080,382 917,693,430
820,510,220
582,475,213
4,881,896,399
4,882,863,703
61
INTEREST INCOME
Schedule 18
Particulars A. On Loans, Advances and Overdraft 1. Loans & Advances 2. Overdraft B. On Investment 1. Government of Nepal Securities a. Treasury Bills b. Development Bonds c. National Saving Certicates 2. Foreign Securities a. b. 3. Nepal Rastra Bank Bonds 4. Debentures & Bonds a. Financial Institutions b. Other Institutions 5. Interbank Investment a. Bank/Financial Institutions b. Other Institutions C. On Agency Balances 1. Local Banks / Financial Institutions 2. Foreign Banks D. On Money at Call and Short Notice1. Local Banks/Financial Institutions 2. Foreign Banks E. On Others 1. Certicate of Deposits 2. Inter-Bank / Financial Institutional Loan 3. Others a. FCY placements b. Staff Loan Total
This Year (in NPR) 1,748,626,359 1,136,218,019 612,408,340 191,385,660 181,926,662 121,487,341 60,439,321 748,373 748,373 8,710,625 8,710,625 21,544,300 21,527,530 16,770 2,047,438 2,047,438 771,806 1,275,632 1,963,603,757
Previous Year (in NPR) 1,324,319,417 870,982,188 453,337,229 114,112,048 99,307,083 55,620,552 43,686,531 658,207 658,207 14,146,758 14,146,758 2,847,355 2,847,355 19,208,849 19,208,849 4,490,021 4,490,021 2,873,869 1,616,152 1,464,977,690
62
INTEREST EXPENSES
For the period from 1st Sharawan 2067 to Ashad 32, 2068 (17 July 2010 to July 16, 2011)
Schedule 19
Particulars A. ON DEPOSIT LIABILITIES 1. Fixed Deposits 1.1 Local Currency 1.2 Foreign Currency 2. Saving Deposits 2.1 Local Currency 2.2 Foreign Currency 3. Call Deposits 3.1 Local Currency 3.2 Foreign Currency 4. Certicate of Deposits B. ON BORROWINGS 1. Debentures & Bonds 2. Loan from Nepal Rastra Bank 3. Inter Bank /Financial Institutions Borrowing 4. Other Organized Institutions 5. Other Loans C. ON OTHERS 1. 2. Total
This Year (in NPR) 1,243,381,644 493,557,365 493,457,477 99,888 494,901,144 494,901,144 254,923,135 254,919,540 3,595 44,669,231 32,313,062 12,356,169 1,288,050,875
Previous Year (in NPR) 895,008,862 520,177,983 512,556,132 7,621,851 220,802,004 219,705,331 1,096,673 154,028,875 152,846,880 1,181,995 67,001,004 40,936,185 26,064,819 962,009,866
COMMISSION AND DISCOUNT INCOME

Particulars A. Bills Purchased & Discount 1. Local 2. Foreign B. Commission 1. Letters of Credit 2. Guarantees 3. Collection Fees 4. Remittance Fees 5. Credit Card 6. Share Underwriting/Issue 7. Government Transactions 8. E.Pra. Commission 9. Exchange Fee C. Others Total
Schedule 20
This Year (in NPR) 707,992 707,992 65,841,580 18,841,933 37,515,413 40,025 9,444,209 968,444 67,518,016
Previous Year (in NPR) 8,390,614 8,390,614 46,227,880 14,835,444 20,925,426 67,270 10,399,740 54,618,494
63
OTHER OPERATING INCOME

Particulars 1. Safe Deposit Lockers Rental 2. Issue & Renewals of Credit Cards 3. Issue & Renewals of ATM Cards 4. Telex / T. T. 5. Service Charges (Loan Processing Fees) 6. Renewal Fees 7. Others Total
Schedule 21
This Year (in NPR) 1,226,550 9,714,097 34,163,290 2,671,971 17,879,279 9,832,995 9,491,196 84,979,378
Previous Year (in NPR) 868,450 1,092,988 20,546,388 2,496,578 42,708,372.00 2,511,175 5,264,412 75,488,363
EXCHANGE GAIN/LOSS
Schedule 22
Particulars a. Revaluation Gain (Loss) b. Trading Gain (except Exchange Fees) Total Income (Loss)
This Year (in NPR) 11,340,069 19,596,251 30,936,320
EMPLOYEES EXPENSES
Schedule 23
Particulars 1. Salary 2. Allowances 3. Contribution to Provident Fund 4. Training Expenses 5. Uniform 6. Medical Expenses 7. Insurance 7.1 Staff medical Insurance 7.2 Staff Accidental Insurance 7.3 Other Inurnace 8. Pension and Gratuity 9. Others 9.1 Leave encashment Expenses 9.2 Others Total
This Year (in NPR) 65,751,920 54,507,472 6,575,192 1,254,959 1,848,753 561,241 6,219,220 18,183,654 101,174 155,003,585
Previous Year (in NPR) 46,700,590 40,291,991 4,670,059 1,135,620 916,586 1,301,511 451,700 2,567,366 221,706 1,999,422 100,256,551
64
OTHER OPERATING EXPENSES

Particulars 1. House Rent 2. Light, Electricity & Water 3. Repair & Maintenance a Building b. Vehicles c. Others 4. Insurance 5. Postage, Telex, Telephone & Fax 6. Ofce Equipment, Furniture and Repair 7. Travelling Allowances & Expenses 8. Printing & Stationery 9. Books & Periodicals 10. Advertisements 11. Legal Expenses 12. Donations 13. Expenses relating to Board of Directors a. Meeting Fees b. Other Expenses 14. Annual General Meeting Expenses 15. Expenses relating to Audit a. Audit Fees b. Other Expenses 16. Commission on Remittances 17. Depreciation on Fixed Assets 18. Amortization of Pre-operating Expenses 19. Share Issue Expenses 20. Technical Services Fee Reimbursement 21. Entertainment Expenses 22. Written Off Expenses 23. Security Expenses 24. Credit Guarantee Premium 25. Commission & Discount 26. Others (a) Subscription & Membership (b) Computer Software Expenses (c) Lease Hold Assets Amortisation (d) Bank Charges (e) Business Promotion/Customers Relation (f) Card expenses General Card Expenses Amortization of SCT card Software g) Digital Certicate h) Fuel i) Ofce goods & Supply j) Pantry Expenses k) Transportation l) Cleaning & Gardening m) Fees & Taxes n) ATS/AMC Expenses o) Others Total
Schedule 24
This Year (in NPR) 37,728,505 6,927,368 6,286,506 1,401,699 4,884,807 3,082,692 11,823,050 4,721,874 14,917,997 263,816 4,977,460 7,878,965 65,259 1,155,655 575,000 580,655 396,597 833,006 197,750 635,256 44,416,143 88,331 331,500 418,520 13,117,534 77,933,421 1,490,872 10,234,912 24,004,165 3,838,024 4,046,150 1,239,104 999,563 239,541 281,370 10,589,773 580,726 1,390,348 844,415 3,466,656 1,187,310 12,112,250 2,627,346 237,364,199
Previous Year (in NPR) 33,228,666 6,762,194 3,902,649 831,089 3,071,560 2,669,709 14,067,391 4,306,957 7,721,269 214,572 8,725,185 888,921 71,206 820,759 626,000 194,759 483,672 481,602 169,500 312,102 442,480 37,543,382 755,019 1,456,629 14,410,346 70,393,474 4,540,784 9,280,279 18,714,436 1,437,510 3,635,365 13,872,522 13,633,354 239,168 297,505 9128901 838,038 1,405,204 292,696 2,851,784 787,248 3,030,814 280,388 209,346,082 Annual Report 2010/11
65
PROVISION FOR POSSIBLE LOSSES

Particulars 1. Increase in Loan Loss Provision 2. Increase in Provision for Loss on Investment 3. Provision Against Non-Banking Assets 4. Provision Against Other Assets Total
Schedule 25
This Year (in NPR) 252,370,908
560,280 252,931,188
NON-OPERATING INCOME / (LOSS)

Particulars 1. Prot (Loss) on Sale of Investments 2. Prot (Loss) on Sale of Assets 3. Dividend 4. Subsidies received from Nepal Rastra Bank a. Reimbursement of losses of specied branches b. Interest Compensation c. Exchange Counter 5. Others a. b. c. Total Non-Operating Income (Loss)
Schedule 26
This Year (in NPR) (132,689) (132,689)
Previous Year (in NPR) 440,325 440,325
PROVISION FOR POSSIBLE LOSS WRITTEN BACK

Particulars 1. Loan Loss Provision Written Back 2. Provision against Non Banking Assets Written Back 3. Investment Provision Written Back 4. Provision against other Assets Written Back Total
Schedule 27
This Year (in NPR) 48,802,027
117,443,231 166,245,258
66
PROFIT/LOSS FROM EXTRA - ORDINARY ACTIVITIES

Particulars 1. Recovery of Written off Loans 2. Voluntary Retirement Scheme Expenses 3. Loan Write -Offs {4.28 (a)} 4. Other Expenses/Income 5. Accounts Receivable Write Off Total
Schedule 28
This Year (in NPR) 48,802,027 44,679,088 93,481,115
STATEMENT OF LOAN WRITTEN-OFF

S.No Types of Loan Written off amount (NPR) 1 Working Capital Loan 34,700,000 Types of Security& Amount
Schedule 28A
Basis of valuation of collateral
Name/ Designation Initiations made of Loan Approver for recovery of loan Call back notice notice, blacklisting, other follow ups etc.
Remarks
Regd. Mortgage of land & building Dv: Rs. 49.46 Mio, personal guarantees, corporate guarantees
Distress Value BCC / AGM
Recovery process
published, auction haulted by CIAA
2 3 4 5 5.1
Project Loan Fixed Capital Loan Personal loan Other Loan Guarantee Invocation
14,102,027 Personal guarantee NA CEO Call back notice published, blacklisting,other follow ups etc. Manpower Guaratees claim paid and booked in Loan after setting of Margin Margin Deposit
Total Loan
48,802,027
67
68
Schedule 29
STATEMENT OF LOANS AND ADVANCES TO DIRECTORS/CHIEF EXECUTIVE / PROMOTERS / EMPLOYEES AND SHAREHOLDERS
Name of Promoter/Director/ Outstanding up to Last Year Recovered in Current YearAdditional Lending Outstanding as of Ashad end 2068 Chief Executive Principal Interest Principal Interest in this year Principal Interest A. Directors 1. 2. ... 3. B. Chief Executive 1. ..................... 2. ......................... C. Promoters 1. 2. 3. D. Employees 1. 2. 3. E. Shareholders 1. 2. 3. 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.
CAPITAL ADEQUACY TABLE
For The Period Ended On Ashad End 2068 (16th July, 2011)
Schedule 30(A1)
1. 1 RISK WEIGHTED EXPOSURES a Risk Weighted Exposure for Credit Risk b Risk Weighted Exposure for Operational Risk c Risk Weighted Exposure for Market Risk Total Risk Weighted Exposures (a+b+c) Adjustments under Pillar II a Add: ...% of the total RWE due to non compliance to Disclosure Requirement (6.4 a 10) b Add: ... % of the total deposit due to insufcient Liquid Assets(6.4 a 6)" c Add: 2% of the total RWE as per NRB directives (6.4 a 9) d Add: additional capital charge of 2% of Gross Income as per NRB directives (6.4 a 7) Total Risk Weighted Exposures (After Bank's Adjustments of Pillar II) 1.2 CAPITAL Core Capital (Tier 1) a Paid up Equity Share Capital* b Irredeemable Non-cumulative preference shares c Share Premimum d Proposed Bonus Equity Shares e Statutory General Reserves f Retained Earnings g Un-audited current year cumulative prot h Capital Redemption Reserve i Capital Adjustment Reserve j Dividend Equalization Reserves k Other Free Reserve l Less: Goodwill m Less: Miscellaneous Expendiature not Written Off n Less: Investment in equity in licensed Financial Institutions o Less: Investment in equity of institutions with Financial Interest p Less: Investment in equity of institutions in excess of limits q Less: Investments arising out of underwriting commitments r Less: Reciprocal crossholdings s Less: Other Deductions Adjustments under Pillar II Less: Shortfall in Provision (6.4 a 1) Less: Loans and Facilities extended to Related Parties and Restricted lending (6.4 a 2) Supplementary Capital (Tier 2) a Cumulative and/or Redeemable Preference Share b Subordinated Term Debt c Hybrid Capital Instruments d General loan loss provision e Exchange Equaliazation Reserve f Investment Adjustment Reserve g Assets Revaluation Reserve h Other Reserves i Less: Supervisory Adjustments a. Provision for Restructured Loan b. GLLP over 1.25% over Total RWE Total Capital Fund (Tier I and Tier II) 1.3 CAPITAL ADEQUACY RATIOS Tier 1 Capital to Total Risk Weighted Exposures Tier 1 and Tier 2 Capital to Total Risk Weighted Exposures
Current Year (Rs.) 15,284,117 614,460 54,375 15,952,952 -
Rs. In 000 Previous Year (Rs.) 14,588,069 285,886 35,299 14,909,253 -
319,059 171,797 16,443,808 Current Year (Rs.) 1,667,815 1,500,000
149,093 15,058,346 Previous Year (Rs.) 1,506,795 1,473,350
100,000 77,104 268 -
32,108 1,336 -
(9,557) 155,230 134,532
124,574 16,762 300 13,594 -
120,305 13,927 300
1,823,045 Current Year (Rs.) 10.14% 11.09%
1,641,327 Previous Year (Rs.) 10.01% 10.90%
69
RISK WEIGHTED EXPOSURE FOR CREDIT RISK

Schedule 30(B)
For The Period Ended On Ashad 2068 (16th July, 2011)

Ashad End 2068 Book Value Provision a
522,684 808,765 2,067,948 91,598 139,195 773,177 343,475 355,716 23,559 13,771 6,155,525 20,276 2,262,093 505,688 11,171 2,194,750 310,611 856,643 17,500 447,118 17,900,987 282,178 282,178 19,000 114,429 75,153 23,559 13,771 6,135,249 2,186,940 505,688 11,171 2,194,750 28,433 837,643 17,500 447,118 17,504,380 355,716 343,475 773,177 139,195 100% 150% 20% 100% 20% 50% 100% 150% 20% 100% 20% 50% 100% 150% 75% 100% 60% 150% 100% 100% 150% 150% 100% 150% 100% 50% 20% 100% 208,793 154,635 343,475 71,143 23,559 2,754 6,135,249 1,640,205 303,413 11,171 2,194,750 42,650 1,256,465 26,250 447,118 12,861,630 0% 150% 100% 50% 20% 0% 169,431 966,509 61,508 386,611 28,340 17,362 5,752,720 2,133,491 515,478 2,230,868 17,875 880,056 17,500 536,138 17,254,561 0% 0% 91,598 0% 91,598 2,067,948 0% 1,960,492 254,147 193,302 61,508 77,322 28,340 3,472 5,752,720 1,600,118 309,287 2,230,868 26,812 1,320,084 26,250 536,138 12,420,369 808,765 0% 945,041 522,684 0% 543,542 -
70
Ashad end 2067 Net Value Risk Weighted Exposures Exposures c d=a-b-c e f=d*e Specic CRM b Eligible Net Value Risk Weight Risk Weighted
Assets
A.Balance Sheet Exposures
Cash Balance
Balance With Nepal Rastra Bank
Gold
Investment in Nepalese Government Securities
All other Claims on Government of Nepal
Investment in Nepal Rastra Bank securities
All other claims on Nepal Rastra Bank
Claims on Foreign Government & Central Bank (ECA 0-1)
Claims on Foreign Government & Central Bank (ECA -2)
Claims on Foreign Government & Central Bank (ECA -4-6)
Claims On BIS, IMF, ECB, EC and on Multilateral Development Banks
(MDB,s) reconized by Framework
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 7) (All Domestic PSE)
Claims on domestic banks that meet capital adequacy req
Claims on Domestic banks that do not meet capital adeq req
Claims on foreign bank (ECA Rating 0-1)
Claims on foreign bank (ECA Rating 2)
Claims on Foreign Bank Incorporated in SAARC region operating with
a buffer of 1% above their respective regualatory capital requirement
Claims on Domestic Corporates
Claims on Foreign Corporates (ECA Rating 0-1)
Claims on Foreign Corporates (ECA Rating 2)
Claims on Foreign Corporates (ECA 7)
Regulatory Retail Portfolio (Not Overdue)
Claims fullling all criterion of regulatory retail except granularity
Claims secured by residential properties (with condition)
Claims secured by residential properties (without condition)
Claims secured by residential properties (Overdue)
Claims secured by Commercial real estate
Past due claims (except for claim se cured by residential prop.)
High Risk claims (Venture capital, private equity, etc.)
Investments in equity of institutions listed in the stock exchange
Investments in equity of institutions not listed in the stock exchange
Other Assets (as per attachment)
TOTAL
Schedule 30(B)
Assets Gross Book Value a

30,818 662,417 163,197 2,354,963 820,510 202,496 647,476 18 4,881,895 22,782,882 282,178 274,030 388,459 202,496 647,476 18 4,607,865 22,112,245 10,129 810,381 150% 50% 100% 100% 100% 100% 100% 200% 20% 50% 100% 200% 100% 50% 20% 183,838 2,171,125 50% 150% 100% 1,085,563 810,381 202,496 129,495 9 2,422,487 15,284,117 22,782,882 282,178 388,459 22,112,245 15,284,117 21,859,458 4,604,898 21,859,458 2,167,700 14,588,069 14,588,069 50% 20% 11,755 151,442 50% 75,721 150% 127,885.02 1,646,229.56 575,324.61 327,080.38 914,820.49 2,872.94 100% 50% 20% 68,308 594,109 20% 118,822 969,187.02 10% 30,818 0% 41,497.60 193,837 63,943 823,115 575,325 327,080 182,964 1,436 -
Ashad end 2068 Specic Provision b c d=a-b-c e f=d*e CRM Exposures Exposures Eligible Net Value Risk Weight Risk Weighted Net Value Risk Weighted
Ashad end 2067
B. Off Balance Sheet Exposures
Bills Under Collection
Forward Exchage Contracts
LC Comm. With Original Maturity Up to 6 mon (Domestic)
ECA Rating 0-1
ECA Rating 2
ECA Rating 3-6
ECA Rating 7
LC Comm. With Original Maturity Over 6 months (Domestic)
ECA Rating 0-1
ECA Rating 2
ECA Rating 3-6
ECA Rating 7
Bid Bond and Performance Bond (domestic)
ECA Rating 0-1
ECA Rating 2
ECA Rating 3-6
ECA Rating 7
Underwriting commitments
Lending of Banks Securities or Posting of Sec. As coll
Repurchase Agreements, Assets sale with recourse
Advance Payment Guarantee
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
TOTAL (B)
Total RWE for credit Risk (A) +(B)
Adjustments under Pillar II
Add: 10% of the loan and facilities in excess of Single
Obligor Limits(6.4 a 3) 0
Add: 1% of the contract(sale) value in case of the sale
of credit with recourse (6.4 a 4)
Total RWE for credit Risk (After Banks adjustments of Pillar II
71
ELIGIBLE CREDIT RISK MITIGANTS

Schedule 30(c)
72
Deposits with Bank banks/FI (a) (b) (c) (d) (e) (f) (g) (h) (I) Securities Nepal Sovereigns banks Banks with other NRB Govt. of Other domestic MDBs Foreign Deposits Gold Govt.& G'tee of Sec/G'tee of G'tee of G'tee of Sec/G'tee of Total 20,275,583 20,275,583 75,152,913 75,152,913 19,000,000 19,000,000 114,428,496 114,428,496
Credit exposures
Balance Sheet Exposures
Cash Balance
Balance With Nepal Rastra Bank
Investment in Nepalese Government Securities
All other Claims on Government of Nepal
Investment in Nepal Rastra Bank securities
All other claims on Nepal Rastra Bank
Claims on Foreign Government & Central Bank (ECA 0-1)
Claims on Foreign Government & Central Bank (ECA -4-6)
Claims On BIS, IMF, ECB, EC and on Multilateral
Development Banks (MDB,s) reconized by Framework
Claims on Other Multilateral Development Banks
Claims on domestic banks that meet capital adeq req
Claims on domestic banks that do not meet cap ade req
Claims on Foreign Bank Incorporated in SAARC region
operating with a buffer of 1% above their respective
regualatory capital requirement
Claims on Domestic Corporates
Claims on Foreign Corporates (ECA Rating 2)
Claims on Foreign Corporates (ECA 7)
Regulatory Retail Portfolio (Not Overdue)
Claims fullling all criterion of regulatory retail except granularity
Claims secured by residential properties (with condition)
Claims secured by residential properties (without condition)
Claims secured by residential properties (Overdue)
Claims secured by Commercial real estate
Past due claims (except for claim secured by residential prop.)
High Risk claims (Venture capital, private equity, etc.)
Investments in equity of institutions listed in the stock exchange
Investments in equity of institutions not listed in the stock exchange
Other Assets (as per attachment)
Total
Credit exposures with Bank banks/FI (a) (b) (c) (d) (e) (f) (g) (h) (I) Securities Nepal Sovereigns banks Banks with other NRB Govt. of Other domestic MDBs Foreign
Deposits
Deposits
Gold
Govt.&
G'tee of
Sec/G'tee of
G'tee of
G'tee of
Sec/G'tee of
T otal
Off Balance Sheet Exposures
Revocable Commitments
Bills Under Collection 68,308,347 68,308,347 11,754,660 11,754,660 183,837,943 183,837,943 10,129,000 10,129,000 -
Forward Exchange Contrract Liabilities
LC Commitments With Original Maturity Up to 6
months (domestic)
ECA Rating 0-1
ECA Rating 2
ECA Rating 3-6
ECA Rating 7
LC Commitments With Original Maturity Over 6
months (domestic)
ECA Rating 0-1
ECA Rating 2
ECA Rating 3-6
ECA Rating 7
Bid Bond and Performance Bond and counter
guarantee (domestic)
ECA Rating 0-1
ECA Rating 2
ECA Rating 3-6
ECA Rating 7
Underwriting commitments
Lending of Bank's Securities or Posting of
Securities as collateral
Repurchase Agreements, Assets sale with
recourse (including repo/ reverse repo)
Advance Payment Guarantee
Financial Guarantee
Acceptances and Endorsements
Unpaid portion of Partly paid shares and Securities
Irrevocable Credit commitments (Short T erm)
Irrevocable Credit commitments (Long T erm)
Claims on Foreign Bank Incorporated in SAARC

274,029,950 -
region operating with a buffer of 1% above their 274,029,950
respective regualatory capital requirement
Other Contingent Liabilities
73
T otal
RISK WEIGHTED EXPOSURE FOR OPERATIONAL RISK

Schedule 30(D)
Particulars Net Interest Income Commission and Discount Income Other Operating Income Exchange Fluctuation Income Additional Interest Suspense during the period Gross income (a) Alfa (b) Fixed Percentage of Gross Income [c=(ab)] Capital Requirement for operational risk (d) (average of c) Risk Weight (reciprocal of capital requirement of 10%) in times (e) Equivalent Risk Weight Exposure [f=(de)] PILLAR-II ADJUSTMENTS If Gross Income for all the last three years is negative(6.4a 8) Total Credit and Investment (net of Specic Provision) Capital Requirement for operational risk (5%) Risk Weight (reciprocal of capital requirement of 10%) in times Equivalent Risk Weight Exposure [g] Equivalent Risk Weight Exposure [h=f+g)]
Year 1 138,964 18,991 9,670 26,541 2,486 196,652 15% 29,498 61,446 10 614,460
Year 2 224,150 46,019 33,841 30,210 3,061 337,281 15% 50,592
Year 3 502,968 54,618 75,488 35,363 26,548 694,985 15% 104,248
614,460
RISK WEIGHTED EXPOSURE FOR MARKET RISK

S.No. Currency
Open Position (FCY)
Schedule 30(E)
in thousand 1 INR 38,101.00 2 AED 23.00 3 MYR 37.00 4 SAR 50.00 5 CHF 1.00 6 THB 93.00 7 KRW 8 CAD 9 EUR 6.00 10 SGD 28.00 11 SEK 12 CNY 13 USD 545.00 14 QAR 15 HKD 2.00 16 DKK 17 AUD 25.00 18 GBP 14.00 19 JPY 721.00 644.98 Total Open Position (a) Fixed Percentage (b) Capital Charge for Market Risk [c=(ab)] Risk Weight (reciprocal of capital requirement of 10%) in times (d) Equivalent Risk Weight Exposure [e=(cd)]
Open Position (NPR) in thousand 60,991.73 445.80 865.13 944.58 39.96 219.87 2.22 550.90 1,651.24 1.63 38,833.24 15.29 1,933.77 1,609.36 644.98 108,750 5%
Relevant Open Position in thousand 60,991.73 445.80 865.13 944.58 39.96 219.87 2.22 550.90 1,651.24 1.63 38,833.24 15.29 1,933.77 1,609.36 108,749.70 5,437.49 10 54,374.90
74
PRINCIPAL INDICATORS
Schedule 31
Particulars % Rs. Rs. Ratio % % % % % % % % % Ratio % % % 84.82% 78.02% 2.24% 83.48% 75.59% 1.80%
Indicators
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14.
F. Y. 2067/2068 26.19% 14.06 209.00 14.86 6.67% 5.35% 15.37% 39.50% 8.33% 3.60% 16.79% 1.76% 1.28%
F. Y. 2066/2067 10.92% 4.95 260.00 52.47 5.00% 12.04% 32.38% 6.26% 5.29% 14.89% 0.60% 0.42%
15. 16.
F. Y. F. Y. 2065/2066 2064/2065 7.87% 15.10% 2.63 8.91 570 216.73 7.47% 6.98% 33.29% 41.11% 4.02% 2.99% 9.04% 6.42% 8.88% 16.29% 0.29% 1.21% 0.21% 0.75% 83.78% 70.22% 1.58% 0.73%
F. Y. 2063/2064 -108.57% (7.94) 3% 32% 1% 4% -2% -1.15% 86% 1%
17. 18. 19. 20. 21. 22.
Percentage of Net Prot / Gross Income Earnings Per Share Market Value per Share Price Earning Ratio Dividend on share capital (including bonus) Cash Dividend on share Capital Interest Income/Loans & Advances Employee Expenses/Total Operating Expenses Interest Expenses to Total Deposits and Borrowings Exchange Fluctuation Gain/Total Income Staff Bonus/ Total Staff Expenses Net Prot/Loans & Advances Net Prot/ Total Assets Credit to Deposit a. Total Credit / Deposit b. Total Credit / Deposit and Capital Total Operating Expenses/Total Assets Adequacy of Capital Fund on Risk Weightage Assets a. Core Capital b. Supplementary Capital c. Total Capital Fund Liquidity (CRR) Non Performing Loans/Total Loans Weighted Average Interest Rate Spread Book Net worth Total Shares Total Employees % % % % % % Rs. Number Number 10.14% 10.01% 9.42 10.95% 0.95% 0.89% 0.90% 11.09% 10.90% 10.31% 11.80% 6.46% 7.00% 5.81% 7.71% 2.52% 0.85% 0.09% 3.27% 3.05% 3.05% 3.05% 1,708,027,365 1,521,021,895 1,048,926,568 723,788,339 16,000,000 14,733,502 10,000,000 7,000,000 386 376 241 143 14% 7% 16% 9% 3.25% 469,491,096 5,100,000 68
75
SCHEDULE 32
PRINCIPAL ACCOUNTING POLICIES

1. Corporate Information Global Bank Limited (the Bank) was incorporated as a public limited company of Nepal on 29th May, 2006 to engage in commercial banking business. The Nepal Rastra Bank (central bank of Nepal) has granted the operating licence on 31st December, 2006 to commence its business as commercial bank in Nepal. The registered office of the bank is situated at Adarshanagar-13, Birgunj, Parsa District, Nepal. The Corporate Office is located in Pani Pokhari, Kathmandu, Nepal. The bank is operating since then with 28 branches spread all over Nepal. The bank is listed in Nepal Stock Exchange, Kathmandu, Nepal. Approval of Financial Statements by the Board of Directors The enclosed Financial statements of the bank for fiscal year 2067/68 (2010-11) has been approved by the Board of Directors in their meeting dated 17th August, 2011 and also authorised for public issue vide the resolution dated 17th August, 2011. Principal Activities: The Bank is performing business of commercial banking and other financial services including trade finance, money remittance and other activities as permitted under Bank and Financial Institutions Act, 2063 for the commercial banks from the beginning in compliance of the statutory requirements as well as guidelines of Nepal Rastra Bank. There have been no significant changes in the nature of the activities during the fiscal year 2067/68 (2010-11). Summary of Significant Accounting Policies The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied, unless otherwise stated. Basis of Preparation a. Except for Foreign Currency assets and liabilities, the financial statements have been prepared on historical cost basis. b. The financial statements have been presented as required as per the Unified Directives of Nepal Rastra Bank, including subsequent amendments thereon. c. While preparing financial statement fundamental accounting principle of consistency concept and going concern assumption has been considered unless otherwise stated. d. The financial statements are prepared in conformity with NAS that requires the use of certain critical accounting estimates. It also requires management to exercise judgement in the process of applying the Banks accounting policies and have been prepared on accrual basis unless otherwise stated. 6. Statement of Compliance Financial statements of the Bank have been prepared in compliance with Directives of Nepal Rastra Bank. Interest Income a. Interest income, except for interest income on loans and advances, are recognised on accrual basis. Interest income on loans and advances are recognised on cash basis as per the requirements of Unified Directives issued by Nepal Rastra Bank. Recognizing income on cash basis is not in agreement with the Nepal Accounting Standard, NAS 7 (Revenue Accounting), which prescribes that the revenue should be recognised on accrual basis. b. Interest accrued on loan and advances but not received as on year-end date has been transferred into interest suspense. c. Nepal Rastra Bank has allowed, vide their circular no. 1 of 2068, for recognition of interest due as of the close of Ashad 2068 (balance sheet date) but realized in the month of Shrawan 2068. However, the bank has opted as not to exercise the option and continued to follow the hitherto existing policy as per sub-clause (b) above.
2.
3.
4.
5.
7.
d. The premium paid on acquisition of bonds and debentures are amortized by setting off against the interest income accrued and received from those bonds/debentures. Such amortization amount during the year comes to Rs.5,244,240.
76
e. Accrued interest income on long-term project loans during the construction period as per original approval term of the credit have been recognized by capitalizing into the principal loan amount. Such amount for this year comes to Rs. 22,595,483. 8. Commission Income Guarantee commissions of more than Rs.150,000 having maturity of more than a year are accounted for on accrual basis. All other commission incomes are booked at the time of the transaction and on receipt basis. Commission received but not accrued as per above policy has been accounted as Unearned Commission and reported in Schedule 7 of the financial statement. Unearned commission has balance of Rs. 2,866,905 in this year (last year Rs. 2,020,706.) Foreign Exchange Transactions a. The financial statements are reported in Nepalese Rupees. Accordingly, assets and liabilities denominated in foreign currency are translated into Nepalese Rupees at the prevailing mid-rates of exchange as of the Balance Sheet date. b. Profit or Loss arising from the difference between buying and selling rates of Foreign Exchange transactions are recorded on a daily basis and shown as Trading Gain or Loss on foreign exchange c. Gains/losses arising on account of fluctuations in exchange rates of different foreign currencies are accounted for on a daily basis and shown as Revaluation Gain/Loss. 25% of such revaluation gain (i.e. Rs. 2,835,017; last year Rs. 6,105,847) has been transferred to Exchange Fluctuation Fund through Profit and Loss Appropriation Account as required under Nepal Rastra Bank directives. 10. Loans and Advance, overdraft and Bills Purchase a. Loan and advances, overdraft and bills purchase include short-term loan, long-term loan, consumer loan and deprived sector loan disbursed directly or indirectly to the customers. These loans and advances including Bills Purchase are classified as per the directives of Nepal Rastra Bank and has been presented in the Balance Sheet net of such provision. Gross figures and provision have been reported separately in Schedule 4.13 of the financial statement. b. Loans written off have been deducted from the total loan of the bank. 11. Staff Loans Loans and advances extended to staff in accordance with the staff rules of the Bank are shown under Other Assets. Total amount of staff loan as on the balance sheet date is Rs. 101,996,516 (last year Rs. 88,833,436). Bank is providing Housing Loan, Personal Loan and Vehicle Loan, the outstanding balances of which are as follows:
Particulars i. Housing Loan ii. Personal Loan iii. Vehicle Loan Total Staff Loan Amount ( Rs.) 87,959,658 10,895,374 3,141,484 101,996,516
9.
: : :
12. Provision for Possible Loss a. Loan Loss Provision: Provision for possible loan losses has been provided to cover the risks inherent in the Banks loan portfolio. Provision for possible losses on loans, advances and bills purchase are made at the rates ranging from 1% to 100% according to the classification of such risk assets as per the directives of Nepal Rastra Bank and banks own risk assessment. b. Other Provisions: All provisions for possible losses up to the close of fiscal year have been made following NAS 12 and IAS 37 relating to Provisions, Contingent Liabilities and Contingent Assets. 13. Bad Loans and Assets Written Off a. The Bank has the policy to write-off loans in accordance with its Loan Write-Off Policy prepared as per the directive of and under the approval of Nepal Rastra Bank. Recoveries from such written off loans in the subsequent period are recognized into income as Profit from extraordinary activities and exhibited in Schedule 28 of the financial statement.
77
b. Interest suspense and overdue balance on written off loans are reversed and transferred to memo account for future reference. c. Other Assets created during the normal course of banking business written off after making all efforts of the bank for recovery. 14. Investments a. Investment in Treasury Bills, Development Bonds, Bonds and other stocks issued by other corporate bodies (i.e., Nepal Electricity Authority), are purchased by the bank with the intent and ability to hold until maturity and accordingly such securities are considered as Held to Maturity Securities and recorded at cost or at cost adjusted for amortization of premiums or discounts. For other investments, the valuation method of lower of cost or market value has been adopted. Adequate provision has been made for possible losses against investments whose market value as of the balance sheet date has fallen below the cost. Investment in the shares and debentures/bonds of unlisted companies are valued at cost. These accounting policies conform the directives of Nepal Rastra Bank. The investments held by the Bank comprise following categories and presented in Schedule 12 of financial statements: (i) Investments Held for Trading: These are the marketable investments and held with the primary intention of resale over a short period of time. These investments are initially measured at cost and subsequently recognized at market value. Gains or losses arising from trading / revaluation are recognized in Profit or Loss Account (Income Statement). The bank has no Investment Held for Trading in reporting year
(ii) Investments Available for Sale: These are the investments held with the primary intention to recover value of investments through sale rather than continuing to hold. These investments are initially measured at cost and subsequently recognized at market value. Gains or losses arising from sale / revaluation are recognized on Investment Adjustment Reserve/Retained Earning. The investments, which are classified under this category however not listed in the stock exchange, are carried at cost at the Balance Sheet. Amount equivalent to at least 2% of such investments are earmarked on Investment Adjustment Reserve from the Retained Earnings in line with the requirement of Nepal Rastra Bank. (iii) Investments Held till Maturity: These investments are primarily intended to hold until the maturity and are stated at cost and carried at these values in the Balance Sheet until the maturity. Any impairment losses arising in such investments are provisioned and charged in the Profit or Loss Account (Income Statement). Premiums paid while acquiring Held Till Maturity Investments is recognized as the part of initial cost and subsequently amortized. b. Premium paid on purchase of Bonds is being amortized proportionately from the date of purchase to maturity. 15. Fixed Assets, Depreciation and Amortization a. Fixed assets are stated at cost less accumulated depreciation. b. Fixed assets are depreciated applying the straight line method at rates based on their expected useful life and residual value at the end of the useful life of assets. The estimates and associated assumptions for life of assets and salvage value are based on historical experience and various other factors that are believed to be reasonable under the circumstances. c. Fixed Assets are depreciated applying the following life of the assets approved by the management of the Bank.
Types of Fixed Assets Building Vehicle Wooden Furniture Metal Furniture Ofce Equipment Computer Machinery ATM Machine Expected Life of the Assets 40 Years 5 Years 5 Years 10 Years 5 Years 5 Years 5 Years 5 Years
d. Depreciation on newly acquired fixed assets are charged from the subsequent month of the asset being put to use. While no such depreciation is charged in the month of disposal. Gain or loss arising from disposal/
78
derecognition of an item of property and equipment is recognized into Profit and Loss Account. e. Irrespective of the estimated life, non-consumable item costing less than Rs.10, 000 is expensed off in the year of purchase. f. Cost of Computer Software has been capitalized as an intangible asset at the time of installation, the cost of which has been amortized over a period of five years. Accordingly, this year an amount of Rs.10,474,080 has been amortized by charging to Profit and Loss Account.
g. Costs incurred on upgrading of Leasehold Property are capitalized as leasehold assets and amortized over the period of lease term or 5 year period, whichever is earlier. Accordingly, this year an amount of Rs. 24,004,165 has been amortized by charging to Profit and Loss Account. 16. Stationery Stationery purchases are charged to revenue at the time of consumption. Inventory of stationeries remaining at the close of the year are reported under the head Other assets. Stationeries are measured at the lower cost or Market Value. 17. Gratuity & Provident Fund The bank has retirement benefit schemes namely provident fund and gratuity. Provision for gratuity has been determined as per the service rules of the bank taking the proportion of service period completed by each eligible employee. Similarly, periodic contribution to the provident fund has been expensed off. Provident fund amount is being deposited with an Approved Retirement Fund entity on monthly. Accumulated gratuity amount is accounted and exhibited under Other Liabilities, Schedule 4.7 to the Financial Statement 18. Staff Leave Encashment: Change in Accounting Policy Effective this year, the bank has begun providing for accrued liability towards accumulated leave facility as against the cash basis of accounting followed up to last year. Accordingly, a sum of Rs. 17,580,930 has been provided to cover the liability due up to the close of the fiscal year. The total expenses booked on account of the same, including cash payment during the year, come to Rs. 18,183,654. 19. Contingent Liabilities a. All letters of credit, bank guarantees, acceptance liabilities and forward exchange contract liabilities have been shown in full amount as contingent liabilities in accordance with the directive of Nepal Rastra Bank. b. Besides above, all known liabilities wherever material are provided for and liabilities which are material and whose future outcome cannot be ascertained with reasonable certainty, are treated as contingent and disclosed under contingent liabilities. 20. Staff Bonus As required under Bonus Act, 1974, Staff Bonus has been provided at 10% of net profit (after bonus) before tax 21. Taxation : Current years Provision for Taxation a. Provision for taxation has been made on the basis of Income Tax Act 2002 and amendments thereto. b. Current tax liabilities (assets) are the amounts that are expected to be paid to (recovered from) the Inland Revenue Department in respect of income of current year. The tax rates (and tax laws) used for the computation are those that are in existence on the Balance Sheet date. c. Any difference in the actual tax liability determined during the course of Income Tax Assessment will be adjusted in the year of Assessment. 22. Taxation : Deferred tax a. Deferred taxes are accounted using the assets and liabilities method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. b. Deferred tax assets and liabilities are netted off. c. Deferred Tax Assets has been earmarked in the Statement of Change in Equity as per Nepal Accounting Standard (NAS) 9 and Unified Directives (Directive 4) of Nepal Rastra Bank.
79
SCHEDULE 33
NOTES TO ACCOUNTS
1. Change in Issued and Paid up Capital: a. Last year the bank had issued 2:1 right share numbering to 5,000,000 shares. A total number of 4,733,502 shares subscribed and were paid in full, which was booked in share capital in that year. However, the allotment of renounced share as well as reissue of unsubscribed share were completed in year 2010-11 on account of which the banks paid up capital has reached to Rs. 1,500,000,000.
Particulars Paid Up Capital as at 16.07.2010 Issued under Rights Renunciation Reissue of Unsubscribed Shares Paid Up Capital as at 16.07.2011 No. of Share 14,733,502 118,131 148,367 15,000,000 Amounts (Rs.) 1,473,350,200 11,813,100 14,836,700 1,500,000,000
b. Proposed enhancement of paid-up equity capital The Board has decided to propose stock dividend at the rate of 6.667% amounting Rs. 10,000,000 to increase its paid up capital to Rs.1,600,000,000. 2. Share Premium a. The bank has received a sum of Rs. 15,050,422 in share premium through the auction of unsubscribed shares, comprising Rs. 15,033,386 from reissue of 139,849 public shares and Rs. Rs. 17,036 from reissue of 8,518 promoter shares. The details are as follows:
Particulars Public share Promoter Share Total No. of Shares 139,849 8,518 148,367 Amount Received (Rs.) 29,018,286 868,836 29,887,122 Share Capital (Rs.) 13,984,900 851,800 14,836,700 Share Premium (Rs.) 15,033,386 17,036 15,050,422
b. Balance in Share Premium a/c has been transferred to Profit & Loss Appropriation a/c for the purpose of issuance of Proposed Bonus Share. 3. General Reserve: A sum of Rs. 44,995,550,being 20% of Profit after Tax has been appropriated to Statutory General Reserve as required by the Bank and Financial Institution Act. 4. Investment in equity a) Bank has made investment in equity of other corporate entities as follows:
S.No. 1 2 Name of Company Nepal Clearing House First Micronance Development Bank Ltd. Amount of Commitment Rs. 2,500,000 Rs. 15,000,000 Amount paid 2011 Till 16th July Rs. 2,500,000 Rs. 15,000,000 Remarks Fully Paid up Fully Paid up
b) Nepal Clearing house is promoted by Nepal Rastra Bank, 23 Commercial Bank, 2 development banks and SCT. The primary objective of the company is to facilitate electronic clearing of cheque and draft of the bank and financial institution. The company is under preparation to begin its operation. c) First Microfinance Development Bank Limited (FMDB) is established in Kathmandu as national level microfinance development bank under the Bank and Financial Institution Act, 2063 with the approval of Nepal Rastra Bank. FMDB has been providing wholesale and retail microfinance services to the economically and socially disadvantaged and deprived people. FMDB aims to focus on improving livelihood of target people with priority to agriculture, renewable energy and micro enterprises and committed to promote nationwide sustainable microfinance services.
80
5. Deferred Tax Assets & Liabilities a. Deferred tax assets and liabilities have been computed in accordance with NAS 9. Movement in temporary difference during the year is as follows:
Particulars Assets Fixed Assets Total Assets Liability Provision for Gratuity Provision for Leave Encashment Total Liability Net Assets (Liability) Temporary Differences Tax Rate Deferred Tax Assets to be booked in year 2010-11 Opening Deferred Tax Liability Reversed Carrying amount 256,440,318 256,440,318 12,089,132 17,580,930 29,670,062 226,770,256 Tax Base 272,082,389 272,082,389 272,082,389 45,312,133 30% 13,593,640 8,474,972
b. Deferred Tax Reserve is apportioned from Profit and earmarked to the extent of outstanding balance of Deferred Tax Assets as per NRB guidelines. c. Accumulated Deferred Tax Liability till last year, Rs. 8,474,972 reversed and transferred to Current Tax Liability. d. Deferred Tax Assets of Rs. 13,593,640 created and Deferred Tax Reserve created this year. 6. Income Tax Income Tax liability has been calculated as per Income Tax Act, 2002 and disclosures are made as per NAS 9. Accordingly Provision of Rs. 57,270,136 has bee made for current year income tax. The income tax amount may change upon completion of tax audit. 7. Remittance Commission Income: Except for remittance business originating from IME P Ltd., all remittance commission fee and remittance commission expenses have been booked in income and expenses heads separately. In respect of IME P Ltd., . remittance commission fee has been netted off since in these transactions full commission are received out of which their portion of commission are paid subsequently by the bank. 8. Staff Housing Fund: Since the Bank has the policy of providing housing loan to its permanent employees, provision for staff hous ing fund as per the Labour Act has not been made. 9. Previous Years Corresponding Figures Previous years corresponding figures has been taken from the previous years audited financial statements. For the purpose of comparison, the following figures are rearranged: a. Last year, in the Cash Flow Statement, Closing balance of cash and cash equivalent was considered as Closing balance of cash equivalent. Since this needed consideration of only the cash and bank balances as per Nepal Rastra Bank format, the same has been followed this year and hence the previous years Cash Flow Statement has been rearranged restating the Closing balance of cash and bank balance as well as Increase/decrease in short term investment. b. Out of the total dividend amount set aside last year, the dividend payable on account of rights renunciation of 118,131 shares amounting to Rs. 590,655 has been readjusted in the previous years Accumulated Profit and Loss account. c. Previous years Staff Leave Encashment expenses Rs. 221,706 which has been included under Staff Allowance has been separately reported in financial statement and hence adjusted accordingly.
81
10. Change in Accounting Policies: Effective this year, the bank has begun providing for accrued liability towards accumulated leave facility as against the cash basis of accounting followed up to last year. Accordingly, a sum of Rs. 17,580,930 has been provided to cover the liability due up to the close of the fiscal year. The total expenses booked on account of the same, including cash payment during the year, come to Rs. 18,183,654 11. Change in Loan Loss Provision: a. Loan Loss provision has been made as per NRB Directive and changes in provision is as under:
Particulars Loan Loss Provision as by the year end 2009-10 Add : Additional Loan Loss Provision in year 2010-11 Less : Provision utilized to write off loan Loan Loss Provision as on year end 2010-11 Amount (Rs.) 203,183,027 252,370,908 (48,802,027) 406,751,908
b. Loans amounting to Rs. 167,197,066 extended to customers who are currently charged with banking offence. These exposures are classified as pass loan since interest/principal payments are not overdue and fully secured with Fixed Assets Collateral/ Shares.
12. Reconciliation Status a) Inter Bank Reconciliation

NEPAL RASTRA BANK
(Amount in Rs.000)
Period Less than One Months 1-3 Months 3-6 Months 6-12 Months Above 1 year Total
OTHER DOMESTIC FINANCIAL INSTITUTIONS
Ledger Debit 28,050
Statement Debit 5,056
28,050
453 5,509
Ledger Credit 11,036 2,798 731 194 1,275 16,034
Statement Credit 461
293 754
(Amount in Rs.000)
FOREIGN BANKS
Ledger Debit 5595
Statement Debit 296 103
Ledger Credit 7357
5595
399
5 7362
7164
(Amount in Rs.000)
Ledger Debit
Statement Debit 5
Ledger Credit 738 678 840 4 2,151 4,411
88 62 446
Reasons for differences have been identified, most of them have been already settled, and some are being addressed in regular course of business. b) Inter Branch Reconciliation: No reconciliation pending in Inter Branch Account.
82
13. Change in Loans and Advances

Ashad End 2068 12,779,175,146 2067 12,163,635,545
(Amount in Rs.)
Increase / (Decrease) Amount Percentage 615,539,601 5.06%
14. Bad Loans Written Off a. During the year, the bank has written-off the books bad loans amounting to Rs. 48,802,027 by using the existing provision for loan losses on those accounts. There were no such write offs last year. Separate memo Account has been maintained to record such written off loan accounts. b. Interest suspense and overdue balance of Rs. 8,271,308 pertaining to the written off loans has also been written off. 15. Receivable and Provision Against Receivable a) Last year the bank has made full provision against the receivables (appearing under other assets) pertaining to some disputed letters of credit transactions. During the year, the case has been settled under separate out-of-court settlement with the LC negotiating foreign bank as well as mutual agreement with the applicant under the aegis of Federation of Nepalese Chamber of Commerce and Industry. An amount of Rs. 44,679,088 being shortfall after such settlement has been written off against the provision amount. The provision amount of Rs.62,056,734, being equivalent of the amount realised in out-of-court settlement and mutual agreement from the foreign bank and the applicant, has been written back. b) Provision made in the earlier year against legal expenses incurred for recovery of the dues and booked as receivables has been written back by recognizing the amount as expense for Rs.4,285,226. Similarly, provision made against doubtful receivables has been written back against recovery of such dues for Rs.905,080. c) Other amount of Account Receivable revered on account of revaluation, amount received in our agency bank and recovered from other customer for charges amounting to Rs.5,517,104 has been written back from provision. d) The bank has made provision amounting to Rs. 560,280 on account of chronic receivables whose recovery remained doubtful. 16. Changes in Deposit
Particulars Call Deposit Current Deposit Fixed Deposit Margin accounts Saving Deposit Total 2068 3,829,393,833 704,008,967 6,401,204,000 271,115,396 3,860,768,000 15,066,490,196 Asadh End 2067 3,672,554,222 512,013,645 6,206,616,459 287,046,149 4,353,317,872 15,031,548,347
(Amount in Rs.)
Increase / (Decrease) Amount % 156,839,611 4.27% 191,995,322 37.50% 194,587,541 3.14% -15,930,753 -5.55% -492,549,872 -11.31% 34,941,849 0.23%
17. Weighted Average Interest Rate Spread

Particulars Weighted Average Interest on Loans & Investment Weighted Average Interest on Deposits & Borrowing Net Spread
(Amount in Rs.)
Percentage 12.35% 9.08% 3.27%
Annual average of loans, investments, deposits and bonds/borrowings have been taken while computing the Net Spread. 18. Details of preliminary Expense to be Written Off : There are no expenses carried forward under this account.
83
19. Statement of Liuidity Risk Analysis (as at 16 July 2011):

1 2 3 4 5 6 7 8 9 10 11 12 13 Assets Cash Balance Balance with Banks & FIs Investment in Foreign Banks Call Money Government Securities Nepal Rastra Bank Bonds Inter Bank & FI Lending Loans & Advances Interest Receivable Reverse Repo Acceptance Receivable Payments under S. No. 20,21 & 22 Others Total (A) Liabilities Current Deposits Saving Deposits (including call) Fixed Deposits Debentures/Bonds Borrowings Call/Short Notice Inter-bank/Financial Institutions Renance Others Other Liabilities and Provisions Sundry Creditors Bills Payable Interest Payable Provisions Others Acceptance Liabilities Irrevocable Loan Commitment Letter of Credit/Guarantee Repo Payable under s.no.11 Others ( Margin Deposit) Total (B) Net Financial Assets (A-B) Cumulative Net Financial Assets 0-90 days 5,227 12,318 457 5,444 6,300 47,497 647 354 772 79,016 1,198 11,321 14,867 18 18 91-180 days 181-270 days 271-365 days Over 1 year
( Rs. in Lakh)
713 2,899 1,834 4,154 7,401
19,992
9,241
15,440
35,621
308 191 23,390 1,056 10,555 10,972 -
757 321 12,153 1,056 10,555 9,209 -
464 20,059 1,408 9,165 6,714 -
606 693 45,034 2,323 35,306 22,250 -
Total 5,227 12,318 1,170 21,732 6,300 127,792 647 2,025 2,440 179,651 7,040 76,902 64,012 18 18 1,201 836 365 2,025 6,474 3,964 4,000 2,711 168,348 11,303
14 15 16 17 18
19
890 525 365
86 86
86 86
11 11
127 127
20 21 22 23 24 25
354 2,655 826 4,000 2,711 38,840 40,176 40,176
308 1,818 1,506
757 809 214
1,192 1,039
606 0 380
26,302 (2,912) 37,263
22,685 (10,532) 26,731
19,529 529 27,260
60,991 (15,957) 11,303
20. Non Banking Assets Bank does not have any non-banking assets. 21. Proposed Dividend/ Bonus Share Bank proposed 5.35% cash dividend, of which 5% is for payment of Cash dividend and 0.35% towards payment of dividend tax for proposed bonus share of 15:1, i.e. 6.67% Stock dividend. Allocation of profit and share premium has been made as follows for dividend and bonus shares.
84
Particulars Current Years Distributable Prot P/L Balance Carried forward from last year Total Distributable prot Cash Dividend 5 % Distributable Balance in P/L Account Balance in Share Premium Account Total Amount Available for Bonus Share Issue of Bonus Share @ 6.667% (1 shares per 15 shares held) = 1,000,000 shares, fully utilizing the balance in Share Premium Account Dividend Tax for Bonus Share to be paid considered as cash Dividend
Amount ( Rs.) 163,553,544 1,926,861 165,480,405 75,000,000 90,480,405 15,050,422 105,530,827 100,000,000 5,263,158
22. Contingent Liabilities: a. Final Tax Assessment by the Inland Revenue Department not completed for any previous year and contingent liability could not be ascertained and not recorded in books of accounts. b. All other contingent liability whose amount could reasonably estimated are disclosed in schedule 17 of the Financial Statement. 23. Rounding Off Figures have been rounded off to the nearest rupee. 24. Capital Structure and Capital Adequacy Related disclosure as per New Capital Adequacy Framework
TIER 1 CAPITAL AND BREAKDOWNS OF ITS COMPONENTS Particulars Paid Up Capital General Reserve Retained Earning Core Capital Amount (Rs.) 1,600,000,000 77,103,934 267,669 1,677,371,603
TIER 2 CAPITAL AND BREAKDOWNS OF ITS COMPONENTS Particulars General Loan Loss Provision Exchange Fluctuation Reserve Deferred Tax Reserve Exchange Equalization Reserve Supplementary Capital Amount (Rs.) 124,573,928 16,762,122 13,593,640 300,000 155,229,690
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: We have no such subordinated term debt.
DEDUCTIONS FROM CAPITAL
Loans and Facilities extended to Related Parties and Restricted lending (6.4 a 2)
TOTAL QUALIFYING CAPITAL
(9,556,807)
Particulars Core Capital Supplementary capital Total Capital Fund

CAPITAL ADEQUACY RATIO :
Amount (Rs.) 1,667,814,796 155,229,690 1,823,044,486
11.09 Percentage
85
RISK WEIGHTED EXPOSURES FOR CREDIT RISK, MARKET RISK AND OPERATIONAL RISK:
Particulars Risk Weighted Exposure for Credit Risk Risk Weighted Exposure for Operational Risk Risk Weighted Exposure for Market Risk Total Risk Weighted Exposures Add: Add: 2% of the total RWE as per NRB directives (6.4 a 9) Add: additional capital charge of 2% of Gross Income as per NRB directives (6.4 a 7) Total Risk Weighted Exposures (After Banks Adjustments of Pillar II)
Amount (Rs.) 15,284,117,033 614,459,078 54,374,841 15,952,950,952 319,059,019 171,797,319 16,443,807,290
RISK WEIGHTED EXPOSURES UNDER EACH OF 11 CATEGORIES OF CREDIT RISK;
Particulars a) Claims on government & central bank b) Claims on other ofcial entities c) Claims on banks d) Claims on corporate & securities rms e) Claims on regulatory retail portfolio f) Claims secured by residential properties g) Claims secured by commercial real state h) Past due claims i) High risk claims j) Other assets k) Off balance sheet items Total Risk Weightage Assets
TOTAL RISK WEIGHTED EXPOSURE CALCULATION TABLE:
Amount (Rs.) 235,041,865 595,566,888 6,135,249,396 1,640,204,746 314,583,928 2,194,750,353 42,649,735 1,256,465,099 447,117,735 2,422,487,287 15,284,117,033
Particulars Risk Weighted Exposure for Credit Risk Risk Weighted Exposure for Operational Risk Risk Weighted Exposure for Market Risk Add: 2% of the total RWE as per NRB directives (6.4 a 9) Add: additional capital charge of 2% of Gross Income as per NRB directives (6.4 a 7) Total Risk Weighted Exposures Total Tier 1 Capital Fund Total Capital Fund Total Tier 1 Capital to Total Risk Weighted Exposures Total Capital Fund to Total Risk Weighted Exposure
DETAILS OF NON PERFORMING LOAN ( TOTAL AMOUNT AND NET AMOUNT)
Amount ( Rs.) 15,284,117,033 614,459,078 54,374,841 319,059,019 171,797,319 16,443,807,290 1,667,814,796 1,823,044,486 10.14% 11.09%
Particulars Restructured and rescheduled loan Sub standard loan Doubtful loans Bad loan Total Provision For Loss Net Amount
NON PERFORMING LOAN RATIO
(Loan Rs.) 29,951,750 26,873,409 38,898,726 226,058,510 321,782,394 282,177,980 39,604,414
Particulars NPA / Total Loan Net NPA / Net Loan
Ratio 2.52% 0.32%
86
MOVEMENT OF NON PERFORMING ASSETS:
Particulars Non Performing Assets (Gross) Non Performing Assets (Net))
This Year (Rs.) 321,782,394 39,604,419
Previous Year (Rs.) 103,195,722 20,317,625
Changes (%) 211.82% 94.93%
WRITE OFF OF LOANS AND INTEREST SUSPENSE DURING THE YEAR :
Write off of loans during the year Write off of interest Suspense during the year
93,481,115 8,271,308
MOVEMENTS IN LOAN LOSS PROVISIONS AND INTEREST SUSPENSE
Particulars Loan Loss Provision Interest Suspense
This Year (Rs.) 406,751,908 64,698,293
Previous Year (Rs.) 203,183,027 26,547,986
Changes (%) 100.19% 143.70%
DETAILS OF ADDITIONAL LOAN LOSS PROVISION FOR THIS YEAR:
Particulars 1. Pass 2. Restructured 3. Substandard 4. Doubtful 5. Loss Total Loan Loss Provision
SEGREGATION OF INVESTMENT PORTFOLIO:
This Year (Rs.) 4,269,048 14,975,875 2,249,685 (2,438,132) 184,512,405 203,568,881
Particulars Held for Trading Held to Maturity Available for Sale Total Investments
This year (Rs.) 2,902,746,931 17,500,000 2,920,246,931
87
17
Risk Management Function
THE STRUCTURE AND ORGANIZATION OF THE RELEVANT RISK MANAGEMENT FUNCTION
Risk Management in the Global Bank Limited ensure that material risks, the possibility that an event will occur and adversely affect the achievement of objectives are identified, managed. The aim is to achieve proper balance between risk and return based on assessment of potential risk developments in both normal and stressed conditions. Banking activities deal with different sorts of risk management to a large extent they are: credit risk; market risk; operational risk; liquidity risk; compliance risk and others. A separate department has been established to look after the Credit risk and Operational Risk. Every credit files routes through the HeadCredit Risk and Compliance. Head Credit Risk and Compliance directly reports to the CEO and independent of Head of Business. Operational Risk is centrally monitored by the Head- Operational Risk.
CREDIT RISK MANAGEMENT DEPARTMENT HAS FOLLOWING PROCEDURE TO IDENTIFY AND MITIGATE RISK.
Credit Risk (Counterparty Risk) is the failure of customers (companies, individuals, banks, financial institutions, states etc) to perform their obligation towards Bank. Credit risk is paramount that bank is exposed to during the normal course of lending and credit under writing. Global Banks credit Policy Guide is the highest level policy document and it reflects long-term expectations and represents a key element of uniform, constructive and risk-aware culture throughout the Bank. Number of proactive credit risk management techniques and tools under a broad risk framework used by the Bank are outlined below: Credit applications undergo a comprehensive credit evaluation and Bank has procedures for Credit Approval for both retail and corporate credit proposals that ensure appropriate resources and tools are employed for the type of credit assessment. Credit proposals are routed through Credit Risk and Compliance Department with evaluation of underlying risk, where borrowers are classified according to risk grade to reflect the risk of default. Primary importance is given on understanding and assessing the future cash flows of the business and secondary security is taken as fixed asset collateral security and personal guarantee / third part guarantee to support the life of loan as well as cash collateral to the possible extent. Once credit proposals are forwarded from Credit Risk Management Department, underling risks pointed out by Head Credit Risk and Compliance are to be addressed properly by lending officer with mitigants before approval. Banks is having various level approving authority depending upon proposed limits, inherent risks etc. Approved loans are forwarded to Credit Administration Department that administers the post approval processes including preparation of security documentation, contracts and other legal paper as per the approval terms and conditions. Credit Administration Department verifies the certification and completion of all formalities and disburses the loan in the system. Credit exposures once approved / disbursed are effectively monitored and reviewed on annual basis to determine changes in risk levels. Bank has standard procedures for credit review and monitoring systems, which is documented in Credit Policy Guideline. Early warning signals from customers in financial difficulties are read early and remedial management action is implemented to minimize risk of default / loss. Bank reviews and monitors credit through diary notes, visit reports and irregularity reports with respect to the management of excesses, overdue payments of principal or interest and past due bills and deficiencies identified therein reported to credit chain. Loans are priced appropriately through a Risk Based Pricing model. Periodic reviews at portfolio levels are made in order to track performance and changes in quality of loan portfolio. Periodic business evaluation and quality of security / collateral to be be done so as to avoid event of any negative downturns in their values. Various credit portfolio analyses to single client group, product and segment wise exposures etc. are reviewed on regular frequency and used to form strategies in future.
88
Bank has taken strategy to diversify its loan portfolio from corporate clients/groups to small segment so as to minimize portfolio risks. Product paper on various products have been developed/reviewed on periodic basis with settling of prudential lending limit to a single client / obligor along with portfolio level in different product on corporate level.
Market Risk is the risk of adverse deviations of mark-to-market value of the trading portfolio during the period required to liquidate the transactions. Out of various forms of market risk, foreign exchange risk is predominant in our context. Hence focus is given to manage foreign exchange risk by using FX risk limit, Individual Currency Trading Limit, Intra Day Limit, Net Open Position Limit, Credit to Deposit Ratio, Liquid Asset to Deposit Ratio, Investment limits, GAP Analysis for liquidity purpose and for interest rate sensitive Asset & Liability book all the above within ALCO / Investment policy as approved by the Board is monitored by Treasury and Finance & Planning so as to make sure that no unwarranted surprises are to be observed. Operational Risk is the risk of loss resulting from inadequate or failed internal processes, people and system or from external causes, whether deliberate, accidental or natural. The Audit Committee under the direct supervision of the Board has been strengthened which overlooks into the operational risk aspect where by we assess the implication of the External and Internal audit findings to implement better ways of mitigating operational risk. Operational risk is inherent in all business activities. Whilst risks can never be eradicated, we follow a number of procedures and practices to manage and mitigate them to preserve and create value of our business. We manage our operational risks through standardization of internal processes and monitoring mechanisms. Compliance Risk is the risk resulting from non-compliance with laws and regulations and lack of adequate documentation to demonstrate compliance and risk from failure to comply with financial reporting standards, agreements or regulatory requirements. The main Compliance Risk components are generally referred to as regulatory, financial reporting and legal risk. We are constantly monitoring and mitigating compliance risk through the adoption of appropriate policies and timely reporting as per the regulatory requirements. Liquidity Risk arises from funding needs during difficult markets and capital adequacy challenges. Liquidity risk is that short-term assets values are not sufficient to match short-term liabilities or unexpected cash outflows. The Bank as per the approved guidelines from the Board has been maintaining Liquid Asset to deposit ratio and has been monitoring the same very closely. The investments for liquid asset mainly comprises of Government Securities: Treasury Bills maturing within 364 days and Bonds. Our Central Bank as per their Open Market Committee proceedings brings REPOs and Reverse REPOs in the market as per the market requirement and has been letting the Banks utilize the Standing Liquidity Facility (SLF) against the holding of Government Securities as the last resort for liquidity requirement.
TYPES OF ELIGIBLE CREDIT RISK MITIGANTS USED AND THE BENEFITS AVAILED UNDER CRM
Eligible collateral to reduce the credit risk are Deposit with the Bank and Deposit with Other Banks/FI.
STATEMENTS OF LOAN TAKEN BY PROMOTERS/ GROUP OF PROMOTERS FROM OTHER BANK AND FINANCIAL INSTITUTION AGINST PLEDGE OF PROMOTERS SHARES
As at Ashad 32, 2068 (July 16, 2011)
S.No Name of Promoters/ Group of Promoters Share holding of Promoter Group Total No of share Percentage with Tota Paid up Capital Name of the Bank/Financial Institution Loan Details Loan Amount No of Pledged Share
Schedule 34
Remarks
89
UNAUDITED FINANCIAL RESULTS (QUARTERLY)

As at Fourth Quarter (32/03/2068) of the Fiscal Year 2067/68
S.N. 1.0 1.1 1.2 1.3 1.4 1.5 Particulars This Quarter Ending 17,930,991 1,500,000 289,630 401,789 15,066,490 14,670,874 395,616 673,082 17,930,991 1,754,446 2,920,247 12,779,175 2,608,406 162,965
Schedule 4.AA (Rs. In Thousand)
1.6 1.7 2.00 2.1 2.2 2.3 2.4 -
2.5 2.6 2.7 3.0 3.1 3.2 A 3.3 3.4 3.5 B 3.6 3.7 C 3.8 D 3.9 3.10 E 3.11 F 3.12 3.13 G 4.0 4.1 4.2 4.3 4.4 4.5
Total Capital & Liabilities (1.1 to 1.7) Paid-up Capital Reserves and Surplus Debenture and Bond Borrowings Deposits (a+b) a. Domestic Currency b. Foreign Currency Income Tax Liabilities Other Liabilities Total Assets (2.1 to 2.7) Cash & Bank Balance Money at call and short Notice Investments Loans & Advances (a+b+c+d+e+f) a. Real Estate Loan 1. Residential Real Estate Loan (Except Personal Home Loan upto Rs 80 Lacs) 2. Business Complex & Residential Apartment Construction Loan 3. Income generating Commercial Complex Loan 4. Other Real Estate Loan (Including Land Purchase & Plotting) b. Personal Home Loan of Rs. 80 Lacs or less c. Margin Type Loan d. Term Loan e. Overdraft Loan / TR Loan / WC Loan f. Others Fixed Assets Non Banking Assets Other Assets Prot and Loss Account Interest income Interest Expense Net Interest Income (3.1-3.2) Fees Commission and Discount Other Operating Income Foreign Exchange Gain/Loss (Net) Total Operating Income (A+3.3+3.4+3.5) Staff Expenses Other Operating Expenses Operating prot Before Provision (B-3.6-3.7) Provision for Possible Loss Operating prot (C-3.8) Non Operating Income/Expenses (Net) Write Back of Provision for Possible Loss Prot From Regular Activities (D+3.9+3.10) Extraordinary Income/Expenses (Net) Prot Before Bonus and Taxes (E+3.11) Provision For Staff Bonus Provision For Tax Net Prot/Loss (F-3.12 -3.13) Ratios Capital Fund to RWA Non Performing Loan (NPL) to Total Loan Total Loan Loss Provision to total NPL Cost of Funds CD Ratio (Calculated as per NRB Directives) Additional Information Average Yield (Local Currency) Net Interest Spread (Local Currency) Return on Equity Return on Total Assets
Previous Quarter Ending Corresponding Previous Year Quarter Ending ** 17,623,916 17,406,666 1,500,000 1,473,350 221,039 47,672 497,545 14,705,942 14,341,400 364,542 67,604 631,786 17,623,916 1,386,007 230,000 2,502,038 12,892,359 2,619,927 165,510 339,160 15,031,548 14,570,389 461,159 514,936 17,406,666 2,434,338 2,270,487 12,165,704 2,668,418 179,082
626,431 163,737 1,655,273 353,894 429,780 937,984 6,844,747 1,604,364 231,580 245,543 1,963,604 1,288,051 675,553 67,518 84,979 30,936 858,987 155,004 235,260 468,723 252,931 215,792 (133) 166,245 381,905 (93,481) 288,422 26,220 35,886 226,317 11.65% 2.52% 126.40% 9.08% 78.80% 12.35% 3.27% 12.65% 1.26%
623,626 165,137 1,665,653 361,662 452,870 926,296 6,930,057 1,601,547 244,466 369,047 1,458,819 941,831 516,988 60,796 47,967 21,430 647,181 97,299 157,572 392,310 144,289 248,021 (139) 247,882 247,882 22,535 67,604 157,743 11.21% 2.88% 93.26% 8.80% 80.26% 12.36% 3.56% 12.22% 1.19%
627,116 174,596 1,687,624 336,395 510,129 1,030,191 6,129,011 1,491,559 284,400 251,737 1,464,978 962,010 502,968 54,618 75,488 35,363 668,437 100,257 209,346 358,834 195,066 163,768 440 164,208 164,208 14,928 76,278 73,002 10.90% 0.85% 154.79% 7.48% 74.15% 10.90% 3.42% 4.80% 0.42%
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COMPARISON OF UNAUDITED AND AUDITED FINANCIAL STATEMENT AS OF FY 2067/68

S.N. Particulars As per Unaudited Financial Statements
17,930,991
Schedule 4.35
As per Audited Financial Statements

17,929,460
Variance In Amount
(1,531)
in %
-0.01%
Reasons For Variance Note 1 Note 2
Total Capital and Liabilities (1.1 to 1.7)
1.1 1.2 1.3 1.4 1.5
Paid Up Capital Reserve and Surplus Debenture and Bond Borrowings Deposits (a+b) a. Domestic Currency b. Foreign Currency
1,500,000 289,630 401,789 15,066,490 14,670,874 395,616 673,082

17,930,991
1,600,000 108,027 401,789 15,066,490 14,670,874 395,616 80,263 672,891

17,929,460
100,000 (181,603) 80,263 (191)

(1,531)
6.25% -168.11% 0.00% 0.00% 0.00% 0.00% 100.00% 0.00% -0.03%

-0.01%
1.6 1.7 1.8

2
Proposed Dividend & unpaid Dividend Income Tax Liability Other Liabilities
Total Assets (2.1 to 2.7)
Note 3
Note 4
2.1 2.2 2.3 2.4 2.5 2.6 2.7

3
Cash & Bank Balance Money at Call and Short Notice Investment Loans and Advances Fixed Assets Non Banking Assets Other Assets
Prot and Loss Account
1,754,446 2,920,247 12,779,175 231,580 245,543 1,963,604 1,288,051

675,553
1,754,446 2,920,247 12,779,175 231,580 244,012 1,963,604 1,288,051

675,553
(1,531) -
0.00% 0.00% 0.00% 0.00% -0.63% 0.00% 0.00%

0.00%
Note 5
3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13
Interest Income Interest Expenses

A. Net Interest Income
Fees, Commission and Discount Other Operating Income Foreign Exchange Gain/ Loss (Net)
B. Total Operating Income (A.+3.3+3.4+3.5)
67,518 84,979 30,936

858,987
67,518 84,979 30,936

858,987
0.00% 0.00% 0.00%

0.00%
Staff Expenses Other Operating Expenses

C. Operating Prot Before Provision (B.- 3.6-3.7)
155,004 235,260
468,723
155,004 237,364
466,619
2,104
(2,104)
0.00% 0.89%
-0.45%
Note 5 Note 5 Note 5
Provision for Possible Losses

D. Operating Prot (C-3.8)
252,931
215,792
252,931
213,688
(2,104)
0.00%
-0.98%
Non Operating Income/Expenses (Net) Write Back of Provision for Possible Loss
E. Prot from Regular Activities (D+3.9+3.10)
(133) 166,245
381,903
(133) 166,245
379,800
(2,105)
0.00%
-0.55%
Note 5 Note 5 Note 5 Note 5
Extraordinary Income/Expenses (Net)

F. Prot before Bonus and Taxes ( E. + 3.11)
(93,481)
288,422
(93,481)
286,319
(2,105)
0.00%
-0.74%
Provision for Staff Bonus Provision for Tax

G. Net Prot/Loss (F.-3.12-3.13)
26,220 35,886
226,317
26,029 35,312
224,978
(191) (574)
(1,339)
-0.73% -1.63%
-0.60%
Note 1 Due to proposed Bonus Share Note 2 Because of expenses booking of Stationery Expenses booking and dividend allocation Note 3 Cash Dividend and Bonus Share Proposed Note 4 Because of Stationery Expenses booking Prot decreased resulting decreased staff bonus payable Note 5 Stationery Expenses booked and Stationery stock decreased because of expenses booking
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18
Branch and ATM Networks
Network Inside Valley
Off-location ATMs inside Kathmandu Valley: 16. Ason ATM, Ason Chowk, Kathmandu 17. Chabahil ATM, Chabahil Chowk, Kathmandu 18. Bhatbateni ATM, Bhatbateni Supermarket, Maharajgunj, Kathmandu 19. Tripureshwor ATM, Mayaram Bholaram Petrol Pump, Tripureshwor, Kathmandu 20. Mangal Bazar ATM, Mangal Bazar, Lalitpur 21. Tribhuwan International Airport ATM, Kathmandu - Domestic Terminal 22. Naxal ATM, Police Headquarter, Naxal, Kathmandu
On-location ATMs inside Kathmandu Valley: 1. Panipokhari ATM, Corporate Office, Panipokhari, Kathmandu 2. Kantipath ATM, Kantipath Branch, Kathmandu 3. New Road ATM, New Road Branch, Coffee house, New Road, Kathmandu 4. Bouddha ATM, Boudha Branch, Moktan Plaza, Bouddha, Kathmandu 5. Gyaneshwor ATM, Gyanehwor Branch, Sano Gaucharan, Gyaneshwor, Kathmandu 6. Kirtipur ATM, Kritpur Branch, Tribhuwan University, Kirtipur, Kathmandu 7. Kuleshwor ATM, Kuleshwor Branch, MM Building Nayabasti, Kuleshwor, Kathmandu 8. Lagankhel ATM, Lagankhel Branch, Lagankhel Buspark, Lalitpur 9. Dhapasi ATM, Dhapsi Branch, Basundhara Chowk, Dhapasi, Kathmandu 10. Thamel ATM, Thamel Branch, Chaksibarichowk, Thamel, Kathmandu 11. Banasthali ATM, Banasthali Branch, Near Banasthali School, Banasthali, Kathamandu 12. Chhetrapati ATM, Chhetrapati Branch, Hotel Harati building, Chhetrapati, Kathmandu 13. Kupondole ATM, Kupondole Branch, Kandevtasthan, Kupondole, Lalitpur 14. Baneshwor ATM, Baneshwor Branch, White House Complex, Mid Baneshwor, Kathmandu 15. Dillibazar ATM, Dillibazar Branch, Pipalbot Ukalo, Dillibazar, Kathmandu
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Network Outside Valley
On-location ATMs Outside Kathmandu Valley: 1. Dhulabari ATM, Dhulabari Branch, Dhulabari Bazar, Dhulabari, Jhapa 2. Biratnagar ATM, Biratnagar Branch, Main Road, Biratnagar 3. Lahan ATM, Lahan Branch, Main Road , Lahan 4. Gaighat ATM, Ghaighat Branch, Shanti Nagar , Gaighat, Udaypur 5. Narayanghat ATM, Narayanghat Branch, Shahid Chowk, Narayanghat, Chitwan 6. Pokhara ATM, Pokhara Branch, New Road, Pokhara 7. Baglung ATM, Baglung Branch, Loktantrik Chowk, Baglung 8. Butwal ATM, Butwal Branch, B.P .Chowk, Butwal, Rupandehi 9. Bhairawaha ATM, Bhairahawa Branch, Narayansthan, Bhairawaha 10. Nepalgunj ATM, Nepalgunj Branch, Tribhuwanchowk, Nepalgunj 11. Surkhet ATM, Surkhet Branch, Birendra Chowk, Birendra Nagar - 6, Surkhet 12. Lamki ATM, Lamki Branch, Lamki Bazar , Lamki, Kailali 13. Dhangadhi ATM, Dhangadhi Branch, Chauraha, Main Road, Dhangadhi 14. Dadeldhura ATM, Dadeldura Branch, Bagbazar , Dadeldhura
15. Baitadi ATM, Baitadi Branch, Gothalapani, Baitadi Off-location ATMs Outside Kathmandu Valley: 16. Pokhara Lakeside ATM, Near Thik Thak Restaurant, Lakeside, Pokhara 17. Birgunj ATM, Hotel Makalu, Adarshnagar, Birgunj Upcoming ATM locations... 1. Balambu ATM, Balambu, Kathmandu. Member Banks 1. Nepal Investment Bank Limited 2. Kumari Bank Limited 3. Rastriya Banijya Bank Limited 4. Machhapuchchhre Bnak Limited 5. Siddhartha Bank Limited 6. Sunrise Bank Limited 7. Citizen Bank Limited National Payment Network (NPN) Member Banks 1. 2. 3. 4. 5. 6. 7. 8. 9. Business Development Bank Ltd. Nepal Share Market & Finance Ltd. Himchuli Bikash Bank Ltd. United Finance Ltd. Manakamana Development Bank Ltd. Tourism Development Bank Ltd. Birgunj Finance Ltd. National Narayani Finance Ltd. Muktinath Bikash Bank Limited
10. Nepal Consumer Development Bank Limited 11. Garima Bikash Bank Limited 12. Fewa Finance Limited 13. Sewa Bikash Bank Limited 14. Om Finance Limited 15. Agricultural Development Bank Limited 16. Yeti Finance Limited 17. Butwal Finance Limited 18. Social Development Bank 19. Subhechha Bikash Bank Limited 20. Nepal Industrial Development Corporation Limited 21. Gandaki Bikash Bank Limited 22. Siddartha Finance Limited 23. Century Commercial Bank Limited 24. Mission Development Bank Limited 25. Shubhalaxmi Finance Limited 26. Civil Bank Limited
27. Guheshowari Merchant Banking & Finane Limited

28. Tinau Development Bank Limited 29. H&B Development Bank Limited 30. Swastik Merchant Finance Limited 31. Imperial Finance Limited 32. Bhrikutee Finance Limited
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19
Corporate Office Panipokhari, Kathmandu P .O. Box: 19327, Nepal Fax: 4441502 Kantipath Branch P .O. Box: 19327, Nepal Phone No: 4231198 Fax No: 4245469 New Road Branch New Road, Kathmandu Fax No: 4223727 Bouddha Branch Moktan Plaza Bouddha, Kathmandu Phone No: 4487580 Fax No: 4487581 Gyaneshwor Branch Charter Tower,
Contact of Our Networks

Lagankhel Branch Lagankhel Bus Park, Lalitpur-12 Phone No: 5548950, 5548951 Fax No: 5004066 Dhapasi Branch Basundhara Chowk, Dhapasi, Kathmandu Phone No: 4355919, 4356449 Fax No: 4383952 Thamel Branch Chaksibari Chowk, Thamel, Kathmandu-29 Phone No: 4701327, 4701323 Fax No: 4700171 Banasthali Branch Near Banasthali School, Banasthali, Kathmandu Phone No: 4366074 Fax No: 4366130 Chhetrapati Branch Chhetrapati (Hotel Harati building, first floor), Kathmandu Phone No: 4249033 Fax No: 4249057 Kupondole Branch Kandevtasthan, Kupondole, Lalitpur Phone No: 5549872, 5549863 Fax No: 5549906 Baneshwor Branch White House Complex, Mid Baneshwor, Kathmandu Phone No: 4464366 Fax No: 4464356 Dillibazar Branch Pipalbot Ukalo, Dillibazar, Kathmandu Phone No: 4437388, 4437071 Fax No: 4436382
Inside Kathmandu Valley

Phone No: 4002507, 4002508 Email: info@globalbank.com.np
Kantipath Branch, Kathmandu
Toll Free No: 16600 12 13 14
Phone No: 4223433, 4240878
(Opposite Sano Gaucharan football ground) Gyaneshwor, Kathmandu Phone No: 4445008 Fax No: 4445009 TU, Kirtipur Branch Tribhuwan University, Kirtipur Kathmandu Phone No: 4335941 Fax No: 4336166 Kuleshor Branch Kuleshor, MM Building Nayabasti Kathmandu Phone No: 4286445, 4286446 Fax No: 4286451
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Birgunj Branch Birgunj Branch, Adarshanagar Birgunj - 13, Parsa P .O. Box: 45, Nepal Phone No: 051-530337, 051-530338, 051-520019 Fax No: 051-530339
Nepalgunj Branch Tribhuwan Chowk, Nepalgunj-11, Banke Phone No: 081-522037, 081-522038, 081-522151 Fax No: 081-522153 Gaighat Branch
Baglung Branch Loktantrik Chowk, Baglung Phone No: 068-522245, 068-522546 Fax No: 068-522247
Shanti Nagar, Udaypur Phone No: 035-420932 Fax No: 035-420931 Dhulabari Branch
Pokhara Branch New Road, Pokhara Phone No: 061-527503, 061-527504 Fax No: 061-527508 Biratnagar Branch Main Road 9, Biratnagar Phone No: 021-440552, 021-440553, 021-440554 Fax No: 021-440551 Lahan Branch Main Road, Lahan Phone No: 033-561261, 033-561262 Fax No: 033-561260 Butwal Branch B.P .Chowk, Butwal, Rupandehi Phone No: 071-551484, 071-551485, 071-551486 Fax No: 071-551426 Narayanghat Branch Shahid Chowk, Narayanghat Chitwan Phone No: 056-571135, 056-571536 Fax No: 056-571534 Dadeldhura Branch Bagbazar, Dadeldhura-5 Phone No: 096-420276 Fax No: 096-420275 Lamki Branch Baliya-8, Lamki Bazar, Kailali Phone No: 091-540505, 091-540506, 091-540507 Fax No: 091-540504
Mechinagar Nagarpalika-1, Dhulabari Bazar, Jhapa Phone No: 023-560771, 023-560773, 023-560774 Fax No: 023-560772 Dhangadhi Branch Chauraha, Main Road, Dhangadhi-2 Phone No: 091-523108, 091-523109, 091-523110 Fax: 091-523106 Bhairahawa Branch Narayansthan, Ward # 8, Bhairahawa, Rupandehi Phone No: 071-523803, 071-523804, 071-523805 Fax No: 071-523818 Phikkal Branch Phikkal-06, Phikkal Chowk, Ilam Phone No: 027-540472 Fax No: 027-540471 Surkhet Branch Birendra Chowk, Birendra Nagar - 6, Surkhet Phone No: 083-525471, 083-525472 Fax No: 083-525473 Baitadi Branch Gothalapani, Baitadi Phone No: 095-520542, 095-520543 Fax No: 095-520541
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www.globalbanknepal.com
Co r p or ate Office P a n i p o kha r i, K a t hma ndu P.O. B ox: 19327, Ne pa l P h o n e No: 4002507, 4002508 F a x: 4 441502 E ma i l : info@ globa lba nk.c om.np

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The Bank for All

Annual Report 2010/11

Annual Report 2010/11

Professionalism: Everything we do, we do

Annual Report 2010/11

Chairman: Chandra Prasad Dhakal

Board Members at Board Meeting

Ratna Raj Bajracharya

Pushpa Man Shrestha

Ashwini Kumar Acharya

Chandra Prasad Dhakal

Suraj Kumar Shrestha

Surendra Nath Panta

Janak Sharma Poudyal

Annual Report 2010/11

Message From Chairman

Chandra Prasad Dhakal Chairman

Annual Report 2010/11

Message From CEO

Ratna Raj Bajracharya Chief Executive Officer

Annual Report 2010/11

Suresh Raj Maharjan Head - Marketing

Janak Sharma Poudyal

Arati Rajyalaxmi Rana

Department Heads & Senior Relationship Managers

Sushil Shrestha Operation Incharge Kantipath Branch

Manindra Raj Joshi Manager-IT

Dil Bahadur Kafle Head-General Service Department

Krishna P. Lamichhane Head-Internal Audit

Ganesh Awasthi Senior Relationship Manager

Board of Directors Report

1. Countrys Economic condition

Annual Report 2010/11

Annual Report 2010/11

2. Review of the banks Operation during F.Y 2010/2011

As on Ashad End 2068

0.23 5.06 2.43 (2.77) 1.67

Annual Report 2010/11

Banks brief details on operating profit is highlighted here under:

As on Ashad End 2068

1,661 3,798 (935)

2,863 613 2,250

1,642 912 730

1,221 (299) 1,520

Annual Report 2010/11

Annual Report 2010/11

Annual Report 2010/11

8. Contribution to National Economy:

9. Corporate Social Responsibility:

10. Corporate governance:

Annual Report 2010/11

11. Amount Recommended for Dividend Distribution:

12. Financial Statements and Audit

Annual Report 2010/11

14. Change in the Board of Directors and the Management

Annual Report 2010/11

15. Merger with other institutions:

Annual Report 2010/11

Product and Services

Global Super Savings

Global Shubhalabh Bachat

Global Nari Bachat

Global Savings Plus