3.

BRIEF INTRODUCTION OF ORGANIZATION

3.1 The Concept

Global Bank, one of the renowned banks of Nepal has merged with IME Financial

Institution and Lord Buddha Finance, starting its operatio from July, which 2012 has
currently turned into Global IME Bank Limited with this. “Global Bank has become
the first category ‘A’ financial institution to lead the merger of three institutions.
Global IME Bank merger is the biggest merger in the history of banking sector in
Nepal by completing the merger process in shorter span of time.

Global Bank, Lord Buddha Finance and IME Financial Institution ha o o f rsst u
received merger approval from Nepal Rastra Bank and from the Office of Company
Registrar. As per the combine notice issued, the bank started operating its transaction
from new name‘Global IME Bank Limited’from 9 July, 2012.Head office and
corporate office of the new bank has remained at Panipokhari, Kathmandu where
Global Bank had been operating in the same building at Panipokhari in the past.

The Global bank was established in January 2007. Similarly Lord Buddha Finance
has been operating since 2006/11/19 and IME Financial Institution started its
operation from August 1, 2005.

Global IME Bank Limited was formed after the merger of Global Bank with IME
Financial Institution and Lord Buddha Finance in 2012. Both the IME Finance
companies of Nepal. After that, Global IME Bank merged two development bank in
2013. They were Social Development Bank and Gulmi Bikas Bank. Both the
institution were “B” class Development Bank. In 2014, the mergers continued
Global IME Bank took comments and trust Bank Nepal as the merger “A” class
commercial bank. Likewise in the period between 2015 and 2016. Global IME Bank
acquired two “B” Development Bank namely Pacific Development Bank and Reliable
Development Bank. Currently, the bank has signed an acquisition agreement with
Hathway Finance (“C” class finance) also Global IME Bank is merger process with
Janta Development Bank. Janta Development Bank is an “A” class commercial bank
of Nepal.
Global IME 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 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 IME 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 IME Bank Team is committed to
providing the quality products and services to its valued customers with utmost
courtesy and care. Global IME Bank believe that delivery of quality products/services
designed/ customized to best suit the customer need through continuous research/
development.

Vision

Global IME bank is newly emerged bank with following vision.

“The Bank For All”

Mission

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

Core value and Ethical principles

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

a. Teamwork

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

b. Respect and Humility

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

c. Good Governance

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

d. Loyalty

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

Figure 2: Organizational Structure of Global IME Bank Limited, Itahari Branch

Branch
Manager

Credit /Loan
Operational Department
Department

Teller/ Cash Customer Service

Remittance
Department Department

Teller 1 Teller 2 Teller 3

The employee in the following position are given below:

Branch Manager : Binod Karki

Operational Department : Srijana Shrestha

Credit and Loan Department : Om khanal

Teller / Cash Department : Kala Basnet

Remittance : Suraj Mandal

Customer Service Department: Grishma Adhikari

Teller 1 : Sonali Khatiwada

Teller 2 : Manish Jung Basnet

Teller 3 : Chandra Kala Basnet

Product and Services offered by Global IME Bank Limited

Global IME Bank as one of the competing commercial bank is providing variety of
product and services to satisfy its customers’ needs. It is providing various new and
modified products according to changing needs and demand of customers to attract
new customers and retain them in the bank. The product and services offered by
Global IME Bank can be categorized into:
Figure no 3: Product and Services Offered by GIBL

Products and services

Deposits Loans Remittance Other Services

Saving Account Consumer Loan Domestic ATM

Current Account SME Loan Inward Internet Banking

Fixed Account Corporate Loan Outward SMS Banking

Global Remit Mobile Banking

IME Remit
a. Deposits

Global IME Bank provides an array of deposit schemes with competitive interest rate
to the customers to attract them. The types of accounts and schemes of deposits
provided by Global IME Bank are:
Table no: 2 Types of Deposits

1. Saving Deposit Schemes Features

Normal saving account
Students normal saving
Global share lagani bachat khata
Global NariBachat
- Minimum Balance: Rs. 0 -
Interest rate: 2.5 % p.a.
- Minimum Balance: Rs.0
- Interest rate: 2.50%
- Minimum Balance: Rs. 0 - Interest
rate: 4.50% p.a.
- Mobile Banking -Visa Debit Card
- Free Internet banking
- Minimum Balance: Rs. 100 - Interest
rate: 4.50% p.a.
- Mobile Banking Free Internet banking
- Visa Debit Card

2. Current/ Demand Deposit Features

Schemes
Global Current Deposit -Minimum Balance: Rs. 5,000
Global Convertible Foreign -Minimum Balance: Foreign Currency 100
Currency Current Deposit Scheme
Current/ Demand Deposit Schemes Features
3. Fixed Deposit Schemes Features

Global institutional fixed deposits - Minimum Balance: Rs.1,00,000.00

- Interest rates :
3 month to 1 years 6.5%
Above 1 years 7.00%

Global General Fixed Deposit
- Interest to be posted on a monthly basis
- Minimum Balance: Rs. 10,000.00
- Interest rate:
@ 6.5 for 3months
@ 6.5% for 6 months
@ 7.00 % for 1 year & above
- FCY Fixed Deposit Rates are Negotiable

b. Loans and Advances

Different kinds of loans provided by GIBL:

i. Consumer/Personal Loan

• Global Home Loan

• Global Auto Loan

• Global Hire Purchase Loan

• Global Education Loan

• Global Mortgage Loan (Personal Loan)

 Loan against FD
ii. Small and Medium Enterprises (SME)
Loan
Purpose:

• Financing for small business facilities and commitments

• Working capital financing

• Financing for capital expenditure (in the form of Fixed Term Loan)

• Financing for trade related facilities and non-funded facilities like bank
guarantee, LC etc.

iii. Corporate Loan

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

Funded Loan

• Fixed Term Loan

• Working Capital Loan

• Overdraft

• Demand Loan

• Cash Credit

• Pledge Loan

Non Funded Loan

To support import and export or international trade, GIBL provide facility like

• Guarantee

• Letter of credit

Global IME Bank Card Products

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

1. Visa Debit Cards

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

2. Global Travel Cards

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

3. Visa Domestic Gold Credit Cards

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

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

4. Visa Domestic Classic Credit Cards

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

5. Visa International Credit Cards(USD)

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

Global IME Bank ATMs:

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

Global IME e-Banking Products

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

1. Global Mobile Banking:

Global IME Bank has upgraded SMS Banking to Global Mobile Banking. Now

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

2. Global Online-Internet Banking:

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

a) Global Online: The following are the list of features available through GIBL
Online Banking :
- Fund transfer,

- Credit card payment

- NTC lending/postpaid bill payment

- Recharge NTC prepaid cards

- Recharge E-Sewa
 - Claque book and statement request

- Claque stop

- Account information (mini statement/ full statement)

- Change login and transaction password

- Link account and link credit card setting

b) Global Online-Corporate Interne Banking:

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

c) Global Online through WAP:

Now mobile phone users with internet access over mobile phones can access Global
Online .All features of GIBL Online can be accessed through this application.
However, Corporate Internet Banking isn’t available through WAP Due to the
Complex nature of this model itself.

3.2 Present Situation:

A major force driving growth at GIBL is technology, which remains key to continued
progress. While integrating technology the bank continuously strives create a culture
that exemplifies service excellence, simplification of the interfaces between
customers and the bank, while creating secure and safe transactional platforms. In
2020/21, the bank successfully migrated to state of art Core Banking Systems and
platforms that will take our business into the future. It values the trust customers have
placed on it, which is the rationale for investments in the right technology and teams
to protect customer information whilst also delivering faster and more reliable
services. The bank recognizes that customer led innovation is crucial in the rapidly
changing digital space. This explains its efforts to continuously engage in developing
customer focused concepts and platforms that will be introduced in coming years.
Engaging stakeholder is another core component of bank’s strategy implementation
process. By developing and maintaining meaningful relationship through stakeholder
engagement, the bank has been able to continuously improve its relations with
stakeholders and in building trust needed for expanding the business.

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

Capital Structure

Table No: 3 Capital structure of Global IME Bank

Particulars % No of Shares Amount Rs.

Promoter Share 70.0 11,210,162 1,121,016,200

General Public 30.0 4,804,355 480,435,500

Total 100.0 16,014,517 1,601,451,700

(Source: https://globalimebank.com/globalimebankcapitalstructure)
Board of Director

Table no: 4 Board of Director of Global IME Bank

Name Position

Mr. Chandra Prasad Dhakal Chairman

Mr. Sudarshan Krishna Shrestha Director

Mr. Krishna Prasad Sharma Director

Mr. Decent Pratap Singh Director

Mr. Cabinet Shrestha Director

Mr. Ram Bahadur Bhandari Director

( Source: http//globalimebank.com/board-of-directors.)
Table no : 5 Financial Achievement of Global IME Bank

Heading 2076/77 2076/76 Percent change

Paid up capital (Rs Arba) 18.98 10.31 84.09

Reserve and Surplus (Rs Arba) 10.04 6.02 66.78

Deposit from customers (Rs Arba) 212.32 120.09 76.80

Loans and advance from customers 189.39 108.98 73.78

(Rs Arba)

Net interest income (Rs Arba) 8.19 5.24 56.30

Operating profit (Rs Arba) 4.41 3.91 12.79

Net Profit (Rs Arba) 3.09 2.76 11.96

Distributable profit (Rs Arba) 1.73 - -

Non performing loans NIL (%) 1.8 0.55 222.77

Base Rate (%) 8.42 9.54 -11.74

Earning per share EPS (Rs) 16.27 - -

Net worth per share ( Rs) 152.90 - -

Market price per share (Rs) Ashad 239.00 - -

end 2077

P/E ratio 14.69 - -

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

3.3 Challenges and Opportunity

SWOT analysis is one of the major tools for analyzing organization internal as well as
external environment. The internal environment provides strength and weakness
whereas external environment provides opportunities and threats to the organization.
Figure no 4: An overview of GIBL’s SWOT analysis

Strength Weakness
  Good customer service
 Strong network among branches
outside the valley
 Diversified product and service
offered
 Very helpful environment created
with the entire concerned
department
Opportunities
 New Investment opportunities.
 Growing international trade.
 Introduction of innovative
products, services and programs.
 Installation of updated
 Low interest rate on deposits
 Experienced employee turnover
 Lack of sufficient ATM machine
all over Nepal.
 Poor ATM service, frequent
breakdown.
 Low supervision of departments.
 Crowd management is not good.
Threats
 Political instability
 Changing customer preferences
 Changing technology
 Intense competition
 Changing rules and regulations of
NRB