Marking 18 Years of Excellence: Global IME Bank Emerges as Nepal's Financial Leader with Strong Foundations and Remarkable Growth

Global IME Bank, Nepal’s largest commercial bank, celebrates its journey of growth and success on the occasion of its 18th  anniversary. Established in 2007 with an initial paid-up capital of Rs. 1 billion, the bank has grown into a financial powerhouse with a capital base of Rs. 36.13 billion. Through strategic mergers, technological innovation, and a strong commitment to customer satisfaction, GIBL has become a leader in Nepal's banking sector, playing a pivotal role in the nation’s economic development. Over the years, the bank has meticulously built its stature as Nepal's largest commercial bank, driven by strategic mergers, acquisitions, and an unwavering commitment to innovation and customer-centric growth.

The cornerstone of GIBL’s remarkable journey lies in its strategic approach to mergers and acquisitions, which has solidified its position as an industry leader. The pivotal moment came in 2012 when Global Bank Limited merged with IME Financial Institution and Lord Buddha Finance Limited, forming the significant foundation for what is now Global IME Bank. The bank's growth trajectory didn’t stop there. It strategically acquired Commerz and Trust Bank Nepal in 2014, expanding its operational reach and resource base.

In 2019, the integration of Janata Bank Nepal brought significant synergies, enabling the bank to better serve diverse customer segments. The most recent milestone was achieved in 2023, with the successful acquisition of the Bank of Kathmandu, further enhancing GIBL's dominance in the financial sector. These mergers have allowed the bank to leverage economies of scale, consolidate its resources, and emerge as a financial powerhouse with unmatched capabilities in Nepal.

GIBL has continuously embraced technology to enhance its services and deliver seamless banking experiences to its customers. At the heart of its technological backbone is the globally renowned FINACLE software, which facilitates real-time banking across its extensive network of branches. This system ensures not just efficiency but also reliability, catering to the dynamic needs of its growing customer base.

The introduction of the "Global Smart Plus" app has been a game-changer for the bank. This next-generation mobile banking application combines convenience and security, allowing customers to manage their finances with ease. From fund transfers to utility bill payments, the app provides a comprehensive suite of services, reinforcing GIBL's commitment to technological excellence.

In addition to its digital initiatives, the bank has established a state-of-the-art Disaster Recovery System (DRS) to ensure uninterrupted services, even in the face of unforeseen disruptions. This robust infrastructure underscores the bank's dedication to providing reliable and secure banking solutions to its customers.

Financial inclusion has been a cornerstone of GIBL's mission, and the bank has taken bold steps to extend banking services to underserved and remote regions. With 237 branchless banking units operating across the country, the bank serves over 65,000 customers who previously had limited access to formal financial services. These units play a crucial role in empowering rural communities, fostering economic growth, and reducing financial disparities.

Beyond branchless banking, GIBL boasts a formidable physical presence, with 354 branches strategically located across Nepal. Complemented by 68 extension counters and over 384 ATMs, the bank ensures unparalleled accessibility for its more than 5 million deposit customers and 60,000 credit customers. Its expansive network is a testament to its commitment to bringing banking services closer to the people.

GIBL’s ambitions transcend national boundaries, as evidenced by its global footprint. The bank operates representative offices in Australia, India, and the UK, catering to the needs of the Nepali diaspora and facilitating international trade and remittance services. Partnerships with over 60 international banks further bolster its capabilities in cross-border banking, ensuring that GIBL remains a trusted partner for businesses and individuals alike.

GIBL's success is not just measured by its financial performance but also by its ability to adapt, innovate, and lead. As it continues to grow, the bank remains steadfast in its vision of being "The Bank for All." Its focus on technological advancements, financial inclusion, and customer satisfaction positions it as a key player in driving economic growth and development in Nepal.

Looking ahead, the bank is poised to enhance its dividend distribution capacity. While recent dividends have been limited due to broader economic challenges, GIBL’s strong financial standing and sustained growth signal its potential to offer more rewarding returns to its shareholders in the near future. This optimism is backed by its proper financial health, strategic foresight, and unwavering dedication to excellence.

Awards and Recognition

"Bank of the Year (2014)"
"Nepal's Best Bank" (2022) by Euromoney Magazine.
"Best Bank Award" (2024) by Global Finance.
Infosys Finacle Award (2024) for Process Innovation.

Global IME Bank Limited (GIBL) successfully concluded its 18th Annual General Meeting (AGM) on 27th Mangsir, 2081, at Nepal Academy, Kamaladi, Kathmandu. During the meeting, the shareholders approved a 5.5% bonus share distribution for the fiscal year 2080/81, as proposed during the 446th board meeting held on Ashwin 21. The dividend was based on the paid-up capital of Rs. 36.12 billion. Additionally, the AGM endorsed the auditor's report along with the profit and loss statements, financial reports, and cash flow statements for FY 2080/81. It also finalized the appointment of an auditor and an independent director for FY 2081/82.

Dividend History:

Global IME Bank (GIBL) solidifies its position as Nepal's leading commercial bank, with a balance sheet size reaching Rs. 627.25 billion as of Ashoj 2081. This figure marks a notable growth of Rs. 24.72 billion (4.90%) compared to Rs. 529.61 billion in Ashadh 2080, securing the bank the top rank in the sector. The bank's total deposit base surged to Rs. 504.89 billion, reflecting a similar Rs. 24.72 billion (4.90%) increase over the previous quarter. This growth underscores the bank’s extensive reach and the confidence of its growing customer base.

GIBL's total loan portfolio expanded to Rs. 410.96 billion, an increase of Rs. 27.75 billion (7.24%) from Rs. 383.22 billion in Ashadh 2080. This achievement not only reflects the bank’s strong lending capabilities but also secures it the leading position in loan size within the industry. Combined with its deposit mobilization, the bank’s total business volume climbed to an impressive Rs. 940.58 billion, the highest in Nepal's banking sector.

The bank's interest income for the first quarter of FY 2081/82 stood at Rs. 11.66 billion, supported by a net interest income (NII) of Rs. 4.12 billion. As the industry leader in interest income generation, GIBL has proven its ability to effectively leverage its lending and deposit-taking activities. Additionally, non-interest income contributed Rs. 1.31 billion, bringing the bank’s total revenue to Rs. 5.43 billion, which places it second in overall revenue generation among its peers.

Profitability metrics showed a strong upward trend, with operating profit reaching Rs. 2.39 billion, marking a year-on-year growth of 23.36%. Similarly, net profit for the quarter was Rs. 1.51 billion, up by 23.36% from the previous year. These figures rank the bank second in net profit generation within the industry, reflecting its ability to manage costs while maximizing earnings.

GIBL’s Non-Performing Loan (NPL) ratio is a modest 4.67%, indicative of its stringent credit risk management practices. Meanwhile, the capital adequacy ratio (CAR) stands at 12.46%, comfortably exceeding regulatory requirements. These metrics demonstrate the bank's sound financial health and its ability to sustain growth while maintaining asset quality.

The bank’s cost-to-income ratio is an industry-leading 36.30%, highlighting its operational efficiency. This efficient cost management allows GIBL to maximize profitability while maintaining robust operational capabilities. Notably, 24.12% of the bank’s total revenue is derived from non-interest income, reflecting its success in diversifying income streams.

GIBL’s business per rupee of staff cost stands at Rs. 1,007.47, underscoring its workforce productivity and efficient resource utilization. Furthermore, its business per rupee of total cost is Rs. 477.37, showcasing the bank's ability to balance cost and performance effectively.

Historically, the bank has provided limited dividends, consistent with Nepal’s economic environment and regulatory constraints. However, given GIBL's strong financial performance and growing business volume, there is a clear capacity for the bank to distribute higher dividends in the future. As the economic outlook of Nepal improves, shareholders can expect more rewarding returns, driven by the bank's sustained growth and profitability.

Global IME Bank's financial results for FY 2081/82 reaffirm its dominance in Nepal's commercial banking sector. Its unparalleled performance in balance sheet size, deposit mobilization, loan disbursement, and profitability showcases a bank that is not just leading but redefining the industry standards.