Global Bank offers the best services

Chandra Prasad Dhakal is chairman of Global Bank. A commerce graduate, Dhakal is also chairman of IME Financial Institution Limited and managing director of International Money Express Private Limited. In an interview with Prem Khanal of The Kathmandu Post, Dhakal talked at length about Global Bank and its plans for the future. Excerpts:

Could you please outline the performance of the bank?

Global Bank Ltd started operation about 18 months ago as the country's 19th commercial bank. Its overall performance so far has been excellent. We are on track to achieve the target we set in the beginning. We have so far mobilized deposits worth Rs 5.5 billion and invested over Rs 5 billion. Being experienced in the remittance sector, our overall transaction in foreign currency is comparatively good. We are in a position to make an operating profit of over Rs 100 million by the end of the current fiscal year. We have highly trained and motivated manpower and excellent infrastructure, which have contributed to bringing the bank to its current position.

How are you planning to deal with the growing competition in the banking sector?

Banks have definitely become more innovative and are coming up with varieties of products in both the deposit and lending departments. With the restoration of peace, lots of new investment avenues have opened up. Hydropower is one such sector in which Global Bank is preparing to invest. The bank has excellent human resources, which is the most crucial factor to fend off the growing competition in the marketplace. As a result of continuous training and orientation, our staff is fully aware of the changing market and banking scenarios. This has enabled us to address the changing needs of our customers through various novel products. We have already launched SCT debit cards. Also, we will soon be launching VISA debit and credit cards besides adding around 10 more ATMs in the coming fiscal year.

What special products does Global Bank offer its customers?

In the deposit segment, Global Bank has a number of products to cater to all segments of society. We have Global Future Star deposit scheme for minors below 16 years of age, Global Nari Bachat scheme to attract savings from women and Global Senior Citizens scheme for citizens over 55 years old, which offer attractive returns on deposits. For general depositors, we have Global Shubhalabh Bachat scheme, which offers up to 6 percent interest on daily balance. In the lending segment, we have simplified and efficient lending procedures. We also have very competitive lending rates which are attractive to borrowers.

Given Global Bank's rich experience in handling remittances, do you have any plans to focus on this sector?

Viewing the structure of the Nepalese economy, I don't think it would be wise to concentrate all your efforts on one specific sector. We do have a plan to be the leader in the remittance sector, and we are working in that direction. We have already established a strong network in major cities abroad where Nepali workers have a sizable presence. We already have the largest nationwide distribution network here.

Do you think 25 banks are more than enough for a small economy like ours?

Looking at the level of access the general public has to banking, I don't think 25 banks are very many. A majority of Nepal's people still cannot avail themselves of banking services. Furthermore, we have many sectors like hydropower and infrastructure development that banks have not entered. The Nepali banking industry still doesn't have the capacity to manage the required volume of investments. If the country received four or five major hydro and road projects, the deposit mobilization of the banking sector would fall short of what is required. The current financial potential of the banking sector is still not large enough to tap the country's economic potential.

Can you highlight the capital structure of your bank? What message would you like to give to investors who want to invest in Global Bank's primary shares?

The total paid-up capital of Global Bank is presently Rs 1 billion. Of that, 70 percent has come from its promoters, and this week we are making the Initial Public Offering to mobilize the remaining 30 percent. We have also worked out a detailed capital plan as we have to raise the paid-up capital to Rs 2 billion by 2013. We have a plan to issue right shares in a gradual manner besides distributing the profits we make each year to our investors. As for our message to potential investors, I would like to say, "Your investment in our bank will be completely secure, and we will give the best return possible."
Source: eKantipur