Banking News – Global College of Technology Pvt. Ltd. (GCT), located in Baneshwor, has seen its financial indicators weaken significantly due to delays in launching academic programs and a heavy debt interest burden.

According to a rating report published by Infomerics Credit Rating Nepal in October 2026, the college’s net worth has turned negative, and even its operating profit has fallen into negative territory.

Despite weak financial indicators, the college has so far been servicing long-term bank loan liabilities amounting to approximately Rs 68.84 crore, backed by ownership under a strong business group and interest-free financial support from its parent company. The rating agency has maintained the loan facility at an ‘IRN B Plus’ rating, indicating high risk.

What Is the College’s Main Source of Income?
According to the rating report, Global College of Technology has not yet been able to generate regular income from academic programs.

Futsal Ground Rent
In Fiscal Year 2025, the college earned total operating income of Rs 2.40 crore, and Rs 2.60 crore in 2026, with futsal ground rent being the sole main source of income.

Expectation of Future Academic Fees
The college has begun admissions from September 2026 for undergraduate programs under its affiliation with the University of Huddersfield, UK. As of October 2026, 80 students have already enrolled, and classes are set to begin from January 2027, with student fees expected to become the college’s main source of income in the coming days.

Nepal Life’s Investment and Inherent Risks
Global College of Technology is 100 percent owned by Uniglobe Higher Secondary School, Kathmandu. Nepal Life Insurance invested Rs 60 crore on Shrawan 6, 2081 BS to purchase a 47.62 percent shareholding in Uniglobe Higher Secondary School. On the same date, Nepal Life also invested Rs 73 crore 72 lakh 89 thousand 600 in Professional Educators, taking its total investment in the education sector to Rs 1 arba 33 crore 72 lakh 89 thousand 600.

The following serious and inherent risks have been identified in Nepal Life’s indirect investment made from the insured’s fund:

Risk of Negative Net Worth and Capital Erosion
Due to delays in launching academic programs and rising preparatory costs such as faculty recruitment and building rent, the college has incurred a large net loss. This has completely depleted the college’s accumulated fund, turning its net worth negative in Fiscal Year 2026. Capital erosion at the subsidiary could directly impact the investment value of the parent company Uniglobe and the main investor Nepal Life.

Heavy Debt Burden and Dependence on Parent Company
In Fiscal Year 2025, the college’s debt-to-equity ratio had reached 12.03 times, and with net worth turning negative in 2026, the ratio itself has turned negative. The college’s current ratio stands at just 0.19 times, indicating an extremely weak capacity to service short-term liabilities. As the college itself is unable to pay interest, the parent company Uniglobe has been servicing the loan through interest-free support. This has also created pressure on Uniglobe’s cash flow.

Risks of Operational Stabilization and Intense Competition
The college’s academic session has not yet come into full operation. The academic session is said to begin from January 2027. With the number of management and IT colleges affiliated with foreign universities growing rapidly in the Kathmandu Valley, there is a risk that cash flow could worsen further if student enrollment falls short of targets.

Policy and Regulatory Risks
The rating report has pointed out that any tightening in the Ministry of Education’s directives regarding foreign university affiliations, addition of new courses, and scholarships could have a direct negative impact on the college’s operations and future income. Despite weak financial indicators, the college’s strengths are considered to be an experienced team led by Dr Khagendra Prasad Ojha, active in the education sector since 2004, on its board of directors, its own infrastructure in a major education hub like Baneshwor, and its affiliation with the University of Huddersfield.

If the college fails to improve its capital structure by starting classes on time and increasing student numbers in the coming days, this investment appears challenging to become return-oriented for the parent company Uniglobe and indirect investor Nepal Life Insurance.