19th - everest bank · bank and nepal investment bank) who have crossed the benchmark of 10,000...

w w w. e v e r e s t b a n k l t d . c o m

19 th

2012/013Annual Report

At a GlanceAt a Glance

Joint-Venture Partner, PNB, at a glance (31 March 2013)

Net ProfitINR 4748 Crore

(Growth of -2.78% YoY)

Book Value Per ShareINR 884.03

Earning Per ShareINR 139.52

Total BusinessINR 700285 Crore

(Growth of 4.00% YoY)

Total AssetsINR 478877 Crore


Operating ProfitINR 10907 Crore


Investment(Rs. in million)

2008

/09

2009

/010

2010

/011

2011

/012

2012

/013

5948

.5

5008

.3

7743

.9

7863

.6

9263

.8

Capital & Reserve(Rs. in million)

2008

/09

2009

/010

2010

/011

2011

/012

2012

/013

2203

.6

2759

.1

3113

.6

4177

.3

4827

.8

Net Worth(Rs. in million)

2008

/09

2009

/010

2010

/011

2011

/012

2012

/013

2205

.4

2757

.1

3640

.7

4017

.3

4667

.8

Earning Per Share(In Rs.)

2008

/09

2009

/010

2010

/011

2011

/012

2012

/013

99.9

9

100.

16

83.1

8

88.5

5

91.8

8

No. of Branches

2008

/09

2009

/010

2010

/011

2011

/012

2012

/013

32 37 43 47 50

No. of Staff

2008

/09

2009

/010

2010

/011

2011

/012

2012

/013

531

568

583

625

643

Loans & Advances(Including Bills Purchases)(Rs. in million)

2008

/09

2009

/010

2010

/011

2011

/012

2012

/013

2446

9.6

2815

6.4

3166

1.8

3661

6.8

4419

7.7

Deposit(Rs. in million)

2008

/09

2009

/010

2010

/011

2011

/012

2012

/013

3332

2.9

3693

2.3

4112

7.9

5000

6.1

5772

0.4

Net Profit(Rs. in million)

2008

/09

2009

/010

2010

/011

2011

/012

2012

/013

638.

7

831.

8

931.

3

1090

.6

1471

.1

Operating Profit(Rs. in million)

2008

/09

2009

/010

2010

/011

2011

/012

2012

/013

1073

.5

1349

.1

1516

.7

1790

.4

2401

.6

Arun Man SherchanDirector

Dr. Bal Gopal BaidyaDirector

Ved K. ShresthaDirector

BOARD OF DIRECTORS

Legal AdvisorSr. Advocate Shambhu Thapa

AuditorSundar Man Shrestha, FCA

Sundar & CompanyChartered Accountants

Pramod Raj SharmaCompany Secretary

K. Ram MohanDirector

(Punjab National Bank, India)

B. K. ShresthaChairman

Dr. Rakesh GuptaDirector

(Punjab National Bank, India)

Navin Bhakta ShresthaDirector

(Public Shareholders)

Shiva Sharan K.C.Director

(Public Shareholders)

MANAGEMENT TEAM

Hum Nath GurungDy. General Manager

H.P. KulkarniDy. General Manager

A. K. BansalDy. General Manager

A. K. AhluwaliaChief Executive Officer


1 Chairman’s Statement 2

2 Board of Directors’ Report 3

3 Auditors’ Report 10

4 Balance Sheet 11

5 Profit and Loss Account 12

6 Profit Appropriation Account 13

7 Statement of Changes in Equity 14

8 Cash Flow Statement 15

9 Schedules 16

10 Main Indicators 43

11 Significant Accounting Policies 44

12 Notes to Account 46

13 Disclosure Relating to Base-II Framework 55

14 Branch Offices 58

15 Branch Managers & Offices 59

16 Department Head 60

��

In the banking sector, the liquidity remained volatile.

While the government has been encouraging mergers of Bank to

create fewer but strong banks, no major merger have taken place.

Your Bank tried its best and invited other banks to merge. Your

Bank with the support of Punjab National Bank has the ability

not only to complete such merger but also resolve all the likely

issues that could arise as a result of such merger. Unfortunately,

the effort of your Bank has not resulted in a positive manner so

far. We continue to keep our doors open. One of the main reasons

of merger not going through is because most of the Banks were

shy to go through the valuation of the two Banks by an independent

International Agency, for determining the share swap ratio.

On the part of the Government/Nepal Rastra Bank while certain

concessions were given in the areas of (a) Capital Gain Tax and

(b) Land registration duties. However, important concessions

needed in the area of (a) rate of income tax for the merged bank

(b) write off of surplus assets when the two banks are merged

and (c) ceiling on “Golden Handshake” to surplus staff, if any,

have not been pronounced.

The Bank is continuing its fundamental policy of avoiding

temptation of higher earnings by investing in advances with

relatively higher risk has kept the Non Performing Assets (bad

debts) as low as possible with steady consistent growth in profit.

Keeping in view (a) trend of profit and (b) our General Reserve

Position

The Board considered and recommended issue of 50% cash

dividend. This dividend is on the increased Capital based on 30%

bonus shares issued last year and hence amounts to 65%. If you

take the capital base of the year before last year.

Your Bank’s growth has been consistent not only in profit, but

also in size. The total business of the Bank (deposits and advances)

has crossed 10,000 crores. There are only two other Banks (Nabil

Bank and Nepal Investment Bank) who have crossed the benchmark

of 10,000 crores. However, your Banks EPS (Earning Per Share)

is better compared to these two Banks.

I would like to express my gratitude for all the help that we

receive from Nepal Rastra Bank as well as Punjab National Bank.

Likewise, I am thankful to the valuable suggestions and cooperation

extended to me by my Board members as well as the entire Officer

and staff of the Bank.

Last year I had mentioned in my statement to the respected

shareholders about the turmoil and the consequent uncertainties

created in the two largest economies of the world (a) USA and

(b) Europe. After the Presidential election in USA in November,

2012, there has been clear sign of improvement in the US

economy. It is reported that by introducing the technology of

extracting oil from the underground shell, USA is said to be now

free of oil imports. This is quite a major factor.

Consequently, the US Dollar has gained strength against all

currencies. That may be good for USA but has affected Indian

currency and Indian economy badly – with direct effect to Nepal.

The dollar rate in Nepal has now jumped to Rs.99/-.

The equity market in U.S has strengthened and hence investors

are choosing to invest in US Securities compared to other countries

including India.

The other good sign is that Germany, has stood as the pillar of

strength in Europe, in-spite of most of the countries in Europe

continuing to flounder. The other dangerous development continues

to be in Middle East and North Africa.

Near to our country, Indian politics continue to be volatile with

the present Central Government reduced to a minority. This

uncertain political situation in India is likely to continue till the

general election scheduled in 2014.

In our own country, the government has announced 19th November

as the date for election. However, several issues connected with

the election and several parties opposing the election continue

to give an air of uncertainties.

Investors seek certainty. One of the reasons why investment has

gone down all over the world is because of the aforesaid

uncertainties.

Apart from the political uncertainties the central impediment for

economic development is the continuing poor supply of the

electricity in the country.

B. K. SHRESTHACHAIRMAN

19th Annual Report | 3 |

Directors’ ReportLadies and Gentlemen:It gives me great pleasure to welcome you to the 19th Annual General

Meeting (AGM) of your Bank. I have the privilege of presenting the

Balance Sheet as at 31st Ashadh 2070 (15th July, 2013), the Profit &

Loss Account and Cash Flow Statement of your Bank for the year ending

on that date and the Auditors' report made there on.

1. GENERAL ECONOMIC ENVIRONMENT OF THE COUNTRY (Please alsorefer Annexure 1 & 2) & REVIEW OF OPERATIONS OF YOUR BANK:

2. Performance Review:

It is my great pleasure to present the performance of your bank

over a period of last five years. As per the table presented below,

core strength of your Bank has consistently increased over the

period. Total shareholders' fund has gone up over the last five

years from Rs. 209.22 crore to Rs. 552.42 crore consisting of the

following:

Out of the above shareholders total funds, following reserves

amounting to Rs. 114.41 crore is available for appropriation

subject to regulatory stipulations. The details of Rs. 114.41 crore

are given below:

Particulars

Rs. in crore

2064/065(2007/08)

2069/070(2012/13)

Paid Up Capital Ordinary Shares 49.14 160.11Statutory General Reserve* 32.31 161.58Share Premium 20.64 1.85Capital Adjustment Reserve 22.01 36.71Other Reserves 1.92 5.93Debenture Redemption Reserve 6.00 4.69Capital Redemption Reserve - 14.00Deferred Tax Reserve 0.94 9.95Retained Profit 8.37 55.95Proposed Bonus Share 14.74 16.01General Loan Loss & NBA Provision 53.15 85.64

Total Shareholders' Fund 209.22 552.42

Rs. in Crore

Share Premium 1.85

Capital Adjustment Reserve 36.71

Debenture Redemption Reserve 14.00

Accumulated Profit 55.92

Other Free Reserve 5.93

Ordinary Capital & other related Funds 114.41

* As per Nepal Rastra Bank recent circular, debenture redemption reserve

against already redeemed debenture for Rs. 30.00 crores transferred to

General Reserve.

Other Major Performance:a) Business:

Rs. In crore

Increased over

Particulars

Deposit 2397.63 5000.61 5772.05 15.42 240.70

Loans & Advances 1883.64 3661.68 4419.78 20.70 234.60

Over5 year’speriod %

PreviousYear%

2069/070(2012/13)

2068/069(2011/12)

2064/065(2007/08)

The table shows consistent progress of the Bank over the last five

years.

During the year under review, your Bank has earned operating profit

of Rs. 240.16 crore which is 34.13% more than last year and has been

able to post a after tax net profit of Rs. 147.11 crore, which is 34.88%

higher than the last year.

The total deposits have reached Rs. 5772.05 crore recording an annual

growth of 15.42%. The loans and advances stood at Rs. 4419.78 crore

showing an annual growth of 20.70%.

Directors are glad to report that with the present proposal being placed

to the shareholders for approval of issuing 10% Bonus Shares, the

Bank's Paid Up Capital will cross Rs. 176 crores (Rs. 176.12 crores)

Nepal Rastra Bank Nepal Rastra Bank has issued guidelines to make

up the paid up capital of Rs. 200 crores by Ashadh 2071.

As a result of the continuous efforts made by the management for

keeping the non-performing loans at the lowest level, I am happy to

inform the honorable shareholders that the level of non-performing

loans of your Bank is just 0.62% (previous year 0.84%) of gross loans

and the net non performing loan is minus 1.19%. (i.e. we have more

provision against NPA than the gross NPA).

With increase in profit, the bonus provision at 10%, payable to the

employees has also gone up to Rs. 21.00 crores which was Rs. 15.58

crores in the previous year.

Likewise, the income tax liability also has gone up to Rs. 62.98 Crore

for the year from Rs. 46.74 crore the previous year.

Your Bank has been using Corporate Slogan “ Consistent, Strong &

Dependable”. Respected shareholders, it is my pleasure to reiterate

2069/070(2012/13)

2068/069(2011/12)

2064/065(2007/08)

b) Profitability:

Rs. In crore

Increased over

Particulars

Total Income 184.82 550.83 556.05 0.95 200.86

Operating Profit 81.82 179.04 240.16 34.13 193.52

Net Profit after Tax 45.12 109.06 147.11 34.88 226.04

Over5 year’speriod %

PreviousYear%

| 4 | 19th Annual Report

that our Bank was placed in number one Bank under CAMELS parameters

along with Nabil Bank last year( KAROBAR national daily - 11th Ashwin

2069). In this year also, you must have read in the newspapers that

your Bank was conferred with the Asian Pints Newbiz Award in the

“Best Managed Commercial Bank” category for 2013.

3. Internal & External Factors Impacting Bank's Activities:

During the year 2069/70 also, banking sector faced high liquidity

position. Low demands for loans from private sector on the one

hand and excess liquidity in the banking sector on the other hand,

made the banks competing with one another on interest rates

(both on loans and treasury bills). Loan demand from private

sector during the review period did not increase due to lack of

confidence of the entrepreneurs. The Board is of the view that the

banking sector will be facing further challenges if the political

situation does not improve, a firm view is not taken by the concerned

political parties regarding the role of private sector and the imbalance

on development vis-a-vis revenue expenditure of the government.

Nepal has joined the South Asia Free Trade Area (SAFTA), and has

also joined Economic Cooperation (BIMST-EC). Nepal has become

a member of the World Trade Organization (WTO). We have to shape

our plans and strategies accordingly to meet the challenges which

may crop up due to globalization.

Keeping in view the challenges ahead, we should start thinking

from right now. For this, we should start shaping our size, networks

and have proper planning. Respected shareholders with your prior

approval we had initiated the merger process with other suitable

bank/financial institution. However, due to various unseen/imbedded

reasons the merger could not materialize despite our sincere efforts.

We would like to inform the shareholders that the agenda is still

open.

4. ACTIVITIES OF THE BANK AND FUTURE PLAN:

a. Operations:

The prolonged political uncertainty has created a lot of

problems. Under such circumstances, it is challenging to

predict/forecast future activities as well as set plan in a right

way. However, we believe that opportunity comes with

difficulties. Keeping this in mind, we have to sketch our

strategies and draw plans for future growth of the Bank.

Not to be left behind in technology advancement, a continuous

review and upgrading of the technology is undertaken for the

convenience of the customers. In this connection, Bank is

using world class computer software 'Finacle' and all the

information have been migrated in to it. All the branches of

EBL have been housed in centralized data base backed by a

Disaster Recovery Cell operating from outside valley.

With the changing technology, aspiration and requirement of

customers, our service delivery channels are also to be updated.

In this endeavor, we are increasing our own network of ATMs.

Till the review period 3.06 Lac depositors have been issued

debit card. EBL Debit Card can be used in 67 own ATMs at

various locations as well as about 1100 other ATMs tied up

with Smart Choice Technology (SCT) within the country and

more than 6,500 PNB ATMs in India. EBL Debit Card can also

be used at more than 1,500 Point of Sales (PoS) terminals

for purchase of merchandise. In addition to above, in an

endeavor to provide various range of services to the customers,

our Bank has introduced e-banking, SMS banking, e-ticketing,

mobile-banking. Our customers can do banking transactions

such as-viewing their account, money transfers, recharge their

mobile, pay telephone bills etc. sitting at home. We always

strive to provide easy, fast, reliable and hassle free services

to our customers. In this endeavor, we have installed cash

kiosk at different five branches for depositing cash.

The Bank is striving to improve customer service quality, fulfill

their needs through technology and extended services. Most

of our important valley branches and outside valley branch

are providing extended customer services through evening

counters. Our New Road and New Baneshwor branch provide

365 days banking services (including on holidays).

Further, our Bank has launched its' own remittance package

“Everest Remit”. Presently, this remittance facility is available

to the Nepalese who are working in UAE, Qatar, UK, Bahrain,

Malaysia and Israel. This facility will be extended to other

places too in due course. In order to facilitate inward remittance

and foreign trade, we have tied up with various foreign banks

in different countries.

Likewise, Agreements for instant money transfer have been

entered into with EZ Remit, Xpress Money Transfer, Nepal

Remit, Moneygram, thame.com. These arrangements have

facilitated the Bank for inward remittance from different

countries (USA, UK, Malaysia, Singapore, UAE, Kuwait, Baharain,

Qatar etc.).

Similarly, instant remittance facility to and from India has

been in operation. It has facilitated the remitter to remit the

money to any place in India and from there to Nepal without

any hassles. Presently, it is available in all PNB branches.

b. Branch expansion/outreach:

Our Bank opened three more branches during the year 2069/70

(two outside the valley and one inside the valley) namely

Tikapur (Kailali District), Gulariya (Bardiya District) and

Gongabu (Kathmandu District). Now the total branch networks

have reached to 50. During the period we opened three more

extension banking counters in different locations- Parsa

(Chitawan), Attariya (Kailali) and Chandrauta (Kapilvastu).

Including these extension counters, now the total extension

counters reached to five. In addition to these, Bank is running

additional twenty Government Revenue collection counters.

In addition, with an aim to extend our reach and facilitate

the financial inclusion in the rural area, we have launched

Ghar Dailo Banking Sewa in different four locations by

appointing 28 Business Correspondents (BCs) through smart

card based technology. The places are – Nagarkot (Bhaktapur


It is the considered view that the progress and success of any

organization depends upon the knowledge, skills and

motivational level of its workforce. The Bank has been taking

keen and special interest in the development of its human

resources by imparting its employees training in various

aspects of banking. Besides this, the Bank has taken special

care to keep the motivational level of its employees high as

also to instill a sense of belongingness to the Bank.

In order to bring positive swing in the working attitude of

senior officers, the Bank has been conducting special program

on Management Development. In addition to this, during the

review period various types of in-house training/talk program

were conducted, staff were deputed/sent for training in

programs organized by other institutions too. During the

period being reported, various trainings have been provided

to 381 employees. (In-house and outside).

5. DIVIDEND/BONUS SHARE:

The Board in its' meeting held on 6th September 2013 has decided

to recommend to the forthcoming Annual General Meeting to declare

bonus share @10% and cash dividend @ 50% subject to approval

of Nepal Rastra Bank.

The same is being placed before you for approval

2068-69 (2011/12)

Description

%Increase

overlastyear

PerEmployeeAmount

TotalAmount

2069-70 (2012/13)

Rs. In Lac

PerEmployeeAmount

TotalAmount

Deposits, Loans & Advances 866229 1385.97 1019181 1585.04 14.36

Operating Profit 17904 28.65 24015 37.34 30.33

Net Profit 10906 17.45 14711 22.87 31.06

6. CAPITAL ADEQUACY:

Under the Basel – II framework, minimum bench mark fixed by

Nepal Rastra Bank the Capital Adequacy Ratio is 10%. However,

the NRB has further directed to maintain additional one percent

as buffer in case Cash Dividend is declared. The Capital Adequacy

Ratio of the Bank as at the year end 15th July 2013, after proposed

dividends, stands at 11.59%. To maintain the capital adequacy

ratio intact, proper capital back up is required. If the Bank fails

to maintain the required capital adequacy ratio, further growth

in bank’s business will be adversely affected.

7. BOARD OF DIRECTORS:

There have been some changes in the Board of Directors of the

Bank during the financial year under review. Sh. Nabin Bhakta

Shrestha and Sh. Shiva Sharan K.C. have been re-elected

(unanimously) as director representing the public shareholders in

the 19th AGM held on 23rd Aswin, 2070 (9th Oct. 2012).

Sh. Muskan Shrestha has been retired from the director effective

from the same date. CEO as well as the director nominee from the

Punjab National Bank, India, Sh. P.K. Mohapatra has been returned

to PNB after completion of his tenure and Dr. Rakesh Gupta, GM-

PNB, has been nominated as director in EBL Board. Sh. Nabin

Bhakta Shrestha, Sh. Shiva Sharan K.C. and Dr. Rakesh Gupta are

welcomed in the EBL Board and thanks to Sh. Muskan Shrestha

and Sh. P.K. Mohapatra for their valuable contributions made

towards the development of the Bank.

Sh. A.K. Ahluwalia has been appointed as CEO of the Bank who

is deputed from the Punjab National Bank, India Warm welcome

to EBL family.

8. AMENDMENT IN MEMORANDUM AND ARTICLES OF ASSOCIATION:

In the Agenda for the Annual General Meeting a separate Agenda

is executed for amendment of Articles of Association for reasons

explained in the Agenda itself.

9. EMPLOYEE RELATIONS:

The Board is pleased to report that during the year under review

the Management Employee relation has remained harmonious. In

view of your Bank’s expansion, the recruiting of new manpower

as well as motivating our existing employees is proceeding apace.

10. Corporate Good Governance:

Respected shareholders, Corporate Good Governance are one of

the key factors for strength, stability and sustainable progress of

an institution. We always remain alert about the corporate good

governance in your Bank. Your Bank has complied with the related

provisions of related Acts, Rules and Directives issued by Nepal

Rastra Bank.

District), Baglung (hilly region), Birtamode (Terai region) and

Nepalgunj (Terai region).

Further, with a view to reach the rural/semi rural people as

well as to increase our customer base and core deposit, we

have recently launched a handset mobile based product under

the brand name “MOBILE ATM” for Bank’s customers.

The Account holder needs to register his/her mobile in the

system. Using the Mobile, transfer of fund within the Bank

can be effected without visiting the Branch. Besides the

customer can also withdraw cash from BC’s where Branch

network is not available by generating coded transfer message.

Later, we will make available other services like mobile

recharging, utility bill payment etc through this mode.

c. Human Resources Development & Per Employee Business:

The staff strength of the Bank at the end of the financial year

2068-69 (2011/12) was 625, which has now gone up to 643

in the financial year 2069/70 (2012/13). The per employee

business as at the end of the financial year is as under:


On behalf of the Board of Directors,B. K. Shrestha,

Chairman

11. APPOINTMENT OF THE STATUTORY AUDITORS:

The Shareholders are requested to appoint the Auditor from the

list of the auditors approved by Nepal Rastra Bank for the

financial year 2070/71 (2013/14) and also fix the remuneration.

The present auditor Mr. Sundar Man Shrestha (Sundar & Co.,

Chartered Accountants) is eligible for re-appointment.

The Audit Committee of the Bank has recommended to appoint

Sundar Man Shrestha (M/s Sundar & Co. Chartered Accountants)

as auditor of the Bank for the F.Y. 2013/14 . Respected

shareholders are requested to approve the appointment and

their remuneration as recommended by the Audit Committee of

the Board.

12. ACKNOWLEDGEMENT:

On this occasion, on behalf of the Board of Directors and on my

own behalf, I would like to thank all the shareholders for their

continuous support and guidance. I also take this opportunity

to extend thanks to our valued customers for their patronage.

Further, we express our sincere gratitude to the officials of

concerned Departments of Nepal Government, Nepal Rastra Bank,

our joint-venture partner, Punjab National Bank, other concerned

authorities and institutions for their patronage and all the

employees of the Bank for their hard work and dedication.

Further we also express our sincere thanks to members of the

press and other well wishers of the Bank for their valuable co-

operation and support.

Finally, I am sure that the Bank shall continue to get the same

co-operation and support from all of you in the future which

will be a source of inspiration in our endeavor to take our Bank

to newer heights of success in the times to come.

Thank you.


(Annexure I)

Progress made by the Bank during five years period is provided for reference:

TABLE 1 : Paid up Capital, Reserve & Surplus and Business:

2066/067(2009/10)Particulars

2069/070(2012/13)

2067/068(2010/11)

2065/066(2008/09)

Paid Up Capital-Ordinary shares 6388 8305 11196 12316 16011

Statutory General Reserve 4508 6172 8034 10216 16158

Share Premium 148 148 148 185 185

Capital Adjustment Reserve 2841 3671 3671 3671 3671

Other Free Reserve 252 533 542 541 558

Capital Redemption Reserve 1400 1400 1400 1400 1400

Debenture Redemption Reserve 1200 1800 2400 3000 469

Deferred Tax 337 345 629 738 994

Proposed Bonus Share 1916 2491 1120 3695 1601

Retained Profit 824 726 361 4375 5595

Provision for possible losses 6182 6100 6042 7059 8046

Total Funds 26216 31691 35543 47197 54688

Total Deposit 333229 369323 411279 500061 577205

Total Advances 244696 281564 316618 366168 441978

Total Investment 59485 50083 77439 78636 92654

(Rs. in Lacs)

2068/069(2011/12)

TABLE 2 : Profitability:

Total Income 25653 35355 47475 56586 55605

Interest Expenses (10129) (15728) (25359) (28733) (21792)

Staff Expenses (1630) (2077) (2395) (3156) (3741)

Operating Expenses (2920) (3525) (3831) (4673) (5095)

Operating Profit 10974 14025 16160 20023 24977

Provision for possible losses (931) (770) (983) (2520) (988)

Provision for staff bonus (891) (1188) (1331) (1558) (2101)

Provision for staff gratuity (239) (187) (536) (365) (877)

Profit before Income Tax 8913 11880 13310 15581 21010

Provision for Income Tax (2527) (3562) (3997) (4675) (6299)

Net profit after Tax 6387 8318 9313 10906 14711

(Rs. in Lacs)

2066/067(2009/10)

2069/070(2012/13)

2067/068(2010/11)

2065/066(2008/09)

2068/069(2011/12)Particulars


ANNEXURE : II

General Economic EnvironmentSome important information is reproduced which are taken from the Economic Survey for the year 2069/70 (2012/13) publishedby Nepal Government for information:i) Economic growth rate:

As per the Economic Survey 2012/13, the total GDP (at producers' price) is estimated to grow by 3.65% (previous yearincreased by 4.5%). The main reasons for such slow down in the GDP growth are attributed to energy crisis, disturbancein industrial sector, decline in capital expenditure.

ii) Increase in per capita GDP:As per the Economic Survey, per capita GDP in producers price is estimated to be US$ 717 (previous year 706).

iii) Macroeconomic Indicators:Major macroeconomic indicators of the economy have been re-produced below:

iv) Foreign Trade:

The following comparative table of foreign trade of the country is presented on the basis of the information provided inthe Economic Survey:

Source: Economic Survey 2012/13.

(Rs. in Crores)

Particulars Change %2069/70 (2012/13)2068/69 (2011/12)

Amount Share %Amount Share %

EXPORT (F.O.B.)

India 3259 67.1 3325 65.19 2.02

Other countries 1597 32.9 1775 34.81 11.17

Total Export 4856 100.00 5101 100.00 5.03

IMPORT (C.I.F.)

India 19127 64.8 23764 65.90 24.24

Other countries 10397 35.2 12292 34.10 18.22

TOTAL IMPORT 29524 100.00 36056 100.00 22.12

Total foreign trade

With India 22387 65.1 27090 65.82 21.01

With other countries 11994 34.9 14067 34.18 17.29

Total Foreign Trade 34381 100.00 41157 100.00 19.71

Macroeconomic Indicators 2012/132011/12Unit

GDP (at producer's current price) Rs. Billion 1558.0 1701

Per capita GDP (at producer's current price) Rs. 57726 62502

Gross Consumption/GDP %age 90.0 90.7

Gross Domestic Savings (GDS)/GDP %age 10.0 9.3

Gross National Savings/GDP %age 36.7 38.4

Gross Fixed Capital Investment/GDP %age 19.6 21.2

Gross Investment (GI)/GDP %age 32.8 37.8

Gap between GDS and GI/GDP %age (22.8) (28.5)

Revenue/GDP %age 13.2 17.00

Government Expenditure/GDP %age 23.5 23.8

Source: Economic Survey Fiscal Year 2012/13.


From the above, total volume of foreign trade during review period increased by Rs. 6776.59 Crore (19.71%) over

same period the last year. The share of total foreign trade with India and other countries stand at 65.82 percent

and 34.9 percent respectively (previous year 65.1 percent and 34.9 percent).

v) Banking:

Following information are reproduced for information of the respected shareholders:

Total No. 32 89 65 28 16 33

Total Branches 1472 713 298 – – –

Presume in Market per

Capital Deposit (%) 80.32 12.14 6.98 0.56 – –

Presume in Market per

Capital Loan &

Advances (%) 77.03 12.92 7.83 2.22 – –

Source: Economic Survey 2012/13.

Particulars NRB LicensedNGOs

FinancialCompanies

Micro-financeCompanies

DevelopmentBank

CommercialBank

NRB LicensedCo-operatives


Sundar Man Shrestha, F.C.A.Chartered Accountants

PartnerFor Sundar & Co.

Date: September 08, 2013Kathmandu

Independent Auditor's Report toThe Members of Everest Bank Ltd.

Report on the Financial Statements

We have audited the accompanying financial statements of EverestBank Ltd., which comprise the Balance Sheet as at 31st Ashadh 2070corresponding to 15th July 2013, and the Profit & Loss Account,Statement of Changes in Equity and Cash Flow Statement for the yearthen ended and a summary of significant accounting policies andother explanatory notes.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentationof these Financial Statements in accordance with Nepal AccountingStandards so far as applicable in compliance with Prevailing Acts andLaws. This responsibility includes: designing, implementing andmaintaining internal control relevant to the preparation and fairpresentation of financial statements that are free from materialmisstatement, whether due to fraud or error; selecting and applyingappropriate accounting policies; and making accounting estimatesthat are reasonable in the circumstances.

Auditors’ Responsibility

Our responsibility is to express an opinion on these financial statementsbased on our audit. We conducted our audit in accordance with NepalStandards on Auditing. Those standards require that we comply withrelevant ethical requirements and plan and perform the audit toobtain reasonable assurance whether the financial statements arefree from misstatement. An audit involves performing procedures toobtain audit evidence about the amounts and disclosures in thefinancial statements. The procedures selected depend on our judgment,including the assessment of risks of material misstatement of thefinancial statements, whether due to fraud or error. In making thoserisk assessments, we consider internal control relevant to the bank’spreparation and fair presentation of the financial statements in orderto design audit procedures that are appropriate in the circumstances,but not for the purpose of expressing an opinion on the effectivenessof the bank’s internal control. An audit also includes evaluating theappropriateness of accounting policies used and the reasonablenessof accounting estimates made by the management, as well as evaluatingthe overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our audit opinion.

Report of Other Legal and Regulatory Requirements (Bank &Financial Institution Act and Company Act)

On examination of the financial statements as aforesaid, we reportthat:

a. We have obtained all information and explanations asked for,which to the best of our knowledge and belief were necessaryfor 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, prepared in the format prescribed by Nepal

Rastra Bank, are in agreement with the books of accounts.

c. In our opinion, the returns 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 our examination of the books

of account 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.

Opinion on the Financial Statements

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 Ashadh 31st,

2070 (July 15th, 2013) and of the results of its financial performances

and its Cash Flows for the year then ended in accordance with Nepal

Accounting Standards so far as applicable in compliance with the

Prevailing Laws.

SUNDAR & CO.

Chartered Accountants

Pulchowk (Machagaa),

Lalitpur 20/8 Gha.

P.O.B 3102 Kathmandu, Nepal

Phone No. (977-1) 5521804 / 5529942

Fax : 977-1-5524804

Email: [email protected]



As per our report even date

Sundar Man Shrestha, FCAChartered AccountantsPartnerSundar & CompanyDate: Sep 8, 2013

A.K. AhluwaliaC.E.O.

Bishnu Krishna ShresthaChairman

Directors

Ved Krishna Shrestha

Nabin Bhakta Shrestha

Shiva Sharan K.C.

Arun Man Sherchan

Dr. Bal Gopal Vaidya

K. Ram Mohan

Dr. Rakesh Gupta

S.No. Capital and Liabilities ScheduleThis Year

Rs.Previous Year

Rs.

1 Share Capital 4.1 1,921,239,051 1,761,126,410

2 Reserve and Surplus 4.2 2,906,605,621 2,416,176,477

3 Debenture and Bonds 4.3 468,845,000 –

4 Loans and Borrowings 4.4 402,360,000 –

5 Deposit Liabilities 4.5 57,720,464,632 50,006,100,272

6 Bills Payable 4.6 393,056,902 692,398,816

7 Proposed Cash Dividend 820,190,186 30,646,879

8 Income Tax Liabilities 23,932,525 9,297,074

9 Other Liabilities 4.7 1,084,456,540 897,383,129

Total Capital and Liabilites 65,741,150,457 55,813,129,057

S.No. Assets ScheduleThis Year

Rs.Previous Year

Rs.

1 Cash in Hand 4.8 1,723,208,985 1,700,991,770

2 Balance with Nepal Rastra Bank 4.9 8,205,090,428 8,159,753,523

3 Balance with other Banks & Financial Institutions 4.10 1,287,494,550 502,561,014

4 Money at Call and Short Notice 4.11 - -

5 Investments 4.12 9,263,858,419 7,863,627,165

6 Loan, Advances and Bills Purchased 4.13 43,393,187,065 35,910,974,673

7 Fixed Assets 4.14 631,182,801 547,925,679

8 Non-Banking Assets 4.15 - -

9 Other Assets 4.16 1,237,128,209 1,127,295,233

Total Assets 65,741,150,457 55,813,129,057

Schedules 4.1 to 4.17, 4.32 and 4.33 are integral part of the Balance Sheet

Contingent Liabilities 4.17

Directors' Declaration 4.29

Table of Capital Adequacy Ratio 4.30 (A1)

Table of Risk Weighted Assets 4.30 (B,C,D,E)

Main Indicators 4.31

Significant Accounting Policies 4.32

Notes to Accounts 4.33

Details of Loans Taken by Promoters against Promoter Share 4.34

Comparison of Unaudited and Audited Financial Result 4.35

Unaudited Financial Result 4.A

Balance SheetAs on 31 Ashadh 2070 (15th July, 2013)


Particulars ScheduleThis Year

Rs.Previous Year

Rs.

Schedules 4.18 to 4.28, 4.32 and 4.33 are integral part of the Profit & Loss Account

1 Interest Income 4.18 4,936,924,072 4,959,998,415

2 Interest Expenses 4.19 2,179,182,368 2,873,334,682

Net Interest Income 2,757,741,704 2,086,663,733

3 Commission and Discounts 4.20 266,820,914 233,569,801

4 Other Operating Income 4.21 249,385,306 179,822,385

5 Exchange Income 4.22 98,905,369 109,679,321

Total Operating Income 3,372,853,293 2,609,735,240

6 Staff Expenses 4.23 461,809,285 352,050,004

7 Other Operating Expenses 4.24 509,487,902 467,292,948

8 Exchange Loss 4.22 - -

Operating Profit Before Provision for Possible Loss 2,401,556,106 1,790,392,288

9 Provision for Possible Losses 4.25 98,807,333 252,054,098

Operating Profit 2,302,748,773 1,538,338,190

10 Non-operating Income/Loss 4.26 8,336,601 25,155,849

11 Write-back of Loan Loss Provision 4.27 88,312 150,348,539

Profit from Regular Activities 2,311,173,686 1,713,842,578

12 Profit /Loss from Transaction of Extraordinary Activities 4.28 (88,312) –

Profit after Inclusion of all Transaction 2,311,085,374 1,713,842,578

13 Provision for Staff Bonus 210,098,670 155,803,871

14 Provision for Income Tax

Tax for the year 655,436,284 478,355,956

Tax for Earlier Year 106,774 –

Current Year Deferred Tax (Income)/Expense (25,673,645) (10,881,471)

NET PROFIT 1,471,117,291 1,090,564,222

Profit and Loss AccountFrom Shrawan 1st, 2069 to Ashadh 31, 2070 (July 16, 2012 to July 15, 2013)






Directors



Shiva Sharan K.C.

Arun Man Sherchan


K. Ram Mohan

Dr. Rakesh Gupta







Directors



Shiva Sharan K.C.

Arun Man Sherchan


K. Ram Mohan

Dr. Rakesh Gupta

Profit Appropriation AccountFrom Shrawan 1st, 2069 to Ashadh 31, 2070 (July 16, 2012 to July 15, 2013)

ParticularsThis Year

Rs.Previous Year

Rs.

INCOME

1 Retained Profit upto last year 437,523,859 36,091,697

2 Profit for the year 1,471,117,291 1,090,564,222

3 Excgange Fluctuation Fund – –

4 Refund of Last Year Dividend Income of R.M.D.C. (385,320) –

TOTAL 1,908,255,830 1,126,655,919

APPROPRIATION

1 Accumulated Loss upto last year – –

2 Loss for the year – –

3 General Reserve 294,224,000 218,113,000

4 Deferred Tax Reserve 25,673,645 10,881,471

5 Bank Development Fund – –

6 Dividend Equalization Fund – –

7 Staff related funds – –

8 Dividend on Preference Share 11,200,000 11,200,000

9 Proposed dividend on ordinary shares 808,990,186 19,446,879

10 Proposed Bonus Share 160,112,641 369,490,710

11 Capital Redemption Reserve – –

12 Exchange Equalization Fund 1,704,000 –

13 Debenture Redemption Reserve 46,885,000 60,000,000

14 Capital Adjustment Reserve – –

15 Investment Adjustment Reserve – –

16 Other Free Reserve – –

TOTAL 1,348,789,472 689,132,060

RETAINED PROFIT/(LOSS) 559,466,358 437,523,859


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Cash Flow StatementFrom Shrawan 1st, 2069 to Ashadh 31, 2070 (July 16, 2012 to July 15, 2013)

Previous Year Rs.Current Year Rs.Particulars

A. Cash flow from Operating Activities1. Cash Received 5,251,036,856 5,051,031,097

1.1 Interest Income 4,636,675,822 4,516,291,1641.2 Commission & Discounts Income 266,820,914 233,569,8011.3 Income from Foreign Exchange Transaction 92,092,513 116,515,6671.4 Recovery of Loan written off – –1.5 Other Income 255,447,607 184,654,465

2. Cash Paid (3,773,353,009) (4,169,742,469)2.1 Interest Expense (2,184,026,904) (2,854,635,150)2.2 Staff Expense (374,134,234) (318,195,338)2.3 Office Administration Expenses (418,480,394) (367,851,117)2.4 Income Tax Paid (640,907,607) (495,959,297)2.5 Other Expenses (155,803,871) (133,101,567)

Cash Flow before Changes in Working Capital 1,477,683,847 881,288,627(Increase)/Decrease in Current Assets1. (Increase)/Decrease in Money at Call & Short Notice – –2. (Increase)/Decrease in Short-Term Investments (1,006,916,978) 1,625,900,5583. (Increase)/Decrease in Loan & Advances and BP (7,581,019,726) (4,954,988,770)4. (Increase)/Decrease in Other Assets (105,402,703) (299,431,848)Increase/(Decrease) in Current Liabilities1. Increase/(Decrease) in Deposit 7,714,364,360 8,878,185,9332. Increase/(Decrease) in Certificate of Deposit – –3. Increase/(Decrease) in Short-Term Borrowing 402,360,000 –4. Increase/(Decrease) in Other Liabilities (235,667,183) 925,566,343

Total Cash Flow from Operating Activities 665,401,618 7,056,520,844B. Cash flow from Investing Activities

1. Purchase of Shares & Debentures – 1,200,0002. Proceeds from Sale of Shares & Debentures – –3. Purchase of Fixed Assets (174,531,212) (198,493,378)4. Proceeds from Sale of Fixed Assets 147,590 31,225,4675. (Increase)/Decrease in Long-Term Investments (393,314,276) (1,744,399,402)6. Proceeds from Sale of Non-Banking Assets – –7. Interest Income from Long-Term Investments 321,491,622 478,196,1298. Dividend Received 2,393,293 482,9049. Others (Refund of Last Year Dividend Income of R.M.D.C.) (385,320) –

Total Cash flow from Investing Activities (244,198,304) (1,434,188,279)C. Cash flow from Financing Activities

1. Increase/(Decrease) in Long Term borrowings (Bond, Debentrues, etc) 468,845,000 (782,000,000)2. Increase/(Decrease) in Share Capital – 65,2613. Increase/(Decrease) in Share Premium – 3,774,2274 Share Application Money Received – –5 Dividend Paid (41,659,568) (560,089,641)6 Interest in Borrowing Paid (2,713,946) (36,802,711)7 Increase/(Decrease) in Refinance / facilities received from NRB – –

Total Cash flow from Financing Activities 424,471,486 (1,375,052,864)D. Income / Loss from change in exchange rate in Cash & Bank Balance 6,812,856 (6,836,346)E. Current Year's Cash Flow from all activities 852,487,656 4,240,443,355F. Opening Balance of Cash & Bank Balances 10,363,306,307 6,122,862,952G. Closing Balance of Cash & Bank Balances 11,215,793,963 10,363,306,307


Detail of Share Ownership

Share Capital %Particulars %

Current Year Rs. Previous Year Rs.

Share Capital

A. Local Ownership 80.00 1,279,722,210 984,401,700 80.00

1.1 Nepal Government – – – –

1.2 'A' Class Licensed Institutions – – – –

1.3 Other Licensed Institutions – – – –

1.4 Other Institutions 10.73 171,724,300 129,321,700 10.50

1.5 Individual 69.27 1,107,997,910 855,080,000 69.50

1.6 Others – – – –

B. Foreign Ownership 20.00 321,404,200 247,234,000 20.00

TOTAL 100 1,601,126,410 1,231,635,700 100

Name & Address % Amount in Rs.

Sh. B.K. Shrestha, Sanepa Lalitpur 9.20 147,328,600

M/s Snow Lion Hotel P. Ltd., Bagbazar Ktm 9.33 149,330,000

Sh. Maitra Dev Pathak, Kamalpokhari, Ktm 5.82 93,218,400

Sh. Radha Shrestha, Tapahiti Lalitpur 8.49 135,857,800

Sh. Nepal Krishna Shrestha, Tahachal, Ktm 9.09 145,608,800

Sh. Arun Man Sherchan, Gairidhara, Ktm 3.83 61,395,200

Sh. Shanta Dev Pathak, Kamalpokhari, Ktm 2.66 42,639,300

Name & Address % Amount in Rs.

Sh. Kul Bir Singh Tuladhar, Tripureshwor, Ktm 1.01 16,092,800

M/s Punjab National Bank, India 20.00 321,404,200

Ms. Roma Pradhan, Gyaneshwor - 33, Ktm 0.64 10,320,700

Sh. Pratik Kayastha, Baluwatar, Kathmandu 0.81 13,000,300

Detail of Shareholders holding more than 0.5% of the Share Capital is as under :

Share Capital and ShareholdingAs on 31 Ashadh 2070 (15 July 2013)


Schedule 4.1

1. Share Capital

1.1 Authorized Capital 2,000,000,000 2,000,000,000

A) 18,400,000 nos. of Ordinary Shares of Rs. 100 each 1,840,000,000 1,840,000,000

(Previous 18,400,000 nos. of Ordinary Shares of Rs. 100 each)

B) 1,600,000 nos. of 7% Cumulative Convertible 160,000,000 160,000,000

Preference Share of Rs.100 each

1.2 Issued Capital 1,761,126,410 1,391,635,700




Preference Share of Rs. 100 each

1.3 Paid up Capital 1,761,126,410 1,391,635,700


(Including 13,213,610 Bonus Shares fully paid)



Preference Share of Rs.100 each

1.4 Propose Bonus Share 160,112,641 369,490,710

1.5 Calls in Advance – –

Total (1.3 + 1.4 + 1.5) 1,921,239,051 1,761,126,410



Schedule 4.3

300,000 nos. of 8% Unsecured Debenture of Rs. 1,000 each 468,845,000 –

(Issued on 14/06/2013 and Maturing on 13/06/2023)

(Redemption Reserved till Balance sheet date Rs. 46,884,500)

TOTAL 468,845,000 –


Schedule 4.4

A. Local1. Nepal Government – –2. Nepal Rastra Bank (Refinance Loan) – –3. Repo Obligation – –4. Inter-bank & Financial Institutions – –5. Other Body Corporates – –6. Others – –TOTAL OF (A) – –

B. Foreign1. Banks 402,360,000 –2. Others – –TOTAL OF (B) – –GRAND TOTAL (A+B) 402,360,000 –

Reserve and SurplusAs on 31 Ashadh 2070 (15 July 2013) Schedule 4.2


1 General Reserve 1,615,790,514 1,021,566,5142 Capital Reserve – –

2.1 Share Premium 18,555,127 18,555,1273 Capital Redemption Reserve 140,000,000 140,000,0004 Capital Adjustment Reserve 367,147,000 367,147,0005 Other Reserve

a. Reserve for contingencies – –b. Bank Development Fund – –c. Dividend Equlization Fund – –d. Debenture Redemption Reserve 46,885,000 300,000,000e. Assets Revaluation Fund – –f. Deferred Tax Reserve 99,453,409 73,779,764g. Other free reserves 30,000,000 30,000,000h. Investment Adjustment Reserve 3,475,866 3,475,866i. Others 1,225,808 1,225,808

6 Retained Profit 559,466,358 437,523,8597 Exchange Equalization Reserve 24,606,539 22,902,539

TOTAL 2,906,605,621 2,416,176,477

Loans and BorrowingAs on 31 Ashadh 2070 (15 July 2013)

Debenture and BondAs on 31 Ashadh 2070 (15 July 2013)


Deposit LiabilitiesAs on 31 Ashadh 2070 (15 July 2013)

Schedule 4.5

contd..


1 Non-interest bearing deposits

A. Current Deposits 8,099,050,980 6,098,254,263

1. Local Currency 7,980,816,862 6,019,885,766

1.1 Nepal Government 2,713,760,186 2,271,494,507

1.2 'A' Class Licensed Institutions 115,371,517 103,767,174

1.3 Other Licensed Financial Institutions 325,917,824 58,257,543

1.4 Other Body Corporates 4,168,492,315 3,172,718,319

1.5 Individuals 295,288,183 276,612,281

1.6 Others 361,986,837 137,035,943

2. Foreign Currency 118,234,118 78,368,496

2.1 Nepal Government – –

2.2 'A' Class Licensed Institutions – –

2.3 Other Licensed Financial Institutions – –

2.4 Other Body Corporates 117,387,451 78,119,240

2.5 Individuals 846,667 249,257

2.6 Others – –

B. Margin 495,889,582 451,737,361

1. Staff earnest money – –

2. Security margin 248,553,490 214,995,062

3. LC margin 247,336,092 236,742,300

C. Others 199,923,193 227,177,220

1. Local currency 166,618,507 198,229,352

1.1 Financial Institutions – –


1.3 Individual 156,704,178 188,352,772

2. Foreign currency 33,304,686 28,947,868

2.1 Financial Institutions – –


2.3 Individual – –

Total Non-interest Bearing Deposit 8,794,863,755 6,777,168,844

2. Interest Bearing Deposits

A. Saving Deposit 21,067,485,936 17,269,289,330

1. Local Currency 20,976,829,773 17,184,503,729

1.1 Body Corporate – –

1.2 Individual 20,870,163,859 17,052,096,032

1.3 Others 106,665,914 132,407,697


Deposit LiabilitiesAs on 31 Ashadh 2070 (15 July 2013)

Schedule 4.5



2.1 Body Corporate – –

2.2 Individual 90,656,163 84,785,602

2.3 Others – –

B. Fixed Deposit 14,104,779,337 13,007,478,505

1. Local Currency 14,004,538,594 12,914,498,305

1.1 Body Corporate 6,739,015,534 6,460,375,635

1.2 Individual 6,438,952,555 5,781,808,441

1.3 Others 826,570,505 672,314,229


2.1 Body Corporate 100,240,743 92,000,625

2.2 Individual – 979,575

2.3 Others – –

C. Call Deposit 13,753,335,604 12,952,163,592

1. Local Currency 10,608,858,179 10,902,394,131

1.1 'A' Class Licensed Institution – –

1.2 Other Licensed Institutions 1,333,608,397 2,828,572,256


1.4 Individual 369,605,154 1,262,465,889

1.5 Others 873,922,992 587,306,287

2. Foreign Currency 3,144,477,425 2,049,769,460

2.1 'A' Class Licensed Institution – 447,037

2.2 Other Licensed Institutions – –


2.4 Individual 1,908,462 1,803,673

2.5 Others – –

D. Certificate of Deposits – –

1. Body Corporate – –

2. Individual – –

3. Others – –

Total Interest Bearing Deposits 48,925,600,877 43,228,931,427

TOTAL DEPOSITS 57,720,464,632 50,006,100,272


Schedule 4.8


1 Local Currency (Including Coins) 1,709,864,092 1,688,388,398

2 Foreign Currency 13,344,893 12,603,372

TOTAL 1,723,208,985 1,700,991,770

Bills PayableAs on 31 Ashadh 2070 (15 July 2013)

Schedule 4.6


1 Local Currency 82,133,541 411,017,944

2 Foreign Currency 310,923,361 281,380,872

TOTAL 393,056,902 692,398,816

Schedule 4.7


1 Pension / Gratuity Fund (Provision) 256,337,920 168,662,869

2 Staff Provident Fund – –

3 Staff Welfare Fund – –

4 Staff Bonus 210,098,670 155,803,871

5 Interest Payable on Deposits 23,805,498 32,694,061

6 Interest Payable on Borrowings – –

7 Unearned Discount/Commission – –

8 Sundry Creditors 307,275,094 286,856,352

9 Branch Adjustment Account 6,511,258 9,536,092

10 Deferred Tax Liabilities – –

11 Unpaid Dividend 29,962,170 40,974,858

12 Others

a) Agency Account 28,479,024 18,730,799

b) Interest on Debenture 2,107,409 777,328

c) Remittance Payable 95,427,692 104,927,791

d) Debenture Matured – 6,765,000

e) Audit Fee 225,000 200,000

f) Others 124,226,805 71,454,109

TOTAL 1,084,456,540 897,383,129

Cash in HandAs on 31 Ashadh 2070 (15 July 2013)

Other LiabilitiesAs on 31 Ashadh 2070 (15 July 2013)


Schedule 4.11


1 Local Currency – –

2 Foreign Currency – –

TOTAL – –

Schedule 4.10

Balance as per Balance Certificate Rs. 1,781,878,158 (Previous Year Rs. 1,180,092,950) and the difference amount isreconciled.

ParticularsPreviousYear Rs.

Current YearRs.Local Currency INRs. Convertible Total

Foreign Currency

1. Other Local 252,917,598 – 73,280 73,280 252,990,878 144,364,387

Licensed Institutions

a. Current Account 252,917,598 – 73,280 73,280 252,990,878 144,364,387

b. Others – – – – – –

2. Foreign Banks – 678,699,955 355,803,717 1,034,503,672 1,034,503,672 358,196,627

a. Current Account – 678,699,955 355,803,717 1,034,503,672 1,034,503,672 358,196,627

b. Others – – – – – –

Total 252,917,598 678,699,955 355,876,997 1,034,576,952 1,287,494,550 502,561,014

Balance with Nepal Rastra BankAs on 31 Ashadh 2070 (15 July 2013)

Balance with Other Bank & Financial InstitutionsAs on 31 Ashadh 2070 (15 July 2013)

Schedule 4.9

Balance as per Balance Certificate Rs. 10,265,800,253 (Previous Year Rs. 12,649,611,238) and the difference amount isreconciled.

ParticularsPreviousYear Rs.

Current YearRs.Local Currency INRs. Convertible Total

Foreign Currency

1. Nepal Rastra Bank

a. Current Account 8,161,293,719 – 43,796,709 43,796,709 8,205,090,428 8,159,753,523

b. Others – – – – – –

Total 8,161,293,719 – 43,796,709 43,796,709 8,205,090,428 8,159,753,523

Money at Call & Short NoticeAs on 31 Ashadh 2070 (15 July 2013)


1. Investments in Shares1.1 Rural Microfinance Development Centre Ltd. 3,120,000 NA – 3,120,000

(31,200 shares of Rs. 100 each) 1.2 Nirdhan Utthan Bank Ltd. 12,793,300 62,850,200 – 12,793,300

(224,465 shares of Rs. 100 eachincluding 96,532 bonus shares)

1.3 Credit Information Center Ltd. 1,235,500 NA – 1,235,500(30,499 shares of Rs. 100 each)including 18,144 bonus shares)

1.4 Taragaon Regency Hotel Ltd.* 5,000,000 5,000,000 1,600,000 5,000,000(50,000 shares of Rs. 100)

1.5 Nepal Clearing House 2,500,000 NA – 2,500,000(25,000 shares of Rs. 100)

1.6 National Banking Training Institute 1,200,000 NA – 1,200,000(12,000 shares of Rs. 100)

2. Investment in Debentures2.1 NEA Bonds – – – 84,927,000

(84,927 units of Bond of Rs. 1 000 each)Total Investments 25,848,800 – – 110,775,800

3. Provision3.1 Upto last year (1,600,000) (1,600,000)3.2 This year – –Total Provision (1,600,000) (1,600,000)NET INVESTMENTS 24,248,800 – – 109,175,800

* Taragaon Regency Hotel Ltd. has not declared any dividend for last three years.

Schedule 4.12(ka)

Previous YearRs.Particulars ProvisionCost Market Value

InvestmentsAs on 31 Ashadh 2070 (15 July 2013)

Investments in Shares, Debentures and BondsAs on 31 Ashadh 2070 (15 July 2013)

Schedule 4.12

Previous YearRs.Particulars

Current YearRs.Trading Others

Purpose

1. Nepal Government Treasury Bills – 4,126,508,708 4,126,508,708 3,119,591,730

2. Nepal Government Saving Bonds – – – –

3. Nepal Government Other Securities – 2,861,800,911 2,861,800,911 2,949,284,635

4. Nepal Rastra Bank Bonds – – – –

5. Foreign Securities – – – –

6. Local Licensed Institutions – – – –

7. Foreign Banks – 2,251,300,000 2,251,300,000 1,685,575,000

8. Corporate Shares – 25,848,800 25,848,800 25,848,800

9. Corporate Bond & Debenture – – – 84,927,000

10. Other Investments – – – –

Total Investments – 9,265,458,419 9,265,458,419 7,865,227,165

Provision for Investment in Shares – – (1,600,000) (1,600,000)

NET INVESTMENTS – – 9,263,858,419 7,863,627,165


Held for TradingAs on 31 Ashadh 2070 (15 July 2013) Schedule 4.12.1

1. Nepal Government Treasury Bills – – – – – –

2. Nepal Government Saving Bonds – – – – – –

3. Nepal Government Other Securities – – – – – –

4. Nepal Rastra Bank Bonds – – – – – –

5. Foreign Securities – – – – – –

6. Local Licensed Institution's Shares – – – – – –

7. Local Licensed Institution's Debenture & Bond – – – – – –

8. Corporate Shares, Debenture & Bond – – – – – –

9. Foreign Bank Placement – – – – – –

10. Inter Bank Lending

11. Other Investments – – – – – –

Total Investments – – – – – –

Particulars Remarks

Last YearProfit/(Loss)

Amount

This YearProfit/(Loss)

Amount(B-A)

This YearMarket Price

(B)Cost

Price

Last YearMarket Price

(A)

Held to MaturityAs on 31 Ashadh 2070 (15 July 2013)

Schedule 4.12.2

1. Nepal Government Treasury Bills 4,126,508,708 – – – – –


3. Nepal Government Other Securities 2,861,800,911 – – – – –




7. Local Licensed Institution's

Debenture & Bond – – – – – –

8. Corporate Shares, Debenture & Bond – – – – – –

9. Foreign Bank Placement 2,251,300,000 – – – – –

10.Other Investments – – – – – –

Total Investments 9,239,609,619 – – – – –

Particulars Remarks


Amount

This YearProfit/(Loss)

Amount(A-B-C)

Loss AmountAddition to

This Year(C)

CostPrice(A)

Last Amountup to This

Year(B)


Available for SaleAs on 31 Ashadh 2070 (15 July 2013)

Schedule 4.12.3

1. Nepal Government Treasury Bills – – – – – –


3. Nepal Government Other Securities – – – – – –




7. Local Licensed Institution's – – – – – –

Debenture & Bond

8. Corporate Shares, 25,848,800 – 67,850,200 – – (Includes extra Provision

Debenture & Bond Rs. 1,600,000)

9. Foreign Bank Placement – – – – – –

10. Other Investments – – – – – –

Total Investments 25,848,800 – 67,850,200 – – –

Particulars Remarks


Amount

This YearAdustment

FundAmount

(B-A)

This YearMarket

Price(B)

CostPrice

Last YearMarket

Price(A)


Loan

& A

dvan

ces

and

Prov

isio

ning

As

on 3

1 A

shad

h 20

70 (

15 J

uly

2013

)Sc

hedu

le 4

.13

1.

Perfo

rmin

g Lo

an

-1,

692,

578,

249

40,8

99,9

57,9

891,

139,

659,

917

43,7

32,1

96,1

5554

8,07

918

8,81

9,93

518

9,36

8,01

443

,921

,564

,169

36,3

09,3

38,8

31

(a

) Pa

ss L

oan

-

1,69

2,57

8,24

940

,899

,957

,989

1,13

9,65

9,91

743

,732

,196

,155

548,

079

188,

819,

935

189,

368,

014

43,9

21,5

64,1

6936

,309

,338

,831

2.No

n-Pe

rform

ing

Loan

-

-27

6,19

8,77

2-

276,

198,

772

--

-27

6,19

8,77

230

7,49

2,69

6

2

.1Re

stru

ctur

e/Re

sche

dule

-

--

--

--

--

750,

000

2

.2Su

bsta

ndar

d -

-6,

462,

543

-6,

462,

543

--

-6,

462,

543

77,4

14,5

69

2

.3Do

ubtfu

l -

-10

,409

,130

-10

,409

,130

--

-10

,409

,130

10,4

49,9

77

2

.4Lo

ss

--

259,

327,

099

-25

9,32

7,09

9-

--

259,

327,

099

218,

878,

150

A.To

tal L

oan

(1+2

)-

1,69

2,57

8,24

941

,176

,156

,761

1,13

9,65

9,91

744

,008

,394

,927

548,

079

188,

819,

935

189,

368,

014

44,1

97,7

62,9

4136

,616

,831

,527

3.Lo

an lo

ss P

rovi

sion

3.1

Pass

Loa

n

-16

,925

,783

408,

999,

580

11,3

96,5

9943

7,32

1,96

25,

481

1,88

8,19

91,

893,

680

439,

215,

642

363,

093,

388

3.2

Rest

ruct

ure/

Resh

edul

e -

--

--

--

--

93,7

50

3.3

Subs

tand

ard

--

1,61

5,63

6-

1,61

5,63

6-

--

1,61

5,63

619

,353

,644

3.4

Doub

tful

--

5,20

4,56

5-

5,20

4,56

5-

--

5,20

4,56

55,

224,

988

3.5

Loss

-

-25

9,32

7,09

9-

259,

327,

099

--

-25

9,32

7,09

921

8,87

8,15

0

3.6

Addi

tiona

l Pro

visio

n

--

99,2

12,9

34-

99,2

12,9

34-

--

99,2

12,9

3499

,212

,934

B.To

tal L

oan

Loss

Pro

visi

on

-16

,925

,783

774,

359,

814

11,3

96,5

9980

2,68

2,19

65,

481

1,88

8,19

91,

893,

680

804,

575,

876

705,

856,

854

4.Pr

ovisi

on u

pto

Ash

ad e

nd 2

069

4.1

Pass

Loa

n

-12

,681

,327

345,

221,

689

2,78

1,82

736

0,68

4,84

397

,798

2,31

0,74

72,

408,

545

363,

093,

388

315,

534,

412

4

.2Re

stru

ctur

e/Re

shed

ule

--

93,7

50-

93,7

50-

--

93,7

501,

775,

987

4.3

Subs

tand

ard

--

19,3

53,6

44-

19,3

53,6

44-

--

19,3

53,6

4418

,275

,302

4.4

Doub

tful

--

5,22

4,98

8-

5,22

4,98

8-

--

5,22

4,98

82,

088,

340

4.5

Loss

-

46,3

5021

8,83

1,80

0-

218,

878,

150

--

-21

8,87

8,15

016

,915

,781

4.6

Addi

tiona

l Pro

visio

n-

-99

,212

,934

-99

,212

,934

--

-99

,212

,934

249,

561,

473

C. To

tal P

rovi

sion

upt

o As

had

end

2069

-12

,727

,677

687,

938,

805

2,78

1,82

770

3,44

8,30

997

,798

2,31

0,74

72,

408,

545

705,

856,

854

604,

151,

295

D. W

rite

Back

of P

rovi

sion

-46

,350

41,9

62-

88,3

12-

--

88,3

1215

0,34

8,53

9

E. P

rovi

sion

for t

he y

ear

-4,

244,

456

86,4

62,9

708,

614,

772

99,3

22,1

98(9

2,31

7)(4

22,5

48)

(514

,865

)98

,807

,333

252,

054,

097

F. Ne

t Inc

reas

e/De

crea

se fo

r the

yea

r-

4,19

8,10

686

,421

,008

8,61

4,77

299

,233

,886

(92,

317)

(422

,548

)(5

14,8

65)

98,7

19,0

2110

1,70

5,55

8

NET

LOAN

(A-

B)-

1,67

5,65

2,46

640

,401

,796

,947

1,12

8,26

3,31

843

,205

,712

,731

542,

598

186,

931,

736

187,

474,

334

43,3

93,1

87,0

6535

,910

,974

,673

Part

icul

ars

Adv

ance

s

Insu

redD

epri

vedDom

esti

c

Uni

nsur

edOt

her

Fore

ign

Bills

Pur

chas

ed/D

isco

unte

d

Tota

lDom

esti

cFo

reig

nTo

tal

Prev

ious

Year Rs.

Curr

ent

Year Rs.


Security Wise Detail of Loans, Advances and Bills PurchasesAs on 31 Ashadh 2070 (15 July 2013)

Schedule 4.13(Ka)


A. Secured 44,197,762,941 36,616,831,527

1. Against Fixed/Movable Properties 43,119,359,856 35,798,417,297

2. Loan Against Guarantee Local Licensed Institutions – –

3. Against Government Guarantee 198,736,758 198,736,758

4. Against International Rated Bank's Guarantee – –

5. Against Export Document – –

6. Against Fixed Deposit Receipts 820,897,883 578,457,264

a) Own Fixed Deposit Receipts 820,897,883 578,457,264

b) Other Licensed Institutions' Fixed Deposit – –

7. Against Government Securities 12,818,802 3,591,092

8. Against Counter Guarantee – –

9. Against Personal Guarantee 2,496,538 2,499,708

10. Against Other Securities 43,453,104 35,129,408

B. Unsecured – –

TOTAL 44,197,762,941 36,616,831,527


1.

Cost

a)U

pto

Last

Yea

r32

,807

,231

174,

913,

397

145,

950,

663

302,

054,

668

17,3

50,7

2167

3,07

6,68

160

3,27

1,88

8

b)Ad

diti

on t

his

Year

1,96

9,85

66,

246,

000

16,0

07,9

0232

,832

,627

389,

850

57,4

46,2

3586

,200

,354

c)

Reva

luat

ion

duri

ng t

he y

ear

––

––

––

–

d)So

ld d

urin

g th

e ye

ar–

(90,

350)

–(1

,442

,382

)–

(1,5

32,7

32)

(10,

980,

413)

e)In

ter

Hea

d Tr

ansf

ers

––

–41

0,40

7–

410,

407

–

f)W

rite

off

dur

ing

this

yea

r–

––

(3,3

40,9

90)

–(3

,340

,990

)(5

,415

,148

)

Tota

l Cos

t (a

+ b

+ c

+ d

+ e

)34

,777

,087

181,

069,

047

161,

958,

565

330,

514,

330

17,7

40,5

7172

6,05

9,60

167

3,07

6,68

12.

Depr

ecia

tion

––

––

––

–

a)U

pto

Last

Yea

r10

,828

,788

90,7

36,9

4969

,080

,620

192,

795,

379

14,0

06,6

6737

7,44

8,40

331

6,92

4,24

7

b)Ad

diti

on t

his

Year

1,16

4,58

417

,566

,824

13,2

54,0

6732

,577

,085

1,55

7,35

766

,119

,916

71,1

10,0

47c)

Depr

ecia

tion

of

Inte

r H

ead

Tran

sfer

s–

––

45,9

75–

45,9

75–

d)

Depr

ecia

tion

of

wri

te o

ff–

––

(3,0

74,5

81)

–(3

,074

,581

)(4

,950

,083

)

e)De

prec

iati

on o

f as

sets

sol

d–

(85,

785)

–(1

,180

,365

)–

(1,2

66,1

50)

(5,6

35,8

09)

To

tal D

epre

ciat

ion

11,9

93,3

7210

8,21

7,98

882

,334

,687

221,

163,

493

15,5

64,0

2443

9,27

3,56

337

7,44

8,40

33.

Book

Val

ue (

1 -

2 )

22,7

83,7

1572

,851

,059

79,6

23,8

7810

9,35

0,83

72,

176,

547

286,

786,

038

295,

628,

278

4.La

nd–

––

–29

2,80

6,57

929

2,80

6,57

918

4,08

4,57

95.

Capi

tal W

IP–

––

––

––

6.Le

aseh

old

Asse

t–

––

–30

,054

,497

30,0

54,4

9741

,921

,056

7.Fi

nacl

e So

ftw

are

––

––

21,5

35,6

8721

,535

,687

26,2

91,7

66To

tal (

3 +

4 +

5 +

6 +

7)

22,7

83,7

1572

,851

,059

79,6

23,8

7810

9,35

0,83

734

6,57

3,31

063

1,18

2,80

154

7,92

5,67

9

Fixe

d A

sset

sA

s on

31

Ash

adh

2070

(15

Jul

y 20

13)

Sche

dule

4.1

4

Part

icul

ars

Cost Upt

o La

st Y

ear

47,5

60,7

85

Addi

tion

Thi

s Ye

ar-

Tota

l Cos

t47

,560

,785

Amor

tisa

tion

Upt

o La

st Y

ear

21,2

69,0

20Ad

diti

on T

his

Year

4,75

6,07

9To

al A

mor

tisa

tion

26,0

25,0

98N

et B

ook

Valu

e21

,535

,687

Deta

il of

Com

pute

r So

ftw

are

- Fi

nacl

e

Curr

ent

Year

Rs.

Build

ing

Veh

icle

sM

achi

nery

Offi

ceEq

uipm

ent

Othe

rs

Ass

ets

Prev

ious

Year Rs.


Non Banking AssetsAs on 31 Ashadh 2070 (15 July 2013)

Schedule 4.15

1. NB Garments 04.06.2004 5,856,238 100 5,856,238 – 5,856,238Bathnah VDC - 6, Simara

2. Daya Nanda & Kalpana Thapa 14.07.2011 45,930,349 100 45,930,349 – 45,930,349Maharajgunj, Kathmandu

Total 51,786,587 51,786,587 – 51,786,587

Previous Year's Provisions – (51,786,587)

TOTAL 51,786,587 51,786,587 – –

PreviousYear Rs.

Name & Address of theParty/Borrower Date of Transfer Amount of NBA

NetAmount% Amount

Provisoning


Other AssetsAs on 31 Ashadh 2070 (15 July 2013)

Schedule 4.16


1. Stationeries Stock 13,016,012 12,828,361

2. Interest Receivable on Investments 35,502,506 56,745,878

3. Interest Receivable on Loans & Advances – –

Interest Receivable on Loans & Advances 131,877,935 88,605,387

Less: Interest Suspense (131,877,935) (88,605,387)

4. Commission Receivables – –

5. Sundry Debtors 39,249,211 11,950,377

6. Staff Loans & Advances 981,205,270 806,111,780

7. Pre-paid Expenses 13,968,612 13,373,133

8. Cash in Transit 37,073 –

9. Others in Transit (including cheques) – –

10. Draft Paid Without Advices – –

11. Expenses to be Written -off – –

12. Branch Account – –

13. Deferred Tax Assets 99,453,409 73,779,764

14. Others – –

Security Deposit 45,670,489 37,942,220

Misc. (Remittance Receivable) 9,025,627 114,563,720

TOTAL 1,237,128,209 1,127,295,233

Schedule 4.16(ka)

Other Assets (Additional Details)As on 31 Ashadh 2070 (15th July, 2013)

Particulars Up to 1 YearMore than 1 Year

& upto 3 YearsMore than

3 Years Total

Current Year Rs.

Previous YearRs.

1. Interest Receivables on Loan 99,068,112 11,514,029 21,295,794 131,877,935 88,605,387

2. Draft Paid without Schedule – – – – –

3. Branch Account – – – – –

4. Domestic Foreign Agency A/c – – – – –

TOTAL 99,068,112 11,514,029 21,295,794 131,877,935 88,605,387


Contingent LiabilitiesAs on 31 Ashadh 2070 (15 July 2013)

Schedule 4.17


1. Claim Lodged but Not Accepted by the Bank – –

2. Letters of Credits 5,269,858,281 4,521,402,069

a. Maturity Value of Less Than Six Months 5,267,841,412 4,429,491,649

b. Maturity Value of More Than Six Months 2,016,869 91,910,420

3. Re-discounted Bills – –

4. Unexpired Guarantees 2,492,315,974 2,321,987,077

a. Bid Bond 207,106,451 168,408,882

b. Performance Bond 2,285,209,524 2,153,578,195

5. Share Money Against Investments in Shares – –

6. Forward Exchange Contracts – –

7. Bills on Collection 379,273,489 290,871,448

8. Acceptance and Endorsements 657,783,310 630,428,397

9. Underwriting Commitment – –

10. Irrevocable Loan Commitment 4,399,207,139 4,456,584,140

11. Guarantee Against Counter Guarantee of International Rated Bank 81,381,176 86,280,752

12. Advance Payment Guarantee 577,137,630 637,478,803

13. Financial Guarantees – –

14. Contigent Liability Against Income Tax 138,252,700 104,852,085

15. Others – –

TOTAL 13,995,209,700 13,049,884,771


Interest IncomeFrom 16th July 2012 to 15th July 2013

Schedule 4.18


A. Interest on Loans, Advances & Overdrafts 4,636,675,822 4,504,895,230

1. Loans & Advances 2,326,909,639 2,166,606,990

2. Overdrafts 2,309,766,183 2,338,288,240

B. Interest on Investments 274,945,912 428,294,810

1. Government Securities 248,262,702 420,444,071

a. Treasury Bills 68,451,858 257,502,294

b. Development Bonds 179,810,844 162,941,777

c. National Saving Bonds – –

2. Foreign Securities – –

3. Nepal Rastra Bank Securities – –

4. Debenture & Bond 4,625,572 6,581,843

5. Interest on Inter-bank Lending 22,057,638 1,268,896

a. Bank/Financial Institutions 22,057,638 1,268,896

b. Other Institutions – –

C. Agency Balance 25,062,231 26,737,122

1. Local Banks/Financial Institutions – –

2. Foreign Banks 25,062,231 26,737,122

D. Money at Call & Short Notice 240,107 71,253

1. Local Banks/Financial Institutions – –

2. Foreign Banks 240,107 71,253

E. Others – –

1. Certificate of Deposits – –

2. Inter Bank/Financial Institution Loan – –

3. Others – –

TOTAL 4,936,924,072 4,959,998,415


Commission and DiscountsFrom 16th July 2012 to 15th July 2013

Schedule 4.20


A. Bills Purchased & Discounted 16,968,313 3,748,586

1. Local 1,260,568 1,002,315

2. Foreign 15,707,745 2,746,271

B. Commission 219,123,108 198,583,750

1. Letter of Credits 47,315,444 37,216,798

2. Letter of Guarantees 43,548,757 43,219,400

3. Collection Fees 11,696,709 6,839,686

4. Remmittance Fees 70,549,686 75,836,219

5. Credit Card – –

6. Share Underwriting/Issue com. – –

7. Government Transaction 1,020,000 765,000

8. Exchange Commission – –

9. Batta 44,992,512 34,706,647

C. Others 30,729,493 31,237,465

TOTAL 266,820,914 233,569,801

Interest ExpensesFrom 16th July 2012 to 15th July 2013

Schedule 4.19


A. Interest on Deposits 2,175,138,341 2,856,347,883

1. Fixed Deposits 1,039,130,300 1,629,008,229

1.1 Local Currency 1,036,968,040 1,627,500,110

1.2 Foreign Currency 2,162,260 1,508,119

2. Saving Deposits 719,674,812 601,093,286

2.1 Local Currency 718,366,390 599,585,167


3. Call Deposits 416,333,229 626,246,368

3.1 Local Currency 359,744,239 609,871,122


4. Certificate of Deposits – –

B. Interest on Loans 4,044,027 16,986,799

1. Debenture & Bond 3,596,619 14,621,918

2. Loan from NRB – 2,343,055

3. Inter-Bank Loan 447,408 21,826

4. Other Organisation – –

5. Other Loan – –

C. Others – –

TOTAL 2,179,182,368 2,873,334,682


Staff ExpensesFrom 16th July 2012 to 15th July 2013

Schedule 4.23


1. Salary 259,932,190 223,155,703

2. Allowances 30,077,823 25,589,304

3. PF Contributions 24,776,614 20,628,104

4. Training 1,488,497 1,938,143

5. Uniform 5,804,142 2,452,121

6. Medical 1,405,498 1,157,100

7. Insurance 6,819,281 5,811,735

8. Gratuity 90,197,451 36,465,177

9. Others

a) Dashain Expenses 18,546,251 17,100,010

b) Leave Encashment 13,903,386 9,894,217

c) Leave Travel Assistance 8,858,152 7,858,390

TOTAL 461,809,285 352,050,004

Exchange Gain/(Loss)From 16th July 2012 to 15th July 2013

Schedule 4.22


A. Exchange Rate Difference 6,812,856 (6,836,346)

B. Foreign Exchange Trading (except batta) 92,092,513 116,515,667

TOTAL 98,905,369 109,679,321

Other Operating IncomeFrom 16th July 2012 to 15th July 2013

Schedule 4.21


1. Safe Deposit Vault Rental Income 6,831,550 5,323,011

2. Credit Card Issue and Renewals – –

3. ATM Card Issue and Renewals 86,667,774 45,473,899

4. Telex / T.T. 12,618,676 10,981,157

5. Service Charges 89,873,080 73,791,372

6. Renewal Charges 11,905,232 10,283,107

7. Others 41,488,994 33,969,839

TOTAL 249,385,306 179,822,385


Operating ExpensesFrom 16th July 2012 to 15th July 2013

Schedule 4.24


1. House Rent 61,150,381 56,329,677

2. Electricity & Water 15,725,653 12,702,563

3. Repair & Maintenance – –

A. Building 705,118 945,630

B. Vehicles 2,511,616 2,464,286

C. Others – –

4. Insurance Premium 31,013,595 20,595,395

5. Postage, Telex, Telephone, Fax 29,156,874 31,862,500

6. Office Equipment/Furniture & Maintenance 11,705,136 10,714,834

7. Traveling Expenses 9,746,432 9,047,580

8. Printing & Stationeries 18,115,316 15,550,975

9. Newspaper & Magazine 546,250 612,311

10. Advertisement 25,165,554 29,037,202

11. Legal Expenses 1,427,219 967,368

12. Donation 615,385 692,482

13. Board Expenses – –

A. Meeting Fee 940,000 1,074,000

B. Other Expenses 2,584,193 2,081,026

14. Annual General Meeting Expenses 2,126,113 2,237,445

15. Audit Expenses – –

A. Audit Fee 225,000 200,000

B. Other Expenses 881,875 588,985

16. Remmittance Expenses 26,325,660 15,276,945

17. Depreciation 66,119,916 71,110,047

18. Pre-operating Expenses Write Off – –

19. Debenture /Share Issue Expenses 1,967,275 233,366

20. TSA Fee and Expenses Reimbursement 25,557,498 26,008,204

21. Entertainment 7,361,997 6,163,013

22. Amortization 24,621,183 27,732,518

23. Security Expenses 29,601,999 27,273,767

24. Loan Insurance Premium – –

25. Commission & Discounts – –

26. Others

A) Business Promotion 19,309,348 16,673,552

B) Consultancy Charges 456,689 3,614,802

C) Registration/Renewals 7,792,467 5,368,125

D) Misc. 10,894,331 9,554,283

E) Fuel & Lubricant 28,922,686 21,202,312

F) Assets Written Off 266,409 599,266

G) A.T.M. Related Expenses 14,062,574 11,587,408

H) Temporary Staff Wages 12,010,626 12,724,752

I) Software Contract Expenses 13,156,374 9,697,145

J) Electronic Cheque Clearing 2,781,280 –

K) Loss on Sale of Non Banking Assets – –

L) Branch Less Banking 294,230 617,534

M) Disaster Recovery Site 3,643,650 4,151,650

Total 509,487,902 467,292,948


Schedule 4.25


1. Increase In Loan Loss Provision 98,807,333 252,054,098

2. Increase In Provision For Investment – –

3. Provision For Non-banking Assets – –

4. Provision Against Other Assets – –

Total 98,807,333 252,054,098

Schedule 4.27


1. Write-back From Loan Loss Provision 88,312 150,348,539

2. Write-back From Provision for NBA – –

3. Write-back From Provision For Investment – –

4. Write-back From Other Provision – –

Total 88,312 150,348,539

Provision for Possible LossFrom 16th July 2012 to 15th July 2013

Write Back from Provision for Possible LossFrom 16th July 2012 to 15th July 2013

Gain/(Loss) from Non-Operating ActivitiesFrom 16th July 2012 to 15th July 2013

Schedule 4.26


1. Gain/(Loss) on Sale of Investment – –

2. Gain/(Loss) on Sale of Assets (118,993) 19,840,865

3. Dividend – –

A. Rural Development Banks 2,393,293 –

B. Credit Information Center – 482,904

4. Subsidy Received From NRB – –

A. Compensation of Branch Loss – –

B. Interest Compensation – –

C. Exchange Counters – –

5. Others

A. House Rent 6,062,301 4,832,080

Total Gain / (Loss) 8,336,601 25,155,849


Profit/(Loss) from Extra-Ordinary TransactionFrom 16th July 2012 to 15th July 2013

Schedule 4.28


1. Recovery of Loss Loan – –

2. Expenses for Retirement Package – –

3. Write off of Bad Loan (Schedule 4.28 ‘Ka’) 88,312 –

4. Other Income/Expenses – –

TOTAL 88,312 –

Name of the borrower

Loans to Directors, CEO, Promoters, Employees and Shareholders holdingmore than 1% ShareAs on Ashad 31, 2070 (15th July 2013)

Details of Loans & Advances including Bills Purchased and discounted provided to Directors, CEO, Promoters, Employees andShareholders holding more than 1% shares (included in total loans & advances) and their undivided family members or Companyin which such family members are the Managing Agent or Guarantor of such company is as under:

No Loans have been provided to any of the above mentioned group/person except the staff loans to employees under thestaff loan schemes.

1. Directors – – – – – – –2. Chief Executive – – – – – – –3. Promoters – – – – – – –4. Employee – – – – – – –5. Shareholders – – – – – – –6. Holding more than 1% share – – – – – – –Total – – – – – – –

Upto Previous Year

Principal Interest

This Year Recovery

Principal Interest

Schedule 4.29

AdditionThis Year

Outstanding

Principal Interest

Details of Loan Written OffFrom 16th July 2012 to 15th July 2013

Schedule 4.28(ka)

S.No. Type of LoanAmount

Written off

Nature ofSecurity &

Amount

Basis ofValuation of

Security

SancitioningAuthority/

Level

Action takento Recover the

Loan Remarks

1. Working Capital –

2. Project Finance –

3. Fixed Term Loan –

4. Personal Loan 88,312

5. Others –

Total 88,312


Capital Adequacy TableAs on Ashad 31, 2070 (15th July, 2013)

Schedule 4.30 (Ka1)(Rs. in ‘000)


1.1 RISK WEIGHTED EXPOSURES 48,349,497 40,711,125a. Risk Weighted Exposure for Credit Risk 44,793,263 37,792,502b. Risk Weighted Exposure for Operational Risk 3,356,986 2,832,941c. Risk Weighted Exposure for Market Risk 199,249 85,682

Adjustments under Pillar IIOverall risk management policies and precedures are notsatisfcatory. Add: 2% of RWE (6.4 a 9) 966,990 814,222Add: RWE equvalent to reciprocal of capital charge of 2%of gross income. (6.4 a7) 517,558 –Add: …% of the total deposit due to insufficientliquid Assets (6.4 a6)

Total Risk Weighted Exposures (after adjustment under Pillar II) 49,834,045 41,525,3471.2 CAPITAL

Core Capital (Tier 1) 4,639,762 3,990,926a. Paid up Equity Share Capital 1,601,126 1,231,636b. Proposed Bonus Equity Shares 160,113 369,491c. Share Premium 18,555 18,555d. Irredeemable Non- cumulative preference shares – –e. Statutory General Reserves 1,615,791 1,021,567f. Retained Earnings 559,466 437,524g. Reserve for Deferred Tax 99,453 73,780h. Un-audited current year cumulative profit – –i. Debenture Redemption Reserve 46,885 300,000j. Capital Adjustment Reserve 367,147 367,147k. Capital Redemption Reserve 140,000 140,000l. Other Free Reserve 31,226 31,226m. Less: Goodwill – –n. Less: Miscellaneous Expenditure not written off – –o. Less: Investment in Equity in licensed Financial Institutions – –p. Less: Investment in Equity of Institutions with vested interests – –q. Less: Investment in Equity of institutions with excess of limits – –r. Less: Investments arising out of underwriting commitments – –s. Less: Reciprocal crossholdings – –t. Less: Other Deductions – –

Adjustments under Pillar IILess: Shortfall in Provision (6.4 a 1)Less: Loans and Facilities extended to Related Partiesand Restricted lending (6.4 a 2)

Supplementary Capital (Tier 2) 1,137,920 583,827a. Cumulative and/or Redeemable Preference Share 160,000 160,000b. Subordinated Term Debt 421,960 –c. Hybrid Capital Instruments – –d. General Loan Loss provision 439,216 363,093e. Investment Adjustment Reserve 3,476 3,476f. Assets Revaluation Reserve – –g. Exchange Equalization Reserve 24,607 22,903h. Additional Loan Loss Provision 88,661 34,355i. Other Reserves – –Total Capital Fund (Tier I and II) 5,777,682 4,574,753

1.3 CAPITAL ADEQUACY RATIOSTier 1 Capital to Total Risk Weighted Exposures 9.31 9.61Tier 1 and Tier 2 Capital to Total Risk Weighted Exposures 11.59 11.02


Schedule 4.30 (Kha)(Rs. in ‘000)

Contd……

Balance Sheet Exposures (A)

2070 Ashadh End

NetValue

RiskWeighted

Exposures

Previous Year

BookValue

(A)

SpecificProvision

(B)

EligibleCRM(C)

Net Value(D=A-B-C)

RiskWeight (%)

(E)

Risk WeightedExposures

(F = D x E)

Risk Weighted Exposure For Credit RiskAs on Ashad 31, 2070 (15th July, 2013)

Cash Balance 1,723,209 - - 1,723,209 0% - 1,700,992 -

Balance With Nepal Rastra Bank 8,205,090 - - 8,205,090 0% - 8,159,754 -

Gold - - - - 0% - - -

Investment in Nepalese Government Securities 6,988,310 - - 6,988,310 0% - 6,068,876 -

All other Claims on Government of Nepal 425,661 - - 425,661 0% - 318,183 -

Investment in Nepal Rastra Bank securites - - - - 0% - - -

All other Claims on Nepal Rastra Bank - - - - 0% - - -

Claims on Foreign Government Securities (ECA Rating 0-1) - - - - 0% - - -

Claims on Foreign Government Securities (ECA- 2) - - - - 20% - - -

Claims on Foreign Government Securities (ECA-3) - - - - 50% - - -

Claims on Foreign Government Securities (ECA-4-6) - - - - 100% - - -

Claims on Foreign Government Securities (ECA-7) - - - - 150% - - -

Claims On BIS MIFECBEC and on Multilateral Development Banks

(MDB's) recognized by the framework - - - - 0% - - -

Claims on Other Multilateral Development Banks - - - - 100% - - -

Claims on Public Sector Entity (ECA 0-1) - - - - 20% - - -

Claims on Public Sector Entity (ECA 2) - - - - 50% - - -

Claims on Public Sector Entity (ECA 3-6) - - - - 100% - - -

Claims on Public Sector Entity (ECA 7) - - - - 150% - - -

Claims on domestic banks that meet capital adequacy requirements 1,245,923 - - 1,245,923 20% 249,185 872,460 174,492

Claims on domestic banks that do not meet capital adequacy requirements 21,697 - - 21,697 100% 21,697 22,072 22,072

Claims on Foreign Bank (ECA Rating 0-1) 2,613,640 - - 2,613,640 20% 522,728 1,904,615 380,923

Claims on Foreign Bank (ECA Rating 2) - - - - 50% - - -

Claims on Foreign Bank (ECA Rating 3-6) - - - - 100% - - -

Claims on Foreign Bank (ECA Rating 7) - - - - 150% - - -

Claims on foreign bank incorporated in SAARC region operating with

a buffer of 1% above their respective regulatory capital requirement 678,700 - - 678,700 20% 135,740 154,038 30,808

Claims on Domestic Corporates 20,540,162 - 833,717 19,706,445 100% 19,706,445 13,945,095 13,945,095

Claims on Foreigns Corporates (ECA 0-1) - - - - 20% - - -

Claims on Foreigns Corporates (ECA 2) - - - - 50% - - -

Claims on Foreigns Corporates (ECA 3-6) - - - - 100% - - -

Claims on Foreigns Corporates (ECA 7) - - - - 150% - - -

Regulatory Retail Portfolio (Not Overdue) 11,209,934 - - 11,209,934 75% 8,407,451 10,333,369 7,750,027

Claims fulfilling all criterion of regulatory retail except granularity - - - - 100% - - -

Claims secured by residental properties 4,639,020 - - 4,639,020 60% 2,783,412 3,783,909 2,270,345

Claims not fully secured by residental properties - - - - 150% - - -

Claims secured by residental properties (overdue) 14,996 14,996 - - 100% - - -

Claims secured by Commercial real estate 3,897,511 - - 3,897,511 100% 3,897,511 4,874,535 4,874,535

Past due claims (except for claim secured by residential properties) 261,203 261,203 - - 150% - - -

High Risk claims (Venture capital private equity investments

personal loans and credit card receivables) 2,194,647 500 - 2,194,147 150% 3,291,221 1,721,117 2,581,676

Investment in equity of institutions listed in the stock exchange 17,793 - - 17,793 100% 17,793 102,720 102,720

Investment in equity of institutions not listed in the stock exchange 8,056 1600 - 6,456 150% 9,683 6,456 9,684

Staff Loan Secured by Residential Property 448,463 448,463 60% 269,078 298682 179,209

Interest Receivable/Claim on Government Securities 28,967 28,967 0% - 38,564 -

Cash in transit and other cash items in process of collection 37 - - 37 20% 7 - -

Other Assets 1,384,308 - 122,826 1,261,482 100% 1,261,482 1,323,093 1,323,093

TOTAL 66,547,326 278,299 956,543 65,312,484 40,573,432 55,628,530 33,644,678


Schedule 4.30 (Kha)(Rs. in ‘000)

Revocable Commitments – – – – 0% – – –

Bills under Collection 379,273 – – 379,273 0% – 290,871 –

Forward Exchange Contract Liabilities – – – – 10% – – –

LC Commitments with Original Maturity Up to

6 months (domestic) 5,267,841 – 549,725 4,718,116 20% 943,623 4,183,906 836,781

ECA Rating 0-1 – – – – 20% – – –

ECA Rating 2 – – – – 50% – – –

ECA Rating 3-6 – – – – 100% – – –

ECA Rating 7 – – – – 150% – – –

LC Commitments with Original Maturity Over

6 months (domestic) 2,017 – 334 1,683 50% 841 69,501 34,751

ECA Rating 0-1 – – – – 20% – – –

ECA Rating 2 – – – – 50% – – –

ECA Rating 3-6 – – – – 100% – – –

ECA Rating 7 – – – – 150% – – –

Bid Bond, Performance Bond and Counter

guarantee (domestic) 2,573,697 – 194,592 2,379,105 50% 1,189,553 2,224,875 1,112,438

ECA Rating 0-1 – – – – 20% – – –

ECA Rating 2 – – – – 50% – – –

ECA Rating 3-6 – – – – 100% – – –

ECA Rating 7 – – – – 150% – – –

Underwriting commitments – – – – 50% – – –

Lending of Bank's Securities or Posting of Securities as Collateral – – – – 100% – – –

Repurchase Agreements Assets sale with recourse

(including repo/reverse repo) – – – – 100% – – –

Advance Payment Guarantee 577,138 – 33,477 543,661 100% 543,661 605,877 605,877

Financial Guarantee – – – – 100% – – –

Acceptances and Endorsements 657,783 – 133,725 524,058 100% 524,058 561,808 561,808

Unpaid portion of Partly Paid Shares and Securities – – – – 100% – – –

Irrevocable Credit Commitments (Short Term) 4,399,207 – – 4,399,207 20% 879,841 4,456,584 891,317

Irrevocable Credit Commitments (Long Term) – – – – 50% – – –

Other Contingent Liabilities 138,253 – – 138,253 100% 138,253 104,852 104,852

Unpaid Guarantee Claims – – – – 200% – – –

TOTAL 13,995,210 – 911,853 13,083,357 4,219,830 12,498,274 4,147,823

Total RWE for Credit Risk Before Adjustment (A)+ (B) 80,542,536 278,299 1,868,396 78,395,841 44,793,263 68,126,804 37,792,502

Adjustments under Pillar II – – – – – – –

Add: 10% of the loan and facilities in excess of

Single Obligor limits (6.4 a 3) – – – – – – –

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 Bank's Adjustment of Pillar II) 44,793,263 68,126,804 37,792,502

Off Balance Sheet Exposures (B)

2070 Ashadh End

NetValue

RiskWeighted

Exposures

Previous Year

Gross BookValue

(A)

SpecificProvision

(B)

EligibleCRM(C)

Net Value(D=A-B-C)

RiskWeight (%)

(E)

Risk WeightedExposures

(F = D x E)

Risk Weighted Exposure For Credit RiskAs on Ashad 31, 2070 (15th July, 2013)


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tes

833,

717

––

––

––

––

833,

717

Clai

ms o

n Fo

reig

n Co

rpor

ates

(ECA

0-1

)–

––

––

––

––

–Cl

aim

s on

Fore

ign

Corp

orat

es (E

CA 2

)–

––

––

––

––

–Cl

aim

s on

Fore

ign

Corp

orat

es (E

CA 3

-6)

––

––

––

––

––

Clai

ms o

n Fo

reig

n Co

rpor

ates

(ECA

7)

––

––

––

––

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Regu

lato

ry R

etai

l Por

tfolio

(Not

Ove

rdue

)–

––

––

––

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gula

tory

Ret

ail P

ortfo

lio (O

verd

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––

––

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ms S

ecur

ed b

y Re

siden

tal P

rope

rties

(With

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ditio

n)–

––

––

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aim

s Sec

ured

by

Resid

enta

l Pro

perti

es (W

ithou

t Con

ditio

n)–

––

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secu

red

Porti

on o

f Cla

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ecur

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y Re

siden

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rties

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ms S

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y Re

siden

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)–

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aim

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ured

by

Com

mer

cial R

eal E

stat

e–

––

––

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st D

ue C

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t for

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ed b

y Re

siden

tial P

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rties

)–

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gh R

isk C

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s(V

entu

re C

apita

l, Pr

ivat

e Eq

uity

Inve

stm

ents

,Pe

rson

al L

oans

and

Cre

dit C

ard

Rece

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les)

––

––

––

––

––

Inve

stmen

ts in

Equit

y of I

nstit

ution

s Not

Liste

d in

The S

tock

Exch

ange

––

––

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––

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Inve

stmen

ts in

Equi

ty o

f Ins

titut

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isted

in Th

e Sto

ck Ex

chan

ge–

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ther

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ets

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ttac

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t)12

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–12

2,82

6 T

otal

956,

543

––

––

––

––

956,

543


Elig

ible

Cre

dit

Risk

Mit

igan

tsA

s on

31

Ash

adh

2070

(15

Jul

y 20

13)

Sche

dule

4.3

0 (G

a)(R

s. i

n ‘0

00)

Cred

it E

xpos

ures

Dep

osit

sw

ith

Bank (a)

Dep

osit

sw

ith

Othe

rBa

nks/

FI(b

)Go

ld (c)

Govt

. & N

RBSe

curi

ties (d)

G’te

e of

Gpvt

. of

Nep

al (e)

Sec/

G’te

eof

Oth

erSo

vere

igns (f)

G’te

e of

Dom

esti

cBa

nks

(g)

G’te

e of

MDBs (h)

Sec/

G’te

eof

For

eign

Bank (i)

Tota

l

Off

Bal

ance

She

et E

xpos

ure

––

––

––

––

––

For

ward

Exc

hang

e Co

ntra

ct L

iabi

litie

s–

––

––

––

––

– LC

Com

mitm

ents

With

Orig

inal

Matu

rity U

p to

6 m

onth

s (do

mesti

c)54

9,72

5–

––

––

––

–54

9,72

5

EC

A Ra

ting

0-1

––

––

––

––

––

ECA

Ratin

g 2

––

––

––

––

––

ECA

Ratin

g 3-

6–

––

––

––

––

–

EC

A Ra

ting

7–

––

––

––

––

– L

C Co

mmitm

ents

With

Orig

inal

Matu

rity

Over

6 m

onth

s (do

mest

ic)

334

––

––

––

––

334

ECA

Ratin

g 0-

1–

––

––

––

––

–

EC

A Ra

ting

2–

––

––

––

––

–

EC

A Ra

ting

3-6

––

––

––

––

––

ECA

Ratin

g 7

––

––

––

––

––

Bid

Bon

d, P

erfo

rman

ce B

ond

Coun

ter G

uara

ntee

(dom

estic

)19

4,59

2–

––

––

––

–19

4,59

2

EC

A Ra

ting

0-1

––

––

––

––

––

ECA

Ratin

g 2

––

––

––

––

––

ECA

Ratin

g 3-

6–

––

––

––

––

–

EC

A Ra

ting

7–

––

––

––

––

– U

nder

writi

ng C

omm

itmen

ts–

––

––

––

––

– L

endi

ng o

f Ban

k's S

ecur

ities

or P

ostin

g of

Sec

uriti

es a

s col

later

al–

––

––

––

––

– R

epur

chas

e Ag

reem

ents

, Ass

ets

sale

with

reco

urse

(incl

udin

g re

po/r

ever

se re

po)

––

––

––

––

––

Adv

ance

Pay

men

t Gua

rant

ee33

,477

––

––

––

––

33,4

77 F

inan

cial

Gua

rant

ee–

––

––

––

––

– A

ccep

tanc

es a

nd E

ndor

sem

ents

13

3,72

5–

––

––

––

–13

3,72

5 U

npai

d Po

rtio

n of

Par

tly P

aid

Shar

es a

nd S

ecur

ities

––

––

––

––

––

Irre

voca

ble

Cred

it Co

mm

itmen

ts–

––

––

––

––

– O

ther

Con

tinge

nt L

iabi

litie

s–

––

––

––

––

–To

tal

911,

853

––

––

––

––

911,

853

Gran

d To

tal

1,86

8,39

6–

––

––

––

–1,

868,

396


Risk Weighted Exposure For Operational RiskAs on 31 Ashadh 2070 (15 July 2013)

Schedule 4.30 (Gha)(Rs. in ‘000)

ParticularsF.Y.

(2066/067)

Previous Financial Year of Ashadh end

F.Y.(2067/068)

F.Y.(2068/069)

2069 Ashadhend

Net Interest Income 1,529,661 1,795,151 2,086,664

Commission and Discount Income 208,123 203,468 233,570

Other Operating Income 142,311 148,062 179,882

Exchange Fluctuation Income 47,880 46,259 109,679

Additional Interest Suspense During the Period (14,740) 20,005 (22,004)

Gross Income (A) 1,913,235 2,212,945 2,587,791

Alfa (B) 15% 15% 15%

Fixed Percentage of Gross Income [C=(A x B)] 286,985 331,942 388,169

Capital Requirement for Operational Risk (D) (Average of C) 335,699 283,294

Risk Weight (Reciprocal of Capital Requirement of 10%) in Times (E) 10 10

Equivalent Risk Weight Exposure [F=(D x E)] 3,356,986 2,832,942

Risk Weighted Exposure For Market RiskAs on 31 Ashadh 2070 (15 July 2013)

Schedule 4.30 (Nga)(Rs. in ‘000)

ParticularsOpen Position

(FCY)

2070 Ashadh End

Open Position(NPR)

Relevant OpenPosition (NPR)

Relevant openposition of

2069 Ashadhend (NPR)

1. Indian Rupees 219,020 350,431 350,431 133,6622. U.S. Dollor 121 11,591 11,591 11,4193. Euro (137) (17,111) 17,111 9,1834. Pound Sterling 94 13,553 13,553 12,9905. Swish Frank 12.5 1,262 1,262 1256. Australian Dollor 45 3,872 3,872 9237. Canadian Dollor 1.80 165 165 1598. Singapore Dollor 1.73 131 131 1069. Japanese Yen 292 280 280 97110. Hongkong Dollar 1 14 14 4811. Chinese Yuan 4 69 69 19912. Thailand Bhat 3.00 9 9 1,58113. Qatari Riyal 0.25 7 7 –14. Korean Won 18.00 1 1 –

Total Open Position (a) – 364,275 398,498 171,364Fixed % (b) – – 5% 5%Capital Charge for Market Risk c= a x b – – 19,925 8,568Risk Weight (reciprocal of capital – – 10 10requirement of 10%) in times (d)Equivalent Risk Weight Exposure (c x d) = (e) – – 199,249 85,682


1 Net Profit/Total Income % 24.92 16.49 14.27 14.36 17.69

2 Per Share Earning (after tax income) Rs. 99.99 100.16 83.18 88.55 91.88

3 Market Price Per Share Rs. 2455 1630 1094 1033 1591

4 Price/Earning Ratio Times 24.55 16.27 13.15 11.67 17.32

5 Dividend on Share- Bonus Share % 30 30 10 30 10

6 Cash Dividend % 30 30 50 – 50

7 Interest Income/Loans & Advances % 7.57 9.95 12.22 12.30 10.49

8 Employee Expenses/Total Operating Expenses % 12.53 10.52 9.13 9.53 14.66

9 Interest Expenses/Total Deposits & Borrowing % 2.98 4.18 6.05 5.75 3.72

10 Exchange Income/Total Income % 2.44 – 0.05 – 0.08

11 Staff Bonus/Total Employee Expenses % 47.68 52.48 45.41 44.26 45.49

12 Net Profit/Loans & Advances % 2.61 2.95 2.94 2.98 3.33

13 Net Profit/Total Assets % 1.73 2.09 2.10 2.11 2.39

14 Total Loans & Advances/Total Deposits % 73.43 76.24 76.98 73.22 76.57

15 Total Operating Expenses/Total Assets % 4.04 5.20 6.95 6.62 4.79

16 Capital Adequacy Ratio:

a) Core Capital % 8.52 8.39 8.46 9.61 9.31

b) Supplementary Capital % 2.82 2.38 1.97 1.41 2.28

c) Total Capital Funds % 11.34 10.77 10.43 11.02 11.59

17 Cash Reserve Ratio (CRR) % 14.26 15.53 9.55 17.22 15.19

18 NPAs/Total Loans & Advances % 0.48 0.16 0.34 0.84 0.62

19 Weighted Average Interest Rate Spread % 4.40 4.78 4.60 5.32 5.68

20 Book Net Worth (Rs. in Lacs) Rs. 22054 27571 36407 40173 46678

21 Total Shares Number 6388210 8304673 11196095 12316357 16011264

22 Total Employee Number 534 568 586 625 643

23 Others

- Per Employee Business (Rs. in Lakh) Rs. 1082 1146 1242 1386 1585

- Employee Expenses/Total Income % 7.29 4.50 4.49 4.65 5.56

Main Indicators Schedule 4.31

Particulars

Financial Years

Indicator 2008/09 2009/10 2010/11 2012/132011/12

Note: CRR Amount has been taken as Year end Balance.


1. General Information

Everest Bank Limited (Bank) is a limited liability company domiciled in Nepal. Its registered office isat Lazimpat, Kathmandu, Nepal. The Bank is listed with Nepal Stock Exchange Ltd. and provides fullcommercial banking services as licensed by Nepal Rastra Bank (NRB) (Central Bank). The Bank hasentered into Technical Services Agreement (TSA) for the equity & management participation with PunjabNational Bank Ltd, New Delhi, India.

2. Basis of Preparation

The financial statements of the Bank have been prepared on historical cost convention basis in conformitywith Generally Accepted Accounting Principles, prevailing accepted banking norms/practices, applicableNepal Accounting Standards issued by the Institute of Chartered Accountants of Nepal, provisions ofBanks and Financial Institutions Act and directives issued by the NRB.

3. Fixed Assets, Depreciation and Amortization

a) Fixed assets are valued at cost of purchase/construction plus expenses incurred which are incidentalto such purchase/construction. Purchase of items of durable (capital) nature costing Rs. 5,000 orless has been charged to Profit and Loss Account.

b) Depreciation on fixed assets (except for leasehold development and computer software) are chargedto Profit & Loss Account on reducing balance method, computed by applying the rates and methodas prescribed by Schedule 2 of the Income Tax Act, 2058.

c) Leasehold development expenses have been amortized in equal installment over the period of leaseor 5 years whichever is longer.

d) Cost incurred for acquiring computer software “Finacle” has been amortized in ten equal yearlyinstallments and other software are amortized in five equal yearly installments.

4. Income Tax

Income tax is provided on the basis of the taxable income for the year computed under self assessmentin accordance with the provision of Income Tax Act, 2058.

Deferred tax is recognized and provided for on timing difference between taxable income and accountingincome subject to consideration of prudence.

Deferred tax assets are not recognized unless there is virtual / reasonable certainty that there will besufficient future taxable income available to realize such assets.

5. Investments

Investments made in shares of listed companies are stated at cost or market price whichever is less.

Shares which are not listed in the Stock Exchange are stated at cost.

Investment made in Government Treasury Bills/Bonds is valued at cost. The excess of the cost over facevalue of long term government bond is proportionately amortized over the maturity period of the bondby adjusting it to the interest booked as income from such bonds.

6. Foreign Exchange Transactions

Assets and liabilities denominated in foreign currencies are revalued at the mid-rate on daily basis.

Gain/loss on the foreign exchange transactions is recognized as income/expense in the profit and lossaccount and included under exchange trading gain/loss.

Gains/losses arising due to fluctuation in exchange rates of different foreign currencies is accountedfor and shown as Revaluation Gain/ (Loss). 25% of such revaluation gain is transferred to ExchangeFluctuation Reserve through Profit and Loss Appropriation Account as per the directives issued by NepalRastra Bank.

7. Non-Banking Assets

Collateral securities taken over by the Bank during the process of recovery of loans are transferred toNon-Banking Assets. Non Banking Assets are valued at lower of the total amount outstanding (includinginterest) or market value of the assets acquired and is stated at net of provision made for such assetsas per the directive issued by NRB. The surplus or deficit arising on sale of such asset is taken to Profit& Loss Account in the year of sale.

Schedule 4.32SIGNIFICANT ACCOUNTING POLICIES


8. Recognition of Income

a) Interest Income

Interest on loans and advances are accounted on accrual basis by credit to interest suspense

account. As per unified directive issued by NRB, interest on loans and advances are recognized as

revenue on cash realization with the exception of interest capitalization on project financing.

Interest income on investment made on government securities, bonds and foreign placement are

recognized on accrual basis.

b) Commissions received on account of LCs, Guarantees etc. are recognized on cash basis.

c) Dividend on investment is recognized on cash basis at net of withholding tax.

9. Loan Loss Provision and Loan Write off

Loan Loss Provision is made on the basis of classification of loans & advances in accordance with the

directives issued by the NRB.

The Bank has a policy to write off unrecoverable loan after appraisal and due approval of the Board of

Directors on case to case basis. The amount of loans written off is charged to Profit & Loss Account

and the corresponding amounts of loan loss provision made on such loan account are written back in

the Profit & Loss Account.

10. Employees Retirement Benefit

a) Gratuity

Gratuity payable to eligible employees on retirement/termination is accounted for on accrual basis

and the amount of liability on this account are determined in accordance with the Bank’s rule.

Gratuity liability is not funded.

b) Leave Encasement

Leave encashment payable to the employees are charged to revenue on cash basis.

c) Provident Fund

Contributions to the employees’ provident fund are made regularly on monthly basis which are

charged to revenue. The above together with the employees’ contribution are deposited in a separate

individual interest bearing account with the Bank.

11. Bonus

Staff bonus is provided at 10% of net profit before tax (after charging the bonus) as per Bonus Act,

2030.

12. Contingent Liabilities

All letter of credit, bank guarantee and forward exchange contract liabilities have been shown in full

amount as contingent liabilities in accordance with the directive issued by Nepal Rastra Bank.

Letter of Credits (LCs) denominated in foreign currencies, are stated at the equivalent Rupees calculated

at the current exchange rate.

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.

13. Dividend and Proposed Bonus Shares

Dividend and proposed bonus shares are provided as proposed by the Board of Directors pending approval

by NRB and Annual General Meeting.


1. Dividend and Proposed Bonus SharesThe Board of Directors has proposed cash dividend of Rs. 50 per share, bonus share of Rs. 10/- per share andRs. 7/- on convertible preference shares.

Proposed cash dividend includes Rs. 8,426,981/- on account of dividend tax on proposed bonus share.

2. Reconciliation Position

a) Inter Branch ReconciliationInter-branch transactions have been reconciled and are up to date. The summary of age-wise amount ofthe pending reconciliation items are as under:

Schedule 4.33NOTES TO ACCOUNT

b) Reconciliation of Agency BanksAgency bank accounts have been reconciled and are up to date. The summary of the age-wise amount ofthe reconciliation pending amount are as under:

(Rs. in Lacs)

Particulars Debit Pending Credit Pending

Less than 3 months – –

3 to 6 months - -

More than 6 months 6.56 71.67

Currency

Statement PendingLedger Pending

Debit Credit Debit Credit

(Amount in ‘000)

Sterling PoundUpto 1 Year – – 0.24 1.53

More than 1 year to 3 years – – – 0.18

More than 3 years – 3.12 – 4.96

US DollarUpto 1 Year 2826.66 496.68 454.44 484.70

More than 1 year to 3 years – 2.02 – 27.66


EUROUpto 1 Year – 4.30 0.22 6.01



Japanese YenUpto 1 Year – – 17.50 –

More than 1 year to 3 years – 140.13 – –

More than 3 years – – – –

Australian DollarUpto 1 Year 11.27 – – 11.62


More than 3 years – – – 2.87

Indian RupeeUpto 1 Year 18.92 14949.74 30748.88 32313.52

More than 1 year to 3 years – 459.43 404.29 6251.23

More than 3 years 10.03 94354.10 20.05 10207.55


3. Increase/decrease in Loans & Advances

The following depicts the movement of the balances of Loans & Advances during the year:

4. Change in Deposit Liabilities

The following depicts the percentage change in deposit between the balances as at Ashad 31, 2070 (July 15,

2013) and Ashad 31, 2069 (July 15, 2012).

5. Average Interest Spread Rate

During the year, the average yield rate on interest bearing assets is 10.21% (Previous year 11.98%). The average

cost of deposit for the year is 4.53% (Previous Year 6.66%). Accordingly, the average spread for the financial

year stands at 5.68% (Previous Year 5.32%).

6. Leasehold Improvements and Computer Software

The expenses incurred in the renovation and modification of the leased properties and the cost of software

purchased are capitalized in the Leasehold assets and Software respectively.

The above assets are amortized as per the policies stated in the significant accounting policies. The balances

in above account pending amortization are as under:

a) Leasehold Assets

(Rs. in Lacs)

Particulars Current Year Previous Year

Balance as on Ashad 31, 2069 (July 15, 2012) 366,168 316,618

Loans Disbursed during the year 1,933,509 1,170,450

Recovered during the year (1,857,699) (1,120,900)

Balance as on Ashad 31, 2070 (July 15, 2013) 441,978 366,168

Write off during the year

Principal 0.88 Nil

Interest 0.45 0.38

(Rs. in Lacs)

Types of Deposit Change %As at Ashad 31, 2069As at Ashad 31, 2070

Current 80,990 60,983 32.81

Margin 4,959 4,517 9.78

Saving 210,675 172,693 21.99

Fixed 141,048 130,075 8.44

Call 137,533 129,522 6.19

Others 1,999 2,272 (12.01)

Total 577,205 500,061 15.43

Particulars Current Year (Rs.) Previous Year (Rs.)

Opening Balance 41,921,056 44,273,125

Addition made during this year 8,362,978 20,758,570

Total 50,284,034 65,031,695

Amortized during the year 20,229,537 21,970,866

Disposed off during the year – 1,139,774

Closing Balance 30,054,497 41,921,056


b) Softwarei) Finacle

7. There is no over concentration of Assets and Liabilities of the Bank to an individual, a firm, a company or ina particular sector as specified by NRB. The highest concentration of loan in a single sector is 27.83% of totalloan (Previous year 30.95%) and concentration of deposit to a single institution is of total deposit 9.67%(Previous year 10.53%).

8. Non-Banking Assets (NBA)

The position of the Non-banking Assets of the Bank is as under:

9. Convertible Preference Share :

Bank issued Convertible Preference Share of Rs. 20 Crore on 7% for 15 years Ashwin 2064. 20% of initial amountwill be converted into ordinary share in every 3 years. Rs. 4 Crore has been already converted into ordinaryShare. Now Rs. 16.00 crore remains as Convertible Preference Shares.

10. Debenture and Debenture Redemption Reserve10.1 10 years of 8% debenture of Rs. 46.88 crores maturing on Jestha 2080 has been issued during this fiscal

year.

10.2 Rs. 4.69 crores has been appropriated through Profit & Loss Account to Debenture Redemption Reserve.Accumulated Balance of Rs. 30.00 Crore made on amount of Debenture Redemption Reserve against thedebenture issued earlier and already reedeomed have been transferred to General Reserve.

11. General ReserveAs required by the Bank and Financial Institution Act, 2063, 20% of the current year's net profit ofRs. 294,224,000 (Previous year Rs. 218,113,000) has been transferred to General Reserve through Profit andLoss Appropriation Account. In addition to mis Rs. 30.00 crore have been transfered from Debentur RedemptionReserve.

12. Staff Housing FundSince the Bank has been extending housing loan to the employees, provision for staff housing as required bythe Labour Act, 2048 has not been made.

ii) Others


Opening Balance 26,291,766 31,047,844

Addition made during this year – –

Total 26,291,766 31,047,844

Amortized during the year (4,756,079) (4,756,078)

Closing Balance 21,535,687 26,291,766


Opening Balance 3,344,055 3,404,375

Addition made during this year 389,850 1,573,500

Total 3,733,905 4,977,975

Amortized during the year (1,557,357) (1,633,820)

Balance at the end of the year 2,176,548 3,344,055


Opening Balance (at Cost) 51,786,587 51,786,587

Addition during the year – –

Disposed off during the year – –

Closing Balance (at Cost) 51,786,587 51,786,587

Total Provision 51,786,587 51,786,587

Balance (Net of Provision) Nil Nil


13. Exchange Fluctuation ReserveAs required by NRB directive, 25% of Revaluation Gain has to be transferred to Exchange Fluctuation Reservethrough Profit and Loss Appropriation Account. Accordingly Rs 1,704,000 (Previous year Rs. Nil) has beentransferred to this account. The bank has earned Rs 6,812,856 as exchange rate difference income during theyear under review (Previous Year Loss of Rs 6,836,346).

14. Liquidity RiskThe liquidity risk as on Ashad 31, 2070 (July 15, 2013) is set out in the Table of Liquidity Statement (FormatNo. 5.1) as prescribed by the Directives of Nepal Rastra Bank is given as under:

Assets1. Cash Balance 17,232 – – – – – – 17,2322. Balance with Banks & FIs 94,926 – – – – – – 94,9263. Investment in Foreign Banks – – 14,370 8,143 – – – 22,5134. Call Money – – – – – – – –5. Government Securities – 4,924 8,081 704 405 27,150 – 41,2656. Nepal Rastra Bank Bonds – – – – – 14,464 14,154 28,6187. Inter Bank & FI Lending – – – – – – – –8. Loans & Advances 31,459 8,735 41,714 12,796 14,214 9,878 323,183 441,9789. Interest Receivable – 41 54 15 6 160 80 35510. Reverse Repo – – – – – – – –11. Acceptance Receivable – – – – – – – –12. Payments under S.No. 20,21 & 22 22,214 9,455 36,083 9,252 5,962 7,279 44,530 134,77713. Others 322 1 4 6 1,116 27 8,336 9,812

Total (A) 166,153 23,156 100,306 30,917 21,703 58,958 390,283 791,476Liabilities

14. Current Deposits 8,595 4,297 4,297 – – – 68,760 85,94915. Saving Deposits (including call) 17,410 17,410 17,410 – – – 295,977 348,20816. Fixed Deposits 12,607 10,783 36,989 27,880 20,654 23,047 11,088 143,04717. Debentures/Bonds – – – – – – 4,688 4,68818. Borrowings 4,024 – – – – – – 4,024

Call/Short Notice – – – – – – – –Inter-bank/Financial Institutions 4,024 – – – – – – 4,024Refinance – – – – – – – –Others – – – – – – – –

19. Other Liabilities and Provisions 4,477 2,635 129 – – – 10,609 17,851Sundry Creditors 437 2,635 – – – – – 3,073Bills Payable 3,931 – – – – – – 3,931Interest Payable 110 – 129 – – – – 238Provisions – – – – – – 10,609 10,609Others – – – – – – – –

20. Acceptance Liabilities 933 1,585 3,285 775 – – – 6,57821. Irrevocable Loan Commitment 4,399 – – – – – 39,593 43,99222. Letter of Credit/Guarantee 16,883 7,870 32,798 8,477 5,962 7,279 4,937 84,20723. Repo – – – – – – – –24. Payable under s.no.11 – – – – – – – –25. Others – – – – – – – –

Total (B) 69,328 44,581 94,909 37,132 26,616 30,326 435,652 738,544Net Financial Assets (A-B) 96,8258 (21,426) 5,397 (6,214) (4,913) 28,632 (45,369) 52,932Cumulative Net Financial Assets 96,825 75,399 80,796 74,581 69,668 98,300 52,932 –

(Rs. in Lacs)

S.N. Particulars1-7

Days8-30Days

31-90Days

91-180Days

181-270Days

271-365Days

More than1 year Total

15. Deferred TaxThe component of deferred tax assets as on Ashad 31, 2070 (July 15, 2013) is as follows:

On Employees’ Gratuity 76,901,376 50,598,861

On Provision for Investment 480,000 480,000

On Provision for Non Banking Assets 15,535,976 15,535,976

On Fixed Assets 6,536,057 7,164,927

Total 99,453,409 73,779,764

Deferred Tax AssetAs at Ashad 31, 2070

(Rs.)As at Ashad 31, 2069

(Rs.)


In accordance with Nepal Accounting Standard (NAS) – 09 Income Taxes, Rs. 25,673,645 (Previous yearRs. 10,881,471) has been credited to profit on account of deferred tax. As per the circular issued by NRB, theamount credited to profit & loss account of Rs. 25,673,645 (Previous year Rs. 10,881,471) has been transferredto Deferred Tax Reserve and the balance in this reserve as on Ashad 31, 2070 (July 15, 2013) is Rs. 99,453,409(Previous year Rs. 73,779,764). This reserve is not a free reserve and is not available for distribution as dividendor bonus shares.

Explanation of the relationship between tax expenses and accounting profit

16. Related Party DisclosureFollowing are the related party as defined in Nepal Accounting Standard (NAS 16)

• Joint Venture Partner – Punjab National Bank (PNB)Following depicts the transaction between the Bank and PNB and the status of balances as on Ashad 31,2070 (July 15, 2013):

• Key Management Personnel

a. Mr. Bishnu Krishna Shrestha Chairmanb. Mr. Ved Krishna Shrestha Directorc. Mr. Arun Man Sherchan Directord. Dr. Bal Gopal Vidya Directore. Mr. Nabin Bhakta Shrestha Directorf. Mr. Shivasharan K.C. Directorg. Mr. K. Ram Mohan Directorh. Dr. Rakesh Gupta Directori. Mr. A.K. Ahluwalia Chief Executive Officer

• Compensation to Key Management Personnel of the BankShort term employee benefits paid to (Seconded staff) Chief Executive Officer (CEO) amount to Rs. 9,082,704/- (Previous year Rs. 6,127,539/-).

In addition to the above, other benefits and amenities such as residence facilities, vehicle facility etc. hasbeen provided as per the terms of Technical Service agreement with Punjab National Bank.Fees for board meetings paid Rs. 940,000/- (Previous year Rs. 1,074,000/-) and fees for other committeemeetings such as Management Committee, Audit Committee and Special Committee paid Rs. 2,584,192/-(Previous Year Rs. 671,345/-).


Accounting Profit 2,100,986,703 1,558,038,707Income tax at the applicable tax rate of 30% 630,296,011 467,411,612Tax effect of expenses/income that are notdeductible/included in determiningTaxable ProfitDonation 184,615 207,744Others 35,697 –Dividend Income (717,988) (144,871)

Total (497,674) 62,873Other changes in temporary difference – –Total Tax Expenses for the Current Year 629,798,336 467,474,485(including deferred tax)Tax Relating to Earlier Year 107,774 –Total Tax Expenses 629,906,110 467,474,485

Nature of Transaction Current Year (Rs.) Previous Year (Rs.)

(Rs. in Lacs)

Technical Service Agreement Fees Paid 70.81 70.81

Cash Dividend (including Dividend Tax

on Bonus Shares Issued) 60.33 1135.62

Bonus Shares Issued 741.70 224.76

Balance as on Ashad 31, 2070 (July 15, 2013)

Deposit with PNB (NPR) 7755.95 413.43

Technical Service Agreement Fees Payable 70.56 70.81


17. Encumbrance of Bank Assets/PropertiesIn this financial year the bank has not obtained refinancing loan from Nepal Rastra Bank (NRB) against thesecurity of the loan documents for the loan extended to various parties.

18. Othersa) During the year, the Bank has provided Rs. 90,197,451/- (Previous year Rs. 36,465,177/-) for gratuity as

per the Bank’s policy. The balance of provision for gratuity as on Ashadh 31, 2070 (July 15, 2013) isRs. 256,337,920/- (Previous year Rs. 168,662,869/-). Rs. 2,522,400/- (Previous year Rs. 2,610,511/-) hasbeen paid during the year to retiring/outgoing staff.

b) Share premium detailed as below:

c) Provision of Income Taxi) During the year, Rs. 655,436,284/- (Previous year Rs. 478,355,956/-) has been provided in the accounts

for income tax. Income tax is calculated on the basis of taxable profit determined under self assessmentin accordance with the provisions of Income Tax Act, 2058 and rules made there under. Any additionaltax arises on final assessment of tax by the income tax authorities shall be accounted on cash basis.

ii) Large tax payer office has reassessed the income tax for the year 2063-64 and 2064-65 demanding totaladdition tax of Rs. 13.83 crores.The bank has disputed the said assessment by appealing in the Revenue Tribunal. Contingent Liabilityis created. However no provision has been provided for the additional tax demand.

d) Capital Adjustment Reserve

the balance of the reserve on this account as on Ashad 31,2070 (July 15, 2013) is Rs. 367,147,000 (PreviousYear Rs. 367,147,000).

e) Other Free ReserveThe balance of the reserve on this account as on Ashad 31, 2070 (July 15, 2013) is Rs. 30,000,000 (Previousyear Rs. 30,000,000).

f) Capital StructureDuring the year, the paid up capital has been increased by Rs. 369,490,710 on account of capitalizationof previous year’s bonus share.

g) Effect of Change in Accounting Policy

The Bank’s income recognition policy as regards the interest on loan and advance is on cash basis.

h) Valuation of Investment SharesThe increase in the market value of shares over the value of the previous year has not been considered forvaluation as the impact of such increase is not material. Investment in shares has been treated as availablefor sale category. Bank had appropriated reserve towards such investment being 2% on the share investmentof Nirdhan Utthan Bank limited and Taragoan Regency Hotel limited while in case of Rural MicrofinanceDevelopment Centre’s shares 100% reserve made, which is being continued for the current year.

i) Interest Capitalisation on Project Financing

Interest on Project financing is capitalized with the approval of NRB.

j) Previous year’s figure and rounding off

Figures of previous year have been regrouped/rearranged wherever necessary, to make the same comparablewith the current year’s figure.

k) Income on sale of Gold

Income on sale of Gold is Rs. 16.30 lacs (previous years Rs. 35.61 lacs). Books of account for the goldtransaction have been kept by B/o New Road.

l) Figures in the Financial Statements are rounded off to the nearest rupee.

Particulars Amount (Rs.)

Premium on Issue of Ordinary Shares (on partial issue only) 6,427,200Premium on Issue of 7% Cumulative Convertible Preference Shares 200,000,000Amount used for issuig bonus share on F.Y. 2065/66 from SharePremium (191,646,300)Increase in Share Premium from fraction share on F.Y. 2068/69 3,774,227Total 18,555,127


Details of Loan & Advances taken by Promoter/Group of Promoter from OtherFinancial Institutions against Promoter ShareAs on 31 Ashadh 2070 (15 July 2013)

1. Shanta Dev Pathak 426,393 2.66 Nepal Investment Bank 30,000,000 158,654

Schedule 4.34

S.No.Name of Promoter/Group of Promoter

Share Owned byPromoters

TotalShares

% Over Paidup Capital

Details of Loan and Advances

RemarksName of Financial

Institution AmountNo. of Sharesas Collateral


Comparison of Unaudited and Audited Financial StatementFinancial Year 2069/070

* Paid Up Capital includes Convertible Preference Shares of Rs. 16 crore.

1. Total Capital and Liabilities ( 1.1 To 1.7) 66,545,726 66,545,726 – –1.1 Paid Up Capital* 1,761,126 1,921,239 160,113 9.09 Issue of

Bonus Share1.2 Reserve and Surplus 3,875,708 2,906,606 (969,103) 25.00 Issue of Bonus Share

& Cash Dividend1.3 Debenture and Bond 468,845 468,845 – –1.4 Borrowings 402,360 402,360 – –1.5 Deposits (A+B) 57,720,465 57,720,465 – –

A. Domestic Currency 54,228,551 54,228,551 – –B. Foreign Currency 3,491,914 3,491,914 – –

1.6 Income Tax Liability 23,933 23,933 – –1.7 Other Liabilities 2,293,289 3,102,280 808,990 35.28 Issue of Bonus Share

& Cash Dividend2. Total Assets (2.1 To 2.7) 66,545,726 66,545,726 – –2.1 Cash & Bank Balance 11,215,794 11,215,794 – –2.2 Money at Call & Short Notice – – – –2.3 Investments 9,263,858 9,263,858 – –2.4 Loans and Advances (Gross) (a+b+c+d+e+f) 44,197,763 44,197,763 – –

a. Real Estate Loan 2,194,192 2,194,192 – –1. Residential Housing Loan (Except Personal Hosuing Loan upto 1 Crore) 775,205 775,205 – –2. Business Complex & Residential Apartment Con. Loan 862,507 862,507 – –3. Income Generating Commerical Complex Loan 183,025 183,025 – –4. Other Real Estate Loan (Including Land Purchase & Plotting) 373,455 373,455 – –

b. Personal Housing Loan upto Rs. 1 Crore 5,325,989 5,325,989 – –c. Margin Type Loan 43,453 43,453 – –d. Term Loan 7,307,935 7,307,935 – –e. Overdraft Loan/TR Loan/Working Capital Loan 22,055,638 22,055,638 – –f. Others 7,270,556 7,270,556 – –

2.5 Fixed Assets 631,183 631,183 – –2.6 Non Banking Assets (Net of Provision) – – – –2.7 Other Assets 1,237,128 1,237,128 – –3. Profit and Loss Account3.1 Interest Income 4,936,924 4,936,924 – –3.2 Interest Expense 2,179,182 2,179,182 – –

A. Net Interest Income (3.1-3.2) 2,757,742 2,757,742 – –3.3 Fees, Commission and Discounts 266,821 266,821 – –3.4 Other Operating Income 249,385 249,385 – –3.5 Foreign Exchange Gain/Loss ( Net) 98,905 98,905 – –

B. Total Operating Income (A+3.3+3.4+3.5) 3,372,853 3,372,853 – –3.6 Staff Expenses 461,809 461,809 – –3.7 Other Operating Expenses 509,488 509,488 – –

C. Operating Profit Before Provision (B-3.6-3.7) 2,401,556 2,401,556 – –3.8 Provision for Possible Losses 98,807 98,807 – –

D. Operating Profit (C-3.8) 2,302,749 2,302,7493.9 Non Operating Income/Expenses (Net) 8,337 8,337 – –3.10 Write Back of Provision for Possible Loss 88 88 – –

E. Profit From Regular Activities (D+3.9+3.10) 2,311,174 2,311,174 – –3.11 Extra Ordinary Income/Expenses (Net) (88) (88) – –

F. Profit Before Bonus and Taxes (E+3.11) 2,311,085 2,311,085 – –3.12 Provision for Staff Bonus 210,099 210,099 – –3.13 Provision for Income Tax 629,869 629,869 – –

G. Net Profit/Loss (F-3.12-3.13) 1,471,117 1,471,117 – –

Schedule 4.35Rs. in ‘000

S.No. ParticularsReasons for

Variance

As perUnuditedFinancial

Statement

As perAudited

FinancialStatement

Variance

In Amount %


Unaudited Financial Results (Provisional)As at Fourth Quarter 31/03/2070 (15/07/2013) of the Fiscal Year 2069/70

* Paid Up Capital includes Convertible Preference Shares of Rs. 16 crore.

Schedule 4(Ka)Rs. in ‘000

Previous Quarter13.04.2013

This Quarter15.07.2013

CorrespondingPrevious Year

15.07.2012(Audited)S.No. Particulars

1 Total Capital and Liabilities ( 1.1 To 1.7) 66,545,726 60,236,671 56,518,9861.1 Paid Up Capital* 1,761,126 1,761,126 1,761,1261.2 Reserve and Surplus 3,875,708 3,450,511 2,416,1761.3 Debenture and Bond 468,845 – –1.4 Borrowings 402,360 – –1.5 Deposits (A+B) 57,720,465 51,293,441 50,006,100

A. Domestic Currency 54,228,551 46,924,147 47,671,249B. Foreign Currency 3,491,914 4,369,294 2,334,852

1.6 Income Tax Liability 23,933 71,916 9,2971.7 Other Liabilities 2,293,289 3,659,677 2,326,2872 Total Assets (2.1 To 2.7) 66,545,726 60,236,671 56,518,9862.1 Cash & Bank Balance 11,215,794 4,416,042 10,363,3062.2 Money at Call & Short Notice – 3,150,000 –2.3 Investments 9,263,858 8,946,626 7,863,6272.4 Loans and Advances (Gross) (a+b+c+d+e+f) 44,197,763 41,854,467 36,616,832

a. Real Estate Loan 2,194,192 1,978,260 2,183,7961. Residential Housing Loan (Except Personal Housing Loan upto Rs. 1 Crore) 775,205 668,223 518,2982. Business Complex & Residential Apartment Construction Loan 862,507 662,522 771,2633. Income Generating Commercial Complex Loan 183,025 189,107 223,1744. Other Real Estate Loan (Including Land Purchase & Plotting) 373,455 458,408 671,061

b. Personal Housing Loan upto Rs. 1 Crore 5,325,989 4,989,725 4,329,004c. Margin Type Loan 43,453 2,950 35,129d. Term Loan 7,307,935 6,870,049 6,062,028e. Overdraft Loan/Tr Loan/Working Capital Loan 22,055,638 20,994,438 17,522,771f. Others 7,270,556 7,019,045 6,484,104

2.5 Fixed Assets 631,183 694,680 547,9262.6 Non Banking Assets (Net of Provision) – – –2.7 Other Assets 1,237,128 1,174,856 1,127,2953 Profit and Loss Account3.1 Interest Income 4,936,924 3,533,789 4,959,9983.2 Interest Expense 2,179,182 1,630,295 2,873,335

A. Net Interest Income (3.1-3.2) 2,757,742 1,903,494 2,086,6643.3 Fees, Commission and Discounts 266,821 204,239 233,5703.4 Other Operating Income 249,385 163,798 179,8223.5 Foreign Exchange Gain/Loss (Net) 98,905 65,822 109,679

B. Total Operating Income (A+3.3+3.4+3.5) 3,372,853 2,337,353 2,609,7353.6 Staff Expenses 461,809 297,134 352,0503.7 Other Operating Expenses 509,488 329,661 467,293

C. Operating Profit Before Provision (B-3.6-3.7) 2,401,556 1,710,558 1,790,3923.8 Provision for Possible Losses 98,807 88,908 252,054

D. Operating Profit (C-3.8) 2,302,749 1,621,650 1,538,3383.9 Non Operating Income/Expenses (Net) 8,337 3,733 25,1563.10 Write Back of Provision for Possible Loss 88 46 150,349

E. Profit From Regular Activities (D+3.9+3.10) 2,311,174 1,625,429 1,713,8433.11 Extra Ordinary Income/Expenses (Net) (88) (46) –

F. Profit Before Bonus and Taxes (E+3.11) 2,311,085 1,625,383 1,713,8433.12 Provision for Staff Bonus 210,099 147,762 155,8043.13 Provision for Income Tax 629,869 443,286 467,474

G. Net Profit/Loss (F-3.12-3.13) 1,471,117 1,034,335 1,090,5654 Ratios4.1 Capital Fund to RWA 13.21% 11.59% 11.02%4.2 Non Performing Loan (NPL) to Total Loan 0.62% 0.70% 0.84%4.3 Total Loan Loss Provision to NPL 100% 100% 100%4.4 Average Yield 10.21% 10.21% 11.98%4.5 Cost of Fund 4.53% 4.59% 6.66%4.6 Base Rate 7.16% 7.03% NA


DISCLOSURE RELATING TO BASEL –II FRAMEWORK

• Risk weighted exposures under each of 11 categories ofCredit Risk:

Risk weighted exposure under each of 11 categories of CreditRisk as of 15th July 2013 is given as under:

Particulars Amount (000)

1. Credit Risk 44,793,263

2. Market Risk 199,249

3. Operational Risk 3,356,986

4. Adjustment under Pillar II 1,484,548

TOTAL 49,834,045

• Summary of the terms, conditions and main features ofall capital instruments, especially in case of subordinatedterm debts including hybrid capital instruments:

As of 15th July 2013, Bank has the following capital structure:

Paid up ordinary capital Rs. 176.12 crore (with proposedbonus share)

Convertible preference share Rs. 16.00 crore (Rs. 4 Crorealready converted into OrdinaryShares out of Rs. 20 Crores)

The salient features of each instrument are as under:

i) Convertible Preference Shares of Rs. 20 crore:These shares were issued at 100% premium with the termsand condition of 7% fixed dividend on the face value onunconverted portion. These shares are convertible intoordinary shares @ 20% after completion every three year. Rs. 4 Crore has been already converted into ordinaryshare.

ii)EBL Debenture Rs. 46.88 crore: These debentures wereissued for 10 years with a fixed interest of 8%. Thesedebentures are redeemded after expiry of its’ fixed periodof ten years.

2. Risk Exposures

• Risk weighted exposures for Credit Risk, Market Risk andOperational Risk.

The Risk Weighted exposure as of 15th July 2013 is givenbelow:


1. Claims on other official entities

2. Claims on banks 929,349

3. Claims on Domestic corporate & securities firms 19,706,445

4. Claims on regulatory retail portfolio 8,407,451

5. Claims secured by residential properties 2,783,412

6. Claims secured by commercial real estate 3,897,511

7. Past due claims -

8. High risk claims 3,291,221

9. Investment in Equity of Institutions 27,477

10. Other assets 1,530,568

11. Off balance sheet items 4,219,830

Total 44,793,263

1. Capital Structure and Capital Adequacy

• Tier 1 capital and a breakdown of its components : In Rs. ‘000 Core Capital (Tier 1) 4,639,762

a. Paid up Equity Share Capital 1,601,126b. Proposed Bonus Equity Shares 160,133c. Irredeemable Non- cumulative preference shares -d. Share Premium 18,555e. Statutory General Reserves 1,615,791f. Retained Earnings 559,466g. Reserve for Deferred Tax 99,453h. Un-audited current year cumulative profit -I. Debenture Redemption Reserve 46,885j. Capital Adjustment Reserve 367,147k. Dividend Equalization Reserves –l Capital Redemption Reserve 140,000m. Other Free Reserve 31,226n. Less: Goodwillo. Less: Fictitious Assets p. Less: Shortfall in provisions q. Less: Loan to parties prohibited by Acts and directivesr. Less: Investment in Equity in licensed Financial Institutionss. Less: Investment in Equity of Institutions with vested interestst. Less: Investment in Equity of institutions with excess of limitsu. Less: Investments arising out of underwriting commitments -v. Less: Reciprocal crossholdings w. Less: Other Deductions

• Tier 2 capital and a breakdown of its componentsSupplementary Capital (Tier 2) 1,137,920a. Cumulative and/or Redeemable Preference Share 160,000b. Subordinated Term Debt 421,960c. Hybrid Capital Instruments -d. General Loan Loss Provision 439,216e. Investment Adjustment Reserve 3,476f. Assets Revaluation Reserve -g. Exchange Equalization Reserve 24,607h. Additional Loan Loss Provision 88,661i. Other Reserves

Total Capital Fund (Tier I and II) 5,777,682

• Detailed information about the Subordinated Term Debts withinformation on the outstanding amount, maturity, amount raisedduring the year and amount eligible to be reckoned as capital funds.

• Deductions from capital : Nil• Total qualifying capital : 5,777,682 thousand• Capital adequacy ratio : 11.59%

• Summary of the bank’s internal approach to assess the adequacyof its capital to support current and future activities, if applicable:Bank assesses the adequacy of capital on a regular basis taking intoconsideration of the present total risk exposure and expected futureincrease in this respect. Bank is aiming to maintain a proper mix ofdifferent types of capital so that there would not be pressure ondividend policy as well as inadequacy of total capital funds againstthe risk exposure. In addition to annual capitalization of profit throughissue of bonus shares, bank is setting aside certain amount towards“Capital Adjustment Reserve” for strengthening the total capital poolmore strong. In the past, bank had issued convertible preference shareof Rs. 20 crore at a premium of 100% convertible into ordinary share@ 20% on completion of each third year. Further, the bank has issueddebenture of Rs. 46.88 Crores in F.Y. 2069/70 for the period of 10years.


3. Risk Management Function• For each separate risk area (Credit, Market and Operational risk), bank must

describe their risk management objectives and policies, including:

� Strategies and processes;

� The structure and organization of the relevant risk management function;

� The scope and nature of risk reporting and/or measurement systems;and

� Policies for hedging and/or mitigating risk and strategies, and processesfor monitoring the continuing effectiveness of hedges/mitigants.

A. Credit Risk:

Strategies and Process:Strategies: Main focus is given on medium sized entity. Maximum percentageof sectorial exposure in terms of capital funds for a particular financialyear is fixed at the beginning of a financial year and approved by theBoard. Loaning power to concerned official at branch as well as Head Officehave been fixed. The loaning power at branch level has been fixedcomparatively at lower level with a view to have strong appraisal systemat corporate level. Manuals relating to credit is in place. Every aspectrelating to credit such as procedure, documentation etc. are clearly defined.Credit Policy of the Bank has also been put in place.

Process:Pre sanction: Each credit limit is approved after due scrutiny by two layerof authority in branch level of their limit. Loans are approved after duescrutiny of background of the promoter, nature of business, turnover inthe account, cash flows, debt/equity ratio, income or profit, value ofprimary and collateral security. Loans above branch power are recommendedto Head Office for consideration on merit. Risk rating mechanism is in placefor certain credits and beyond certain amount.

Post sanction monitor/follow up:Concerned branch obtains regular returns from the borrower as stipulatedin the sanctioned letter on regular interval. Drawing power in case ofrevolving type of loan is calculated to keep the exposure within its DP.Business place of the borrower is visited, physical stock level is also beingchecked at regular interval checked on a time bound basis. In case thereis symptom of any slippage in a particular account, steps are taken forregularizing or repayment or exit. Loans more than Rs. 1 Lac which areeither irregular or likely irregular are reported to Board on regular basisand discussed about the course of action. Credit related returns such asCredit Officer’s Report, Review Sheet etc. are submitted to H.O. in a specifiedtime interval on regular basis.

B. Market Risk:a) Investments:

Presently bank has made no investment for trading purposes. All instrumentseither government securities or bonds issued by government are intendedto hold upto maturity. Instruments issued by semi-government bodycorporate have been purchased at face value. Premium paid on purchaseof government bonds are amortized out of profit on a prorate basis in eachyear.

• Total risk weighted exposure calculation table:Enclosed as an Annexure:

• Amount of NPAs (both Gross and Net) Rs. in ‘000Gross NPA : 276,199Net NPA : Nil� Restructure/Reschedule loan : -� Substandard Loan : 6,463� Doubtful Loan : 10,409� Loss Loan : 259,327

• NPA Ratios� Gross NPA to gross advances : 0.62%� Provision to NPA : >100%

• Movement of Non Performing Assets:

• Write off of Loans and Interest Suspense:Following Loans and Interest Suspenses have been writtenoff during the year 2012/13:

• Movements in Loan Loss Provisions and Interest Suspense:

• Details of additional Loan Loss Provisions

• Segregation of Investment Portfolio

Investment Catagory Amount (000)

1. Held for Trading -

2. Held to Maturity 9,239,610

3. Available for Sale 25,849

Opening balance 307,493 242,675

Addition during the year 29,213 73,598

Sold during the year (60,507) (50,126)

Balance as at 15 July 2013 276,199 266,147

Particulars Amount Provision

Amount Rs. (000)

ParticularsLoan LossProvision

InterestSuspense

Amount Rs. (000)

Opening balance 705,857 88,605

Write back /off in the year (88) (41,389)

Addition in the year 98,807 84,662

Balance as at 15 July 2013 804,576 131,878

Thirtha Kumar Pradhan Consumer Loan 21.20 9.99

Tara Nath Sapkota Consumer Loan 20.76 9.79

Indra Raj Chhetri Deprived Sector Loan 24.20 13.45

Nawaraj Lama Deprived Sector Loan 22.15 11.32

Total 88.31 44.55

Particulars Facility TypeOut-

standing

Amount Rs. (000)

Interest w/ofrom suspense


1. Substandard 4,846

2. Doubtful 5,225

3. Loan against PG 500

4. Deprived Sector Loan 8,463

5. Retail Lending 80,199

Total 99,213


b) Foreign Exchange:

The Bank’s policy is to maintain the net open position of convertible foreigncurrency where exchange rate risk persist in matching position. 25% oftotal revaluation profit if any in a financial year are transferred to a separatereserve for building a cushion.

C. Operational Risk:

1. Risk arising from break down of information & Operating system:

All banking transactions are done through highly sophisticated software.All related data are processed centrally. To safe guard the probable lossesresulting from system failure or natural disaster, bank has taken followingpolicies to minimize the risk:

i) Back up: Daily back up of all balances are taken at the end of day. Autoback up while the system is running are also taken at certain timeinterval to safe guard the normal system failure.

ii) Disaster Recovery Site (DRS): To safe guard the natural disaster, DRSsite is being maintained outside valley, which is considered to be lessseismic zone.

iii) Validation of entry & Password Control: Each entry in the system isrevaluated by another staff having the power to do so before finalposting. Level wise access authority is given for data entry, update,modification and validation process. Password control is maintained ateach level of operation very strictly and confidentially.

iv) Generation of Exceptional Report:

Exceptional report at the end of day is generated through system andexamined.

v) Morning Checking: Each and every vouchers are physically verified withthe ledger posted at the start of next day.

2. Risk arising from Procedural Lapses and Internal Control:

Operating manual describing every procedure related to banking functionis in place. In addition to this, internal circulars are issued as and whenrequired. Regular returns are submitted by every branch on regular intervalto H.O. Internal audit of each and every branch including Head Office iscarried out every year. The internal audit department conducts off site aswell as on site inspection. Monthly manager’s certificate in respect ofcompliance of set systems & procedures are obtained from each branch.

3. Corporate Good Governance: Guidelines issued by the central bank, (Nepal Rastra Bank) are observed and complied with:

• Types of eligible credit risk mitigants used and the benefits availedunder CRM. Margin money deposited with the bank against off balancesheet exposures-Lc, Gtee and Loan against Fixed Deposit Receipt &Govt. Bond etc. have been claimed as CRM. Under this, Rs. 1868396thousand have been deducted from risk as CRM.


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BRANCH MANAGER & OFFICES:Santosh BhattaraiNew Baneswor BranchNew Baneswor, KathmanduTel: 4780018 (hunting)Fax: 4781025E-mail: [email protected]

Prashanna KhadkaNew Road BranchNew Road, KathmanduTel: 4222230, 4245782, 4245784Fax: 4245779E-mail: [email protected]

Raghu Nath PradhanTeku BranchTeku, KathmanduTel: 4242333, 4230642Fax: 4247009E-mail: [email protected]

Ranjan KhadkaLazimpat BranchEBL House, Lazimpat, KtmTel: 4443377 (Hunting)Fax: 4443160E-mail: [email protected]

Lava Prasad KuikelChabahil BranchChabahil, KathmanduTel: 4464895Fax: 4464914E-mail: [email protected]

Anil KarkiBalaju BranchNaya Bazar, Balaju, KathmanduTel: 4380301, 4380381Fax: 4358986E-mail: [email protected]

Mani Ram LamichhaneGolfutar BranchGolfutar, KathmanduTel: 4650793, 4879705Fax: 4374917E-mail: [email protected]

Satish Pratap SinghMaitidevi BranchMaitidevi, KathmanduTel: 4445172, 4445173Fax: 4445175E-mail: [email protected]

Pranaya PradhanThamel BranchA One Business Complex, KtmTel: 4433037, 4436117Fax: 4435530E-mail: [email protected]

Mrs. Sarita K.C.Kalimati BranchKalimati, KathmanduTel: 4278556, 4278557Fax: 4283897E-mail: [email protected]

Bishwajit Lal MaskeyBagbazar BranchBagbazar, KathmanduTel: 4242712Fax: 4242713E-mail: [email protected]

Ram Hari AcharyaSatungal BranchSatungal, KathmanduTel: 4311080, 4310657Fax: 4310272E-mail: [email protected]

Bibhuti NeupaneGongabu BranchSamakhushi Chowk, GongabuTel: 4363076Fax: 4363077E-mail: [email protected]

Saajan K.C.Taulihawa BranchPurano Haat Bazar, LumbiniTel: 076-561148Fax: 076-561149E-mail: [email protected]

Arjun Sharma PoudelKrishna Nagar BranchKrishna Nagar-2, KapilvastuTel: 076-520428Fax: 076-520429E-mail: [email protected]

Rajesh GyawaliSandhikharka BranchSandhikharka-9, ChutrabeshiTel: 077-420801Fax: 077-420802E-mail: [email protected]

Sudhir GautamNepalgunj BranchSurkhet Road, DhambojiTel: 081-525804, 525805Fax: 081-525902E-mail: [email protected]

Yagya Raj TimilsinaSurkhet BranchBirendra Chowk, BirendranagarTel: 083-523552Fax: 083-523553E-mail: [email protected]

Purushottam LuitelGulariya BranchNarayan Gopal Chowk-8, GuleriaTel: 084-420038Fax: 084-420039E-mail: [email protected]

Nava Raj TimsinaTikapur BranchTikapur-9, Khakraula Rode, KailaliTel: 091-561357Fax: 091-561358E-mail: [email protected]

Yogesh ShresthaTulsipur BranchBP Chowk, KA Line, Tulsipur, DangTel: 082-521620Fax: 082-521621E-mail: [email protected]

Harish K. AcharyaDhangadhi BranchDhangadhi, KailaliTel: 091-523641, 523642Fax: 091-523643E-mail: [email protected]

Sunil Raj KhanalChandranigahapur BranchGour Road, ChandranigahapurTel: 055-540642Fax: 055-540690E-mail: [email protected]

Binaya Pd. UpadhayaRajbiraj BranchTribhuvan Chowk, SaptariTel: 031-523570Fax: 031-523571E-mail: [email protected]

Mrs. Kamana ShresthaKirtipur BranchNaya Bazar, Kirtipur, KtmTel: 4336423, 4336424Fax: 4336425E-mail: [email protected]

Mrs. Anju SharmaPulchowk BranchPulchowk, LalitpurTel: 5549738, 5549739Fax: 5549736E-mail: [email protected]

Bijay Kumar SinghGwarko BranchGwarko, LalitpurTel: 5540348Fax: 5539066E-mail: [email protected]

Mrs. Kalpana PandeyLagankhel BranchLagankhel (Bus Park), LalitpurTel: 5551470, 5551471Fax: 5551472E-mail: [email protected]

Mrs. Heera ShakyaBhaktapur BranchSuryabinayak, BhaktapurTel: 6620001Fax: 6620002E-mail: [email protected]

Suman SharmaTatopani BranchLiping, Tatopani, SindhupalchowkTel: 011-480003Fax: 011-480004E-mail: [email protected]

Nar Bahadur RawalBirtamod BranchShanishchare Road, Birtamod, JhapaTel: 023-543805Fax: 023-540170E-mail: [email protected]

Swalid SthapitBiratnagar BranchMangala Devi Super Market, Hanuman Das RoadTel: 021-530528, 527645Fax: 021-530527E-mail: [email protected]

Jagadish KarkiDuhabi BranchDuhabi, SunsariTel: 025-540628Fax: 025-540627E-mail: [email protected]

Shashank KoiralaItahari BranchItahari, SunsariTel: 025-586411Fax: 025-586412E-mail: [email protected]

Ram Bharosh YadavJanakpur BranchMills Area, JanakpurTel: 041-525855Fax: 041-525361E-mail: [email protected]

Bishnu Prasad GyawaliBirgunj BranchAdarshanagar, BirgunjTel: 051-527163, 523048Fax: 051-527164E-mail: [email protected]

Niranjan KarkiSimara BranchSimara Chowk, SimaraTel: 053-520506Fax: 053-520616E-mail: [email protected]

Ramesh ShakyaI.C.D. BranchDryport, ParsaTel: 051-533835Fax: 051-533834E-mail: [email protected]

Sumit Kumar AmatyaHetauda BranchBank Road, Hetauda-10Tel: 057-527003Fax: 057-527004E-mail: [email protected]

Janak ChapagainNarayangarh BranchShahidpath, NarayangarhTel: 056-521465Fax: 056-520465E-mail: [email protected]

Rudra Pd. JoshiGorkha BranchShakti Chowk, Gorkha Bazar-3Tel: 064-690986Fax: 064-421558E-mail: [email protected]

Ujjwal PokharelPokhara BranchNew Road, PokharaTel: 061-541491, 550291Fax: 061-541492E-mail: [email protected]

Chhitij ParajuliLekhnath BranchTaal Chowk, LekhnathTel: 061-560777Fax: 061-560977E-mail: [email protected]

Dhruba Pd. AcharyaBeshishahar BranchBeshishahar, LamjungTel: 066-520771Fax: 066-520772E-mail: [email protected]

Suman Raj ShresthaKushma BranchShahid Chowk, Kushma Bazar, ParbatTel: 067-421169Fax: 067-421169E-mail: [email protected]

Suraj Bhakta ShresthaBaglung BranchAawa Road, BaglungTel: 068-522185, 522186Fax: 068-522187E-mail: [email protected]

Chandra Bdr. GurungSyangja BranchShahid Chowk, Putalibazar-01Tel: 063-421174Fax: 063-421175E-mail: [email protected]

Devi Dutta GyawaliButwal BranchMali Complex, BP Path, ButwalTel: 071-543661, 545661Fax: 071-543662E-mail: [email protected]

Budhi Prasad TiwariBhairahawa BranchPrahari Tole, Siddharthanagar, BhairahawaTel: 071-527360Fax: 071-527361E-mail: [email protected]

Mrs. Shanti SharmaLumbini BranchMadhuvani-8, RupandehiTel: 071-580297Fax: 071-580298E-mail: [email protected]

Corporate Office:EBL House, LazimpatP.O.Box 13384, Kathmandu, NepalTel: 4443377, Fax: 4443160E-mail: [email protected]: EVBLNPKA

Representative Office:New Delhi9th floor, Antariksha Bhawan,K G Marg, New Delhi-100 001Tel: 91-11-23710327Fax: 91-11-23710326E-mail: [email protected]

Ashutosh UpadhyayCorporate Credit

Keshab Raj PoudelCredit

Ashutosh SharmaRisk Management

Purna Bahadur ShresthaInspection

Bijay K. GautamIT Department

Kumar JoshiHuman Resource

Rajan KayasthaAccounts


Dev Ranjan DangalMarketing

Dharma P. GauliLegal

Sukra P. GautamTreasury

Mahesh BajracharyaGeneral Administration

Sirish BoharaRemittance

Priti LamaPlanning & Development

DEPARTMENT HEAD

Glimpses of 18th Annual General Meeting

Corporate Office:EBL House, LazimpatP.O.Box 13384, Kathmandu, NepalTel: 4443377 (Hunting), Fax: 4443160E-mail: [email protected], Swift: EVBLNPKA

Representative Office:New Delhi9th floor, Antariksha Bhawan, K G MargNew Delhi-100 001, Tel: 91-11-23710327Fax: 91-11-23710326, E-mail: [email protected]

Everest Bank Branches Network

Dhangadhi

Mid-Western:

Far-Western:

KathmanduValley: New Road SatungalMaitideviKirtipur Lazimpat New Baneshwor

Teku Thamel

PulchowkLagankhelGwarko

Suryabinayak (Bhaktapur)

Bagbazar KalimatiGolfutarChabahil GongabuBalaju

Birtamod Biratnagar Birgunj Chandranigahpur DuhabiEastern:

Western:

I.C.D. Itahari Janakpur Narayangarh RajbirajHetauda

TatopaniSimara

Baglung Beshisahar Bhairahawa Butwal Gorkha Krishnanagar

TaulihawaKushma Lekhnath Lumbini Pokhara Sandhikarka Syangja

Nepalgunj Surkhet Tulsipur

Deposit(Rs. in million)

2008

/09

2009

/010

2010

/011

2011

/012

2012

/013

3332

2.9

3693

2.3

4112

7.9

5000

6.1

5772

0.4

2008

/09

2009

/010

2010

/011

2011

/012

2012

/013

2446

9.6

2815

6.4

3166

1.8

3661

6.8

4419

7.7

Loans & Advances(Including Bills Purchases)(Rs. in million)

Operating Profit(Rs. in million)

2008

/09

2009

/010

2010

/011

2011

/012

2012

/013

1073

.5

1349

.1

1516

.7

1790

.4

2401

.6

2008

/09

2009

/010

2010

/011

2011

/012

2012

/013

638.

7

831.

8

931.

3

1090

.6

1471

.1

Net Profit(Rs. in million)

Tikapur

Gulariya

19th - everest bank · bank and nepal investment bank) who have crossed the benchmark of 10,000...

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