Board of Director’s

composition analysis
NIC Asia Bank Limited

EMBA 2019
Trimester II

Submitted To:
Sabin Bikram Panta
Associate Professor: Finance and Banking

Submitted By:
Group 2
Shruti Dhungel (#19506)
Suman Neupane (#19514)
Milan Shrestha (#19526)
Brijesh Shrestha (#19517)
Sabina Kharel (#19533)
Introduction
NIC ASIA Bank has its antecedents in NIC Bank which was established on 21 st July 1998. The Bank was
rechristened as NIC ASIA Bank after the merger of NIC Bank with Bank of Asia Nepal on 30 th June 2013.
After the merger, NIC ASIA was recognized as”Bank of the Year 2013-Nepal” by The Banker, Financial
Times, UK. This is the second time that the Bank was recognized with this prestigious award, the previous
occasion being in 2007.

NIC ASIA Bank is now, one of the largest private sector commercial banks in the country in terms of
capital base, balance-sheet size, number of branches, ATM network and customer base. The Bank has
282 branches, 40 extension counters, 26 branch less banking and 289 ATMs across Nepal with a network
covering all major financial centers of the country. The Bank strongly believes in Meritocracy,
Transparency, Professionalism, Team spirit and Service Excellence. These core values are internalized
by all functions within the Bank and are reflected in all actions the Bank takes during the course of its
business.

Board of Directors
There are 7 board of directors including chairman and 106 promoter shareholders in the company. The
Board comprises of the following directors:-

Director Positon Age Education Percentage Experience

Shareholdin
g
Mr. Tulsi Ram Chairman 65 B.Com 4.85 30 plus years
Agrawal experience in
different banks,
industry, trading
houses such as
Golden Battery
Industries,
Bishal Group
etc
Mr. Jagdish Prashad Director 73 B.Com 2.53 40+ years
Agrawal experience in
different banks,
industry, trading
houses such as
Golden Battery
etc
Mr. Ram Chandra Director 57 SLC 4.41 Experience in
Sanghai Cement
Industry
Mr. Rajendra Aryal Director 50 Bachelors 0.9 25 years in
(Public) Humanities Audio/Video
and Mass
Communication
and Media
Mr. Binod Kumar Director 60 I.A. 0.0005 37 years in
Pyakurel banking sector

Mr. Ganesh Man Director 64 Masters 0 30 years in

Shrestha (Independent banking and
Director) insurance
Mr. Trilok Chand Director 67 B.Com 9.55 Affiliation with
Agrawal Industry Import
Export, Banks
such Bishal
Group, Puja
International

Board Structure

1. Group A Promoter Shareholders (Mutually selected) 3 Directors

2. Group B Public Shareholders (Elected/Selected) 3 Directors
3. Independent Director nominated from Professionals selected by Nepal Rastra Bank 1 Director

Board Meeting

The BOD meeting is conducted through company secretary office of the bank. Company secretary is
responsible for coordinating each and every BOD meeting including annual general meeting of the bank.
Bank has set an annual calendar for conducting the board meeting and meeting are conducted on every
15th days. Agenda are collected from entire department of the organization prior to meeting and meeting
agendas are finalized before one week. Generally, these meeting last from 2 to 3 days, however, the time
period of the meeting depends no of the agenda to be discussed on that particular meeting. Further,
special board meeting are also organized as per the requirement of the company. The minutes of the
board decision is prepared by the company secretary office and circulated to the respective department of
the bank.
In fiscal year 2074/75, there were total of 48 board meetings.

Committees of the bank

There are several committees in the bank. The internal committee does not include the board members
and these committees are conducted by management team of the bank.

1. Risk Management Committee

2. Human Resource Management Committee
3. Audit Committee
4. Land Acquisition Committee
5. Digital Banking Committee
6. Anti-Money Laundering and prevention Committee
7. Management Credit Committee

Analysis of the BoD composition:

By studying the composition of the Board and the committes the bank has, we concluded the followingL

The board of directors of the company is comprised of experienced professional who have been service
in the sector for a long time and have the experience and knowledge to be on the board. However, it
seems like some of the members do not have the academic knowledge.
The independent director is the most educated board member and have 30 plus years experience in the
banking sector which gives an assurance that the independent director has the knowledge and
experience to understand and question the deeds of the board and management.

The chairman who leads the board has a significant percentage of shareholding and so will be work in
the best interest of the shareholders.

The one thing that looked missing in the board composition is an professional chartered accountant
which will have given the board more assurance in their financials and decisions.