Annual Report 2071-72 English

CONTENTS
Our Vision, Mission statement 5

Financial Highlights 6
Last 10 years at a glance 7
Chairman’s Statement 8
Board of Directors 10
Board of Director’s Report 12
Risk Management 25
Corporate Social Responsibility 30
Management TEAM 32
Branch Network 36
ATM Location 38
Global Network 40
Financial Statements 44
Accounting Policies 78
Notes to Accounts 80
Disclosure Under Basel II 91
Consolidated Financial Statements 101
About Nepal Investment Bank Ltd.
Nepal Investment Bank Ltd. (NIBL), previously Nepal Indoseuz bank Ltd., was established in 1986 as a joint venture betw
We believe that NIBL, being managed by the team of experienced bankers and professionals with a proven track record
Over the past decade NIBL has redefined Banking through deep understanding of customer needs. We have underta
• Highest growth rate among banks in Nepal.
• Experienced management and sound corporate governance.
• Top lender in Nepal with total loans and advances of NPR 67.69 billion.
• Highest deposits with NPR 90.63 billion.
• Net profit of NPR 1.96 billion.
• Highest paid up capital among the financial institutions of Nepal at Rs. 6.35 billion.
• Largest among Taxpayers in Nepal.
• Customer base of over 629,217
• ICRA Nepal has reaffirmed the rating at “[ICRANP-IR] A” (pronounced as ICRANP IR A) which is at par with the previous ratin
OUR VISION
To be the most preferred provider of financial services in Nepal.
MISSION STATEMENT
We aspire to be the leading Nepali bank, delivering world class service through a blend of state-of-the-art technology and vision
Financial Highlights
• Highest Paid-Up Capital amongst private sector Banks in Nepal with NPR 6.35 Billion
• Highest Assets Base with NPR 104.35 Billion
• Topmost lender in Nepal with Total Loans and Advances of NPR 67.69 Billion
• Highest Deposit of NPR 90.63 Billion
• Net Profit of NPR 1.96 Billion
• Return on Shareholder's Fund at 24.8%
• 33% Bonus Share, 1.74% Cash Dividend
S. Particulars FY 2070-71 FY 2071-72 Growth in NPR Growth in %
No. FY 2013-14 FY 2014-15
1 Total Assets 86,173 104,345 18,172 21.1
2 Total Deposit 73,831 90,631 16,800 22.8
3 Total Loans and Advances (Gross) 53,458 67,690 14,232 26.6
4 Total Investments 15,615 21,462 5,847 37.4
5 Total Operating Profit (before provision for possible loss) 3,168 3,119 -49 -1.6
6 Total Net Profit 1,939 1,962 22 1.1
7 Non-performing Assets (in %) 1.77 1.25 - -0.5
8 Capital Adequacy Ratio (in %) 11.27 11.90 - 5.6
9 CD Ratio (LCY Deposit with equity %) 71.9 72.8 - -0.9
10 Return on Paid-up Capital (in %)* 46.8 41.1 - -5.7
11 Return on Shareholder’s Equity (ROE) 27.6 24.8 - -2.8
12 Total Customer Base (in Nos.) 558,766 629,217 70,451 12.6
13 Market Share in Deposit (in %) 6.1 6.2 - 0.1
14 Market Share in Lending (in %) 6 6.2 - 0.2
* On opening
SHAREHOLDERS INFORMATION
Management Efficiency Highlights
Particulars 2010-11 2011-12 2012-13 2013-14 2014-15

Return on Assets (ROA) 2.0 1.6 2.6 2.3 1.9
Return on Shareholder's Equity (ROE) 25.7 20.1 31.7 27.6 24.8
VALUATION HIGHLIGHTS
Particulars 2010-11 2011-12 2012-13 2013-14 2014-15
Earning Per Share (EPS in NPR) 39.1 27.6 46.2 40.7 30.9
Book Value Per Share 171 161 169 166 155
Market Price Per Share 515 511 784 960 704
P/E Ratio 13.2 18.5 17.0 23.6 22.8
Last 10 Years at Glance

06 07 08 09 10 11 12 13 14 15 06 07 08 09 10 11 12 13 14 15 06 07 08 09 10 11 12 13 14 15
LENDING
Amount In Million
PROFIT
Amount In Million
DEPOSIT
Amount In Million
06 07 08 09 10 11 12 13 14 15 06 07 08 09 10 11 12 13 14 15 06 07 08 09 10 11 12 13 14 15
BOOK VALUE PER SHARE

SHAREHOLDERS FUND
RETURN ON EQUITY
Amount In RS Amount In Million
06 07 08 09 10 11 12 13 14 15
06 07 08 09 10 11 12 13 14 15
06 07 08 09 10 11 12 13 14 15
NON PERFORMING ASSETS MARKET PRICE PER SHARE EARNING PER SHARE
Amount In RS Amount In RS
Chairman’s Statement
Mr. Prithivi Bahadur Pandé
We are deeply saddened and would like to express our heartfelt compassion for all the people who lost their lives in the April 25 Earthqu
As the Bank nears towards achieving yet another milestone, 30 years of Banking Service, we take great pleasure to once again distinguish ou
Despite the effects of political instability and the April 25th Earthquake, the fiscal year FY 2014-15 witnessed a considerable growth
67.69 billion as compared to previous year NPR 53.45 billion. The Operating Profit decreased to NPR 3.11 billion before provision compared
NIBL’s Paid Up capital reached NPR 6.34 billion (after 33% Bonus Share proposed in FY 2071-72). NIBL’s Paid Up capital will be the hig
Due to recovery of non-performing loans (NPA’s) during the year, the NPA ratio of the bank declined to 1.25% against 1.77% last year. We
In view of supporting progressive development of the nation by extending diversified Corporate Social Responsibility (CSR) activities, NIB
education, health, security and sports sectors to its range of
CSR initiatives. However, while maintaining its support for development of nation’s diverse sectors over the years, the Bank’s prime CSR
The Bank has been pursuing a financial inclusion strategy to extend our services within unexplored segments, especially youth and the depriv
Subsequent to previous years, our human resource development has been a key factor for our success under the guidance of the Man
I would like to express my appreciation and gratitude to Nepal Rastra Bank, Company Registrar, SEBON, our Statutory Auditors, Ministry
Although we have substantiated our self as leading commercial banks in the nation, we have been constantly striving for growth and
Board of Directors
Mr. Prithivi B Pandé Chairman
Mr. Pandé has over thirty years experience in the field of banking in Nepal with both the public and private sectors. After obtaining
Washington for two years.
In 1990, he was appointed General Manager of Rastriya Banijya Bank – the largest commercial bank in Nepal. After financial liberalization
Nepali banks.
In 2001, leading a diverse private equity group, he took on management responsibilities from the Credit Agricole Group of Nepal Ind
growth in capital, assets and profit.
Mr. Deepak Man Sherchan Director

Mr. Deepak Man Sherchan is an architect by profession. He holds a BTech Architecture degree from IIT Khargpur, West Bengal,
of CBC (P) Ltd.
Mr. Prajanya Rajbhandari Director
Mr. Prajanya Rajbhandari is an Industrialist who holds an engineering degree from Punjab University. He has held directorship
various capacities.
Mr Bir Bikram Rayamajhi Director
Mr Bir Bikram Rayamajhi is appointed by Rastriya Beema Company Ltd. in NIBL Board of Directors. Mr Rayamajhi holds
at the Rastriya Beema Company Ltd.
Mr. Bhuwaneshwar Parsad Shah Public Director
Mr. Bhuwaneshwar Prasad Shah holds a MBA degree from Delhi University, India. Mr. Shah has more than 30 years of experi
Financial Sector.
Mr. Mohan Madan Budhathoki Professional Director
Mr. Mohan Madan Budhathoki has
39 years of experience in various departments within Nepal Rastra Bank. He holds a Master degree in Commerce from T
BOARD OF DIRECTORS’ REPORT

For The Financial Year 2071/72 (FY 2014/2015)
Presentation by the Chairman to the 29th Annual General Meeting
Dear Shareholders,
It is our pleasure to welcome you at this 29th Annual General Meeting of Nepal Investment Bank Ltd (NIBL). We express our grat
First of all, on behalf of the Bank, I would like to express my deepest condolence for the loss of lives and massive damage to properties, histo
Despite such a major crisis NIBL was able to provide banking services immediately from Baisakh 13, 2072 a day after the great ear
As a good corporate citizen, we immediately responded with open heart to the needs of our people who were severely affected by the e
and we are committed to lend our full support towards reconstruction of Nepal.
We believe that banks should have adequate capital and only banks with adequate capital can take risk and create value for its stake
I feel proud to share with you that the total assets of our bank crossed NPR 100 billion or USD 1 billion for the first time since the bank’s incep
Now, I would like to present to you the Bank’s activities, Balance Sheet, Profit & Loss account and other financial statements for the financial y
1.Review of Bank’s Performance for FY 2071-72:
The fiscal year 2071-72 was a satisfactory year for the bank. Despite huge losses inflicted in the economy due to the Baishak 12, 2
i.e. a decline of NPR 17.00 million or -0.6%. The decline
1986 as a joint venture between Nepali and French partners. The French partner (holding 50% of the capital) was Credit Agricole Indoseuz,
s with a proven track record, can match your particular needs. We are sure that your choice of bank will be guided, among other things, by
needs. We have undertaken many initiatives to strengthen customer experience through multiple touch points such as internal bankin
at par with the previous rating assigned by ICRA limited at “[Nepal A]”.
he-art technology and visionary management in partnership with competent and committed staff, to achieve sound financial health w
Growth in %
21.1
22.8
26.6
37.4
-1.6
1.1
-0.5
5.6
-0.9
-5.7
-2.8
12.6
0.1
0.2
2014-15
1.9
24.8
2014-15
30.9
155
704
22.8
eir lives in the April 25 Earthquake and its aftershocks. We pray for the welfare of the people affected during this time of national tragedy and are highly o
re to once again distinguish ourselves as one of the top banks in the nation. The Bank has had to overcome numerous challenges and obstacles throughou
nessed a considerable growth in our deposit and lending. Deposits have increased by 22.8 percent, reaching NPR 90.63 billion, as compared to last
on before provision compared to previous year 3.16 billion. The Net Profit of the Bank grew by 1.1% (+NPR 22.2 million) to reach NPR 1.96 billion aga
Paid Up capital will be the highest amongst the private sector banks in Nepal after the issuance of proposed 33% bonus share. NIBL’s Capital base reach
against 1.77% last year. We will continue our efforts to further minimize the NPA level in coming years.
onsibility (CSR) activities, NIBL has been constantly contributing to various aid programs and events, encompassing art, heritage,
years, the Bank’s prime CSR objective and priority this year has been to alleviate the desolation inflicted by the April 25 Earthquake and its aftershocks. N
especially youth and the deprived sector, through portfolio diversification and innovative customer initiatives. Acknowledging the inevitability of techn
under the guidance of the Management Team. The Bank has been actively providing trainings to its workforce in order to not just gain short term increase
ur Statutory Auditors, Ministry of Finance and all other government as well as non government agencies for providing support in our endeavors.
stantly striving for growth and development in order to not just sustain our market position but to excel and set new benchmarks. All in all, we are looking fo
ivate sectors. After obtaining a degree in Chartered Accountancy from India in 1978, he worked at various departments of Nepal Rastra Bank (Centr
al. After financial liberalization started in 1994, Mr. Pandé established Himalayan Bank, a private sector commercial bank in Nepal and a joint ventu
Agricole Group of Nepal Indosuez Bank to manage Nepal Investment Bank which has resulted in the Bank’s remarkable
m IIT Khargpur, West Bengal, India, and has also received a Diploma in Real Estate Development in Harvard Design School, USA. Mr. Sherchan is
y. He has held directorships at National Structures, Everest poultry and Enviroplast. Mr. Rajbhandari has actively served in organizatio
rs. Mr Rayamajhi holds Chartered Accountancy Degree from Institute of Chartered Accounts of India and is the former Deputy Governor (Dec 2
more than 30 years of experience in various industries in high level position with more than 15 years of experience in
ee in Commerce from Tribhuvan University and an MBA from University of Birmingham, UK. Mr. Budhathoki served as a professional d
(NIBL). We express our gratitude to you all for your continued trust and support. During the fiscal year 2014/15, NIBL sustained its growth thro
ve damage to properties, historical monuments and heritage sites caused by the great earth quake which hit Nepal on Baisakh 12, 2072 and its afters
2072 a day after the great earth quake.
were severely affected by the earthquake. We reached to the people by distributing relief materials like food, water, clothes, tarpaulin, tents and jas
d create value for its stake holders. Following the same, Nepal Rastra Bank raised the minimum paid up capital required for commercial banks
rst time since the bank’s inception 29 years ago. This is a historical milestone for us and we are firm and committed to upkeep the growth path.
al statements for the financial year 2071/72.
nomy due to the Baishak 12, 2072 earthquake and the aftershocks thereafter, the year ended with satisfactory profit figures. The bank made an operatin
was Credit Agricole Indoseuz, a subsidiary of one of the largest banking groups in the world. When Credit Agricole Indoseuz decided to div
ided, among other things, by its reliability and professionalism.
points such as internal banking, mobile banking and branchless banking. Our overall growth record in deposits, lending, net profit and capit
ve sound financial health with sustainable value addition to all our stakeholders. We are committed to fulfilling this mission while ensu
ational tragedy and are highly optimistic that we will continue to rise together for progressive recovery and to overcome the calamitous losses.
allenges and obstacles throughout its journey and the outcome has been well reflected in our significant achievements over all these years.
.63 billion, as compared to last year NPR 73.83 billion, while total lending of the bank increased by 26.6 percent reaching NPR
on) to reach NPR 1.96 billion against NPR 1.93 billion of previous year.
share. NIBL’s Capital base reached NPR 9.80 billion which is also the highest capital base amongst the private sector banks in the country.
Earthquake and its aftershocks. NIBL has been proactive in initiating relief programs to support earthquake affected victims, advancing instantaneous aid fo
edging the inevitability of technology in banking service, we continue to develop innovation and technology based schemes and services that will ensu
not just gain short term increase in efficiency and effectiveness but to attain overall development as an individual that will help them excel to their potential a
g support in our endeavors.
marks. All in all, we are looking forward to the year 2016 with utmost zeal, envisioning a paradigm shift in escalating returns to all our stakeholders.
ents of Nepal Rastra Bank (Central Bank of Nepal) till 1990, during which time, he was seconded to the IMF head-office in
al bank in Nepal and a joint venture with Habib Bank. He served as a stakeholder and Executive Director for a period of 10 years propelling it to the t
School, USA. Mr. Sherchan is the Managing Director and Chief Architect
as actively served in organizations like Nepal Jaycees, Rotary and FNCCI in

e former Deputy Governor (Dec 2005-Dec 2010) of Nepal Rastra Bank ( Central Bank of Nepal) He was also the CEO of United Life Insurance Compa
athoki served as a professional director for Kankai Development Bank, before retiring form service in Nepal Rastra Bank as Director of Foreig
NIBL sustained its growth through continuous commitment to business excellence and customer satisfaction. The Bank has also been focusing
n Baisakh 12, 2072 and its aftershocks thereafter. With God’s grace, we have been lucky that our Bank was saved from major physical damage and h
thes, tarpaulin, tents and jasta patta (corrugated sheets). In fact our bank quickly announced to distribute jasta patta worth NPR 1.16 million and we
required for commercial banks to NPR 8 billion to be achieved within the end of fiscal year 2074. We are proud to say that we will meet this requireme
eep the growth path.
s. The bank made an operating profit before loan loss provision of NPR 3.11 billion. The figure is however lower by NPR 49 million or 1.6% compared
ricole Indoseuz decided to divest, a group of companies compromising of bankers, professionals, industrialists and businessman acquired
ts, lending, net profit and capital base is second to none.
fulfilling this mission while ensuring the highest level of ethical standards, professional integrity, corporate governance and regulatory c
me the calamitous losses.
er all these years.
nks in the country.
s, advancing instantaneous aid following the earthquake. NIBL has been benevolently extending continuous financial as well as non- financial supports tow
chemes and services that will ensure ease and simplicity for our customers. NIBL has over 650,000 customer base across the country being serviced throu
help them excel to their potential and capabilities. The returns have been highly rewarding and have been significant in achievements of our endeavors dur
ns to all our stakeholders.
od of 10 years propelling it to the top tier of

O of United Life Insurance Company (Nepal) Ltd. from Jul 2011 – Jan 2015 Currently; Mr. Rayamajhi is serving as the Chief Executive Officer
astra Bank as Director of Foreign Exchange Management Department. He specializes on the issue of Note Issuance, Accounts and Expenditu
Bank has also been focusing on exploring new lending and investment opportunities. In addition, Bank’s customer delivery models are co
rom major physical damage and human casualties due to the earthquake except some minor damages to our branches at Durbar Marg, Lazimp
tta worth NPR 1.16 million and we distributed the same to the residents of the districts which were severely hit by the quake. The bank also donated NPR 1
ay that we will meet this requirement very comfortably without asking our shareholders to inject further money. Similarly, in compliance with NRB directiv
NPR 49 million or 1.6% compared to previous year’s figure of NPR 3.16 billion. The main reason for decline in operating profit is due to decline in net interes
ts and businessman acquired 50% of the holdings of Credit Agricole Indoseuz in Nepal Indoseuz Bank in April 2002. The name of the bank
governance and regulatory compliance.

well as non- financial supports towards rehabilitation and welfare of the earthquake victims.
s the country being serviced through 46 Branches, 14 Branchless Banking locations and 82 ATMs.
chievements of our endeavors during the year.
ief Executive Officer
uance, Accounts and Expenditure, Price Division, Debt Recovery, among others.
ustomer delivery models are constantly upgraded so that the expanding customer outreach would get an improved banking experience. Furtherm
ches at Durbar Marg, Lazimpat, Pulchowk, Putalisadak and Lukla.
ke. The bank also donated NPR 10 million to the Prime Minister’s Disaster Relief Fund. We stand united with our people in this hour of national d
n compliance with NRB directive and the provision in BAFIA 2063 requiring banks to have minimum 30% public shareholding, our bank have decide
rofit is due to decline in net interest income. Net interest income of the bank which was NPR 2.99 billion previous year came down to NPR 2.97 b
il 2002. The name of the bank was changed to Nepal Investment Bank Ltd. upon approval of the Bank’s Annual General Meeting, Nepal Ra
d banking experience. Furthermore, NIBL has always worked towards establishing a strong Corporate Governance framework in absolute conform
people in this hour of national disaster
eholding, our bank have decided for Further Public Issue (FPO) in the near future. After the FPO the public shareholding will be increased to 30% f
ear came down to NPR 2.97 billion this year,

ual General Meeting, Nepal Rastra Bank and Company Registar’s office.
ramework in absolute conformity with the regulatory requirements of the Nepal Rastra Bank, helping establish best-in-class practices within
ding will be increased to 30% from existing 20%. The FPO will be at premium and the premium amount received from the FPO will further strength
best-in-class practices within the Nepalese banking industry.
from the FPO will further strengthen the capital base of the Bank.
in net interest income is mainly due to reduction in interest spread (difference between average lending rate and average deposit rate) in p
Despite cut-throat competition in fee based business, the Bank has recorded modest growth in fee based income. Fee and commission i
The bank provided NPR 573.89 million for loss provision this year and has written back NPR 537.70 from loss provision. The net effect is the
480.13 million where as other operating expenses increased
by NPR 32.77 million ( +6.1%) to reach NPR 572.10 million.
The overall net profit of the Bank increased marginally by NPR 22.24 million (+1.1%) to reach NPR 1.96 billion. It was NPR 1.93 billion previou
During the year, the total assets of the bank grew significantly by 21.1% to reach NPR 104.34 billion. Similarly total deposits, total loans
billion, NPR 67.69 billion and NPR 21.46 billion respectively.
The NPA ratio of the bank declined to 1.25% against 1.77% last year. We will continue our efforts to further minimize the NPA level in coming
The total capital adequacy ratio of the bank is at comfortable level of 11.90%, of which 9.54% is in core capital. NRB requires banks to
Similarly, the CD ratio (LCY deposits +Equity) is also maintained at comfortable level of 72.8% against the maximum NRB perm
During the year, the bank redeemed its 8% NIBL Bond 2072 of NPR 250 million which were issued 7 years back. The bank further allot
Return on paid-up capital and return on shareholders’ fund were at 41.1% and 24.8% respectively. The returns registered marginal declines d
An overview of the Bank’s performance during the review
year is presented hereunder:
S. No. Particulars FY 2070-71 FY 2071-72 Growth in Growth in
NPR %
1. Total Assets 86,173 104,345 18,172 21.1

2. Total Deposit 73,831 90,631 16,800 22.8
3. Total Loans and Advances (Gross) 53,458 67,690 14,232 26.6
4. Total Investments 15,615 21,462 5,847 37.4
5. Total Operating Profit 3,168 3,119 (49) (1.6)
(before provision for possible loss)
6. Total Net Profit 1,939 1,962 22 1.1
7. Non-performing Assets (in %) 1.77 1.25 - (0.52)
8. Capital Adequacy Ratio (in %) 11.27 11.90 - (0.63)
9. CD Ratio (LCY Deposit with equity 71.9 72.8 - (0.9)
%)
10. Return on Paid-up Capital (in %)* 46.8 41.1 - (5.7)
11. Return on Shareholders’ Fund (in 27.6 24.8 - (2.8)
%)*
12. Total Customer Base (in Nos.) 558,766 629,217 70,451 12.61
13. Market Share in Deposit (in %) 6.1 6.2 - 0.1
14. Market Share in Lending (in %) 6.0 6.2 - 0.2
2. Impact, if any, of the National and International Situation
upon the Business of the Company:
According to the IMF, the emerging and developing economies are projected to expand by 4.2 percent in 2015 compared to 4.6 pe
On the domestic front, the GDP growth remained lower in 2014/15 compared to the previous year because of contraction in the grow
In the eleven months of 2014/15, the CPI (consumer price index based) average inflation rate stood at 7.2 percent. The year on year (
7.4 percent in mid-June 2015. Such inflation had stood 9.5 percent in the corresponding month of the previous year. In the fiscal year 2071/72
The overall BoP was in a surplus of Rs. 127.20 billion in the eleven months of 2014/15. The BoP surplus had stood at Rs. 109.56 billion in
recorded a surplus of Rs. 95.29 billion in the review period on the back of a significant surplus in service and transfer accounts. Under the cu
In the review period, total merchandise exports decreased by 4.8 percent while total merchandise imports increased by
7.0 percent. Of the total exports, exports to India, China, and other countries decreased by 6.3 percent, 0.8 percent and
1.8 percent respectively. Similarly imports from India, China and other countries increased by 1.4 percent, 41.1 percent and 8.0 percent respe
In the review period, total trade deficit expanded by 8.7 percent to Rs. 612.87 billion. Such deficit had increased by
28.6 percent during the same period of the previous year. Of the total trade deficit, trade deficit with India, China and other countries increased
10.0 percent respectively in the review period. Such deficit
with India, China and other countries had increased by
30.3 percent, 13.1 percent and 32.2 percent respectively in the corresponding period of the previous year.
The gross foreign exchange reserves increased by 21.7
percent to Rs. 809.48 billion in mid-June 2015 from Rs.
665.41 billion in mid-July 2014. In USD terms, foreign
exchange reserves increased by 14.2 percent to USD
7.92 billion in mid-June 2015 compared to mid-July 2014. Based on the trend of imports during the eleven months of the review year, the exis
The short-term interest remained at low level in 2014/15, albeit slightly higher than that of a year ago. In the last month of 2014/15, the
bank rate among commercial banks remained at 1.01
percent in the review month compared to 0.16 percent a year ago.
In nutshell, the existing excess liquidity in the banking sector has not only posed the challenge, but also offers opportunities by av
3. Achievements in the Current Fiscal Year 2072-73 as at the date of report and opinions of the Board of Directors on matters to be done in th
The total deposits and lending of the bank reached to NPR
93.17 billion and NPR 72.76 billion as of Bhadra end 2072. For works to be done in future, please refer point no. 25 (b) of this report.
4. Industrial and Professional Relations of the Company: The Bank has established a cordial and professional relationship with all the sta
5. Changes made in the Board of Directors, and reasons
therefore:
During the year, there has been some major changes in the share ownership of the Bank. In compliance of NRB’s directive barring ban
Rastriya Beema Sansthan representing Group C shareholders transferred its shareholding to Rastriya Beema
Company Ltd. owing to split of the company’s business to Life and Non-life. Mr. Ram Bahadur Khadka, director representing Rastriya Beema
On behalf of the shareholders, I would like to convey my sincere thanks to the outgoing Directors for their invaluable contribution and support
6. Main Factors Affecting the Business:
The main risk and other factors affecting the Bank’s
business are:
• Risks resulting from extending funded and non-funded
facilities to customers
• Risks arising from sudden volatility in liquidly position in the banking sector and challenge created in asset liability management
• Risks arising from changes in exchange rates while doing foreign exchange transactions
• Problems in repayment of loan and interest due to impact on various sectors of the economy caused by the devastating earthquake
• Risks arising from changes in the fiscal, monetary and
economic policy of the country
• Risks arising from slackness in global market economy
• Challenge to provide continuous high returns to shareholders in the context of increased capitalization required by regulator
• Lack of alternate investment avenues
• Affect on banks interest income due to restriction on interest spread by central bank
• Slow economic growth, frequent bandhs, extensive load-shedding hours etc. is affecting all sectors of the economy and the banking sector
7.Board Of Directors’ reaction to the remarks made, if any,
in the Audit Report:
There are no adverse remarks in the audit report except comments on routine matters arising in the normal course of business. The Boa
8.The Amount Recommended for Distribution as Dividend: Due to recent policy regarding NPR 8 billion as minimum required paid-up capital w
9. In the event of forfeiture of shares, details regarding the number of forfeited shares, face value of such shares, total amount received by the
During the year, no shares have been forfeited.
10. Progress Made in the Business of the Company and its Subsidiary Company During the Previous Financial Year and Review of the Situat
NIBL has incorporated a merchant banking subsidiary company named “NIBL Capital Markets Limited” with authorized capital
The company has started providing Portfolio Management services and has expanded its Merchant Banking services. It
also launched its first mutual fund scheme – NIBL Samriddhi Fund - I of NPR 1 billion and got listed in NEPSE. The company made pr
11. Main Transactions Between the Company and its Subsidiary Company During the Financial Year and Important Changes, if any, ther
NIBL Capital Markets Ltd held deposits of NPR 0.82 million in various accounts in the Bank as at Ashad end 2072. The Bank paid NPR 0.19 m
A staff from the Bank has been deputed as CEO of NIBL Capital Markets Ltd. During the year, total allowance of NPR
1.20 million was paid by the Company.
The Bank has entered into a Service Level Agreement (SLA) with the company for provision of management services as well as other ancillar
The Bank has appointed NIBL Capital markets Ltd. as its Share Registrar for which the Bank will pay a fee of NPR 500,000 per annum to
The Bank has invested NPR 140 Million in NIBL Mutual
Fund- NIBL Samriddhi Fund - I.
The Bank received underwriting commission of NPR
1.41 million for underwriting the share issues managed by the subsidiary. Similarly, the Bank received collection and refund commission of NP
All transaction between the Holding Company and NIBL Capital Markets Ltd are on an arm’s length basis.
The bank has also invested in card and mobile banking business equivalent to NPR 8.28 million and NPR 25.00 million in Flexi-term Pvt. Ltd.
The bank has also invested amount of NPR 25.00 million in National Microfinance Company Limited. The company generated NPR 15.8
12. Information Furnished to the Company by its Basic
Shareholders During the Previous Financial Year:
None.
13. Particulars of the shareholding taken by the Directors and Officers of the Company in the Previous Financial Year and, in the event of thei
None.
14. Particulars of Information Furnished by any Director/ Close Relative about his Personal Interest in any Agreement Signed by the Com
15. Particulars of Buy-Back of Shares, if any, the reasons for such Buy-Back, number and face value of such shares, and amount paid by the
There was no buy-back of shares during the year under
review.
16. Whether or not there is an Internal Control System, and if
there is any such System, Details thereof:
The Board of Directors has constituted Audit Committee, Risk Management Committee and Human Resource Development Comm
In addition, the Bank has also constituted a separate Compliance Department which ensures compliance with internal as well as exte
The Bank has established a Risk Management Department to identify and minimize risks and to inculcate risk culture in the Bank. The Bank h
• Risk Management Committee: The Committee is chaired by non-executive director Mr. Bhuwaneshwar Prasad Shah and comprises of Dire
• Human Resource Development Committee: The Committee is chaired by non-executive director Mr. Deepak Man Sherchan and c
• Audit Committee: The functions and composition of the
Committee is dealt in Point No. 18 below.
17. Particulars of the Total Management Expenses of the
Previous Financial Year:
The Bank has an independent Internal Audit Department
headed by an experienced auditor. The Department performs its functions under the direct supervision and control of the Audit Committee and
independent audit firms to review specific areas of operation.
Employee Expenses during the Previous FY: NPR 480.10 million
Administrative Expenses during the Previous FY: NPR 572.11 million
Total: NPR 1,052.84 million
18. Names of the Members of the Audit Committee, Remuneration, Allowances and Facilities being Received by them and Functions D
The Bank’s Audit Committee, under the chairmanship of a non-executive director, Mr. Janardan Dev Pant, comprised of Mr. Prajanya
The Committee reviews the Bank’s financial condition, its internal control and risk management systems, statutory and regulatory
During the year, ten such meetings were held. The Chairman and the member Directors are paid NPR 8,000 each, per meeting, b
Following matters were chiefly discussed in the audit Committee meetings during the FY 2071-72:
• Review and discussion on the internal audit reports of branches/departments along with the branch mangers’/department heads
• Analysis of quarterly financial position of the bank,
• Review and discussion on Internal audit programs,
• Physical verification report of cash and cash equivalent present in head office and all branches,
• Discussion and follow-up on the external auditor’s
report and NRB inspection report,
• Other matters.
19. Payments due, if any, to the Company from any Director, Managing Director, Executive Chief or Basic Shareholder of the Comp
No such payments are due to the Company.
20. Amount paid as Remuneration , Allowances and Facilities to the Directors, the Executive Chief and other Office-bearers:
As per Annexure “A”.
21. Dividend yet to be Collected by Shareholders: Dividends declared by the Bank but not claimed by shareholders till the end of FY
22. Details of properties purchased or sold as per
Section 141 of Companies Act 2063:
There was no any purchase or sale of properties during the year.
23. Details of Transactions carried on between the
associated companies pursuant to Section 175:
Please refer to Point No.11 above.
24 Any other matters required to be set out in the report of Board of Directors under this Act and the prevailing Law:
The required matters have been dealt with at relevant places of this report.
25. Any Other Matters:
a. New Branches, Products and Services during FY 2071-72:
• The Bank has opened its 45th branch at Itahari, Sunsari and 46th branch at Patihani, Chitwan. The commencement of the ne
• The Bank has launched 'Visa Fee Collection Service' with an exclusive collaboration with US Embassy in Nepal. We now are the o
• With an objective of providing innovative products to
our customers, the Bank has launched a new premier
Savings Account scheme named Surakshya Bachat Khata. The unique feature of this product is that accountholders will be en
• NIBL has launched a low cost housing loan scheme at nominal interest rate as an initiative to provide relief to earthquake victims.
• In order to promote financial literacy amongst the youth, NIBL has launched co-branded card scheme, 'NIBL College Debit Card'. The u
• NIBL has partnered with Resonance Nepal for card acquiring business whereby Resonance Nepal will deploy Point of Sales (P
• We have commenced VISA Associate membership for Development Banks in Nepal. Development Banks will now be able to acq
• As a part of World Food Program's (WFP) Cash Distribution program to Flood Victims, the Bank provided VISA Cards to 16,70
• We have tied up with Nepal Army to provide deprived sector loans to ex-army personnel. The objective is to contribute towards entrep
• ICRA Nepal has assigned "[ICRANP-IR] A" credit rating to our Bank. The "A" rating demonstrates our strong creditworthiness
• We issued 8% NIBL Bond 2078 worth NPR 750 million in
Ashad 2071. The issue received overwhelming response from investors. The said bonds were allotted on Shrawan 11, 2071. We also red
b. Future Plans & Strategy
• The Bank plans to open four more branches in the
coming fiscal year to make number of branches to fifty.
• We plan to expand branchless banking locations having a strong presence country-wide, catering to rural and un/ under banked customers.
• We plan to increase our market share in remittance business through acquiring higher remittance volumes and penetrating new are
• We plan to network with more international card service providers to provide diversified choices to our customers. After having Visa and Ma
• In order to make card transactions more secure, we are all set to launch Smart Chip based EMV Cards that will be available for both existin
• We are also initiating Card to Card Inter Bank Fund Transfer facility through ATMs that will enable account holders of NIBL and M
• With an increasing trend in online transactions, we are gearing up to initiate 'Electronic Payment Gateway' to further enhance our e
• Besides above, other future plans include:
• Launch new products and services which will help us to
increase our customer base and increase the mix of low cost deposits
• Strengthen and upgrade our risk management systems and practices to mitigate risks related to credit, liquidity and operation risks.
• Diversify our customer portfolio through a financial inclusion
plan incorporating the rural population.
• Increase the productivity and skill of our human resource by providing them trainings, team building exercises, etc.
• Identify new streams of revenue to increase fee based income.
• Add new value added services through ATMs, ebanking, mobile banking, POS machines and other delivery channels.
• Lastly, the Bank is working towards building a greater image in banking industry by providing quality services and is pursuing a strateg
c. Human Resources:
We understand that committed and productive human resource is essential to achieve our organizational objectives. The bank has
We have been investing in staff learning and development to constantly expand and evolve our knowledge and skill b
the-job hands on training experience, 335 participants availed various training opportunities during the review year. They benefited from
Our priority is to ensure that our workforce is equipped
with the right skills and competencies required for productive contribution. We believe that any investment in improving the quality
d. Social and Community Works (CSR):
Corporate Social Responsibility (CSR) has been a vital ethos for Nepal Investment Bank since its inception. The bank has been a pioneer and
In view of supporting progressive development by extending diversified CSR activities, NIBL has been contributing to various a
advancing instantaneous aids following the earthquake.
Throughout this hour of national tragedy while the need for support was felt the most by the nation, NIBL has been benevolently exten
The bank contributed NPR. 10 million to Prime Minister’s Disaster Relief Fund to support this philanthropic cause and distributed galvanized
In another natural calamity relief initiative, the Bank contributed NPR. 1 million to Prime Minister’s Disaster Relief Fund with an objective t
e. Good Corporate Governance:
The success of any company largely depends on Good Corporate Governance practices followed by that company. We at NIBL are awa
2063, and Securities Transactions Act, 2063.
f. KYC and Anti-Money Laundering:
The Bank complies with the provisions of Nepalese Money Laundering Prevention Act, 2008 and regulations made there under as well
26. Acknowledgments
On behalf of the Board, I wish to thank the external auditors for their timely completion of audit and professional suggestio
Lastly, we thank all our customers for giving the Bank an opportunity to serve them and without whose support, the development of the
Thank you,
Bhuwaneshwor P. Shah Prithivi B. Pandé
Director Chairman
Date: Ashwin 11, 2072 (September 28, 2015)
erest spread (difference between average lending rate and average deposit rate) in pursuant to Nepal Rastra Bank’s directive asking banks to limit the
the Bank has recorded modest growth in fee based income. Fee and commission income which was NPR 689.95 million in previous year increased b
ion this year and has written back NPR 537.70 from loss provision. The net effect is the Bank provided NPR 36.18 million for net additional loss provision
y by NPR 22.24 million (+1.1%) to reach NPR 1.96 billion. It was NPR 1.93 billion previous year.
nificantly by 21.1% to reach NPR 104.34 billion. Similarly total deposits, total loans and advances and total investments grew by 22.8%, 26.6%
1.77% last year. We will continue our efforts to further minimize the NPA level in coming years.
fortable level of 11.90%, of which 9.54% is in core capital. NRB requires banks to maintain a minimum of 10.0% in total capital fund and 6.0% in
also maintained at comfortable level of 72.8% against the maximum NRB permissible of 80%.
d 2072 of NPR 250 million which were issued 7 years back. The bank further allotted 8% NIBL Bond 2078 of NPR 750 million on Shrawan 11, 2071
’ fund were at 41.1% and 24.8% respectively. The returns registered marginal declines due to shrinkage in operating profit. Our market share in deposit and
eloping economies are projected to expand by 4.2 percent in 2015 compared to 4.6 percent in 2014. Similarly, economic growth rate in low income cou
lower in 2014/15 compared to the previous year because of contraction in the growth rate of agriculture sector due to delayed monsoon and the neg
price index based) average inflation rate stood at 7.2 percent. The year on year (y-o-y) CPI inflation rate increased by
d 9.5 percent in the corresponding month of the previous year. In the fiscal year 2071/72. As monetary expansion has been at the expected level, price of p
in the eleven months of 2014/15. The BoP surplus had stood at Rs. 109.56 billion in the corresponding period of the previous year. Despite high tr
eriod on the back of a significant surplus in service and transfer accounts. Under the current account, net service income accumulated a surplus of Rs.
ased by 4.8 percent while total merchandise imports increased by
na, and other countries decreased by 6.3 percent, 0.8 percent and
China and other countries increased by 1.4 percent, 41.1 percent and 8.0 percent respectively.
by 8.7 percent to Rs. 612.87 billion. Such deficit had increased by
year. Of the total trade deficit, trade deficit with India, China and other countries increased by 2.5 percent, 42.8 percent and
vely in the corresponding period of the previous year.
014. Based on the trend of imports during the eleven months of the review year, the existing level of reserves is sufficient for financing merchandise impo
15, albeit slightly higher than that of a year ago. In the last month of 2014/15, the weighted average 91-day treasury bills rate remained at 0.1739
nt a year ago.
nking sector has not only posed the challenge, but also offers opportunities by availing resources required for economic resurrection and investm
as at the date of report and opinions of the Board of Directors on matters to be done in the future:
2072. For works to be done in future, please refer point no. 25 (b) of this report.
ny: The Bank has established a cordial and professional relationship with all the stakeholders. We believe that this cordial relationship with all the s
anges in the share ownership of the Bank. In compliance of NRB’s directive barring banks to cross-hold shares, RBB sold its 15% (Group B) promoter
p C shareholders transferred its shareholding to Rastriya Beema
ss to Life and Non-life. Mr. Ram Bahadur Khadka, director representing Rastriya Beema Sansthan (Group C), resigned and in his place Rastriya Beem
my sincere thanks to the outgoing Directors for their invaluable contribution and support for the development of the Bank and welcome the incoming Direct
on in the banking sector and challenge created in asset liability management

e doing foreign exchange transactions
mpact on various sectors of the economy caused by the devastating earthquake
areholders in the context of increased capitalization required by regulator
n interest spread by central bank

load-shedding hours etc. is affecting all sectors of the economy and the banking sector is no exception.
t except comments on routine matters arising in the normal course of business. The Board of Directors has taken note of such comments and recommend
dend: Due to recent policy regarding NPR 8 billion as minimum required paid-up capital within fiscal year 2074, the 440th meeting of the Board of Directors
g the number of forfeited shares, face value of such shares, total amount received by the Company for such shares prior to the forfeiture thereof, proceeds
and its Subsidiary Company During the Previous Financial Year and Review of the Situation Existing at the End of that Financial Year:
ubsidiary company named “NIBL Capital Markets Limited” with authorized capital of NPR 500 million and Issued capital of NPR 145 million. O
ment services and has expanded its Merchant Banking services. It
mriddhi Fund - I of NPR 1 billion and got listed in NEPSE. The company made profit of NPR 6.3 million last year while in 2071/72 the profit of the
d its Subsidiary Company During the Financial Year and Important Changes, if any, therein:
million in various accounts in the Bank as at Ashad end 2072. The Bank paid NPR 0.19 million as interest on the said deposits during the year.
IBL Capital Markets Ltd. During the year, total allowance of NPR
nt (SLA) with the company for provision of management services as well as other ancillary support. The Bank receives a fee of NPR 600,000 from the comp
d. as its Share Registrar for which the Bank will pay a fee of NPR 500,000 per annum to the latter. A staff from the bank has been deputed to the company
ed by the subsidiary. Similarly, the Bank received collection and refund commission of NPR 4.15 million for acting as banker to the issues managed by the s
BL Capital Markets Ltd are on an arm’s length basis.
ng business equivalent to NPR 8.28 million and NPR 25.00 million in Flexi-term Pvt. Ltd. and M. Nepal Ltd. Similarly,
00 million in National Microfinance Company Limited. The company generated NPR 15.8 million in profit during the fiscal year 2071/72.
tors and Officers of the Company in the Previous Financial Year and, in the event of their involvement in share transaction of the Company, details of inform
Director/ Close Relative about his Personal Interest in any Agreement Signed by the Company During the Previous Financial Year: There is no any such
sons for such Buy-Back, number and face value of such shares, and amount paid by the Company for such Buy-Back:
mmittee, Risk Management Committee and Human Resource Development Committee as per the guidelines of Nepal Rastra Bank and the provi
arate Compliance Department which ensures compliance with internal as well as external rules and regulations.
rtment to identify and minimize risks and to inculcate risk culture in the Bank. The Bank has also formulated a number of policies, procedures and guideline
haired by non-executive director Mr. Bhuwaneshwar Prasad Shah and comprises of Director, Mr. Mohan Madan Budathoki (Chairman- Audit Committee), M
The Committee is chaired by non-executive director Mr. Deepak Man Sherchan and comprises of Mr. Prajanya Rajbhandary (Director), Mr. Jyoti Prak
artment
performs its functions under the direct supervision and control of the Audit Committee and submits its reports directly to the latter. To supplement the in-hou
ee, Remuneration, Allowances and Facilities being Received by them and Functions Discharged/Suggestions Made by the Committee:
ship of a non-executive director, Mr. Janardan Dev Pant, comprised of Mr. Prajanya Rajbhandary and Mr. Mohan Madan Budathoki as Member Dire
ition, its internal control and risk management systems, statutory and regulatory compliances, audit programs etc. After detailed discussion on
he Chairman and the member Directors are paid NPR 8,000 each, per meeting, by way of Audit Committee meeting fee.
audit Committee meetings during the FY 2071-72:
ports of branches/departments along with the branch mangers’/department heads’ reply and compliance status,
alent present in head office and all branches,
any Director, Managing Director, Executive Chief or Basic Shareholder of the Company, or their Close Relatives, or their Related Entities:
and Facilities to the Directors, the Executive Chief and other Office-bearers:
vidends declared by the Bank but not claimed by shareholders till the end of FY 2071-72 stood at NPR 318,744,447.
ort of Board of Directors under this Act and the prevailing Law:
evant places of this report.
ng FY 2071-72:
Itahari, Sunsari and 46th branch at Patihani, Chitwan. The commencement of the new branches have come as part of the bank’s strategy of focusing o
ervice' with an exclusive collaboration with US Embassy in Nepal. We now are the only bank in Nepal to provide US Visa Fee payments facility thro
chat Khata. The unique feature of this product is that accountholders will be entitled to Free Life Insurance of NPR 100 thousand and Accidental D
e at nominal interest rate as an initiative to provide relief to earthquake victims.
outh, NIBL has launched co-branded card scheme, 'NIBL College Debit Card'. The unique feature of this scheme enables students to use the card as a
card acquiring business whereby Resonance Nepal will deploy Point of Sales (POS) terminals and extending technical support to boost card bus
ership for Development Banks in Nepal. Development Banks will now be able to acquire VISA Cards through NIBL. Moreover, we have also started
Cash Distribution program to Flood Victims, the Bank provided VISA Cards to 16,700 Branchless Banking (BLB) Customers in rural areas. The fa
ed sector loans to ex-army personnel. The objective is to contribute towards entrepreneurship development through the retired army staff through
credit rating to our Bank. The "A" rating demonstrates our strong creditworthiness and has provided additional transparency for our shareholders a
ponse from investors. The said bonds were allotted on Shrawan 11, 2071. We also redeemed 8% NIBL Bond 2072 of NPR 250 million, which was ma
aving a strong presence country-wide, catering to rural and un/ under banked customers.
tance business through acquiring higher remittance volumes and penetrating new areas. We will focus on adding more agent banks in our network and
rvice providers to provide diversified choices to our customers. After having Visa and MasterCard in our network, we are now in the process of issuing and
e are all set to launch Smart Chip based EMV Cards that will be available for both existing and prospective customers. The technology will be implemented
Fund Transfer facility through ATMs that will enable account holders of NIBL and Member Banks to transfer funds within NIBL network.
we are gearing up to initiate 'Electronic Payment Gateway' to further enhance our e-commerce services. The facility will enable our cardholders to pu
f low cost deposits

systems and practices to mitigate risks related to credit, liquidity and operation risks.
ource by providing them trainings, team building exercises, etc.

e based income.
nking, mobile banking, POS machines and other delivery channels.
greater image in banking industry by providing quality services and is pursuing a strategy of growth to become the top most bank in the country.
man resource is essential to achieve our organizational objectives. The bank has been employing the skills and abilities of the workforce efficient
and development to constantly expand and evolve our knowledge and skill base in order to enhance organizational and staff performance
ants availed various training opportunities during the review year. They benefited from 93 seminars/training events on various subjects like Credit Ap
d for productive contribution. We believe that any investment in improving the quality of our human capital will ultimately translate to organi
al ethos for Nepal Investment Bank since its inception. The bank has been a pioneer and a trendsetter in extending CSR support for the welfare of commun
by extending diversified CSR activities, NIBL has been contributing to various aid programs and events, encompassing art, heritage, educatio
ed for support was felt the most by the nation, NIBL has been benevolently extending continuous financial as well as non- financial supports to
er’s Disaster Relief Fund to support this philanthropic cause and distributed galvanized corrugated sheets worth NPR. 11.6 million to aid earthquake
nk contributed NPR. 1 million to Prime Minister’s Disaster Relief Fund with an objective to provide relief assistance to Darchula River flood victims througho
Good Corporate Governance practices followed by that company. We at NIBL are aware of this fact and have been following directives issued by Nepa
se Money Laundering Prevention Act, 2008 and regulations made there under as well as guidelines issued by Nepal Rastra Bank regarding anti-mone
rnal auditors for their timely completion of audit and professional suggestions. I also extend sincere thanks to our shareholders for th
an opportunity to serve them and without whose support, the development of the Bank and growth in business would not have been possible.
k’s directive asking banks to limit the interest spread to 5% from this fiscal year. Consequently, interest spread of the bank which was 5.2% on an aver
5 million in previous year increased by NPR 44.81 million (+6.5%) to reach NPR 734.76 million. Exchange income however posted marginal decline.
lion for net additional loss provision this year. Last year the net additional loss provision was NPR 138.12. On the operating cost side, there is a no
nvestments grew by 22.8%, 26.6% and 37.4% to reach NPR 90.63
0.0% in total capital fund and 6.0% in core capital fund.
PR 750 million on Shrawan 11, 2071 which were issued in Ashad 2071. We believe the issuance of the bond will strengthen our Tier II capital and support i
profit. Our market share in deposit and lending stand at 6.2% and 6.2% respectively. Despite cut-throat competition amongst banks, we have been able to in
onomic growth rate in low income countries is projected to contract in 2015. The economy of these countries is projected to expand by 5.1 percent in 2
due to delayed monsoon and the negative impact of the April 25 earthquake and subsequent aftershocks. According to the preliminary estimates of the C
been at the expected level, price of petroleum products has fallen and inflation is contained in the neighboring economy; the annual inflation is estimated t
the previous year. Despite high trade deficit, current account
income accumulated a surplus of Rs. 24.32 billion and remittance inflow increased by 12.4 percent to Rs. 551.74 billion. In USD terms, remittance inflow in
ent for financing merchandise imports of 13.1 months, and merchandise and services imports of 11.3 months.
asury bills rate remained at 0.1739 percent compared to 0.02 percent a year ago. Similarly, the weighted average inter-
r economic resurrection and investment expansion. The investment climate is expected to be favorable in coming days due to the ease in the political tr
s cordial relationship with all the stakeholders developed on the basis of professionalism and transparency will be fruitful, and prove to be a success
BB sold its 15% (Group B) promoter shares in our bank through auction during the year. Till date there are no representatives in board from the investors
gned and in his place Rastriya Beema Company Ltd. appointed Mr. Ramesh Raj Bhattarai as the director representing the company on the Board of this b
ank and welcome the incoming Directors.
e of such comments and recommendations, and has initiated requisite steps to regularize the same.
0th meeting of the Board of Directors of the Bank has proposed 1.74% cash dividend (NPR 8,28,68,272) and 33% stock dividend (NPR 1,57,44,97,155
ior to the forfeiture thereof, proceeds of sale of such shares after the forfeiture thereof, and refund of amount, if any, made for such forfeited shares:
Financial Year:
ssued capital of NPR 145 million. Of the total issued capital, NIBL has subscribed 70% (i.e. NPR 101.50 million) as its equity participation and th
ar while in 2071/72 the profit of the company increased by NPR 3.2 million to NPR 9.5 million.
deposits during the year.
a fee of NPR 600,000 from the company for the SLA.

ank has been deputed to the company for assisting in share registrar services. The salary cost of such staff is reimbursed by the company to the Bank.
anker to the issues managed by the subsidiary.
cal year 2071/72.
ction of the Company, details of information received by the Company from them in that respect:
ancial Year: There is no any such agreement and consequently, no disclosure in this respect has been made.
of Nepal Rastra Bank and the provisions of the Companies Act. The committees meet periodically and discharge their functions as per the laid guidelines
of policies, procedures and guidelines in each of the risk areas to provide effective internal controls across the organization. Such policies, procedures
thoki (Chairman- Audit Committee), Ms. Srijana Pandey (Head- Credit), Mr. Rajan Amatya (Head- Operations) and Ms. Sujata Joshi (Head- Risk Mana
jbhandary (Director), Mr. Jyoti Prakash Pandey (Chief Executive Officer), Mr. Prabir Rana (Head-HR) and Mr. Sachin Tibrewal (Head- Accounts
o the latter. To supplement the in-house internal audit department, the Bank, whenever necessary, out sources audit service from
de by the Committee:
Madan Budathoki as Member Directors along with the Bank’s Head of Internal Audit, Mr. Amir Bhattarai, as its Member Secretary. Mr Madan Moh
ms etc. After detailed discussion on the findings of the internal audit as well as external audit/NRB inspection reports, the Committee provides nec
or their Related Entities:
rt of the bank’s strategy of focusing on inclusive banking to support the industrial, trading and agricultural activities of the areas. The newly opened branche
US Visa Fee payments facility through all of our 46 branches.
f NPR 100 thousand and Accidental Death Insurance of NPR 200 thousand.
enables students to use the card as a Debit Card as well as Student ID Card.
ng technical support to boost card business in the domestic market.
L. Moreover, we have also started providing Credit Card Module for our member banks, allowing them to issue Credit Card for their customers.
LB) Customers in rural areas. The facility enables customers to simply deposit cash through local agents and access their funds through ATMs, branches o
ough the retired army staff throughout the country. We have received overwhelming response from Nepal Army for our endeavor.
l transparency for our shareholders and regulators. The annual surveillance exercise for current fiscal year 2072- 73 is under process.
72 of NPR 250 million, which was matured on Ashad 24 2072. The said bonds were issued in FY Ashad 25 2065.
more agent banks in our network and plan to expand our payout locations in remote areas.
re now in the process of issuing and acquiring another well renowned international card- China Union Pay (CUP) cards.
The technology will be implemented on NIBL Debit Card, Credit Card, Travel Card and Prepaid Cards.
s within NIBL network.
cility will enable our cardholders to purchase goods and services online through Debit or Credit Cards, and allow our member merchants to implement an
most bank in the country.
d abilities of the workforce efficiently to accomplish its strategic goals. We have endeavored to attract and retain a motivated team of professionals who
rganizational and staff performance. We support the development of our employees through both in-house and external developmental programs.
s on various subjects like Credit Appraisal, International Trade Finance, KYC/AML, NRB Regulations on INR, Counterfeit notes & signa
will ultimately translate to organizational growth and increased shareholder value.
SR support for the welfare of community and nation at large. We firmly believe that contribution to the society is essential for development of the country, an
encompassing art, heritage, education, health, security and sports sectors to its range of CSR initiatives. However, while maintaining its support for develop
well as non- financial supports towards rehabilitation and welfare of the earthquake victims.
NPR. 11.6 million to aid earthquake victims re-construct their houses. The support was furtherance to donation of tents, and food and clothing at earthqua
Darchula River flood victims throughout the country. Moreover, the Bank has been actively contributing towards development of education s
following directives issued by Nepal Rastra Bank, provisions of Bank & Financial Institutions Act 2063, Companies Act
epal Rastra Bank regarding anti-money laundering. In addition, the Bank has its own policies and procedures related to AML. Regular trainings are organize
hanks to our shareholders for their continued support and encouragement. We sincerely convey our thanks to the Government of Nepal, Min
ess would not have been possible.
bank which was 5.2% on an average in previous year came down to 4.6% this year. The reduction of 0.6% in spread rate adversely affected the oper
owever posted marginal decline. It declined by NPR 1.80 million (-0.4%) to reach NPR 458.41 million. It was NPR 460.22 million previous year.
perating cost side, there is a nominal increase. Staff expenses increased by NPR 42.37 million (+9.7%) to reach NPR
en our Tier II capital and support in expanding our risk assets in coming years.
gst banks, we have been able to increase our market share by 0.1% in deposit and 0.2% in lending.
cted to expand by 5.1 percent in 2015 compared to 6.0 percent in 2014. Economic growth rates in the neighboring countries, India and China, are projecte
e preliminary estimates of the Central Bureau of Statistics, the real GDP grew by 3.0 percent at basic price and 3.4 percent at producers’ price in the re
the annual inflation is estimated to have remained around 7.5 percent in 2014/15, lower than the target.
In USD terms, remittance inflow increased by 11.2 percent to USD 5.55 billion in this period.
s due to the ease in the political transition as well as the implementation of the timely announced government’s budget. The recently promulgated constituti
tful, and prove to be a successful medium for future progress of the Bank.
atives in board from the investors of those shares.
he company on the Board of this bank. Mr. Bhattrai too vacated the office of director owing to his retirement from the Company and in his place the Compan
ock dividend (NPR 1,57,44,97,155) from the profits of the Bank.

e for such forfeited shares:
as its equity participation and the remaining 30% is set aside for public. The scope of the said subsidiary is Merchant Banking, Depository Participa
by the company to the Bank.

unctions as per the laid guidelines and provision.
ation. Such policies, procedures and guidelines are subject to periodic assessment, evaluation and revision to ensure that they are up-to-date and effectiv
s. Sujata Joshi (Head- Risk Management) as its members. The Committee is responsible for overseeing the risk governance structure and reviewing
chin Tibrewal (Head- Accounts & Finance) as its members. The Committee is responsible for formulating appropriate human resource policies for the B
Member Secretary. Mr Madan Mohan Budathoki has been elected as the chairman of the committee because of the resignation of Mr. Janardan Dev Pant.
orts, the Committee provides necessary suggestions to the Board of Directors.
areas. The newly opened branches shall further strengthen bank’s position in the Eastern and Mid Region of Nepal. The bank also added two more ATMs
Card for their customers.
r funds through ATMs, branches or other BLB Agents.
ber merchants to implement an online payment service for their customers. Further, we will also be introducing VBV (Verified by Visa) security that fac
otivated team of professionals who are empowered to provide high value services. NIBL has 969 vibrant workforce who have been collectively colla
xternal developmental programs. Apart from on-
, Counterfeit notes & signature verification, Comprehensive banking, Income tax & VAT, Unified directives, Operations Risk, Retail Lendi
for development of the country, and hence, the notion has been resolutely been reflected through the Bank’s initiatives of giving back to the society.
maintaining its support for development of nation’s diverse sectors over the years, the Bank’s prime CSR objective and priority this year has been to al
and food and clothing at earthquake affected areas through NIBL Staff Welfare Fund on voluntary service from its employees. The bank also exten
development of education sector. This year, NIBL has provided financial aid to Samaanata Foundation, an initiative that aims to promote e
ML. Regular trainings are organized by the Bank to update staff on issues related to KYC and AML. The Bank has been requesting its customers, to update
o the Government of Nepal, Ministry of Finance and Nepal Rastra Bank and Securities Exchange Board of Nepal (SEBON) for their continued sup
d rate adversely affected the operating profit of the Bank by NPR 360 million and net profit by NPR 220 million. Besides, net interest income also got adver
0.22 million previous year.
ies, India and China, are projected to be at 7.5 percent and 6.8 percent respectively in 2015. These countries had attained growth of 7.3 percent and 7.4 pe
ercent at producers’ price in the review year. Such growth rates were 5.1 percent and 5.4 percent respectively in the previous year.
he recently promulgated constitution will help in economic development and banking sector will have a greater role to play in the coming days.
pany and in his place the Company has appointed Mr. Bir Bikram Raymajhi as director on the board of the Bank w.e.f Asoj 11, 2072. Similarly, representin
ant Banking, Depository Participant, Mutual Fund, Portfolio Management, Private Equity and Advisory services.
at they are up-to-date and effective to identify and mitigate risks.
ernance structure and reviewing and monitoring the effectiveness of risk management systems in the Bank.
human resource policies for the Bank and review the same periodically to ensure that it is commensurate with industry standards.
nation of Mr. Janardan Dev Pant.
bank also added two more ATMs in this year. NIBL now has 46 branches and one extension counter along with 82 ATMs throughout Nepal.
(Verified by Visa) security that facilitates extra security on online transactions.
who have been collectively collaborating to deliver efficient services to the satisfaction of our clients. Of the total workforce, 44% are female staffers and
Operations Risk, Retail Lending, Debt Recovery, Remittance Operation and other team based sporting events. The goal of our learning approach is to
es of giving back to the society.

nd priority this year has been to alleviate the desolation inflicted by the earthquake that struck Nepal on April 25, 2015. NIBL has been proactive in initiating
mployees. The bank also extended financial support to Himani Trust, and Federation of Nepalese Chambers of Commerce and Industry (FNCCI) wi
nitiative that aims to promote equality and empowerment by providing quality higher education to students from poor socio-economic backgrounds.
equesting its customers, to update their KYC details, if not up-to-date, at regular intervals.
al (SEBON) for their continued support and guidance. I would also wish to thank the Management and staff of Nepal Investment Bank Ltd. for their ded
net interest income also got adversely affected due to surplus liquidity prevailing in the banking system without commensurate demand for credit and la
d growth of 7.3 percent and 7.4 percent respectively in 2014. World trade volume, which increased by 3.2 percent in 2014, is projected to grow by 4.1
o play in the coming days.

soj 11, 2072. Similarly, representing Group “A” shares Mr. Janardan Dev Pant has resigned due to personal reason effective Bhadra 15, 2072. Currently th
TMs throughout Nepal.
rce, 44% are female staffers and 237 staff members have completed more than 10 years of service in the bank. Our aim is to develop and effectively
goal of our learning approach is to ultimately increase organizational performance and that can be achieved by developing staff to enable them to consisten
BL has been proactive in initiating relief programs to support earthquake affected victims,
ommerce and Industry (FNCCI) with an objective to further support earthquake affected victims. NIBL’s constant relief supports have consequently aided vic
ocio-economic backgrounds.
Investment Bank Ltd. for their dedication and hard work.

surate demand for credit and lack of alternative investment avenues. Interest rates on treasury bills are almost zero which has significantly reduced in
2014, is projected to grow by 4.1 percent in 2015.

ive Bhadra 15, 2072. Currently this seat in the board remains vacant.
aim is to develop and effectively utilize our human resource to fulfill our mission and support business growth.
g staff to enable them to consistently deliver high quality service.
ports have consequently aided victims recover and gradually develop a sustainable environment. The Bank’s future endeavors include extending
which has significantly reduced income from investments.
re endeavors include extending financial support for restoration of National Heritage Sites that has been demolished by the earthquake.
olished by the earthquake.
Annexure A
Amount Paid as Remuneration, Allowances and Facilities to the Directors, the Executive Chief and Other Office- bearers
a) Directors:
b) Annual Salary, Allowances and other Facilities provided to Chief Executive and other Executives / Managers
Rs. in Thousand
S.N. Particulars Chief Executive Other Executives/ Managers
1 Basic Salary 8,640 37,412
2 Allowances 6,677 56,003
3 Dashain Allowance 1,276 7,750
4 Provident Fund 864 3,245
Total Number 1 66
1 Prithivi B. Pandé Chairman
2 Prajanya Rajbhandari Director
3 Deepak Man Sherchan Director

4 Janardan D. Pant* Director
5 Ramesh Raj Bhattrai* Director

6 Bhuwaneshwar Prasad Shah Director
7 Mohan Madan Budathoki Professional Director
*Mr. Janardan D.Pant has resigned due to personal reasons due to which his position has been vacant since 2072/05/15.
*Mr. Ramesh Raj Bhattrai who had been representing Rastra Beema Company (RBC) has retired from his position due to which th
As per direction from Nepal Rastra Bank on 2067/04/10 barring Rastra Banijya Bank to appoint a director representing Group B. Hen
Directors:
1. Meeting Fee- Chairman Rs. 10,000 and Directors Rs.
8,000 per meeting
2. Fuel facility – 50 ltrs per month.
Besides Salary and Allowances, following facilities were provided to Chief Executive and Other Executives/ Managers:
• Water/ Electricity/Telephone Bills are reimbursed as
per actual to Chief Executive.
• Vehicle with driver and fuel is provided to Chief Executive. For other Executives and Managers, Vehicle loan/ facilities pro
• Bonus - as per Bonus Act & NRB Directives.
• Gratuity- as per Human Resource Policy of the Bank.
• Accident Insurance, Medical Insurance, Life Insurance
- as per Service Regulations and Human Resource
Policy of the Bank.
• Books & Periodicals, and 3 security guards are
provided to Chief Executive.
CORPORATE GOVERNANCE
CORPORATE GOVERNANCE
Board Structure and Members
During the year, there has been some major changes in the share ownership of the Bank. In compliance of NRB's directive barring
Internal Control Mechanism and various Committees
The bank has constituted Audit Committee, Risk Management Committee and Employee Management and Service facilities Com
5 of NRB Unified Directive No. 6. Besides this other committees can also be constituted for specific purpose and for specified time perio
The bank’s Internal Audit Department is an independent department which performs its functions under the direct supervision and control of
reviews the Bank’s financial condition, its internal control and risk management systems, statutory and regulatory compliance and
The Risk Management Committee oversees overall risk governance framework of the Bank. It ensures that proper risk management policy
The bank also has a separate Compliance Department which reviews and ensures compliance with both internal and external rules, regu
Name of the Committees Members
Audit Committee Mr. Mohan Madan Budhathoki (Chairman) Mr. Prajanaya Rajbhandary (Member)
Mr. Bir Bikram Rayamajhi (Member)
Dept. Head , Internal Audit (Member Secretary)
Employee Management and Service Facilities Committee Mr. Deepak M Sherchan (Chairman)
Mr. Prajanya Rajbhandari (Member) Chief Executive Officer (Member) Dept. Hea
Risk Management Committee Mr. Bhuwaneshwar Prasad Shah (Chairman) Chairman, Audit Committee (Memb
Dept. Head, Credit (Member) Dept. Head, Operations (Member)
Dept. Head, Risk Management (Member Secretary)
Risk Management 
Risk Management
Risk management includes risk identification and measurement and assessment, and its objective is to minimize negative effects that
The risk management system ensures that the Bank takes well calculated business risks while safeguarding the Bank’s capital, its financi
Operational Risk Management
Operational risk is the risk of loss resulting from inad- equate internal processes, people, and systems, or from external events. Operatio
corporate governance. Such breakdowns can lead to financial losses through error, fraud or failure to perform in a timely manner or cause th
Other aspects of operational risk include major failure of information technology systems or events such as major fires or other disasters. The
Credit Risk Management
Credit risk is the major risk that banks are exposed to during the normal course of lending and credit underwriting. Within Basel
risk exposure within acceptable parameters. The effective management of credit risk is a critical component of a comprehensive approach to
Our various branches are the business units of our bank. Each branch forwards business proposals to the head of Credit Division, Head
Guide (CPPG) provides various layers in the credit approval process. The CPPG has conferred specific dis- cretion ranging from the Ge
Important Risk Measurement measures of the bank to
address Credit Risk includes:
• Adoption of international standards via our in-house
Credit Policy and Procedures Guide.
• Formation of Credit Quality Control (CQC) unit for monitoring the quality of credit, both at the account level and portfolio level.
• Regular review of the credit portfolio by the senior management with periodic reporting to the Board of Directors.
• Separate independent audit and inspection of borrowers by internal auditors in addition to audit and inspection by statutory auditors.
• Strict adherence to the guidelines of the Central Bank on Loan Classification, Interest Recognition, Asset Classification, Single Obligor
• Establishing suitable exposure limits for borrowers and sectors and monitoring the limits on a regular basis.
• Risk mitigation steps with a special emphasis on collateral.
• Setting counter party limits based on their financial
strength.
• Training of lending and legal officers on documenta-
tion and professional valuations.
• Developing skills and expertise of lending officers to scientifically assess project viability and customer integrity.
• Educating the staff on provisions in the Banks and Financial Institutions Act and other relevant statutes and the regulatory guideline
• Seeking external legal opinion and advice.
• Identifying Early Warning Signals (EWS) and taking prompt action thereon.
• Constant post-sanction monitoring with special inde-
pendent team for verification of current assets.
Market Risk Management
Market risk is defined as the risk of losses in on-balance sheet and off-balance sheet positions arising from adverse movements in mark
a) The risks pertaining to interest rate related instruments.
b) Foreign exchange risk (including gold positions) throughout the Bank.
c) The risks pertaining to investment in equities and commodities.
Market risk is also the uncertainty in the future value of the Bank’s on-balance sheet and off-balance sheet financial items resulting
Important Risk Management measures of the Bank to
address Market Risk includes:
• A proactive Asset Liability Management Committee (ALCO) that meets on a weekly basis.
• Review of ALCO decisions by top management and Board of Directors.
• Conduction of gap analysis, timely re-pricing of prod-
ucts and hedging of exposures.
• Risk management via forward contracts, swaps and currency options.
• Daily monitoring of Credit to Deposit (CD) ratio.
• Maintaining the Liquid Assets Ratio with a contin-
gency buffer.
• Constant monitoring of dealer, broker, counterparty, transaction, product and currency exposure limits.
• Regular monitoring of competitor behavior and building competitor intelligence.
• Maintaining strong relationships with correspond- ent banks.
• Enhancing fee based income to reduce dependence on fund based income.
• Non-engagement in large scale transactions on a
speculative basis.
• Separation of front and back offices at the Treasury
Department
Foreign Exchange Risk Management
Foreign exchange rate risk arises from exchange rate movements which affect the profit of the Bank from its foreign exchange open posit
• Establish and implement sound and prudent foreign
exchange risk management policies.
• Develop and implement appropriate and effective foreign exchange risk management and control procedures.
Liquidity Risk Management
Liquidity is crucial to the ongoing viability of any financial institution. The capital positions can have a telling effect on an institution’s ability t
in a crisis. NIBL has adequate systems for measuring, monitoring and controlling liquidity risk. We evaluate the adequacy of capital given
Monitoring and Reporting
The Bank has established an adequate system for monitoring and reporting risk exposures and assessing how the Bank’s changing risk p
• Evaluate the level and trend of material risks and their effect on capital levels;
• Evaluate the sensitivity and reasonableness of key
assumptions used in the capital assessment meas-
urement system;
• Determine that the Bank holds sufficient capital against the various risks and is in compliance with established capital adequacy g
• Assess its future capital requirements based on the Bank’s reported risk profile and make necessary adjustments to the Bank’s strate
• NIBL conducts periodic reviews of its risk management process to ensure its integrity, accuracy and reasonableness. Key areas
• Appropriateness of the Bank’s capital assessment process given the nature, scope and complexity of its activities.
• Identification of large exposures and risk concentrations.
• Accuracy and completeness of data inputs into the Bank’s assessment process.
• Reasonableness and validity of scenarios used in the assessment process.
• Stress testing and analysis of assumptions and inputs.
Supervisory Review
Nepal Rastra Bank regularly reviews the process by which a bank assesses its capital adequacy, risk positions, resulting capital levels a
• On-site examinations or inspections.
• Off-site review.
• Discussions with bank management.
• Review of work done by external auditors (provided it is adequately focused on the necessary capital issues).
• Periodic reporting.
Corporate Social Responsibility (CSR)

Prime CSR 2015
NIBL has been contributing to various aid programs and events, encompassing art, heritage, education, health, security and sports sectors
The bank contributed NPR. 10 million to Prime Minis- ter's Disaster Relief Fund to support this philanthropic cause and distributed ga
NIBL's constant relief supports have consequently aided victims recover and gradually develop a sustainable environment. The Bank's fu
Office- bearers
ives / Managers
nce 2072/05/15.
m his position due to which the later has appointed Mr. Bir Bikram Rai Majhi as the new director representing RBC since 2071/06/11.
ector representing Group B. Hence, above list of directors does not include any director representing Group B. During the fiscal year Rastra Banijya Bank s
ecutives/ Managers:
s, Vehicle loan/ facilities provided as per Human Resource Policy of the Bank.
NCE
ance of NRB's directive barring banks to cross-hold shares, RBB sold its 15% (Group B) promoter shares in our bank through auction during the y
ent and Service facilities Committee in pursuant to Section

ose and for specified time period.
rect supervision and control of the Audit Committee and submits its report directly to the committee. The committee
and regulatory compliance and ethical conduct of business. After detailed discussion on the findings of the internal auditors, external auditors and
oper risk management policy and procedures are in place and effectively practiced at all levels within the Bank. It reviews the effectiveness of Mana
internal and external rules, regulation, policies and procedures.
ajanaya Rajbhandary (Member)

tive Officer (Member) Dept. Head, Accounts (Member) Dept. Head, HR (Member Secretary)
airman, Audit Committee (Member)
ions (Member)
ment 
minimize negative effects that risks can have on the financial result and capital of a bank. Risk management strategies include the transfer of risk,
ing the Bank’s capital, its financial resources and profitability. The Bank’s primary business activity is commercial banking whereby substantial risk com
or from external events. Operational risk itself is not a new con- cept, and banks have been addressing it in their internal controls and corporate governance
m in a timely manner or cause the interests of the Bank to be compromised in some other way, for example, by its dealers, lending officers or other staff
ajor fires or other disasters. The failure to properly manage operational risk can result in a mis-statement of an institution’s risk/return profile and expose th
it underwriting. Within Basel II, there are two approaches for credit risk measurement: the standardized approach and the internal ratings base
of a comprehensive approach to risk management and is essential to the long-term success of any banking organization. For most banks, loans are the la
e head of Credit Division, Head Office. The Credit Division critically analyzes the proposal from different perspec- tives in line with statutory, regulatory
dis- cretion ranging from the General Managers/CEO to the Management and the BOD.
ount level and portfolio level.

d of Directors.
c- tion by statutory auditors.
et Classification, Single Obligor Limit, Sectoral Expo- sure, etc.
utes and the regulatory guidelines of the Central Bank.
m adverse movements in market prices. The major constitu- ents of market risks are:
sheet financial items resulting from interest rates, foreign currency, equity and commodity risks. The Asset Liability Management Committee (ALCO
its foreign exchange open positions. Because of a bank’s exposure to foreign currency, foreign exchange risk management is a fundamental compone
fect on an institution’s ability to obtain liquidity, especially

e the adequacy of capital given their own liquidity profile and the liquidity of the markets in which they operate. We also make use of stress-testing
ow the Bank’s changing risk profile affects the need for capital. The Bank’s senior management and/or Board of Directors receives on a regular ba
established capital adequacy goals; and

d- justments to the Bank’s strategic plan accordingly.
and reasonableness. Key areas that are reviewed include:
i- tions, resulting capital levels and quality of capital held by NIBL. Supervisors also evaluate the degree to which NIBL has in place a sound internal pr
y (CSR)
alth, security and sports sectors to its range of CSR initiatives. However, while maintaining its support for development of nation's diverse sectors over t
nthropic cause and distributed galvanized corrugated sheets worth NPR. 11.6 million to aid earthquake victims re-construct their houses. The support w
ble environment. The Bank's future endeavors include extending financial support for restoration of National Heritage Sites that has been demolished by t
nce 2071/06/11.
year Rastra Banijya Bank sold it’s promoter shares to public as per direction of NRB.
ough auction during the year. Till date there are no representatives in board from the investors of those shares. Currently, the Bank’s Board of Dir
ditors, external auditors and NRB off sight inspection the committee recommends the Board for initiating the necessary corrective action. Currently,
the effectiveness of Management Information System and Internal Control Systems of the Bank. The Committee defines and reviews risk appetite o
include the transfer of risk, avoidance of risk, reduction of the negative effect of the risk and acceptance of the consequences of a particular risk. The des
ereby substantial risk comprises of credit risk. To a lesser extent, commercial banking activities also expose the Bank to market risk arising from re-
s and corporate governance structures. However, applying an explicit regulatory capital charge against operational risk is a relatively new and evolv
ding officers or other staff exceeding their authority or conducting business in an unethical or risky manner.
/return profile and expose the institution to significant losses. Gross income, used in the Basic In- dicator Approach, is only a proxy for the scale of opera- t
d the internal ratings based (IRB) approach. Due to various inherent constraints within the Nepali banking system, the standardized approach in its
most banks, loans are the largest and most obvious source of credit risk; however, other sources of credit risk exist throughout the activities of a bank,
ne with statutory, regulatory and internal guidelines. Thereafter, if the business proposal is found to be creditworthy, it is placed in the Credit Committe
agement Committee (ALCO) serves as the primary oversight and decision making body that provides strategic directions for the Bank’s management o
t is a fundamental component in market risk management of the Bank. It involves prudent management of foreign currency positions in order to contr
make use of stress-testing to determine their liquidity needs and the adequacy of capital. The objective of liquidity management is to ensure that the ba
ors receives on a regular basis, reports on the Bank’s risk profile and capital needs. These reports allow senior management to:
place a sound internal process to assess capital adequacy. The emphasis of the review is on the quality of the Bank’s risk management and controls. T
on's diverse sectors over the years, the Bank's prime CSR objective and priority this year has been to alleviate the desolation inflicted by the earthquak
their houses. The support was furtherance to donation of tents, and food and clothing at earthquake affected areas through NIBL Staff Welfare Fund on vo
at has been demolished by the earthquake
Currently, the Bank’s Board of Directors comprises of Mr. Prithvi Bahadur Pandé, Mr. Prajanya Rajbhandari, Mr. Deepak Man Sherchan, Mr. Bhuwaneshw
ry corrective action. Currently, Director Mr. Mohan Madan Budhathoki is the Chairman and Directors Mr. Bir Bikram Rayamajhi and Mr. Prajanya Rajb
defines and reviews risk appetite of the bank in relation to overall business risk with specific focus on credit risk, market risk, operation risk and liquidity
ences of a particular risk. The design of our risk management system depends on parameters such as size, capital structure, complexity of functions, tech-
ank to market risk arising from re-pricing, maturity and currency mismatches of assets and liabilities. These mismatches give rise to interest rate
sk is a relatively new and evolving idea. Basel II requires banks to hold capital against the risk of unexpected loss that could arise from the fa
ly a proxy for the scale of operational risk exposure of a bank and, in some cases, can underestimate the need for capital. NIBL has developed a framewo
, the standardized approach in its simplified form, Simplified Standardized Approach (SSA), has been prescribed in the initial phase. Credit risk is the prob
ughout the activities of a bank, including in the banking book and the trading book, and both on and off the balance sheet. Banks increasingly
placed in the Credit Committee. The Credit Committee is comprised of seasoned bankers who evaluate credit proposals. The Committee analyzes
s for the Bank’s management of market risk. The key elements in the market risk management framework are principles and policies, risk limits and risk
ency positions in order to control, within set parameters, the impact of changes in exchange rates on the financial position of the Bank. The freque
anagement is to ensure that the bank has sufficient funds to meet its contractual and regulatory financial obligations at all times. Liquidity risk is
s risk management and controls. The periodic review can involve any or a combination of:
solation inflicted by the earthquake that struck Nepal on April 25, 2015. NIBL has been proactive in initiating relief programs to support earthqua
gh NIBL Staff Welfare Fund on voluntary service from its employees. The bank also extended financial support to Himani Trust, and Federation of Nepalese
Man Sherchan, Mr. Bhuwaneshwar Prasad Shah, Mr. Bir Bikram Rayamajhi and Mr. Mohan Madan Budhathoki. Among these, Mr. Mohan Madan Budhath
Rayamajhi and Mr. Prajanya Rajbhandari are members of the Audit Committee. Bank’s Head of Internal Audit is the Member Secretary of the Commi
risk, operation risk and liquidity risk. RMC advises the Board on the overall risk tolerance levels of the bank. Director Mr. Bhuwaneshor Prasad
ure, complexity of functions, technical expertise, and quality of Management Information System (MIS) and is structured to address both banking as
tches give rise to interest rate risk, liquidity risk and foreign exchange risk. The Board of Directors of NIBL recognizes that a critical factor in the B
oss that could arise from the failure of operational systems. The most important types of operational risk involve breakdowns in internal controls and
al. NIBL has developed a framework for managing operational risk and evaluat- ing the adequacy of capital covering the Bank’s appetite and tolerance for o
nitial phase. Credit risk is the probability that a Bank’s borrower or counterparty will fail to meet its payment obligations in accordance with the terms of app
ance sheet. Banks increasingly face credit risk in various financial instruments other than loans, including acceptances, interbank transactions, t
oposals. The Committee analyzes in depth, financial as well as non-financial information regarding the borrower such as business history, mar- ke
es and policies, risk limits and risk measures. The prescribed approach for the computa- tion of capital charge for market risk is very simple and thus m
al position of the Bank. The frequency and direction of rate changes, the extent of the foreign currency exposure and the ability of coun- terpartie
s at all times. Liquidity risk is the probability of loss arising from a situation where (1) there will not be enough cash and/ or cash equivalents to meet the
f programs to support earthquake affected victims, advancing instantaneous aids following the earthquake. Throughout this hour of national tragedy whil
Trust, and Federation of Nepalese Chambers of Commerce and Industry (FNCCI) with an objective to further support earthquake affected victims.
hese, Mr. Mohan Madan Budhathoki is an independent Board member and Mr. Bhuwaneshwar Prasad Shah represents the public shareholders. Mr. P
Member Secretary of the Committee.

rector Mr. Bhuwaneshor Prasad Shah is the Chairman of the committee.
ed to address both banking as well as non-banking risks to efficiently maximize shareholder value.
es that a critical factor in the Bank’s continued growth, profitability and stability, lies in its effective risk management capabilities and risk-return t
akdowns in internal controls and
ank’s appetite and tolerance for operational risk, as specified through the policies for managing this risk, including the extent and manner in which opera
accordance with the terms of approval of the credit. This includes non-repayment of capital and/or interest within the agreed time frame, at the agreed
ances, interbank transactions, trade financing, foreign exchange transactions, and in the extension of commitments and guarantees and the settle
ch as business history, market situation, future prospects of the market, managerial capabilities and cash flow, and then declines or recommends app
ket risk is very simple and thus may not be directly aligned with the magnitude of risk. Likewise, the approach only incorporates risks arising out of advers
nd the ability of counterparties to honor their obligations to the Bank are significant factors in foreign exchange risk management. This risk is man
d/ or cash equivalents to meet the needs of depositors and borrowers, (2) sale of illiquid assets will yield less than their fair value, or (3) illiquid assets will n
this hour of national tragedy while the need for support was felt the most by the nation, NIBL has been benevolently extending continuous financial as we
arthquake affected victims.
s the public shareholders. Mr. Prithvi B. Pandé is the Chairman of the Bank’s Board.
ent capabilities and risk-return trade-off. In this respect, the Bank ensures its risk management capabilities and promotes proactive risk management
ent and manner in which operational risk is transferred outside the Bank. It also includes policies outlining the Bank’s approach of identifying, assess
agreed time frame, at the agreed rate of interest and in the agreed currency. The goal of credit risk management is to maximize a bank’s risk-adjuste
nts and guarantees and the settlement of transactions. NIBL has developed methodologies to assess the credit risk involved in exposures to individual bo
en declines or recommends approval of the designated credit authorities. To ensure proper and adequate risk analysis and timely customer service,
orates risks arising out of adverse movements in exchange rates while ignoring other forms of risks like interest rate risk and equity risks. NIBL has t
sk management. This risk is managed by setting pre-determined limits on open foreign positions, the monitoring of the open positions against these lim
air value, or (3) illiquid assets will not be sold at the desired time due to a lack of buyers. Liquidity risk relates to the ability of the bank to maintain sufficient l
ending continuous financial as well as non- financial supports towards rehabilitation and welfare of the earthquake victims.
motes proactive risk management in the Bank.
approach of identifying, assessing, monitoring, controlling and mitigating the risk.
o maximize a bank’s risk-adjusted rate of return by maintaining credit

ved in exposures to individual borrowers or counterparties as well as at the portfolio level. The credit review assessment of capital adequacy, at a
is and timely customer service, our Credit Policy and Procedures
risk and equity risks. NIBL has taken measures to address these various forms of risks and at the same time performs stress tests to evaluate th
pen positions against these limits and the setting and monitoring of our stop-loss mechanism. In order to manage the foreign exchange risk and p
of the bank to maintain sufficient liquid assets at a reasonable cost to meet its financial obligations as and when they fall due. Liquidity risk arises from situa
ment of capital adequacy, at a minimum, covers risk rating systems, portfolio analysis/ aggregation, large exposures and risk concentrations. In
orms stress tests to evaluate the adequacy of capital using internal models for the measurement of market risk.
he foreign exchange risk and protect the Bank’s financial position, the Bank follows the following procedures:
due. Liquidity risk arises from situations in which a party interested in trading an asset cannot do it because nobody in the market wants to trade that asset.
sures and risk concentrations. Internal risk ratings are an important tool in monitoring credit risk and supporting the identification and measurement of ri
market wants to trade that asset. Liquidity risk becomes particularly important to parties who are about to hold or currently hold an asset, since it affec
entification and measurement of risk from all credit exposures, and are integrated into our overall analysis of credit risk and capital adequacy. The ratings sy
rently hold an asset, since it affects their ability to trade. The Bank’s liquidity policy is to ensure that all contractual commitments can be met by readi
d capital adequacy. The ratings system provides detailed ratings for all assets, not only for prob- lem assets.
mmitments can be met by readily available sources of funding. In addition, liquid assets are maintained in relation to cash flows to provide furt
n to cash flows to provide further sources of funding in the event of a crisis. The Bank also has excellent access to financial markets to ensure the avai
ancial markets to ensure the availability of funds.
NIBL continues CSR characteristically
In another natural calamity relief initiative, the Bank contributed NPR. 1 million to Prime Minister’s Disaster Relief Fund with an objective to p
Moreover, the Bank has been actively contributing towards
development of education sector. This year, NIBL has provided financial aid to Samaanata Foundation, an initiative that aims to promote equ
economic backgrounds.
Mr. Jyoti P Pandey CEO
After completing his MBA in India, Mr. Pandey joined Nepal Indoseuz Bank in 1988 and became head of the International
CEO since July 2012.
Mr. Rajan Kumar Amatya Deputy General Manager
Mr. Amatya started his banking career with Nepal Bank Ltd., the first commercial bank of Nepal, rising to Asst. Branch Manager over a p
operation.
Mr. Bijendra Suwal Deputy General Manager
Mr. Suwal has experience in banking, card and financial technology software and hardware. He has a Masters degree in B
at Nepal Investment Bank.
Ms. Manju Basnet Assistant General Manager
Mrs. Manju Basnet has an EMBA degree from Kathmandu University School of Management. She has worked in different departm
as the Regional Branch Manager.
Mr. Rabin Sijapati Assistant General Manager
Mr. Rabin Sijapati completed Chartered Accountancy in 1998. He has been working in the banking industry for the past 14 year
Branch Manager.
Mr. Bikash Thapa Assistant General Manager
Mr. Bikash Thapa holds a Masters Degree in Corporate and Public Communication, from The United States of America. He has
Remittance in NIBL since 2006.
Jyoti Prakash Pandey Chief Executive Officer
Deputy General Managers
Rajan Kumar Amatya Retail Banking
Bijendra Suwal Chief Information Officer IT,
Card, Remittance, Product Development
Assistant General Managers
Manju Basnett Regional Branch Manager
Rabin Sijapati Regional Branch Manager
Bikash Thapa Head of Card & Remittance
Department Heads
Barun Shrestha Branch Co-ordination Cell
Deepak K Shrestha Trade Finance
Deepak Shrestha Legal
Bikash Thapa Cards & Remittance Sachin Tibrewal Accounts & Finance Sanjeev Karki Cash & Transfer Tul J
Sammit Bhattarai Credit Administration
Amir Bhattarai Internal Audit
Usha Pandey General Service Department Ujwol Manandhar Information Technology Sujata Joshi Risk Man
Regional Branch Managers
Manju Basnet Boudha, Dhumbarahi, Maharajgunj
Rabin Sijaipati Putalisadak, Tripureshwor,
Bhotahity
Ajay Kumar Kafle Pokhara, Damauli, Lakeside,
Walling
Ratna Kumar Limbu Birgunj, Jeetpur, Lalbandhi,
Barahathawa
Ramraj Upadhyay Bhairahawa, Krishnanagar, Butwal
Branch Managers
Purushottam Chalise Seepadole Branch
Ratna Kumar Limbu Birjgunj Branch
Prakash Raj Subedi Pulchowk Branch
Kumar Thapa Banepa Branch
Sajan Shah Jeetpur Branch
Nikita Maskey Newroad Branch
Kailash Raman Acharya Biratnagar Branch
Alok Mishra Butwal Branch
Ramraj Upadhyay Bhairahawa Branch
Dhiraj Thapa Pokhara Branch
Suraj Ram Bhandari Putalisadak Branch
Prakash Dhungana Narayangarh Branch
Chandra Shekhar Adhikari Janakpur Branch
Niranjan Kumar Kafle Nepalgunj Branch
Sanjit Pokharel Thamel Branch
Bhaskar N. Joshi Kalimati Branch
Sunil Sitaula Birtamod Branch
Tina Bajracharya Battisputali Branch
Rajendra Bahadur Singh Dhangadi Branch
Priyanka Gautam Gongabu Branch
Krishna Raj Joshi Surkhet Branch
Eka Raj Mahat Jumla Branch
Sapna R. Thapa Boudha Branch
Niraj Bhatta Hetauda Branch
Baburam Kandel Palpa Branch
Keshab Prasad Mainali Lukla Branch
Sujan Ranjit Naya Baneshwor Branch
Radhika Singh Dhumbarahi Branch
Sunil Kumar Shrestha Bhotahity Branch
Bishwas Karki Tulsipur Branch
Pramod Basnyet Tripureshwor Branch
Mahesh Thapa Damauli Branch
Rakesh Mally Krishnanagar Branch
Vijaya Kumar Shah Gaighat Branch
Suraj Jung Thapa Lazimpat Branch
Nabin Simkhada Parsa Branch
Ajar Bajracharya Maharajgunj Branch
Jeetendra Shrestha Lalbandi Branch
Shobha Shrestha Lagankhel Branch
Ujjal Shrestha Waling Branch
Shanta Shrestha Pokhara Branch (Lake Side)
Ramesh Raj Subedi Manthali Branch
Kundan Kausik Barahathawa Branch
Krishna Poudel Itahari Branch
Dharma Dhungana Patihani Branch
Jumla
Waling
Pokhara
Tulsipur
Krishna Nagar
Butwal
Bhairahwa
Palpa
Narayangadh
Kathmandu
Manthli Sipadol
Lukla
Persa
Damauli
Hetuda
Lagankhel
Pulchowk
Banepa
Branch Network Of NIBL

1. HEAD OFFICE
Durbar Marg, P.O. Box 3412
Tel: 4228229, 4242530 (DISA)
Fax: 977-1-4226349, 4228927 Swift: NIBLNPKT
2. SEEPADOLE BRANCH
Suryabinayak, Bhaktapur
Tel: 6615617, 6612832, 6610372
Fax: 6616617
3. BIRGUNJ BRANCH Adarshanagar, P.O. Box 101 Tel (051) 523327, 525277 Fax: (051) 525297, 534271
4. PULCHOWK BRANCH
Pulchowk, Lalitpur
Tel: 5010188, 5010042
Fax: 5010142
5. BANEPA BRANCH
Banepa, Kavre
Tel: (011) 664315,662401
Fax: (011) 662402
6. JEETPUR BRANCH
Jeetpur, Bara
Tel: (053) 412201, 412197
Fax: (053) 412077
7. NEWROAD BRANCH
Basantapur, Kathmandu
Tel: 4227032, 4227688, 4230374,
4242858
Fax: 4227050, 4227655

8. BIRATNAGAR BRANCH
Golchha Chowk, Biratnagar
Tel: (021) 534523, 534524, 534525
Fax: (021) 534526
9. BUTWAL BRANCH
Traffic Chowk, Butwal
Tel: (071) 549991, 549992, 549993
Fax: (071) 549888
10. BHAIRAHAWA BRANCH
Maitri Path, Bhairahawa
Tel: (071) 526992, 526993
Fax: (071) 526990
11. POKHARA BRANCH Chiple Dunga,Pokhara Tel: (061) 538919, 539276 Fax: (061) 538920
12. PUTALISADAK BRANCH
Putalisadak, Kathmandu
Tel: 4445302, 4445303
Fax: 4421455
13. NARAYANGARH BRANCH
Pulchowk, Narayangarh
Tel: (056) 571921,571922,
571923, 571924
Fax: (056) 571925
14. JANAKPUR BRANCH
Mills Area, Janakpur
Tel: (041) 527331
Fax: (041) 527332
15. NEPALGUNJ BRANCH
Dhamboji, Nepalgunj
Tel: (081) 525978,525682
Fax: (081) 521664
16. THAMEL BRANCH Chaksibari, Thamel Tel: 4218431,4218432, 4218485,4218486
Fax: 4218434
17. KALIMATI BRANCH Kalimati Chowk, Kalimati Tel: 4672493,4672494 4672495,4672548
Fax: 4272612
18. BIRTAMOD BRANCH Mukti Chowk, Hanuman Central Building, Birtamod
Tel:(023) 543810,543811
Fax: (023)543815
19. BATTISPUTALI BRANCH
Battisputali, Kathmandu
Tel: 4471690,4471790
Fax: 4470202
20. DHANGADI BRANCH Main Road, Dhangadi Tel:(091) 523620,523706 Fax: (091) 524090
21. GONGABU BRANCH Gongabu Chowk, Kathmandu Tel: 4365318,4365077
Fax: 4365302
22. SURKHET BRANCH
Neta Chowk, Surkhet
Tel: (083) 524330, 524331
Fax: 524332
23. JUMLA BRANCH Khalang Bazaar, Jumla Tel: (087) 520132
Fax: 520304
24. BOUDHA BRANCH Boudha, Kathmandu Tel: 4915121,4915722 Fax: 4915123
25. HETAUDA BRANCH
TCN Road, Hetauda
Tel: (057) 526001, 525946
Fax: (057) 526005
26. PALPA BRANCH
Tansen,Palpa
Tel: (075) 520832,520833 Fax:(075)-520891
27. LUKLA BRANCH Chaurikharka, Lukla Tel:(038) 550120 Fax: (038) 550220
28. NAYA BANESHWOR BRANCH Naya Baneshwor, Kathmandu Tel:4785529,4782289,4782520 Fax: 4785537
29. DHUMBARAHI BRANCH Pipalbot Chowk, Kathmandu Tel: 4009006, 4009007
Fax: 4009009
30. BHOTAHITI BRANCH
Bhotahiti, Kathmandu
Tel: 4230797, 4230788
Fax: 4230771
31. TULSIPUR BRANCH Tulsipur, Dang Tel:(082)521613,521614 Fax: 521615
32. TRIPURESHWOR BRANCH
Tripureshwor, Kathmandu
Tel: 4259780, 4259980, 4260105
Fax: 4260324
33. DAMAULI BRANCH Safasadak, Damouli Tel:(065) 562500,562600 Fax: (065) 562700
34. KRISHNANAGAR BRANCH
Krishnanagar, Kapilvastu
Tel: (076) 520764, 520765, 520766
Fax: (076) 520354
35. GAIGHAT BRANCH
Gaighat, Udayapur
Tel: (035) 420952, 420953
Fax: (035) 420954
36. LAZIMPAT BRANCH
Lazimpat, Kathmandu
Tel:4005058, 4005069, 4005068 Fax:4005065
37. PARSA BRANCH
Parsa, Chitwan
Tel: (056) 583623, 583624
Fax: (056) 583625
38. MAHARAJGUNJ BRANCH Maharajgunj, Kathmandu Tel:4016151, 4016152 Fax:4016155
39. LALBANDHI BRANCH
Lalbandhi, Sarlahi
Tel: (046) 501583, 501584
Fax:(046) 501585
40. LAGANKHEL BRANCH
Lagankhel, Lalitpur
Tel: 5552980,5522557
Fax: 5552990
41. WALING BRANCH
Waling, Syangja
Tel: (063) 440573, 440574
Fax: (063) 440575
42. POKHARA BRANCH (Lake Side)
Lake Side, Pokhara -6
Tel: (061)466872, 466873, 466874,
Fax: (061)466875
43. MANTHALI BRANCH
Manthali, Ramechap
Tel: (048)540438
Fax: (048)540004
44. BARAHATHAWA BRANCH
Barahathawa, Sarlahi
Tel: (046)540295, 540296
Fax: (046)540299
45. ITAHARI BRANCH
Itahari, Sunsari
Tel: (025)588241,588242
Fax: (025)588244
46. PATIHANI BRANCH
Patihani, Chitwan
Tel: (056)411080
Fax: (056)411081
ATM Locations
• DurbargMarg (Head Office, Three
ATMs available)
• Pulchowk (NIBL,Pulchowk Branch,Two ATMs available)
• Thamel (At Best Shopping Centre)
• Bhatbhateni (At Bhatbhateni Super Market)
• Putalisadak (NIBL, Putalisadak Branch, Four ATMs available)
• Lakeside, Pokhara ( At Boomerang Restaurant)
• Chipledhunga, Pokhara (NIBL, Pokhara Branch)
• Birgunj (NIBL,Birgunj Branch, Two ATMs available)
• Bhaktapur (At Bhaktapur Durbar Square Main Gate)
• Thamel (NIBL,Thamel Branch)
• Boudha (At Bhat Bhateni Supermarket Chuchepati)
• Narayangardh (NIBL, Narayangardh Branch,Two ATMs available)
• Kalimati (NIBL, Kalimati Branch, Two ATMs available)
• Nepalgunj (NIBL, Nepalgunj Branch)
• Butwal (NIBL, Butwal Branch)
• Newroad (ATM Lounge)
• Bhairahawa (NIBL, Bhairahawa Branch)
• Biratnagar (NIBL, Biratnagar Branch)
• Banepa (NIBL, Banepa Branch)
• Battisputali (NIBL, Battisputali Branch, Two ATMs available)
• Maharajgunj (At Karnali Hotel,Besides Hot Breads)
• Lazimpat (NIBL Lazimpat Branch, Two ATMs available)
• Seepadole (NIBL, Seepadole Branch)
• Gongabu (NIBL, Gongabu Branch, Two ATMs available)
• Newroad (At Basantapur, Two ATMs available)
• Maitidevi (At Maitidevi Chowk)
• Janakpur (At Nepal Rastra Bank,Janakpur)
• Dhangadi (NIBL, Dhangadi Branch)
• Surkhet (NIBL,Surkhet Branch)
• Birtamod (NIBL,Birtamod Branch)
• Dhumbarahi (NIBL,Dhumbarahi Branch)
• SukulDhoka (At Bhaktapur)
• Chhetrapati (At Chhetrapati free clinic)
• Bhotahity (NIBL,Bhotahity Branch)
• New Baneshwor (NIBL,New Baneshwor Branch, Two ATMs available)
• Boudha-Pipalbot (NIBL, Boudha Branch)
• Hetauda (NIBL, Hetauda)
• Kapan, Faika (At Shambala Village Resort )
• Tripureshwor (NIBL, Tripureshwor Branch)
• Tulsipur (NIBL, Tulsipur Branch)
• Krishnanagar (NIBL, Krishnanagar Branch)
• Gaighat (NIBL,Gaighat Branch)
• Damouli (NIBL, Damauli Branch)
• Palpa (NIBL, Palpa Branch)
• Lalbandhi (NIBL, LalbandhiBranch)
• Parsa (NIBL, Parsa Branch)
• Lagankhel (NIBL, Lagankhel Branch, Two ATMs available)
• Waling (NIBL, Waling Branch)
• Narayangarh (At International Society of Medical Sciences (ISME), Medical College, Bharatpur)
• Kalanki Chowk
• Jain Bhawan, Kamalpokhari
• Kathmandu University, Dhullikhel, Kavre
• Nepal Police Training Academy, Maharajgunj
• Nepal Army, Bhadrakali Army Petrol Pump
• Vayodha Hospital, Balkhu
• Manthali, Ramechap (NIBL, Manthali Branch)
• Thimi (Shankhadhar Shakhwa) Chowk
• Narayangadh, Police Training Center
• Metro Police, Ratnapark, Kathmandu
• Nepal Tourism Board, Pradarshani Marg, Kathmandu
• CT Mall, Koteshwor, Kathmandu
• Gaushala, (Opposite of Police station)
• Jeetpur (NIBL, Jeetpur Branch, Bara)
• Nepal Army Club, Sundhara
• Itahari (NIBL, Itahari Branch)
• Chhauni, (Near Nepal Army Ranger Battalion)
• Gongabu, (Nepal Police - Mahalaxmi Petrol Pump)
Global Network
Westpac Banking Corporation, Sydney Royal Bank of Canada, Toronto Danske Bank, Copenhagen
Commerz bank, Frankfurt A.M. Credit Agricole, Paris
SNS Bank, Amsterdam
Standard Chartered Bank, Frankfurt Bayerische Hypo-Und Vereins, Hamburg Standard Chartered Bank, London
Habib Allied International Bank Plc, London Habib American Bank, New York
Standard Chartered Bank,Kolkatta
HDFC, Mumbai ICICI Bank, Mumbai

Standard Chartered Bank, Mumbai Bank of Tokyo, Mitsubishi Standard Chartered Bank, Tokyo
Svenska Handelsbanken, Stockholm, Sweden
United Overseas Bank Ltd. Singapore Bank Of China, Beijing Commerzbank, Frankfurt
Standard Chartered Bank, New York
Mashreque Bank, New York
Prime Minister’s Disaster Relief Fund with an objective to provide relief assistance to Dar- chula River flood victims throughout the country.
amaanata Foundation, an initiative that aims to promote equality and empowerment by providing quality higher education to students from poor socio
in 1988 and became head of the International Banking Department. In 1992, he joined the Himalayan Bank and worked as the Head of M
cial bank of Nepal, rising to Asst. Branch Manager over a period of nine years plus. Having completed a Degree of Management, he joined the then Nepa
gy software and hardware. He has a Masters degree in Business Administration (Executive). He started his banking career by joining Nabil Bank in
of Management. She has worked in different departments of the Bank having been with the Bank since its inception. She was the head of Tr
been working in the banking industry for the past 14 years. He has worked in Nepal Rastra Bank (Central Bank of Nepal) as a Deputy Director for
unication, from The United States of America. He has been working in the banking industry for the past 13 years. He has worked in Himalay
& Finance Sanjeev Karki Cash & Transfer Tul Jung Pandey Reconciliation Prabir SJB Rana Human Resource
nformation Technology Sujata Joshi Risk Management Department Bandana Thapa Compliance Department
82520 Fax: 4785537
to Danske Bank, Copenhagen
Hamburg Standard Chartered Bank, London

rd Chartered Bank, Tokyo
erzbank, Frankfurt
ghout the country.
on to students from poor socio-
ank and worked as the Head of Marketing, Branch Manager and Head of the Credit Department over a period of nine years. In 2002, Mr. Pandey joined Ne
ement, he joined the then Nepal Indoseuz Bank Ltd. in February 1986 and has worked as the Head of Cash and Transfer Dept. and International Tra
ng career by joining Nabil Bank in 1992 and headed the Systems Department for four years. He joined the then Nepal Indoseuz Bank in 2000 as an IT M
tion. She was the head of Trade Finance Department for five years and served as Branch Manager in New Road Branch for five years. She is
Nepal) as a Deputy Director for over six years. Mr. Sijapati joined Nepal Investment Bank as Department Head of Internal Audit Departm
ars. He has worked in Himalayan Bank for 6 years and working as Head of Card and
Human Resource
rs. In 2002, Mr. Pandey joined Nepal Investment Bank as Assistant General Manager and now he is serving the Bank as
sfer Dept. and International Trade Finance Dept. and as Branch Manager of New Road and Putalisadak branches. Currently, he is he
Indoseuz Bank in 2000 as an IT Manager. Now, he is working as Deputy General Manager looking after Information Technology, Card Remittance a
Branch for five years. She is currently serving
Head of Internal Audit Department. He is currently serving as the Regional

k branches. Currently, he is head of
Technology, Card Remittance and Product Development Departments
Balance Sheet
As at Ashad end 2072 (July 16, 2015)
Capital & Liabilities Schedule Current Year Rs.

1. Share Capital 1 6,345,700,655
2. Reserve & Fund 2 3,461,251,924
3. Debentures and Bonds 3 1,550,000,000
4. Borrowings 4 263,116,232
5. Deposits Liabilities 5 90,631,486,765
6. Bills Payable 6 214,898
7. Proposed Dividend 82,868,272
8. Income Tax Liabilities -
9. Other Liabilities 7 2,010,797,667
Total Liabilities - 104,345,436,413
Assets Schedule Current Year Rs.

1. Cash Balance 8 2,660,938,215
2. Balance with NRB 9 8,992,838,688
3. Balance with Banks/ Financial Institution 10 2,661,271,363
4. Money at Call and Short Notice 11 -
5. Investments 12 21,462,587,744
6. Loan, Advances & Bills Purchased 13 66,219,232,015
7. Fixed Assets 14 1,054,131,517
8. Non-Banking Assets 15 -
9. Other Assets 16 1,294,436,871
Total Assets - 104,345,436,413
Contingent Liabilities Directors’ Declaration Schedule 17

Statement of Capital Fund Schedule 29
Statement of Risk Weighted Assets Principal Schedule 30
Indicators Schedule 30 (A)
Significant Accounting Policies Schedule 31
Schedule 32
Notes to Accounts Schedule 33

Schedules 1 to 17 form an integral part of the Balance Sheet
As per our report of even date
Prithivi Bahadur Pande
Chairman
Prajanaya Rajbhandary
Director
Prabhu Ram Bhandary, FCA
For, P. R. Bhandary & Company Chartered Accountants Auditor
Deepak Man Sherchan
Director
Bhuwaneshwar Prasad Shah
Director
Jyoti P. Pandey
Chief Executive Officer
Bir Bikram Rayamajhi
Director
Mohan Madan Budathoki
Director
Sachin Tibrewal
Head - Accounts & Finance
Previous Year Rs.
4,768,713,625
3,156,764,971
1,050,000,000
424,339,748
73,831,375,915
266,480
1,036,676,875
-
1,905,789,960
86,173,927,574
Previous Year Rs.

2,170,768,042
12,652,937,075
1,921,006,105
232,375,000
15,383,529,110
52,019,765,103
1,058,313,402
-
735,233,737
86,173,927,574
Profit & Loss Account
for the period July 17, 2014 to July 16, 2015
(Shrawan 1 2071 to Ashad 31 2072)
Particulars Schedule Current Year Rs.

1. Interest Income 18 5,786,160,480
2. Interest Expenses 19 (2,807,361,350)
Net Interest Income 2,978,799,130
3. Commission and Discount 20 497,300,311
4. Other Operating Income 21 237,468,623
5. Exchange Profit 22 458,418,472
Total Operating Income 4,171,986,536
6. Staff Expenses 23 (480,138,893)
7. Other Operating Expenses 24 (572,107,643)
8. Exchange Loss 22 -
Operating Profit Before Provision for Possible Loss 3,119,740,000
9. Provision for Possible Losses 25 (573,891,909)
Operating Profit 2,545,848,091
10. Non-operating Income/ Loss 26 15,591,986
11. Loss Provision Written Back 27 537,704,153
Profit from Regular Operations 3,099,144,230
12. Profit/ Loss from extra-ordinary activities 28 -
Net Profit after considering all activities 3,099,144,230
13. Provision for Staff Bonus (281,740,385)
14. Income Tax Provision (855,551,465)
- Current Year (845,849,310)
- Upto Previous Year (10,493,007)
- Deferred Tax Income / (Expense) 790,852
Net Profit/ Loss - 1,961,852,380
Schedules 18 to 28 form an integral part of this Profit & Loss Account.
Chairman
Director
Deepak Man Sherchan
Director
Director
Jyoti P. Pandey
Director
Director
Sachin Tibrewal
Previous Year Rs.
5,816,279,068
(2,820,475,438)
2,995,803,630
478,608,331
211,346,229
460,226,769
4,145,984,959
(437,765,593)
(539,330,825)
-
3,168,888,541
(277,278,257)
2,891,610,284
11,841,446
139,148,316
3,042,600,046
527,273
3,043,127,319
(276,647,938)
(826,867,037)
(829,327,968)
(295,494)
2,756,425
1,939,612,344
Profit & Loss Appropriation Account
Particulars Current Year Rs.
Income
1. Accumulated Profit up to last year 181,384,480
2. This year's profit 1,961,852,380
3. Exchange Fluctuation Reserve -
4. Transfer from Capital Adjustment Fund 250,000,000
Total 2,393,236,860
Expenses
1. Accumulated loss up to last year -
2. This year's Loss -
3. General Reserve Fund (392,370,476)
4. Contingent Reserve -
5. Institutional Development Fund -
6. Dividend Equilization Fund -
7. Employees Related Funds -
8. Proposed Dividend (82,868,272)
9. Proposed Issue of Bonus Shares (1,574,497,155)
10. Special Reserve Fund -
11. Exchange Fluctuation Reserve (9,793,442)
12. Capital Adjustment Fund -
13.Debenture Redemption Fund (254,166,714)
14. Investment Adjustment Reserve (29,497,129)
Total (2,343,193,188)
Accumulated Profit/ Loss 50,043,672
Chairman
Director
Deepak Man Sherchan
Director
Director
Jyoti P. Pandey
Director
Director
Sachin Tibrewal
Previous Year Rs.
76,798,393
1,939,612,344
-
500,000,000
2,516,410,737
-
-
(387,922,469)
-
-
-
-
(1,036,676,875)
(622,006,125)
-
(4,725,613)
-
(182,735,286)
(100,959,889)
(2,335,026,257)
181,384,480
Cash Flow Statement

(A) Cash Flow from Operating Activities (2,076,319,586)
1. Cash Receipts 6,752,615,388
1.1 Interest Income 5,608,041,253
1.2 Commission and Discount Income 445,591,383
1.3 Exchange Gain 458,418,472
1.4 Recovery of Loan Written Off -
1.5 Other Income 240,564,280
2. Cash Payments (4,615,469,837)
2.1 Interest Expenses (2,811,214,277)
2.2 Staff Expenses (480,138,893)
2.3 Office Overhead Expenses (431,009,885)
2.4 Income Tax Paid (893,106,782)
2.5 Other Expenses -
Cash Flow Before Changes in Working Capital 2,137,145,551
(Increase)/Decrease of Current Assets (20,685,947,050)
1. (Increase)/Decrease in Money at Call and Short Notice 232,375,000
2. (Increase)/Decrease in Short-term Investment (6,331,184,926)
3. (Increase)/Decrease in Loan and Bills Purchase (14,086,384,770)
4. (Increase)/Decrease in Other Assets (500,752,354)
Increase/(Decrease) of Current Liabilities 16,472,481,913
1.Increase/(Decrease) in Deposits 16,800,110,850
2.Increase/(Decrease) in Certificate of deposits -
3.Increase/(Decrease) in Short-Term Borrowings (68,506,516)
4.Increase/(Decrease) in Other Liabilities (259,122,421)
(b) Cash Flow from Investing Activities 134,869,762
1.(Increase)/Decrease in Long-term Investment 252,126,292
2.(Increase)/Decrease in Fixed Assets/ NBA (129,752,859)
3.Interest from Long-term Investment -
4.Dividend Income 12,496,329
(c) Cash Flow from Financial Activities (488,213,132)
1.Increase/(Decrease) in Long-term Borrowings ( Bond, Debentures etc.) 500,000,000
2. Increase/(Decrease) in Share Capital/share premium 2,489,875
3.Increase/(Decrease) in Other Liabilities -
4.Increase/(Decrease) in Refinance/facilities received from NRB (92,717,000)
5. Dividend Expenses (897,986,007)
(d) Income/Loss from change in exchange rate in cash and bank -
balances
(e) Current Year's Cash Flow from All Activities (2,429,662,956)
(f) Opening Balance of Cash and Bank Balances 16,744,711,222

(g) Closing Balance of Cash and Bank Balances 14,315,048,266
Chairman
Director
Deepak Man Sherchan
Director
Director
Jyoti P. Pandey
Director
Director
Sachin Tibrewal
Previous Year Rs.
3,691,616,937
7,067,765,593
5,868,716,097
526,667,330
460,226,769
527,273
211,628,124
(4,406,127,144)
(2,809,773,845)
(437,765,593)
(391,253,083)
(767,334,623)
-
2,661,638,449
(10,171,578,072)
35,025,000
(4,310,700,739)
(5,733,372,023)
(162,530,310)
11,201,556,560
11,402,530,543
-
21,056,748
(222,030,731)
253,054,672
362,439,800
(120,944,679)
-
11,559,551
(452,048,196)
250,000,000
1,899,030
-
92,717,000
(796,664,226)
-
3,492,623,413
13,252,087,809
16,744,711,222
Statement of Changes in Equity
F.Y. 2071/72 (FY 2014/15)
Particulars Share Capital Accumulated General Capital Share
Profit/(Loss) Reserve Reserve Premium
Opening Balance (as at 16 July 2014) 4,768,713,625 181,384,480 2,303,281,514 - 11,849,422

Prior Period adjustement - - - - -
Surplus on Revaluation of properties - - - - -
Deficit on Revaluation of Investment - - - - -
Currency translation differences - - - - -
" Net Gains & Losses not recognised in the income - - - - -
statement "
Net profit for the period - 1,961,852,380 - - -
Transfer to General Reserve - (392,370,476) 392,370,476 - -

Declaration of Dividend (proposed) - (82,868,272) - - -
Issue of Share Capital 2,489,875 - - - -
Issue of Bonus Shares (Proposed) 1,574,497,155 (1,574,497,155)
Deficit on revaluation of currencies - - - - -
Surplus on Revaluation of Investment - - - - -

Transfer to Exchange Fluctuation Fund - (9,793,442) - - -
Transfer from Debenture Redemption Fund - - - - -
Transfer to Debenture Redemption Fund - (254,166,714) - - -
Transfer to Capital Adjustment Fund - - - - -
Transfer from Capital Adjustment Fund 250,000,000 - - -
Investment Adjustment Reserve - (29,497,129) - - -
Closing Balance (as at 16 July 2014) 6,345,700,655 50,043,672 2,695,651,990 - 11,849,422
Chairman
Deepak Man Sherchan
Director
Director
Director
Prabhu Ram Bhandary, FCA For, P. R. Bhandary & Company Chartered Accountants Auditor
Jyoti P. Pandey
Director
Director
Sachin Tibrewal
Exchange Other Debenture Capital Investment Total
Fluctuation Reserves Redemption Adjustment Adjustment
Fund Fund Fund Reserve
60,219,356 31,500 460,119,000 - 139,879,699 7,925,478,596
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - 1,961,852,380
- - - - - -
- - - - - (82,868,272)
- - - - - 2,489,875
- -
- - - - - -
- - - - - -
9,793,442 - - - - -
- - (250,000,000) 250,000,000 - -
- - 254,166,714 - - -
- - - - - -
- - - (250,000,000) - -
- - - - 29,497,129 -
70,012,798 31,500 464,285,714 - 169,376,828 9,806,952,579
SHARE CAPITAL & OWNERSHIP
Schedule 1
(As at July 16, 2015)
Particulars Current Year Rs. Previous Year Rs.

1. Share Capital
1.1 Authorized Capital
A) 50,000,000 Ordinary Shares of Rs. 100 each 5,000,000,000 5,000,000,000
1.2 Issued Capital
(of which 13,562,684 Right Share & 33,549,351 bonus shares)
1.3 Paid Up Capital
(of which 13,562,684 Right Share & 33,549,351 bonus shares)
1.4 Proposed Bonus Shares 1,574,497,155 622,006,125
1.5 Calls in Advance - -
Total 6,345,700,655 4,768,713,625
SHARE OWNERSHIP
( As at July 16, 2015)
Particulars Percent Current Year Rs. Previous Year Rs. Percent

A. Local Ownership 100.00% 4,771,203,500 4,146,707,500 100.00%
1.1 Nepal Government 0.00% - -
1.2 "Ka" Class Liscensed Institutions 0.00% - 622,006,600 15.00%
1.3 Citizen Investment Trust 3.27% 155,917,500 - 0.00%
1.4 Other Licensed Institutions (Insurance Companies) 2.96% 141,333,900 - 0.00%
1.5 Mutual Funds 0.22% 10,632,800
1.6 Group of Companies 1.94% 92,528,800
1.6 Rastriya Beema Sansthan 1.40% 67,000,000 622,006,600 15.00%
1.7 Rastriya Beema Company Ltd. 15.00% 715,680,500 - 0.00%
1.8 Organized Institutions 48.87% 2,331,676,300 2,026,485,400 48.87%
1.9 Others (Promoter - Individual) 6.33% 302,193,000 46,868,000 1.14%
1.10 Public 20.00% 954,240,700 829,340,900 20.00%
B. Foreign Ownership - -
Total 100.00% 4,771,203,500 4,146,707,500 100.00%
Details of Shareholders holding 0.5 percent or above shares are mentioned below:
Group A % Amount in (000) Group B
Sophia Investment Pvt.Ltd. 7.42% 354,113 Life Insurance Corporation (Nepal) Ltd. 1.40%
Mercantile Investment Pvt.Ltd. 0.63% 30,193 Rastriya Beema Sansthan 1.40%
S.R.Investment Pvt.Ltd 0.55% 26,093 Citizen Investment Trust 3.27%
Apollp Investment Pvt.Ltd. 0.78% 37,282 National Life Insurance Co.Ltd. 0.90%
Lotus Investment Pvt.Ltd. 1.45% 69,096
S.Shakya Investment Pvt.Ltd. 0.55% 26,093 Insurance Company (Group C)
Shakya Investment Pvt.Ltd. 0.67% 32,198 Rastriya Beema Company Ltd. 15%
Singhe Carpets Pvt.Ltd. 0.80% 38,265
Kamal Investment Pvt.Ltd. 1.56% 74,551
Surya Infosys Pvt.Ltd. 1.64% 78,265
Pancha Kanya Investment Pvt.Ltd. 0.78% 37,275
Shrestha Brothers Investment Pvt.Ltd. 0.78% 37,275
P.Shanghai Investment Pvt.Ltd. 0.78% 37,275
R.Shanghai Investment Pvt.Ltd. 0.78% 37,275
Prestine Investment Pvt.Ltd. 1.64% 78,265
Maha Laxmi Investment Pvt.Ltd. 8.83% 421,208
K.U.P. Investment Pvt.Ltd. 7.81% 372,749
Annapurna Investment pvt.Ltd 1.64% 78,265
Chhaya Investment Pvt.Ltd. 8.20% 391,390
Noble Investment P.Ltd. 1.56% 74,551
Tribhuvan Dhar Tuladhar 0.94% 44,727
Previous Year Rs.
5,000,000,000
4,146,707,500
4,146,707,500
622,006,125
-
4,768,713,625
Percent
100.00%
15.00%
0.00%
0.00%
15.00%
0.00%
48.87%
1.14%
20.00%
100.00%
67,020
67,000
155,918
43,125
7,15,681
RESERVE FUNDS
(As at July 16, 2015)
Schedule 2
1. General Reserve Fund 2,695,651,990 2,303,281,514
2. Capital Reserve Fund (Share Premium) 11,849,422 11,849,422
3. Debenture Redemption Reserve 464,285,714 460,119,000
4. Capital Adjustment Fund - -
5. Other Reserve Fund 169,408,328 139,911,199
a. Contingent Reserve - -
b. Institution Development Fund - -
c. Dividend Equalization Fund - -
d. Special Reserve Fund 31,500 31,500
e. Assets Revaluation Reserve - -
f. Deferred Tax Reserve - -
g.Other Reserves - -
h. Investment Adjustment Reserve 169,376,828 139,879,699
6. Accumulated Profit/ Loss 50,043,672 181,384,480
7. Exchange Fluctuation Reserve 70,012,798 60,219,356
Total 3,461,251,924 3,156,764,971
DEBENTURES AND BONDS

(As at July 16, 2015)
Schedule 3
8 % Debentures of Rs. 1000 each issued on 09.07.2008 (25.03.2065) and maturing on - 250,000,000
08.07.2015 (24.03 .2072)
Outstanding Balance of Redemption Reserve Rs. NIL
12 % Debentures of Rs. 1000 each issued on 13.07.2011 (29.03.2068) and maturing on 300,000,000 300,000,000
12.07.2018 (28.03. 2075)
Outstanding Balance of Redemption Reserve Rs. 214,285,715
8 % Debentures of Rs. 1000 each issued on 21.07.2013 (06.04.2070) and maturing on 500,000,000 500,000,000
20.07.2020 (05.04. 2077)
Outstanding Balance of Redemption Reserve Rs.142,857,142
8 % Debentures of Rs. 1000 each issued on 27.07.2014 (11.04.2071) and maturing on 750,000,000 -
26.07.2021 (10.04. 2078)
Outstanding Balance of Redemption Reserve Rs.107,142,857
Total 1,550,000,000 1,050,000,000
BORROWINGS
(As at July 16, 2015)
Schedule 4
A. Local
1. Nepal Government -
2. Nepal Rastra Bank (Refinance) -

3. Repo Obligation -
4. Inter Bank and Financial Institutions 263,116,232
5. Other Financial Institutions -
6. Others -
Total 263,116,232
B. Foreign -
1. Banks -
2. Others -
Total -
Total (A+B) 263,116,232
Previous Year Rs.
2,303,281,514
11,849,422
460,119,000
-
139,911,199
-
-
-
31,500
-
-
-
139,879,699
181,384,480
60,219,356
3,156,764,971
Schedule 3
Previous Year Rs.
250,000,000
300,000,000
500,000,000
1,050,000,000
Previous Year Rs.
92,717,000
-
331,622,748
-
-
424,339,748
-
-
-
-
424,339,748
Deposits
(As at July 16, 2015)

1. Non-Interest bearing accounts
A. Current Deposits 11,742,719,309
1. Local Currency 7,400,801,098

1.1 Nepal Government 914,608,829
1.2 "Ka" Class Licensed Institutions 372,768,626
1.3 Other Licensed Institutions 369,822,578
1.4 Other Organized Institutions 4,950,379,750
1.5 Individuals 268,898,304
1.6 Others 524,323,011
2. Foreign Currency 4,341,918,211
2.1 Nepal Government -
2.2 "Ka" Class Licensed Institutions 33,642,614
2.3 Other Licensed Institutions 3,462,220,663
2.4 Other Organized Institutions 540,772,512
2.6 Others 134,806,957
B. Margin Deposits 1,217,345,070
1. Employess Guarantee -
2. Guarantee Margin 343,942,816
3. Letters of Credit Margin 873,402,254
C. Others -
1. Local Currency -
1.1 Financial Institutions -
1.2 Other Organized Institutions -
1.3 Individuals -
2. Foreign Currency -
2.1 Financial Institutions -
2.2 Other Organized Institutions -
2.3 Individuals -
Total Non-Interest Bearing Accounts 12,960,064,379
contd.
Schedule 5
Previous Year Rs.
10,323,906,071
7,015,948,355
679,231,514
296,300,256
607,956,012
4,807,524,935
171,522,352
453,413,286
3,307,957,716
-
46,470,522
2,822,699,491
189,253,118
129,949,286
119,585,298
1,133,750,055
-
286,914,200
846,835,854
-
-
-
-
-
-
-
-
-
11,457,656,125
Deposits
(As at July 16, 2015)

2. Interest bearing accounts
A. Savings Deposits 31,733,316,784

1.1 Organized Institutions -
1.2 Individuals 30,851,481,156
1.3 Others -
2. Foreign Currency 881,835,628
2.3 Others -
B. Fixed Deposits 21,229,162,283
1.1 Organized Institutions 15,819,484,330
1.2 Individuals 4,966,927,011
1.3 Others 132,419,692
2. Foreign Currency 310,331,250
2.1 Organized Institutions 303,750,000
2.3 Others -
C. Call Deposit 24,708,943,321
1.1 "Ka" Class Licensed Institutions -
1.2 Other Licensed Institutions 3,674,783,515
1.4 Individual 1,269,107,894
1.5 Others 3,265,908,204
2. Foreign Currency 4,068,747,042
2.1 "Ka" Class Licensed Institutions 507,200
2.2 Other Licensed Institutions -
2.4 Individual 19,296,028
2.5 Others 273,363,275
D. Certificate of Deposit -
2.2 Individuals -
2.3 Others -
Total Interest Bearing Accounts 77,671,422,388
Total Deposit 90,631,486,765
Bills Payable
(As at July 16, 2015)
Schedule 6
1. Local Currency 214,898
Total 214,898
contd.
Current Year Rs.
25,015,420,069
24,280,606,678
-
24,280,606,678
-
734,813,391
-
734,813,391
-
18,019,365,111
17,284,973,519
12,264,186,244
4,694,449,943
326,337,332
734,391,592
734,391,592
-
-
19,338,934,611
16,080,115,006
-
4,333,986,848
7,906,673,666
1,241,065,554
2,598,388,939
3,258,819,605
480,400
-
3,053,488,238
31,382,909
173,468,059
-
-
-
-
62,373,719,791
73,831,375,915
Previous Year Rs.

233,930
32,550
266,480
Other Liabilities
(As at July 16, 2015) Schedule 7
1. Pension/ Gratuity Fund 5,181,681 5,181,681
2. Employees Provident Fund - -
3. Employees Welfare Fund - -
4. Provision for Staff Bonus 281,740,385 276,647,938
5. Interest Payable on Deposits 40,578,767 62,997,628
6. Interest Payable on Borrowings 71,286,071 52,720,137
7. Unearned Discount & Commission 113,595,171 61,886,243
8. Sundry Creditors 360,158,832 246,292,744
9. Branch Adjustment Account - -
10 Deferred Tax Liabilities 12,390,269 13,181,121
11. Dividend Payable 318,744,447 180,053,579
12. Calls in Advance - 8% Debentures 2078 - 750,000,000
13. Others 807,122,044 256,828,889
13.1 Matured Time Deposit 250,878,634 26,405,043
13.2 Statutory Auditor's Fee 508,500 508,500
13.3 L/C Payable 350,281,211 159,923,311
13.4 Good for Payment Cheque Payable 133,604,088 -
13.5 Others 71,849,611 69,992,035
Total 2,010,797,667 1,905,789,960
Cash Balance
1. Local Currency (including coin) 2,469,887,673 2,108,526,124
2. Foreign Currency 191,050,542 62,241,918
Total 2,660,938,215 2,170,768,042
BALANCE WITH NEPAL RASTRA BANK

(As at July 16, 2015)
Schedule 9
Foreign Curency in Rs. Current Year Previous Year
Particulars Local Currency Rs. Rs.
Grand Total Grand Total
Indian Rs. Conv. F.C. Total
1. Nepal Rastra Bank 8,895,995,748 -96,842,940 96,842,940 8,992,838,688
a. Current Account 8,895,995,748 -96,842,940 96,842,940 8,992,838,688
b. Other Account - - - - -
Note : Total Balance as per the confirmations received from Nepal Rastra Bank is Rs. 10,108,421,720
Schedule 7
Previous Year Rs.
5,181,681
-
-
276,647,938
62,997,628
52,720,137
61,886,243
246,292,744
-
13,181,121
180,053,579
750,000,000
256,828,889
26,405,043
508,500
159,923,311
-
69,992,035
1,905,789,960
Schedule 8
Previous Year Rs.
2,108,526,124
62,241,918
2,170,768,042
Current Year Previous Year

Rs. Rs.
Grand Total Grand Total
12,652,937,075
12,652,937,075
-
BALANCE WITH BANKS/FINANCIAL INSTITUTIONS
(As at July 16, 2015)
Schedule 10
Particulars Local Currency Foreign Currency in Rs.
Indian Rs.
1. Local Licensed Institutions 306,936,676 - 17,789,384
a. Current Account 306,936,676 - 17,789,384
b. Other Account
2. Foreign Banks - 720,934,968 1,615,610,335
a. Current Account - 720,934,968 1,615,610,335
b. Other Account
Total 306,936,676 720,934,968 1,633,399,719
Note : Total Balance as per the confirmations received from respective Banks is Rs. 3,860,195,072.71
MONEY AT CALL AND SHORT NOTICE

(As at July 16, 2015)
Schedule 11
1. Local Currency -
Total -
Foreign Currency in Rs. Current Year Rs. Previous Year Rs.
Grand Total
Conv. F.C. Total
- 17,789,384 17,789,384 324,726,060 220,409,773
- 17,789,384 17,789,384 324,726,060 220,409,773
- -
720,934,968 1,615,610,335 2,336,545,303 2,336,545,303 1,700,596,332
720,934,968 1,615,610,335 2,336,545,303 2,336,545,303 1,700,596,332
- -
720,934,968 1,633,399,719 2,354,334,687 2,661,271,363 1,921,006,105
Current Year Rs. Previous Year Rs.

- 200,000,000
- 32,375,000
- 232,375,000
INVESTMENTS
(As at July 16, 2015)
Schedule 12
Particulars Purpose Current Year Rs. Previous Year R
Trading Others
1. Nepal Government Treasury Bills -9,063,082,816 9,063,082,816 5,340,33
2. Nepal Government Savings Bond -40,000,000 40,000,000 486,52
3. Nepal Government Other Securities - - -
4. Nepal Rastra Bank Bonds - - -
5. Foreign Bonds - -
6. Local Licensed Institutions -506,250,000 506,250,000 479,50
7. Foreign Banks -9,715,950,000 9,715,950,000 8,734,26
8. Corporate Shares -532,571,060 532,571,060 342,90
9. Corporate Bonds and Debentures - - -
10. NRB Deposit Collection 1,600,000,000 1,600,000,000
11. Other Investment (Swift) -4,733,868 4,733,868
Total Investment -21,462,587,744 21,462,587,744 15,383,52
Provision - - -
Net Investment -21,462,587,744 21,462,587,744 15,383,52
INVESTMENT IN SHARES DEBENTURES AND BONDS

Notes: Following Company has not declared and distributed dividend for the last three years:
- Purbanchal Grameen Bikash Bank Ltd.
- Taragaon Regency Hotel Ltd.
- Nepal Clearing House Ltd.
Schedule 12 (A)
Particulars Cost Price Market Price Provision Current Year
Rs. Rs.
1. Investment in Shares
1.1Sudur Paschimanchal Grameen Bikas Bank 30,000 Ordinary - - -
Shares of Rs.100 paid up

1.2 Paschimanchal Grameen Bikas Bank 18,975 Ordinary 1,500,000 Unlisted - 1,500,000
Shares of Rs.100 paid up, of which 3975 are bonus shares
1.3 Purbanchal Grameen Bikas Bank 30,000 Ordinary 3,000,000 28,950,000 - 3,000,000
1.4 Rural Micro Finance Development Centre Ltd. 338,100 Ordinary 33,810,000 221,455,500 - 33,810,000
1.5 Swabalamban Bikas Bank 180,179 Ordinary 12,490,500 314,952,892 - 12,490,500
Shares of Rs.100 paid up, of which 55,274 are bonus shares
1.6 Credit Information Centre Ltd. 42,007 Ordinary 1,611,100 Unlisted - 1,611,100
1.7 Taragaon Regency Hotel Ltd. Ordinary 150,000 15,000,000 37,800,000 - 15,000,000
1.8 Nepal Clearing House Ltd. Ordinary 25,000 2,500,000 Unlisted - 2,500,000
1.9 NIBL Capital Markets Ltd. Ordinary 1,015,000 101,500,000 Unlisted - 101,500,000
Shares of Rs. 100 paid up
1.10 ICRA Nepal Ltd. Ordinary 7,600 760,000 Unlisted - 760,000
1.11 Flexiterm Pvt. Ltd. Ordinary 82,886 8,288,600 Unlisted - 8,288,600
1.12 M Nepal Pvt. Ltd. Ordinary 250,000 25,000,000 Unlisted - 25,000,000
1.13 Nabil Mutual Fund- Balanced Scheme 1,143,683 11,436,830 15,439,721 - 11,436,830
Units of Rs. 10 paid up
1.14 National Life Insurance Co. Ltd. Ordinary 449,500 102,237,590 458,490,000 - 102,237,590
1.15 National Micro Finance Bittiya Sansthan Ltd. Ordinary 250,000 25,000,000 Unlisted - 25,000,000
1.16 Siddhartha Equity Oriented Scheme 3,538,646 35,386,460 36,023,416 - 35,386,460
1.17 NMB Sulav Investment Fund - I 1,304,998 13,049,980 13,049,980 - 13,049,980
Units of Rs.10 paid up
1.18 NIBL Samriddhi Fund- I 14,000,000 140,000,000 140,000,000 - 140,000,000
2. Investments in Debentures and Bonds - - -
Total Investment 532,571,060 1,266,161,509 - 532,571,060
3. Provision for Loss
3.1 Up to Previous year - - -
3.2 Adjustments this year - - -
Total Provision - - -
Net Investment 532,571,060 - - 532,571,060
Rs. Previous Year Rs.
5,340,330,480
486,525,000
-
-
-
479,500,000
8,734,267,410
342,906,220
-
-
-
15,383,529,110
-
15,383,529,110
Previous Year Cost

Price Rs.
3,000,000
1,500,000
3,000,000
33,810,000
12,490,500
1,611,100
15,000,000
2,500,000
101,500,000
760,000
4,060,200
25,000,000
11,436,830
102,237,590
25,000,000
-
-
342,906,220
-
-
-342,906,220
aNNual RepoRt 2015
INVESTMENTS (Held for Trading)

(As at July 16, 2015)
Schedule 12.1
S.No. Particulars Cost Price Previous Current Current Year Previous Remarks Rs.
Market Price Market Price Profit/(Loss) Year Profit/
Rs. Rs. Rs. (Loss) Rs.
1 Nepal Government Treasury Bills
2 Nepal Government Savings Bond
3 Nepal Government Other Securities
4 Nepal Rastra Bank Bonds
5 Foreign Bonds
6 Local Licensed Institutions' Shares
7 Local Licensed Institutions' Debentures & Bond
8 Local Organized Instituions' Shares, Debentures & Bonds
9 Foreign Bank Placements
10 Inter Bank Lending
11 Other Investment
Total Investments
INVESTMENTS (Held for Maturity)

(As at July 16, 2015)
Schedule 12.2
Amount Impaired Amount Current Year Previous Year
S.No. Particulars Cost Price Rs. till Previous Year Impaired till Profit/(Loss) Profit/ (Loss)
Rs. date Rs. Rs. Rs.

1 Nepal Government Treasury Bills 9,063,082,816
2 Nepal Government Savings Bond 40,000,000
3 Nepal Government Other Securities -
4 Nepal Rastra Bank Bonds/deposit 1,600,000,000
collection
5 Foreign Bonds -
6 Local Licensed Institutions' Shares -
7 Local Licensed Institutions' -
Debentures & Bond
8 Local Organized Instituions' Shares, -
Debentures & Bonds
9 Foreign Bank Placements 9,715,950,000
10 Other Investment 510,983,868
Total Investments 20,930,016,684 - - - -
56 Nepal INvestmeNt BaNk ltd
vious Remarks Rs.
Remarks
INVESTMENTS (Available for Sale)
(As at July 16, 2015)
Schedule 12.3
S.No. Particulars Cost Price Previous Current Current Year Previous Remarks Rs.
Market Price Market Price Adjustment Year Profit/
Rs. Rs. In (Loss) Investment Rs.
Reserve
Rs.
1 Nepal Government Treasury Bills

2 Nepal Government Savings Bond
3 Nepal Government Other Securities
4 Nepal Rastra Bank Bonds
5 Foreign Bonds
6 Local Licensed Institutions' Shares 75,800,500 595,837,145 565,358,392 - -
7 Local Licensed Institutions' Debentures & Bond
8 Local Organized Instituions' Shares, Debentures

456,770,560 359,406,560 700,803,117 29,497,129 -
& Bonds
9 Foreign Bank Placements
10 Other Investment
Total Investments 532,571,060 955,243,705 1,266,161,509 29,497,129 -
Previous Remarks Rs.
ice Adjustment Year Profit/
(Loss) Investment Rs.
Reserve
Rs.
-
CLASSIFICATION OF LOANS, ADVANCES AND BILLS PURCHASE AND PROVISI
(As at July 16, 2015)
Schedule 13
Particulars Advances Bills Purchased
Domestic Foreign Total Domestic
Deprived
Insured Un-insured
Other
1. Performing Loan - 3,128,097,639 61,880,017,328 1,169,164,937 66,177,279,904
Pass Loan -3,120,683,815 56,944,038,514 1,169,164,937 61,233,887,266
Watch List Loan 7,413,824 4,935,978,814 -4,943,392,638

2. Non Performing Loan -5,439,434 838,693,273 -844,132,707
2.1 Restructure/Reschedule - - - - -
2.2 Substandard -2,210,801 66,375,263 -68,586,064
2.3 Doubtful -456,801 82,255,705 -82,712,506
2.4 Loss -2,771,832 690,062,305 -692,834,137
(A)Total Loan -3,133,537,073 62,718,710,601 1,169,164,937 67,021,412,611
3. Loan Loss Provision
3.1 Pass -31,206,838 571,175,527 11,691,649 614,074,014
3.2 Watch List 148,276 98,719,577 - 98,867,853

3.3 Restructured - - - - -
3.4 Substandard -552,700 16,593,816 - 17,146,516
3.5 Doubtful -228,400 41,127,853 - 41,356,253
3.6 Loss -2,771,832 690,062,305 - 692,834,137
(B) Total Loan Provision -34,908,048 1,417,679,077 11,691,649 1,464,278,774
4. Provisioning up to Previous Year
4.1 Pass -23,620,812 616,248,753 6,296,514 646,166,079
4.2 Restructured - - - - -
4.3 Substandard - - 40,430,751 - 40,430,751
4.4 Doubtful - - 36,948,263 - 36,948,263
4.5 Loss -2,771,833 708,730,098 - 711,501,931
(C). Total Previous Year Provision -26,392,644 1,402,357,866 6,296,514 1,435,047,024
(D). Written Back Provision - - - - -
(E) This Year's Addition Provision - - - - -
Changes in this Year* -8,515,403 15,321,211 5,395,135 29,231,749
Net Loan (A-B) -3,098,629,026 61,301,031,524 1,157,473,288 65,557,133,838
HASE AND PROVISIONING
Bills Purchased/ Discounted

Domestic Foreign Total Current Year
Previous year Rs.
Rs.
176,618,060 668,786,038 66,846,065,942 52,511,348,197

492,167,978
176,618,060 668,786,038 61,902,673,304 52,511,348,197
492,167,978
-4,943,392,638
-844,132,707 947,121,461
- - - - -
-68,586,064 161,723,004
-82,712,506 73,896,526
-692,834,137 711,501,931
176,618,060 492,167,978 668,786,038 67,690,198,649 53,458,469,658
1,766,180 4,921,680 6,687,860 620,761,874 649,823,610
- - - 98,867,853
- - - -
- - - 17,146,516 40,430,751
- - - 41,356,253 36,948,263
- - - 692,834,137 711,501,931
1,766,180 4,921,680 6,687,860 1,470,966,634 1,438,704,555
3,155,994 501,537 3,657,531 649,823,610 617,128,760
- - - - -
- - - 40,430,751 51,845,166
- - - 36,948,263 74,114,874
- - - 711,501,931 557,485,815
3,155,994 501,537 3,657,531 1,438,704,555 1,300,574,615
- - - 537,704,153 139,148,316
- - - 569,966,232 277,278,257
(1,389,814) 4,420,143 3,030,329 32,262,079 138,129,941
174,851,879 487,246,298 662,098,177 66,219,232,015 52,019,765,103
SECURITIES AGAINST LOAN, ADVANCES AND BILLS PURCHASED
(As at July 16, 2015)
Schedule 13 (A)
(A) Secured 67,690,198,649 53,458,469,658
1. Collateral of Movable/Immovable Assets 56,270,389,637 45,731,877,900
2. Local Licensed Institutions Guarantee - -
3. Government Guarantee - -
4. Internationally rated Foreign Banks Guarantee - -
5. Export Documents - 108,157,910 - 116,115,655
6. Fixed Deposit Receipts
(a) Own FDR
108,157,910
(a) FDR of other Licensed Institutions -
7. Government Bonds 37,987,480 39,476,667
8. Counter Guarantee - -
9. Personal Guarantee 591,294,666 39,685,853
10. Other Securities 10,682,368,957 7,531,313,583
(B) Unsecured - - -
Total -67,690,198,649 53,458,469,658
Previous Year Rs.
53,458,469,658
45,731,877,900
-
-
-
- 116,115,655
39,476,667
-
39,685,853
7,531,313,583
-
53,458,469,658
FIXED ASSETS
(As at July 16, 2015)
Schedule 14
Assets
PARTICULARS
Building Vehicles Machinery
1. At Cost
A. Previous Year's Balance 190,075,063 291,625,590 -299,857,363
B. Addition during the Year (+) - 74,186,906 22,058,506

C. Revaluation / Written back during the Year (+)" - - - -
D. This Year Sold (-) - (30,885,675) (1,126,750)

E. This Year Written off (-) -
TOTAL GROSS VALUE ( A+B+C-D-E ) 190,075,063 334,926,821 -320,789,119
"
2. DEPRECIATION
A. Previous Year's Balance 33,823,559 122,056,954 -158,130,2
B. Depreciation during the Year (+) 3,801,501 42,591,955 -26,608,7
C. Depreciation on Revaluation/ Written - - - -
back
D. Total Depreciation on Sold / (25,314,666) (760,348)
Written Off Assets (-)
TOTAL DEPRECIATION ( A+B-C-D) 37,625,060 139,334,243 -183,978,6
3. REMAINING BOOK VALUE ( 1-2 ) 152,450,003 195,592,578 -136,810,4
4. Land
5. Capital Construction
6. LEASEHOLD ASSETS
TOTAL BOOK VALUE ( 3+4+5+6)
152,450,003 195,592,578 -136,810,4
Assets Current Year Total Previous Year Total
Office Equipment Others
-
-299,857,363 747,696,730 1,529,254,746 1,420,799,778
22,058,506 35,519,190 131,764,602 129,457,618

- - - - -
(1,126,750) (1,403,267) (33,415,692) (13,551,405)

- - - (7,451,245)
-320,789,119 781,812,653 1,627,603,657 1,529,254,746
-158,130,262 570,419,899 884,430,673 765,452,417

-26,608,757 57,006,854 130,009,067 131,467,968
- - - - -
(760,348) (1,403,257) (27,478,271) (12,489,711)
-183,978,672 626,023,496 986,961,470 884,430,673

-136,810,448 155,789,157 640,642,187 644,824,072
413,489,330 413,489,330
- -
- 1,054,131,517 - 1,058,313,402
-136,810,448 155,789,157
Non-Banking Assets
(As at July 16, 2015) Schedul
Name and Address of Borrower or Date of Total Amount Loss Provision Net Non
Party acquisition of of Non-Banking Non Banking
Banking Assets Assets Previous Year Rs.
Assets Rs.
In percentage In Total Loss

amount Amount Provision
Mr. Bijaya Budha Magar Lalitpur, Ward 13-Aug-2014 3,925,677 100% 3,925,677 - - - -
No.4 Chha, Kusnati
Grand Total 3,925,677 - 3,925,677 - - - -
OTHER ASSETS
(As at July 16, 2015)
Schedule 16
Current Year Rs. Previous Year Rs.
Particulars
Rs. Total Rs.
1. Stock of Stationery 3,903,382
2. Income Receivable on investments 54,561,151
3. Accrued Interest on Loan 309,374,066 319,892,052

Less: Interest Suspense amount (297,663,730) 11,710,336 (295,297,022)
4. Receivable Commission -
5. Sundry Debtors & Advances 518,068,845 102,042,625
Less : Provision - 518,068,845 -
6. Staff Loan and Advances 197,138,013
7. Prepayments 38,639,778
8. Cash in Transit 48,978
9. Other Transit items (including cheques) -
10. Drafts Paid without Notice -
11. Expenses Not Written off 180,661,700 143,518,548
Less: Amortization (133,130,544) 47,531,156 (122,041,853)
12. Branch Adjustment account -
13 Deferred Tax Assets -
14. Others 422,835,232
14.1 Receivable from Nepal Rastra Bank 18,678,721
14.2 Insured amount receivable against Staff Housing Loan 149,466,863
14.3 Advance Income Tax net of provision 102,883,243
14.4 Premium Paid on Government Bonds 72,767
14.5 Others 151,733,638
Total 1,294,436,871
Schedul e 15
Previous Year Rs.
Total Loss
Amount Provision
Net
- - - -
- - - -
Previous Year Rs.

Total
2,748,090
33,496,481
24,595,030
-
102,042,625
186,131,052
20,623,359
-
-
-
21,476,695
-
-
344,120,405
62,089,349
126,635,003
66,118,778
6,860,698
82,416,577
735,233,737
OTHER ASSETS (Additional Statement)
(As at July 16, 2015) Schedule 16 (A)
Current Year Rs.

Particulars
Up to 1 Year 1 to 3 Years Above 3 Years Total
1. Accrued Interest on Loan 121,761,980 78,284,457 109,327,629 309,374,066
2. Drafts Paid without Notice -

3. Branch Adjustment A/c
CONTINGENT LIABILITIES
1. Claims on Institution but not accepted by the Institution - -
2. Letters of credit (full amount) 15,330,627,585 12,777,712,074
(a) Less than 6 months maturity 8,282,228,336 7,885,734,099
(b) More than 6 months maturity 7,048,399,249 4,891,977,975
3. Rediscounted Bills - -
4. Unmatured Guarantees/ Bonds 6,372,831,346 5,720,864,527
(a) Bid Bonds 660,838,102 614,279,781
(b) Performance Bonds 3,595,330,988 2,805,314,386
(c) Other Guarantee/ Bonds 2,116,662,257 2,301,270,361
5. Unpaid Shares in Investment - -
6. Forward Exchange Contract Liabilities 4,288,505,021 2,340,547,650
7. Bills under Collection 236,261,876 171,001,530
8. Acceptance and Endorsements 3,983,051,951 4,611,032,431
9. Underwriting Commitments - -
10. Irrevocable Loan Commitments 5,741,585,892 5,127,618,453
11. Guarantee issued against counter guarantee of Internationally Rated Banks 5,677,636,019 3,820,762,914
12. Advance Payment Guarantee 3,122,094,852 1,777,689,896

13. Financial Guarantee - -
14. Contingent Liabilities on Income Tax 30,612,320 4,127,349
15. Others - -
Total 44,783,206,862 36,351,356,824
Schedule 16 (A)
Previous Year Rs.

Total
319,892,052
Schedule 17
Previous Year Rs.
-
12,777,712,074
7,885,734,099
4,891,977,975
-
5,720,864,527
614,279,781
2,805,314,386
2,301,270,361
-
2,340,547,650
171,001,530
4,611,032,431
-
5,127,618,453
3,820,762,914
1,777,689,896
-
4,127,349
-
36,351,356,824
INTEREST INCOME
For the period July 17, 2014 to July 16,2015

A. On Loan, Advances and Overdrafts 5,619,248,604
1. Loan and Advances 4,207,197,931
2. Overdraft 1,412,050,673
B. On Investment 70,985,555
1. Nepal Government Securities 67,198,010
a. Treasury Bills 34,164,559
b. Development Bonds 33,033,451
c. National Savings Certificates -
2.Foreign Securities -
3.Nepal Rastra Bank Bonds/Reverse Repo 3,787,545
4.Debenture and Bonds -
a.Banks & Financial Institutions -
b.Other Organization -
5. Interest on Inter Bank Lending -
C. On Agency Balances 1,964,301
1. Local Banks & Financial Institutions -
2. Foreign Banks 1,964,301
D. On Money At Call and Short Notice 50,090,380
1. Local Banks & Financial Institutions -
2. Foreign Banks* 50,090,380
E. On Others 43,871,640
1. Certificate of Deposits -
2. Inter-Bank/ Financial Institutions Loan 5,234,012
3. Others 38,637,628
Total 5,786,160,480
*Interest received on investment (placements) made in foreign banks is shown under this heading
Schedule 18
Previous Year Rs.

5,582,416,323
3,820,052,951
1,762,363,372
132,129,990
132,129,990
64,442,531
67,687,459
-
-
-
-
-
-
-
6,537,945
-
6,537,945
47,591,111
-
47,591,111
47,603,699
-
5,281,928
42,321,771
5,816,279,068
INTEREST EXPENSES

A. On Deposit Liabilities 2,649,866,705
1. Fixed Deposits 1,207,025,796
1.1 Local Currency 1,202,473,934
1.2 Foreign Currency 4,551,862
2. Savings Deposits 762,860,617
1.1 Local Currency 757,968,925
3. Call Deposit 679,980,292
1.1 Local Currency 660,629,447
4. Certificate of Deposits -
B. On Borrowings 157,494,645
1. Debenture and Bonds 155,154,421
2. Loan from Nepal Rastra Bank (Refinance) 1,777,076
3. Inter Bank/ Financial Institutions Borrowing 563,148
4. Other Corporate Body -
5. Other Loans
C. On Others -
Total 2,807,361,350
Commission And Discount

Schedule 20
A. Bills Purchase and Discount 9,400,887
1. Local 9,317,560
2. Foreign 83,327
B. Commission 435,692,827
1. Letters of Credit 124,328,038
2. Guarantees 109,519,793
3. Collection Fee 35,750
4. Remittance Fee 25,494,259
5. Credit Cards/ Debit Cards 133,897,275
6. Share Underwriting/ Issues 1,410,000
7. Government Transactions -
8. Agency Commission 40,870,826
9. Exchange Fee 136,885
C. Others 52,206,597
Total 497,300,311
Schedule 19
Previous Year Rs.

2,706,457,403
1,415,656,384
1,383,884,455
31,771,929
672,752,368
668,563,720
4,188,648
618,048,651
612,805,067
5,243,584
-
114,018,035
110,526,693
2,965,849
525,493
-
-
2,820,475,438
Previous Year Rs.

7,806,811
7,582,187
224,624
419,938,885
107,842,952
93,279,631
63,750
26,780,597
152,307,379
-
-
39,605,200
59,375
50,862,635
478,608,331
Other Operating Income
Exchange Gain/Loss
Schedule 21
Schedule 22
1. Rental on Safe Deposit Lockers 22,983,485
2. Issue and Renewals of Credit Cards 1,777,342
3. Issue and Renewals of ATM Cards/ Debit Cards 60,087,091
4. Telex/ T.T. 49,460,060
5. Service Charges 66,677,423
6. Renewal Fees 32,804,127
8. Others 3,679,095
Total 237,468,623
(A) Revaluation Gain/ (Loss) 39,173,765
(B) Trading Gain (except Exchange Fee) 419,244,707
Total Income/ (Loss) 458,418,472
EXPENSES RELATING TO EMPLOYEES

Schedule 23
1. Salary 173,087,554 159,475,858
2. Allowances 233,616,804 207,179,743
3. Contribution to Provident Fund 14,301,019 13,295,802
4. Training Expenses 3,543,367 4,633,683
5. Uniform 1,482,708 1,272,485
6. Medical 60,486 72,553
7. Insurance 18,428,067 17,283,591
8. Pension and Gratuity Fund 21,732,517 22,140,528
9. Others 13,886,371 12,411,350
a. Leave Compensation 441,054 559,867
b. Staff Lunch 10,206,636 9,630,016
c. Other incentives 3,238,681 2,221,467
Total 480,138,893 437,765,593
Previous Year Rs.
19,945,052
2,009,404
59,605,106
39,950,179
46,095,194
25,692,097
18,049,197
211,346,229
Previous Year Rs.
18,902,451
441,324,318
460,226,769
Previous Year Rs.

159,475,858
207,179,743
13,295,802
4,633,683
1,272,485
72,553
17,283,591
22,140,528
12,411,350
559,867
9,630,016
2,221,467
437,765,593
OTHER OPERATING EXPENSES
Schedule 24
1. House Rent 72,332,045
2. Electricity and Water 21,085,290
3. Repair and Maintenance 12,713,739
(a) Building 5,009,869
(b) Vehicles 2,801,713
(c) Others 4,902,157
4. Insurance 32,482,815
5. Postage, Telex, Telephone, Fax, SMS 25,481,282
6. Office Equipment, Furniture and Repair 10,012,013
7. Travelling Allowances and Expenses 6,648,959
8. Stationery and Printing 33,438,904
9. Periodicals and Books 703,720
10. Advertisements & Business Promotion 39,737,311
11. Legal Expenses 1,207,400
12. Donations 11,954,011
13. Expenses Relating to Board of Directors 1,447,254
(a) Meeting Fees 1,296,000
(b) Other Expenses 151,254
14. Annual General Meeting Expenses 1,402,258
15. Expenses Relating to Audit 508,500
(a) Audit Fees 508,500
(b) Other Expenses -
16. Commission on Remittances -
17. Depreciation on Fixed Assets 130,009,067
18. Amortization of Expenses( Software) 11,088,691
19. Share/Debenture expenses 4,009,062
20. Technical Services Fee -
21. Entertainment 9,941,811
22. Written Off Expenses -
23. Security Expenses 35,566,554
24. Credit Guarantee Premium -
25. Commission and Discount -
26. Others 110,336,957
(a) Fees for Services 54,898,164
(b) Fuel for Vehicle/Generator 38,112,141
(c) Losses shortages written off -
(d) Vehicle Renewal and other taxes 9,193,470
(e) Membership Fee 3,468,145
(f) Office Cleaning & Maintenance 2,639,787
(g) Misc. Expenses 2,025,250
Total 572,107,643
Previous Year Rs.
69,981,016
20,302,938
10,486,065
4,769,308
3,210,006
2,506,751
29,554,247
28,038,142
10,623,209
6,089,332
26,778,721
685,085
34,425,985
1,084,790
36,752
1,586,128
1,420,000
166,128
1,259,498
508,500
508,500
-
-
131,467,968
16,609,774
3,917,012
-
9,433,907
-
34,916,967
-
-
101,544,790
39,841,245
43,850,435
-
8,996,413
3,784,824
2,566,066
2,505,807
539,330,825
Provision for Possible Loss
Non-Operating Income/Loss
Schedule 25
Schedule 26
1. Increase in Loan Loss Provision 569,966,232
2. Increase in Provision for Loss on Investment -
3. Provision for Non Banking Assets 3,925,677
4. Provision for Other Assets -
Total 573,891,909.00
1. Profit (Loss) on Sale of Investment (3,000,000)
2. Profit (Loss) on Sale of Assets 6,095,657
3. Dividend (net) 12,496,329
a. Commercial Banks
b. Grameen Banks 10,337,214
c. Financial Institutions
d. Other Organized Institutions
(1) Subsidiary Companies
(2) Others 2,159,115
4. Subsidies Received from Nepal Rastra Bank
a. Reimbursement of losses of specified branches
b. Interest Subsidy
c. Exchange Counter
5. Others - -
Total Non-Operating Income /(Loss) 15,591,986 11,841,446
Loss Provision Written Back

Schedule 27
For the period July 17, 2014 to July 16, 2015

1. Loan Loss Provision Written Back 537,704,153
2. Provision against Non Banking Assets Written Back -
3. Investment Provision Written Back -
4. Provision Against Other Assets Written Back -
Total 537,704,153
Previous Year Rs.
277,278,257
-
-
-
277,278,257.00
Previous Year Rs.
-
281,895
11,559,551
7,535,801
4,023,750
-
11,841,446
Previous Year Rs.

139,148,316
-
-
-
139,148,316
Profit/ Loss from Extra Ordinary Activities
For the period July 17, 2014 to July 16, 2015
Statement of Loan Written-off

For FY 2014/15
Schedule 28
Schedule 28 Ka
1. Recovery of written off Loan - 527,273
2. Voluntary Retirement Scheme Expenses - -
3. Loan Write-Offs (28 (A)) - -
4. Other Expenses/ Income - -
Total - 527,273
Types of Types of
Basis of valuation of Loan Approving Initiations made for
S.N. Credit Written Off Amount Security & Collateral Officer/Level recovery Remarks
Amount In NPR
-
Grand Total -
Statement of Loans and Advances Extended to Directors/ Chief Executive/ Promoter/

As at July 16, 2015)
Schedule 29
The Statement of amount, included under total amount of Bills Purchased and Discounted, Loans, Advances and Overdraft, provided to the Directors, Chief Exe
Name of Promoter/Director/ Last Years Balance This Year Recovery This year Balance as of Ashad end
Chief Executive Principal Interest Principal Interest Addition Principal

(A) Directors - - - - - -
(B) Chief Executive - - - - - -
(C) Promoters - - - - - -
(D) Employees - - - - - -
(E) Shareholders - - - - - -
Total - - - - - -
Previous Year Rs.
527,273
-
-
-
527,273
xecutive/ Promoter/ Employees and Shareholders Holding More Than 1 Percent Shares
provided to the Directors, Chief Executive, Promoters, Employees, Shareholders and to the individual members of their undivided family OR against the guarantee of such per
alance as of Ashad end
Interest
-
-
-
-
-
-
rcent Shares
against the guarantee of such persons OR to the organizations or companies in which such individuals are managing agent, are as follows:
FORM NO.1 CAPITAL ADEQUACY TABLE
Schedule 30 A
As at July 16, 2015
1.1 RISK WEIGHTED EXPOSURES Current Year
a Risk Weighted Exposure for Credit Risk 89,584,665
b Risk Weighted Exposure for Operational Risk 5,577,086

c Risk Weighted Exposure for Market Risk 430,390
Adjustment under Pillar II
Add:2% of the total RWE as per Disclosure Requirement(6.4 a 10) 1,911,843

Add:3% Capital Charge For Operational Risk 1,241,846
Add: ….Capital Charge For ALM
Add: % of the total deposit due to insufficient liquid assets(6.4 a 6)
Total Risk Weighted Exposures(After Bank’s adjustment of Pillar II) 98,745,831
1.2 CAPITAL Current Year
Core Capital (Tier 1) 9,425,243
a Paid up Equity Share Capital 4,771,204
b Irredeemable Non-cumulative preference shares -
c Share Premium 11,849
d Proposed Bonus Equity Shares 1,574,497
e Statutory General Reserves 2,695,652
f Retained Earnings till last year -

g Retained Earning till This year 50,044
h Capital Redemption Reserve -
i Capital Adjustment Fund -
j Dividend Equalization Reserves -
k Debenture Redemption Reserve 464,286

l Deferred Tax Reserve -
m Other Free Reserve -
n Less.Goodwill
o Less.Fictitious assets -
p Less. Investment in equity in licensed Financial Institutions -
q Less. Investment in equity of institutions with financial interests (134,789)
r Less. Investment in equity of institutions in excess of limits (7,500)
s Less. Investments arising out of underwriting commitments -
t Less. Reciprocal crossholdings -
u Less. Other Deductions -
Adjustments under Pillar II
Less: Shortfall in Provision(6.4 a 1) -

Less: Loans and Facilities extended to Related Parties and Restricted lending(6.4 a 2) -
Supplementary Capital (Tier 2) 2,329,051
a Cumulative and/or Redeemable Preference Share -
b Subordinated Term Debt 1,550,000
Less : 20% discount value to 5YTM Bond/ Debenture (180,000)
c Hybrid Capital Instruments -
d General loan loss provision 719,630
e Exchange Equalization Reserve 70,013
f Investment Adjustment Reserve 169,377
g Assets Revaluation Reserve -
h Other Reserves 32
Total Capital Fund (Tier I and Tier II) 11,754,294
1.3 CAPITAL ADEQUACY RATIOS Current Year
Core Capital to Total Risk Weighted Exposures (Tier I) 9.54%

Total Capital Fund to Total Risk Weighted Exposures (Tier I & Tier II) 11.90%
Rs. In '000
Previous Year
71,708,512
4,929,887
796,170
1,548,691
793,651
79,776,912
Previous Year
7,594,788
4,146,708
-
11,849
622,006
2,303,282
-
181,384
-
-
-
460,119
-
-
-
-
(130,560)
-
-
-
-
-
-
1,399,061
-
1,050,000
(370,000)
-
518,931
60,219
139,880
-
32
8,993,849
Current Year
9.52%
11.27%
FORM NO.2 RISK WEIGHTED EXPOSURE FOR CREDIT RISK
Schedule 30 B
Rs. In '000
Current Year Previous year

A. Balance Sheet Exposures
" Book Value
a"
" Specific Provision
" Eligible CRM
c"
Risk Weight d=a-b-c "

" Net Value
" Risk Weighted

Exposures
" Net Value "
Previous
Year RWE
b"
Cash Balance 2,660,938 - -2,660,938
Balance With Nepal Rastra Bank 8,992,839 - -8,992,839
Gold - - - -
Investment in Nepalese Government Securities 9,103,083 - -9,103,083
All Claims on Government of Nepal - - - -
Investment in Nepal Rastra Bank securities 1,600,000 - -1,600,000
All Claims on Nepal Rastra Bank 18,679 - -18,679
Claims on Foreign Government and Central Bank (ECA rating 0-1) - - - -
Claims on Foreign Government and Central Bank (ECA-2) - - - -
Claims on Foreign Government and Central Bank (ECA -3) - - - -
Claims on Foreign Government and Central Bank (ECA-4-6) - - - -
Claims on Foreign Government and Central Bank (ECA -7) - - - -
Claims On BIS, IMF, ECB, EC and on Multilateral Development Banks - - - -

(MDB's) recognized by the framework - - - -
Claims On Other Multilateral Development Banks
Claims on Public Sector Entity (ECA 0-1) - - - -

Claims on Public Sector Entity (ECA 2) - - - -
Claims on Public Sector Entity (ECA 3-6) 722,588 -722,588
Claims on Public Sector Entity (ECA 7) - - - -
Claims on domestic Banks that meet capital adequacy requirements 816,043 -816,043
Claims on domestic Banks that do not meet capital adequacy 14,933 - - 14,933
requirements 5,307,757 - - 5,307,757
Claims on foreign bank (ECA Rating 0-1)
Claims on foreign bank (ECA Rating 2) 2,770,045 -2,770,045

Claims on foreign bank (ECA Rating 3-6) - - - -
Claims on foreign bank (ECA Rating 7) - - - -
Claims on foreign bank incorporated in SAARC region operating with a buffer of 1% above their respective regulatory capital requirement
3,974,693 - 3,974,693 20% 794,939 3,529,997 705,999
f=d*e "
-2,660,938 0% - 2,170,768 -
-8,992,839 0% - 12,652,937 -
- - 0% - - -
-9,103,083 0% - 5,826,855 -
- - 0% - - -
-1,600,000 0% - - -
-18,679 0% - 62,089 -
- - 0% - - -
- - 20% - - -
- - 50% - - -
- - 100% - - -
- - 150% - - -
- - 0% - - -
- - 100% - - -
- - 20% - - -
- - 50% - - -
588 100% 722,588 746,978 746,978
- - 150% - - -
043 20% 163,209 362,969 72,594
- 14,933 100% 14,933 569,316 569,316

- 5,307,757 20% 1,061,551 4,759,911 951,982
0,045 50% 1,385,023 2,144,956 1,072,478

- - 100% - - -
- - 150% - - -
latory capital requirement
9,997 705,999
contd..... FORM NO.2 RISK WEIGHTED EXPOSURE FOR CREDIT RISK

A. Balance Sheet Exposures
" Book Value
" Specific
" Eligible CRM
" Net Value
" Risk Weighted
Previous
a" Provision c" d=a-b-c " Risk Weight
b"
Claims on Domestic Corporates 56,145,908 - 383,282
Claims on Foreign Corporates (ECA 0-1) - - -
Claims on Foreign Corporates (ECA 2) - - -
Claims on Foreign Corporates (ECA 3-6) - - -
Claims on Foreign Corporates (ECA 7) - - -
Regulatory Retail Portfolio (Not Overdue) 3,232,125 - 847,788
Claims fulfilling all criterion of regulatory retail except granularity - - -
Claims secured by residental properties 1,428,098 - -
Claims not fully secured by residental properties 264,373 - 19,769
Claims secured by residental properties (Overdue) 29,540 5,077 -
Claims secured by Commercial Real Estate 2,256,762 - -
Past due claims (except for claim secured by residental properties) 945,313 746,260 -
High Risk Claims 2,665,491 - 91,409
Investment in equity and other capital instruments of institutions listed 367,911 - -
Investment in equity and other capital instruments of institutions not 169,394 134,789 -
listed in the Stock exchange
Staff Loan Secured by residential property 130,188 - -
Interest receivable/Claim on government securities 42,201 - -
Cash in Transit & other cash items in the process of Collection 49 - -
Other Assets (as per attachment) 8,502,557 6,345,105 -
Total 112,161,508 7,231,230 1,342,249
in the Stock exchange

" Risk Weight Exposures " Net Value " Year RWE
f=d*e "
55,762,626 100% 55,762,626 40,847,377 40,847,377
- 20% - - -
- 50% - - -
- 100% - - -
- 150% - - -
2,384,337 75% 1,788,253 1,939,131 1,454,348
- 100% - - -
1,428,098 60% 856,859 1,578,832 947,299
244,604 150% 366,906 - -
24,463 100% 24,463 77,571 77,571
2,256,762 100% 2,256,762 1,798,942 1,798,942
199,053 150% 298,580 815,890 1,223,835
2,574,081 150% 3,861,122 3,147,157 4,720,735
367,911 100% 367,911 177,975 177,975
34,605 150% 51,907 34,371 51,557
130,188 60% 78,113 120,595 72,357

42,201 0% - 16,450 -
49 20% 10 - -
2,157,452 100% 2,157,452 1,594,414 1,594,414
103,588,029 72,013,207 84,975,479 57,085,756
contd.....
Current Year
B. Off Balance Sheet Exposures " Book Value " Specific " Eligible CRM
a" Provision c"
b"
Revocable Commitments - - -
Bills Under Collection 236,262 - -
Forward Exchange Contract Liabilities 4,288,505 - -
LC Commitments With Original Maturity Up to 6 months - - -
domestic counterparty 8,282,228 -705,732
foreign counterparty (ECA Rating 0-1) - - -
foreign counterparty (ECA Rating 2) - - -
L C Commitments With Original Maturity Over 6 months - - -
domestic counterparty 7,048,399 -167,670
Bid Bond, Performance Bond and Counter guarantee - - -
domestic counterparty 12,050,467 - 3,736,801

Underwriting commitments - - -
Lending of Bank's Securities or Posting of Securities as collateral - - -
Repurchase Agreements, Assets sale with recourse - - -
Advance Payment Guarantee 3,122,095 - 54,813
Financial Guarantee - - -
Acceptances and Endorsements 3,983,052 - 199,153
Unpaid portion of Partly paid shares and Securities - - -
Irrevocable Credit Commitments (short term) 5,741,586 - -
Irrevocable Credit Commitments (long term) - - -
Other Contingent Liabilities 30,612 - -
Unpaid Guarantee Claims - - -
Total 44,783,207 - 4,864,168
Total RWE for Credit Risk Before Adjustment (A)+(B) 156,944,714 7,231,230 6,206,417
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) 156,944,714 7,231,230 6,206,417
" Net Value " Risk Weighted
" Net Value d=a- Risk Weight " Risk Weighted d=a-b-c " Exposures f=d*e "
b-c " Exposures f=d*e "
- 0% - - -
236,262 0% - 171,002 -
4,288,505 10% 428,851 49,341 4,934
7,576,496 20% 1,515,299 7,119,980 1,423,996

- 20% - - -
- 50% - - -
- 100% - - -
- 150% - - -
6,880,729 50% 3,440,365 4,793,653 2,396,826

- 20% - - -
- 50% - - -
- 100% - - -
- 150% - - -
- -
8,313,667 50% 4,156,833 7,316,076 3,658,038

- 20% - - -
- 50% - - -
- 100% - - -
- 150% - - -
- 50% - - -
- 100% - - -
- 100% - - -
3,067,282 100% 3,067,282 1,732,956 1,732,956
- 100% - - -
3,783,899 100% 3,783,899 4,380,481 4,380,481
- 100% - - -
5,741,586 20% 1,148,317 5,127,618 1,025,524
- 50% - - -
30,612 100% 30,612 - -
- 200% - - -
39,919,038 17,571,459 30,691,107 14,622,755
143,507,067 89,584,665 115,666,586 71,708,512
- - - -
- - - -
143,507,067 89,584,665 115,666,586 71,708,512
FORM NO.3 ELIGIBLE CREDIT RISK MITIGANTS
Schedule 30 C
Rs. In '000
Deposits Deposits Govt.
G'tee of Govt. Sec/G'tee
G'tee of
G'tee of
Sec/G'tee of
Credit Exposures with Bank with other Gold & NRB of Nepal of Other domestic
MDBs Foreign Banks To
(a) banks/FI (c) Securities (e) Sovereigns banks (h) (i) Total
Balance Sheet Exposures

Cash Balance - - - - - - - -
Balance With Nepal Rastra Bank - - - - - - - -
Gold - - - - - - -- -
Investment in Nepalese Government Securities - - - - - - - -
All Claims on Nepal Rastra Bank - - - - - - - -
Claims on Foreign Government and Central Bank (ECA-7) - - - - - - - -
Claims on Public Sector Entity (ECA 7) - - - - - - - -
Claims on domestic banks that meet capital adequacy requirements - - - - - - -
Claims on foreign bank (ECA Rating 2) - - - - - - - -
Claims on foreign bank (ECA Rating 3-6) - - - - - - - -
Claims on foreign bank (ECA Rating 7) - - - - - - - -
claims on foreign bank incorporated in SAARC region operating with a buffer
of 1% above their respective regulatory capital requirement
- - - - - - - - - - -
Claims on Domestic Corporates 18,693 - - - 364,589 - - -
Claims on Foreign Corporates (ECA 2) - - - - - - - -
Claims on Foreign Corporates (ECA 3-6) - - - - - - - -
Claims on Foreign Corporates (ECA 7) - - - - - - - -
Regulatory Retail Portfolio (Not Overdue) - - - - -
69,695 - 778,093
Claims fulfilling all criterion of regulatory retail except granularity - - -

Claims secured by residential properties - - -
contd.....
Deposits Deposits Govt.
G'tee of Govt. Sec/G'tee
G'tee of
G'tee of
Sec/G'tee of
Credit Exposures with Bank with other Gold & NRB of Nepal of Other domestic
MDBs Foreign Banks To
(a) banks/FI (c) Securities (e) Sovereigns banks (h) (i) Total
(b) (d) (f) (g)
Claims not fully secured by residential properties 19,769 - - - - - - -

Claims secured by Commercial real estate - - - - - - - - -
Investments in equity and other capital insturments of institutions listed in the stock exchange
Investments in equity and other capital insturments of institutions not listed in the stock exchange
Other Assets (as per attachment) - - - - - - - - -
Off Balance Sheet Exposures - - - - - - - - -
domestic counterparty 705,732 - - - - - - - -
foreign counterparty (ECA Rating 2) - - - - - - - - -
foreign counterparty (ECA Rating 3-6) - - - - - - - - -
domestic counterparty 167,670 - - - - - - - -
domestic counterparty 89,977 - - - - - - - 5,42
Underwriting commitments - - - - - - - - -
Other Contingent Liabilities - - - - - - - - -
The total amount of Eligible CRM shall be adjusted for the supervisory haircuts and floors. In this regard banks should disclose the total value of eligible collateral in the respective column of type of CRM and while
of Nepal of Other domestic
MDBs Foreign Banks Total Previous Period
Total
- - - - - - - -
- - - - - - - -
- - - -- - - - -
- - - - - - - - All Claims on Government of Nepal
- - - - - - - - Claims on Foreign Government and Central Bank (ECA rating 0-1)
- - - - - - - - - Claims on Other Multilateral Development Banks
- - - - - - - -
- - - - - - - - - Claims on domestic banks that do not meet capital adequacy requirements
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - -
- 364,589 - - - - 383,282 540,094 Claims on Foreign Corporates (ECA 0-1)
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - 847,788 1,046,724
- - - - - - - -
- - - - - - - -
of Nepal of Other domestic

MDBs Foreign Banks Total Previous Period
Total
- - - - - - - 19,769 - Claims secured by residential properties (Overdue) -

- - - - - - - - Past due claims (except for claim secured by residental properties) - -
- - - - - - - -
- - - - - - - Forware Exchange Contract Liabilities - -
- - - - - 705,732 765,754 foreign counterparty (ECA Rating 0-1) - -
- - - - - - - -
- - - - - - - -
- - - - - - - LC Commitments With Original Maturity Over 6 months - -
- - - - - 167,670 98,325 foreign counterparty (ECA Rating 0-1) - -
- - - - - - - -
- - - - - - - -
- - - - - - - Bid Bond, Performance Bond and Counter guarantee - -
- - - - 5,427,973 3,736,801 2,225,551 foreign counterparty (ECA Rating 0-1) - -
- - - - - - - -
- - - - - - - -
- - - - - - - -
- - - - - - - Lending of Bank's Securities or Posting of Securities as Collateral - -
- - - - - - -
e the total value of eligible collateral in the respective column of type of CRM and while summing up the total value necessary adjustments have to be made.
pal - - - - - - - - - - - Investm
Central Bank (ECA rating 0-1) - - - - - - - - - - - Clai
evelopment Banks - - - - - - - - - - - Cl
at do not meet capital adequacy requirements - - - - - - - - - -
(ECA 0-1) - - - - - - - - - - -
roperties (Overdue) - - - - - - - - - - -
esidental properties) - - - - - - - - - - - High Risk claims
- - - - - - - - - - - LC Commitments With Original Ma

- - - - - - - - - - -
onths - - - - - - - - - - -
- - - - - - - - - - -
tee - - - - - - - - -
) - - - - - - - - - - -
es as Collateral - - - - - - - - - - - Repurchase Agreements, Asse

- - - Investment in Nepal Rastra Bank securities - - - - - -
- - - Claims on Foreign Government and Central Bank (ECA-2) - - - - - -
- - - Claims on Public Sector Entity (ECA 0-1) - - - - - -
- - - Claims on foreign bank (ECA Rating 0-1) - - - - - -
- - -
- -
- - High Risk claims - - 53,422 37,987 - - - - -
- LC Commitments With Original Maturity Up to 6 months - - - - - - - - -
- -
- Repurchase Agreements, Assets sale with recourse - - - - - - - - -

- - - - - - -
- - - - - - - - Claims on Foreign Government and Central Bank (ECA-3) -
- - - - - - - - Claims on Public Sector Entity (ECA 2) -
- - - - - - - -
- - - 91,409 -
- - - - -
- - - - - Advance Payment Guarantee 54,813 - - - -

l Bank (ECA-3) - - - - - - - - - - - Claims on F
- - - - - - - - - - Claims on Public
- - - - - - - - 54,813 44,734 Financial Guarantee

- - Claims on Foreign Government and Central Bank (ECA-4-6) - - - - - -
- - Claims on Public Sector Entity (ECA 3-6) - - - - - - -
e - - - - - - - - - - - Acceptan
- - - - - - -
- - - - - - -
- - - Acceptances and Endorsements 199,153 - - - - - -

- - - - 199,153 230,552 Unpaid portion of Partly paid shares and Securities - -
- - - - - - - - - - - Irrevocable Credit commitments
- Irrevocable Credit commitments - - - - - - - - -
- - - -
Risk Weight Exposure for Operational Risk
Schedule 30 D
Rs. In '000
(F/Y 068/69) (F/Y 069/70) (F/Y 70/71) Previous
Particulars
2011/12 2012/13 2013/14

Net Interest Income 2,168,230 3,091,052 2,995,804
Commission and Discount Income 319,667 348,701 478,608
Other Operating Income 157,780 199,417 211,346
Exchange Fluctuation Income 264,167 360,245 460,227
Additional Interest Suspense during the period 136,586 (31,159) (6,498)
Gross Income (a) 3,046,429 3,968,256 4,139,487
Alfa (b) 15% 15% 15%
Fixed Percentage of Gross Income (c) =(a)*(b) 456,964 595,238 620,923
Capital Requirement for operational risk (d) (average of c) 557,709
Risk Weight (reciprocal of capital requirement of 10%) in times (e) 10
Equivalent Risk Weight Exposure (f)=(d)*(e) 5,577,086
Pillar -II ADJUSTMENTS
Capital Requirement for operational Risk (2% of f) (g) -

Equivalent Risk Weight Exposures (h=f+g) 5,577,086
Period
492,989
10
4,929,887
-
4,929,887
Market Risk
As at July 16, 2015 Schedule 30 E
Current Period Previous Period

S.No. Currency Open Position (FCY) Open Position (NPR) Relevant Open Position (NPR) Relevant Open Position (NPR)
1 AED 56,160 1,486,555 1,486,555
2 AUD 40,105 2,969,795 2,969,795
3 BHD 0 - -
4 CAD (6,903) (538,182) 538,182
5 CHF 23,531 2,481,780 2,481,780
6 CNY 255,882 4,073,641 4,073,641
7 DKK 110,966 1,630,092 1,630,092
8 EUR 45,859 5,055,455 5,055,455
9 GBP 20,212 3,187,560 3,187,560
10 HKD 12,170 157,967 157,967
11 INR 458,271,915 733,235,064 733,235,064
12 JPY 1,520,168 1,237,417 1,237,417
13 KRW 382,000 33,692 33,692
14 KWD 0 - -
15 MYR 55,558 1,420,618 1,420,618
16 QAR 3,243 86,556 86,556
17 SAR 159,910 4,258,403 4,258,403
18 SEK 197,546 2,327,086 2,327,086
19 SGD 15,929 1,174,762 1,174,762
20 THB 1,850,010 5,457,530 5,457,530
21 USD 888,579 89,968,660 89,968,660
Total Open Position (a) 860,780,815
Fixed Percentage (b) 5.00%
Capital Charge for Market Risk [c=(axb)] 43,039,041
10
Equivalent Risk Weight Exposure [e=(cxd)] 430,390,408
Equivalent Risk Weight Exposure in '000 430,390
Previous Period
Relevant Open Position (NPR)
341,453
1,604,209
0
726,145
2,129,285
1,396,459
890,375
3,466,586
4,711,443
344,735
1,458,123,330
4,357,076
85,933
-
236,316
39,048
802,954
524,855
2,637,132
2,054,468
107,868,193
1,592,339,993
5.00%
79,617,000
10
796,169,997
796,170
5 Years Principal Indicators Schedule 31
F/Y F/Y F/Y F/Y

Particulars Indicators 2010/2011 2011/2012 2012/2013 2013/2014
(F/Y 067/68) (F/Y 068/69) (F/Y 069/70) (F/Y 070/71)
1. Percent of Net Profit/ Gross Income Percent 18.2 15.5 28.3 27.8
2. Earning Per Share Rs. 39.1 27.6 46.2 40.7
3. Market Value Per Share Rs. 515 511 784 960
4. Price Earning Ratio Ratio 13.2 18.5 17.0 23.6
5. Dividend (including bonus) on share capital Percent 50.0 30.0 35.0 40.0
6. Cash Dividend on Share Capital Percent 25.0 5.0 25.0 25.0
7. Interest Income/ Loan & Advances Percent 13.0 13.5 12.3 10.8
8. Staff Expenses/ Total operating Expenses Percent 41.7 42.0 44.8 44.8
9. Interest Expenses on Total Deposit and
Borrowings Percent 7.2 7.0 4.8 4.0
10.Exchange Gain/ Total Income Percent 3.5 3.9 5.3 6.6

11.Staff Bonus/ Total Staff Expenses Percent 51.4 43.8 72.1 63.2
12.Net Profit/Loan and Advances (Gross) Percent 2.9 2.4 4.0 3.6
13.Net Profit/Total Assets Ratio 2.0 1.6 2.6 2.3
14.Total Credit/Deposit Percent 81.7 75.3 76.4 72.4
15.Total Operating Expenses**/ Total Assets Percent 1.34 1.23 1.22 1.13
16.Adequacy of Capital Fund on Risk Weighted
Assets
a. Core Capital Percent 8.77 9.34 10.01 9.52
b. Supplementary Capital Percent 2.14 1.76 1.97 1.75
c. Total Capital Fund Percent 10.91 11.10 11.49 11.27
17.Liquidity (CRR) Percent 7.7 13.6 16.0 19.2
18.Non-performing credit/ Total credit Ratio 0.94 3.32 1.91 1.77
19. Base Rate Percent - - - 6.94
20.Weighted Average Interest Rate Spread Percent 4.1 4.5 5.5 4.8
21.Book Net-worth Rs. in '000 5,159,760 6,049,941 7,020,644 7,925,479
22.Total Shares (incl. proposed bonus shares) No. 30,113,721 37,661,553 41,448,085 47,687,136
23.Total Staffs No. 877 883 910 942
24.Book Value Per Share Rs. 171 161 169 166
25. CD Ratio (LCY Deposit with Equity) Percent 81.2 71.8 74.8 71.9
26. Return on Paid-Up Capital (opening) Percent 39.1 34.5 50.8 46.8
27. Return on Shareholders' Fund (Opening) Percent 25.7 20.1 31.7 27.6
28. Market Capitalization (in Billion) Rs. 15.5 19.2 32.5 45.8
29. Total number of Branches No. 41 41 44 44
30. Total number of ATMs No. 67 68 73 80
** Total Operating Expenses = Staff Expenses+ Office Operating Expenses
Schedule 32
PRINCIPAL ACCOUNTING POLICIES

1. GENERAL INFORMATION
a. Nepal Investment Bank Ltd. (NIBL), previously Nepal Indosuez Bank Ltd., was established in 1986 as a joint ventu
b. NIBL is a “A” class licensed institution licensed under the Bank and Financial Institution Act, 2006. The registered offic
c. Its ordinary shares are listed in the Nepal Stock Exchange for public trading.
2. BASIS OF PREPARATION OF FINANCIAL STATEMENTS
a. The financial statements have been prepared in conformity with generally accepted accounting principles, Nepal Ac
b. The financial statements are prepared on historical
cost convention except where otherwise stated.
c. The bank follows accrual system of accounting for the preparation of financial statements except where otherwise stated
d. All the formats of the financial statements are in accordance with the directives of Nepal Rastra Bank.
3. INTEREST AND COMMISSION INCOME
a. Interest on loans and advances are recognized on cash basis as per Nepal Rastra Bank’s (NRB) directives. Interest ac
b. Commission exceeding NPR 100,000 earned on guarantees covering more than a year is accounted for on accrual b
4. FOREIGN CURRENCY TRANSACTIONS
a. Foreign currency assets and liabilities held at Balance Sheet date have been translated at buying rate of exchange o
b. Gain or loss arising from difference in buying and selling rates on foreign currency transactions are recorded as “Trading Gai
c. Gain or loss arising from the fluctuation of foreign currencies is recorded as “Revaluation Gain or Loss” as and when suc
5. LOAN LOSS PROVISION & BAD DEBTS WRITTEN OFF
a. Provision for loan losses has been made in accordance with Nepal Rastra Bank’s directives.
b. Loan & advances have been presented in the
Balance Sheet at net of provision.
c. While writing off of Bad Debts, the amount written off is charged to Profit & Loss account and the corresponding p
Bad debts are written off according to the provision made under Loans Write Off bylaws of the Bank, which has been duly
The Bank has taken a policy of settlement of the bad loan by waiver of reasonable amount of interest. Case to case basis
6. DEPRECIATION
Fixed Assets are depreciated over estimated life of assets on straight-line basis from the following month of the purchase d
7. EXPENSES NOT WRITTEN OFF
Cost of computer software are classified under “Expenses Not Written off” as disclosed in Schedule 16 and relates to co
8. NON CAPITALIZED ITEMS
Capital items of value below Rs.10,000 are expensed off in the year of purchase itself.
9. NON BANKING ASSETS
a. Non Banking Assets are valued at amount equivalent to the outstanding amount of principal and interest due at th
b. Where the amount realized upon disposal of the acquired assets vary at a future date, the difference will be adjusted to
10. INVESTMENT
a. Investments on securities listed in the Stock Exchange are valued at the lower of cost or market price.
b. Investments on securities, which are not listed in the Stock Exchange, are valued at cost and Investment Adjustme
c. Investments held by the bank are classified in three categories as required by NRB Directives as a) Held till Maturity (HT
d. Investment Adjustment Reserve is created at the rate of 2% as per Nepal Rastra Bank’s directives on investment amount i
11. RETIREMENT BENEFITS & LEAVE ENCASHMENT
Gratuity is booked as expense every month and the amount is contributed to NIBL Retirement Fund. Leave encashment i
12. INCOME TAX
Provision for Income Tax is made on the taxable income of the Bank at the rate applicable for that year in accordance with
13. CONTINGENT LIABILITY
Any liability of contingent nature, if material, is disclosed in separate schedule, forming the part of Balance Sheet.
F/Y
2014/2015
(F/Y 071/72)
28.1
30.9
704
22.8
34.7
1.7
9.0
45.6
3.4
6.6
58.7
2.9
1.9
74.7
1.01
9.54
2.36
11.90
12.0
1.25
6.54
4.6
9,806,953
63,457,007
969
155
72.8
41.1
24.8
44.7
46
82
in 1986 as a joint venture public limited company between Nepali and French partners as per the then Companies Act 1964. Th
2006. The registered office of the Bank is located at Durbar Marg, Kathmandu.
unting principles, Nepal Accounting Standards, Company Act 2006, Bank & Financial Institution Act, 2006 and Nepal Rastra Bank Dire
ept where otherwise stated.
RB) directives. Interest accrued but not realized is transferred to interest suspense account. (Refer NOTES TO ACCOUNT # 9)
accounted for on accrual basis over the period of the guarantee.
buying rate of exchange on that date.

e recorded as “Trading Gain or Loss”.
or Loss” as and when such fluctuation takes place. Out of total Revaluation Gain if any, 25% is transferred to Exchange Fluctuation F
and the corresponding provision is shown as provision written back in Profit & Loss account as per NRB directives.
Bank, which has been duly approved by Nepal Rastra Bank.
nterest. Case to case basis settlement is made based on the justification of each case.
ng month of the purchase date. Maintenance and repairs expenses are charged to profit and loss account as incurred.
hedule 16 and relates to cost of computer software which are being amortized over a period of five years from the date of acquisition.
ncipal and interest due at the time of acquisition. Where the total outstanding amount of principal and interest in the year of acquisition of as
ference will be adjusted to the Profit & Loss Account in the year of disposal.
and Investment Adjustment Reserve is created as per NRB Directives.

as a) Held till Maturity (HTM), b) Held for Trading (HFT) and c) Available for Sale (AFS).
on investment amount in shares of companies which are categorized under ‘Available for sale’. No reserve is created where the inv
und. Leave encashment is recognized as expense on cash basis at the time of staff retirement.
hat year in accordance with the Income Tax Act. Any excess or shortfall in tax provision is adjusted to the profit and loss account in the year
of Balance Sheet.
Companies Act 1964. The French partner (holding 50% of the capital) was Credit Agricole Indosuez, a subsidiary of one of
nd Nepal Rastra Bank Directives.

S TO ACCOUNT # 9)
to Exchange Fluctuation Fund at the end of the year as per NRB directives.
e date of acquisition.
he year of acquisition of asset exceeds the market value of such assets, the assets are valued at the market price of assets and the differe
is created where the investment is permitted by Nepal Rastra Bank.
nd loss account in the year, when tax assessment is completed. Further, deferred tax assets/liability has been calculated in accordance wi
a subsidiary of one of the largest banking groups in the world. When Credit Agricole Indosuez decided to divest, a group of compa
price of assets and the difference amount is charged to profit and loss account in the year of acquisition.
en calculated in accordance with the provisions of Nepal Accounting Standard.

ded to divest, a group of companies comprising of bankers, professionals, industrialist and businessmen acquired 50% of the holdings o
uired 50% of the holdings of Credit Agricole Indosuez in Nepal Indosuez Bank in April 2002. The name of the Bank was then ch
ame of the Bank was then changed to Nepal Investment Bank Ltd. upon approval from the Bank’s Annual General Meeting, Nepal Rastr
General Meeting, Nepal Rastra Bank and Company Registrar’s Office.
Schedule 33
NOTES TO ACCOUNTS
1. CHANGES IN PAID-UP CAPITAL
During the year, the bank issued 6,244,960 number of shares (each share of NPR 100), which includes 6,220,061.25
Amount in NPR
Opening Paid up Capital as at 1-4-2071: 4,146,707,500
Add: Bonus shares issued 622,006,125
Add: Fraction shares issued 2,489,875
Closing Paid up Capital as at 31-03-2072 4,771,203,500
2. GENERAL RESERVE
As required by Section 44 of Banks & Financial Institutions Act, 2063 which mandates banks to transfer 20% of their net profit t
Amount in NPR
Opening Reserve as at 1-4-2071: 2,303,281,514
Add: transfer from P&L appropriation a/c 392,370,476
Closing Reserve as at 31-03-2072 2,695,651,990
3. INVESTMENT ADJUSTMENT RESERVE
The Bank has created additional investment adjustment reserve of NPR 29,497,129 during the year
on its equity investment as required by NRB Directives:
Investments (Available for Sale) Cost Provision Net Investment Required Reserve
Exempted Investments 4,111,100 0 4,111,100 0
Listed Investments 366,411,360 0 366,411,360 7,328,228
Unlisted Investments 162,048,600 0 162,048,600 162,048,600
Total Required Reserve (A) 532,571,060 0 532,571,060 169,376,828
Actual Balance (B) 139,879,699
Surplus/(Deficit) (B-A) (29,497,129)
Exempted Investments comprise of equity investment in Nepal Clearing House Ltd. and Karja Suchana Ltd. for which investment
adjustment reserve is not required to be maintained as per NRB Directives.
4. EXCHANGE FLUCTUATION RESERVE
During the year, there is a gain on revaluation of foreign currency accounts amounting to NPR 39,173,765. Hence, an amount o
5. STAFF PROVIDENT FUND & GRATUITY
Staff Provident Fund contribution has been transferred to NIBL Retirement Fund (approved by Income Tax Authority) as provid
Gratuity liability of NPR 5,181,681 shown in balance sheet Schedule 7 refers to gratuity payable as at 15.07.2004 and reduced
h includes 6,220,061.25 number of bonus shares and 24,898.75 number of fraction shares, making the total paid-up capital to NPR 4,771,2
r 20% of their net profit to general reserve, the bank has transferred NPR 392,370,476 to General Reserve from the net profit of current yea
765. Hence, an amount of NPR.9,793,442 equivalent to 25% of such gain has been transferred to Exchange Fluctuation Reserve as require
Tax Authority) as provided by Income Tax Act 2058.

15.07.2004 and reduced by subsequent payments thereafter. No any payments have been made during the year.
aid-up capital to NPR 4,771,203,500. The amount for fraction shares was adjusted from cash dividend.
m the net profit of current year.
Fluctuation Reserve as required by NRB Directives.

Staff Gratuity expenses (contribution) for fiscal years subsequent to FY 2003-04 has been
transferred to NIBL Retirement Fund as provided by Income Tax Act 2058.
6. INCOME-TAX LIABILITY & DEFERRED TAX
Income tax provision amounting to NPR 845,849,310 made for the current F.Y. 2071-72 (FY 2014/2015) is subject to tax audit.
Tax assessment by Large Tax Office has been completed till FY 2066-67. Assessment for FY 2067-68 is under process. Appea
Deferred tax liability of NPR 12,390,269 for deductible temporary differences up to F.Y. 2071/72, has been shown under other l
Deferred tax asset: NPR
Gratuity Fund 5,181,681
Provision for Non-banking Asset 3,925,677
Total Deferred Asset: 9,107,358
Deferred tax liability:
Asset base as per Income Tax provisions: 637,765,090
Asset base as per Company Accounts: 688,173,343
Total Deferred Liability: 50,408,253
Net Deferred Liability due to net timing difference: 41,300,895
Deferred Tax Liability to be booked @ 30%: 12,390,269
Deferred Tax Liability already booked: 13,181,121
Excess/ (Short): 790,852
The excess liability amount of NPR 790,852 has been reversed by crediting to the Profit & Loss Account.
7. CHANGES IN DEPOSIT LIABILITIES
The total deposit of the bank has increased by NPR 16,800.11 million to reach NPR 90,631.49
million, from the previous year’s balance of NPR 73,831.38 million as following:
NPR in Million
FY Increase/ (Decrease)
FY
Particulars 2013/2014 2014/2015

Percentage
(2070/71) (2071/72)
Current Deposits 10,323.91 11,742.72 13.74%
Margin Deposits 1,133.75 1,217.35 7.37%
Saving Deposits 25,015.42 31,733.32 26.86%
Fixed Deposits 18,019.37 21,229.16 17.81%
Call Deposits 19,338.93 24,708.94 27.77%
Total Deposits 73,831.38 90,631.49 22.75%
15) is subject to tax audit.
8 is under process. Appeals filed by the bank against the assessment orders from FY 2063- 64 to FY 66-67 are under process of hearing a
been shown under other liabilities in the Balance Sheet. The figure has been arrived at by applying the prevailing income tax rate to the Ne
are under process of hearing at relevant judicial/appellate authorities.
iling income tax rate to the Net Temporary Difference figure of NPR 41,300,895 which has been arrived at as follows:
8. LOANS DISBURSED, RECOVERY AND WRITTEN OFF
During the year, total loan amounting to NPR 87,382.54 million has been disbursed and NPR 73,150.81 million has been recov
9. INTEREST INCOME
a. Interest income from loans and advances is recognized in cash basis, except on project financing.
b. In case of project financing, interest amount during the construction period is capitalized as per NRB
directives. During the year, NPR 145.34 million has been capitalized with NRB’s approval.
c. Of the total interest receivable from loan and advances as at Ashad 32, 2072 amounting to NPR 309.37 million, NPR 297.66
10. TABLE OF LIQUIDITY DETAILS
NPR in '000
Assets 1-90 Days 91-180 Days 181-270 Days 271-365 Days Above one Year
Cash Balance 2,660,938 - - - -
Balance with Banks 11,654,110 - - - -
Foreign Banks Placement 7,640,325 1,518,750 - 405,000 151,875
Call Money - - - - -
Investment in Treasury Bills - 3,300,000 1,400,000 4,363,083 -
Investment in NRB Bonds - 40,000 - - -
Inter Bank Lending 506,250 - - - -
Loans & Advances 19,415,894 8,887,945 6,493,568 9,351,697 22,070,533
Interest Receivable 84,950 - - - -
Investment/ Deposit Collection 1,600,000 - - - 537,305
Others - - - - 2,263,508
Total Assets 43,562,467 13,746,695 7,893,568 14,119,780 25,022,926
Liabilities
Current Deposits 3,522,816 1,174,272 1,761,408 1,174,272 4,109,952
Saving Deposits 9,519,995 3,173,332 4,759,998 3,173,332 11,106,661
Fixed Deposits 2,251,836 7,103,544 3,971,147 7,257,713 644,922
Margin Deposit 1,217,345 - - - -
Call Deposits 7,412,683 2,470,894 3,706,341 2,470,894 8,648,130
Debentures - - - - 1,550,000
Inter Bank borrowing 263,116 - - - -
Re-Financing - - - - -
Other Liabilities 467,351 - - - 1,154,328
Sundry Creditiors 360,159 - - - -
Bills Payable 215 - - - -
Interest Payable 111,865 - - - -
Share Capital and Reserve - - - - 9,806,953
Total Liabilities 25,127,381 13,922,042 14,198,894 14,076,211 37,020,909
Net Financial Assets 18,435,086 (175,346) (6,305,326) 43,569 (11,997,983)
Cumulative Net Financial Assets 18,435,086 18,259,740 11,954,413 11,997,983 -
50.81 million has been recovered.
309.37 million, NPR 297.66 million has been transferred to Interest Suspense Account. Interest amounting to NPR 11.71 million, which wa
Total Amount
2,660,938
11,654,110
9,715,950
-
9,063,083
40,000
506,250
66,219,638
84,950
2,137,305
2,263,508
104,345,436
11,742,719
31,733,317
21,229,162
1,217,345
24,708,943
1,550,000
263,116
-
1,621,642
360,159
215
111,865
9,806,953
104,345,436
-
PR 11.71 million, which was receivable as at the year end but realized till Shrawan 15 2072, has been recognized as income of FY 2071-72
zed as income of FY 2071-72 as per the provisions of NRB Directive no. 4.
11. RECONCILIATION STATUS
The reconciliation status of various agency balances and inter-branch transactions as of balance sheet date is as follows:
In NPR ‘000
Particulars Up to 1 Year 1-3 Year More than 3 years
Agency balances 529,611 709,995 543
Inter-Branch - - -
The balances are duly settled in normal course of business.
12. WEIGHTED AVERAGE INTEREST RATE SPREAD
The weighted average interest rate spread for FY 2071-72 is as follows:
Interest Yield on Loans & Investments (LCY) 8.3%
Cost of Fund on Deposits and borrowing (LCY) 3.7%
Weighted average interest spread (LCY) 4.6%
13. NON BANKING ASSETS
The Bank has Non-banking assets of NPR 3,925,677 as at Ashad end 2072. As per NRB directives, 100%
provision has been made on the NBA. The details of NBA is given in Schedule 15.
14. EXPENSES NOT WRITTEN OFF
Cost of computer software classified under “Expenses Not Written off” disclosed in Schedule 16 (11) relates to cost of compute
15. PROVISION FOR LOAN LOSS & LOSS PROVISION WRITTEN BACK
During the year NPR 569,966,232 as shown in Schedule 25 (1), has been charged to Profit and Loss account
for loan loss provision as per Nepal Rastra Bank directives.
Loan Provision amounting to NPR 537,704,153 has been written back during the year and the amount is shown in Schedule 27
16. DIVIDEND INCOME
During the year, NPR 12,496,329 was received as net dividend income from various companies as detailed
below:
Swabalamban Bikash bank 3,575,214
RMDC 6,762,000
CIC 798,133
Nabil Mutual Fund 1,360,985
Total 12,496,329
17. PROVISION FOR OTHER ASSETS

None.
e sheet date is as follows:
Total
1,240,150
-
(11) relates to cost of computer software which are being amortized over a period of five years from the date of acquisition. During the year
Loss account
mount is shown in Schedule 27(1).
as detailed
ate of acquisition. During the year, NPR 11,088,691 has been amortized by charging to Profit and Loss account.
18. DEBENTURES
The Bank has issued various amounts of debentures in various fiscal years to supplement its Tier II Capital. The details of Deb
Date of Issue Rate of Interest Amount in NPR Balance in Debenture
Redemption Fund
29-Mar-2068 12% 300,000,000 214,285,715
06-Apr-2070 8% 500,000,000 142,857,142
11-Apr-2071 8% 750,000,000 107,142,857
Total 1,550,000,000 464,285,714
Debenture Redemption Fund has been created every year by dividing the debenture amount by number of debenture year peri
During the year, 8.0% NIBL Debenture 2072 worth NPR 250 million was matured on 24-03-2072. Consequently, NPR 250 millio
The Bank had issued 8% NIBL Bond 2078 worth NPR 750 million during the month of Ashad 2071. The said
debentures were allotted in current fiscal year on Shrawan 11, 2071
19. INVESTMENT IN GOVERNMENT BONDS & TRESURY BILLS
a. Investments in Government bonds at premium are shown under investments at face value. The premium paid on such bonds
b. Investments in treasury bills at discount are shown at cost under investment. The amount of discount is booked as unearned
20. STAFF BONUS
Expense on staff bonus is recognized at ten percent of net profit before income tax and after bonus provision.
21. INVESTMENT IN SUBSIDIARY & OTHER COMPANIES
NIBL has incorporated a merchant banking subsidiary company named “NIBL Capital Markets Limited” with Authorized capital o
Further to above, NIBL has made equity investment of NPR 8.28 million in Flexiterm Pvt. Ltd. and NPR 25.00 million in M Nepa
22. RELATED PARTY DISCLOSURES
a. NIBL Capital Markets Ltd. (a subsidiary of NIBL) held deposits of NPR 0.82 million in various accounts in the Bank as at Ash
b. A staff from the Bank has been deputed as CEO of NIBL Capital Markets Ltd. During the year, total allowance of NPR 1.20 m
c. The Bank has entered into a Service Level Agreement (SLA) with the company for the provision of management s
d. The Bank has appointed NIBL Capital markets Ltd. as its Share Registrar for which the Bank pays a fee of
NPR 500,000 per annum to the latter. A staff from the bank has been deputed to the company for assisting in share registrar
e. The Bank has invested NPR 140 Million in NIBL Mutual Fund- NIBL Samriddhi Fund -1 as Seed Capital.
f. The Bank received underwriting commission of NPR 1.41 million for underwriting the share issues managed by the subsidiar
g. All transaction between the Bank and NIBL Capital Markets Ltd. are on an arm’s length basis.
h. During the year, NIBL made additional equity investments of NPR 4,228,400 in Flexiterm Pvt. Ltd.
23. PROPOSED DIVIDEND
The Board of Directors has proposed 1.74% cash dividend (NPR 82,868,272 ) and 33% stock dividend (NPR 1,574,497,155 ) o
24. REGROUPING
Previous Years’ figures have been regrouped or rearranged, wherever necessary.
25. ROUNDING OFF
Figures have been rounded off to the nearest rupee.
s Tier II Capital. The details of Debenture outstanding as at the balance sheet date are as follows:
Maturity Date
28-Mar-2075
05-Apr-2077
10-Apr-2078
nt by number of debenture year period. During the year, NPR 254,166,714 has been transferred to Debenture Redemption Fund.
2072. Consequently, NPR 250 million outstanding in debenture redemption fund relating to the said debenture has been transferred to Prof
d 2071. The said
e. The premium paid on such bonds is booked as premium paid in advance and is amortized over the period of the bonds.
of discount is booked as unearned interest and is amortized over the period of the treasury bills.
r bonus provision.
ets Limited” with Authorized capital of NPR 500 million and Issued capital NPR 145 million. Of the total issued capital, NIBL has subscribed
d. and NPR 25.00 million in M Nepal Pvt. Ltd. for mobile banking businesses.
ous accounts in the Bank as at Ashad end 2072. The Bank paid NPR 0.19 million as interest on the said deposits during the year.
year, total allowance of NPR 1.20 million was paid by the Company.
or the provision of management services as well as other ancillary support. The Bank receives a fee of NPR 600,000 from the company fo
ank pays a fee of
pany for assisting in share registrar services. The salary cost of such staff is reimbursed by the company to the Bank.
s Seed Capital.
e issues managed by the subsidiary. Similarly, the Bank received collection and refund commission of NPR 4.15 million for acting as banke
ck dividend (NPR 1,574,497,155 ) on Bank’s paid up capital from the profits of the Bank, subject to approval from Nepal Rastra Bank and A
edemption Fund.
has been transferred to Profit & Loss Appropriation account for issuing bonus shares.
apital, NIBL has subscribed 70% (NPR 101.50 million) as its equity participation and the remaining 30% is set aside for public. The said com
ts during the year.
600,000 from the company for the SLA.
5 million for acting as banker to the issues managed by the subsidiary.
m Nepal Rastra Bank and Annual General Meeting.

t aside for public. The said company commenced its operation from 31/07/2012 (Shrawan 16, 2069). The scope of the said subsidiary is Me
ope of the said subsidiary is Merchant banking, Depository Participant, Mutual fund and Business advisory services. The company made a n
rvices. The company made a net profit of NPR 9.53 million in FY 2071-72.
Details of Promoters Shares Pledged by Promoter Shareholders of the Bank
As at July 16, 2015
Schedule 34
Promoters Share Owenership Loan Detail Total Numbers of Remarks
Pledge Shares
Total No. of Percentage of Name of the Banks &
S. No. Promoter's Name
Shares Total Paid up Financial Institutions Loan Amount
Captal
1 Prestine Investment Pvt.Ltd 782,645 1.64% Sanima Bank Ltd. 85,000,000
2 Lotus Investment Pvt.Ltd 690,964 1.45% Prime Bank Ltd. 120,000,000
3 Surya Infosys Pvt.Ltd. 782,645 1.64% Sanima Bank Ltd. 85,000,000
4 Mercantile Investment Pvt.Ltd. 301,931 0.63% Bank Of Kathmandu Ltd. 16,301,000
5 SHRESTHA BROTHERS 372,751 0.78% Prabhu Bank Ltd. 68,000,000
PANCHA KANYA INVESTMENT

6 372,751 0.78% Prabhu Bank Ltd. 68,000,000
P. LTD.
7 Pramod Prasad Shrestha 1,485 0.00% NIC Asia Bank Ltd. 1,800,000
Prudential Capital Management
8 Company 112,700 0.07% Prabhu Bank Ltd. 100,000,000
9 Life Care Distributors Pvt.Ltd. 61,771 0.10% Himalayan Bank Ltd. 7,500,000
10 United Distributor Nepal Pvt.Ltd. 74,750 0.16% Everest Bank Ltd. 235,000,000
11 Saloni Shrestha 1,870 0.00% Kumari Bank Ltd. 1,590,000
12 Sabal Bhakta Shrestha 1,870 0.00% Kumari Bank Ltd. 1,590,000
13 Kunchang Moktang Tamang 1,870 0.00% Kumari Bank Ltd. 1,590,000
14 Badri Bhakta Shrestha 1,870 0.00% Kumari Bank Ltd. 1,590,000
15 SOVITA KHATRI 863 0.00% NIC Asia Bank Ltd. 1,765,000
16 CHANDRA BIR SINGH TULADHAR 4,600 0.01% NIC Asia Bank Ltd. 9,000,000
ACE Development Bank
17 DIPESH KUMAR VAIDHYA 1,001 0.00% Ltd. 650,000
18 INDIRA ADHIKARI KANDEL 1,150 0.00% ICFC Finance Ltd. 149,115

19 BINOD KUMAR UPADHYA 460 0.00% NIC Asia Bank Ltd. 730,000
GANGA BAHADUR DHARTI
20 CHHETRI 3,850 0.01% Siddhartha Bank Ltd 1,471,000
21 SANDESH DHAKAL 2,400 0.01% Siddhartha Bank Ltd 4,250,000

22 SANJIB DHAKAL 2,400 0.01% Siddhartha Bank Ltd 4,250,000
23 LAXMI KHANAL 12,800 0.03% Siddhartha Bank Ltd 4,250,000
24 SHREE RAM DHAKAL 2,400 0.01% Siddhartha Bank Ltd 4,250,000
25 KALPANA PANDEY 2,420 0.01% International

8,900,000 2,420
International
26 BISHNU HARI BHANDARI 4,420 0.01% 8,900,000
Development bank
27 PRAKASH MAN SHRESTHA 575 0.00% Kumari Bank Ltd. 1,550,000

CAPTIVE INVESTMENT Kasthamandap
28 24,620 0.05% 1,200,000
COMPANY LIMITED Development Bank

INVESTMENT P. L.
Development bank
ders of the Bank
Total Numbers of Remarks

Pledge Shares
188,212
600,524
188,212
238,446
294,376
294,376
1,173
30,000
20,000
65,000
1,870
1,870
1,870
1,870
750
4,000
870
1,150
460
3,850
2,400
2,400
12,800
2,400
2,420
4,420
575
5,000
Comparision Of Unaudited & Audited Financial Statement
As at July 16, 2015
Schedule 35
Rs. In '000
S/N Particulars As per Unaudited
As per Audited F/S Variance Reasons for Variance
F/S
1 Total Capital and Liabilities (1.1 to 1.7) 105,820,393 105,816,403 3,990 0%
1.1 Paid Up Capital 4,771,204 6,345,701 (1,574,497) -33% Due to
1.2 Reserve and Surplus 5,121,009 3,461,252 1,659,757 32% Due to

and a
1.3 Debenture and Bond 1,550,000 1,550,000 - 0%
1.4 Borrowings 263,116 263,116 - 0%

1.5 Deposit (a+b) 90,631,487 90,631,487 - 0%
a. Domestic Currency 80,856,884 80,856,884 - 0%
b. Foreign Currency 9,774,603 9,774,603 - 0%
1.6 Income Tax Liability - - - 0%
Due to
1.7 Other Liabilities 3,483,577 3,564,847 (81,270) -2%in loan loss

bonus & tax
appropriation
2 Total Assets (2.1 to 2.7) 105,820,393 105,816,403 13,823,630 13%
2.1 Cash and Bank Balance 14,315,048 14,315,048 0 0%

2.2 Money at Call and Short Notice - - - 0%
2.3 Investments 21,462,588 21,462,588 - 0%
2.4 Loans and Advances (Gross) 67,690,199 67,690,199 - 0%
a. Real Estate Loan 4,549,507 4,961,595 (412,088) -9%
shares
proposed bonus
adjustments in P&L
ppropriation of profit.
adjustments made provision, provision and
of profit
1. Residential Real Estate Loan (Except Personal 437,454 542,695 (105,241) -24%
2. Business Compex & Residential Apartment 1,919,381 1,734,252 185,129 10%
Construction Loan
3. Income Generating Commercial Complex Loan 73,740 36,824 36,916 50%
4. Other Real Estate Loan (Including Land Purchase 2,118,932
2,647,824 (528,892) -25%
and Plotting)
b. Personal Home Loan of Rs. 80 Lakhs or Less 1,447,741 1,479,546 (31,805) -2%
c. Margin Type Loan 52,316 48,505 3,811 7%
d. Term Loan 15,558,548 9,124,992 6,433,556 41%
e. Overdraft Loan/ TR Loan / WC Loan 39,337,746 32,507,649 6,830,097 17%
f. Others 6,744,340 5,336,182 1,408,158 21%
2.5 Fixed Assets 1,054,132 1,054,132 - 0%
2.6 Non Banking Assets (Net) 3,926 - 3,926 0%
2.7 Other Assets 1,294,501 1,294,437 64 0%

Home Loan upto Rs. 80 Lakhs)
Due to change in net advance tax
contd.....
r Variance
Comparision Of Unaudited & Audited Financial Statement
As at July 16, 2015
contd.....
S/N Particulars As per Unaudited
As per Audited F/S Variance Reasons for Variance
F/S
3 Profit & Loss Account
3.1 Interest Income 5,786,160 5,786,160 -
3.2 Interest Expense (2,807,361) (2,807,361) -
A. Net Interest Income (3.1-3.2) 2,978,799 2,978,799 -
3.3 Fees, Commission and Discount 497,300 497,300 -
3.4 Other Operating Income 237,469 237,469 -
3.5 Foreign Exchange Gain/Loss (Net) 458,418 458,418 -
B. Total Operating Income (A.+3.3+3.4+3.5) 4,171,987 4,171,987 -
3.6 Staff Expenses (480,732) (480,139) (593)
3.7 Other Operating Expenses (572,108) (572,108) 0
C. Operating Profit Before Provision (B.-3.6-3.7) 3,119,147 3,119,740 (593)
3.8 Provision for Possible Losses (571,391) (573,892) 2,501
D. Operating Profit (C.-3.8) 2,547,756 2,545,848 1,908
3.9 Non Operating Income/Expenses (Net) 15,592 15,592 0

3.10 Write Back of Provision for Possible Loss 537,704 537,704 -
E. Profit from Regular Activities (D+3.9+3.10) 3,101,052 3,099,144 1,908
3.11 Extra-ordinary Income/Expenses (Net) - - -
F. Profit before Bonus and Taxes (E.+3.11) 3,101,052 3,099,144 1,908

3.12 Provision for Staff Bonus (281,914) (281,740) (173)
3.13 Provision for Tax (854,894) (855,551) 657
G. Net Profit/Loss (F.-3.12-3.13 1,964,244 1,961,852 2,392
finalization of accounts
finalization of accounts
Reasons for Variance
0%
0%
0%
0%
0%
0%
0%
0% Adjustment made during
0%
0%
0.4% Adjustment made during
0%
0%
0%
0.1%
-
0.1%
0.1% Due to change in profit
0.1% Due to change in profit
0.1%
Unaudited Financial Results (Quarterly)
as at Fourth Quarter (16/07/2015) of the FY 2014/15 (FY 2071-72)
Schedule 36
Rs. In '000
S/N Particulars This Quarter Ending Previous Quarter Ending Corresponding Quarter
1 Total Capital and Liabilities (1.1 to 1.7) 105,820,393 95,697,352

1.1 Paid Up Capital 4,771,204 4,771,204
1.2 Reserve and Surplus 5,121,009 4,684,688
1.3 Debenture and Bond 1,550,000 1,800,000
1.4 Borrowings 263,116 288,750
1.5 Deposit (a+b) 90,631,487 81,168,093
a. Domestic Currency 80,856,884 72,793,025
b. Foreign Currency 9,774,603 8,375,068
1.6 Income Tax Liability - (8,049)
1.7 Other Liabilities 3,483,577 2,992,666
2 Total Assets (2.1 to 2.7) 105,820,393 95,697,352
2.1 Cash and Bank Balance 14,315,048 9,987,330
2.2 Money at Call and Short Notice - 200,000
2.3 Investments 21,462,588 17,427,219
2.4 Loans and Advances (Gross) 67,690,199 66,149,034
a. Real Estate Loan 4,549,507 4,366,481
1. Residential Real Estate Loan (Except Personal Home Loan upto 437,454 603,823
Rs. 80 Lakhs)
2. Business Compex & Residential Apartment Construction Loan 1,919,381 1,557,778
3. Income Generating Commercial Complex Loan 73,740 78,219
4. Other Real Estate Loan (Including Land Purchase and Plotting) 2,118,932 2,126,661
b. Personal Home Loan of Rs. 80 Lakhs or Less 1,447,741 1,409,056
c. Margin Type Loan 52,316 117,044
d. Term Loan 15,558,548 13,239,712
e. Overdraft Loan/ TR Loan / WC Loan 39,337,746 40,009,199
f. Others 6,744,340 7,007,541
2.5 Fixed Assets (Net) 1,054,132 1,025,656
2.6 Non Banking Assets (Net) 3,926 3,926
2.7 Other Assets 1,294,501 904,187
contd.....
nding Corresponding Quarter
Previous Year (Audited)

87,612,632
4,768,714
3,156,765
1,050,000
424,340
73,831,376
65,521,816
8,309,560
-
4,381,438
87,612,632
16,744,711
232,375
15,383,529
53,458,470
4,961,595
542,695
1,734,252
36,824
2,647,824
1,479,546
48,505
9,124,992
32,507,649
5,336,182
1,058,313
-
735,234
Unaudited Financial Results (Quarterly)
as at Fourth Quarter (16/07/2015) of the FY 2014/15 (FY 2071-72)
contd.....
S/N Particulars This Quarter Ending Previous Quarter Ending Corresponding Quarter
3 Profit & Loss Account Up to This Quarter Up to This Quarter Up to Corresponding
3.1 Interest Income 5,786,160 4,224,024

3.2 Interest Expense (2,807,361) (2,021,713)
A. Net Interest Income (3.1-3.2) 2,978,799 2,202,311
3.3 Fees, Commission and Discount 497,300 377,744
3.4 Other Operating Income 237,469 167,544
3.5 Foreign Exchange Gain/Loss (Net) 458,418 322,060
B. Total Operating Income (A.+3.3+3.4+3.5) 4,171,987 3,069,660
3.6 Staff Expenses (480,732) (329,788)
3.7 Other Operating Expenses (572,108) (399,317)
C. Operating Profit Before Provision (B.-3.6-3.7) 3,119,147 2,340,554
3.8 Provision for Possible Losses (571,391) (506,123)
D. Operating Profit (C.-3.8) 2,547,756 1,834,431
3.9 Non Operating Income/Expenses (Net) 15,592 17,934
3.10 Write Back of Provision for Possible Loss 537,704 565,145
E. Profit from Regular Activities (D+3.9+3.10) 3,101,052 2,417,511
3.11 Extra-ordinary Income/Expenses (Net) - -
F. Profit before Bonus and Taxes (E.+3.11) 3,101,052 2,417,511
3.12 Provision for Staff Bonus (281,914) (219,774)
3.13 Provision for Tax (854,894) (669,814)
G. Net Profit/Loss (F.-3.12-3.13 1,964,244 1,527,923
At the End of This At the End of At the End of
Quarter Previous Quarter

4.1 Capital Fund to RWA 11.99% 11.88%
4.2 Non Performing Loan (NPL) to Total Loan 1.25% 1.28%
4.3 Total Loan Loss Provision to Total NPL 174.0% 162.7%
4.4 CD Ratio (As per NRB Directives) 72.76% 77.42%
4.5 Net Liquid Assets/Total Deposit 34.54% 30.25%
4.6 Base Rate 6.54% 6.16%
4.7 Average Yield LCY Lending & Investments (As per NRB Directives) 8.09% 8.17%
4.8 Cost of Funds LCY Deposits (As per NRB Directives) 3.63% 3.67%
4.9 Interest Spread LCY (As per NRB Directives) 4.46% 4.50%
4.10 Return on Equity (Closing Annualized) 19.86% 21.54%
4.11 Return on Assets (Closing Annualized) 1.86% 2.13%
4 Ratios Corresponding Quarter
Note:1) Previous quarters' figures have been regrouped and rearranged whereever necessary.
2) The above figures are subject to change as per the directions, if any, of Nepal Rastra Bank and/or Statutory Auditor.
uarter Ending Corresponding Quarter
rter Up to Corresponding
quarter Previous Quarter

5,816,279
(2,820,475)
2,995,804
478,608
211,346
460,227
4,145,985
(437,766)
(539,331)
3,168,889
(277,278)
2,891,610
11,841
139,148
3,042,600
527
3,043,127
(276,648)
(826,867)
1,939,612
At the End of At the End of

11.27%
1.77%
151.9%
71.86%
41.41%
6.94%
9.32%
3.91%
5.41%
20.24%
2.21%
orresponding Quarter
DISCLOSURE UNDER BASEL II
As at July 16, 2015
1. CAPITAL STRUCTURE & CAPITAL ADEQUACY

Core Capital (Tier I)
Paid up Equity Share Capital
Share Premium
Proposed Bonus Equity Shares
Statutory General Reserves
Retained Earnings upto Previous Year
Audited current year cumulative profit
Debenture Redemption Reserve
Less. Investment in equity of institutions with financial interests
Less. Investment in equity of institutions in excess of limits
Supplementary Capital (Tier 2)
Subordinated Term Debt
Less : 20% discount value to 5YTM Bond/ Debenture
General loan loss provision
Exchange Equalization Reserve
Investment Adjustment Reserve
Other Reserves
Total Capital Fund (Tier I and Tier II)
Information about Subordinated Term Debts

8% Debenture of Rs.1000 each issued on 21-07-2013(2070-04-06) and Maturing On 20-07-2020(2077-04-05)
Outstanding balance of Redemption Reserve 142,857,142
12% Debenture of Rs. 1000 each issued on 13-07-2011(29-03-2068) and Maturing on 12-07-2014(28-03-2075)
8 % Debentures of Rs. 1000 each issued on 09.07.2008 (2065-03-25) and maturing on 08.07.2015 (2072.03.24)
Outstanding balance of Redemption Reserve -
8% Debenture of Rs.1000 each issued on 27-07-2014(2071-04-11) and Maturing on 26-07-2021(2078-04-10)
Total 464,285,714
Deductions from Capital
20% Discount value to 5 YTM Debenture

Total Qualifying Capital
Tier 1 Capital to Total Risk Weighted Exposures
Tier 1 and Tier 2 Capital to Total Risk Weighted Exposures

Summary of the Banks internal approach to assess the adequacy of its capital to support current & future activities:
• Regular monitoring by the Internal Audit & Compliance Department
• Periodic supervision by the Top management
Features of Subordinated Term Debts (Debenture)
• Fixed Maturity period of 7 Years
• Interest payment half yearly
• At the time of liquidation rights of claim will be only after depositors
• Listed with Nepal Stock Exchange Ltd.
• Redeemable and non convertible
Amount in NPR.
9,425,242,853
4,771,203,500
11,849,422
1,574,497,155
2,695,651,990
-
50,043,672
464,285,714
(134,788,600)
-7,500,000
2,329,050,857
1,550,000,000
(180,000,000)
719,629,731
70,012,798
169,376,828
31,500
11,754,293,710
500,000,000
300,000,000
750,000,000
1,550,000,000
(180,000,000)
1,370,000,000
9.54%
11.90%
& future activities:
2. Risk Exposures
RISK WEIGHTED EXPOSURES Current Period
Risk Weighted Exposure for Credit Risk 89,584,665,354
Risk Weighted Exposure for Operational Risk 5,577,085,998
Risk Weighted Exposure for Market Risk 430,390,408
Add:2% of the total RWE As Per NRB Instruction 1,911,842,835
Add:3% Capital Charge For Operational Risk 1,241,846,138
Total Risk Weighted Exposures 98,745,830,733
Risk Weighted exposure under each of 11 categories of Credit Risk
Particulars Risk Weighted Exposure
a.Claims on government & central bank -
b.Claims on other official entities -
c.Claims on banks 3,419,654,579
d.Claims on corporate & securities firms 56,485,214,103
e.Claims on regulatory retail portfolio 1,788,252,784
f. Claims secured by residential properties 1,223,764,301
g.Claims secured by commercial real state 2,256,762,264
h.Past due claims 323,042,925
i.High risk claims 3,861,122,209
j.Other assets 2,655,393,576
k.Off balance sheet items 17,571,458,613
Total 89,584,665,354
Amount of NPA’s
Category Gross Provision
Substandard 68,586,064 17,146,516
Doubtful 82,712,506 41,356,253
Loss 692,834,137 692,834,137
Total 844,132,707 751,336,906
NPA Ratio:
Gross NPA to Gross Advances 1.25%
Net NPA to Net Advances 0.14%
Movement of NPA
Particulars Opening Balance Closing Balance
Non Performing Loan 947,121,461 844,132,707
1 Substandard 161,723,004 68,586,064
2 Doubtful 73,896,526 82,712,506
3 Loss 711,501,931 692,834,137
Current Period
89,584,665,354
5,577,085,998
430,390,408
1,911,842,835
1,241,846,138
98,745,830,733
Risk Weighted Exposure

-
-
3,419,654,579
56,485,214,103
1,788,252,784
1,223,764,301
2,256,762,264
323,042,925
3,861,122,209
2,655,393,576
17,571,458,613
89,584,665,354
Net
51,439,548
41,356,253
-
92,795,801
1.25%
0.14%
Movement
(102,988,754)
(93,136,940)
8,815,980
(18,667,793)
Write off of Loans & Interest Suspense:
Total Loan Write off
NPR.
Loan Amount Interest Suspense Provision write Back
Movement of Loan Loss Provision & Interest Suspense
Loan Loss Provision
1. Pass 649,823,610 620,761,874
2. Watchlist Loan - 98,867,853
3. Substandard 40,430,751 17,146,516
4. Doubtful 36,948,263 41,356,253
5. Loss 711,501,931 692,834,137
Total Loan Loss Provision 1,438,704,555 1,470,966,634
Interest Suspense:
Interest Suspense 295,297,022 297,663,730
Details of Additional Loan loss provision

Particulars Opening Balance Closing Balance Movement
Total Loan Loss Provision 1,438,704,555 1,470,966,634 32,262,079
Segregation of Investment Portfolio

Investment Held to Maturity Cost Price Rs. (A) Amount Impaired till Net
Previous Year Rs. (B)
Nepal Government Treasury Bills 9,063,082,816 9,063,082,816
Nepal Government Savings Bond 40,000,000 40,000,000
Nepal Government Other Securities - -
Nepal Rastra Bank Deposit Collection Instrument 1,600,000,000 1,600,000,000
Foreign Bonds - -
Local Licensed Institutions-Placement with Local Banks 506,250,000 506,250,000
Local Licensed Institutions' Shares -
Local Licensed Institutions' Debentures & Bond - -
Foreign Bank Placements 9,715,950,000 9,715,950,000
Other Investment 4,733,868 4,733,868
Total 20,930,016,684 - 20,930,016,684
Investment Held For Trading NIL NIL NIL
Movement
(29,061,736)
98,867,853
(23,284,235)
4,407,990
(18,667,793)
32,262,079
Movement
2,366,708
Movement
32,262,079
Net
9,063,082,816
40,000,000
-
1,600,000,000
-
506,250,000
-
-
9,715,950,000
4,733,868
20,930,016,684
Investment (Available for Sale) Cost Price Previous market price Current Market Price
Nepal Government Treasury Bills

Nepal Government Savings Bond
Nepal Government Other Securities
Nepal Rastra Bank Bonds
Foreign Bonds
Local Licensed Institutions' Shares *** 75,800,500 586,331,665 592,255,892
Local Licensed Institutions' Mutual Fund 199,873,270 202,773,522 205,913,117
Foreign Bank Placements
Other Investment 256,897,290 1,164,381,300 1,004,539,700
Total 532,571,060 1,953,486,487 1,802,708,709
***Note: Incase of unlisted share Cost price is taken as Market Price.
3. Risk Management Process

Nepal Investment Bank has tailored its risk management program to its needs and circumstances. Regardless of the risk
management program design, each program should cover:
Risk identification
In order to properly manage risks, an institution must recognize and understand risks that
may arise from both existing and new business initiatives; for example, risks inherent inlending activity include credit, liquidity, interest rate an
Risk Measurement
Once risks have been identified, they should be measured in order to determine their impact on the banking institution’s profitability and capi
Risk Monitoring
Institutions should put in place an effective management information system (MIS) to monitor risk levels and facilitate timely review of risk pos
Risk Control
After measuring risk, an institution should establish and communicate risk limits through
policies, standards, and procedures that define responsibility and authority. These limits should serve as a means to control exposu
A sound risk management system should have the following elements:
• Active board and senior management oversight; (BMO)
• Adequate policies, procedures and limits; (PPL)
• Adequate risk measurement, monitoring and management information system (MIS);and
• Comprehensive internal controls. (ICs)
Active Board and Senior Management
Oversight Boards of directors have ultimate responsibility for the level of risk taken by Nepal Investment Bank Limited.
Accordingly, they should approve the overall business strategies and significant policies of NIBL, including those related to
Current year
Adjustment in
Investment Reserve
-
-
dless of the risk
clude credit, liquidity, interest rate and operational risks. Risk identification should be a continuing process, and should be understood at both the transactio
ng institution’s profitability and capital. This can be done using various simple models. Accurate and timely measurement of risk is essential to e
and facilitate timely review of risk positions and exceptions. Monitoring reports should be frequent, timely, accurate, and informative and should be distribute
erve as a means to control exposure to various risks associated with the banking institution’s activities. Institutions may also apply various mitigating tool
Bank Limited.
g those related to
understood at both the transaction and portfolio levels.
surement of risk is essential to effective risk management systems. An institution that does not have a risk measurement system has limited ability to con
formative and should be distributed to appropriate individuals to ensure action, when needed.
also apply various mitigating tools in minimizing exposure to various risks. Institutions should have a process to authorize and document Exceptions or cha
nt system has limited ability to control or monitor risk levels. Banking institutions should periodically test their risk measurement tools to make sure they are
e and document Exceptions or changes to risk limits when warranted.

ment tools to make sure they are accurate. Good risk measurement systems assess the risks of both individual transactions and portfolios.
ons and portfolios.
managing and taking risks, and should also ensure that senior management is fully capable of managing the activities that NIBL undertake. W
Senior management is responsible for implementing strategies in a manner that limits risks associated with each strategy and that ensures co
Strategies and Processes
Credit risk process is a joint effort between its marketing and credit areas. Relationship managers and account officers on one hand, and the c
The Structure and Organization of the Relevant Risk Management Function
The Board of Directors (BOD) is the ultimate authority in the decision making process. The process, however, is initiated at the business unit o
The Scope and Nature of Risk Reporting and / or Measurement Systems
Risk reporting / measurement system is done through regular customer interactions, site inspections & annual reviews. These are continuous
Policies for Hedging and / or mitigating risk and Strategies, and processes for monitoring the continuing effectiveness of hedges / mitigants
Policies for mitigating risks & strategies are as outlined in the respective manuals and as discussed at various levels after customer interaction
Types of Eligible credit risk mitigants used and the benefits availed under CRM:
Particulars
Deposits with Bank
Deposits with other banks/FI
Gold
Govt. & NRB Securities
Government Guarantee
Sec/G’tee of Foreign Banks
Total
ng the activities that NIBL undertake. While all boards of directors are responsible for understanding the nature of the risks significant to NIBL and for ensur
with each strategy and that ensures compliance with laws and regulations on both a long-term and day-to-day basis. Accordingly, management should be f
account officers on one hand, and the credit officers on the other are engaged in analyzing inherent risks in the customer’s business, ability to repay and st
wever, is initiated at the business unit officers / business unit heads / ALCO level, Risk Management department and goes through the Chief Executive Off
annual reviews. These are continuous processes. Further, quarterly review of the bank’s performance is conducted every quarter and findings reported to
g effectiveness of hedges / mitigants
various levels after customer interactions / visits, during annual reviews, quarterly reviews and at meetings at various levels.
Eligible CRM
1,325,502,979
831,514,641
37,987,480
364,588,858
5,427,972,552
7,987,566,510
gnificant to NIBL and for ensuring that management is taking the steps necessary to identify, measure, monitor, and control these risks.
ingly, management should be fully involved in the activities of NIBL and possess sufficient knowledge of all major business lines to ensure that appropriate
usiness, ability to repay and structure a facility that simultaneously accommodates the financing needs, while assuring seniority, protection and control of th
hrough the Chief Executive Officer, Risk management committee and the BOD. The risk management stops at different levels depending on the Bank’s pol
uarter and findings reported to the BOD.

ol these risks.
s lines to ensure that appropriate policies, controls, and risk monitoring systems are in place and that accountability and lines of authority are clearly deline
niority, protection and control of the Bank’s assets and collateral.
vels depending on the Bank’s policy relating to approval discretions. Further policy manuals on credit, asset liability, information technology & operations a
ines of authority are clearly delineated. Senior management is also responsible for establishing and communicating a strong awareness of and need for eff
mation technology & operations are also available to guide the staff on day to day business.
ng awareness of and need for effective internal controls and high ethical standards.
Sectoral Loan Details
F/Y 2014/15
S.NO. Industry/ Sector Current Year Rs.
1 Agriculture 2,023.46
2 Fishery 31.82
3 Mining 152.36
4 " Agriculture, Forestry & Bevarage Production Related " 5,495.51
5 Non-food Production Related 17,667.15
6 Construction 3,851.60
7 Electricity,Gas and Water 1,914.64
8 Metal Production, Machinary and Electrical Tools 263.56
9 Transportation, Communications and Public Services 1,223.73
10 Wholesaler and Retailer 13,932.62
11 Finance, Insurance and Real estate 4,730.20
12 Hotel or Restaurant 5,512.36
13 Other Service Industries 5,594.13
14 Consumable Loan 1,573.28
15 Local Government 368.27
16 Others 3,355.50
TOTAL 67,690.20
Rs. in Million
Previous Year Rs.
1,353.42
0.06
131.35
3,649.41
15,682.89
1,671.12
815.96
303.45
1,490.29
10,854.03
4,373.38
2,202.40
3,921.43
1,451.50
-
5,557.79
53,458.47
GROSS VALUE ADDED STATEMENT
FOR THE FISCAL YEAR 2014/15
Rs in Million
Previous Year PARTICULARS This Year
Rs. Rs. % Rs. Rs.

SOURCE OF VALUE ADDITION:
7,717.45 Income from Operating and Non-operating activities 7,532.64
(3,374.46) Less:Operating, Administrative and Non-Operating (3,654.77)

expenses
3,742.99 100.00 Gross value added before depreciation 3,877.88
- -
- - APPLICATION OF VALUE ADDITION:
- 714.41 19.09 TO Employees 761.88
- 826.87 22.09 TO Government 855.55
- 148.08 3.96 TO Repair & Maintenance 131.10
- TO Capital Provider:
114.02 Interest on Borrowings 157.49
1,036.68 1,150.70 30.74 Cash Dividend to Shareholders 82.87 240.36
979.73 - TO Expansion, Reserves, & Retention 2,060.37
(76.80) 902.94 24.12 Less: Last year's accumulated profit (181.38) 1,878.98
- 3,742.99 100.00 TOTAL 3,877.88
%
100.00
19.65
22.06
3.64
6.20
48.45
100.00
Five Years Financial Summary
Balance Sheet
NPR in '000
Fiscal Year 2067/68 2068/69 2069/70 2070/71
2010/2011 2011/2012 2012/2013 2013/2014
Capital & Liabilities
1. Share Capital 3,011,372 3,766,155 4,144,808 4,768,714
2. Reserve & Fund 2,148,388 2,283,786 2,875,836 3,156,765
3. Debentures and Bonds 1,050,000 1,050,000 800,000 1,050,000
4. Borrowings 280,764 567,579 310,566 424,340
5. Deposits Liabilities 50,138,122 57,010,604 62,428,845 73,831,376
6. Bills Payable 8,250 2,977 2,888 266
7. Proposed Dividend 602,274 150,646 942,002 1,036,677
8. Income Tax Liabilities - - - -
9. Other Liabilities 1,117,657 924,484 1,647,209 1,905,790
Total Liabilities 58,356,828 65,756,232 73,152,155 86,173,928
Assets
1. Cash Balance 1,718,666 1,963,969 2,172,985 2,170,768

2. Balance with NRB 4,009,460 8,502,694 8,752,591 12,652,937
3. Balance with Banks/ Financial 2,412,245 1,337,088 2,326,512 1,921,006
Institution
4. Money at Call and Short Notice 150,000 205,363 267,400 232,375
5. Investments 7,423,107 10,438,487 11,435,268 15,383,529
6. Loan, Advances & Bills Purchased 41,095,515 41,636,999 46,400,054 52,019,765
7. Fixed Assets 1,108,448 1,056,439 1,068,837 1,058,313

8. Non-Banking Assets - - - -
9. Other Assets 439,388 615,193 728,508 735,234
Total Assets 58,356,828 65,756,232 73,152,155 86,173,928
2071/72
2014/2015
6,345,701
3,461,252
1,550,000
263,116
90,631,487
215
82,868
-
2,010,798
104,345,436
2,660,938
8,992,839
2,661,271
-
21,462,588
66,219,232
1,054,132
-
1,294,437
104,345,436
Profit & Loss Account
Fiscal Year 2067/68 2068/69 2069/70 2070/71
Particulars 2010/2011 2011/2012 2012/2013 2013/2014
1. Interest Income 5,803,440 5,982,641 5,865,840 5,816,279
2. Interest Expenses (3,620,337) (3,814,411) (2,774,788) (2,820,475)
Net Interest Income 2,183,103 2,168,230 3,091,052 2,995,804
3. Commission and Discount 269,429 319,667 348,701 478,608
4. Other Operating Income 152,985 157,780 199,417 211,346
5. Exchange Profit 228,076 264,167 360,245 460,227
Total Operating Income 2,833,594 2,909,843 3,999,414 4,145,985
6. Staff Expenses (326,543) (340,160) (379,942) (437,766)
7. Other Operating Expenses (456,057) (468,863) (515,837) (539,331)
8. Exchange Loss - - - -
Operating Profit Before Provision for Possible 2,050,994 2,100,820 3,103,636 3,168,889
Loss
9. Provision for Possible Losses (267,331) (743,724) (958,336) (277,278)
Operating Profit 1,783,662 1,357,096 2,145,300 2,891,610
10. Non-operating Income/ Loss 8,396 14,161 10,431 11,841
11. Loss Provision Written Back 106,634 267,685 930,004 139,148
Profit from Regular Operations 1,898,693 1,638,942 3,085,734 3,042,600
12. Profit/ Loss from extra-ordinary activities (52,861) (1,726) (74,393) 527
Net Profit after considering all activities 1,845,832 1,637,216 3,011,341 3,043,127
13. Provision for Staff Bonus (167,803) (148,838) (273,758) (276,648)
14. Income Tax Provision (501,388) (449,103) (822,555) (826,867)
- Current Year (500,360) (448,070) (823,186) (829,328)
- Upto Previous Year - (12,675) - (295)
- Deferred Tax Income / (Expense) (1,028) 11,643 631 2,756
Net Profit/ Loss 1,176,641 1,039,276 1,915,028 1,939,612
Consolidated Financial Statements

2071/72
2014/2015
5,786,160
(2,807,361)
2,978,799
497,300
237,469
458,418
4,171,987
(480,139)
(572,108)
-
3,119,740
(573,892)
2,545,848
15,592
537,704
3,099,144
-
3,099,144
(281,740)
(855,551)
(845,849)
(10,493)
791
1,961,852
ements
Consolidated Balance Sheet
As at Ashad end 2072 (July 16, 2015)
Capital & Liabilities Schedule Current Year Rs.
1. Share Capital 6,345,700,655

2. Reserve & Fund 3,477,928,724
3. Debentures and Bonds 1,550,000,000
4. Borrowings 263,116,232
5. Deposits Liabilities 90,630,659,779
6. Bills Payable 214,898
7. Proposed Dividend 82,868,272
8. Income Tax Liabilities -
9. Other Liabilities 6,377,830,492
Total Liabilities 108,728,319,052
Assets Schedule Current Year Rs.
1. Cash Balance 2,660,938,495

2. Balance with NRB 8,992,838,688
3. Balance with Banks/ Financial Institution 7,035,827,566
4. Money at Call and Short Notice -
5. Investments 21,433,160,906
6. Loan, Advances & Bills Purchased 66,219,232,015
7. Fixed Assets 1,066,517,198
8. Non-Banking Assets -
9. Other Assets 1,319,804,183
Total Assets 108,728,319,052
0
Contingent Liabilities Schedule 17
Directors’ Declaration Schedule 29
Statement of Capital Fund Schedule 30
Statement of Risk Weighted Assets Schedule 30 (A)
Principal Indicators Schedule 31
Principal Accounting Policies Schedule 32
Notes to Accounts Schedule 33
Chairman
Director
Deepak Man Sherchan
Director
Director
Jyoti P. Pandey
Director
Director
Sachin Tibrewal
Previous Year Rs.
4,768,713,625
3,163,905,429
1,050,000,000
424,339,748
73,828,083,968
266,480
1,036,676,875
-
1,907,619,257
86,179,605,382
Previous Year Rs.
2,170,772,957
12,652,937,075
2,002,238,198
232,375,000
15,283,225,887
52,019,765,103
1,064,549,945
-
753,741,217
86,179,605,382
Schedule 17
Schedule 29
Schedule 30
Schedule 30 (A)
Schedule 31
Schedule 32
Schedule 33
Consolidated Profit & Loss Account
Particulars Schedule Current Year Rs.
1. Interest Income 5,793,474,611

2. Interest Expenses (2,807,166,412)
Net Interest Income 2,986,308,199
3. Commission and Discount 522,517,624
4. Other Operating Income 239,082,510
5. Exchange Profit 458,418,472
Total Operating Income 4,206,326,806
6. Staff Expenses (491,486,649)
7. Other Operating Expenses (579,620,902)
8. Exchange Loss
Operating Profit Before Provision for Possible Loss 3,135,219,254
9. Provision for Possible Losses (573,891,909)
Operating Profit 2,561,327,345
10. Non-operating Income/ Loss 14,165,638
11. Loss Provision Written Back 537,704,153
Profit from Regular Operations 3,113,197,136
12. Profit/ Loss from extra-ordinary activities -
Net Profit after considering all activities 3,113,197,136
13. Provision for Staff Bonus (283,017,922)
14. Income Tax Provision (858,790,492)
- Current Year (849,341,787)
- Upto Previous Year (10,493,007)
- Deferred Tax Income / (Expense) 1,044,302
Net Profit/ Loss 1,971,388,722
Chairman
Director
Deepak Man Sherchan
Director
Director
Jyoti P. Pandey
Director
Director
Sachin Tibrewal
Previous Year Rs.
5,820,592,031
(2,818,805,854)
3,001,786,177
479,698,743
225,558,556
460,226,769
4,167,270,245
(446,527,257)
(542,960,472)
-
3,177,782,516
(277,278,257)
2,900,504,259
11,841,446
139,148,316
3,051,494,021
527,273
3,052,021,294
(277,456,481)
(828,651,755)
(831,217,927)
(295,494)
2,861,666
1,945,913,058
Consolidated Profit & Loss Appropriation Account
Income
1. Accumulated Profit up to last year 188,524,938
2. This year’s profit 1,971,388,722
3. Exchange Fluctuation Reserve -
4. Transfer from Debenture Redemption Fund 250,000,000
5. Dividend Refund to RMDC (prior period) -
Total 2,409,913,660
Expenses
1. Accumulated loss up to last year
2. This year’s Loss
3. General Reserve Fund (392,370,476)
4. Contingent Reserve
5. Institutional Development Fund
6. Dividend Equilization Fund
7. Employees Related Funds
8. Proposed Dividend (82,868,272)
9. Proposed Issue of Bonus Shares (1,574,497,155)
10. Special Reserve Fund
11. Exchange Fluctuation Reserve (9,793,442)
12. Capital Adjustment Fund
13.Debenture Redemption Fund (254,166,714)
14. Investment Adjustment Reserve (29,497,129)
Total (2,343,193,188)
Accumulated Profit/ Loss 66,720,472
Chairman
Director
Deepak Man Sherchan
Director
Director
Jyoti P. Pandey
Director
Director
Sachin Tibrewal
Date: 11 Ashwin 2072
Place: Durbar Marg, Kathmandu
Previous Year Rs.
77,638,136
1,945,913,058
-
500,000,000
-
2,523,551,194
-
-
(387,922,469)
-
-
-
-
(1,036,676,875)
(622,006,125)
-
(4,725,613)
-
(182,735,286)
(100,959,889)
(2,335,026,257)
188,524,937
Consolidated Cash Flow Statement
(A) Cash Flow from Operating Activities 2,224,752,558

1. Cash Receipts 6,765,593,325
1.1 Interest Income 5,615,355,384
1.2 Commission and Discount Income 442,041,483
1.3 Exchange Gain 458,418,472
1.4 Recovery of Loan Written Off -
1.5 Other Income 249,777,987
2. Cash Payments (4,636,084,119)
2.1 Interest Expenses (2,811,019,339)
2.2 Staff Expenses (491,425,856)
2.3 Office Overhead Expenses (435,940,271)
2.4 Income Tax Paid (897,632,390)
2.5 Other Expenses (66,263)
Cash Flow Before Changes in Working Capital 2,129,509,206
(Increase)/Decrease of Current Assets (20,742,909,089)
1. (Increase)/Decrease in Money at Call and Short Notice 232,375,000
2. (Increase)/Decrease in Short-term Investment (6,402,061,311)
3. (Increase)/Decrease in Loan and Bills Purchase (14,086,384,770)
4. (Increase)/Decrease in Other Assets (486,838,009)
Increase/(Decrease) of Current Liabilities 20,838,152,441
1.Increase/(Decrease) in Deposits 16,802,575,810
2.Increase/(Decrease) in Certificate of deposits -
3.Increase/(Decrease) in Short-Term Borrowings (68,506,516)
4.Increase/(Decrease) in Other Liabilities 4,104,083,147
(b) Cash Flow from Investing Activities 127,117,093
1.(Increase)/Decrease in Long-term Investment 252,126,292
2.(Increase)/Decrease in Fixed Assets/ NBA (137,505,528)
3.Interest from Long-term Investment -
4.Dividend Income 12,496,329
(c) Cash Flow from Financial Activities (488,213,132)
1.Increase/(Decrease) in Long-term Borrowings ( Bond, Debentures etc.) 500,000,000
2. Increase/(Decrease) in Share Capital/share premium 2,489,875
3.Increase/(Decrease) in Other Liabilities -
4.Increase/(Decrease) in Refinance/facilities received from NRB (92,717,000)
5. Dividend Expenses (897,986,007)
(d) Income/Loss from change in exchange rate in cash and bank balances
(e) Current Year’s Cash Flow from All Activities 1,863,656,519
(f) Opening Balance of Cash and Bank Balances 16,825,948,230
(g) Closing Balance of Cash and Bank Balances 18,689,604,749

Chairman
Director
Deepak Man Sherchan Bhuwaneshwar Prasad Shah
Director
Director
Jyoti P. Pandey
Bir Bikram Rayamajhi Mohan Madan Budathoki
Director
Date: 11 Ashwin 2072
Place: Durbar Marg, Kathmandu
Director
Sachin Tibrewal
Previous Year Rs.
3,674,400,787
7,079,034,679
5,875,334,039
527,684,730
460,226,769
527,273
215,261,868
(4,418,814,953)
(2,808,104,261)
(446,671,648)
(393,378,168)
(770,625,672)
(35,203)
2,660,219,727
(10,185,466,622)
35,025,000
(4,310,668,776)
(5,733,372,023)
(176,450,823)
11,199,647,682
11,400,486,344
-
21,056,748
(221,895,410)
260,186,767
362,439,800
(124,391,167)
10,578,583
11,559,551
(452,048,196)
250,000,000
1,899,030
-
92,717,000
(796,664,226)
-
3,482,539,358
13,343,408,872
16,825,948,230
Consolidated Statement of Changes in Equity
F.Y. 2071/72 (FY 2014/15)
Particulars Share Capital Accumulated General Capital Share Exchange
Profit/(Loss) Reserve Reserve Premium Fluctuation
Fund
Opening Balance (as at 16 July 2014) 4,768,713,625 188,524,938 2,303,281,514 - 11,849,422 60,219,356
Prior Period adjustement - - - - - -
Surplus on Revaluation of properties - - - - - -
Deficit on Revaluation of Investment - - - - - -
Currency translation differences - - - - - -
“ Net Gains & Losses not recognised in the - - - - - -
income statement “
Net profit for the period - 1,971,388,722 - - - -
Transfer to General Reserve - (392,370,476) 392,370,476 - - -
Declaration of Dividend (proposed) - (82,868,272) - - - -
Issue of Share Capital 2,489,875 - - - - -
Issue of Bonus Shares (Proposed) 1,574,497,155 (1,574,497,155) - - - -
Deficit on revaluation of currencies - - - - - -
Surplus on Revaluation of Investment - - - - - -
Transfer to Exchange Fluctuation Fund - (9,793,442) - - - 9,793,442
Transfer from Debenture Redemption Fund - - - - - -
Transfer to Debenture Redemption Fund - (254,166,714) - - - -
Transfer to Capital Adjustment Fund - - - - - -
Transfer from Capital Adjustment Fund - 250,000,000 - - - -
Investment Adjustment Reserve - (29,497,129) - - - -
Closing Balance ( as at 16 July 2014) 6,345,700,655 66,720,472 2,695,651,990 - 11,849,422 70,012,798
Consolidated Significant Accounting Policies and Notes to Accounts

ACCOUNTING POLICIES
1) GENERAL INFORMATION
a. Reporting entity
Nepal Investment Bank Ltd. (NIBL), previously Nepal Indosuez Bank Ltd., was established in 1986 as a joint venture public limi
b.Consolidated Financial Statement
The consolidated financial statements of the bank as of 16 July 2015 comprises of the bank and its 100% subsidiary NIBL Capi
The financial statements were approved for issue by the board of directors.
2) STATEMENT OF COMPLIANCE
The consolidated financial statements of the group and separate financial statements of the bank have been prepared in accord
3) BASIS OF CONSOLIDATION
The group’s financial statements comprise of consolidation of financial statements of the Nepal Investment Bank Ltd. (the Pare
Transaction eliminated on consolidation:
All intra group transaction and balances, income and expenses and any unrealized gains/ losses arising from such inter-compa
aNNual RepoRt 2015
4) PREVIOUS YEAR’S FIGURES:
Previous year’s figures are grouped or regrouped wherever necessary in order to facilitate comparison.
NOTES TO ACCOUNTS
1.The net profit of the parent and subsidiary for the year is as under:
Nepal Investment Bank Ltd. NPR 1,961,852,380
NIBL Capital Markets Ltd. NPR 9,536,342
Net Profit of the Group NPR 1,971,388,722
2.The deferred tax expense / (income) of the Group is as under:
Deferred tax
Nepal Investment Bank Ltd. NPR 790,852
NIBL Capital Markets Ltd. NPR 253,450
Total Deferred Tax income of the Group NPR 1,044,302
3.RELATED PARTY DISCLOSURES:
a.NIBL Capital Markets Ltd. (a subsidiary of NIBL) held deposits of NPR 0.82 million in various accounts in the Bank as at Asha
b.A staff from the Bank has been deputed as CEO of NIBL Capital Markets Ltd. During the year, total allowance of NPR 1.20 m
c.The Bank has entered into a Service Level Agreement (SLA) with the company for the provision of management se
d.The Bank has appointed NIBL Capital markets Ltd. as its Share Registrar for which the Bank pays a fee of NPR 500,000 per
e.The Bank has invested NPR 140 Million in NIBL Mutual Fund- NIBL Samriddhi Fund -1 as Seed Capital.
f.The Bank received underwriting commission of NPR 1.41 million for underwriting the share issues managed by the subsidiary
g.All transaction between the Bank and NIBL Capital Markets Ltd. are on an arm’s length basis.
110 Nepal INvestmeNt BaNk ltd
Strategic Objectives
• To develop a customer oriented service culture with special emphasis on customer care and convenience.
• To increase our market share by following a disciplined growth strategy.
• To leverage our technology platform and pen scalable systems to achieve cost effective operations, efficient Management I
• To develop innovative products and services that attracts our targeted customers and market segments.
• To continue to develop products and services that reduces our cost of funds.
• To maintain a high quality assets portfolio to achieve strong and sustainable returns and to continuously build shareholders
• To explore new avenues for growth and profitability.
Core Values and Ethical Principles:
Our core values tell us, our customers and the communities we serve, who we really are; what we are about; and the p
• Customer Focus: At NIBL, our prime focus is to perfect our customer service. Customers are our first priority and driv
• Quality: We believe a quality service experience is a paramount to our customers and we are strongly committed in fulfilling th
• Honesty and Integrity: We ensure the highest level of integrity to our customers, creating an ongoing relationship of t
• Belief in our people: We recognize that employees are our most valuable asset and our competitive strength. We respect th
• Teamwork: We are a firm believer in team work and feel that loyal and motivated teams can produce extraordinary r
• Good Corporate Governance: Effective Corporate Governance procedures are essential to achieve and maintain p
• Corporate Social Responsibility: As a responsible corporate citizen, we consider it important to act in a responsibl
Durbar Marg, P.O. Box; 3412, Kathmandu, Nepal
E-mail: info@nibl.com.np Telephone: (977) 4242530
Fax: (977) 4226349, 4228927
Exchange Other Debenture Capital Investment Total
Fluctuation Reserves Redemption Adjustment Adjustment
Fund Fund Fund Reserve
60,219,356 31,500 460,119,000 - 139,879,699 7,931,619,054
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - 1,971,388,722
- - - - - -
- - - - - (82,868,272)
- - - - - 2,489,875
- - - - - -
- - - - - -
- - - - - -
9,793,442 - - - - -
- - (250,000,000) 250,000,000 - -
- - 254,166,714 - - -
- - - - - -
- - - (250,000,000) - -
- - - - 29,497,129 -
70,012,798 31,500 464,285,714 - 169,376,828 9,823,629,379
6 as a joint venture public limited company between Nepali and French partners as per the then Companies Act 1964. The French partner (
s 100% subsidiary NIBL Capital markets Ltd. The financial year of the subsidiary is common to that of the parent company. The subsidiary
have been prepared in accordance with Nepal Accounting Standards(NAS) issued by the Nepal Accounting Standard Board, except other
vestment Bank Ltd. (the Parent Company) and its subsidiary, NIBL Capital Market Ltd. A subsidiary is an entity that is controlled by another
arising from such inter-company transactions and balances are eliminated in full while preparing the consolidated financial statements.
counts in the Bank as at Ashad end 2072. The Bank paid NPR 0.19 million as interest on the said deposits during the year.
otal allowance of NPR 1.20 million was paid by the Company.
provision of management services as well as other ancillary support. The Bank receives a fee of NPR 600,000 from the company for the S
ys a fee of NPR 500,000 per annum to the latter. A staff from the bank has been deputed to the company for assisting in share registrar se
es managed by the subsidiary. Similarly, the Bank received collection and refund commission of NPR 4.15 million for acting as banker to the
convenience.
ations, efficient Management Information Systems, improved delivery capability and high service standards.
ntinuously build shareholders’ value.
what we are about; and the principles by which we pledge to conduct business. In essence, we believe that success can only be achi
rs are our first priority and driving force. We wish to gain customer confidence and be their trusted partner.
ongly committed in fulfilling this ideal.
ng an ongoing relationship of trust and confidence. We treat our customers with honesty, fairness and respect.
tive strength. We respect the worth and dignity of individual employees who devote their careers for the progress of the Bank.
s can produce extraordinary results. We are drived by a performance culture where recognition and rewards are based on individual merit a
tial to achieve and maintain public trust and confidence in any company, more so in a banking company. At NIBL, we are committed in follo
ortant to act in a responsible manner towards the environment and society. Our commitment has always been to behave ethicall
1964. The French partner (holding 50% of the capital) was Credit Agricole Indosuez, a subsidiary of one of the largest banking groups in the
company. The subsidiary is running merchant banking business in Nepal after getting license from SEBON.
dard Board, except otherwise stated, Generally Accepted Accounting Principles (GAAP), Bank & Financial Institutions Act (BAFIA) 2
hat is controlled by another entity (known as the parent). Control exists when the bank has the power, directly or indirectly to govern the fina
financial statements.
rom the company for the SLA.
isting in share registrar services. The salary cost of such staff is reimbursed by the company to the Bank.
for acting as banker to the issues managed by the subsidiary.
uccess can only be achieved by living our core values and principles:
ogress of the Bank.

based on individual merit and demonstrated track record.
, we are committed in following best practices resulting in good corporate governance.
been to behave ethically and contribute towards the improvement of quality of life of our people, the community and greatly the society
e largest banking groups in the world. When Credit Agricole Indosuez decided to divest, a group of companies comprising of bankers, profe
ncial Institutions Act (BAFIA) 2063, presentation and other requirements of NRB Directives and in conformity with Companies Act.
or indirectly to govern the financial and operating policies of the enterprise from the date control commences until the date control ceases.
mmunity and greatly the society, of which we are an integral part.
s comprising of bankers, professionals, industrialist and businessmen acquired 50% of the holdings of Credit Agricole Indosuez in Nepal In
with Companies Act.
until the date control ceases. The consolidated financial statements have been prepared in accordance with International Accounting Stan
Agricole Indosuez in Nepal Indosuez Bank in April 2002. The name of the Bank was then changed to Nepal Investment Bank Ltd. upon
International Accounting Standards 27 “Consolidated and Separate Financial Statements”. In preparing the consolidated financial statemen
Investment Bank Ltd. upon approval from the Bank’s Annual General Meeting, Nepal Rastra Bank and Company Registrar’s Office
consolidated financial statements, the financial statements are combined line by line by adding the like items of assets, liabilities, equity, inc
nd Company Registrar’s Office.
of assets, liabilities, equity, income and expenses.

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CONTENTS

Our Vision, Mission statement 5

Particulars 2010-11 2011-12 2012-13 2013-14 2014-15

Last 10 Years at Glance

BOOK VALUE PER SHARE

Mr. Deepak Man Sherchan Director

BOARD OF DIRECTORS’ REPORT

as actively served in organizations like Nepal Jaycees, Rotary and FNCCI in

ts, lending, net profit and capital base is second to none.

nks in the country.

od of 10 years propelling it to the top tier of

governance and regulatory compliance.

ear came down to NPR 2.97 billion this year,

1. Total Assets 86,173 104,345 18,172 21.1

vely in the corresponding period of the previous year.

on in the banking sector and challenge created in asset liability management

areholders in the context of increased capitalization required by regulator

n interest spread by central bank

alent present in head office and all branches,

f low cost deposits

ource by providing them trainings, team building exercises, etc.

nvestments grew by 22.8%, 26.6% and 37.4% to reach NPR 90.63

0.0% in total capital fund and 6.0% in core capital fund.

deposits during the year.

a fee of NPR 600,000 from the company for the SLA.

anker to the issues managed by the subsidiary.

cal year 2071/72.

or their Related Entities:

most bank in the country.

will ultimately translate to organizational growth and increased shareholder value.

atives in board from the investors of those shares.

ock dividend (NPR 1,57,44,97,155) from the profits of the Bank.

by the company to the Bank.

nation of Mr. Janardan Dev Pant.

es of giving back to the society.

o play in the coming days.

Investment Bank Ltd. for their dedication and hard work.

2014, is projected to grow by 4.1 percent in 2015.

g staff to enable them to consistently deliver high quality service.

3 Deepak Man Sherchan Director

5 Ramesh Raj Bhattrai* Director

Corporate Social Responsibility (CSR)

ent and Service facilities Committee in pursuant to Section

ajanaya Rajbhandary (Member)

ount level and portfolio level.

utes and the regulatory guidelines of the Central Bank.

fect on an institution’s ability to obtain liquidity, especially

es- tablished capital adequacy goals; and

Member Secretary of the Committee.

akdowns in internal controls and

approach of identifying, assessing, monitoring, controlling and mitigating the risk.

o maximize a bank’s risk-adjusted rate of return by maintaining credit

Branch Network Of NIBL

Fax: 4227050, 4227655

HDFC, Mumbai ICICI Bank, Mumbai

Hamburg Standard Chartered Bank, London

on to students from poor socio-

Branch for five years. She is currently serving

Head of Internal Audit Department. He is currently serving as the Regional

Capital & Liabilities Schedule Current Year Rs.

Assets Schedule Current Year Rs.

Contingent Liabilities Directors’ Declaration Schedule 17