ANNUAL REPORT 2014/15 - Sunrise Bank Ltd.

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T H E S T O R Y I S A B O U TSunrise Bank is not just a

bank. It is the story about

YOU and US. We are one of

your neighbor, colleague or a

friend, when and where you

need the most. We live here.

We work here. We partner

your success. We were

here for you yesterday.

We are and will be there for

you tomorrow. So, we are you

and you are us.

By capitalizing on our core strength, market orientation and

innovation in product and service delivery; Sunrise Bank

is well positioned to achieve its aim of being a lead

bank in all places of its branch locations and

nationwide. Sunrise aims to ace in the

market through its customized

financial solutions and

enriched customer

base.

S U N R I S E B A N K A T A G L A N C E

With a view of “Rising to Serve” Sunrise Bank began its operation in the year 2007. Our mission incorporates a nationwide focus guided by the vision of working together to build a better future.

G O V E R N A N C E

Serving as one of the vital component in driving the nation’s economy; at Sunrise we believe in doing business in the right way and are guided by highest level of corporate governance.

P R O D U C T S & S E R V I C E S

With a varied collection of customized financial solution, Sunrise Bank has delighted its customers thereby increasing its clientele base.

F I N A N C I A LS T A T E M E N T

The financial statements highlights on how we performed against the Key Performance Indicators and stabilize long term financial performance.

S H A R E H O L D E R S 'I N F O R M A T I O N

Sunrise is committed to create value to its shareholders. The shareholders have an easy access to our financial position, dividend payout ratio thereby helping our shareholders manage their shareholding at Sunrise

About Sunrise Bank 6Vision, Mission & Objectives 6Core Values 6Financial Highlights 8Global Economic Review 10Domestic Economic Review 11

Board of Directors and its Composition 14Chairman's Statement 16CEO's Statement 18Management Team 20Corporate Event 24Board Level Committee 28 Human Resource Management 36CSR 48

Lending Products 38Deposit Products 41 Remittance 42Card & E-banking Products and Services 43Financial Advisory Cell 45

Director's Report 52Disclosure of informaton undersection 109(4) ofCompanies Act 2006 60Disclosure related to annexture-13 of sub rule (1) of rule 22 of securities registration and issuance regulation, 2065 61Auditor's Report 63Financial Statement 64

Shareholders' Information 127Stock Symbol 127

R E P O R T O B J E C T I V E S

The report is intended to provide an easy access to

information to our stakeholders including all other interested

parties on how we performed in 2014/15 against the Key

Performance Indicators.

The report crafts awareness on the overall operation of the

bank and exhibits the Bank’s future direction to transcend

its mission and vision.

Customers are being

serverd through

53 branches and

67 ATM network

accross the country.

270,000+


Sunrise Bank At a GlanceEstablished as the 23rd commercial bank of Nepal on 12th October, 2007

Sunrise Bank Limited is “Rising to Serve” by defining new levels of products and

services. As a bank founded by reputed entrepreneurs, the bank has dedicated

itself to cater to the needs of all, be it big or small.

Over the glorious eight years of operation, the balance sheet of the bank

has grown to NPR 37.38 Billion and paid up capital of NPR 2.97 Billion. With a

customer base of more than 0.27 million, the bank is continuously striving to

deliver value added services to its clientele through its 53 branch network, 67

ATM outlets, 2 Extension Counter and branchless banking services. Apart from

this, Sunrise has continuously updated itself with the newest technology to

excel in service delivery thereby delighting its customers each time.

Innovation in product and service delivery is always a priority here at Sunrise and

hence the bank has always come up with new products and services identifying

the market needs. The bank complies with its corporate culture and code of

ethics. Well administered by corporate governance, bank also inculcates fine

human resource policy for its employees. Being a Corporate Citizen, the bank is

always accountable to giving back to the society.

n Customer Orientation: We at Sunrise provide value added customized products and delight our customers through unparalleled service delivery.

n Integrity and Transparency: The fundamental principle of Sunrise lies within integrity and transparency in every action it carries.

n Shareholder’s Security: Our shareholders have always been our major priority and our actions are directed to not only secure their investment but provide higher returns.

n Employee’s Prosperity: Employees are invaluable assets and hence we believe in nurturing them. We empower our employees with career development opportunities valuing their financial, social and esteem

needs.

n Corporate Citizenship: Being a responsible corporate citizen, we believe in giving back to the society and work for social development at large. We are abiding by high level of corporate governance thereby maintaining financial discipline.

You & Us. Together We Can Build.

Establish SUNRISE BANK as a lead bank in all places of our branch locations & nationwide.

n To be known as leader in providing customer friendly customized banking services supported by innovative treasury and investment banking products.

n To add value for shareholders through optimum cost effective capital structure.

n To enhance employee growth through continuous learning for building better human capital.

n To serve for economic growth of the nation.

Vision

Mission

Strategic Objectives

CORE VALUES

A T A G L A N C E G O V E R N A N C E F I N A N C I A L S TAT E M E N TP R O D U C T S & S E R V I C E S S H A R E H O L D E R S ' I N F O R M AT I O N


Capital Structure

The bank has been promoted by a group of entrepreneurs and professionals with expertise in their field of interest. The promoters are involved in various sectors including financial institutions, manufacturing, trading, automobiles, hydropower, real estate and educational institution etc.

51%

2.97 Billion

49%PROMOTERS PUBLIC

Total Paid Up Capital:

N

Kathmandu

Mahendranagar

Dadeldhura

Sukhad

Bhaktapur

Lalitpur

Dhangadi

Nepalgunj

Butwal

Damauli

Dumre

Narayanghat

Birgunj

Gaur

Bardibas

Lahan DuhabiBiratchowk Birtamode

RajbirajBiratnagar

Bhadrapur

Kakarvitta

Illam

Surunga

GaighatUdayapur Dharan

Jhumka

Pokhara Besisahar

Budhanilkantha

Baniyatar

JyathaGaushala

PutalisadakNewroad

Kalimati

Kalanki

Pharping

Chabahil

GothatarTinkune

Gabahal

Lagankhel

BhainsepatiLuvu

Sankhamul

Boudha

MaharajgunjMB Gairidhara

Sundarbazar

SunwalBhairahawa

Taukhel

Areas of ActivityBRANCH AND ATM NETWORK

53Branches 67ATMs

This diverse expertise of promoters has provided an insight in designing products and services to cater the varied necessities of the customers at large. The experience of the promoters is an invaluable asset and can contribute to the betterment of the bank.

Creating higher value to our shareholders through efficient management of equity.

Earning higher return on the capital investment through optimum utilization and allocation of our resources.

Adequately capitalized to absorb market shocks and protect our customers.

RETURN ON EQUITY

RETURN ON ASSETS

CAPITAL ADEQUACY RATIO

14.04%

1.26%

11.11%


Financial HighlightsThe year 2014/15 has been a remarkable year for the bank with an outstanding

performance. The balance sheet grew by 26% while the net profit escalated by

91% over a period of year. With the advancement in operational efficiency and

implementation of discreet risk management system, the bank has been able to

sizably decrease its NPL to 2.9%.

The year 2014/15 showed an impressive growth of 7,728 Million in balance sheet size with a CAGR of 17.19%.

The investments of the bank double folded in the year 2014/15 with a CAGR of 24.11% due to increase in fund base of the bank and considerable return from the investment instruments in the market.

There has been a sheer growth of 650 Million in the shareholder’s fund in 2014/15 due to issuance of right share.

The bank has always met the capital adequcy ratio as against prescribed by regulating bodies and is self-sufficient to absorb the losses.

With the increase in service excellence and public confidence upon the bank; the total deposit increased by 6,870 Million in 2014/15 with a CAGR of 17.79%.

The increasing credit opportunities, increase in financial literacy and the bank’s effort to penetrate in the unbanked areas increased loans and advances by 6,414 Million in 2014/15 with CAGR of 17.51%.

SIZE OF BALANCE SHEET CAGR: 17.19% (In NPR Million)

15

,58

0

21

,27

9

26

,12

9

29

,66

1

37

,38

9

10/11 11/12 12/13 13/14 14/15

TOTAL LOANS & ADVANCESCAGR: 17.51% (In NPR Million)

10/11 11/12 12/13 13/14 14/15

12,4

34

14,8

22

18,4

03

20,9

78

27,3

92

SHARE HOLDER'S FUND CAGR: 15.27% (In NPR Million)

10/11 11/12 12/13 13/14 14/15

2,1

46

2,1

51

2,4

51

2,6

98 3

,34

8

INVESTMENTSCAGR: 24.11% (In NPR Million)

10/11 11/12 12/13 13/14 14/15

1,1

03

1,8

09

2,4

54

3,0

55

7,2

60

TOTAL DEPOSITCAGR: 17.79% (In NPR Million)

10/11 11/12 12/13 13/14 14/15

13

,39

2

18

,75

9

23

,27

1

26

,61

7 33

,48

7

CAPITAL ADEQUACY RATIO(In %)

10/11 11/12 12/13 13/14 14/15

13.2

8

11.7

8

11.8

0

11.4

9

11.1

1



Sunrise has been successful to achieve a steady growth over the past 5 years. With a compounded annual growth rate of 17.79% in deposit and 17.51% in loans and advances, the Bank earned net profit of NPR 471 Million in the FY 2014/15. Stepping to the eighth year of operation, Sunrise enjoys stable growth in its business volume accompanied by increasing number of satisfied customers, wider range of financial service, ideally located branch network and surging net profit.

PARTICULARS BASIS 2014/15 2013/14 % CHANGE

Revenue NPR Million 1,493.27 1,403.73 6.38%

Operating Income NPR Million 864.88 779.28 10.98%

Operating Margin % 16.88 9.03 86.93%

Net Profit NPR Million 470.86 246.77 90.81%

Cash Flow From Operating Activities NPR Million 740.44 601.23 23.16%

Dividend Payout % 22.63 0.00 22.63%

Earning Per Share NPR 19.27 11.03 74.71%

Market Value Per Share NPR 395.00 510.00 -22.55%

Price Earning Ratio Ratio 20.50 46.22 -55.65%

Non Performing Loan % 2.90 4.94 -41.30%

Net Worth Per Share NPR 112.63 120.48 -6.52%

Number of Shares Quantity 24,436,880 22,366,500 9.26%

KEY INDICATORS

Good revenue generation despite

cut throat competition in the

market and declining interest

margin.

Awarded “Speed to Market” by

VISA for acing in card service.

Prudent risk management

system to minimize financial

and operational risks thereby

eliminating losses.

Remarkable growth in balance

sheet size with a good

composition of capital and liquid

assets.

Diverse credit portfolio to

minimize credit risk and maximize

returns.

Surge in investment of the bank

to reap sizable income from

investments in the market.

Integrated team efforts from the

ground level lead to escalate

bank’s profitability despite

adverse market conditions.

Reinvented product and services

to cater our customer’s divergent

needs thereby delighting them

and positions Sunrise as a strong

brand in the market.

Operational Highlights

13,392

12,434

44 111 312 247 471

14,822

18,403

20,978

27,392

18,759

Deposit

Loan

Net Profit

23,271

26,617

33,487

Movement in Growth

10/11 11/12 12/13 13/14 14/15

(In NPR Million)


Global Economic ReviewThe economic activities are expected to improve in the advanced economies

and to contract in the emerging and developing economies in 2015.

According to the July edition of the World Economic Outlook published by the

International Monetary Fund (IMF), world output growth is projected 3.3 percent

in 2015 compared to 3.4 percent last year.

The economic activities are expected to improve in the advanced economies and to contract in the emerging and developing economies in 2015. According to the July edition of the World Economic Outlook published by the International Monetary Fund (IMF), world output growth is projected 3.3 percent in 2015 compared to 3.4 percent last year. The economic growth of the United States is projected at 2.5 percent in 2015 compared to a 2.4 percent in 2014. Similarly, Euro area and Japanese economy are projected to grow at the rate of 1.5 percent and 0.8 percent respectively in 2015. Euro economy expanded by 0.8 percent, whereas the Japanese economy contracted by 0.1 percent in 2014. According to the IMF, the emerging and developing 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 countries is projected to contract in 2015. The Monetary Policy for 2015/16 economy of these

countries is projected 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 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 percent respectively in 2014. World trade volume, which increased by 3.2 percent in 2014, is projected to grow by 4.1 percent in 2015. The advanced economies are expected to experience zero inflation in 2015 owing to the fall in oil price and weak domestic demand. Inflation rate in such countries was 1.4 percent in 2014. The inflation in emerging and developing countries is projected to be 5.5 percent in 2015 compared to 5.1 percent in 2014. According to the projections made by the IMF in April 2015, inflation rate of India and China is expected to remain at 6.1 percent and 1.2 percent respectively.

Source: Nepal Rastra Bank



Domestic Economic ReviewThe GDP growth remained lower in 2014/15 compared to previous

year because of contraction in growth rate of agriculture sector due to

delayed monsoon and negative impact of the April 25 earthquake and

subsequent aftershocks.

The GDP growth remained lower in 2014/15 compared to previous year because of contraction in growth rate of agriculture sector due to delayed monsoon and negative impact of the April 25 earthquake and subsequent aftershocks. According to the preliminary estimates of the Central Bureau of Statistics, real GDP grew by 3.0 percent at basic price and 3.4 percent at producers' price in the review year which were 5.1 percent and 5.4 percent respectively in the previous year. In the review year, the growth rate estimates for agriculture and non-agriculture sectors are 1.9 percent and 3.6 percent respectively which were 2.9 percent and 6.3 percent respectively in the previous year. In the review year, the growth rate estimates for industry and service sub-sectors are 2.6 percent and 3.9 percent respectively which were 6.2 percent and 6.4 percent respectively.

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 (y-o-y) CPI inflation rate increased by 7.4 percent in mid-June 2015 which was 9.5 percent in the corresponding month of previous year. The indices of food and beverage group, and non-food and services

group increased by 9.5 percent and 5.5 percent respectively in the review period.

As monetary expansion has been at the expected level, price of petroleum products has fallen and inflation is contained in the neighboring economy; the annual inflation is estimated to have remained around 7.5 percent in 2014/15, lower than the target. As of cash flow data of 11 July 2015, total government spending increased by 18.9 percent to Rs. 440.99 billion. In the previous year, such expenditure had increased by 9.6 percent. Out of total expenditure, recurrent expenditure stood at Rs. 300.42 billion, capital expenditure at Rs 56.63 billion and financing expenditure at Rs. 83.94 billion. Total resource mobilization of government increased by 10.2 percent to Rs. 433.98 billion in the review year compared to an increase of 19.5 percent in the previous year. Out of the total resources, revenue collection increased by 12.84 percent to Rs. 380.64 billion. Since the government budget remained at surplus due to low government expenditure relative to resource mobilization in the review period, cash balance of the government at the NRB stood at Rs 72.04 billion. The overall BoP was

in a surplus of Rs. 127.20 billion in the eleven months of 2014/15.

Despite high trade deficit, current account 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 current account, net service income accumulated a surplus of Rs. 24.32 billion and remittance inflow increased by 12.4 percent to Rs. 551.74 billion. In the review period, total merchandise exports decreased by 4.8 percent while total merchandise imports increased by 7.0 percent. 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. 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. Based on the trend of imports during the eleven months of the review year, the existing level of reserves is sufficient for financing merchandise imports of 13.1 months, and merchandise and services imports of 11.3 months.

Source: Nepal Rastra Bank


Board of Directors and its Composition

Mr. Motilal DugarChairman

Mr. Dugar, the Chairman has been in directorship since the inception of the Bank. Besides this, he has involvement in different organizations in various capacities. He is also the Chairman of Gurans Life Insurance Company Ltd., Gurans Engineer’s Pvt. Ltd., Numbur Himalaya Hydropower Company Pvt. Ltd., Pan Himalaya Energy Pvt. Ltd., Global Hydropower Associates Pvt. Ltd., Kohinoor Cold Storage Pvt. Ltd., Nepal Salseed Oil Pvt. Ltd., Dugar Auto Clinic Pvt. Ltd., Dugar Automobiles Pvt. Ltd., Dugar Brother & Sons Pvt. Ltd., Amrit Pulses Industries and Chandanwala International. Hs is also a Treasurer of Nepal-USA Chamber of Commerce & Industry and Trustee of Bhagwan Mahabir Jain Niketan.

Dr. Bhogendra GuragainDirector

Dr. Guragain is also the Chairman of Kathmandu Fun Valley Pvt. Ltd. He is also a Director of Nyadi Group Pvt. Ltd., Down Pikhuwakhola Hydroproject Pvt. Ltd., Barun Hydropower Company Pvt. Ltd. etc.

Er. Bachh Raj TaterDirector

Mr. Tater is also the Chairman of South Asia Infrastructure Development Pvt. Ltd., Riddhi Khola Hydropower Development Company Ltd., Bishal Plasto Cab Industries Pvt. Ltd. He is also a Director of Arun Valley Hydropower Development Company Ltd. Likewise, in capacity of Civil Engineer; he had also been involved for a year at Department of Irrigation, Government of Nepal and involved for 24 years as Chief, Construction Section, Agricultural Development Bank, Nepal.

Mr. Shrawan Kumar GoyalDirector

Mr. Goyal is a renowned businessman of wool and related business. He is associated in wool, carpet and pashmina trading. Likewise, he is involved in real estate and housing sector. He has a long experience in the field of trade and commerce.

AT A G L A N C E G O V E R N A N C E F I N A N C I A L S TAT E M E N TP R O D U C T S & S E R V I C E S S H A R E H O L D E R S ' I N F O R M AT I O N


The bank’s Board of Directors consists of 9 Members, 5 from promoter side, 3 from public and 1 professional. Currently the position of professional director is vacant in the bank.

Mr. Malchand DugarDirector

Mr. Dugar is a renowned industrialist of the country with a long experience in business operation. He is the Chairman of Nasa Hydropower Pvt. Ltd. Also, he is a Director of Pan Himalaya Energy Pvt. Ltd., Global Hydropower Associates Pvt. Ltd., Dugar Food & Beverage Pvt. Ltd., Gurans Life Insurance Company Ltd., Puja Daal Mill, Puja Rice Mill, Mangalam Rice Mill, Shraddha Food Products, Kohinoor Agro Industries and Amrit Pulses Industries.

Dr. Deepak Prasad BhattaraiPublic Director

Dr. Bhattarai is a Professor and founder member of Nepal Engineering College. He is also a visiting professor of Institute of Engineering, Tribhuvan University. He is a member of Academic Council, Pokhara University. He is also involved in the capacity of Advisor at Kist Medical College and Tourism & Hotel Management College. Further, he is a Senior Consultant at Construction Management Technologies Pvt. Ltd. A Ph.D. holder in Delay in Development Project, Dr. Bhattarai has published 3 books and numerous articles in national and international journals.

Mr. Deepak NepalPublic Director

Mr. Nepal is also a Director at Gurans Life Insurance Company Ltd. and has been involved in business administration for several years.

Mr. Jyoti Kumar BeganiPublic Director

Mr. Begani is the Proprietor of Sadhasukhi Enterprises and has an experience of about 45 years in the field of business. Earlier, he was also the Chairman of Nepal Jain Council, Bhagwan Mahabir Jain Niketan-Kathmandu, Shree Jain Shwetambar Terapanthi Shava-Kathmandu and Lions Club of Kathmandu. He is also an Ex-Secretary at World Hindu Federation, Vice President of Nepal China Chamber of Commerce and Industry and an Ex- Vice President of Nepal Electrical Association. He is also a Director of Nandan Ghee and Oil Industries Pvt. Ltd. and Gurans Life Insurance Company Ltd.


With 91% increase in net

profit, Sunrise Bank starts

2015 with a stronger

capital base, stability in

performance and increased

operational efficiency.

91%


Enriching Shareholder’s Value and Customer PartnershipOn behalf of the Board of Directors, I would like to heartily welcome our

shareholders, dignified guests, journalists, executives, staffs and all audiences to

the Eight Annual General Meeting of the Bank.

The FY 2014/15 has been a glorious year for the bank whereby it has increased its net profit by 91% to NPR 471 Millions. We are committed to achieve similar success in the coming years as well. In the review period, total assets of the bank have increased by 26% to NPR 37.39 Billion. Likewise, total loan have increased by 26% to NPR 27.39 Billion and total deposit have increased by 31% to NPR 33.48 Billion on a year to year basis. The bank comprises 2.3% of the total loans and deposits of the commercial banks and is hopeful about increasing this percentage in the upcoming years as well. Although the total loans have increased remarkably, operating profit before loan loss provision has increased by only 11% due to decrease in rate of interest on loans. However, due to recovery of bad loans, the net profit of the bank amounted to NPR 471 Million. Similarly, the ratio of non-performing loans has decreased remarkably from 4.94% to 2.90% during the review period. Further, the capital adequacy ratio is 1.11% above than prescribed by Nepal Rastra Bank thereby proving a remarkable impact in the Balance Sheet.

Although the bank has been able to earn remarkable achievement, the fiscal year has been challenging. Adverse economic and political environment, decreasing interest spread, increasing competition, excess market liquidity and scarce investment remained as a challenge. In addition to this, the disastrous earthquake of 25th April, 2015 has caused huge loss to all sectors including banking arena. However, I would like to inform that there has been minimal loss to the bank’s assets due to earthquake. Despite facing all these challenges, the bank has efficiently carried its operation to provide continuous service to its valued customers. In the process of service expansion, the bank not only introduced new products but has also been successful in expanding two new branches at Lahan and Gaighat. Moreover, I would like to inform that the bank has established its first extension counter at the premises of B. P. Koirala Institute of Health Sciences. The bank shall introduce branchless banking service rapidly in the FY 2015/16.

According to the new policy of Nepal Rastra Bank, the commercials banks are required to raise their paid up capital to NPR 800 Billion by the end of FY 2016/17. Bank has already presented its capital plan to Nepal Rastra Bank as at mid September 2015. We are proud to inform that we have endorsed 21.5% bonus share and 1.13% cash dividend (for tax purpose) for approval as committed by us in

the previous AGM. This shall provide attractive return to our esteemed shareholders as well as help the bank to increase its capital. Likewise, the capital plan of the bank is directed towards merger/acquisition/takeover/joint venture with suitable banks and financial institutions within next fiscal year. Further, the bank has a plan to issue bonus shares and right shares if needed in the upcoming years to increase the paid up capital.

At last, reiterating the fact that the bank has been able to remarkable growth in its transaction during the year; we would like to thank our shareholders and customers who have directly and indirectly helped us by providing valuable suggestion to improve bank’s service facility for the progress and prosperity of the bank. We are also thankful to Government of Nepal, Ministry of Finance, Nepal Rastra Bank, Company Registrar Office, Security Board of Nepal, and Nepal Stock Exchange for their continuous help and direction. Further, we would also like to thank our employees for their continuous support and contribution and the media for their cooperation. We are committed in the future as well to provide better banking services to our valued customers and superior results to our shareholders.

Thanking YouOn Behalf of Board of Directors

Motilal Dugar Chairman

Chairman's Statement

44 111

312 247

471

NET PROFITCAGR: 18.17% (In NPR Million)

10/11 11/12 12/13 13/14 14/15



Positioned for Long Term Success and Sustainable GrowthIn 2014, we achieved a growth rate of 22.6% in deposit resource

mobilization and 30.0% in lending respectively.

CEO's Statement

The bank has performed significantly well during the fiscal year under review. It has attained a growth rate of 22.6% in deposit resource mobilization and 30.0% in lending respectively. The ratios are better compared to the national average of 21% and 22.4% respectively. NPA level has reduced sizably contributing to the profitability. We hope to attain further development in containing the NPA to a more appropriate level. Accordingly, the bank is expected to produce sound growth in business and profitability during the current year as well.

My joining of the bank (mid May 2015) was a period when Nepal has just witnessed massive earthquakes that

has devastating effect both in terms of loss of lives and property. Many culturally important monuments in Kathmandu and elsewhere were flattened. The aftershocks continued for a long time. The impact that has brought about by this among the people in the affected areas as well as in business activities was immense. Taking up the helm of the bank during that period was really a challenging. Before any concrete business plan could be chalked out, another blow to the Nepalese economy has come in the form of blockading of border by India. Nepal being a landlocked country was marred by the shortage of fuel, medicines and all other supplies of daily necessities, including industrial raw materials. Miles and miles of freighters loaded with fuel and other supplies across the border and in the ship yard at Kolkata port caused increase in demurrage and haltage charges. Transport sector could not function and factories could not operate due to lack of fuel. Tourism is hit badly. Black marketing activities flourished to an unprecedented level. Normal lives and economic activities were affected for a long time.

The ultimate impact is bound to come to banking as well particularly in terms of the hardships faced by the borrowers in assuming appropriate level of cash flow cycle, hence impacting their ability to pay the debts. The wait-and-see situation still persists and banking sector is hoping for some positive thing to happen at the earliest.

In July, while making the Monetary Policy public for the current fiscal period, Nepal Rastra Bank (central bank) has announced requiring the bank and financial institutions to plan for their Capital increment by as many as 4 folds within next 2 years. Commercial banks’ minimum paid up capital requirement has been set at Rs. 8,000 million. The central bank has preferred mergers of BFIs in the process of fulfilling the regulatory minimum paid up capital requirement. Sunrise bank is not spared. We have submitted a capital plan in line with the directives keeping both the options, to raise the capital from within the existing stakeholders and/or exploring the merger/acquisition with another institution/s, open. Some exercise in this direction has already begun.

The paradigm has shifted significantly in Nepalese banking due to above developments.

Excess liquidity persists in the industry, and being in such a state for quite long period. The issue has aggravated further owing to the squeezed opportunity available to place the excess funds for a return. Nepal is yet to develop matured capital and money market. Banks have to depend largely on the government treasury bonds, which owing to the inaction of the government in appropriately carrying out its developmental spending, has virtually stalled market borrowing. This has resulted pushing the market interest rates for short term treasury bills below 1% p.a. The situation has

With a balance

sheet size of 37.38

Billion, Sunrise is

well capitalized and

positioned for the

future growth amidst

all the market shocks.

37.38 b



prevailed since last 8 years with no signs of recovery. An imagination as to how much the banking industry has lost revenue due to this has already lost relevance.

Despite the negative scenarios touched upon above, we still assume an optimistic view regarding the possible growth in economic activities. Nepal has a large unbanked population and hence provides scope for expanding banking activities in various areas/ sectors actively moving from the traditional banking facilities to the most advanced digitalized services. We remain aware of the fact as to the challenge in growing the outreach and improving the services. Recently, we are able to launch a Home Loan product imbedded with endowment life insurance policy, which is being received well by the market throughout the country.

I would like to use this opportunity to especially put on records my appreciation to all executives and staff members of the bank for their untiring efforts in ensuring quality services. The staff training activities has received renewed focus. Our understanding and vision has been that a well trained knowledgeable staff would always remain the best asset of the organization. The drive to push through such training activities will continue.

I would also place on record my appreciation and gratitude to the Board of Directors as well as the regulators, especially Nepal Rastra Bank, for the guidance and support in our endeavour.

Ratna Raj Bajracharya Chief Executive Officer


Management Team



FROM LEFT TO RIGHT

Mr. Robin Nepal - ASSISTANT GENERAL MANAGER

Mr. Ratna Raj Bajracharya - CHIEF EXECUTIVE OFFICER

Mr. Apachh Kumar Yadav - DEPUTY GENERAL MANAGER

Mr. Arun Parajuli - CHIEF MANAGER

Ms. Asha Rana Adhikary - DEPUTY GENERAL MANAGER

Visionary & Goal Driven TeamOur endeavor to envisage

customer needs has

enabled us to achieve our

goals and pave a path for

future opportunities and

competitive advantage.


Management Team

Ratna Raj BajracharyaChief Executive Officer

Mr. Bajracharya joined Sunrise Bank Ltd. as Chief Executive Officer on May 2015. Just before joining the bank, he had been working as Chief Executive Officer of Global IME Bank Ltd., another Class “A” commercial bank, where he worked for 4 years. He also successfully completed his tenure as Chief Executive Officer in yet another Class “A” commercial bank of the country, namely, Nepal Credit and Commerce Bank Ltd. in the past. He also worked at Nepal Bank Ltd., a government-private sector joint venture bank and the oldest bank of Nepal, under management contract, as the Chief Financial Officer. Initially, he began his career with Nepal Rasta Bank, the central bank of Nepal, where he spent 20 years in different capacities. Mr. Bajracharya holds an experience of over 40 years of experience in the banking sector of Nepal.

A senior Chartered Accountant, Mr. Bajracharya has also served as the president of the Association of the Chartered Accountants of Nepal, president of Institute of Chartered Accountants of Nepal, director of Securities Board of Nepal etc.

Asha Rana AdhikaryDeputy General Manager

Mrs. Asha Rana Adhikary possesses 30 years of banking experience. Her first career started as an Accounting Assistant at Stanford University, California, USA in the year 1985 and subsequently as a Joint Account Officer at Rastriya Banijya Bank Ltd., from 1988 to 1993. During this period, she had also worked with ERNST and YOUNG in 1990 under the aegis of Commercial Bank Problem Analysis and Strategy Study (CBPASS) in 1990, and with BOOZlALLEN & HAMILTON in 1992. Later, she worked from the position of Senior Officer to Senior Manager at Himalayan Bank Ltd. from December 1993 to September 2007 before starting her career at Sunrise Bank Limited. Mrs. Adhikary joined Sunrise Bank Limited in September 2007 as Assistant General Manager, and had also worked for Opening of Sunrise Bank.

Ms. Adhikary had attended several professional training programs and had imparted several such trainings too. She had attended ‘Program for Cross Cultural Management (PCCM) in Tokyo, Japan conducted by AOTS, Japan in 2004. She had also attended Bank Management Course (BMC) in Stockholm, Sweden in 1991, including its Follow-up Asia Program in Philippines in 1999.

Mrs. Adhikary is a Gold Medalist, First Class First in Nepal in Masters of Business Administration having honored by Mahendra Bidya Bhushan Gold Medal and Nepal Bank Limited Sardar Gunjamansingh Gold Medal. She also secured First position among the Girl candidates in Nepal in Certificate Level - Intermediate and honored by Aishorya Bidya Medal. She was awarded with King Birendra-Aishorya Scholarship for pursuing Bachelor in Commerce studies.



Robin NepalAssistant General Manager

Mr. Robin Nepal started his carrier with Sunrise Bank Ltd.since November 2009 as a Chief Manager. He also served as a Deputy Manager; Head-Risk Management Department at Himalayan Bank Ltd. Mr. Nepal has a rigorous banking experience of about 2 decades and served various senior management roles in corporate lending and risk management. He has also served at Nepal Grindlays Bank Ltd. He holds a degree of Masters in Business Administration.

Mr. Nepal has attended various professional trainings inside and outside the country. He obtained training on Integrated Risk Management from B.D.P. Consultants, Pune and Centralization of Trade Finance from Habib Bank, Karachi. He attended seminar in International Banking, Commerzbank Frankfurt; program on Project Finance, Reserve Bank of India and many other professional trainings.

Arun ParajuliChief Manager

Mr. Arun Parajuli started his carrier with Sunrise Bank Ltd. since December 2010 as a Senior Manager. He served as a Treasury Specialist at Agriculture Development Bank Ltd and as a Chief Financial Officer at Afghanistan International Bank. He also served as a Manager-Treasury & Finance at Nepal Industrial & Commercial Bank Ltd. He served as an Assistant Manager at KPMG/Nepal, TR Upadhya & Co for about seven years. He holds a degree of Masters in Business Administration.

Mr. Parajuli attended training workshop on US Government Auditing Standard imparted by Regional Inspector General for Audit, Singapore; training on International Corporate Finance & Risk Management of Financial Institution organized by Indian Institute of Management Bangalore; training on Financial Institution Group organized by American Express Bank, Frankfurt; training on Derivatives organized by ICICI Bank, India.

Mr. Parajuli has been a member of Association of Chartered Accountants of Nepal; Banking Promotion Committee, Central Bank, Nepal; Foreign Exchange Dealers Association of Nepal and Accord Implementation Group (AIG), Central Bank, Nepal.

Apachh Kumar YadavDeputy General Manager

Mr. Apachh Kumar Yadav served Sunrise Bank Ltd. since July 2015. He also served as an Assistant General Manager at Machhapuchchhre Bank Ltd., Deputy Manager at Nepal SBI Bank Ltd. and Deputy Chief Credit Officer at Nepal Bank Ltd. Mr. Yadav was also the Member of ICC Management Team for the restructuring of Nepal Bank Ltd. under the Financial Sector Technical Assistance Project. He also served as an Accounting Consultant for "The Private Sector Support Program"- A World Bank Project. He served as a Group Coordinator for the Special Audit & Accounts Reconstruction Work in "Rastriya Banijya Bank Account Reconstruction Project". He was also Business Process & Portfolio Management Specialist in Agricultural Development Bank Ltd.

A well-known Chartered Accountant, Mr. Yadav secured third position in Bachelors in Commerce, Tribhuwan University and forth position in Intermediate in Commerce, Tribhuwan University. He has wide experience in audit of commercial banks, finance companies, insurance companies, hotels and manufacturing companies.


Corporate Event



Customer at the Core

Sunrise keeps the customers at the core of its

business. With the vision “YOU & US, Together We

Can Build”, the Bank has focused its vision upon its

customers and has architect products and services

to best suit the needs of its invaluable customers.


Board Level CommitteeThe Board comprises of a Chairman, four directors from promoter’s

group and three public directors representing the public shareholders

as per the provision of Company Act 2063.

The Board meets on a periodic basis to ensure that the corporate governance standards are met as prescribed by the regulatory authorities. The CEO ensures that the daily banking activities is carried with compliance to all the applicable laws and principles of corporate governance.

The Board of Directors has expertise in different fields like financial institutions, manufacturing, trading, automobile, hydropower, real estate and educational institutions etc. Through these varied expertise and experience, the Board of Directors give valuable contribution in forming corporate strategies, reviewing the bank’s performance, instigate remedial measures as and when necessary.

BOARD LEVEL COMMITTEES

As per the provision of the Unified Directives of Nepal Ratsra Bank, the Bank has three board level committees relating to audit, risk management and human resource management.

AUDIT COMMITTEE

In convenorship of non executive director, the two member audit committee regularly reviews the financial condition, internal control

system, risk management and audit of the bank. The committee provides necessary suggestions to the management and the Board of Directors based on the remarks given by the internal audit, external audit and bank supervision department of Nepal Rastra Bank.

The composition of the audit committee is as follows:

Company Secretary Mr. Ishwar Kumar Pathak is the secretary of the audit committee while our external auditor LDSA Associates is also the member of audit committee.

The key responsibility of the audit committee consists of:

1. Review the quarterly financial statements of the Bank in line with the observations of the management, internal auditor and external auditor to ensure that the statements generated are accurate and complied with the financial reporting standards.

Shankhar Prasad Dahal 5/9 40,000

Malchand Dugar 7/9 50,000

Deepak Nepal 1/9 8,000

Deepak Prasad Bhattarai 9/9 66,000

NAME ATTENDANCE FEES

2. Review the remarks made by the auditors and regulatory body so as to take corrective actions as prescribed for the effective internal control mechanism.

3. Review the operation of the bank to see its compliance with the pertaining laws and regulatory requirements for commercial banking.

4. Review the effectiveness of risk management system in terms of operation risk, market risk and credit risk along with the remarks from the internal and external auditors.

5. Administer the compliance function of the Bank for the prudent control and risk management system.

6. Review the reports/remarks provided by internal auditors, external auditors and regulators and see whether or not there has been successful implementation as per the recommendations provided.

7. With regards to the qualification, independence and performance of the external auditors, recommend to the Board for the appointment of the external auditor including audit fee.

8. Review the Audit Committee Charter annually and propose any amendments found necessary to the Board of Directors.



Shankhar Prasad Dahal 2/2 16,000

Deepak Prasad Bhattarai 2/2 16,000


Head of the Risk Management Committee is the member secretary of the committee while Operation Division Head is the member of the committee.

The key responsibility of the risk management committee consists of:

9. Carry out all other duties as per the regulatory requirements or as prescribed by the Bank.

RISK MANAGEMENT COMMITTEE

The membership and Coordinator of RMC is determined from time to time by the Board. RMC consists of minimum three and maximum five members. Audit Committee Coordinator shall remain as Ex Officio member of RMC. Operation Division Head shall remain RMC member and Head RMD shall remain as member secretary.

Risk Management Committee monitors and provides recommendations to the Board on the business risk strategy, monitor the alignment of risk profile with risk appetite as defined in the Board Statement of Risk Appetite, ensure that the bank maintains an appropriate level and quality of capital and liquidity in line with the risks inherent in its activities and oversee the identification, management, monitoring and reporting of risks inherent in bank’s operations.

The composition of the risk management committee is as follows:

1. Approve from Board, Statement of Risk Appetite and review and monitor the risk profile of the bank for consistency with Board Statement of risk appetite.

2. Oversee the internal capital adequacy assessment process.

3. Review and monitor capital levels for consistency with bank’s risk appetite.

4. Review and approve bank’s Credit Risk Management Framework.

5. Review and approve key policies and associated risk concentration limits supporting bank’s Credit Risk Management Framework, including policies for the internal credit risk grading system, managing large exposures and industry concentration.

6. Review the approved limits and conditions that apply to credit risk approval authority delegated to the Chief Executive Officer and any other officers of the bank to whom the Board has delegated credit approval authority.

7. Review the credit risk profile, performance and management of bank's credit portfolio, including portfolio asset quality, portfolio concentrations, provisioning levels, bad debt recovery and internal risk grading system.

8. Review and approve bank’s Market Risk Management Framework, Liquidity Risk Management Framework and key policies and limits supporting the framework.

9. Review the monitoring of bank’s market risk performance and exposure against limits.

10. Review and approve the funding plan for the bank and oversee management’s monitoring of that plan.

11. Oversee and approve the internal liquidity adequacy assessment process and stress testing results, including approving liquidity targets and limits.


Bachh Raj Tater 6/6 48,000


Head of the Human Resource Department is the member secretary of the committee while Head of Accounts is the member of the committee.

The key responsibility of the HRMC committee consists of:

1. Review the HR policy if the bank such that it aligns with the business strategy of the bank.

2. Review the remuneration strategy of the Bank and recommend to the Board for the endorsement.

3. Give recommendation to the Board for the revision of the remuneration of the CEO and all other employees

which governs all the operational and behavioral activities within the bank.

Remuneration and other Committees of BoardThe details of the various meetings and its respective fees are as follows:

Motilal Dugar 31

Bhogendra Guragain 31

Bachh Raj Tater 30 6 3

Shrawan Kumar Goyal 31

Malchand Dugar 24 7

Jyoti Kumar Begani 2

Shankhar Prasad Dahal 16 5 3 2

Deepak Prasad Bhattarai 25 9 2

Deepak Nepal 30 1

TOTAL FEE 1,792,000 164,000 48,000 48,000 32,000

ATTENDANCE NAME OF DIRECTOR BOARD MEETING AUDIT HRMAC SUB RISK COMMITTEE COMMITTEE COMMITTEE

Human CapitalIn line with the stringent corporate governance that the Bank complies to, the human capital of the bank is mobilized to optimize the profit though efficiency in operation and efficient utilization of the organizational resources. Human capital is directed in a manner to meet the set objective of the bank and maximize the returns to all our stakeholders. Apart from this, Human capital being the most important asset of the bank, they are headed for successful operation of the bank thereby mitigating organizational risk and bound by high level of corporate governance.

Communication to Shareholders & StakeholdersTransparency and access to information is instilled within the core values of the bank. Hence, we disseminate timely and accurate information required by all our stakeholders and shareholders through our Annual Report, bank’s official website, published notices, press

12. Review the monitoring of the bank’s liquidity position and requirements.

13. Review and approve bank’s Operational Risk Management Framework and key operational risk policies.

14. Review the monitoring of the performance of operational risk management and controls.

HUMAN RESOURCE MANAGEMENT COMMITTEE

The Human Resource Management Committee (HRMC) is formed as per the unified directives of Nepal Rastra Bank. The committee is involved in forming overall HR strategy aligned with the business strategy of the bank.

The composition of the Human Resource Management Committee is as follows:

in line with the prevailing rules and regulations.

4. Develop succession plan for the CEO and key management positions through the assessment of possible

replacements from internal and external sources.

5. Review and update job descriptions, key performance indicators, self appraisal and performance appraisal system.

6. Formulate packages for attraction and retention of staffs for better performance.

7. Review and update if necessary the policies relating to recruitment and selection, transfer, performance appraisal and reward management.

Ethics and ComplianceSunrise bank has a set standard of ethics which is followed by all the members for the operation of the overall business. Further, the bank has zero tolerance on the compliance issues and abides to all the requirements set by the regulatory authorities. Work ethics, norms and culture at Sunrise is duly inculcated by all the employees at all level



conference and reporting to all the statutory bodies and other government offices as and when required.

Management Review and ResponsibilityThe management committee comprising of the management is highly responsible for maintaining high level of corporate governance in the bank. The management committee not only sets the standard but also monitors the overall banking activities as an internal control mechanism. The management committee devises policies, practices and procedures relating to all areas of operation. The management oversees that the assets of the bank is protected, the bank complies with all the laws, regulatory requirements and compliance issues and the internal control mechanism is maintained.

RISK MANAGEMENT & CONTROL ENVIRONMENT

The Bank follows a prudent risk management system so as to minimize the risk of loss. The banking system has been prone to various risks in the later days. However, to mitigate the risk while we carry our financial transactions, we have adopted various internal control mechanisms in the best possible way to minimize the risk generated.

CREDIT RISK

Credit risk is the risk that a borrower is unable to meet its financial obligations to the lender. As we are a deposit mobilizing institution, we are highly protective about our depositor’s fund. At Sunrise, we are guided by our credit manual, credit policy guideline and internal risk grading system for sanctioning any loan. Besides this, we fully comply with the policies

and guidelines as prescribed by our regulating body- Nepal Rastra Bank in terms of single obligor limit, credit concentration in terms of sector lending.

We have a standardized credit approval process including well established procedure of comprehensive credit appraisal and rating. Further, we also have an internal risk grading system for rating our obligors as well as products/facilities which takes into consideration both the qualitative and quantitative issues and credit enhancement features specific to the transaction. This internal rating serves as a key input in the approval as well as post approval process and is reviewed periodically. The relationship officers and approving bodies are constantly updated with industry knowledge through site visits, interaction with clients and industry experts.

The credit policies are reviewed on a periodic basis and necessary changes are made as and when necessary. With regards to this prudent risk management system at Sunrise, the bank has been able to decrease its NPA remarkably to 2.90% (4.94% last year) with the commendable work from our loan recovery department.

MARKET RISK

Market risks is the potential of erosion in income or market value of an assets arising due to change in market variables such as interest rate, foreign exchange rate, equity prices and commodity prices. These risks are more responsible to reduce bank’s profit and the market value of its portfolio. Most of the risk associated with Sunrise bank is foreign exchange rate fluctuation and interest rate fluctuation risks.

For minimizing the foreign exchange rate fluctuation; the bank holds Square

FCY position at the period of volatility in exchange rates and hedging of foreign currency through forward contracts. Interest rate risk is always a major risk associated with the banks. Sunrise bank continually monitors the factors affecting interest rate, and the customers are informed accordingly. The control mechanism includes information system for reporting exposure, open position limits, dealing authorities for individual, independent settlement function, daily mark to market valuation and periodic review of policy and assumptions.

The market risk is managed through asset liability management policies approved by the Asset-Liability Management Committee (ALCO) of the Board of Directors and the policies for investment portfolio. The committee stipulates liquidity and interest rate risk limits, monitors risk levels by adherence to the set limits and determines business strategies in the view of current and future expected business environment. Further to this, the investment policy of the bank addresses issues related to investment in different investment products and is approved by the competent authority.

Sunrise bank uses various tools for measurement of liquidity risk including the statement of structural liquidity, dynamic liquidity gap statements, liquidity ratios and stress testing. The Bank maintains diverse sources of liquidity to facilitate flexibility in meeting funding requirements. Incremental operations in the domestic market are principally funded by accepting deposits from retail and corporate depositors. The deposits are augmented by borrowings in the short-term inter-bank market and through purchasing the treasury bills issued by Nepal Rastra Bank.

The interest rate risk is measured through re-pricing gap analysis and


duration analysis. Also, the liquidity risk is measured through gap analysis. The bank maintains adequate liquidity at all times through proper funds planning and maintenance of liquid investment as well by focusing on more stable funding sources such as individual deposits.

The exchange rate risk is mitigated by stipulating stop-loss limits and position limits. The Treasury monitors the asset liability position. Further to this, Treasury determines compliance with various exposures and dealing limits, verifies accuracy of transactions, confirms these transactions, tracks daily fund positions and all treasury related management and regulatory reporting.

OPERATIONAL RISK

Operational risks are those risks associated with failed internal processes, people or system, or from external events. Operational risk includes legal risk but excludes strategic and reputational risks. Operational risk is inherent in the bank’s business activities and covers a wide spectrum of issues.

Operational risk can result from a variety of factors, including (but not limited to) failure to obtain proper internal authorizations, improperly documented transactions, failure of operational and information security procedures, computer systems, software or equipment, fraud, inadequate training and employee errors. Operational risk in Sunrise bank is managed through a comprehensive system of internal controls, systems and procedures to monitor transactions, key backup procedures and undertaking regular contingency planning. The control framework is designed based on categorization of functions into front-office comprising business groups, middle office comprising credit and treasury middle offices, back-office comprising operations, corporate and support functions. The independent reconciliation department, Transaction Stack System, MIS reports, Independent Internal Audit and Disaster Recovery Server are some of the effective mechanisms to minimize operational risk.

COMPLIANCE RISK

Compliance Risk is the risk resulting from non-compliance with laws and regulations and lack of adequate documentation to demonstrate compliance and risk from failure to comply with financial reporting standards, agreements or regulatory requirements. The main Compliance Risk components are generally referred to as:

n Regulatory n Financial Reporting and n Legal Risk

Sunrise Bank constantly monitors and mitigates compliance risk through the adoption of appropriate policies and timely reporting as per the regulatory requirements. There is a separate Compliance Department to inform the staff about the regulations to be followed in daily practice and carrying out the banking transactions. The department also confirms that regulatory norms are complied properly.



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Human Resource Management

Human capital is the most invaluable assets of our bank. We recruit, nurture

and retain the best pool of human capital for the success of our bank. At

Sunrise, we meet our organizational goal thereby fulfilling individual and

professional goals of our employees.

We follow the policy of equal employment opportunity and hence our divergent employee base has been successfully serving our divergent customers. Our HR Department has been consistently working for the betterment of the employees and hence the HR policies are periodically revised as and when necessary

TRAINING AND DEVELOPMENT

The HRD at Sunrise keeps its priority in providing necessary training and development opportunities at all levels of our employees. Various in-house, external and overseas training programs are conducted round the year to upgrade the potential of the employees. Training assessment in carried out prior to conducting training such that the employees get relevant training as per their job requirement and personal need.

SUCCESSION PLANNING

Succession planning is the recruitment, development and retention of prospective employees to fill the key roles within the organization. The bank’s

succession planning is in line with the strategic objectives of the bank such that the future leadership position does not remain vacant and the employees are hand ready to fill the vacant roles when required.

HEALTH AND SAFETY

Employees health and safety is a major HR concern at Sunrise. Since the physical and mental well being of the employees is a must for the long term viability of the organization, the bank responsibly maintains work life balance for its employees. The working environment and the equipments used in the office are sound and safe. Further to this, the bank has a provision of comprehensive medical/accidental/life insurance for staffs with the coverage of critical illness.

TRANSFERS

Transfer of the employees is planned in a way to fill the vacant position by an appropriate staff. Transfer is planned not only to fill the vacant positions but also to provide career development opportunities to the staffs through job

rotation process. This also helps to make the organization self sufficient in the long term.

EMPLOYEE PERFORMANCE MANAGEMENT

Individual level of performance management is ensured so those employees perform at the best of their capacity. Performance appraisal is a critical tool to assess employee performance and productivity on a periodic basis with reference to the pre set standard of the organization. The performance appraisal process at Sunrise is fair and transparent. The evaluation is carried out on the basis of the achievement of the key performance indicators, job knowledge, quality of work; communication, delegation, problem-solving skills; innovation, leadership and integrity, etc

EMPLOYEE RELATIONS

Effective ways of handling employee relationship produces better employee relations at Sunrise. As it’s component, proper grievance procedure is to allow employees an immediate means by



Executive Level 4 1 5

Management Level 26 3 29

Officer Level 61 16 77

Assistant Level 150 119 269

Others 62 2 64

TOTAL 303 141 444

LEVEL (EXCLUDES OUTSOURCED) MALE FEMALE TOTAL

which a grievance relating to their work can be handled or resolved which is taken care at Sunrise. Thus for an organization, a grievance cell becomes necessary to eliminate the possibility of any detrimental effects arising out of unresolved grievances.

Grievance CellThe has been established as an independent body under human resource department has been established at the bank where the staffs can lodge their complaints/grievances directly through a formal process. The cell provides the employees the opportunity to resolve their job related grievances immediately.

EMPLOYEE DEMOGRAPHY

The Bank employs more than 400 permanent employees and 200 contract & outsourced employees. Based on the operation, certain employees are outsourced for cost benefit and productivity.


Products & Services

Lending Products

To cater to the financing needs of our diverse clientele base, Sunrise Bank has

designed wide range of lending products for individual and corporate customers.

The bank has hence been able to mobilize funds in productive sector thereby

contributing to the national economy.

SUNRISE HOUSING LOAN PRODUCTS

Owning a home is a dream of many of our customers. With the aim of being a platform to their dream home, Sunrise Bank provides home loan for purchase, construction and extension. Based on EMI, the home loan products are offered at a market competitive rate such that our valued customers can own a home of their own with a less financial burden over a period of time.

SUNRISE SURAKSHIT GHAR KARJA

With the devastating earthquake of 25th April, the demand for insurance product has surged up. Sunrise Bank offers a unique home loan product tied up with endowment life insurance policy. This product is being offered to the customers for the first time in Nepalese banking sector. Under this loan scheme; each borrower will have life insurance policy commensurate with the loan amount and tenure of the house loan. The life insurance partner for this type of loan is Prime Life Insurance Company Limited. This

scheme of the loan provide life insurance provision to the borrower throughout the loan tenure and borrower’s family need not to bear burden of the loan if any unwanted happen to the borrower.

In this scheme, if the borrower died, nominee will get an extra amount equal to the sum assured or Rs. 30, 00,000 whichever is lower. In case of permanent disability by accident, premium will be waived equal to the sum assured or Rs. 30, 00,000 whichever is lower.

The product has been a successful venture for the bank. Over a short period of time we have a portfolio of more than 247 millions in the category.



SUNRISE HIRE PURCHASE LOAN

The obsession for a personal vehicle has increased in the Nepalese society over a decade. Addressing to this need of our customer, Sunrise Hire Purchase Loan provides loan to the customers by pledging the vehicle in the bank’s favor. The customers can avail this loan to purchase a brand new vehicle or a used vehicle both for personal and commercial purpose.

As the product is designed in a way that the customer can purchase varied range of vehicles ranging from high to lower range, thus the product is successful in meeting the needs of our divergent customers.

SUNRISE AGRICULTURE LOAN

Named as Sunrise Krishi Karja, the agriculture loan is one of its kinds in banking fraternity targeted mainly to lower and middle class individuals engaged in agricultural occupation, based on agro trading/ industries and other related to agricultural sectors. As the major portion of Nepalese population are engaged in agriculture, it is believed that Sunrise Krishi Karja will help in uplifting the income of medium and lower class farmers as well as the national economy in long run. This Sunrise Krishi Karja supports the medium and small farmers to invest their efforts in cash crops and further helps in professionalizing agro business in the nation. Sunrise Krishi kaja further supports the nations in becoming self-reliant in agro products and minimizing the agro imports.

SUNRISE SAJILO KARJA (PERSONAL LOAN)

This product is a very simplified loan product whereby the customers can avail the loan to meet their personal and social obligations by mortgaging fixed assets collateral. The repayment schedule and loan tenure for the product is convenient and hence is an attractive product for our customers. This product can be availed either on a revolving or a non revolving basis depending upon the requirement of the customer.


CORPORATE BANKING

Sunrise bank provides different types of loan to the corporate/ business customers. To provide help to the business/ corporate customers to build up their stock and receivables to a desired level; Sunrise bank introduced Demand loan facilities. Period of repayment will be at the duration agreed by the borrowers at the time of application justifiable by his/ her business activities.

Sunrise bank finances the requirements of customers/ borrowers to acquire fixed assets or in an existing project on fixed term loan scheme. This is a long term loan and is generally available for acquiring or purchasing machinery, equipment, land and building. The tenure of repayment of the loan is based on the project's duration and the estimated/ existing cash flow of the customers/ borrowers.

Sunrise bank provide import loan to finance domestic and international trade transactions through letter of credit (LC). Bank finances to import the goods in the form of trust receipt up to a percentage of the total L/C amount as decided by the Management. As well as Sunrise bank offers overdraft loan to finance the daily working capital requirements and to support stock build up of the customers.

Sunrise bank offers short term pledge loans against the stock after verification. The stock, however, is kept under lock and key of the Bank and the loan disbursed and settled in pro rata basis with the stock pledged and sold. As well as the bank offers to finance various export requirements such as pre-shipment loan and post-shipment loan, documents negotiation/ documentary bill purchase etc.

There are other several loan facilities for the business corporations and Sunrise bank believes that, the operation of business corporations are becoming easier with the loan facilities offered. Sunrise bank also provide consortium loan to the big projects too. For this purpose, bank provides fixed term loan as well as working capital loan. Consortium Loans are extended for the establishment, capacity addition, up-gradation of existing facilitates as well as acquisition/ takeover of existing facilities. The loan can be extended to manufacturing as well as service sector. The Bank shall participate in consortium financing as a Lead Bank or a Joint /Co- Lead Bank.

SMALL & MEDIUM ENTERPRISE FINANCING

SME’s are the foundation of Nepalese economic development as well as they provide platform to employment generation. They are an important constituent supporting the growing requirements of a rapidly changing economy. The Bank believes that to enable development and growth, appropriate levers need to be provided to strengthen the SME sector.

The Bank, offers a full suite of banking products and solutions to SMEs for meeting their business and growth requirements. The Bank’s experience in partnering with SMEs has enabled it to develop non-traditional techniques for assessing credit risk and providing appropriate solutions distinct to their needs. The Bank also offers supply chain financing solutions and funding to the channel partners of large corporate. The Bank has set up dedicated desks in all of the 53 branches catering to SMEs and has specialized teams for current accounts, trade finance, cash management services and doorstep banking. The Bank continued to pursue a strategy of calibrated growth of the SME portfolio with higher focus on managing concentration risks, diversification of portfolio, monitoring and enhancement of collateral.



DEPRIVED SECTOR AND HYDRO POWER FINANCING

Deprived sector lending refers to small loans that are provided to the underprivileged and rural people for small projects. The loans are supposed to be a measure used by the central bank to promote financial inclusion and establish the habit of formal banking in the rural and poor areas. According to the monetary policy 2014/15, commercial banks have to lend 4.5 percent of their total loans to the deprived sector. And Sunrise bank was able to provide deprived sector loan in two forms. They are corporate deprived sector lending and individual deprived sector lending.

The project finance environment continued to remain challenging during current fiscal year 2014/15 largely due to a slowdown in new project commitments by corporate, coupled with implementation and operational issues affecting ongoing project investments. The major interest of investors is contained within hydropower sector, and hence Sunrise bank also invested in hydropower sector.

Deposit Products

As a deposit mobilizing organization, Sunrise Bank

provides a range of product within saving, fixed,

current and call deposit to cater the diversified needs

of individual and corporate customers. The products

range from non interest bearing account to normal

savings and high yielding fixed deposit.

FIXED DEPOSITS

Sunrise Fixed Deposit Accounts provide the depositors with higher interest at the rates agreed upon the time of opening the fixed deposit. The rate of interest paid for fixed deposit varies according to the maturity period of the fixed deposits.

The depositor is given a fixed deposit receipt, which depositor has to produce at the time of maturity and the deposit can be renewed for a further period. The major purpose of fixed deposit account is to enable the individuals to earn a higher rate of interest on their surplus funds or extra money. The depositors can earn higher interest from such account and the bank can get longer period of time for investment. The customers can also avail loan against such fixed deposit receipts.


SAVING DEPOSITS

Catering to the different saving purpose of the customer, Sunrise has designed different products for its diverse range of customers.

Sunrise Pink Bachat Account targets women customers taking into account their unique banking habits that may help them increase their access to productive resources.

Remittance Sunrise Bank has designed its remittance service “Suryodaya Remit” –a web based online money transfer product to facilitate the transfer of funds by Nepalese expatriates living in foreign countries as well as for the domestic transfer of funds. With the pool of dedicated staffs placed in the Remittance Department, the bank has been providing unparalleled service to its customers.

The bank has a huge network of more than 1,200 payout locations spread all over the nation. Also, the bank has remit partners like International Money Express (IME), Prabhu Money Transfer, City Express Money Transfer, Best Remit, SDBL Trust Remit, Net Remit Pvt. Ltd., CG Money Remit, Reliable Remit, Easylink Remittance, MoneyGram Money Transfer and Western Union Money Transfer.

Suryodaya Remit has its presence in various countries around the globe like Baharain, Israel, Italy, Japan, Kuwait, Malaysia, Oman, Qatar, UAE, UK, USA and Korea. The bank has also entered into an agreement with “Indusland Bank” to provide remittance service to the non residential Nepali living in India. The bank further aims to increase its network in all geographical regions within and outside the nation in the days to come.

The Normal Savings Deposit is meant for those individuals and households who have the habit of saving hard-earned money from their regular earnings so that they can use it when they require. With no limitation in deposit and withdrawals, the product provides emphasis on personalized services to the customers. As well as, the bank also have the deposit scheme for those having high account turnover.

Sunrise Super Savings Account is a product targeted to customers with high account turnover.

Sunrise bank offers Senior Citizen Deposit Account for those individual customers of 50 years or and above. This product is an endeavor by the Bank to understand the senior citizen's need and facilitate them with banking services and facilities to suit their requirements. With no limitation in deposit and withdrawals, the product provides emphasis on personalized services to the customers. This account provides higher rate of interest as compared to normal saving account. Further, this sort of account gets discount in the other services provided by the bank, free ABBS, cheque book and e-banking facilities.

Sunrise Fat Savings Deposit offers highest interest rates. The product targets interest sensitive customers who also give priority to attractive features that come along with the product. This is the special product of Sunrise bank, and is accumulated with higher interest rate with all the features of normal saving deposit.

Sunrise Exclusive Bachat Khata a special savings deposit product has been designed to cater to the needs of Exclusive clients. The product addresses the needs of those clients who wish to have comparatively higher interest rates in any of the Savings Products.



Card & E-Banking Products and Services

Our cards and e-banking services are backed up by top notch technology to provide

convenient banking solution to our customers at any hour from any place.


INTERNET BANKING

Internet banking service connects you safely to your bank account anytime, anywhere. You may perform banking transactions electronically without visiting the bank premises. Sunrise online banking inhabits many of the banking activities which previously that could only be performed by visiting the bank.

Sunrise bank provides several internet banking facilities

n Balance Enquiry n Statement n Interest Statement n Fund Transfer to Other Account n Fund Transfer to E-sewa n Utility Payment [NTC/Ncell]

SUNRISE M-BANKING

The increasing trend of mobile users in the country and increasing services of telecommunication provider companies provides the market for use of application in commercial sector; and banks are also using mobile application for conducting their day to day operation and to make easy for the customers. This mobile banking service is able to save the time of the customers and provide several facilities.

Customers can make enquiries for your bank balance, or transfer funds to any accounts; pay your utility bills, recharge the mobile phones and much more just by a click from their Mobile Phone.

Sunrise bank presents M-Banking to the customers. Customers can download the Sunrise bank mobile application and enjoy the facilities provided by the application.

SUNRISE VISA DEBIT CARD

Sunrise Bank offers a world of convenience through its VISA Debit Card. Sunrise VISA Domestic card can be used in any of the Visa ATMs and Visa Merchant locations, both in Nepal and India. Similarly, Sunrise VISA International can be used in any of the VISA ATMs globally. The card system at Sunrise is backed up by advanced technology infrastructure and hence is secure and convenient to use. The VISA card can be used at point of sales for payment purpose.

Card & E-Banking Products and Services



SUNRISE SIGNATURE LOAN

Innovation in product is always a priority at Sunrise. Removing the hassle of mortgaging fixed assets collateral for the bank financing, Sunrise Signature Loan is provided on the basis of the reliable/ steady income and net worth of the customer.

The loan is provided to the customers for a legitimate purpose like medical treatment, meeting domestic or foreign travel expenses, meeting educational expenses, weeding expenses, purchase of home utilities and meeting various personal and social obligations.

Since the loan can be availed without any fixed assets collateral, the product is targeted to high creditworthy individuals with a stable source of income working at reputed corporate houses, government & government agencies, banks and financial institutions, NGO/INGO, self employed professional doctors, engineers, chartered accountants etc.

The processing of the loan is hassle free & prompt and hence is an attractive and innovative product.

FINANCIAL ADVISORY CELL

LOCKER

Sunrise Safe Deposit Locker is facility furnished to the individual and institutional customers who prefer to safe deposit precious gems & jewelries and important documents to evade the probability of increasing theft, burglary and fire. The Safe Deposit Locker has been the first choice for the safest custody of the valuable goods with flexibility of time to store and take away when required. The Bank has varied sizes of Safe Deposit Locker to select from. Lockers facility can be availed from selective Branches of the Bank.

A financial advisory cell

under the Risk Management

Department is planned

to be set under the Risk

Management Department

of the bank. The primary

objective if the Cell is

to take up special tasks

in educating the SME

customers on business

finance and working capital

management. The Cell is

planned on a self sustaining

basis charging nominal

fee for providing advisory

services to the customers.

The advisory cell is aimed

to create awareness among

the borrowers on enhancing

their knowledge in bettering

their financial management.

The financial advisory cell

helps the customers to

make strategic financial

decisions so as to reduce

the chance of business

failure. The cell helps in

the area of costing and

budgeting, cash flow

and working capital

management, financial

management etc. Thus, with

this advisory service, the

customers would be able

to choose the most suitable

credit facility for meeting

their funding requirement.


Corporate Social Responsibility

As a corporate citizen of the country, bank has set high priority to Corporate Social

Responsibility. The bank believes in giving back to the society.

The bank has been involved in different activities like Blood Donation Program, Cleaning Program, Awareness Program and Eye Camp. Following are some of the major social responsibility initiatives during the review period:

n Provided financial assistance to the Fellowship Society Nepal for the table-tennis training camp for the visually impaired children.

n Provided financial help to the Differently Able Youth Organization (DAYO) to procure volcano box- software used in repairing defective mobile sets.

n Distributed dustbin for Budhanilkantha area as a part of cleaning campaign.

n The Bank and its staff actively participated in the Bagmati Cleaning Program as a part of its cleaning campaign.

n Conducted cleaning program at Budhanilkantha Temple as its annual cleaning campaign with due concern to heritage protection.

n In the aftermath of the disastrous earthquake of 25th April, 2015; the bank provided financial assistance through Kantipur Rastriya Bipatti Sahayog Kosh of NPR 5 Million along with the distribution of relief materials by the employees. The Chairman Mr. Moti Lal Dugar and CEO Mr. Ratna Raj Bajracharya handed over the cheque of NPR 5 Million to Mr. Kailash Shirohiya, MD Kantipur Media Group.

n Bank staffs contributed their one day salary for providing financial assistance to the flood victims.

n Provided different financial and non financial assistance to the differently able children at Balmandir, Naxal on the occasion of bank’s anniversary.

n Distributed white canes to the visually impaired children and also conducted eye camp at Kirtipur.

With regards to the fact that resource scarcity and climate change has been a major challenge for the entire world, the bank is fully dedicated to minimize the impact on the environment in the best possible way. As a corporate citizen of the society, the bank has environmental management program whereby it focuses on waste management and optimal utilization of resources. Besides this, cl eaning initiatives has been carried out in regular manner by the Bank. >>

CSR



1

1. Dustbin distribution at Budhanilkantha Temple

2. Distribution of water dispenser to Navjyoti Kendra.

3. Donation to the Prime Minister’s Relief Fund for the Sunkoshi Flood Victim.

2

3


4. Financial help to Differently Able Youth Organization (DAYO).

5. Eye Camp at Kirtipur on coordination with Nasa Pucha, Kirtipur.

6. Distribution of white canes to the visually impaired children.

4

5

6


7. Annual food and clothes distribution at Bal Mandir

8. Financial help to Dr. Chitra Prasad Sharma Wagle suffering from appendix cancer.

9. Donation of NPR 5 Million to earthquake victims of April 25, 2015 through Kantipur Rastriya Bipatti Sahayog Kosh.

7

8

9


Director's Report

Respected Shareholders,

On behalf of the Board of Directors, I would like to heartily welcome our

distinguished shareholders to the Eight Annual General Meeting of Sunrise

Bank Limited and would like to present the Bank’s Annual Report for the

Financial Year 2014/15.

It is my privilege to endorse on behalf of the Board of Directors the Balance Sheet, Profit & Loss Account and Cash Flow Statements of the Financial Year 2014/15 along with the summary of all other activities of the Bank.

This annual report is prepared in accordance to Banks & Financial Institution Act, 2063, Company Act, 2063 and NRB Circulars & Directives issued from time to time.

NATION’S ECONOMIC CONDITION

During the later days of the fiscal year, the country suffered a disastrous earthquake on 25th April, 2015. Further to this, the aftershock of 12th May, 2015 and many other aftershocks following the devastating earthquake which not only turned down our infrastructure and heritage into rubbles, but also killed more than eight thousand people. The immediate disaster recovery and post earthquake recovery has itself been a major challenge for the country. The physical and economic help provided by the neighboring countries during such situation is itself an example of harmony and cooperation.

Amid this disaster management, as a result of the historic and incredible unity shown by the political parties it was possible to promulgate Constitution of Federal Democratic Republic of Nepal by the Constitutional Assembly after six years. Although this has itself been a great achievement for the country, the agitation started in Terai Madhesh stating that some problems have still not been resolved. While it had been predicted that the economy will leapfrog after the promulgation of the constitution, however the agitation in the Terai and disturbance in the Nepal-India border hindered the trade and operation of the industries within the country leading the earthquake devastated economy backward. From the economic perspective, this has been a severe setback for the country. Although it can be seen that it might take some time to move forward the economy in a normal pace, there is no alternative besides moving forward with a belief to revive from the condition and work for economic development.

Due to the long term economic policies that has not been able to take a solid form, persistent electricity crisis and degrading industrial environment, disappointing investment environment and lag in capital budget expenditure in the past several years, the country’s

10/11 11/12 12/13 13/14 14/15

INTEREST MARGIN RATIO

36%

29%

44%

45%

46%

10/11 11/12 12/13 13/14 14/15

COST INCOME RATIO

46%

61%

43%

44%42%

AT A G L A N C E G O V E R N A N C E F I N A N C I A L S T A T E M E N TP R O D U C T S & S E R V I C E S S H A R E H O L D E R S ' I N F O R M AT I O N


economy has not been able to take any positive movement. There has not been any improvement in the previous fiscal year as well. In the period improvement has been seen in the government revenue mobilization; however the major reason for this is the increase in import. We are all aware about the fact that there has not been much increase in the contribution by the internal production. Similarly, there has been negative impact in the employment generation as the country was not able to obtain expected improvement in economic activities. As a result, the youths immigrated abroad for employment opportunity. The country’s economy not being able to support investment friendly environment remained unchanged. One good aspect in the review period, there has been decrease in the strikes and agitations due to political differences thereby improving the industrial environment.

CHALLENGE OF INCREASING PAID UP CAPITAL

The monetary policy published by Nepal Rasta Bank in the beginning of the FY 2015/16 announced that the banks and financial institutions have to increase their paid up capital by four folds within the coming two years. The BFIs were even asked to present their capital plan to Nepal Rastra Bank by mid September 2015. This created a chaos in the banking sector as increasing paid up capital by four fold by two months is not easy for the BFIs.

Our bank has also presented the capital plan. The bank has formed a separate committee to study and implement capital plan. In order to meet the capital requirement, there is possibility of issuing huge amount of right share; however, it might not be possible at present to expand the bank’s portfolio to support the increased capital. Hence, this will decrease the return and also

10/11 11/12 12/13 13/14 14/15

CAPITAL ADEQUACY RATIO

13%

11.78%

11.80%

11.49%

11.11%


keep the bank behind the market competition. Thus, with regards to the above scenario, the bank has opted for merger/acquisition/takeover with suitable BFI for the capital increment and hence presented similar capital plan to NRB.

The management has hence started for looking for suitable BFI for merger/acquisition/takeover. In coordination of Director Mr. Shrawan Kumar Goyal from the Board of Directors, a merger committee has been formed. For carrying suitable merger/acquisition/takeover or joint venture, we request to provide Board of Directors the right to accept or reject the Due Dilligence Report submitted by the valuator for the valuation of the bank’s assets, liabilities and transactions.

DEPOSIT MOBILIZATION AND CREDIT FLOW SITUATION OF COMMERCIAL BANKS

In comparison to the previous financial year, a positive impact has been seen in the deposit mobilization of the banks and financial institutions due to expansion in economic activities and high inflow of remittance income in the aftermath of disastrous earthquake. In the review period, the total deposit of the commercial banks increased

by 27% from NPR 1,204 Billion to NPR 1,534 Billion whereas the total loans increased by 22.4% from NPR 900 Billion to NPR 1,102 Billion thereby showing some improvement in the liquidity in the banking sector.

REVIEW OF THE YEAR 2014/15 Financial Condition The comparative study of the financial indicators of the bank on a year to year basis is as follows:

In Millions

Paid-up Capital 2,443.7 2,236.6 207.1 9%

Total Deposits 33,486.7 26,616.7 6,870 26%

Total Loans 27,392 20,978.2 6,413.8 31%

Investment 7,259.8 3,054.7 4,205.1 138%

Reserves and Surplus 375.3 461.3 (86) (19)%

MID- JULY INCREMENTHEADINGS 2015 2014 AMOUNT PERCENT


With the improvement seen in the liquidity situation of the banking sector during the start of FY 2014/15, there has also been huge improvement in our bank’s condition. In the period, the bank’s total deposit increased by 26% and total loan increased by 31%.

Operating ResultThe bank has been able to earn operating profit before loan loss provision of NPR 864.8 Million and net profit of NPR 470. 9 Million during the review period.

In the review period, interest income has decreased by NPR 21.2 Million than the previous year. However, due to similar decline in the interest cost by similar ratio, there was not much increase in the net interest income. Although there has been increment in the loans and advances, total interest income could not increase as projected due to decreasing interest rate on loans and minimal return on liquid investments.

Similarly, due to the increase in deposit cost because of steady increase in the deposit there was no significant increase in the net interest income. However, the bank could earn a good amount of fee income during the

In Millions

Interest Income 2,402.6 2,423.8 (21.2) (0.87)%

Interest Expense 1,296.3 1,328.7 (32.4) (2.44)%

Net Interest Income 1,106.3 1,095.1 11.2 1.02%

Fees & Commission 387 308.6 78.4 25.41%

Staff & Operating Expenses 628.4 624.4 4 0.64%

Other Income/Expense (89.6) (12.2) (77.4)

Changes in Loan Loss Provision 41.7 372.9 (331.2) (88.82)%

Profit after all activities 733.6 394.2 339.3 86.07%

Staff Bonus and Income Tax 262.7 147.5 115.2 78.1%

Net Profit 470.9 246.7 224.1 90.8%

MID- JULY INCREMENTHEADINGS 2015 2014 AMOUNT PERCENT

review period. The operating expenses of the bank have increased due to the increase in number of branches and staffs. Due to the write back of loan loss provision m of NPR 417.10 million, profit after loan loss provision has increased by 86.07%

Although excess liquidity and slag in the economic activities remained as a problem in the review period, the bank could however achieve success in its operation. We are confident that the bank will make further progress in the coming years.

CURRENT AND UPCOMING PROGRAM

Bank has introduced home loan product tied up with the endowment insurance policy as per the current market demand. According to this policy, all our branches provide home loan tied up with endowment insurance policy amounting NPR 0.50 million to NPR 10 million. The borrower shall be fully secured and hence the loan shall be covered from the insurance company if in case the borrower dies during the loan tenure. The borrower shall also be entitled to the bonus amount after the settlement of the loan; hence the product is a good source for

10/11 11/12 12/13 13/14 14/15

NPA PERCENTAGE

3.51%

3.52%3.74%

4.94%

2.9%

10/11 11/12 12/13 13/14 14/15

RETURN ON AVERAGE EQUITY

2%

5%

13%

9%

15%

10/11 11/12 12/13 13/14 14/15

RETURN ON AVERAGE ASSETS

0.27%

0.60%

1.31%

0.88%

1.40%



saving and risk hedging. The product being such beneficial, the bank has received good response for the product and the customer base for the product is steadily growing.

Bank has introduced different loan products to cater the individual and business need of the customers. Keeping priority in the field of deprived sector lending and agriculture loan; the bank has formed a separate department for the same and has been providing loan from its 20 branches

deputed with separate staffs. Our bank is probably the only bank which has been providing deprived sector loan through a separate department and has been successful in doing so.

In the days to come as well, the bank shall provide continuation in providing SME loans in line with the country’s economy, Sunrise Surakshit Ghar Karja, deprived sector loan, agriculture loan. Addition to this, the bank has been increasing credit flow in the field of projects relating to energy, tourism and productive sector and has also prioritized short term loan for business purpose. We shall flow the loans by identifying probable sectors in the days to come.

As prescribed by the regulating authority the bank has made investment in government securities for the liquidity management purpose. The policy of the bank to invest liquid

assets in the secure area shall remain as before.

Similarly, continuous increase in the customer base and increase in ratio of personal deposit (saving and fixed) and strengthen the deposit source management of the bank. However, the bank shall continue its policy of increasing the ratio of current and saving deposit in the future as well.

The bank has continuously put its effort in upgrading technology for providing better services to the customers through mobile banking, internet banking, card and other related services.

Considering that the presence of organized institution is crucial in the Share Market, thoughts have been given on investment after identifying potential institutions to be engaged with in the functions of merchant banking to contribute in the operation of mutual fund

REMITTANCE SERVICE

Bank has been operating its own remittance through Suryodaya Remit in gulf countries and many other countries. However, it has been facing some difficulty due to high competition in the market. The bank has plans to come up with new policies and programs to upgrade the remittance services. In line with this, the bank has entered into an agreement with India’s private sector bank “Indusland Bank” to provide remittance service to the non residential Nepali living in India. We have full belief that we shall successfully operate this remittance service thereby providing remittance service to the Nepali. We would also like to inform that we are trying to establish relation with the Korean banks and also flourish relation with the current partners.

Designing products

and services to

enchant our clients

by meeting their

uncommon needs



IMPROVEMENT IN TECHNOLOGY

Bank has put its priority in development and expansion of technological infrastructure as it is a major factor for upgrading service delivery. The bank has been studying the bid proposals that have been called to upgrade its current banking software T24 or implement new banking software.

With the appropriate selection of the banking software, the bank has a plan to improve its technology based services and establish Disaster Recovery Site outside Kathmandu. Further, although the bank has been providing visa debit card service, it has a plan to introduce credit card (domestic and international) in the coming year. The new cards will be introduced chip card technology

(EMV) and the preliminary works for the same is in progress. We are proud to inform our shareholders that the bank has been awarded “Speed to Market” by VISA for acing in card service.

BRANCH EXPANSION

The bank expanded 2 branches in Lahan and Gaighat in the review period. Thus the bank has currently been serving through its 53 branches and 2 extension counter.

Although the bank had made preliminary plan to expand 6 new branches; the bank is now looking for financial partner to acquire/merge/takeover in order to increase paid up capital. Hence this will certainly increase the branch network of the branch, so the branch expansion

policy is currently not prioritized. However, with the aim to increase the financial reach in the rural areas that do not have access to financial services, the bank has come up with the Branchless Banking facility starting from Mangaltar, Kavre.

CUSTOMER RELATION AND RISK MANAGEMENT

The customer base of the bank is continuously increasing. The number of customer has increased to 270,000 in the current year from 250,000 last year. The number of account and deposit amount both are in increasing trend with the start of this fiscal year which is very positive and encouraging for the bank.

The bank is always directed with a principle of giving highest priority to its valued customer. The bank is always guided by the policy to cater the needs of its customers by introducing different loan and deposit products thereby establishing itself as a customer’s bank that cater every need of the customer.

Similarly, we have always complied with the Know Your Customer (KYC) and Anti-Money Laundering (AML) policy. We have a dedicated staff in every branch to continuously collect the KYC information and update it in the computer system.

With the view to improve credit risk management and operation risk management system of the bank, continuous improvement has been made in the internal system of the bank along with providing related training to the staffs and continuous supervision from the concerned department.


HUMAN RESOURCE MANAGEMENT

The total number of permanent and contract staffs as on year end remained 485 (previous year 469).

For the capacity development of the human capital of the bank; the bank has always sets its priority in providing conducive environment for prospering honesty, professionalism, workplace harmony and innovation. The staffs have been provided with various internal and external trainings with the aim to enhance their job efficiency and management skills.

NON PERFORMING LOAN(In %)

10/11 11/12 12/13 13/14 14/15

3.5

1

3.5

2

3.7

4 4

.94

2.9

0

CORPORATE GOVERNANCE

The Board of Directors and management are always committed in maintain corporate governance at the bank. Bank has fully complied with the roadmap of good corporate governance. Similarly, the Board of Directors and all the staffs have complied with the provisions related to corporate governance as prescribed by Nepal Rastra Bank. Bank monitors all the operation of the Audit Committee and also confirms whether the bank’s working system is sufficient or not with regards to Nepal Rastra Bank’s directives. Further to this, the bank is always committed to maintain transparency in its operation to develop corporate governance.


EARTHQUAKE VICTIM RELIEF FUND AND TAX PAYMENT

The We are all aware of the disastrous earthquake of April 25 and following aftershocks that resulted in huge amount of human and infrastructure destruction. Hence, with the aim to provide some relief to these earthquake victims, the bank donated NPR 5 million to the Prime Minister Disaster Relief Fund. The staffs also distributed relief materials to the earthquake victims.

During the FY 2014/15, the bank has paid NPR 300 million for the tax purpose. Out of total tax, corporate tax accounted for NPR 189 Million, tax on interest on deposit of customer accounted for NPR 74.4 Million, income tax of staff accounted for NPR 22.1 Million and tax on house rent accounted for NPR 6.1 Million. Besides this, bank has also paid value added tax on the goods & services and advance tax deducted at source.

COMMITTEES

In order to control and monitor the operation of the bank, follow policy guidelines; different committees like Risk Management Committee, Audit Committee and Staff Service Facility Committee including Directors have been in operation.

In coordination of non executive director, two member audit committee regularly review the financial status, internal control and risk management system and audit of the bank. This committee regularly in form and suggest the management to improve on the basis of the remarks submitted by the internal and external audit and bank supervision department from NRB.

In the review period, the audit committee meeting was held 9 times.

Similarly, in the management level, inclusive of the top management, there are committees like Asset Liability Management Committee, Human Resource Committee, etc. These committees are carrying out regular activities regarding the different transactions and functions of the banks.

FINANCIAL STATEMENT AND AUDIT

The Balance Sheet, Profit & Loss Account, Cash Flow Statement, Schedules and Auditor’s Report as at FY end 2014/15 is endorsed from this Annual General Meeting.

DIRECTION FROM NEPAL RASTRA BANK IN THE PROCESS OF APPROVAL OF FINANCIAL STATEMENTS

As per the remarks and guidelines provided by Nepal Rastra Bank during the publishing of Annual Report for FY 2014/15, we are committed to improve our transactions and functions of the bank.

AMOUNT PROPOSED FOR DIVIDEND

As per the directive issued by Nepal Rastra Bank to raise the paid up capital to NPR 8 Billion within next two years, the bank has proposed to distribute 21.5% (NPR 528,967,725) bonus share and 1.131579% (NPR 27,840,407) cash dividend from the profit of FY 2014/15 and accumulated reserves.

We request you to approve bonus share and cash dividend proposed by the Board of Directors.

CHANGE IN BOARD OF DIRECTORS AND MANAGEMENT

Director Mr. Shanker Dahal resigned from his position with effect from FY End 2014/15 which has been approved by the Board of Directors. We would like to thank him for the contribution he has made for the policy formation and providing direction to the operations of the bank during his tenure at the bank.

Similarly, Mr. Jyoti Kumar Begani- the director elected from the seventh annual general meeting has taken his responsibility.

THANKING YOU

At last, reiterating the fact that the bank has been able to remarkable growth in its transaction during the year; we would like thank our shareholders and customers who have directly and indirectly helped us by providing valuable suggestion to improve bank’s service facility for the progress and prosperity of the bank. We are also thankful to Government of Nepal, Ministry of Finance, Nepal Rastra Bank, Company Registrar Office, Security Board of Nepal, and Nepal Stock Exchange for their continuous help and direction. Further, we would also like to thank our employees for their continuous support and contribution and the media for their cooperation. We are committed in the future as well to provide better banking services to our valued customers and superior results to our shareholders.

Thanking You On Behalf of Board of Directors

Motilal Dugar Chairman


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Disclosure of information under section 109 (4) of companies act 2006

1. Response by Board of Directors on the remarks given on the audit reportBesides the normal remarks on the banking transactions, there weren’t any other remarks given in the audit report on FY 2014/15. The remarks have come into notice of the Board of Directors and arrangement has been made to take corrective actions such that such mistake does not occur in future.

2. Proposed DividendFrom the profit of FY 2014/15, 21.5% bonus share has been proposed and 1.131579% cash dividend has been proposed for tax purpose to the shareholders.

3. Information on shares forfeited if any during the year No such information obtained.

4. Financial position of the Bank and its subsidiary in the fiscal year ended The progress in the Bank’s transaction has been included in the Director’s Report whereas the Bank does not have a subsidiary company.

5. Information provided by key shareholders to the company during the previous FYThe bank has not obtained any such information during the FY.

6. Information regarding the purchase and ownership of shares by the Directors and high officials of the company, and further information received by the company from the Directors if involved in the share transactionsThe Directors and the members of management are not involved in the share transaction of the company.

7. Information provided to the company by any Director or his close relatives on their personal interest in the company related agreements in the previous fiscal yearNo such information available

8. If the company has purchased its own shares, the reason for purchasing its own shares, the number of shares purchased and the amount and also the payment by the company for such kind of purchase detailsNo such transaction took place during the year.

9. Statement of Total Management expenses for the financial yearStaff Expenses NRs. 271,911,329

Office Operating Expenses NRs. 356,471,360

10. Details on the members of the Audit Committee; salary, bonus and facilities provided to the members; work carried out by the committee and any suggestions givena. Dr. Deepak Prasad Bhattarai (Coordinator)b. Mr. Malchand Dugar (Member)c. LDSA Associates (Member) andd. Audit Committee along with Bank’s Company Secretary Mr. Ishwar Kumar PathakThe audit committee meeting was held 9 times during the fiscal year and hence NPR 0.164 Million was paid as meeting fee. From the review of the internal audit report, necessary suggestions are provided through the Board meeting. Similarly, the external audit report and annual financial reports are presented to the Board through after being reviewed.

11. Payments due to the Bank from any Directors, Managing Director, Chief Executive or the key shareholders of the Bank and their close relatives, or from any firm, company or corporate body in which they are involved inNo such details.

12. Remuneration, allowances and facilities provided to the Directors, Managing Director, Chief Executive Officer and other official of the Bank.a. The Directors were provided NRs. 2,081,000 as meeting allowances with tax deducted at source according to the Income Tax Act.b. The details of the salary, allowances and facilities paid to the Chief Executive Officer and other executives.

13. Dividend yet to be collected by the Shareholders as at Mid-July, 2015The dividend yet to be collected by the shareholders is NRs. 24,930,063.

14. Details of property purchased or sold u/s 141 by the Bank during the year.No such details.

15. Details of transactions between associated companies u/s 175 during the year.No such details.

DESIGNATION SALARY AND ALLOWANCES

Chief Executive Officer 6,617

Management 70,889

(In ‘000)

Disclosure


61A N N U A L R E P O R T 2 0 1 4 / 1 5 | S U N R I S E B A N K L I M I T E D 61A N N U A L R E P O R T 2 0 1 4 / 1 5 | S U N R I S E B A N K L I M I T E D

Disclosure related to annexture-13 of sub rule (1) of rule 22 of securities registration and issuance regulation, 2065

1. Report of Board of DirectorsIncluded in the Annual Report under respective heading.

2. Auditor’s ReportIncluded in the Annual Report under respective heading.

3. Audited Financial StatementsIncluded in the Annual Report under respective heading.

4. Details relating to Legal Actiona. Law Suits filed by/against the Bank during the review period.No such except business cases related to loans and loan recovery.

b. Law Suits filed by/against the promoters/directors involving charge of regulatory violations or criminal offensesNo such cases filed.

c. Cases filed against any promoters/directors for financial fraud.No such cases filed.

5. Analysis of share transaction and progress of Organized Institution a. Management view on share transactions of the Bank on Nepal Stock ExchangeAs the share price determination and share transaction are carried through open market operations at Nepal Stock Exchange under the supervision of Securities Board of Nepal, the management is neutral on the matter.

b. Maximum, minimum and closing share price of organized institution including total transacted number of shares and transacted days during the year

6. Problems and ChallengesThe problem and challenges that organized institutions face are clearly mentioned and categorized as internal and external so that institution can adopt strategies for solving these problems and challenges.

7. Corporate Governance: The bank has adopted strong policies for maintaining corporate governance. In case of corporate governance, bank has been fully complying with the unified directives of Nepal Rastra Bank and is committed to comply in the days to come.

8. Statement of difference between prospectus and audited financial statement by 20% or more The bank had issued prospectus for 10% right share for the current year and the following differences were identified in the following categories:

BALANCE SHEET1. Share Capital: There has been difference of 20.82% in share capital as the bonus share of 21.5% has been proposed from the net profit of the FY 2014/15.

DESCRIPTION FIRST SECOND THIRD FOURTH QUARTER QUARTER QUARTER QUARTER

Maximum Share Price Rs. 464 Rs. 421 Rs. 436 Rs. 449

Minimum Share Price Rs. 342 Rs. 319 Rs. 372 Rs. 317

Closing Share Price Rs. 390 Rs. 410 Rs. 400 Rs. 395

Transaction Number of Shares Transacted 243,850 280,441 329,270 189,756

Total Trading Days 36 58 57 47

2. Reserve and Surplus: There has been deficit by 67.96% in reserve and surplus than that projected as the bank could not earn net profit as projected and also bonus share of 21.5% has been proposed in the current year.

3. Bills Payable: There has been deficit in bills payable by 67.09% than that projected as less expense occurred than the projection and also the balance of manager’s cheque declined during the year.

4. Cash Balance: The difference in cash balance is due to the normal banking transactions.

5. Deposit with banks and financial institutions: The balance with other banks and financial institutions has declined due to investment in other portfolios.

6. Investment: Due to the unexpected investment in the Deposit Collection of Nepal Rastra Bank, there has been increase in the investment amount.

The details in reference to the website of Nepal Stock Exchange are given in table below:


PROFIT AND LOSS ACCOUNT1. Net Interest Income: The net interest income has decreased than projected due to decrease in interest spread due to decreasing trend in interest rate and increase in volume of fixed deposit.

2. Total Operating Income: There has difference in total operating income as the bank could not earn net interest income and commission & discount income as projected.

3. Other Operating Expense: Although there had been high projection, the difference occurred due to cost reduction policy of the bank.

4. Operating Income before Loan Loss Provision: The difference has occurred due to the difference in the total operating income.

5. Loan Loss Provisions: There has been high increase in this heading due to the new loan loss provision under watch list and also due to the inability to recover loans of some big borrowers.

6. Operating Profit: The difference in operating profit has occurred due to high increase in loan loss provision and decrease in interest income and operating income than projected.

Disclosure

7. Write back of Loan Loss Provision: There has been high increase under this heading due to high loan recovery during the FY 2014/15.

8. Profit from All Activities: The difference in this heading is primarily due to difference in net interest income.

9. Special Events or Circumstances Related to Sub-Rule (5) of Rule 22 during the yearThere had not been any events or transaction that could impact on the market price of bank’s listed security.



BALANCE SHEET As on 31st Ashad 2072 (16th July 2015)

1. Share Capital 4.1 2,972,655,725 2,236,650,000

2. Reserves and Funds 4.2 375,317,139 461,268,215

3. Debentures & Bonds 4.3 - -

4. Borrowings 4.4 - -

5. Deposit Liabilities 4.5 33,486,669,059 26,616,667,279

6. Bills Payable 4.6 9,221,198 11,823,193

7. Proposed Dividend 27,840,407 -

8. Income Tax Liabilities (Net) - -

9. Other Liabilities 4.7 517,111,365 334,913,773

TOTAL CAPITAL & LIABILITIES 37,388,814,893 29,661,322,460

1. Cash Balance 4.8 867,651,104 862,774,345

2. Balance with Nepal Rastra Bank 4.9 1,890,735,127 4,365,630,632

3. Balance with Banks/Financial Institutions 4.10 299,721,238 698,477,256

4. Money at Call and Short Notice 4.11 - 113,393,657

5. Investments 4.12 7,259,794,085 3,054,741,181

6. Loans, Advances & Bills Purchased (Net) 4.13 26,380,083,691 19,938,325,932

7. Fixed Assets (Net) 4.14 309,655,783 291,870,294

8. Non-Banking Assets (Net) 4.15 - -

9. Other Assets 4.16 381,173,865 336,109,163

TOTAL ASSETS 37,388,814,893 29,661,322,460

ASSETS SCHEDULE CURRENT YEAR NPR PREVIOUS YEAR NPR

Contingent Liabilities Schedule 4.17

Directors’ Declaration Schedule 4.29

Statement of Capital Adequacy Table Schedule 4.30 (A)

Statement of Risk Weighted Exposure for Credit Risk Schedule 4.30 (B)

Statement of Eligible Credit Risk Mitigants Schedule 4.30 (C)

Statement of Risk Weighted Exposure for Operational Risk Schedule 4.30 (D)

Statement of Risk Weighted Exposure for Market Risk Schedule 4.30 (E)

Principal Indicators Schedule 4.31

Significant Accounting Policies Schedule 4.32

Notes to Accounts Schedule 4.33

Statement of Loan to Promoters/ Group of Promoters Schedule 4.34

Comparision of Unaudited and Audited Financial Statements Schedule 4.35

Statement of Unaudited Financial Results (Quarterly) Schedule 4.36

Schedules 4.1 to 4.16 form integral part of Balance Sheet

CAPITAL & LIABLITY SCHEDULE CURRENT YEAR NPR PREVIOUS YEAR NPR

Deepak NepalDIRECTOR

Jyoti Kumar BeganiDIRECTOR

Rupesh LuitelHEAD-FINANCE & PLANNING

Shrawan K. GoyalDIRECTOR

Malchand DugarDIRECTOR

Dr. Deepak Psd BhattaraiDIRECTOR

Moti Lal Dugar CHAIRMAN

Dr. Bhogendra GuragainDIRECTOR

Er. Bachh Raj TaterDIRECTOR

As per our attached report of even date

Arun ParajuliCHIEF MANAGER

Apachh K. YadavDEPUTY GENERAL MANAGER

Ratna Raj BajracharyaCHIEF EXECUTIVE OFFICER

CA Parakram Sharmafor Parakram Sharma & Associates

Chartered Accountants

PLACE: Kathmandu, NepalDATE: 1st October, 2015

Financial Statements



PROFIT & LOSS ACCOUNT For the Period Ended 1st Shrawan 2071 to 31st Ashad 2072 (17th July 2014 to 16th July 2015)

1. Interest Income 4.18 2,402,657,316 2,423,845,864

2. Interest Expenses 4.19 1,296,357,220 1,328,711,949

Net Interest Income 1,106,300,096 1,095,133,915

3. Commission & Discount 4.20 119,378,169 104,093,050

4. Other Operating Incomes 4.21 187,273,473 141,288,250

5. Exchange Fluctuation Income 4.22 80,315,827 63,213,390

Total Operating Income 1,493,267,565 1,403,728,605

6. Staff Expenses 4.23 271,911,329 263,898,326

7. Other Operating Expenses 4.24 356,471,360 360,548,904

8. Exchange Fluctuation Loss 4.22 - -

Operating Profit Before Provision for Possible Loss 864,884,876 779,281,375

9. Provision for Possible Losses 4.25 458,809,963 466,424,910

Operating Profit 406,074,913 312,856,465

10. Non - Operating Income/Expenses 4.26 2,822,812 2,489,169

11. Loan Loss Provision Written Back 4.27 417,134,854 93,542,486

Profit from Regular Activities 826,032,579 408,888,120

12. Income/Expense from Extra-Ordinary Activities 4.28 (92,468,268) (14,645,826)

Profit from All Activities 733,564,311 394,242,294

13. Provision for Staff Bonus 66,687,665 35,840,209

14. Provision for Tax Expense 196,019,590 111,629,430

» Current Years 189,045,449 123,927,514

» Previous Years 1,899,222 -

» Deferred Tax 5,074,919 (12,298,084)

NET PROFIT/(LOSS) 470,857,056 246,772,655

PARTICULARS SCHEDULE CURRENT YEAR (NRS.) PREVIOUS YEAR (NRS.)




































PROFIT & LOSS APPROPRIATION ACCOUNT PARTICULARS CURRENT YEAR RS. PREVIOUS YEAR RS.

Income

1. Accumulated Profit upto Previous Year 195,614,947 17,663,933

2. Current Year’s Profit 470,857,056 246,772,655

3. Deferred Tax Reserve 5,074,919 -

TOTAL 671,546,922 264,436,588

Expenses

1. Accumulated Loss upto Previous Year - -

2. Current Year’s Loss - -

3. General Reserve Fund 94,171,412 49,354,531

4. Contingent Reserve - -

5. Institution Development Fund - -

6. Dividend Equalization Fund - -

7. Employees’ Related Fund - -

8. Proposed Dividend 27,840,407 -

9. Proposed Bonus Share 528,967,725 -

10. Special Reserve Fund - -

11. Exchange Fluctuation Fund 2,582,643 6,919,026

12. Capital Redemption Reserve Fund - -

13. Capital Adjustment Fund - -

14. Investment Adjustment Reserve 14,700,000 250,000

15. Deferred Tax Reserve - 12,298,084

TOTAL 668,262,187 68,821,641

16. Accumulated Profit/(Loss) 3,284,735 195,614,947

For the Period Ended 1st Shrawan 2071 to 31st Ashad 2072 (17th July 2014 to 16th July 2015)




CASH FLOW STATEMENT For the Period Ended 1st Shrawan 2071 to 31st Ashad 2072 (17th July 2014 to 16th July 2015)

PARTICULARS CURRENT YEAR RS. PREVIOUS YEAR RS.

(A) Cash Flow from Operating Activities (2,945,866,699) 1,309,132,515

1. Cash Receipts 2,777,239,007 2,724,979,328

1.1 Interest Income 2,398,517,023 2,441,685,570

1.2 Commission and Discount Income 119,378,169 104,093,050

1.3 Exchange Gain 69,985,258 35,537,289

1.4 Recovery of Loan Written off - -

1.5 Other Income 189,358,557 143,663,419

2. Cash Payments (2,036,798,360) (2,123,754,161)

2.1 Interest Expenses (1,241,236,036) (1,364,516,503)

2.2 Staff Expenses (305,946,070) (304,163,373)

2.3 Office Operating Expenses (292,507,653) (261,708,172)

2.4 Payment of Income Tax (197,108,601) (193,366,113)

2.5 Other Expenses - -

Cash Flow Before Working Capital Activities 740,440,647 601,225,167

Decrease/(Increase) in Current Asset from Operating Activities (10,652,115,727) (2,638,107,568)

1. Decrease/(Increase) in Money at Call and Short Notice 113,393,657 566,163,395

2. Decrease/(Increase) in Other Short Term Investments (4,205,052,904) (588,660,486)

3. Decrease/(Increase) in Loans, Advances and Bills Purchased (6,506,282,417) (2,590,115,406)

4. Decrease/(Increase) in Other Assets (54,174,063) (25,495,071)

Increase/(Decrease) in Current Liabilities from Operating Activities 6,965,808,381 3,346,014,916

1. Increase /(Decrease) in Deposit/Liabilities 6,870,001,780 3,346,063,983

2. Increase /(Decrease) in Certificate of Deposits - -

3. Increase /(Decrease) in Short Term Borrowings - -

4. Increase /(Decrease) in Other Liabilities 95,806,601 (49,067)

(B) Cash Flow from Investing Activities (136,291,522) (78,928,751)

1. Decrease/(Increase) in Long Term Investments - (12,500,000)

2. Decrease/(Increase) in Fixed Assets including Software/ NBA (137,029,250) (66,542,751)

3. Interest Income from Long Term Investments - -

4. Dividend Income 171,000 114,000

5. Others 566,728

(C) Cash Flow from Financial Activities 203,052,888 (20,075,252)

1. Increase /(Decrease) in Long Term Borrowings (Bond, Debentures) - -

2. Increase /(Decrease) in Paid up Share Capital 207,038,000 -

3. Increase /(Decrease) in Other Liabilities (3,985,112) (20,075,252)

4. Increase/(Decrease) in Refinance facilities from Nepal Rastra Bank

(D) Income/Loss from exchange rate fluctuations of Cash and Bank Balances 10,330,569 27,676,101

(E) Net Cash Flow from all activities of the Current Year (2,868,774,764) 1,237,804,613

(F) Opening Cash and Bank Balances 5,926,882,233 4,689,077,620

(G) Closing Cash and Bank Balances 3,058,107,469 5,926,882,233




















DETAILS OF SHAREHOLDERS HOLDING 0.5 % OR MORE OF SHARE CAPITAL As on 31st Ashad 2072 (16th July 2015)

1. BACHHA RAJ TATER Public 20,033,900 73,809,300 3.02% - 0.00%

Promoter 53,775,400 67,099,500 3.00%

2. BHOGENDRA KUMAR GURAGAIN Public 9,117,900 33,592,600 1.37% - 0.00%

Promoter 24,474,700 30,538,875 1.37%

3. BHUSHAN GURAGAIN Public 3,398,500 12,521,200 0.51% - 0.00%

Promoter 9,122,700 11,383,050 0.51%

4. CHANDA KUMARI BEGANI Public 7,345,600 27,063,300 1.11% - 0.00%

Promoter 19,717,700 24,603,150 1.10%

5. GYANENDRA KUMAR SHARMA Public 4,006,700 14,761,800 0.60% - 0.00%

Promoter 10,755,100 13,419,900 0.60%

6. HARI PRASAD AGRAWAL Public 5,223,900 19,245,900 0.79% - 0.00%

Promoter 14,022,000 17,496,375 0.78%

7. JAMUNA POUDYAL Public 5,762,400 21,230,000 0.87% - 0.00%

Promoter 15,467,600 19,300,125 0.86%

8. JYOTI KUMAR BEGANI Public 6,010,100 22,142,700 0.91% - 0.00%

Promoter 16,132,600 20,129,850 0.90%

9. KAILASH CHANDRA GOYAL Public 38,419,400 154,295,200 6.31% - 0.00%

Promoter 115,875,800 128,678,082 5.75%

10. LOPSANG TENZING NEPALI Public 5,223,900 19,245,900 0.79% - 0.00%

Promoter 14,022,000 17,496,375 0.78%

11. MALCHAND DUGAR Public 45,005,300 142,904,200 5.85% - 0.00%

Promoter 97,898,900 122,155,500 5.46%

12. MOTI LAL DUGAR Public 43,892,600 173,491,400 7.10% - 0.00%

Promoter 129,598,800 161,709,795 7.23%

13. NIDHI DUGAR Public 15,150,900 51,001,200 2.09% - 0.00%

Promoter 35,850,300 44,733,000 2.00%

14. PARMESWOR LAL AGRAWAL Public 3,338,900 12,301,400 0.50% - 0.00%

Promoter 8,962,500 11,183,250 0.50%

15. PAWAN KUMAR SHARADA Public 9,528,200 35,103,700 1.44% - 0.00%

Promoter 25,575,500 31,912,500 1.43%

16. PRAMOD KUMAR KHETAN Public 6,677,900 24,603,000 1.01% - 0.00%

Promoter 17,925,100 22,366,500 1.00%

17. PUJA DUGAR Public 14,742,400 50,592,700 2.07% - 0.00%

Promoter 35,850,300 44,733,000 2.00%

18. RADHESHYAM SHARADA Public 9,528,200 35,103,700 1.44% - 0.00%

Promoter 25,575,500 31,912,500 1.43%

19. SAILENDRA GURAGAIN Public 12,583,800 30,329,600 1.24% - 0.00%

Promoter 17,745,800 22,142,835 0.99%

20. SAROJ DUGAR Promoter 37,125,000 37,125,000 1.52% 44,733,000 2.00%

21. SAURABH GURAGAIN Public 3,386,300 12,476,000 0.51% - 0.00%

Promoter 9,089,700 11,341,980 0.51%

22. SAURAV TATER Public 13,355,900 49,206,200 2.01% - 0.00%

Promoter 35,850,300 44,733,000 2.00%

NAME TYPE OF SHARE TOTAL PERCENTAGE PREVIOUS YEAR PERCENTAGE

Contd... DETAILS OF SHAREHOLDERS HOLDING 0.5 % OR MORE OF SHARE CAPITAL




23. SHRADDHA DUGAR Public 13,947,700 49,798,000 2.04% - 0.00%

Promoter 35,850,300 44,733,000 2.00%

24. SHIV RATAN SHARADA Promoter 25,575,500 35,103,700 1.44% 31,912,500 1.43%

9,528,200 - 0.00%

25. SHRAWAN KUMAR GOYAL Public 33,443,400 123,212,500 5.04% - 0.00%

Promoter 89,769,100 112,011,432 5.01%

26. SRI NIWAS SHARADA Public 13,355,900 49,206,200 2.01% - 0.00%

Promoter 35,850,300 44,733,000 2.00%

27. SURENDRA DUGAR Public 2,621,200 59,070,700 2.42% - 0.00%

Promoter 56,449,500 70,436,160 3.15%

28. SUSHILA SHARMA Public 6,677,900 24,603,000 1.01% - 0.00%

Promoter 17,925,100 22,366,500 1.00%

29. UMA SHARMA BHATTARAI Public 5,451,700 25,467,400 1.04% - 0.00%

Promoter 20,015,700 24,975,000 1.12%

30. VISHAL TATER Public 13,355,900 49,206,200 2.01% - 0.00%

Promoter 35,850,300 44,733,000 2.00%

31. VIVEK DUGAR Public 27,282,400 93,793,600 3.84% - 0.00%

Promoter 66,511,200 82,990,926 3.71%

32. VIVEK TATER Public 13,355,900 49,206,200 2.01% - 0.00%

Promoter 35,850,300 44,733,000 2.00%

33. NIRMALA DEVI GOYAL Public 13,759,700 13,759,700 0.56% 12,489,609 0.56%

34. NORBU TSERING LAMA Promoter - - 0.00% 17,496,375 0.78%

35. NIRANJAN LAL KHETAN Promoter - - 0.00% 22,366,500 1.00%

TOTAL 1,624,573,200 66.48% 1,519,779,144 67.95%

NAME TYPE OF SHARE TOTAL PERCENTAGE PREVIOUS YEAR PERCENTAGE

* Previous Year figure has been adjusted after the bonus shares allotment of FY 2069/70.

Contd... DETAILS OF SHAREHOLDERS HOLDING 0.5 % OR MORE OF SHARE CAPITAL




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SHARE CAPITAL As on 31st Ashad 2072 (16th July 2015)

PARTICULARS CURRENT YEAR NRS. PREVIOUS YEAR NRS.

1. Share Capital

1.1 Authorised Capital 5,000,000,000 5,000,000,000

a) 50,000,000 Ordinary Shares of Rs 100 each 5,000,000,000 5,000,000,000

(Previous year 50,000,000 Ordinary shares of Rs 100 each)

1.2 Issued Capital 2,460,315,000 2,460,315,000



1.3 Paid Up Capital 2,443,688,000 2,236,650,000



1.4 Proposed Bonus Share 528,967,725 -

1.5 Call in Advance - -

TOTAL 2,972,655,725 2,236,650,000

Schedule 4.1

PARTICULARS CURRENT YEAR PREVIOUS YEAR AMOUNT (NPR) % AMOUNT (NPR) %

A. Local Ownership 2,443,688,000 100% 2,236,650,000 100%

1.1 Government of Nepal

1.2 “A” Class Licensed Institutions

1.3 Other Licensed Institutions

1.4 Other Institutions

1.5 General Public 1,188,929,500 49% 1,095,958,500 49%

1.6 Others (Promoters) 1,254,758,500 51% 1,140,691,500 51%

B. Foreign Ownership

TOTAL 2,443,688,000 2,236,650,000

NOTE: 166,270 Shares remained unsubscribed including 22 Shares from Promoter Holding.

SHARE OWNERSHIP As on 31st Ashad 2072 (16th July 2015) Schedule 4.1




RESERVES & SURPLUS PARTICULARS CURRENT YEAR NPR PREVIOUS YEAR NPR

1. General Reserve Fund 294,760,270 200,588,858

2. Capital Reserve Fund 32,407,723 32,407,723

a. Share Premium 32,407,723 32,407,723

3. Capital Redemption Reserve - -

4. Capital Adjustment Fund - -

5. Other Reserves & Funds 28,290,172 18,665,091

5.1. Contingent Reserve - -

5.2. Institution Development Fund - -

5.3. Dividend Equalisation Fund - -

5.4. Special Reserve Fund - -

5.5. Assets Revaluation Reserve - -

5.6. Deferred Tax Reserve - 17,967,923

5.7. Other Free Reserves 12,893,004 -

5.8. Investment Adjustment Reserve 15,397,168 697,168

6. Accumulated Profit/Loss 3,284,735 195,614,947

7. Exchange Fluctuation Fund 16,574,239 13,991,596

TOTAL RESERVES & SURPLUS 375,317,139 461,268,215

As on 31st Ashad 2072 (16th July 2015) Schedule 4.2

DEBENTURES & BONDS PARTICULARS CURRENT YEAR NPR PREVIOUS YEAR NPR

1. ….. % Debentures of Rs…. each - -

( Issued on……….with maturity on……..……)

(Outstanding balance of Redemption Reserve till date Rs……)

2. ….. % Bonds of Rs…. each - -

( Issued on….. …….with maturity on……….…)

(Outstanding balance of Redemption Reserve till date Rs……)

3. ……………… - -

TOTAL DEBENTURES & BOND - -


BORROWINGS PARTICULARS CURRENT YEAR NPR PREVIOUS YEAR NPR

A. Domestic

1. Government of Nepal

2. Nepal Rastra Bank - -

3. Repo Obligations

4. Inter-bank and Financial Institutions -

5. Other Financial Institutions

6. Others - -

Total - -

B. Foreign

1. Banks - -

2. Others - -

Total - -

TOTAL BORROWINGS - -





DEPOSIT LIABILITY PARTICULARS CURRENT YEAR NPR PREVIOUS YEAR NPR

1. NON - INTEREST BEARING ACCOUNTS

A. CURRENT DEPOSITS 1,256,146,999 797,866,101

1. Local Currency 1,191,284,172 750,931,003


1.2 “A” Class Licensed Institutions 16,833,441 719,989

1.3 Other Licensed Financial Institutions 11,101,387 36,273,689

1.4 Other Organized Institutions 1,013,508,286 663,391,687

1.5 Individuals 144,078,270 50,545,638

1.6 Others 5,762,788

2. Foreign Currency 64,862,827 46,935,098



2.3 Other Licensed Financial Institutions

2.4 Other Organized Institutions 64,862,827 46,935,098

2.5 Individuals

2.6 Others

B. MARGIN DEPOSITS 330,196,508 296,831,691

1. Employees’ Guarantee

2. Guarantee Margin 205,513,959 164,131,921

3. Margin on Letter of Credit 101,244,130 85,552,794

4. Others Margins 23,438,419 47,146,976

C. OTHER DEPOSITS - -

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 ACCOUNT 1,586,343,507 1,094,697,792





DEPOSIT LIABILITY PARTICULARS CURRENT YEAR NPR PREVIOUS YEAR NPR

2. INTEREST BEARING ACCOUNTS

A. SAVINGS DEPOSITS 11,063,511,124 9,882,833,775

1. Local Currency 11,037,780,844 9,837,770,843

1.1 Organized Institutions 20,426,870 23,466,986

1.2 Individuals 11,016,625,473 9,814,303,857

1.3 Others 728,501


2.1 Institutions 2,221 2,083

2.2 Individuals 25,728,059 45,060,849

2.3 Others -

B. FIXED DEPOSITS 16,410,935,922 10,487,128,324

1. Local Currency 15,749,519,922 9,667,189,824

1.1 Organized Institutions 12,616,017,709 7,144,461,186

1.2 Individuals 3,133,502,213 2,522,728,638

1.3 Others -


2.1 Institutions 660,400,000 818,975,000

2.2 Individuals 1,016,000 963,500

2.3 Others

C. CALL DEPOSITS 4,425,878,506 5,152,007,388

1. Local Currency 4,332,557,790 5,081,130,515


1.2 Other Licensed Institutions 1,259,755,378 2,557,404,269

1.3 Other Organized Institutions 2,928,557,327 2,347,930,045

1.4 Individuals 144,245,085 175,796,201

1.5 Others



1.2 Other Licensed Institutions 39,895,731 14,164,449

1.3 Other Organized Institutions 52,588,928 55,516,057

1.4 Individuals 836,057 1,196,367

1.5 Others

D. CERTIFICATE OF DEPOSITS - -

1. Organized Institutions - -

2. Individuals - -

3. Others - -

TOTAL INTEREST BEARING ACCOUNTS 31,900,325,552 25,521,969,487

TOTAL DEPOSITS 33,486,669,059 26,616,667,279





BILLS PAYABLE

CASH BALANCE

OTHER LIABILITIES

PARTICULARS CURRENT YEAR NPR PREVIOUS YEAR NPR



1. Local Currency 6,288,097 10,234,476


TOTAL BILLS PAYABLE 9,221,198 11,823,193

1. Local Currency (Including Coins) 851,523,319 856,216,533


TOTAL CASH BALANCE 867,651,104 862,774,345

1. Pension/Gratuity Fund 18,507,099 16,701,631

2. Employees’ Provident Fund - -

3. Employees’ Welfare Fund - -

4. Provision for Staff Bonus 66,687,665 35,840,209

5. Interest Payable on Deposits 131,032,151 75,910,967

6. Interest Payable on Borrowing - -

7. Unearned Discount and Commission 42,735,486 43,661,953

8. Sundry Creditors 13,742,490 10,940,856

9. Branch Adjustment Account - -

10. Deferred Tax Liability - -

11. Unpaid Dividend 24,930,063 28,915,175

12. Others 219,476,411 122,942,982

a. Audit Fees Payable 428,524 389,568

b. TDS Payable 29,673,975 22,992,262

c. Retention Money 3,910,951 3,946,005

d. Others 185,462,961 95,615,147

TOTAL OTHER LIABLITY 517,111,365 334,913,773

As on 31st Ashad 2072 (16th July 2015)



Schedule 4.6

Schedule 4.8

Schedule 4.7




BALANCE WITHNEPAL RASTRA BANK As on 31st Ashad 2072 (16th July 2015)

* Conformation as per balance statement is NPR 1,894,777,511 the difference has been reconciled.

Schedule 4.9

BALANCE WITH OTHER BANKS & FINANCIAL INSTITUTIONS As on 31st Ashad 2072 (16th July 2015)

* Conformation as per balance statement is NPR 373,803,540 the difference has been reconciled.

Schedule 4.10

MONEY AT CALL & SHORT NOTICE PARTICULARS CURRENT YEAR NPR PREVIOUS YEAR NPR

1. Local Currency - -

2. Foreign Currency - 113,393,657

TOTAL CASH BALANCE - 113,393,657


1. Nepal Rastra Bank 1,814,333,924 - 76,401,203 76,401,203 1,890,735,127 4,365,630,632

a. Current Account 1,814,333,924 - 76,401,203 76,401,203 1,890,735,127 4,365,630,632

b. Other Account - - - - - -

PARTICULARS LOCAL CURRENCY FOREIGN CURRENCY IN NPR CURRENT YEAR PREVIOUS YEAR INR OTHER TOTAL NPR NPR NPR

1. Local Banks 95,112,440 - 148,507 148,507 95,260,947 114,714,141

a. Current Account 95,112,440 - 148,507 148,507 95,260,947 114,714,141

b. Other Account - - -

2. Foreign Banks - 129,116,085 75,344,206 204,460,291 204,460,291 583,763,115

a. Current Account - 129,116,085 75,344,206 204,460,291 204,460,291 583,763,115

b. Other Account - -

TOTAL 95,112,440 129,116,085 75,492,713 204,608,798 299,721,238 698,477,256

PARTICULARS LOCAL CURRENCY FOREIGN CURRENCY IN NPR CURRENT YEAR PREVIOUS YEAR INR OTHER TOTAL NPR NPR NPR




INVESTMENTS PURPOSE PARTICULARS TRADING OTHERS CURRENT YEAR PREVIOUS YEAR NPR NPR NPR NPR

1. Nepal Government’s Treasury bills - 1,405,272,550 1,405,272,550 2,155,195,894

2. Nepal Government’s Savings Bonds - - - -

3. Nepal Government’s Development Bonds - 1,285,600,000 1,285,600,000 155,600,000

4. Nepal Rastra Bank Bonds - - - -

5. Foreign Securities - - - -

6. Local Licenced Institutions - 101,600,000 101,600,000 36,998,400

7. Foreign Banks - 1,548,038,135 1,548,038,135 478,913,487

8. Corporate Shares - 38,558,400 38,558,400 38,558,400

9. Corporate Bonds & Debentures - - - -

10. Other Investments - 2,880,725,000 2,880,725,000 189,475,000

TOTAL INVESTMENT - 7,259,794,085 7,259,794,085 3,054,741,181

Less : Provision - - - -

Net Investment 7,259,794,085 3,054,741,181


INVESTMENT IN SHARES, DEBENTURES & BONDS PARTICULARS COST PRICE MARKET PRICE PROVISION BOOK VALUE CURRENT PREVIOUS

1. Investment in Shares 38,558,400 121,250,388 - 38,558,400 38,558,400

1.1. Gurans Life Insurance 19,858,400 121,250,388 - 19,858,400 19,858,400

208,334 Ordinary Shares of Rs 100 Each

(Includes Right & Bonus Shares)

1.2. Nepal Clearing House Limited 2,500,000 Not Listed - 2,500,000 2,500,000


1.3. National Banking Institute (Previously NBTI) 1,200,000 Not Listed - 1,200,000 1,200,000


1.4. Nepal Electronic Payment System 15,000,000 Not Listed - 15,000,000 15,000,000


2. Investment in Debentures & Bonds

2.1. ……………………………………………

2.2. ……………………………………………

2.3. ……………………………………………

Total Investments 38,558,400 121,250,388 - 38,558,400 38,558,400

3. Provision for Loss

3.1. Upto Previous Year

3.2. Adjustment This Year

Total Provision - - - -

NET BALANCE 38,558,400 121,250,388 - 38,558,400 38,558,400

As on 31st Ashad 2072 (16th July 2015) Schedule 4.12 (A(




INVESTMENTS (HELD FOR TRADING) As on 31st Ashad 2072 (16th July 2015) Schedule 4.12.1

INVESTMENTS (HELD TILL MATURITY) As on 31st Ashad 2072 (16th July 2015) Schedule 4.12.2

PARTICULARS COST PRICE MARKET VALUE (NPR) ADJUSTMENT FUND CURRENT YEAR PREVIOUS YEAR CURRENT YEAR PREVIOUS YEAR

1. Government of Nepal - Treasury bills

2. Government of Nepal - Savings Bonds

3. Government of Nepal - Development Bonds

4. Nepal Rastra Bank Bonds

5. Foreign Securities

6. Shares of Local Licensed Institutions

7. Bonds & Debentures of Local LicensedInstitutions

8. Shares,Bonds & Debenture of Organized Institutions

9. Placement

10. Inter bank Lending

11. Other Investments

TOTAL INVESTMENT HELD FOR TRADING


1. Government of Nepal - Treasury bills 1,405,272,550


3. Government of Nepal - Development Bonds 1,285,600,000





8. Shares,Bonds & Debenture of Organized Institutions

9. Placement 1,649,638,135

10. Other Investment 2,880,725,000

TOTAL INVESTMENT HELD TILL MATURITY 7,221,235,685 - - - -




INVESTMENTS (AVAILABLE FOR SALE) As on 31st Ashad 2072 (16th July 2015) Schedule 4.12.3


1. Government of Nepal - Treasury bills -


3. Government of Nepal - Development Bonds -





8. Shares,Bonds & Debenture of Organized Institutions 38,558,400 121,250,388 22,800,000 15,397,168 697,168

-Listed 19,858,400 121,250,388 22,800,000 397,168 397,168

-Unlisted 18,700,000 Not Listed Not Listed 15,000,000 300,000

9. Placement

10. Inter bank Lending -

11. Other Investment

TOTAL INVESTMENT AVAILABLE FOR SALE 38,558,400 121,250,388 22,800,000 15,397,168 697,168




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SECURITIES FOR LOANS, ADVANCE & BILLS PURCHASE PARTICULARS CURRENT YEAR NPR PREVIOUS YEAR NPR

(A) Secured 27,392,053,276 20,978,239,128

1. Collateral of Movable/Immovable Assets 25,833,579,075 19,671,308,013

2. Guarantee of Local Licensed Institutions - -

3. Guarantee of Government of Nepal - -

4. Guarantee of Internationally Rated Banks - -

5. Export Documents - -

6. Fixed Deposit Receipts 90,027,349 132,680,021

(a) Own FDR 90,027,349 132,680,021

(b) FDR of other Banks - -

7. Government Bonds - -

8. Counter Guarantees - -

9. Personal Guarantee - -

10. Other Securities 1,468,446,852 1,174,251,094

(B) Unsecured - -

TOTAL LOANS, ADVANCE & BILLS PURCHASE 27,392,053,276 20,978,239,128

As on 31st Ashad 2072 (16th July 2015) Schedule 4.13A




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23,9

92,3

82

247,0

48,2

61

234,9

88,3

66

3. W

ritte

n D

own

Valu

e (1

-2)

-

76

,13

9,8

78

-

12

3,1

21

,49

7

13,9

71,9

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213,2

33,2

99

187,9

32,8

99

4. La

nd

5. C

apita

l Con

stru

ctio

n( C

apita

l WIP

)

6. Le

aseh

old

Ass

ets

(net

of a

mor

tisat

ion)

9

6,4

22,4

84

9

6,4

22,4

84

103,9

37,3

95

TOTA

L (3

+4+

5+

6)

3

09

,65

5,7

83

2

91

,87

0,2

94

Sche

dule

4.1

4

PART

ICUL

ARS

A

SSET

S (N

PR)

C

URRE

NT YE

AR

PRE

VIOU

S YE

AR

B

UILD

ING

V

EHIC

LE

MAC

HINE

RY

OFF

ICE

EQUI

PMEN

T

OTH

ERS

N

PR

NPR




NO

N-B

AN

KIN

G A

SS

ET

SA

s on

31st

Ash

ad 2

072 (

16th

Jul

y 2015)

SAN

GA

M IN

STIT

UTE

PVT

. LT

D.,

VEN

TEC

H

29

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-13

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3

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00,0

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ICA

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L IN

TER

NAT

ION

AL

PVT

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(Cha

rles

Will

iam

Men

dies

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up)

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AJ

KAT

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AUR

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NA

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SIG

NAT

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E P

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PER

TIES

&

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isch

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%

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26

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6

-

PS

PASM

INA

( K

athm

andu

-15,

Dal

lu)

16

-Jul

-15

1

0,1

15

,47

7

10

0%

1

0,1

15

,47

7

-

-

-

RAT

NA

KES

HA

RI (

Mad

hhya

pur

Thim

i -15,

Kau

salta

r)

16

-Jul

-15

1

2,9

23

,37

4

10

0%

1

2,9

23

,37

4

-

-

-

TOTA

L N

BA

104,7

65,5

97

-

1

04,7

65,5

97

-

3

5,1

46

,87

8

-

NAM

E &

ADDR

ESS

OF B

ORRO

WER

DA

TE O

F AS

SUM

ING

NBA

GROS

S

L

ESS:

PRO

VISI

ON

NE

T NB

A

PREV

IOUS

YEAR

(NPR

)

N

BA (N

PR)

%

NPR

NPR

G

ROSS

N

ET

Sche

dule

4.1

5




OTHER ASSETS PARTICULARS CURRENT YEAR NPR PREVIOUS YEAR NPR

1. Stock of Stationery 10,038,745 13,730,122

2. Income Receivable on Investments 9,213,669 3,895,660

3. Accrued Interest on Loans (Net off Suspense) 6,970,701 8,148,417

Accrued Interest on Loans 398,661,728 401,206,683

Less: Interest Suspense (391,691,027) (393,058,266)

4. Commision Receivable - -

5. Sundry Debtors 11,262,318 3,138,862

6. Staff Loans and Advances 167,216,707 142,604,137

Staff Loans 157,706,201 133,548,565

Staff Advances 9,510,506 9,055,572

7. Prepayments 14,545,240 16,234,871

8. Cash-in-Transit - -

Cash in Transit NRS - -

Fund in Transit IRs - -

9. Other Transit Items ( including cheques) 89,242 11,137

Clg items O/W NRs 89,242 11,137

Clg items O/W FCY - -

10. Drafts Paid Without Notice - -

11. Expenses to be Written off 13,848,744 28,187,409

12. Branch Adjustment Accounts 141,844 122,834

13. Deferred Tax Asset 10,296,879 15,371,798

14. Others 137,549,776 104,663,916

a. Advance Income Tax (Net Off) 84,357,745 78,193,815

b. Others 53,192,031 26,470,101

TOTAL OTHER ASSETS 381,173,865 336,109,163


OTHER ASSETS (ADDITIONAL STATEMENT) As on 31st Ashad 2072 (16th July 2015) Schedule 4.16A

PARTICULARS THIS YEAR NPR PREVIOUS YEAR UPTO 1 YEAR 1 TO 3 YEARS ABOVE 3 YEARS TOTAL NPR

1. Accrued Interest on Loans 195,222,159 175,844,990 27,594,579 398,661,728 401,206,683

2. Draft Paid without Notice

3. Branch Adjustment Account - 141,844 - 141,844 122,834

4. Local/Foreign Agency Account

TOTAL 195,222,159 175,986,834 27,594,579 398,803,572 401,329,517




CONTINGENT LIABLITIES PARTICULARS CURRENT YEAR NPR PREVIOUS YEAR NPR

1. Claims on Bank but not Accepted by the Bank -

2. Letters of Credit (Full Amount) 1,505,466,709 1,072,246,807

a. Letter of Credit With Maturity Less than 6 Months 1,505,466,709 1,072,246,807

b. Letter of Credit With Maturity More than 6 Months - -

3. Rediscounted Bills -

4. Unmatured Guarantees/Bonds 3,198,146,377 2,682,679,335

a. Bid Bonds 733,243,791 497,368,020

b. Performance Bonds 2,464,902,586 2,185,311,315

c. Other Guarantee/Bonds -

5. Unpaid Shares in Investment -

6. Forward Exchange Contract Liabilities 936,589,440 440,078,625

7. Bills under Collection 345,360,687 303,290,018

8. Acceptances and Endorsements 310,574,418 364,569,422

9. Underwriting Commitments

10. Irrevocable Loan Commitments 1,087,265,140 752,362,229

11. Guarantees issued against Counter Guarantee of In’lly Rated Foreign Banks

12. Advance Payment Guarantees 1,153,406,223 914,685,368

13. Financial Guarantees

14. Contingent Liabilities on Income Tax 34,416,805 29,506,571

15. …………………..

TOTAL CONTINGENT LIABLITIES 8,571,225,800 6,559,418,375





INTEREST INCOME PARTICULARS CURRENT YEAR NPR PREVIOUS YEAR NPR

A. On Loans, Advances and Overdrafts 2,357,715,473 2,381,299,318

1. Loans & Advacnes 1,708,733,418 1,684,491,758

2. Overdrafts 648,982,055 696,807,560

B. On Investment 37,181,683 34,463,254

1. Nepal Government Securities 33,871,026 32,653,972

a. Treasury Bills 6,216,329 19,842,222

b. Development Bonds 15,076,705 12,175,915

c. National Savings Certificates - -

d. Reverse Repo & Deposit Collection 12,577,992 635,835

2. Foregin Securities - -

a. ……………….

b. ………………

3. Nepal Rastra Bank Bonds - -

4. Debentures & Bonds - -

5. Interest on Interbank Placements 3,310,657 1,809,282

a. Bank/ Financial Institutions 3,310,657 1,809,282

b. Other Institutions - -

C. On Agency Balances 204,465 127,537

1. Local Banks/Financial Institutions - -

2. Foreign Banks 204,465 127,537

D. On Money at Call and Short Notice 39,685 1,915,011

1. Local Banks/Financial Institutions 39,685 1,915,011

2. Foreign Banks - -

E. On Others 7,516,010 6,040,744

1. Local Banks/Financial Institutions - -

2. Foreign Banks - -

3. Others 7,516,010 6,040,744

TOTAL INTEREST INCOME 2,402,657,316 2,423,845,864

For the Period Ended 1st Shrawan 2071 to 31st Ashad 2072 (17th July 2014 to 16th July 2015) Schedule 4.18




INTEREST EXPENSES PARTICULARS CURRENT YEAR NPR PREVIOUS YEAR NPR

A. ON DEPOSIT LIABLITY 1,293,535,167 1,328,709,677

1. Fixed Deposits 735,741,914 791,770,977

1.1 Local Currency 717,474,541 761,412,814

1.2 Foreign Currency 18,267,373 30,358,163

2. Savings Deposits 342,963,283 362,004,953

2.1 Local Currency 342,485,177 361,375,895

2.2 Foreign Currency 478,106 629,058

3. Call Deposits 214,829,970 174,933,747

3.1 Local Currency 212,822,905 173,886,083

3.2 Foreign Currency 2,007,065 1,047,664

4. Certificate of Deposits

B. ON BORROWINGS 2,822,053 2,272

1. Debentures & Bonds - -

2. Loan From Nepal Rastra Bank - -

3. Inter Bank Borrowings 2,822,053 2,272

4. Other Organized Institutions - -

5. Other Loans - -

C. ON OTHERS - -

TOTAL INTEREST EXPENSES 1,296,357,220 1,328,711,949


COMMISSION & DISCOUNT PARTICULARS CURRENT YEAR NPR PREVIOUS YEAR NPR

A. Bills Purchased and Discounted 821,987 439,255

1. Local 604,615 220,163

2. Foreign 217,372 219,092

B. Commission 100,812,615 86,649,273

1. Letters of Credit 25,498,926 21,508,678

2. Guarantees 14,422,820 9,339,973

3. Collection Fees 4,289,987 4,952,690

4. Remittance Fees 4,970,379 6,263,965

5. Credit Cards - -

6. Share Underwriting /Issues - -

7. Government Transactions - -

8. Agency Commission 4,106,777 5,115,105

9. Exchange Fee - -

10. Bid Bonds/ Performance Bonds 47,523,726 35,254,470

C. Others 17,743,567 21,218,914

TOTAL COMMISSION & DISCOUNT 119,378,169 104,093,050





OTHER OPERATING INCOME PARTICULARS CURRENT YEAR NPR PREVIOUS YEAR NPR

1. Rental on Safe Deposit Lockers 5,686,016 3,464,600

2. Issue and Renewal of Credit Cards - -

3. Issue and Renewal of ATM Cards 53,900,426 44,444,403

4. Telex/ T. T. 3,568,971 4,295,787

5. Service Charges 119,531,491 86,529,659

6. Renewal Fees - -

7. Others 4,586,569 2,553,801

TOTAL OTHER OPERATING INCOME 187,273,473 141,288,250


STAFF EXPENSES PARTICULARS CURRENT YEAR NPR PREVIOUS YEAR NPR

1. Salary 139,117,022 129,090,296

2. Allowances 103,323,617 103,587,321

3. Contribution to Provident Fund 10,639,263 10,322,999

4. Training Expenses 2,435,591 2,726,023

5. Uniform 3,266,164 2,901,135

6. Medical - -

7. Insurance 5,646,931 6,475,327

8. Pension and Gratuity Expenses 3,825,527 5,934,000

9. Others 3,657,214 2,861,225

TOTAL SALARY 271,911,329 263,898,326


EXCHANGE FLUCUATION INCOME PARTICULARS CURRENT YEAR NPR PREVIOUS YEAR NPR

A. Revaluation Gain 10,330,569 27,676,101

B. Trading Gain (Except exchange fees) 69,985,258 35,537,289

TOTAL FOREX INCOME 80,315,827 63,213,390





OFFICE OVERHEAD EXPENSES PARTICULARS CURRENT YEAR NPR PREVIOUS YEAR NPR

1. House Rent 56,182,969 52,011,655

2. Electricity and Water 11,095,711 10,384,644

3. Repairs and Maintenance 14,085,844 13,261,994

a. Building 1,144,719 1,697,300

b. Vehicles 1,230,031 1,536,510

c. Others 11,711,094 10,028,184

4. Insurance 19,129,262 15,939,121

5. Postage, Telex, Telephone, Fax 7,786,135 8,894,717

6. Office Equipment, Furniture & Repairs 9,008,915 6,239,500

7. Travelling Allowance and Expenses 5,732,249 4,442,069

8. Printing and Stationery 12,529,280 11,213,355

9. Books and Periodicals 196,868 181,488

10. Advertisements 13,016,654 5,233,274

11. Legal Fees - 6,585

12. Donations - -

13. Expenses Relating to Board of Directors 2,311,878 1,654,929

a. Meeting Fees 2,081,000 1,222,000

b. Other Expenses 230,878 432,929

14. Annual General Meeting Expenses 1,049,504 957,289

15. Expenses Relating to Audit 750,050 645,500

a. Audit Fees 435,050 395,500

b. Other Expenses 315,000 250,000

16. Fund Transfer Expense - -

17. Depreciation on Fixed Assets 31,739,091 65,350,146

18. Amortization of Preliminary Expenses - -

19. Share Issue Expenses - -

20. Professional Fees 7,282,939 5,651,204

21. Entertainment 2,162,916 1,164,571

22. Written off Expenses 32,224,616 33,490,586

23. Security Expenses 41,194,807 38,661,253

24. Credit Guarantee Premium - -

25. Commission and Discount 8,192,902 7,702,118

26. Others Expenses 80,798,770 77,462,906

a. Registration Fees 1,975,176 1,932,304

b. Expense for Capital Items 482,536 619,342

c. ATM and Card Related Expenses 35,861,791 26,185,503

d. Lease Rental Expenses 9,507,529 8,592,828

e. Subscription Fees 2,402,766 4,594,799

f. Others 30,568,972 35,538,130

TOTAL OFFICE OVERHEAD EXPENSES 356,471,360 360,548,904





PROVISIONFOR POSSIBLE LOSS PARTICULARS CURRENT YEAR NPR PREVIOUS YEAR NPR

1. Increase in Loan Loss Provision 354,044,366 461,278,032

2. Increase in Provision for Loss on Investment - -

3. Provision for Non Banking Assets 104,765,597 5,146,878

4. Provision for Other Assets - -

TOTAL PROVISION FOR POSSIBLE LOSS 458,809,963 466,424,910


NON OPERATING INCOME PARTICULARS CURRENT YEAR NPR PREVIOUS YEAR NPR

1. Profit (Loss) on Sale of Investments - -

2. Profit (Loss) on Sale of Assets 2,085,084 2,375,169

3. Dividend 171,000 114,000

4. Subsidies Received from Nepal Rastra Bank - -

5. Others 566,728 -

TOTAL NON OPERATING INCOME 2,822,812 2,489,169


PROVISION WRITE BACK PARTICULARS CURRENT YEAR NPR PREVIOUS YEAR NPR

1. Loan Loss Provision Written Back 381,987,976 93,542,486

2. Provision against Non Banking Assets Written Back 35,146,878 -

3. Provision against Investment Written Back - -

4. Provision against Other Assets Written Back - -

TOTAL PROVISION WRITE BACK 417,134,854 93,542,486


EXTRA ORDINARYINCOME/(LOSS) PARTICULARS CURRENT YEAR NPR PREVIOUS YEAR NPR

1. Recovery of Loan Written off -

2. Voluntary Retirement Scheme Expenses -

3. Loan Write Offs { Refer Schedule 4.28 (Ka)} (92,468,268) (14,645,826)

4. Other Expense/Income -

5. ……….. -

TOTAL EXTRA ORDINARY INCOME (92,468,268) (14,645,826)





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Mill

ion

-

Auc

tion

Not

ices

in N

atio

nal D

aily

New

spap

er

3

17

, 1

12

, 6

44

, 5

75

, 6

43

,

- B

lack

listin

g

5

73

, 6

21

, 7

18

, 7

19

, 5

54

,

- Fi

le C

ase

with

Deb

t R

ecov

ery

Trib

unal

(D

RT)

”

1

69

, 4

54

& 5

60

, To

tal A

rea:

5

0.6

5 K

atth

a. b

. C

ompl

ete

Set

of

cru

sher

uni

t, K

omat

su W

heel

Lo

ader

, A

shok

Ley

land

Tip

per,

D

iese

l Gen

erat

or,

Tran

sfor

mer

6

30

KVA

.”TO

TAL

9

2,4

63

,26

8

CUST

OMER

LO

AN T

YPE

AMOU

NT

TYPE

OF

SECU

RITY

BA

SIS

OF V

ALUA

TION

LO

AN

INIT

ATIO

N M

ADE

FOR

RECO

VERY

APPR

OVED

REM

ARKS

BY

Con

td..

. D

ETAIL

S O

F LO

AN

WR

ITE

OFF




STA

TE

ME

NT

OF

LOA

NS

& A

DV

AN

CE

S E

XT

EN

DE

D T

O D

IRE

CT

OR

S/

CH

IEF

EX

EC

UT

IVE

/P

RO

MO

TE

RS

/E

MP

LOY

EE

S A

ND

SH

AR

EH

OL

DE

RS

HO

LD

ING

M

OR

E T

HA

N 1

PE

RC

EN

T S

HA

RE

S

The

Stat

emen

t of

am

ount

incl

ude

unde

r to

tal a

mou

nt o

f Bill

s pu

rcha

ses

& D

isco

unte

d , Lo

ans,

Adv

ance

s an

d O

verd

raft

, pr

ovid

ed t

o D

irect

ors,

Chi

ef E

xecu

tives

, Pr

omot

ers,

Em

ploy

ees,

Sha

reho

lder

s

hold

ing

mor

e th

an 1

% s

hare

s an

d to

the

indi

vidu

al m

embe

r of

the

ir un

divi

ded

fam

ily o

r ag

ains

t th

e gu

aran

tee

of s

uch

pers

ons

or t

o th

e O

rgan

isat

ion

or C

ompa

nies

in w

hich

suc

h in

divi

dual

s ar

e

man

agin

g ag

ent

are

as fo

llow

s.

As

on 3

1st

Ash

ad 2

072 (

16th

Jul

y 2015)

(A)

D

irect

ors

-

-

-

-

-

-

-

1

2

3

(B)

C

hief

Exe

cutiv

e -

-

-

-

-

-

-

1

2

3

(C)

Pr

omot

ers

-

-

-

-

-

-

-

1

2

3

(D)

Em

ploy

ees

-

-

-

-

-

-

-

1

2

3

(E)

Sh

areh

olde

rs h

oldi

ng m

ore

than

1%

Sha

res

-

-

-

-

-

-

1

2

3

LA

ST YE

AR B

ALAN

CE

TH

IS YE

AR R

ECOV

ERY

TH

IS YE

AR D

ISBU

RSHM

ENT

THIS

YEAR

BAL

ANCE

NA

ME

PRIN

CIPL

E IN

TERE

ST

PRIN

CIPL

E IN

TERE

ST

PRIN

CIPL

E PR

INCI

PLE

INTE

REST

NPR

NPR

NPR

NPR

NPR

NPR

NPR

Sche

dule

4.2

9




CAPITALADEQUACY TABLE PARTICULARS CURRENT YEAR NPR PREVIOUS YEAR NPR

1.1 RISK WEIGHTED EXPOSURE

a. Risk Weighted Exposure for Credit Risk 29,173,117 22,322,842

b. Weighted Exposure for Operational Risk 1,872,560 1,536,970

c. Risk Weighted Exposure for Market Risk 58,330 21,860

Adjustments under Pillar II

ALM policies & practices are not satisfactory, add 1% of net interest income to RWE 10,951 9,889

Add :% of the total deposits due to insufficient Liquid Assets - -

3% additional risk weight for Operational Risk 464,136 407,634

3% adjustment on Total RWE 933,120 716,450

TOTAL RISK WEIGHTED EXPOSURES (AFTER BANK’S ADJUSTMENTS OF PILLAR II) 32,512,214 25,015,645

1.2 CAPITAL

Core Capital (Tier 1) 3,285,847 2,660,139

a. Paid up Equity Share Capital 2,443,688 2,236,650

b. Irredeemable Non-cumulative preference shares - -

c. Share Premium 32,408 32,408

d. Proposed Bonus Equity Shares 528,968 -

e. Statutory General Reserves 294,760 200,589

f. Retained Earnings 3,285 195,615

g. Un-audited current year cumulative profit - -

h. Capital Redemption Reserve - -

i. Capital Adjustment Reserve - -

j. Dividend Equalization Reserves - -

k. Other Free Reserve 12,893 17,968

l. Less: Goodwill - -

m. Less: Fictitious Assets - (3,233)

n. Less: Deferred Tax Assets (10,297)

o. Less: Investment in equity in licensed Financial Institutions - -

p. Less: Investment in equity of institutions with financial interests (19,858) (19,858)

q. Less: Investment in equity of institutions in excess of limits - -

r. Less: Investments arising out of underwriting commitments - -

s. Less: Reciprocal crossholdings - -

t. Less: Other Deductions - -

Adjustments under Pillar II

Less: Shortfall in Provision (6.4 a 1) - -

Less: Loans & Facilities extended to Related Parties & Restricted lending (6.4 a 2) - -

Supplementary Capital (Tier 2) 326,215 214,104

a. Cumulative and/or Redeemable Preference Share

b. Subordinated Term Debt

c. Hybrid Capital Instruments

d. General loan loss provision 294,244 199,415

e. Exchange Equalization Reserve 16,574 13,992

f. Investment Adjustment Reserve 15,397 697

g. Assets Revaluation Reserve

h. Other Reserves

TOTAL CAPITAL FUND 3,612,062 2,874,243

1.3 CAPITAL ADEQUACY RATIOS

Tier 1 Capital to Total Risk Weighted Exposures (After Bank’s adjustments of Pillar II) 10.11% 10.63%

Tier 1 and Tier 2 Capital to Total Risk Weighted Exposures(After Bank’s adjustments of Pillar II) 11.11% 11.49%

(After Adjustment of 3% in Operational Risk & 3% onTotal RWE)As on 31st Ashad 2072 (16th July 2015) Schedule 4.30A

Amount in Thousand




RIS

K W

EIG

HT

ED

EX

PO

SU

RE

FOR

CR

ED

IT R

ISK

As

on 3

1st

Ash

ad 2

072 (

16th

Jul

y 2015)

Sche

dule

4.3

0B

Con

td... R

ISK

WEI

GH

TED

EXP

OSU

RE

FOR

CR

EDIT

RIS

K

Am

ount

in T

hous

and

A. B

ALA

NC

E S

HEET

EXP

OSU

RE

Cas

h B

alan

ce

86

7,6

51

-

-

8

67

,65

1

0%

-

8

62

,77

4

-

Bal

ance

With

Nep

al R

astr

a B

ank

1,8

90

,73

5

-

-

1,8

90

,73

5

0%

-

4

,36

5,6

31

-

Gol

d

1,9

52

-

-

1

,95

2

0%

-

1

,88

8

-

Inve

stm

ent

in N

epal

ese

Gov

ernm

ent

Secu

ritie

s

2

,69

0,8

73

-

-

2

,69

0,8

73

0

%

-

15

5,6

00

-

All

Cla

ims

on G

over

nmen

t of

Nep

al

9

0,6

14

-

-

9

0,6

14

0

%

-

90

,61

4

-

Inve

stm

ent

in N

epal

Ras

tra

Ban

k se

curit

ies

2,8

80

,72

5

-

-

2,8

80

,72

5

0%

-

2

,34

4,6

71

-

All

clai

ms

on N

epal

Ras

tra

Ban

k

-

-

-

-

0

%

-

-

-

Cla

ims

on F

orei

gn G

over

nmen

t an

d C

entr

al B

ank

(EC

A 0

-1)

-

-

0

%

-

-

-

Cla

ims

on F

orei

gn G

over

nmen

t an

d C

entr

al B

ank

(EC

A -

2)

-

-

-

2

0%

-

-

-

Cla

ims

on F

orei

gn G

over

nmen

t an

d C

entr

al B

ank(

ECA -

3)

-

-

-

5

0%

-

-

-

Cla

ims

on F

orei

gn G

over

nmen

t an

d C

entr

al B

ank(

ECA-4

-6)

-

-

-

1

00

%

-

-

-

Cla

ims

on F

orei

gn G

over

nmen

t an

d C

entr

al B

ank(

ECA -

7)

-

-

-

1

50

%

-

-

-

Cla

ims

On

BIS

, IM

F, E

CB

, EC

an

d on

Mul

tilat

eral

Dev

elop

men

t B

anks

(M

DB

’s)

reco

gniz

ed b

y th

e fram

ewor

k

-

-

0%

-

-

-

Cla

ims

on O

ther

Mul

tilat

eral

Dev

elop

men

t B

anks

-

-

-

1

00

%

-

-

-

Cla

ims

on P

ublic

Sec

tor

Entit

y (E

CA 0

-1)

-

-

-

2

0%

-

-

-

Cla

ims

on P

ublic

Sec

tor

Entit

y (E

CA 2

)

-

-

-

50

%

-

-

-

Cla

ims

on P

ublic

Sec

tor

Entit

y (E

CA 3

-6)

-

-

-

1

00

%

-

-

-

Cla

ims

on P

ublic

Sec

tor

Entit

y (E

CA 7

)

-

-

-

15

0%

-

-

-

Cla

ims

on d

omes

tic b

anks

tha

t m

eet

capi

tal a

dequ

acy

requ

irem

ents

16

5,0

12

-

16

5,0

12

2

0%

3

3,0

02

7

6,0

33

1

5,2

07

Cla

ims

on d

omes

tic b

anks

tha

t do

not

mee

t

capi

tal a

dequ

acy

requ

irem

ents

31

,88

7

-

3

1,8

87

1

00

%

31

,88

7

75

,68

0

75

,68

0

Cla

ims

on fo

reig

n ba

nk (

ECA R

atin

g 0-1

)

1

,28

8,5

48

-

1,2

88

,54

8

20

%

25

7,7

10

9

22

,31

7

18

4,4

63

Cla

ims

on fo

reig

n ba

nk (

ECA R

atin

g 2)

40

7,5

78

-

40

7,5

78

5

0%

2

03

,78

9

23

0,4

80

1

15

,24

0

Cla

ims

on fo

reig

n ba

nk (

ECA R

atin

g 3-6

)

-

-

-

10

0%

-

-

-

Cla

ims

on fo

reig

n ba

nk (

ECA R

atin

g 7)

-

-

-

1

50

%

-

-

-

CURR

ENT

YEAR

PREV

IOUS

YEAR

PA

RTIC

ULAR

S

GRO

SS B

OOK

VALU

E

SPEC

IFIC

PRO

VISI

ON

ELIG

IBLE

NE

T VA

LUE

RISK

WEI

GHT

RISK

WEI

GHT

NET

RISK

WEI

GHTE

D

(A)

(B)

C

RM

(D)

(A-B

-C)

(E)

E

XPOS

URE

(D *

E)

VAL

UE

EXP

OSUR

E




Con

td..

. R

ISK

WEI

GH

TED

EXP

OSU

RE

FOR

CR

EDIT

RIS

K

Cla

ims

on fo

reig

n ba

nk in

corp

orat

ed in

SAAR

C r

egio

n

oper

atin

g w

ith a

buf

fer

of 1

% a

bove

the

ir re

spec

tive

regu

lato

ry c

apita

l req

uire

men

t

56

,81

6

-

5

6,8

16

2

0%

1

1,3

63

2

3,2

73

4

,65

5

Cla

ims

on D

omes

tic C

orpo

rate

s

1

5,4

73

,80

0

3

9,9

67

1

5,4

33

,83

3

10

0%

1

5,4

33

,83

3

11

,87

4,6

81

1

1,8

74

,68

1

Cla

ims

on F

orei

gn C

orpo

rate

s (E

CA 0

-1)

-

-

-

2

0%

-

-

-

Cla

ims

on F

orei

gn C

orpo

rate

s (E

CA-2

)

-

-

-

50

%

-

-

-

Cla

ims

on F

orei

gn C

orpo

rate

s (E

CA 3

-6)

-

-

-

1

00

%

-

-

-

Cla

ims

on F

orei

gn C

orpo

rate

s (E

CA 7

)

-

-

-

15

0%

-

-

-

Reg

ulat

ory

Ret

ail P

ortfo

lio (

Not

Ove

rdue

)

5

,46

6,9

71

42

4,8

35

5

,04

2,1

36

7

5%

3

,78

1,6

02

3

,28

6,1

59

2

,46

4,6

19

Cla

ims

fulfi

lling

all

crite

rion

of r

egul

ator

y re

tail

exce

pt g

ranu

larit

y

12

,79

6

-

1

2,7

96

1

00

%

12

,79

6

19

,66

3

19

,66

3

Cla

ims

secu

red

by r

esid

entia

l pro

pert

ies

2

,43

5,2

51

-

2,4

35

,25

1

60

%

1,4

61

,15

1

1,5

50

,49

3

93

0,2

96

Cla

ims

not

fully

sec

ured

by

resi

dent

ial p

rope

rtie

s

-

-

-

1

50

%

-

-

-

Cla

ims

secu

red

by r

esid

entia

l pro

pert

ies

(Ove

rdue

)

1

0,4

26

-

10

,42

6

10

0%

1

0,4

26

8

,83

4

8,8

34

Cla

ims

secu

red

by C

omm

erci

al r

eal e

stat

e

1

,98

3,8

44

-

1,9

83

,84

4

10

0%

1

,98

3,8

44

2

,05

3,0

37

2

,05

3,0

37

Past

due

cla

ims

(exc

ept

for

clai

m s

ecur

ed b

y

resi

dent

ial p

rope

rtie

s)

8

29

,23

8

71

7,7

26

-

1

11

,51

2

15

0%

1

67

,26

8

20

5,5

17

3

08

,27

6

Hig

h R

isk

clai

ms

(Ven

ture

cap

ital,

priv

ate

equi

ty

inve

stm

ents

, pe

rson

al lo

ans

and

cred

it ca

rd r

ecei

vabl

es)

1,0

45

,03

9

1

9,6

33

1

,02

5,4

06

1

50

%

1,5

38

,10

9

39

4,8

49

5

92

,27

4

Inve

stm

ents

in e

quity

and

oth

er c

apita

l ins

trum

ents

of

inst

itutio

ns li

sted

in t

he s

tock

exc

hang

e

-

-

-

10

0%

-

-

-

Inve

stm

ents

in e

quity

and

oth

er c

apita

l ins

trum

ents

of

inst

itutio

ns n

ot li

sted

in t

he s

tock

exc

hang

e

1

8,7

00

-

18

,70

0

15

0%

2

8,0

50

1

8,7

00

2

8,0

50

Staf

f Loa

n se

cure

d by

res

iden

tial p

rope

rty

1

07

,61

9

10

7,6

19

6

0%

6

4,5

71

8

8,9

81

5

3,3

89

Inte

rest

rec

eiva

ble/

clai

m o

n go

vern

men

t se

curit

ies

9

,21

4

9,2

14

0

%

-

3,4

31

-

Cas

h in

tra

nsit

and

othe

r ca

sh it

ems

in t

he p

roce

ss o

f col

lect

ion

8

9

-

8

9

20

%

18

1

1

2

Oth

er A

sset

s

1,3

49

,06

6

77

7,1

10

-

5

71

,95

6

10

0%

5

71

,95

6

66

3,3

79

6

63

,37

9

TOTA

L

39

,11

4,4

43

1

,49

4,8

36

4

84

,43

5

37

,13

5,1

72

2

5,5

91,3

75

29,3

16,6

96

19,3

91,7

45

CUR

RENT

YEAR

PREV

IOUS

YEAR

PA

RTIC

ULAR

S

GRO

SS B

OOK

VALU

E

SPEC

IFIC

PRO

VISI

ON

ELIG

IBLE

NE

T VA

LUE

RISK

WEI

GHT

RISK

WEI

GHT

NET

RISK

WEI

GHTE

D

(A)

(B)

C

RM

(D)

(A-B

-C)

(E)

E

XPOS

URE

(D *

E)

VAL

UE

EXP

OSUR

E




Con

td..

. R

ISK

WEI

GH

TED

EXP

OSU

RE

FOR

CR

EDIT

RIS

K

B. O

FF B

ALA

NC

E S

HEET

EXP

OSU

RE

Rev

ocab

le C

omm

itmen

ts

-

-

0

%

-

-

-

Bill

s U

nder

Col

lect

ion

3

45

,36

1

34

5,3

61

0

%

-

30

3,2

90

-

Forw

ard

Exch

ange

Con

trac

t Li

abili

ties

93

6,5

89

-

93

6,5

89

1

0%

9

3,6

59

4

40

,07

9

44

,00

8

LC C

omm

itmen

ts W

ith O

rigin

al M

atur

ity

Up

to 6

mon

ths

(dom

estic

cou

nter

part

y)

1

,50

5,4

67

64

,35

1

1,4

41

,11

6

20

%

28

8,2

23

1

,00

7,8

96

2

01

,57

9

fore

ign

coun

terp

arty

(E

CA R

atin

g 0-1

)

-

2

0%

-

-

-

fore

ign

coun

terp

arty

(E

CA R

atin

g- 2

)

-

5

0%

-

-

-

fore

ign

coun

terp

arty

(E

CA R

atin

g 3-6

)

-

1

00

%

-

-

-

fore

ign

coun

terp

arty

(

ECA R

atin

g-7)

-

15

0%

-

-

-

LC C

omm

itmen

ts W

ith O

rigin

al M

atur

ity

Ove

r 6 m

onth

s (d

omes

tic c

ount

erpa

rty)

-

5

0%

-

-

-

fore

ign

coun

terp

arty

(

ECA R

atin

g 0-1

)

-

2

0%

-

-

-

fore

ign

coun

terp

arty

(

ECA R

atin

g-2)

-

50

%

-

-

-

fore

ign

coun

terp

arty

(

ECA R

atin

g 3-6

)

-

1

00

%

-

-

-

fore

ign

coun

terp

arty

(

ECA R

atin

g-7)

-

15

0%

-

-

-

“ B

id B

ond,

Per

form

ance

Bon

d an

d C

ount

er g

uara

ntee

(dom

estic

cou

nter

par

ty)

“

3,1

98

,14

6

1

54

,94

2

3,0

43

,20

4

50

%

1,5

21

,60

2

2,5

27

,73

7

1,2

63

,86

9

fore

ign

coun

terp

arty

(

ECA R

atin

g 0-1

)

-

2

0%

-

-

-

fore

ign

coun

terp

arty

(E

CA R

atin

g-2)

-

50

%

-

-

-

fore

ign

coun

terp

arty

(

ECA R

atin

g 3-6

)

-

1

00

%

-

-

-

fore

ign

coun

terp

arty

(

ECA R

atin

g -7

)

-

1

50

%

-

-

-

Und

erw

ritin

g co

mm

itmen

ts

-

50

%

-

-

-

Lend

ing

of B

ank’

s Se

curit

ies

or

Post

ing

of S

ecur

ities

as

colla

tera

l

-

1

00

%

-

-

-

Rep

urch

ase

Agr

eem

ents

, Ass

ets

sale

with

reco

urse

(in

clud

ing

repo

/ rev

erse

rep

o)

-

10

0%

-

-

-

Adv

ance

Pay

men

t G

uara

ntee

1,1

53

,40

6

1

6,3

90

1

,13

7,0

16

1

00

%

1,1

37

,01

6

89

8,2

95

8

98

,29

5

Fina

ncia

l Gua

rant

ee

-

1

00

%

-

-

-

Acc

epta

nces

and

End

orse

men

ts

3

10

,57

4

2

1,2

02

2

89

,37

2

10

0%

2

89

,37

2

34

3,3

67

3

43

,36

7

Unp

aid

port

ion

of P

artly

pai

d sh

ares

and

Sec

uriti

es

-

10

0%

-

-

-

Irre

voca

ble

Cre

dit

com

mitm

ents

(S

hort

ter

m)

1,0

87

,26

5

-

1

,08

7,2

65

2

0%

2

17

,45

3

75

2,3

62

1

50

,47

2

Irre

voca

ble

Cre

dit

com

mitm

ents

(lo

ng t

erm

)

-

-

5

0%

-

-

-

CURR

ENT

YEAR

PREV

IOUS

YEAR

PA

RTIC

ULAR

S

GRO

SS B

OOK

VALU

E

SPEC

IFIC

PRO

VISI

ON

ELIG

IBLE

NE

T VA

LUE

RISK

WEI

GHT

RISK

WEI

GHT

NET

RISK

WEI

GHTE

D

(A)

(B)

C

RM

(D)

(A-B

-C)

(E)

E

XPOS

URE

(D *

E)

VAL

UE

EXPO

SURE




Con

td..

. R

ISK

WEI

GH

TED

EXP

OSU

RE

FOR

CR

EDIT

RIS

K

Oth

er C

ontin

gent

Lia

bilit

ies

3

4,4

17

-

34

,41

7

10

0%

3

4,4

17

2

9,5

07

2

9,5

07

Unp

aid

Gua

rant

ee C

laim

s

-

-

-

-

TOTA

L

8,5

71

,22

5

-

25

6,8

85

8

,31

4,3

40

3,5

81,7

42

6,3

02,5

33

2,9

31,0

97

Tota

l RW

E fo

r cr

edit

Ris

k (A

) +

(B)

4

7,6

85

,66

8

1,4

94

,83

6

74

1,3

20

4

5,4

49

,51

2

29

,17

3,1

17

3

5,6

19

,22

9

22

,32

2,8

42

Adj

ustm

ents

und

er P

illar

II

-

-

Add

: 10%

of t

he lo

an a

nd fa

cilit

ies

in

exce

ss o

f Sin

gle

Obl

igor

L

imits

(6.4

a 3

) -

-

-

-

-

-

-

Add

: 1%

of t

he c

ontr

act(

sale

) va

lue

in c

ase

of t

he s

ale

of c

redi

t w

ith r

ecou

rse

(6.4

a 4

) -

-

-

-

-

-

TOTA

L R

WE F

OR

CR

ED

IT R

ISK

(AFT

ER

BA

NK

’S A

DJU

STM

EN

TS O

F P

ILLA

R I

I)

47

,68

5,6

68

1

,49

4,8

36

7

41

,32

0

45

,44

9,5

12

2

9,1

73,1

17

35,6

19,2

29

22,3

22,8

42

CURR

ENT

YEAR

PREV

IOUS

YEAR

PA

RTIC

ULAR

S

GRO

SS B

OOK

VALU

E

SPEC

IFIC

PRO

VISI

ON

ELIG

IBLE

NE

T VA

LUE

RISK

WEI

GHT

RISK

WEI

GHT

NET

RISK

WEI

GHTE

D

(A)

(B)

C

RM

(D)

(A-B

-C)

(E)

E

XPOS

URE

(D *

E)

VAL

UE

EXP

OSUR

E




EL

IGIB

LE

CR

ED

IT R

ISK

MIT

IGA

NT

S

As

on 3

1st

Ash

ad 2

072 (

16th

Jul

y 2015)

(

a)

(

b)

(

c)

(

d)

(

e)

(

f)

(

g)

(

h)

(

i)

BA

LAN

CE S

HEET

EXP

OSU

RES

-

Cas

h B

alan

ce

-

Bal

ance

with

Nep

al R

astr

a B

ank

-

Gol

d

-

Inve

stm

ent

in N

epal

ese

Gov

ernm

ent

Secu

ritie

s

-

All

Cla

ims

on G

over

nmen

t of

Nep

al

-

Inve

stm

ent

in N

epal

Ras

tra

Ban

k se

curit

ies

-

All

clai

ms

on N

epal

Ras

tra

Ban

k

-

Cla

ims

on F

orei

gn G

over

nmen

t Se

curit

ies

(EC

A 0

-1)

-

Cla

ims

on F

orei

gn G

over

nmen

t Se

curit

ies

(EC

A -

2)

-

-

-

-

-

-

-

-

-

-

Cla

ims

on F

orei

gn G

over

nmen

t Se

curit

ies

(EC

A -

3)

-

-

-

-

-

-

-

-

-

-

Cla

ims

on F

orei

gn G

over

nmen

t Se

curit

ies

(EC

A-4

-6)

-

-

-

-

-

-

-

-

-

-

Cla

ims

on F

orei

gn G

over

nmen

t Se

curit

ies

(EC

A -

7)

-

-

-

-

-

-

-

-

-

-

Cla

ims

On

BIS

, IM

F, E

CB

, EC

an

d on

Mul

tilat

eral

Dev

elop

men

t B

anks

(M

DB

’s)

reco

gniz

ed b

y th

e fram

ewor

k -

-

-

-

-

-

-

-

-

-

Cla

ims

on O

ther

Mul

tilat

eral

Dev

elop

men

t B

anks

-

-

-

-

-

-

-

-

-

-

Cla

ims

on P

ublic

Sec

tor

Entit

y (E

CA 0

-1)

-

-

-

-

-

-

-

-

-

-

Cla

ims

on P

ublic

Sec

tor

Entit

y (E

CA 2

)

-

-

-

-

-

-

-

-

-

-

Cla

ims

on P

ublic

Sec

tor

Entit

y (E

CA 3

-6)

-

-

-

-

-

-

-

-

-

-

Cla

ims

on P

ublic

Sec

tor

Entit

y (E

CA -

7)

-

-

-

-

-

-

-

-

-

-

Cla

ims

on d

omes

tic b

anks

tha

t m

eet

capi

tal

adeq

uacy

req

uire

men

ts

-

-

-

-

-

-

-

-

-

-

Cla

ims

on d

omes

tic b

anks

tha

t do

not

mee

t

capi

tal a

dequ

acy

requ

irem

ents

-

-

-

-

-

-

-

-

-

-

Cla

ims

on fo

reig

n ba

nk (

ECA R

atin

g 0-1

)

-

-

-

-

-

-

-

-

-

-

Cla

ims

on fo

reig

n ba

nk (

ECA R

atin

g 2)

-

-

-

-

-

-

-

-

-

-

Cla

ims

on fo

reig

n ba

nk (

ECA R

atin

g 3-6

)

-

-

-

-

-

-

-

-

-

-

Cla

ims

on fo

reig

n ba

nk (

ECA R

atin

g- 7

)

-

-

-

-

-

-

-

-

-

-

Cla

ims

on fo

reig

n ba

nk in

corp

orat

ed in

SAAR

C r

egio

n

oper

atin

g w

ith a

buf

fer

of 1

% a

bove

the

ir re

spec

tive

regu

lato

ry c

apita

l req

uire

men

t -

-

-

-

-

-

-

-

-

-

D

EPOS

ITS

DE

POSI

TS

G

OVT.&

G’

TEE

OF

SEC/

G’TE

E G’

TEE

OF

G’TE

E OF

SE

C/G’

TEE

CRED

IT E

XPOS

URES

W

ITH

BANK

W

ITH

OTHE

R

GOLD

NR

B GO

VT. O

F OF

OTH

ER

DOM

ESTI

C M

DBS

OF F

OREI

GN

TOTA

L

BA

NKS/

FI

S

ECUR

ITIE

S

NEP

AL

S

OVER

EIGN

S

BAN

KS

B

ANKS

Sche

dule

4.3

0C

Con

td... EL

IGIB

LE C

RED

IT R

ISK

MIT

IGAN

TS

Am

ount

in N

PR

Tho

usan

d




Cla

ims

on D

omes

tic C

orpo

rate

s

39

,96

7

-

-

-

-

-

-

-

-

39

,96

7

Cla

ims

on F

orei

gn C

orpo

rate

s (E

CA 0

-1)

-

-

-

-

-

-

-

-

-

-

Cla

ims

on F

orei

gn C

orpo

rate

s (E

CA 2

) -

-

-

-

-

-

-

-

-

-

Cla

ims

on F

orei

gn C

orpo

rate

s (E

CA 3

-6)

-

-

-

-

-

-

-

-

-

-

Cla

ims

on F

orei

gn C

orpo

rate

s (E

CA -

7)

-

-

-

-

-

-

-

-

-

-

Reg

ulat

ory

Ret

ail P

ortfo

lio (

Not

Ove

rdue

) 3

5,0

10

-

38

9,8

25

-

-

-

-

-

-

4

24

,83

5

Reg

ulat

ory

Ret

ail P

ortfo

lio (

Ove

rdue

) -

-

-

-

-

-

-

-

-

-

Cla

ims

fulfi

lling

all

crite

rion

of r

egul

ator

y re

tail

exce

pt g

ranu

larit

y -

-

-

-

-

-

-

-

-

-

Cla

ims

secu

red

by r

esid

entia

l pro

pert

ies

-

-

-

-

-

-

-

-

-

-

Cla

ims

no fu

lly s

ecur

ed b

y re

side

ntia

l pro

pert

ies

-

-

-

-

-

-

-

-

-

-

Cla

ims

secu

red

by r

esid

entia

l pro

pert

ies

(Ove

rdue

) -

-

-

-

-

-

-

-

-

-

Cla

ims

secu

red

by C

omm

erci

al r

eal e

stat

e -

-

-

-

-

-

-

-

-

-

Past

due

cla

ims

(exc

ept

for

clai

m s

ecur

ed b

y re

side

ntia

l pro

pert

ies)

-

Hig

h R

isk

clai

ms

(Ven

ture

cap

ital,

priv

ate

equi

ty in

vest

men

ts,

pers

onal

loan

s an

d cr

edit

card

rec

eiva

bles

) 1

9,5

00

-

13

3

-

-

-

-

-

-

19

,63

3

Inve

stm

ents

in e

quity

and

oth

er c

apita

l ins

trum

ents

of

inst

itutio

ns n

ot li

sted

in t

he s

tock

exc

hang

e -

-

-

-

-

-

-

-

-

-

Inve

stm

ents

in e

quity

and

oth

er c

apita

l ins

trum

ents

of

inst

itutio

ns li

sted

in t

he s

tock

exc

hang

e -

-

-

-

-

-

-

-

-

-

Oth

er A

sset

s (a

s pe

r at

tach

men

t)

-

TOTA

L (A

) 9

4,4

77

-

38

9,9

58

-

-

-

-

-

-

484,4

35

Off

Bal

ance

She

et E

xpos

ures

Rev

ocab

le C

omm

itmen

ts

-

Bill

s U

nder

Col

lect

ion

-

Forw

ard

Exch

ange

Con

trac

t Li

abili

ties

-

LC C

omm

itmen

ts W

ith O

rigin

al M

atur

ity U

p to

6 m

onth

s (d

omes

tic c

ount

erpa

rty)

94

,01

6

94

,01

6

fore

ign

coun

terp

arty

(E

CA R

atin

g 0-1

)

-

fore

ign

coun

terp

arty

(E

CA R

atin

g-2)

-

fore

ign

coun

terp

arty

(E

CA R

atin

g 3-6

)

-

fore

ign

coun

terp

arty

(

ECA R

atin

g- 7

)

-

LC C

omm

itmen

ts W

ith O

rigin

al M

atur

ity O

ver

6 m

onth

s (d

omes

tic c

ount

erpa

rty)

-

D

EPOS

ITS

DE

POSI

TS

G

OVT.&

G’

TEE

OF

SEC/

G’TE

E G’

TEE

OF

G’TE

E OF

SE

C/G’

TEE

CRED

IT E

XPOS

URES

W

ITH

BANK

W

ITH

OTHE

R

GOLD

NR

B GO

VT. O

F OF

OTH

ER

DOM

ESTI

C M

DBS

OF F

OREI

GN

TOTA

L

BA

NKS/

FI

S

ECUR

ITIE

S

NEP

AL

S

OVER

EIGN

S

BAN

KS

B

ANKS

Con

td..

. EL

IGIB

LE C

RED

IT R

ISK

MIT

IGA

NTS




fore

ign

coun

terp

arty

(

ECA R

atin

g 0-1

)

-

fore

ign

coun

terp

arty

(

ECA R

atin

g 2)

-

fore

ign

coun

terp

arty

(

ECA R

atin

g 3-6

)

-

fore

ign

coun

terp

arty

(

ECA R

atin

g -7

)

-

“ B

id B

ond,

Per

form

ance

Bon

d an

d C

ount

er g

uara

ntee

(dom

estic

cou

nter

par

ty)

“

17

5,1

62

1

75

,16

2

fore

ign

coun

terp

arty

(

ECA R

atin

g 0-1

)

-

fore

ign

coun

terp

arty

(E

CA R

atin

g -2

)

-

fore

ign

coun

terp

arty

(

ECA R

atin

g 3-6

)

-

fore

ign

coun

terp

arty

(

ECA R

atin

g- 7

)

-

Und

erw

ritin

g co

mm

itmen

ts

-

Lend

ing

of B

ank’

s Se

curit

ies

or P

ostin

g of

Sec

uriti

es a

s co

llate

ral

-

Rep

urch

ase

Agr

eem

ents

, Ass

ets

sale

with

rec

ours

e

(incl

udin

g re

po/ r

ever

se r

epo)

-

Adv

ance

Pay

men

t G

uara

ntee

12

,24

3

12

,24

3

Fina

ncia

l Gua

rant

ee

-

Acc

epta

nces

and

End

orse

men

ts

7

,22

8

7,2

28

Unp

aid

port

ion

of P

artly

pai

d sh

ares

and

Sec

uriti

es

-

Irre

voca

ble

Cre

dit

com

mitm

ents

(S

hort

ter

m)

-

Irre

voca

ble

Cre

dit

com

mitm

ents

(lo

ng t

erm

)

-

Cla

ims

on fo

reig

n ba

nk in

corp

orat

ed in

SAAR

C r

egio

n

oper

atin

g w

ith a

buf

fer

of 1

% a

bove

the

ir re

spec

tive

regu

lato

ry c

apita

l req

uire

men

t

-

Oth

er C

ontin

gent

Lia

bilit

ies

-

TOTA

L (B

) 2

88

,64

9

-

-

-

0%

-

-

-

-

2

88,6

49

GR

AN

D T

OTA

L (C

=A

+B

) 3

83

,12

6

-

38

9,9

58

-

0

%

-

-

-

-

773,0

84

D

EPOS

ITS

DE

POSI

TS

G

OVT.&

G’

TEE

OF

SEC/

G’TE

E G’

TEE

OF

G’TE

E OF

SE

C/G’

TEE

CRED

IT E

XPOS

URES

W

ITH

BANK

W

ITH

OTHE

R

GOLD

NR

B GO

VT. O

F OF

OTH

ER

DOM

ESTI

C M

DBS

OF F

OREI

GN

TOTA

L

BA

NKS/

FI

S

ECUR

ITIE

S

NEP

AL

S

OVER

EIGN

S

BAN

KS

B

ANKS

Con

td..

. EL

IGIB

LE C

RED

IT R

ISK

MIT

IGA

NTS




RISK WEIGHTED EXPOSURE FOR OPERATION RISK

PARTICULARS FY 2068/69 FY 2069/70 FY 2070/71 FOR PREVIOUS YEAR 2011/12 2012/13 2013/14

Net Interest Income 590,664 988,899 1,095,134

Commission and Discount Income 70,445 94,943 104,093

Other Operating Income 69,535 124,525 141,288

Exchange Fluctuation Income 38,864 50,511 63,213

Additional/Deduction in Interest Suspense during the period 69,709 99,902 143,391

Gross income (a) 839,217 1,358,779 1,547,120 -

Alfa (b) 15% 15% 15% 15%

Fixed Percentage of Gross Income [c=(a×b)] 125,883 203,817 232,068 -

Capital Requirement for operational risk (d) (average of c) 187,256 153,697

Risk Weight (reciprocal of capital requirement of 10%) in times (e) 10 10

Equivalent Risk Weight Exposure [f=(d×e)] 1,872,560 1,536,970

PILLAR-II ADJUSTMENTS

If Gross Income for all the last three years is negative(6.4 a 8) - -

Total Credit and Investment (net of Specific Provision) - -

Capital Requirement for operational risk (5%) - -

Risk Weight (reciprocal of capital requirement of 10%) in times - -

Equivalent Risk Weight Exposure [g] - -

EQUIVALENT RISK WEIGHT EXPOSURE [H=F+G)] 1,872,560 1,536,970

As on 31st Ashad 2072 (16th July 2015) Schedule 4.30D

Amount in Thousand




RISK WEIGHTED EXPOSURE FOR MARKET RISK

ASHADH END 2072 PREVIOUS YEAR CURRENCY OPEN POSITION RATE OPEN POSITION RELEVANT OPEN RELEVANT OPEN (FCY) (LCY) POSITION POSITION

Indian Rupees 57,703.26 1.6008 92,368 92,368 14,484

US Dollar (75.47) 101.6000 (7,668) 7,668 23,520

Pound Sterling 2.61 158.2350 413 413 517

EURO 82.67 110.7400 9,155 9,155 1,628

Thai Bhat 0.28 2.9200 1 1 9

Swish Frank 17.26 106.3100 1,835 1,835 835

Australian Dollar 15.90 74.5650 1,186 1,186 1,082

Canadian Dollar 3.52 78.4400 276 276 304

Singapore Dollar 0.90 74.2100 67 67 33

Japanese Yen 426.49 0.8175 349 349 546

Hongkong Dollar 1.50 12.9000 19 19 -

Denish Croner 12.49 14.5900 182 182 233

Swedish Croner 0.12 11.7600 1 1 2

Saudi Arab Rial 54.55 26.7400 1,459 1,459 231

Quatar Rial 10.41 27.3550 285 285 34

Arab Emirates Dhiram 12.09 26.6250 322 322 73

Malaysian Ringgit 22.87 26.4350 605 605 114

Korean Won - 0.0860 - - -

Chinese Yuan 1.42 16.1700 23 23 57

Kuwait Dhiram 1.30 332.0200 430 430 -

Baharin Dinar 0.00 266.8600 1 1 -

TOTAL OPEN POSITION (A) 116,645 43,702

Fixed Percentage (b) 5% 5%

Capital Charge for Market Risk [c=(axb)] 5,833 2,186

Risk weight (reciprocal of capital requirement of 10%) in times (d) 10 10

EQUIVALENT RISK WEIGHT EXPOSURE[E=(CXD)] 58,330 21,860

As on 31st Ashad 2072 (16th July 2015) Schedule 4.30E

Amount in Thousand




PRINCIPAL FINANCIAL INDICATORS

UNIT FY 2066/67 FY 2067/68 FY 2068/69 FY 2069/70 FY 2070/71 FY 2071/72 INDICATORS (2009/10) (2010/11) (2011/12) (2012/13) (2013/14) (2014/15)

Net Profit/ Gross Income Percent 12.16 2.16 5.10 12.41 9.03 16.88

Earnings Per Share NPR 16.35 2.20 5.52 15.46 11.03 19.27

Market Value Per Share NPR 265.00 163.00 145.00 232.00 510.00 395.00

Average Price NPR 175.40 145.00 212.48 402.00 400.00

Price Earning Ratio Ratio 16.21 74.24 26.28 15.00 46.22 20.50

Dividend (including bonus) on Share Capital (%) Percent 10.00 4.00 5.26 11.58 0.00 22.63

Cash Dividend on Share Capital (%) Percent 10.00 4.00 5.26 0.58 0.00 1.13

Interest Income/ Loans and Advances (%) Percent 4.85 15.43 13.03 12.17 11.55 8.77

Staff Expenses/ Total Operating Expenses (%) Percent 38.31 36.93 40.97 39.71 42.26 43.27

Interest Expenses/ Total Deposits & Borrowings (%) Percent 6.45 9.12 7.51 5.38 4.99 3.87

Exchange Gain/ Total Income (%) Percent 2.55 1.66 1.78 2.01 2.52 2.94

Staff Bonus/ Total Staff Expenses (%) Percent 22.87 5.57 8.11 21.02 13.58 24.53

Net Profit/Total Loans & Advances (%) Percent 1.70 0.36 0.75 1.69 1.18 1.72

Net Profit/ Total Assets (%) Percent 1.21 0.28 0.52 1.19 0.83 1.26

Total Loans & Advances/ Total Deposits (%) Percent 81.57 92.86 79.01 79.08 81.84 83.92

Total Operating Expenses/ Total Assets (%) Percent 1.91 2.40 2.23 2.10 2.11 1.68

Capital Adequacy (On Risk Weighted Assets)

a. Core Capital Percent 10.47 12.55 11.01 10.96 10.63 10.11

b. Supplementary Capital Percent 0.90 0.73 0.77 0.84 0.86 1.00

c. Total Capital Fund Percent 11.37 13.28 11.78 11.80 11.49 11.11

Liquidity (%) Percent 24.25 24.32 32.40 33.51 34.03 30.70

Non-Performing Loan/ Total Loans & Advances (%) Percent 1.04 3.51 3.52 3.74 4.94 2.90

Weighted Average Interest Rate Spread Percent 4.92 3.83 3.54 4.66 4.45 4.60

Book Net Worth (Per Share) NPR 110.80 106.50 106.76 121.24 120.48 112.63

Number of Shares Nos. 12,500,000 20,150,000 20,150,000 20,150,000 22,366,500 24,436,880

Number of Staff Nos. 376 471 459 454 449 444

Number of Branches Nos. 21 40 47 49 51 53





SIGNIFICANT ACCOUNTING POLICIES Schedule 4.32

1. GENERAL INFORMATION

Sunrise Bank Limited (“The Bank”) is a

limited liability company domiciled in Nepal.

The address of its registered office is at

Gairidhara Crossing, Kathmandu, Nepal. The

bank is licensed by Nepal Rastra Bank-‘NRB’

the Central Bank of Nepal, to carry out the

commercial banking business in Nepal as “A”

class licensed financial institution. The bank

is listed in Nepal Stock Exchange Limited.

The financial statements contained in this

report have been approved for publication by

the Board of Directors and NRB.

2. APPROVAL OF FINANCIAL STATEMENT

The accompanied financial statement for

fiscal year 2071-72 (2014-15) has been

approved by the Board of Directors in its

meeting dated 14/06/2072 (01/10/2015)

and recommended for the approval from

the Shareholders through Annual General

Meeting.

3. SUMMARY OF SIGNIFICANT

ACCOUNTING POLICIES

The principal accounting policies applied

in the preparation and presentation of

these financial statements are stated

herein below. The said policies have been

consistently applied throughout the period of

presentation, unless otherwise stated.

4. PRINCIPAL ACTIVITIES

The Bank is engaged in the business of

commercial banking and other financial

services including trade finance, remittance

and other activities as permitted for the

commercial banks under the Bank and

Financial Institutions Act 2063 (“BAFIA”).

These activities are being performed

since the beginning in compliance with

the statutory requirements as well as the

directives issued by Nepal Rastra Bank.

5. STATEMENT OF COMPLIANCE

The financial statements have been prepared

in accordance with Nepal Accounting

Standards (“NAS”) issued by the Nepal

Accounting Standard Board except

otherwise stated, Generally Accepted

Accounting Principles (“GAAP”), Bank and

Financial Institutions Act 2063 (“BAFIA”)

and other requirement of NRB Directives

and in compliance with the Companies

Act, 2063.

6. BASIS OF PREPARATION

The financial statements are presented in

Nepalese Rupees (NPR), rounded off to

the nearest rupee. Financial Statements

are prepared on the historical cost

convention. The preparation of financial

statements in compliance with NAS and

GAAP which requires the use of certain

critical accounting estimates.

It also requires management to exercise

judgment and discretion in the process of

applying the bank’s accounting policies.

The Bank follows accrual system of

accounting for the preparation of financial

statements unless otherwise stated. All the

formats of the financial statements are in

accordance with the NRB Directives.

7. INTEREST INCOME RECOGNITION

Interest income on loans and advances

is recognized on cash basis as per the

Nepal Rastra Bank Directives which is

not in accordance with NAS 7 (Revenue

Recognition) which prescribes that the

revenue should be recognized on accrual

basis. However, interest income on loans

and advances accrued and realized in cash

within 15 days of the end of fiscal year has

been recognized as income as permitted

by NRB.

Interest income accrued on long-term

project loans during the construction

period as per initial approved terms of the

credit and as per the approval of Nepal

Rastra Bank, have been recognized by

capitalizing into the principal loan amount.

Interest income on Investments and

placements are accounted for on accrual

basis.

8. COMMISSION & FEE INCOME

All the commission incomes are accounted

for on cash basis. However, commission

receivable on Letter of credit and guarantees

exceeding NPR 50,000 with a maturity

exceeding one year from the date of

transactions is accounted for on accrual

basis and prorated over the tenure of

transactions.

9. DIVIDEND INCOME

Dividend income on equity shares is

recognized when the right to receive

dividend is established.

10. FOREIGN EXCHANGE INCOME

Foreign currency assets and liabilities are

translated into NPR at the mid rate between

buying and selling rates of the Bank on the

Balance Sheet date.

Income realized from the differences

between buying and selling rates of foreign

exchange and income from trading of gold is

accounted for on a daily basis and shown as

“Trading Gain”.

Gains/Losses arising due to fluctuation in

exchange rates of different foreign currencies

is accounted for on a daily basis and shown

as “Revaluation Gain/ (Loss)”. As required

by the directives of Nepal Rastra Bank,

25% of such revaluation gain during the

accounting year is transferred to “Exchange

Fluctuation Reserve” through Profit and Loss

Appropriation Account.

11. INTEREST COST

Interest expenses on deposit liabilities

and borrowings from other banks/financial

institutions are accounted for on accrual

basis.




12. LOANS & ADVANCE INCLUDING

BILLS PURCHASE

Loans & advances and bills purchased

includes overdrafts, term loans, working

capital loans, consumer loans, loans

disbursed as deprived sector lending and

other loans extended to the customers as

per the Bank’s policy. All credit exposures

are subject to regular review and are graded

according to the level of credit risk and are

classified as per NRB Directives. Loans and

advances, overdrafts and bills purchased are

shown net of provisions.

13. STAFF LOANS & ADVANCES

Loans and advances extended to staff in

accordance with the Staff Rules of the Bank

are shown under the Other Assets.

14. LOAN LOSS PROVISION

Provision for possible loan losses has

been providing to cover the risks inherent

in the Bank’s loan portfolio. Provision for

possible losses on loans, advances and

bills purchased are made at the ranging

from 1% to 100% in accordance with the

classification of such risk assets as per the

directives issued by Nepal Rastra Bank and

also the Bank’s own risk assessment.

15. LOAN WRITE OFF & RECOVERY

The Bank has the policy to write off the bad

loans in accordance with its “Loan write off

by laws” prepared as per the directive of and

under the approval of Nepal Rastra Bank.

Loan write off expenses and recoveries made

from such written off loans in subsequent

period are recognized into income/(loss) as

“Profit/(loss) from extraordinary activities”

and exhibited in Schedule 4.28 of the

financial statement.

Interest Suspense of the written off loan

is removed from the book and separately

recorded for future reference/recovery.

16. INVESTMENTS

The investments held by the bank comprise

of the following categories and are presented

in Schedule 4.12 of the financial statement.

16.1. Held for Trading:

These are the marketable investment with

the primary intention of resale over a short

period of the time. These investments are

initially measured at cost and subsequently

recognized at the market value. Gains or

losses arising from trading/revaluation are

recognized in Profit & Loss Account (Income

Statement).

16.2. Held to Maturity:

These investments are primarily intended to

hold until the maturity and are stated at cost

and carried at these values in the Balance

Sheet until the maturity. Any impairment

losses arising in such investments are

provisioned and charged to the Profit and

Loss Account (Income Statement). Premiums

paid/ discount received while acquiring HTM

Investments is recognized as the part of

initial cost and subsequently adjusted with

the interest income on effective interest basis

until the maturity.

16.3. Available for Sale

These are the investments held with

the primary intention to recover value

of investments through sale rather than

continuing to hold. These investments are

initially measured at cost and subsequently

recognized at market value. Any gains or

losses arising till the investments are held

are recognized on Investment Adjustment

Reserve. Any gains or losses are recognized

in Profit and Loss accounts only at the time

of disposal of such investments. While

assessing the market value, consideration

is given to the transaction activities in the

stock exchange and conservative approach

is adopted in order to avoid overstatement

of the equity position. Accordingly, those

investments which are not actively traded

at the stock market are carried at cost and

amount equivalent to at least 2% of such

investments are earmarked on Investment

Adjustment Reserve from the retained

earnings in line with the requirement of

NRB.

17. FIXED ASSETS

Fixed Assets are tangible items that are

held for use in the production or supply

of services, for rental to others, or for

administrative purposes and are expected to

use during more than one financial year.

Cost of an item of fixed assets is recognized

as an asset, if and only if, it is probable

that future economic benefits associated

with the item will flow to the entity and

the cost of the item can be measured

reliably. The cost of an item of fixed assets

comprises of purchase prices including

taxes, custom duties and any costs that is

directly attributable to bring the asset to the

location and condition that is necessary for

it to be capable or operating in the manner

intended by the management. Costs incurred

for dismantling / removal and for restoration

of site are recognized as a part of the new

item of the fixed assets. Cost of an item of

an asset includes cost of an asset under

construction and work-in-progress.

Any subsequent cost incurred for the fixed

assets is recognized as an asset if it meets

the recognition criteria. The cost that

does not qualify as an asset is charged

off in the Income Statement as repair and

maintenance.

The carrying amount of an asset is

derecognized at the time of disposal or when

no future economic benefits are expected

to flow from its use or disposal. The gain or

loss rising from de-recognization of an item

of fixed assets is included in profit or loss

when the item is derecognized.

The carrying amount of the fixed assets is the

amount at which an asset is recognized after

deducting any accumulated depreciation and

accumulated impairment losses.

Non-consumable items having life more than

one year and/or costing less than NRs. 5,000

are expensed off during the year of purchase.

The Bank consistently adopts cost model for

entire class of its fixed assets.

18. DEPRECIATION ON FIXED ASSETS

Depreciation is the systematic allocation of

depreciable amount of an asset over its useful

life.

Each part of an item of fixed assets of the

Bank which is identifiable separately is




depreciated separately. The depreciation

charge for each period is recognized in profit

or loss unless it is included in the carrying

amount of another asset.

Depreciation of an asset begins when it

is available for use, i.e. when it is in the

location and condition necessary for it to

be capable of operating in the manner

intended by the management. For simplicity,

depreciation is charged from the next month

it is made available for use. Depreciation of

an asset ceases when it is derecognized at

the time of its disposal.

Depreciation on following assets is charged

to Profit and Loss Account on Diminishing

Balance method over the estimated useful

life of depreciable assets.

Earlier the depreciation was charged

on Straight Line Method (SLM), which

has applied erroneously, as against the

approved policy to charge depreciation on

Written down Value (WDV) method as per

its Financial Rules, 2064. The bank has

reversed to its said policy effective from

beginning of this financial year. The reversal

reduced the depreciation expenses of the

bank by NPR 27,891,320.

Leasehold assets (improvements) are

amortized over the period of lease using

Straight Line Method.

Cost of software licenses and are amortized

over a period of useful life of the software,

estimated as 5 years from the date of

acquisition.

19. NON BANKING ASSETS

Non-Banking assets are the assets obtained

as a security for loans and advances that

are subsequently taken over by the Bank in

ASSETS RATE

Furniture & Fixture 15%

Computer & Acessories 20%

Office Equipments 15%

Vehicles 15%

the course of loan recovery. Non-Banking

Assets are valued at lower of total receivable

from loan amount (principal and interest)

or fair market value of the assets acquired.

Provisions for NBA are made in accordance

with the NRB Directives.

20. PROVIDENT FUND & GRATUITY

The bank has retirement benefit namely

provident fund and gratuity. Provision for

gratuity has been determined as per the

staff service rules of the bank talking into

consideration the proportion of service

period completed by each eligible employee.

Similarly, periodic contribution to the

provided fund has been expensed off.

Provided fund amount is being deposited

with an approved retirement fund entity

on monthly basis. Accumulated gratuity is

accounted and exhibited under Schedule 4.7

(Other Liabilities).

21. STAFF LEAVE ENCASHMENT

Bank has the policy to book leave

encashment expenses on accrual basis.

Staff Leave encashment liability covers

accumulated leave of all the eligible staffs.

22. STAFF BONUS

As required under Bonus Act, 2030, Staff

Bonus has been provided at 10% of net

profit before tax (but after bonus).

23. STATIONARY STOCK

Stationery stocks are inventories in the

form of materials or supplies held by the

bank to be consumed while rendering the

services. The bank does not hold any item

of the inventory that is in the state which is

not readily usable (i.e. raw material or semi

finished) for rendering the services or that for

the selling purposes.

The stationeries are written down on an

item by item basis, when the inventories are

damaged or have become wholly or partially

obsolete that affects the effective use while

rendering services.

Stationeries are recorded at actual cost basis

and charged to revenue at the time of its

consumption.

24. INCOME TAXES

Provision for taxation has been made on

the basis of the Income Tax Act 2058 and

amendments thereon.

25. DEFERRED TAXES

Deferred taxes are accounted using the

asset and liability method as per Accounting

Standard-9 (NAS-9), “Accounting for Income

Taxes”. Deferred tax assets and liabilities are

recognized for the future tax consequences

attributable to temporary differences

between the financial statement carrying

amounts of existing assets and liabilities,

and their respective tax bases. Deferred tax

assets and liabilities are measured using tax

rates expected to apply to taxable income

in the years in which those temporary

differences are expected to be recovered or

settled based on the laws that have been

enacted or subsequently enacted by the

reporting date.

26. PROVISIONS, CONTINGENT

LIABLITIES & CONTINGENT ASSETS

The bank creates a provision when there

is a present obligation arising as a result

of past events that probably requires an

outflow of resources and a reliable estimate

can be made of the amount of obligation. A

disclosure for a contingent liability is made

when there is a possible obligation or a

present obligation that may, but probably

will not, require an outflow of resources.

When there is a possible obligation or

a present obligation in respect of which

the likelihood of outflow of resources is

remote, no provision or disclosure is made.

Contingent assets are not recognized in the

financial statements. However, contingent

assets are assessed continually and if it is

virtually certain that an economic benefit

will arise, the asset and related income are

recognized in the period in which the change

occurs.

27. PREVIOUS YEAR FIGURES

Previous period’s figures are re-grouped or

re-arranged wherever necessary to facilitate

comparison with current year’s figures.




NOTES TO ACCOUNT Schedule 4.33

1. EQUITY CAPITAL POSITION

The capital of the bank as of the close of FY

2071-72 (2014-15) stood at NPR 2,443

million. This sufficiates the minimum paid

up capital requirement of NPR 2,000 million

as prescribed by Nepal Rastra Bank.

In this regards, subsequent to the close

of Financial Year, Nepal Rastra Bank has

introduced a policy requiring the “A” class

commercial banks to enhance their paid up

capital base to a minimum of NPR 8,000

million by the end of FY 2073-74 (2016-

17) and also has directed the banks to

submit capital enhancement plan by 17th

September 2015. The bank is planning in

this regard and will be complying with the

statutory directives.

2. HISTORY OF PAID UP CAPITAL

Since the inception of the Bank, paid up

capital increased to NPR 2,972 million

(29,726,557 Shares of Rs 100 each) from

NPR 700 million (7,000,000 promoters

shares of NPR 100 each). The history of the

issuance of capital is as below:

3. STATUTORY GENERAL RESERVE

A sum of NPR 94,171,412 (PY

49,354,531) being 20% of the Profit after

Tax has been appropriated to Statutory

General Reserve as required under Section

44 of the Banks and Financial Institution

Act, 2063 (“BAFIA”). After the transfer the

Statutory General Reserve of the bank stood

as NPR 294,760,297

4. CAPITAL RESERVE

There is a balance of NPR 32,407,723

in this reserve arising out of unsubscribed

shares issued at premium on the earlier

year. There has not been any change on the

reserve during the year.

5. DEFERRED TAX RESERVE

As required under the new directive issued

by Nepal Rastra Bank, the balance amount

in Deferred Tax reserve which was earlier

established from Deferred Tax profit has

been transferred to “Other Reserve”. The

transfer has been made after the adjustment

of the current year deferred tax loss.

FINANCIAL YEAR PAID UP CAPITAL (NPR) CHANGE (NPR) REASON

2064/65 (2007-08) 700,000,000 Initial Promoter Investment. 2065/66 (2008-09) 1,337,500,000 637,500,000 Increased Promoter Holding by NPR 175 million & Initial Public Offering of NPR 375 million. NPR 87.50 million remained as Calls in Advance for Right Issue.2066/67 (2009-10) 1,510,350,000 172,850,000 Right Issue of 30%. NPR 260.35 million remained in call in advance.2067/68 (2010-11) 2,015,000,000 504,650,000 Additional Right Issue of 24%. All the Calls in Advance settled.2068/69 (2011-12) 2,015,000,000 - No Change2069/70 (2012-13) 2,236,650,000 221,650,000 11% Bonus Share Issue.2070/71 (2013-14) 2,236,650,000 - No Change2071/72 (2014-15) 2,972,655,725 736,005,725 10% Right Share Issued and 166,270 Shares remained Unsubscribed. 21.50% Bonus Share proposed for the FY 2071/72.

6. INVESTMENT ADJUSTMENT RESERVE

In accordance to NRB Directives and Capital

Adequacy Framework, Bank has separated

Investment Adjustment Reserve equal to

2% of its investment available for sale

except the exempted investments. Along

with it bank has to create the 100% reserve

against the investments in stock for above

one year but not listed in stock exchange.

Bank hasn’t invested any amount in any of

such investment during the year. However

requisite amount in Investment Adjustment

Reserve has been provided against the

investment in shares of Nepal Electronic

Payment Systems (NEPS). Position of

reserve has been as follows:

created the reserve for the following

investment:

Bank hasn’t created Investment Adjustment

reserve on the following exempted

investments, although being categorized as

“Available for Sale”.

- Nepal Clearing House Limited (NCHL)

- NPR 2.50 Million

- National Banking Institute (NBI)

- NPR 1.20 Million

PARTICULARS AMOUNT (NPR)

Investment Adjustment

Reserve as on beginning of year 697,168

Addition during

the year (NEPS) 14,700,000

Investment Adjustment

Reserve as on end of the year 15,397,168

PARTICULARS INVESTMNET RESERVE AMOUT (NPR)

Gurans Life

Insurance Company

(GLIC) 19,858,400 397,168

Nepal Electronic

Payment Systems

(NEPS) 15,000,000 15,000,000

TOTAL 34,858,400 15,397,168




7. EXCHANGE FLUCTUATION FUND

A sum of NPR 2,582,643 (Previous Year

- 6,919,026) being 25% of the exchange

fluctuation gain earned during the year other

than Indian currency has been appropriated

to Exchange Fluctuation Fund as required

under Section 45 of the Banks and Financial

Institution Act, 2063 (“BAFIA”). After the

transfer the fund of the bank stood as NPR

16,574,239.

8. OTHER FREE RESERVES

Other Free Reserves includes the fund

transferred from Deferred Tax Reserve after

adjustment of current year deferred tax loss

as explained in Section-5 above.

9. ACCUMULATED PROFIT & LOSS

ACCOUNT

Net Profit retained after transfer made to

all other reserves as per the regulatory

requirements and amount set aside for

dividend proposed/ bonus shares by the

Board of directors is stated as accumulated

Profit & Loss Account. Such profit is free for

distribution. The reserve stood as below in

the balance sheet date:

10. CHANGE IN DEPOSITS

The detail of change in deposits has been as

follows:

11. INCOME TAX LIABILITIES

Provision for the taxation has been made

on the basis of Income Tax Act, 2058 and

amendments thereto. Any difference in the

actual tax liability determined during the

course of Income Tax Assessment will be

adjusted in the year of assessment.

12. GRATUITY FUND

Bank has been provisioning the gratuity

liability at the end of every fiscal year for the

eligible staffs as per the Staff Service Rules.

Changes in the fund during the year have

been as follows:

13. LEAVE ENCASHMENT FUND

Bank has separated NPR 19,634,033 for

the leave encashment of the eligible staffs.

There has been addition of NPR 3,426,266

during the year.

14. UNCLAIMED DIVIDEND

As on the balance sheet date NPR

24,930,063 remained as the unclaimed


Accumulated Profil & Loss

Account at beginning of year 195,614,947

Profit Earned During Ther Year 470,857,056

Transferred from Deferred

Tax Reserve 5,074,919

Total Profit Available for

Appropriation 671,546,922

Less: Appropriations

Transferred to General Reserve 94,171,412

Transferred to Exchange

Fluctuation Fund 2,582,643

Transferred to Investment

Adjustment Reserve 14,700,000

Proposed Bonus Shares 528,967,725

Proposed Cash Dividend 27,840,407

Total Appropriation 668,262,187

Accumulated Profit & Loss 3,284,735


Gratuity Fund as on

beginning of year 16,701,631

Addition during the year 3,621,550

Less: Paid to the staffs/Reversed 1,816,082

Gratuity Fund as on end of year 18,507,099


Unclaimed Dividend as on

1st Shrawan 2071 28,915,175

Less: Paid to the shareholders

during the year 3,985,112

Unclaimed Dividend as on

Ashad End 2072 24,930,063

TYPE OF DEPOSIT CURRENT YEAR PREVIOUS YEAR CHANGE (NPR) (NPR) AMOUNT PERCENTAGE

Local Currency Deposits 32,641,339,236 25,633,853,876 7,007,485,360 27%

- Non-Interest Bearing 1,521,480,680 1,047,762,694 473,717,986 45%

- Interest Bearing 31,119,858,556 24,586,091,182 6,533,767,374 27%

Foreign Currency Deposits 845,329,823 982,813,403 (137,483,580) -14%

- Non-Interest Bearing 64,862,827 46,935,098 17,927,729 38%

- Interest Bearing 780,466,996 935,878,305 (155,411,309) -17%

TOTAL DEPOSITS 33,486,669,059 26,616,667,279 6,870,001,780 26%

dividend for the FY 2066/67, 2067/68 and

2068/69. The detail of dividend yet to be

claimed by the shareholders is as follows:

15. OTHER LIABILITIES

Those liabilities which are not shown

separately under the individual headings of

Schedule 4.7 have been classified under

this head. NPR 219,476,411 stands under

this head as on 31st Ashad 2072. The bank

also holds the TDS on behalf of other parties

which was subsequently paid in the month

of Shrawan 2072. It also includes the

amount received from the NEPS members

for VISA amounting NPR 60,990,271.

16. CONTINGENT INCOME TAX

Large Tax Payers’ Office (LTPO) conducts

reassessment of each year’s tax filing done

by the Bank within four years after end of

each year. Following reassessment, LTPO

can issue reassessment order for revision

in tax liability of the bank. However, the





Balance as per the Ledger 1,890,735,127

Ledger Debit 1,603,110

Ledger Credit 10,508,660

Statement Debit 5,076,151

Statement Credit 212,985

Balance as Per Statement 1,894,777,511


Balance as per the Ledger 95,260,947


Ledger Credit 104,587

Statement Debit 525,494

Statement Credit 10,113,584

Balance as Per Statement 103,789,967

AGEING LEDGER LEDGER STATEMENT STATEMENT DEBIT CREDIT DEBIT CREDIT TOTAL

0--3 Month 1,141,608 87,588 507,421 10,081,234 (8,519,792)

3--6 Month 1,639 7,341 8,356 (2,654)

6--9 Month 1,311 12,631 (13,942)

9--12 Month 4,192 10,732 11,363 (4,823)

Above 12 Month 22,048 9,857 12,191

bank may choose to contest against such

decisions. Such process would follow, in

order, applying for administrative review

to Director General at Inland Revenue

Department (IRD) level; case filing at

Revenue Tribunal; and case filing at

Supreme Court.

Till the balance sheet date, the bank’s

corporate tax liability up to income year

2064-65 has been cleared by the tax

authority. Further, reassessment from LTPO

has been completed for up to income year

2067-68. For the reassessment of last four

years however, the bank has contested

against the upward revision in tax liability

as issued by LTPO in their reassessment

order. Total contested amount of NPR 34.42

million that include additional tax, interest

surcharges and penalty, in respect of these

three income years has been recognized

as Continent Liability and presented in

Schedule 4.17 of Financial Statements.

17. BALANCE WITH NEPAL RASTRA

BANK

Reconciliation with Nepal Rastra Bank

balance:

18. BALANCE WITH LOCAL BANKS

Reconciliation with Local Banks:

The ageing details of the unreconciled

amount:


amount:

Ageing 0--3 Month





Total (4,042,384)


Balance as per the Ledger 204,460,290




Statement Credit 61,544,603

Balance as Per Statement 270,013,573


amount:

19. BALANCE WITH FOREIGN BANKS

Reconciliation with Foreign Banks:

Ageing 0--3 Month





Total (4,042,384)




20. INVESTMENTS

a.Held for Trading

As of balance sheet date the Bank doesn’t hold investment that are primary intend for trading purpose.

b. Held Till Maturity

The detail of the investment held for maturity has been as follows:

c. Available for Sale

The investments available for sale has been as follows:

21. LOANS & ADVANCES

The total Loans and Advances stood at NPR 27,392 million as on balance sheet date. Out of total loans and advances, 2.90% of the loan has been

classified as non-performing loans. The required provisioning has been done as per the classification of NRB directives. The segregation of the same

has been as follows:

INVESTMENT COST PRICE IMPAIREMENT NET INVESTMENT (NPR) CURRENT YEAR (NPR) PREVIOUS YEAR (NPR)

Treasury Bills 1,405,272,550 - 1,405,272,550 2,155,195,894

-91 Days 299,782,700 - 299,782,700 1,456,111,844

-182 Days 876,361,260 - 876,361,260 699,084,050

-364 Days 229,128,590 - 229,128,590 -

NRB Deposit Collection 2,700,000,000 2,700,000,000

Development Bond 1,285,600,000 - 1,285,600,000 155,600,000

Reverse Repo 180,725,000 180,725,000

Placements 1,649,638,135 - 1,649,638,135 515,911,887

TOTAL 7,221,235,685 - 7,221,235,685 2,826,707,781

INVESTMENT (AVAILABLE FOR SALE) NO OF SHARES COST PRICE MARKET PRICE PREVIOUS ADJUSTMENT FUND (NPR) THIS YEAR YEAR UPTO THIS YEAR UPTO PREVIOUS YEAR (NPR) (NPR) (NPR) (NPR)

Listed Securities

-Gurans Life Insurance Ltd 208,334 19,858,400 121,250,388 135,384,600 397,168 397,168

Unlisted Securities

- Nepal Clearing House Ltd 25,000 2,500,000 Not Listed Exempt Exempt

- National Banking Institute 12,000 1,200,000 Exempt Exempt

- Nepal Electronic Payment System 150,000 15,000,000 15,000,000 300,000

TOTAL 38,558,400 15,397,168 697,168

LOAN TYPE NET VALUE (NPR) CHANGE NPA % CURRENT YEAR PREVIOUS YER VALUE PERCENTAGE CURRENT PREVIOUS

Real Estate Loan 1,961,247,437 2,011,201,641 (49,954,204) -2.48% 5.79% 7.52%

Personal Home Loan of Rs. 10 mil.

or Less 2,439,557,432 1,581,373,105 858,184,327 54.27% 0.16% 0.00%

Margin Type Loan 477,844,962 68,789,782 409,055,180 594.65% 0.00% 32.36%

Term Loan 2,498,321,458 2,137,601,487 360,719,971 16.87% 7.38% 6.97%

Overdraft Loan/TR Loan/WC Loan 14,752,783,999 10,973,690,693 3,779,093,306 34.44% 2.85% 2.81%

Others 4,206,694,385 3,034,054,719 1,172,639,666 38.65% 0.77% 0.91%

Bills Purchase 43,634,018 131,614,505 (87,980,487) -66.85% 0.00% 0.00%

TOTAL 26,380,083,691 19,938,325,932 6,441,757,759 32.31% 2.90% 4.94%




22. LEASE HOLD ASSETS

The details of movement of the leasehold

assets of the bank are as under.

23. NON BANKING ASSETS (NBA)

The detail flow of NBA during the year has

been states as below:

25. INTEREST RECEIVABLE ON LOANS

As at balance sheet date, the Bank’s accrued

interest receivable on loan is valued at NPR

398,661,728 as presented in the financial

statements under Schedule 4.16 (Other

Assets). These comprise of interest on loans,

advances and bills purchased that have

accrued but not yet realized in cash as at

Bank has earned the profit of NPR 566,728

from the disposal of NBA and has been

presented in Schedule 4.26 of Financial

Statements.

24. STATIONARY STOCK

The details of inventories of the bank

presented in Schedule 4.16 (Other Assets)

have been as follows:


Opening Balance 103,937,395

Additions During the year 10,171,041

Amortized during the year 17,685,952

Net Leasehold Assets 96,422,484


Opening Balance 35,146,878

Additions during the Year 104,765,597

Dispose during the Year 35,146,878

Closing NBA Balnce 104,765,597

PARTICULARS CURRENT PREVIOUS YEAR (NPR) YEAR (NPR)

Printing & Stationary

Stock 9,866,977 5,873,768

ATM Card Stock 161,784 321,435

Balbachat Gift Stocks 9,984 9,984

TC Stocks 7,524,935

Stationary Stock 10,038,745 13,730,122


Staff Home Loan

Facilities 106,903,812 88,981,110

Staff Vehicle Loan 16,388,008 10,131,767

Staff Contingency

Loan 34,414,381 34,435,688

Staff Advance 9,510,506 9,055,572

Total Staff Loans

& Advances 167,216,707 142,604,137


Insurance Premium

Pre Paid 2,892,797 3,263,445

Rent paid on Advance 3,817,251 4,370,950

Fees paid on Advance 830,827 563,150

Others Prepaid (AMC

of ATM, NEPS,

Software etc) 7,004,365 8,037,326

Total Prepayments 14,545,240 16,234,871


Core Banking Software 7,395,774 12,409,558

Other Software 6,452,970 12,544,638

Premium on

Development Bond - 3,233,213

TOTAL 13,848,744 28,187,409

balance sheet date. The portion of interest

that has not yet fallen due stood at NPR

48,159,052 while those that are under

overdue status stood at NPR 350,502,676.

The bank has recognized interest suspense

equivalent to the entire accrued interest that

has not been realized in cash excluding the

interest realized till 31st July 2015 which

is NPR 6,970,701. This treatment is in

compliance with the regulatory provisions.

26. INCOME RECEIVABLE ON

INVESTMENTS

The detail of income receivable on

investment as presented in financial

statements under Schedule 4.16 has been

as follows:

27. STAFF LOANS & ADVANCES

Staffs are eligible for the different loans and

advance facilities as per the Staff Service

Rule. The facilities include home loan,

vehicle loan, contingency loan, regular

advances and petty cash advances. Petty

cash advances are given to carry out the

daily operational activities of the Bank.

Such advances are settled within the time

limit framed by the financial rules of the

Bank. The detail of staff loans presented in

financial statements under Schedule 4.16

“Other Assets” has been as follows:

28. PREPAYMENTS

The details of prepayments which have been

presented in Schedule 4.16 “Other Assets”

has been as follows:

29. EXPENSES TO BE WRITTEN OFF

It includes the un-amortization of software

and premium paid on investment made in

development bond. The detail of the same

presented in Schedule 4.16 has been as

follows:

30. BRANCH RECONCILIATION

NPR 141,844 remained as the unreconciled

balance as on 31st Ashad 2072 which is

pending since above 1 Year.

31. DEFERRED TAX ASSETS

With reference to Nepal Accounting

Standard-9 “Accounting for Income Taxes”,

PARTICULARS CURRENT YEAR (NPR) PREVIOUS YEAR (NPR) GROWTH

On Treasury Bills & Deposit Collection 2,376,941 468,906 407%

On Development Bonds 5,652,486 2,947,280 92%

On Reverse Repo 1 36 -97%

On NSB Bonds 720,000 15,200 4637%

On Placements 464,241 464,238 0%

TOTAL ACCRUED INTEREST 9,213,669 3,895,660 137%


A N O V E R V I E W G O V E R N E N C E F I N A N C I A L S T A T E M E N TP R O D U C T S & S E R V I C E S S H A R E H O L D E R I N F O R M AT I O N




amount of NPR 10,296,879 generated as Deferred Tax Assets as on Balance Sheet date. The

vehicles purchased in Own Your Vehicle Scheme haven’t been considered as the taxable assets

and the depreciation of the said assets is considered as permanent difference. So the depreciation

of the said assets hasn’t affected the Deferred Tax Calculation. The detail of same is:

32. ADVANCE INCOME TAX

As per the requirement of Section 94 Income Tax Act, 2058, bank has paid its tax liability in

installments as advance. The advance tax has been net off with the actual liability of current year.

The details are:

33. INTEREST INCOME ON LOAN & ADVANCES

The interest accrued on loans and advances as at Balance Sheet date which has been collected

within 15 days of Balance Sheet date (i.e. 31st July, 2015) amounting NPR 6,970,701 has been

considered as income in the same fiscal year. Interest receivable as on Balance Sheet date which

remained uncollected even within 15 days of grace period allowed by NRB has been transferred to

interest suspense account as per NRB Directives. Interest capitalization on long term loans during

the year amounts to NPR 16,486,907 which is as per the NRB directives has been recognized as

interest income complying with NRB directives.

34. INTEREST SPREAD

The difference between the Interest Income and Interest cost is considered as net interest income.

This year, the Bank has recorded net interest income (NII) of NPR 1,106,300,096 which is 1%

increase with respect to previous year. During the year, the Bank has been able to reduce the

deposit cost significantly. The decrease led the Bank to maintain NII @ 4.60%, although interest

yield on loans and advances decreased significantly. The details weighted average interest rate

spread is stated below:

* DTL refers to Deferred Tax Liabilities & DTA refers to Deferred Tax Assets

PARTICULARS TAX BASE LEDGER BASE DIFFERENCE (NPR) (NPR) (NPR) DTA/DTL

Provision for Gratuity - 18,507,099 18,507,099 DTA

Provision for Leave Encashment - 19,634,034 19,634,034 DTA

Fixed Assets(except Leasehold) 169,295,064 173,113,268 (3,818,204) DTL

Total Variance 34,322,929

Closing Deferred Tax Assets @ 30% 10,296,879


Balance of Advance Tax Carried forward from previous year 78,193,815

Add: TDS Deducted in the commission income of the Bank 209,380

Add: Payments for Previous year 1,899,222

Add: Installment paid during the year 195,000,000

TOTAL AVAILABLE ADVANCE TAX 275,302,417

Less: Adjustments during the year

- Tax Liablity of Current Year 189,045,449

- Tax Liablity of Previous Year 1,899,222

TOTAL ADJUSTMENTS 190,944,671

NET VALUE OF ADVANCE TAX ASSETS 84,357,746

PARTICULARS CURRENT PREVIOUS YEAR % YEAR %

Average Yield on Loans

& Advances &

Investments

(Accrual Basis) 9.14% 10.80%

Average Cost of Deposits 4.54% 5.32%

Net Interest Spread 4.60% 5.48%

35. INCOME FROM NON DELEVERABLE

FORWARD (NDF)

The bank has recognized premium on NDF

transaction as foreign exchange income.

During the current fiscal year bank has

net earning against the NDF proprietary

transactions amounting NPR 44.70 million.

The exposure is within the threshold ceiling

prescribed by Nepal Rastra Bank.

36. DIVIDEND

Bank has proposed Bonus Shares of

21.50% (NPR 528,967,725) and 1.132%

of Cash Dividend (NPR 27,840,407) out

of the retained earnings as of the close of

FY 2071/72. The 166270 shares sold on

further public issue and already allotted after

the balance sheet date, since eligible for

bonus shares, has also been considered for

distribution of the Bonus Shares.

37. TRANSACTION WITH RELATED

PARTIES

Bank has invested NPR 19.88 million

in shares of Gurans Life Insurance Ltd

(208,334 shares of NPR 100 each which

includes 9750 bonus share received in FY

2069/70). Bank hasn’t earned income from

such investments and hasn’t invested any

additional investment during the year. The

bank hasn’t paid any type of payments to

the parties.

38. STATEMENT OF LIQUIDITY RISK

ANALYSIS

The classification of the assets and liability

for the purpose of Liquidity stands as:




PARTICULARS 1-90 DAYS 91-180 DAYS 181-270 DAYS 271-365 DAYS OVER 1 YEAR TOTAL AMOUNT

Assets

1. Cash Balance 867,651 867,651

2. Balance with Banks & FIs 1,985,996 1,985,996

3. Investment in Foreign Banks 204,460 204,460

4. Call Money -

5. Government Securities 1,328,880 2,746,723 29,669 20,600 1,265,000 5,390,872

6. Nepal Rastra Bank Bonds -

7. Inter Bank & FI Lending 1,548,038 101,600 1,649,638

8. Loans & Advances 8,263,682 5,352,513 2,689,941 2,290,727 8,795,190 27,392,053

9. Interest Receivable 407,875 407,875

10. Reverse Repo 180,725 180,725

11. Receivables from other Institutions

under Commitment 641,694 1,516,943 346,266 295,213 4,177,239 6,977,355

12. Payment to be made for facilities

under s.no 20,21 & 22 - -

13. Others 1,065,017 1,065,017

Total Assets (A) 15,429,001 9,717,779 3,065,876 2,606,540 15,302,446 46,121,642

Liabilities

14. Current Deposits 836,407 - - - 749,936 1,586,343

15. Saving Deposits 4,857,995 - - - 10,631,395 15,489,390

16. Fixed Deposits 2,657,297 3,703,073 4,450,823 5,298,681 301,061 16,410,935

17. Debentures -

18. Borrowings: - - - - - -

(a) Call/Short Notice - -

(b) Inter-bank/Financial Institutions - -

(c) Refinance - -

(d) Others - -

19. Other Liabilities and Provisions 1,487,155 5,856 58,800 653,069 104,766 2,309,646

(a) Sundry Creditors 13,742 13,742

(b) Bills Payable 9,221 9,221

(c) Interest Payable 131,032 131,032

(d) Provisions 294,244 5,856 58,800 653,069 104,766 1,116,735

(e) Others 1,038,916 1,038,916

20. Payable to other institutions under Commitment -

21. Unutilized Approved Facilities 285,826 173,618 330,663 295,213 1,945 1,087,265

22. Letter of Credit/Guarantee (Net of Margin) 1,344,927 2,197,076 731,886 634,471 981,730 5,890,090

23. Repo -

24. Payment to be made for facilities under S.No 11 -

25. Others 3,347,973 3,347,973

Total Liabilities (B) 11,469,607 6,079,623 5,572,172 6,881,434 16,118,806 46,121,642

Net Financial Assets (A-B) 3,959,394 3,638,156 (2,506,296) (4,274,894) (816,360) -

Cumulative Net Financial Assets 3,959,394 7,597,550 5,091,254 816,360 - -




BASEL DISCLOSURES

39. CAPITAL STRUCTURE & CAPITAL ADEQUACY OF THE BANK

i. Core Capital

The core capital of the bank with its detailed breakdown is detailed below:

ii. Supplementary Capital

The supplementary capital of the bank with its detailed breakdown is detailed below:

iii. Details of Subordinated Term Debts

Bank doesn’t have any subordinated term debts.

iv. Deductions from Capital

- Deferred Tax Assets of NPR 10.30 Million.

- Investment made in Gurans Life Insurance Company Limited of NPR 19.86 million.

v. Total Qualifying Capital

The total capital of the bank stands as:

PARTICULARS AMOUNT (IN NPR 000)

a. Paid up capital 2,443,688

b. Share Premium 32,408

c. Proposed Bonus Shares 528,968

d. Statutory General Reserve 294,760

e. Retained Earnings 3,285

f. Un-audited Current Year Cumulative Profit -

g. Other Free Reserves 12,893

h. Less: Deferred Tax Assets (10,297)

i. Less: Investment in Equity of Institutions with Financial Interests (19,858)

Core (Tier-1) Capital 3,285,847


General Loan Loss Provision 294,244

Exchange Equalization Reserve 16,574

Investment Adjustment Reserve 15,397

Suplementary (Tier-2) Capital 326,215


Core Capital 3,287,789

Suplementary Capital 326,215

Total Capital 3,614,004




vi. Capital Adequacy of the Bank

The capital adequacy of the bank has been detailed below:

vii. Summary of the bank’s internal approach to assess the adequacy of its capital to support

current and future activities, if applicable:

Bank’s current paid up capital amounts to NPR 2.443 Billion, including 49% shares of general

public. The Bank complies with the licensing condition of NRB which has also helped the Bank

to have a steady and strong capital position. The overall strategy of the bank has been formulated

with the special consideration to the capital adequacy requirement according to BASEL- II.

viii. Summary of the terms, conditions and main features of all capital instruments, especially

in case of subordinated term debts including hybrid capital instruments.

Bank does not have any other capital instruments except fully paid equity shares as qualifying

capital.

40. RISK EXPOSURES

a. Risk Weighted Exposures

All material risks faced by the bank have been addressed in the capital assessment process.

However, bank has developed a process to estimate risks with reasonable certainties. All the

three risks that have direct impact on the capital adequacy level have been managed in a

structured manner with clear roles and responsibilities. In order to makes a comprehensive

assessment of risks, the process has, at minimum, addressed the forms of risks covered below:

All risks, including credit, operational and market risks are identified, escalated, monitored

and mitigated to the satisfaction of the risk type owner. The risk type owner is responsible

for ensuring that all the risks are adequately identified, escalated, monitored and mitigated.

The Bank has an adequate system in place for monitoring and reporting risk exposures and

assessing how the changing risk profile affects the need for capital. The senior management and

board of directors on a regular basis receive the report regarding the risk profile of the bank and

its capital needs. All the material risks are identified, measured, monitored and reported by the

respective risk type owner.

b. Credit Risk under 11 Categories

The Credit Risks under the 11 categories as per the Capital Adequacy Framework, 2007

(updated July 2008) and Basel – II has been detailed below:

PARTICULARS PERCENTAGE

a. Core Capital Adequacy Ratio 10.11%

b. Supplementary Capital Adequacy Ratio 1.00%

Capital Adequacy Ratio 11.11%

PARTICULARS RISK (IN NPR 000)

a. Risk Weighted Exposure for Credit Risk 29,173,117

b. Risk Weighted Exposure for Operational Risk 1,872,560

c. Risk Weighted Exposure for Market Risk 58,330

RWA Before Pillar 2 adjustment 31,104,007




RISK CLASSIFICATION NET BOOK VALUE RISK (IN NPR 000) (IN NPR 000)

a. Claims on Govt. and Central Bank 8,431,763 -

b. Claims on other Financial Entities - -

c. Claims on Banks 1,949,841 537,751

d. Claims on Corporate and Securities Firm 15,433,833 15,433,833

e. Claims on Regulatory Retail Portfolio 5,054,932 3,794,398

f. Claims secured by Residential Properties 2,445,677 1,471,577

g. Claims secured by Commercial Real State 1,983,844 1,983,844

h. Past due Claims 111,512 167,268

i. High Risk Claims 1,025,406 1,538,109

j. Other Assets 698,364 664,595

k. Off balance sheet items 8,314,340 3,581,742

TOTAL 45,449,512 29,173,117

PARTICULARS GROSS VALUE NET VALUE (IN NPR 000) (IN NPR 000)

Restructured Loans - -

Sub-Standard Loans 23,426 17,569

Doubtful Loans 117,601 58,800

Loss Loans 653,069 -

TOTAL NPA 794,095 76,370

PARTICULARS PERCENTAGE

Gross NPA 2.90%

Net NPA 0.29%

c. Total Risk Weighted Exposure Calculation Table

The detailed calculation of RWA is listed below:

41. DETAIL OF NON PERFORMING LOANS

During the year the non performing loans decreased by 2.04%. The detail of the loans has been

classified below:

42. RATIO OF NON PERFORMING LOANS

PARTICULARS RISK (IN NPR 000)

a. Risk Weighted Exposure for Credit Risk 29,173,117

b. Risk Weighted Exposure for Operational Risk 1,872,560

c. Risk Weighted Exposure for Market Risk 58,330

d. Adjustments under Pillar II

e. ALM policies & practices are not satisfactory, add 1% of net interest income to RWE 10,951

f. Add :% of the total deposits due to insufficient Liquid Assets (6.4 a 6) -

g. 2% additional risk weight for Operational Risk 464,136

h. 1% additional risk weight for Market Risk -

i. 3% adjustment on Total RWE 933,120

TOTAL RISK WEIGHTED EXPOSURE 32,512,214




BORROWER TYPE PRINCIPLE WRITE OFF INTEREST WRITE OFF (IN NPR 000) (IN NPR 000)

Panchakumari Kastya Udyog Demand Loan 5,682 19,338

Bindu Ratna Tuladhar Overdrafts 33,397 24,587

Sahadav Kachapati Overdrafts 21,321 30,036

Rina International Demand Loan 22,156 16,144

Manakamana Crusher Udyog Overdraft/FTL 9,912 33,460

Total Written Offs 92,468 123,565

43. MOVEMENT OF NON-PERFORMING ASSETS (GROSS)

During the year Non-Performing Loans (NPA) decreased by 23.41%.

45. MOVEMENT OF LOAN LOSS PROVISION AND INTEREST SUSPENSE

As per NRB Directives, all interest accruals on loans and advances, irrespective of loan category,

are transferred to interest suspense account until the interest accrued and due is realized in

cash. Details of Interest Suspense Movement are as follows:

46. DETAILS OF ADDITIONAL LOAN LOSS PROVISIONS:

Bank has not made any additional Loan Loss Provision during the year.

47. SEGREGATION OF INVESTMENT PORTFOLIO INTO HELD FOR TRADING, HELD TO

MATURITY AND AVAILABLE FOR SALE CATEGORY:

44. WRITE OFF OF LOANS & INTEREST EXPENSES

During the year bank had written off the following five loans:

PARTICULARS NPA (NPR 000)

Current Year 794,095

Previous Year 1,036,779

Change (242,684)

Change% -23.41%

PARTICULARS AMOUNT (NPR 000)

Movement of Loan Loss Provision (28,139)

Movement of Interest Suspense (1,367)

INVESTMENT AMOUNT (NPR 000)

Held For Trading -

Held For Maturity 7,221,235

Available For Sale 38,558

Toal Investment 7,259,793




48. RISK MANAGEMENT FUNCTION

a. Summary of the bank’s internal approach to assess the adequacy of its capital to support

all the risks in business and achieve better risk management techniques in monitoring and

managing risks

i. Board and senior management oversight

Bank management is responsible for understanding the nature and level of risk being taken by

the bank and how this risk relates to adequate capital levels. It is also responsible for ensuring

that the form and sophistication of the risk management processes is commensurate with the

complexity of its operations. A sound risk management process, thus, is the foundation for an

effective assessment of the adequacy of a bank’s capital position. The decisions made by the

management are regularly reviewed by the BOD.

ii. Sound capital assessment

Another crucial component of an effective ICAAP is the assessment of capital. In order to be able

to make a sound capital assessment, the bank has, at minimum, have the following:

- Policies and procedures designed to ensure that the bank identifies, measures, and reports all

material risks;

- A process that relates capital to the level of risk;

- A process that states capital adequacy goals with respect to risk, taking account of the bank’s

strategic focus and business plan; and

- A process of internal control reviews and audits to ensure the integrity of the overall

management process.

iii. Comprehensive assessment of risks

All material risks faced by the bank has been addressed in the capital assessment process

Nepal Rastra Bank recognizes that not all risks can be measured precisely. However, bank has

developed a process to estimate risks with reasonable certainties. . All the three risks that have

direct impact on the capital adequacy level have been managed in a structured manner with

clear roles and responsibilities. In order to make a comprehensive assessment of risks, the

process should, at minimum, address the forms of risks covered below.

CREDIT RISK

The Bank’s Credit Policy Guidelines has adopted a Credit Risk Management philosophy that

involves a continual measurement.

MARKET RISK

The Bank has in place Assets Liability Management (ALM) Policy, and Assets Liability

Management Committee (ALCO) , which monitors risks arising from changes in exchange rates

in foreign currencies; liquidity profile of assets and liabilities, investment activities of the bank

etc.

OPERATIONAL RISK

The Bank has developed and implemented various manuals, operating procedures and

guidelines for monitoring and controlling Operational Risks in the Bank; a number of procedure

guidelines and manuals are in process of development.

Most significant steps adopted by the Bank for handling Operational Risks are as follows:




Independent reconciliation department accustomed to conducting daily reconciliation of all

agency accounts and Inter-Branch accounts. Transaction Stack System is in place on amount

limit basis. Exception and MIS reports are generated by the system on a ‘Live” basis, where

account activity can be monitored as and when they occur. General Authority schedule is

in place to delegate authority to staff across all levels. Independent Internal Audit has been

appointed to carry out review of internal controls and compliance. Transactions in all levels are

handled under dual supervision and control. Output in all transactions is checked by a higher

authority level. Disaster Recovery Server is in place to ensure full restoration of Bank’s data.

OTHER RISK

In addition to credit, credit concentration, operational and market risk the Bank identifies, assess

and monitors other risks such as strategic risk and reputational risks at regular interval.

iv. Monitoring

Monitoring and reporting of all risks, including credit, operational and market risks are identified,

escalated, monitored and mitigated to the satisfaction of the risk type owner. The risk type owner

is responsible for ensuring that all the risks are adequately identified, escalated, monitored

and mitigated. The Bank has an adequate system in place for monitoring and reporting

risk exposures and assessing how the changing risk profile affects the need for capital. The

senior management and board of directors on a regular basis receive the report regarding the

risk profile of the bank and its capital needs. All the material risks are identified, measured,

monitored and reported by the respective risk type owner.

v. Internal Control Review

The internal control structure of the Bank is essential for sound capital assessment process.

Effective control of the capital assessment process includes an independent review and

involvement of both internal as well as external audits wherever appropriate. The Bank is

committed conduct the regular review of its risk management process to ensure its integrity,

accuracy, and reasonableness. The effectiveness of the Bank’s internal control system is

reviewed regularly by the Board, its committees, Management and Internal Audit.

The Internal Audit monitors compliance with policies and standards and the effectiveness of

internal control structures across the Bank through its program of business/unit audits. The

Internal Audit function is focused on the areas of greatest risk as determined by a risk-based

assessment methodology. Internal Audit reports regularly to the Audit Committee. The findings of

all adverse audits are reported to the Chief Executive Officer and Business Heads for immediate

corrective actions.

b. Types of eligible credit risk mitigants used and the benefits availed under CRM

Following are the eligible credit risk mitigants used by the bank:

CREDIT RISK MITIGANTS AMOUNT (NPR 000)

1. Deposit with Bank 383,126

2. Deposits with other banks/FI -

3. Gold 389,958

4. Govt.& NRB Securities -

Total Credit Risk Mitigants 773,084




STA

TE

ME

NT

OF

LOA

NS

AN

D A

DV

AN

CE

S E

XT

EN

DE

D

TO

PR

OM

OT

OR

/G

RO

UP

OF

PR

OM

OT

OR

S A

GA

INS

T

PR

OM

OT

ER

S S

HA

RE

SA

s on

31st

Ash

ad 2

072 (

16th

Jul

y 2015)

Pa

rmes

hor

Lal A

graw

al

89

,62

5

0.3

7%

H

imal

ayan

Ban

k Li

mite

d

12,5

00,0

00

81,4

78

K

aile

sh C

hand

ra G

oyal

1

,15

8,7

36

4

.74

%

Him

alay

an B

ank

Lim

ited

3

8,0

00,0

00

1,0

64,9

85

R

ames

h A

dhik

ari

17

,92

5

0.0

7%

C

ivil

Ban

k Li

mite

d

800,0

00

13,0

80

Pr

amod

K K

heta

n 1

79

,25

1

0.7

3%

G

loba

l IM

E B

ank

3

0,0

00,0

00

115,7

91

Cen

tury

Ban

k Li

mite

d

10,0

00,0

00

47,1

65

N

iranj

an L

al K

heta

n 1

79

,25

1

0.7

3%

C

entu

ry B

ank

Lim

ited

3

,000,0

00

162,9

56

Su

bash

Kum

ar K

heta

n 2

7,7

99

0

.11

%

Nep

al B

angl

ades

h B

ank

Lmite

d

3,2

00,0

00

25,2

72

R

obin

Sub

edi

38

,60

7

0.1

6%

N

IC A

sia

Ban

k Li

mite

d

2,5

00,0

00

20,9

00

Sh

ree

Kris

hna

Giri

2

2,2

39

0

.09

%

NIC

Asi

a B

ank

Lim

ited

1

5,0

00,0

00

17,4

68

SHA

RE O

WNE

RSHI

P

LO

AN D

ETAI

LS

PR

OMOT

ER/G

ROUP

OF

PROM

OTER

S NO

S PE

RCEN

TAGE

OF

NA

ME

OF B

ANK

/FIN

ANCI

AL IN

STIT

UTIO

N LO

AN A

MOU

NT

NO O

F SH

ARES

RE

MAR

KS

TO

TAL

PAID

UP

CAPI

TAL

Sche

dule

4.3

4




CO

MPA

RIS

ION

OF

UN

AU

DIT

ED

& A

UD

ITE

D

FIN

AN

CIA

L S

TAT

EM

EN

TS

As

of F

Y 2071/7

2 (

2014/1

5)

1.

TOTA

L C

AP

ITA

L &

LIA

BIL

ITIE

S (1

.1 T

O 1

.7)

37,5

91,8

64

37,3

88,8

14

(203,0

50)

-0.5

4%

1

.1. Pa

id-u

p C

apita

l 2

,44

3,6

88

2

,97

2,6

56

5

28

,96

8

21.6

5%

D

ue t

o is

sue

of 2

1.5

0%

bon

us S

hare

s

1

.2. R

eser

ves

and

Surp

lus

93

5,6

58

3

75

,31

7

(5

60

,34

1)

-59.8

9%

D

ue t

o is

sue

of B

onus

Sha

res

and

Cas

h D

ivid

end

1

.3. D

eben

ture

and

Bon

d -

-

-

1

.4. B

orro

win

gs

-

-

-

1

.5. D

epos

its (

a+b)

3

3,4

86

,66

9

33

,48

6,6

69

-

0.0

0%

a. D

omes

tic C

urre

ncy

32

,64

1,3

39

3

2,6

41

,33

9

-

0.0

0%

b. F

orei

gn C

urre

ncy

84

5,3

30

8

45

,33

0

-

0.0

0%

1

.6. In

com

e Ta

x Li

abili

ties

19

1,4

93

-

(

19

1,4

93

) -1

00.0

0%

Ef

fect

of A

djus

ting

with

Adv

ance

Tax

.

1

.7. O

ther

Lia

bilit

ies

53

4,3

56

5

54

,17

2

19

,81

6

3.7

1%

Ef

fect

of r

ecla

ssifi

catio

n of

ass

ets

and

liabl

ities

an

d is

sue

of c

ash

divi

dend

.

2. TO

TAL

ASS

ETS

(2.1

TO

2.7

) 3

7,5

91,8

64

37,3

88,8

14

(203,0

50)

-0.5

4%

2

.1. C

ash

& B

ank

Bal

ance

3

,05

8,1

07

3

,05

8,1

07

-

0.0

0%

2

.2. M

oney

at

call

and

shor

t N

otic

e -

-

-

2

.3. In

vest

men

ts

7,2

59

,79

4

7,2

59

,79

4

-

0.0

0%

2

.4. Lo

ans

& A

dvan

ces

(a+

b+c+

d+e+

f) (

Net

) 2

6,3

81

,07

9

26

,38

0,0

83

(

99

6)

0.0

0%

a. R

eal E

stat

e Lo

an

1,8

75

,49

2

1,9

61

,24

8

85

,75

6

4.5

7%

R

ecla

ssifi

catio

n of

the

Loa

n to

Rea

l Est

ate

1. R

esid

entia

l Rea

l Est

ate

Loan

(Exc

ept

Pers

onal

Hom

e Lo

an u

pto

Rs

10 m

il)

22

1,1

22

2

21

,12

2

-

0.0

0%

2. B

usin

ess

Com

plex

& R

esid

entia

l Apa

rtm

ent

Con

stru

ctio

n Lo

an

1,1

73

,81

6

1,1

73

,81

6

-

0.0

0%

3. In

com

e ge

nera

ting

Com

mer

cial

Com

plex

Loa

n -

-

-

4. O

ther

Rea

l Est

ate

Loan

(In

clud

ing

Land

Pur

chas

e &

Plo

ttin

g)

48

0,5

54

5

66

,31

0

85

,75

6

17.8

5%

R

ecla

ssifi

catio

n of

the

Loa

n to

Rea

l Est

ate

b. P

erso

nal H

ome

Loan

of R

s. 1

0 m

il or

less

2

,43

9,5

57

2

,43

9,5

57

-

0.0

0%

c. M

argi

n Ty

pe L

oan

47

7,8

45

4

77

,84

5

-

0.0

0%

d. T

erm

Loa

n 2

,49

8,6

56

2

,49

8,3

21

(

33

5)

-0.0

1%

Add

ition

al P

rovi

sion

for

Wat

ch L

ist

e. O

verd

raft

Loa

n / T

R L

oan

/ WC

Loa

n 1

4,8

39

,20

1

14

,75

2,7

84

(

86

,41

7)

-0.5

8%

Add

ition

al P

rovi

sion

for

Wat

ch L

ist

&

re

clas

sific

atio

n of

Loa

ns

f. O

ther

s 4

,25

0,3

28

4

,25

0,3

28

-

0.0

0%

2

.5. Fi

xed

Ass

ets

30

9,6

56

3

09

,65

6

-

0.0

0%

2

.6. N

on B

anki

ng A

sset

s (N

et)

-

-

-

2

.7. O

ther

Ass

ets

58

3,2

28

3

81

,17

4

(2

02

,05

4)

-34.6

4%

Adj

ustm

ent

of A

dvan

ce T

ax w

ith T

ax P

rovi

sion

&

re

clas

sific

atio

n of

som

e as

sets

PA

RTIC

ULAR

S AS

PER

UNA

UDIT

ED

AS P

ER A

UDIT

ED

VAR

IANC

E

FI

NANC

IAL

STAT

EMEN

TS

FINA

NCIA

L ST

ATEM

ENTS

IN

AM

OUNT

IN

PER

CENT

AGE

REAS

ON O

F VA

RIAN

CE

Sche

dule

4.3

5

Am

ount

in N

PR

Tho

usan

d

Con

td... C

OM

PAR

ISIO

N O

F U

NAU

DIT

ED &

AU

DIT

ED F

INAN

CIA

L ST

ATEM

ENTS




3.

PR

OFI

T &

LO

SS A

CC

OU

NT

3

.1. In

tere

st In

com

e 2

,40

2,6

57

2

,40

2,6

57

-

0.0

0%

3

.2.

Inte

rest

Exp

ense

1

,29

6,3

57

1

,29

6,3

57

-

0.0

0%

A

. N

ET

INTE

REST

IN

CO

ME (

3.1

-3.2

) 1

,106,3

00

1,1

06,3

00

-

0.0

0%

3

.3. Fe

es C

omm

issi

on a

nd D

isco

unt

11

9,3

78

1

19

,37

8

-

0.0

0%

3

.4. O

ther

Ope

ratin

g In

com

e 1

87

,27

3

18

7,2

73

-

0.0

0%

3

.5. Fo

reig

n Ex

chan

ge G

ain/

Loss

(N

et)

80

,31

6

80

,31

6

-

0.0

0%

B

. TO

TAL

OP

ER

ATIN

G I

NC

OM

E (

A+

3.3

+3

.4+

3.5

) 1

,493,2

67

1,4

93,2

67

-

0.0

0%

3

.6. St

aff E

xpen

ses

27

1,9

11

2

71

,91

1

-

0.0

0%

3

.7. O

ther

Ope

ratin

g Ex

pens

es

35

6,4

71

3

56

,47

1

-

0.0

0%

C

. O

PER

ATIN

G P

RO

FIT

BEFO

RE P

RO

VIS

ION

(B

-3.6

-3.7

) 8

64,8

85

864,8

85

-

0.0

0%

3

.8. Pr

ovis

ion

for

Poss

ible

Los

s 4

57

,81

4

45

8,8

10

9

96

0.2

2%

A

dditi

onal

Pro

visi

on fo

r W

atch

Lis

t.

D

. O

PER

ATIN

G P

RO

FIT

(C-3

.8)

407,0

71

406,0

75

(996)

-0.2

4%

3

.9. N

on O

pera

ting

Inco

me/

Expe

nses

(N

et)

2,8

23

2

,82

3

-

0.0

0%

3

.10

. W

rite

Bac

k of

Pro

visi

on fo

r Po

ssib

le L

oss

4

17

,13

4

41

7,1

34

-

0.0

0%

E.

PR

OFI

T FR

OM

REG

ULA

R A

CTI

VIT

IES

(D+

3.9

+3

.10

) 8

27,0

28

826,0

32

(996)

-0.1

2%

3

.11

. Ex

trao

rdin

ary

Inco

me/

Expe

nses

(N

et)

(9

2,4

68

) (

92

,46

8)

-

0.0

0%

F.

PR

OFI

T B

EFO

RE B

ON

US

AN

D T

AXE

S (E

+3

.11

) 7

34,5

60

733,5

64

(996)

-0.1

4%

3

.12

. Pr

ovis

ion

For

Staf

f Bon

us

66

,77

8

66

,68

8

(9

0)

-0.1

3%

3

.13

. Pr

ovis

ion

For

Tax

19

3,3

92

1

96

,02

0

2,6

28

1.3

6%

A

ctua

l Cal

cula

tion

of t

he T

axab

le A

mou

nt a

s pe

r

In

com

e Ta

x Act

.

G

. N

ET

PR

OFI

T/LO

SS (

F-3

.12

-3

.13

) 4

74,3

90

470,8

56

(3,5

34)

-0.7

4%

4.

RAT

IOS

4

.1

Cap

ital F

und

to R

WA

11

.18

%

11

.11

%

-0

.07%

D

ue t

o D

ecre

ase

in D

efer

red

Tax

Ass

ets

(and

C

ash

Div

iden

d pr

opos

ed)

4

.2. N

on P

erfo

rmin

g Lo

an (

NPL)

to

Tota

l Loa

n 2

.90

%

2.9

0%

0.0

0%

4

.3. To

tal L

oan

Loss

Pro

visi

on t

o to

tal N

PL

12

7.3

1%

1

27

.44

%

0.1

3%

D

ue t

o In

crea

se in

Loa

n Lo

ss P

rovi

sion

.

4

.4. C

ost

of F

unds

5

.15

%

5.1

5%

0.0

0%

4

.5. C

D R

atio

(C

alcu

late

d as

per

NR

B D

irect

ives

) 7

6.1

2%

7

6.2

4%

0.1

2%

D

ue t

o D

eclin

e in

Pro

fit.

4

.6. B

ase

Rat

e 8

.36

%

8.3

6%

0.0

0%

4

.7. In

tere

st S

prea

d (a

s pe

r N

RB

Circ

ular

) 4

.30

%

4.3

0%

0.0

0%

A

dditi

onal

Info

rmat

ion

(Opt

iona

l)

Av

erag

e Yi

eld

(Loc

al C

urre

ncy)

9

.14

%

9.1

4%

0.0

0%

R

etur

n on

Equ

ity

14

.04

%

14

.00

%

-0

.04%

D

ue t

o D

eclin

e in

Pro

fit.

R

etur

n on

Ass

ets

1.2

6%

1

.26

%

0.0

0%

PA

RTIC

ULAR

S AS

PER

UNA

UDIT

ED

AS P

ER A

UDIT

ED

VAR

IANC

E

FI

NANC

IAL

STAT

EMEN

TS

FINA

NCIA

L ST

ATEM

ENTS

IN

AM

OUNT

IN

PER

CENT

AGE

REAS

ON O

F VA

RIAN

CE

Con

td..

. C

OM

PAR

ISIO

N O

F U

NAU

DIT

ED &

AU

DIT

ED F

INA

NC

IAL

STAT

EMEN

TS




UNAUDITED FINANCIAL STATEMENTS

PARTICULARS THIS QUARTER PREVIOUS QUARTER CORRESPONDING PREVIOUS YEAR ENDED ENDED QUARTER ENDED

1. TOTAL CAPITAL & LIABILITIES (1.1 TO 1.7) 37,591,864 34,314,145 29,661,322

1.1. Paid-up Capital 2,443,688 2,390,047 2,236,650

1.2. Reserves and Surplus 935,658 798,507 461,268

1.3. Debenture and Bond - - -

1.4. Borrowings - 6,321 -

1.5. Deposits (a+b) 33,486,669 29,843,111 26,616,667

a. Domestic Currency 32,641,339 29,411,508 25,633,854

b. Foreign Currency 845,330 431,603 982,813

1.6. Income Tax Liabilities 191,493 144,820 -

1.7. Other Liabilities 534,356 1,131,339 346,737

2. TOTAL ASSETS (2.1 TO 2.7) 37,591,864 34,314,145 29,661,322

2.1. Cash & Bank Balance 3,058,107 5,410,739 5,926,882

2.2. Money at call and short Notice - - 113,394

2.3. Investments 7,259,794 3,607,668 3,054,741

2.4. Loans & Advances (a+b+c+d+e+f) (Net) 26,381,079 24,463,699 19,938,326

a. Real Estate Loan 1,875,492 1,915,097 2,011,203

1. Residential Real Estate Loan

(Except Personal Home Loan upto Rs 10 mil) 221,122 221,807 222,476

2. Business Complex & Residential Apartment

Construction Loan 1,173,816 1,171,903 1,140,020

3. Income generating Commercial Complex Loan - - -

4. Other Real Estate Loan (Including Land Purchase & Plotting) 480,554 521,387 648,707

b. Personal Home Loan of Rs. 10 mil or less 2,439,557 2,291,083 1,581,373

c. Margin Type Loan 477,845 306,076 68,790

d. Term Loan 2,498,656 2,311,303 2,137,602

e. Overdraft Loan / TR Loan / WC Loan 14,839,201 13,748,436 10,973,689

f. Others 4,250,328 3,891,704 3,165,669

2.5. Fixed Assets 309,656 271,670 291,870

2.6. Non Banking Assets (Net) - - -

2.7. Other Assets 583,228 560,369 336,109

3. PROFIT & LOSS ACCOUNT

3.1. Interest Income 2,402,657 1,739,462 2,423,846

3.2. Interest Expense 1,296,357 909,579 1,328,712

A. NET INTEREST INCOME (3.1-3.2) 1,106,300 829,883 1,095,134

3.3. Fees Commission and Discount 119,378 87,363 104,093

3.4. Other Operating Income 187,273 138,057 141,288

3.5. Foreign Exchange Gain/Loss (Net) 80,316 56,922 63,213

B. TOTAL OPERATING INCOME (A+3.3+3.4+3.5) 1,493,267 1,112,225 1,403,728

3.6. Staff Expenses 271,911 196,122 263,898

3.7. Other Operating Expenses 356,471 268,978 360,549

C. OPERATING PROFIT BEFORE PROVISION (B-3.6-3.7) 864,885 647,125 779,281

3.8. Provision for Possible Loss 457,814 338,193 466,425

D. OPERATING PROFIT (C-3.8) 407,071 308,932 312,856


Contd... UNAUDITED FINANCIAL STATEMENTS




PARTICULARS THIS QUARTER PREVIOUS QUARTER CORRESPONDING PREVIOUS YEAR ENDED ENDED QUARTER ENDED

3.9. Non Operating Income/Expenses (Net) 2,823 3,114 2,489

3.10. Write Back of Provision for Possible Loss 417,134 218,958 93,542

E. PROFIT FROM REGULAR ACTIVITIES (D+3.9+3.10) 827,028 531,004 408,887

3.11. Extraordinary Income/Expenses (Net) (92,468) - (14,646)

F. PROFIT BEFORE BONUS AND TAXES (E+3.11) 734,560 531,004 394,241

3.12. Provision For Staff Bonus 66,778 48,273 35,840

3.13. Provision For Tax 193,392 145,492 111,629

G. NET PROFIT/LOSS (F-3.12 -3.13) 474,390 337,239 246,772

4. RATIOS

4.1. Capital Fund to RWA 11.18% 10.76% 11.49%

4.2. Non Performing Loan (NPL) to Total Loan 2.90% 3.77% 4.94%

4.3. Total Loan Loss Provision to total NPL 127.31% 113.26% 100.30%

4.4. Cost of Funds 5.15% 4.71% 5.61%

4.5. CD Ratio (Calculated as per NRB Directives) 76.12% 78.47% 74.14%

4.6. Base Rate 8.36% 7.87% 8.62%

4.7. Interest Spread (as per NRB Circular) 4.30% 4.31% 5.00%

Additional Information (Optional)

Average Yield 9.14% 8.74% 10.06%

Return on Equity 14.04% 14.10% 9.04%

Return on Assets 1.26% 1.31% 0.83%

Contd... UNAUDITED FINANCIAL STATEMENTS




Shareholders’ Information

Stock SymbolThe shares of Sunrise Bank Limited are traded on Nepal Stock Exchange Ltd. (NEPSE) with the stock symbol “SRBL”.

As at year ended 2014/15, the following details of the shareholders has

been recorded by the Bank’s Share Registrar, M/s. Civil Capital Market Ltd.

TOTAL NO. OF SHAREHOLDERS

72,805

2,460

TOTAL SHARE VALUE (IN NPR MIL.)

n 1-100 Shareholding No. Of Shareholders

60,509 47


319


37

n Above 100000 Shareholding No. Of Shareholders

11,852


41


240

239

5848

219

1,656

Share Value (In NPR Mil.)

AT A G L A N C E G O V E R N A N C E F I N A N C I A L S TAT E M E N TP R O D U C T S & S E R V I C E S S H A R E H O L D E R S ' I N F O R M A T I O N


MAIN BRANCHBM: Mr. Ram Kumar Giri Sunrise Plaza, Gairidhara, Kathmandu Metropolitan City-2, Kathmandu TEL.: 01- 4004560 / 61 / 62 / 63 / 64 E-MAIL: [email protected]

NEWROADBM: Mr. Ritesh Aryal Khichhapokhari, Kathmandu Metropolitan City-22, Kathmandu TEL.: 01-4239470 / 471 / 472, 01-4233545 / 4225055 E-MAIL: [email protected]

TINKUNE BM: Mr. Dhiraj Nepal Neupane Tower, Tinkune, Kathmandu Metropolitan City-35, Kathmandu TEL.: 04-4111554 / 929 / 854 E-MAIL: [email protected]

GABAHALBM: Mr. Pritam Lal Shrestha Gabahal, Lalitpur Sub- Metropolitan City-18, Lalitpur TEL.: 01-5005014 / 15 E-MAIL: [email protected]

KALIMATIBM: Mr. Deepak Raj Joshi Salt Trading Corporation Premises, Kalimati, Metropolitan City-13, Kathmandu TEL.: 01-4278694 / 709 E-MAIL: [email protected]

CHABAHILBM: Mr. Lokendra Sharma Near Gopikrishna Hall, Chabahil, Kathmandu Metropolitan City-7, Kathmandu TEL.: 01-4822766 / 4822466 E-MAIL: [email protected]

MAHARAJGUNJBM: Ms. Tara Bhandari Narayan Gopal Chowk, Maharajgunj, Kathmandu Metropolitan City-3, Kathmandu TEL.: 01-4720346, 4721352 / 85 E-MAIL: [email protected]

PHARPINGBM: Mr. Sudarshan Khatiwada Pharping BusPark, Dakshinkali Munucipality-6, Kathmandu TEL.: 01-4710865 E-MAIL: [email protected]

Our Branch Network

BHAKTAPURBM: Mr. Neeraj C Amatya Sukuldhoka, Bhaktapur Municipality-8, Bhaktapur TEL.: 01-6619240 / 241 E-MAIL: [email protected]

PUTALISADAKBM: Mr. Bishnu Prasad Uprety Radhakuti Arcade, Putalisadak, Kathmandu Metropolitan City-32, Kathmandu TEL.: 01-4421662 / 4010595 E-MAIL: [email protected]

BUDANILKANTHABM: Ms. Neema Pradhan Narayanthan Chowk, Budhanilkantha Municipality-4, Kathmandu TEL.: 01-4378275 E-MAIL: [email protected]

BOUDHA BM: Mr. Nirish Raj Upadhyay Bouddha, Kathmandu Metropolitan City-6, Kathmandu TEL.: 01-4916395 / 2239855 E-MAIL: [email protected]

SHANKHAMUL BM: Ms. Rachana Shrestha Dibya Complex, Shankhamul Chowk, Metropolitan City-10, Kathmandu TEL.: 01-4783996 E-MAIL: [email protected]

GAUSHALABM: Mr. Kamal Bahadur Adhikari Pashupati Vision Complex, Pingalasthan, Kathmandu Metropolitan City-8, Kathmandu TEL.: 01-4113667 / 4113668 E-MAIL: [email protected]

GOTHATAR BM: Mr. Khagendra Baskota Pepsicola, Kathmandu Metropolitan City-35, Kathmandu TEL.: 01-4992706 E-MAIL: [email protected]

LAGANKHELBM: Mr. Peshal Dahal Lagankhel, Lalitpur Sub- Metropolitan City-12, Lalitpur TEL.: 01-5526178 / 5553480 E-MAIL: [email protected]

TAUKHEL BM: Mr. Upendra Bir Bajracharya Taukhel, Godawari Municipality-6, Lalitpur TEL.: 01-6224821 E-MAIL: [email protected]

LUVUBM: Mr. Bidur Pant Luvu, Mahalaxmi Municipality-5, Lalitpur TEL.: 01-5580361 E-MAIL: [email protected]

BHAISEPATIBM: Mr. Kamal Babu Simkhada Khokana Dobato, Karyavinayak Municipality-1, Lalitpur TEL.: 01-5592930 /931 E-MAIL: [email protected]

BANIYATAR BM: Ms. Panna Wagle Jalap Chowk, Baniyatar, Tokha Municipality-12, Kathmandu TEL.: 01-4382066 E-MAIL: [email protected]

JYATHABM: Mr. Kedar Singh Jyatha, Kathmandu Metropolitan City-30, Kathmandu TEL.: 01-4260654 E-MAIL: [email protected]

KALANKI BM: Mr. Saroj Acharya Kalanki, Kathmandu Metropolitan City-14, Kathmandu TEL.: 01-4281795 / 96 E-MAIL: [email protected]

INSIDE VALLEY

DHARANBM: Mr. Surya Bahadur Balampaki Mahendrapath, Dharan Sub-Metropolitan City-5, Sunsari TEL.: 025-532841 E-MAIL: [email protected]

BESISHARBM: Mr. Meg Bahadur K.C Shera Bazar, Besisahar Municipality-9, Lamjung, TEL.: 066-520129 E-MAIL: [email protected]

DAMAULI BM: Mr. Bhim Narayan Shrestha Neem Chowk,Vyas Municipality-10, Tanahun TEL.: 065-561800 E-MAIL: [email protected]

BIRTAMODEBM: Mr. Gyanendra Dutta Mukti Chowk, Birtamode Municipality-7, Jhapa TEL.: 023-541069 E-MAIL: [email protected]

ILLAMBM: Mr. Guru Raj Regmi Malapath, Ilam Municipality-2, Ilam TEL.: 027-521720 E-MAIL: [email protected]

KAKARVITTABM: Mr. Pramod Hari Pokheral Shanti Path, Mechinagar-10, Kakarvitta TEL.: 023-562083 E-MAIL: [email protected]

NARAYANGHATBM: Mr. Achyuit Shrestha Near Saheed Chowk, Narayanghat, Bharatpur Sub-Metropolitan City-4, Chitwan TEL.: 056-571953 / 054 / 452 E-MAIL: [email protected]

BIRGUNJBM: Mr. Sujan Paudel Adarshnagar, Birgunj, Sub-Metropolitan city-13, Parsa TEL.: 051-524784 / 785 E-MAIL: [email protected]

SUNWAL BM: Mr. Dev Chandra Bhatta Sunwal Municipality- 4, Nawalparasi TEL.: 078-570473 E-MAIL: [email protected]

BARDIBASBM: Saroj Shrestha Bardibas Municipality -1, Mahottari TEL.: 044-550563 E-MAIL: [email protected]

RAJBIRAJBM: Mr. Rohit K. Mahaseth Gajendra Chowk, Rajbiraj Municipality-4, Saptari TEL.: 031-520727 / 721 E-MAIL: [email protected]

DADELDHURA BM: Mr. Yogendra Bhandari Bagbazar, Amargadhi Municipality-5, Dadeldhura TEL.: 096-420723 E-MAIL: [email protected]

BIRATNAGAR BM: Mr. Suman Bhattarai Hanuman Das Road, Biratnagar Sub Metropolitan City-8, Morang TEL.: 021-440695 / 696 E-MAIL: [email protected]

SUNDARBAZAR BM: Mr.Rudra Jung Gurung Sundarbazar Municipality-7 Lamjung TEL.: 066-402061 / 062 E-MAIL: [email protected]

UDAYAPURBM: Mr. Umesh Prasad Kushawa Udayapur Cement Factory Premises, Jaljale, Triyuga Municipality-11, Udayapur TEL.: 035-411016 / 9753003729 E-MAIL: [email protected]

JHUMKABM: Mr. Raman Raj Sharma Near Western Bus Stand, Jhumka, Ramdhuni Bhasi Municiplaity-2, sunsari TEL.: 025-562353 / 562653 E-MAIL: [email protected]

POKHARABM: Mr. Nitesh Regmi Newroad, Pokhara Sub-Metropolitan City-9, Kaski TEL.: 061-537845 E-MAIL: [email protected]

DHANGADI BM: Mr. Tek Raj Bhatta Ratopul, Dhangadhi Sub-Metropolitan city-2, Kailali TEL.: 091-524850 / 523897 E-MAIL: [email protected]

SURUNGABM: Mr. Pramod Das BT Complex, Jhapa Road, Surunga, Kankai Municipality-3, Jhapa TEL.: 023-550881 / 550880 E-MAIL: [email protected]

BHADRAPURBM: Mr. Sanjog Rajbhandari Hulak Road, Bhadrapur Municipality-2, Jhapa TEL.: 023-520132 / 133 E-MAIL: [email protected]

DUHABI BM: Mr. Dhiraj Pradhan Main Road, Duhabi-Bhalwa Municiplaity-4, Sunsari TEL.: 025-541486 / 88 E-MAIL: [email protected]

BIRATCHOWKBM: Mr. Yadav Khatiwada Biratchowk, Koshi Haraicha Municiplaity-1, Morang TEL.: 021-546102 E-MAIL: [email protected]

GAUR BM: Mr. Bipat Chaudhary BP Chowk, Gaur Municipality -5, Rautahat TEL.: 055-521413 / 14 E-MAIL: [email protected]

SUKHADBM: Mr. Surendra Bahadur Shahi Ghodaghodi Municipality -1, Sukhad, Kailali TEL.: 091-403012 / 013 E-MAIL: [email protected]

MAHENDRANAGARBM: Mr. Yogesh Kumar Bhatt Special Line (Main Market), Bhimdatta Municipality-4, Kanchanpur TEL.: 099-520850 E-MAIL: [email protected]

BHAIRAHAWA BM: Mr. Bikesh Kumar Shrestha Bank Road, Siddharthanagar Municipality-5, Rupandehi TEL.: 071-520703 / 706 / 373 E-MAIL: [email protected]

NEPALGUNJ BM: Mr. Dipesh Kumar Sharma Surkhet Road, Near Puspa Lal Chowk, Nepalgunj Sub-Metropolitan City-26, Banke TEL.: 081-522484 / 523319 E-MAIL: [email protected]

DUMRE BM: Mr. Yadav Raj Upadhyay Dumre, Bandipur Municiplaity-1, Tanahun TEL.: 065-580355 E-MAIL: [email protected]

BUTWAL BM: Mr. Rajendra Ghimire Milan Chowk, Butwal Sub Metropolitan City-11, Rupandehi, TEL.: 071-551572 / 573 E-MAIL: [email protected]

LAHANBM: Mr. Rajesh Ray Lahan-8, Siraha TEL.: 033-562403 / 04 E-MAIL: [email protected]

GAIGHATBM: Mr. Bisheshwar Nayak Gaighat Triyuga Municipality- 2, Udayapur, Nepal TEL.: 035-420778 / 779 / 780 E-MAIL: [email protected]

OUTSIDE VALLEY


Head of Department

MR. MANOJ NEUPANE Corporate/Mid Market Banking Department

MR. HARI PRASAD ACHARYA SME Banking Department and Guarantee Business & Transaction Banking Department

MR. ISHWAR KUMAR PATHAK Compliance Department/Board Secretary & Share Registry

MR. VIVEK NIRAULA Remittance Department

MR. GANESH REGMI Retail & Small Business Banking Department

MR. ANUP KOIRALA General Services Department

MR. DIPAK PANDIT Loan Recovery Department

MS. RABINA ACHARYA Marketing Department

MS. PRABHAVATI BISTA Human Resource Department

MR. RAJENDRA PRASAD JOSHI Treasury & Correspondent Banking Department

MR. KESHAB PRASAD SUBEDI Legal Department

MS. NIKKY BASNET Risk Management Department (Officiating Head)

MR. GAUTAM DONGOL Credit Administration Department

MR. RAJESH KUMAR MANANDHAR IT/MIS Department (Incharge)

MR. LAXMI PRASAD SHARMADeprived Sector Banking Department

MR. MANDEEP BHATTARAICards & E-Banking Department

MR. RUPESH LUITELFinance & Planning Department

MR. VIJAY KRISHNA SHRESTHACentral Accounts Department

MR. BINAY GIRITrade Finance Department

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WE ARE YOU, AND, YOU ARE US.

P.O. Box: 15203Gairidhara Crossing, Kathmandu, NepalTEL: +977 1 4004560/4004561FAX: +977 1 4422475EMAIL: [email protected]: SRBLNPKA

www.sunrisebank.com.np

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ANNUAL REPORT 2014/15 - Sunrise Bank Ltd.

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Transcript of ANNUAL REPORT 2014/15 - Sunrise Bank Ltd.