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T H E S T O R Y I S A B O U T
3A 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
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.
6 S U N R I S E B A N K L I M I T E D | A N N U A L R E P O R T 2 0 1 4 / 1 5
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
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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%
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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
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
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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)
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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
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
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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
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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
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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.
16 S U N R I S E B A N K L I M I T E D | A N N U A L R E P O R T 2 0 1 4 / 1 5
With 91% increase in net
profit, Sunrise Bank starts
2015 with a stronger
capital base, stability in
performance and increased
operational efficiency.
91%
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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
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
18 S U N R I S E B A N K L I M I T E D | A N N U A L R E P O R T 2 0 1 4 / 1 5
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
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
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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
20 S U N R I S E B A N K L I M I T E D | A N N U A L R E P O R T 2 0 1 4 / 1 5
Management Team
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
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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.
22 S U N R I S E B A N K L I M I T E D | A N N U A L R E P O R T 2 0 1 4 / 1 5
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.
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
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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.
24 S U N R I S E B A N K L I M I T E D | A N N U A L R E P O R T 2 0 1 4 / 1 5
Corporate Event
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
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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.
28 S U N R I S E B A N K L I M I T E D | A N N U A L R E P O R T 2 0 1 4 / 1 5
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.
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
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Shankhar Prasad Dahal 2/2 16,000
Deepak Prasad Bhattarai 2/2 16,000
NAME ATTENDANCE FEES
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.
30 S U N R I S E B A N K L I M I T E D | A N N U A L R E P O R T 2 0 1 4 / 1 5
Bachh Raj Tater 6/6 48,000
NAME ATTENDANCE FEES
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
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
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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
32 S U N R I S E B A N K L I M I T E D | A N N U A L R E P O R T 2 0 1 4 / 1 5
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.
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
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36 S U N R I S E B A N K L I M I T E D | A N N U A L R E P O R T 2 0 1 4 / 1 5
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
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
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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.
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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.
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
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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.
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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.
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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.
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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.
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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.
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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
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
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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.
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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
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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
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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
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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
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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
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INTEREST MARGIN RATIO
36%
29%
44%
45%
46%
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COST INCOME RATIO
46%
61%
43%
44%42%
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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
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CAPITAL ADEQUACY RATIO
13%
11.78%
11.80%
11.49%
11.11%
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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
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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
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NPA PERCENTAGE
3.51%
3.52%3.74%
4.94%
2.9%
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RETURN ON AVERAGE EQUITY
2%
5%
13%
9%
15%
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RETURN ON AVERAGE ASSETS
0.27%
0.60%
1.31%
0.88%
1.40%
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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
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
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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.
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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.
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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
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
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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
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
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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:
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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.
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
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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
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
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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.)
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
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
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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
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)
Financial Statements
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
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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
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
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
68 S U N R I S E B A N K L I M I T E D | A N N U A L R E P O R T 2 0 1 4 / 1 568 S U N R I S E B A N K L I M I T E D | A N N U A L R E P O R T 2 0 1 4 / 1 5
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
Financial Statements
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
69A 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 69A 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
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
Financial Statements
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
70 S U N R I S E B A N K L I M I T E D | A N N U A L R E P O R T 2 0 1 4 / 1 570 S U N R I S E B A N K L I M I T E D | A N N U A L R E P O R T 2 0 1 4 / 1 5
STA
TE
ME
NT
OF
CH
AN
GE
IN E
QU
ITY
For
the
Peri
od E
nded
1st
Shr
awan
2071 t
o 31st
Ash
ad 2
072
(17th
Jul
y 2014 t
o 16th
Jul
y 2015)
Ope
ning
Bal
ance
as
at
1st
Shr
awan
2071
2,2
36
,65
0,0
00
1
95
,614,9
47
200,5
88,8
58
32,4
07,7
23
13,9
91,5
96
17
,96
7,9
23
6
97
,16
8
- 2
,69
7,9
18
,21
5
Adj
ustm
ents
-
- -
-
-
-
-
-
-
Res
tate
d B
alan
ce a
s
at 1
st S
hraw
an 2
071
2
,23
6,6
50
,00
0
19
5,6
14,9
47
200,5
88,8
58
-
32,4
07,7
23
13,9
91,5
96
17
,96
7,9
23
6
97
,16
8
- 2
,69
7,9
18
,21
5
Adj
ustm
ents
For
the
yea
r 7
36
,00
5,7
25
(1
92
,33
0,2
12)
94,1
71,4
12
-
-
2,5
82,6
43
(17
,96
7,9
23
) 1
4,7
00
,00
0
12
,89
3,0
04
6
50
,05
4,6
49
Net
Pro
fit/(Lo
ss)
for
the
year
470,8
57
,05
6
470,8
57,0
56
Tran
sfer
to
Gen
eral
Res
erve
- (
94,1
71
,41
2)
94
,17
1,4
12
-
Prop
osed
Div
iden
d
-
(2
7,8
40
,40
7)
(2
7,8
40,4
07)
Exch
ange
Flu
ctua
tion
Fund
-
(2,5
82
,64
3)
2
,58
2,6
43
-
Inve
stm
ent
Adj
ustm
ent
Res
erve
- (1
4,7
00
,00
0)
14,7
00,0
00
-
Def
erre
d Ta
x R
eser
ve
-
5,0
74
,91
9
(5,0
74,9
19)
-
Issu
e of
Rig
ht S
hare
s
207,0
38,0
00
207,0
38,0
00
Issu
e of
Bon
us S
hare
s
528,9
67,7
25
(528,9
67
,72
5)
-
Shar
e Pr
emiu
m
Oth
er F
ree
Res
erve
-
-
- -
-
-
(
12,8
93,0
04)
- 1
2,8
93,0
04
-
Clo
sing
Bal
ance
as
at
31st
Ash
ad 2
072
2
,97
2,6
55
,72
5
3,2
84,7
35
294,7
60,2
70
- 32,4
07,7
23
16,5
74,2
39
-
15
,39
7,1
68
1
2,8
93
,00
4
3,3
47
,97
2,8
64
PART
ICUL
ARS
SHAR
E CA
PITA
L AC
CUM
ULAT
ED
GENE
RAL
CAPI
TAL
SHAR
E EX
CHAN
GE
DEFE
RRED
IN
VEST
MEN
T OT
HER
FREE
TO
TAL
PROF
IT &
LOS
S RE
SERV
ES
RESE
RVES
PR
EMIU
M
FLUC
UATI
ON
TAX
RESE
RVES
AD
JUST
MEN
T RE
SERV
E AM
OUNT
ACCO
UNT
FU
ND
FU
ND
FU
ND
Financial Statements
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
71A 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 71A 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
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
a) 24,603,150 Ordinary Shares of Rs 100 each 2,460,315,000 2,460,315,000
(Previous year 24,603,150 Ordinary shares of Rs 100 each)
1.3 Paid Up Capital 2,443,688,000 2,236,650,000
a) 24,436,880 Ordinary Shares of Rs 100 each 2,443,688,000 2,236,650,000
(Previous year 22,366,500 Ordinary shares of Rs 100 each)
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
Financial Statements
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
72 S U N R I S E B A N K L I M I T E D | A N N U A L R E P O R T 2 0 1 4 / 1 572 S U N R I S E B A N K L I M I T E D | A N N U A L R E P O R T 2 0 1 4 / 1 5
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 - -
As on 31st Ashad 2072 (16th July 2015) Schedule 4.3
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 - -
As on 31st Ashad 2072 (16th July 2015) Schedule 4.4
Financial Statements
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
73A 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 73A 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
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
1.1 Government of Nepal
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
2.1 Government of Nepal
2.2 “A” Class Licensed Institutions
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
As on 31st Ashad 2072 (16th July 2015) Schedule 4.5
Financial Statements
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
74 S U N R I S E B A N K L I M I T E D | A N N U A L R E P O R T 2 0 1 4 / 1 574 S U N R I S E B A N K L I M I T E D | A N N U A L R E P O R T 2 0 1 4 / 1 5
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. Foreign Currency 25,730,280 45,062,932
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. Foreign Currency 661,416,000 819,938,500
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
1.1 “A” Class Licensed Institutions
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
2. Foreign Currency 93,320,716 70,876,873
1.1 “A” Class Licensed Institutions
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
As on 31st Ashad 2072 (16th July 2015) Schedule 4.5
Financial Statements
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
75A 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 75A 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
BILLS PAYABLE
CASH BALANCE
OTHER LIABILITIES
PARTICULARS CURRENT YEAR NPR PREVIOUS YEAR NPR
PARTICULARS CURRENT YEAR NPR PREVIOUS YEAR NPR
PARTICULARS CURRENT YEAR NPR PREVIOUS YEAR NPR
1. Local Currency 6,288,097 10,234,476
2. Foreign Currency 2,933,101 1,588,717
TOTAL BILLS PAYABLE 9,221,198 11,823,193
1. Local Currency (Including Coins) 851,523,319 856,216,533
2. Foreign Currency 16,127,785 6,557,812
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)
As on 31st Ashad 2072 (16th July 2015)
As on 31st Ashad 2072 (16th July 2015)
Schedule 4.6
Schedule 4.8
Schedule 4.7
Financial Statements
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
76 S U N R I S E B A N K L I M I T E D | A N N U A L R E P O R T 2 0 1 4 / 1 576 S U N R I S E B A N K L I M I T E D | A N N U A L R E P O R T 2 0 1 4 / 1 5
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
As on 31st Ashad 2072 (16th July 2015) Schedule 4.11
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
Financial Statements
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
77A 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 77A 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
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
As on 31st Ashad 2072 (16th July 2015) Schedule 4.12
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
25,000 Ordinary Shares of Rs 100 Each
1.3. National Banking Institute (Previously NBTI) 1,200,000 Not Listed - 1,200,000 1,200,000
12,000 Ordinary Shares of Rs 100 Each
1.4. Nepal Electronic Payment System 15,000,000 Not Listed - 15,000,000 15,000,000
150,000 Ordinary Shares of Rs 100 Each
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(
Financial Statements
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
78 S U N R I S E B A N K L I M I T E D | A N N U A L R E P O R T 2 0 1 4 / 1 578 S U N R I S E B A N K L I M I T E D | A N N U A L R E P O R T 2 0 1 4 / 1 5
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
PARTICULARS COST PRICE MARKET VALUE (NPR) ADJUSTMENT FUND CURRENT YEAR PREVIOUS YEAR CURRENT YEAR PREVIOUS YEAR
1. Government of Nepal - Treasury bills 1,405,272,550
2. Government of Nepal - Savings Bonds
3. Government of Nepal - Development Bonds 1,285,600,000
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 1,649,638,135
10. Other Investment 2,880,725,000
TOTAL INVESTMENT HELD TILL MATURITY 7,221,235,685 - - - -
Financial Statements
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
79A 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 79A 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
INVESTMENTS (AVAILABLE FOR SALE) As on 31st Ashad 2072 (16th July 2015) Schedule 4.12.3
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 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
Financial Statements
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
80 S U N R I S E B A N K L I M I T E D | A N N U A L R E P O R T 2 0 1 4 / 1 580 S U N R I S E B A N K L I M I T E D | A N N U A L R E P O R T 2 0 1 4 / 1 5
CL
AS
SIF
ICA
TIO
N O
F LO
AN
S, A
DV
AN
CE
S
AN
D B
ILL
S P
UR
CH
AS
E A
ND
PR
OV
ISIN
GA
s on
31st
Ash
ad 2
072 (
16th
Jul
y 2015)
1. Pe
rfor
min
g Lo
an
-
1
,09
4,1
98
,03
4
-
2
5,4
52
,87
8,0
40
6
,80
7,2
00
2
6,5
53
,88
3,2
74
4
4,0
74
,76
6
26
,59
7,9
58
,04
0
19
,94
1,4
59
,77
5
A. Pa
ss lo
ans
-
1,0
94
,19
8,0
34
-
22
,62
6,4
39
,49
8
6,8
07
,20
0
23
,72
7,4
44
,73
2
44
,07
4,7
66
2
3,7
71
,51
9,4
98
1
9,9
41
,45
9,7
75
B. W
atch
Lis
t
-
-
-
2
,82
6,4
38
,54
2
-
2
,82
6,4
38
,54
2
-
2
,82
6,4
38
,54
2
-
2. N
on P
erfo
rmin
g Lo
an
-
9
,98
4,8
46
-
78
4,1
10
,39
1
-
7
94
,09
5,2
37
-
79
4,0
95
,23
7
1,0
36
,77
9,3
53
2.1
R
estr
uctu
red/
Re-
sche
dule
d
-
-
-
-
-
-
-
-
2.1
Su
b St
anda
rd
-
-
-
2
3,4
25
,63
4
-
2
3,4
25
,63
4
-
2
3,4
25
,63
4
39
,56
8,5
89
2.2
D
oubt
ful
-
-
-
1
17
,60
0,7
88
-
11
7,6
00
,78
8
-
1
17
,60
0,7
88
3
33
,20
8,6
31
2.3
Lo
ss
-
9
,98
4,8
46
-
64
3,0
83
,96
9
6
53
,06
8,8
15
-
65
3,0
68
,81
5
66
4,0
02
,13
3
Tot
al L
oans
(A
)
-
1
,10
4,1
82
,88
0
-
26
,23
6,9
88
,43
1
6,8
07
,20
0
27
,34
7,9
78,5
11
44,0
74,7
66
27,3
92,0
53,2
77
20,9
78,2
39,1
28
3. Lo
an L
oss
Prov
isio
n
3.1
Pa
ss L
oans
-
1
0,9
41
,98
1
-
2
26
,26
4,3
95
6
8,0
72
2
37
,27
4,4
48
4
40
,74
8
23
7,7
15
,19
6
19
9,4
14
,59
9
3.2
W
atch
-Lis
t
-
-
5
6,5
28
,77
1
-
5
6,5
28
,77
1
-
5
6,5
28
,77
1
-
3.3
. R
estr
uctu
red/
Re-
sche
dule
d Lo
an
-
-
-
-
-
-
-
-
-
3.4
Su
b St
anda
rd
-
-
-
5
,85
6,4
09
-
5,8
56
,40
9
-
5
,85
6,4
09
9
,89
2,1
48
3.5
D
oubt
ful
-
-
-
5
8,8
00
,39
4
-
5
8,8
00
,39
4
-
5
8,8
00
,39
4
16
6,6
04
,31
6
3.6
Lo
ss
-
9
,98
4,8
47
-
64
3,0
83
,96
9
-
6
53
,06
8,8
16
-
65
3,0
68
,81
6
66
4,0
02
,13
3
Tot
al P
rovi
sion
s (B
)
-
2
0,9
26
,82
8
-
99
0,5
33
,93
8
68
,07
2
1,0
11
,528,8
38
440,7
48
1,0
11,9
69,5
86
1,0
39,9
13,1
96
4. P
rovi
sion
upt
o Pr
evio
us y
ear
-
-
-
-
4.1
Pa
ss L
oans
-
9,3
88
,25
1
-
1
88
,69
6,9
08
-
19
8,0
85
,15
9
1,3
29
,44
0
19
9,4
14
,59
9
17
7,0
47
,45
9
4.2
R
estr
uctu
red/
Re-
sche
dule
d Lo
ans
-
-
-
-
-
-
-
-
-
4.3
Su
b St
anda
rd
-
-
-
9
,89
2,1
48
-
9,8
92
,14
8
-
9
,89
2,1
48
4
,03
4,5
29
4.4
D
oubt
ful
-
-
-
1
66
,60
4,3
16
-
16
6,6
04
,31
6
-
1
66
,60
4,3
16
1
81
,20
6,2
25
4.5
Lo
ss
-
9
,98
3,7
33
-
65
4,0
18
,40
0
-
6
64
,00
2,1
33
-
66
4,0
02
,13
3
30
9,8
89
,43
7
Ext
ra P
rovi
sion
-
-
-
-
-
-
-
Tot
al P
rovi
sion
upt
o P
revi
ous
Year
(C
)
-
1
9,3
71
,98
4
-
1,0
19
,21
1,7
72
-
1,0
38
,583,7
56
1,3
29,4
40
1,0
39,9
13,1
96
672,1
77,6
49
Writ
e ba
ck d
urin
g th
e ye
ar
-
-
-
3
81
,98
7,9
76
-
38
1,9
87
,97
6
-
3
81
,98
7,9
76
9
3,5
42
,48
6
Add
ition
al P
rovi
sion
dur
ing
the
yea
r
-
1
,55
4,8
44
-
35
3,3
10
,14
2
68
,07
2
35
4,9
33
,05
8
(8
88
,69
2)
35
4,0
44
,36
6
46
1,2
78
,03
2
Net
Cha
nge
for
this
yea
r
-
1
,55
4,8
44
-
(2
8,6
77
,83
4)
68
,07
2
(2
7,0
54
,91
8)
(8
88
,69
2)
(2
7,9
43
,61
0)
36
7,7
35
,54
6
NET
LOA
N (
A-B
)
-
1
,08
3,2
56
,05
2
-
25
,24
6,4
54
,49
3
6,7
39
,12
8
26
,33
6,4
49,6
73
43,6
34,0
18
26,3
80,0
83,6
91
19,9
38,3
25,9
32
Sche
dule
4.1
3
LO
ANS
& AD
VANC
ES
DOM
ESTI
C
FO
REIG
N TO
TAL
LOAN
S
BILL
S CU
RREN
T (N
RS)
PREV
IOUS
(NRS
) PA
RTIC
ULAR
S
DE
PRIV
ED
OTHE
RS
& AD
VANC
ES
PURC
HASE
INSU
RED
UNIN
SURE
D IN
SURE
D UN
INSU
RED
Financial Statements
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
81A 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 81A 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
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
Financial Statements
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
82 S U N R I S E B A N K L I M I T E D | A N N U A L R E P O R T 2 0 1 4 / 1 582 S U N R I S E B A N K L I M I T E D | A N N U A L R E P O R T 2 0 1 4 / 1 5
FIX
ED
AS
SE
TS
As
on 3
1st
Ash
ad 2
072 (
16th
Jul
y 2015)
a.
Pre
viou
s ye
ar’s
bal
ance
-
10
6,9
64
,55
3
-
27
7,9
92
,40
6
37,9
64,3
06
422,9
21,2
65
418,9
46,0
04
b.
Add
ition
s th
is y
ear
-
37
,19
6,5
00
30
,49
4,2
70
-
67,6
90,7
70
51,9
01,6
01
c.
Rev
alua
tion/
Writ
ten
back
thi
s ye
ar
-
-
-
-
-
-
-
d.
Thi
s Ye
ar S
old
-
(2
4,1
45
,93
6)
(
6,1
84
,53
9)
-
(
30,3
30,4
75)
(23,0
28,7
24)
e.
Thi
s ye
ar w
ritte
n of
f -
-
-
-
-
-
(24,8
97,6
16)
Tota
l Cos
t (a
+b+
c+d+
e)
1
20
,01
5,1
17
-
30
2,3
02
,13
7
37,9
64,3
06
460,2
81,5
60
422,9
21,2
65
2. D
epre
ciat
ion
a.
Upt
o pr
evio
us y
ear
-
49
,66
6,9
41
-
16
3,7
81
,70
6
21,5
39,7
19
234,9
88,3
66
209,6
30,6
72
b.
For
thi
s ye
ar
-
9,6
15
,48
0
-
19
,67
0,9
47
2
,452,6
63
31,7
39,0
90
65,3
50,1
46
c.
Dep
reci
atio
n on
rev
alua
tion/
writ
ten
back
-
-
-
-
-
-
-
d.
Dep
reci
atio
n A
djus
tmen
t/Writ
ten
off
-
(1
5,4
07
,18
2)
-
(4
,27
2,0
13
) -
(19,6
79,1
95)
(39,9
92,4
52)
Tota
l Dep
reci
atio
n -
43
,87
5,2
39
-
17
9,1
80
,64
0
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
24
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
Financial Statements
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
83A 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 83A 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
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
-Apr
-13
-
-
-
-
3
0,0
00,0
00
-
MED
ICA
L N
EPA
L IN
TER
NAT
ION
AL
PVT
. LT
D.
(Cha
rles
Will
iam
Men
dies
Gro
up)
(Lal
itpur
-5 &
Man
galta
r -2
& 3
)
7-A
ug-1
3
-
-
-
-
220,0
00
KH
AD
KA
KIR
AN
A P
ASA
L (B
ajga
ra-2
Ka,
Dha
ran)
10
-Sep
-13
-
-
-
-
3
,188,3
54
-
RIR
AJ
KAT
H D
AUR
A U
DYO
G (
Dhu
laba
ri-3,
Jhap
a)
14
-Jul
-14
-
-
-
-
1
,738,5
24
-
AN
NA
PU
RN
A M
ULT
I IN
D P
.LTD
(Ram
kot-
6, K
athm
andu
)
6-N
ov-1
4
9,0
00
,00
0
10
0%
9
,00
0,0
00
-
-
-
SIG
NAT
UR
E P
RO
PER
TIES
&
LAN
D D
EVEL
OP
ERS
(San
isch
ere
- 1,
Jhap
a)
2-D
ec-1
4
64
,00
0,0
00
1
00
%
64
,00
0,0
00
-
-
-
KA
SIK
A C
OLL
ECTI
ON
CEN
TRE
(Mad
hum
alla
-5, M
oran
g/B
ayar
ban-
9,
Mor
ang)
16
-Jul
-15
8
,72
6,7
46
1
00
%
8,7
26
,74
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
Financial Statements
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
84 S U N R I S E B A N K L I M I T E D | A N N U A L R E P O R T 2 0 1 4 / 1 584 S U N R I S E B A N K L I M I T E D | A N N U A L R E P O R T 2 0 1 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
As on 31st Ashad 2072 (16th July 2015) Schedule 4.16
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
Financial Statements
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
85A 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 85A 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
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
As on 31st Ashad 2072 (16th July 2015) Schedule 4.17
Financial Statements
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
86 S U N R I S E B A N K L I M I T E D | A N N U A L R E P O R T 2 0 1 4 / 1 586 S U N R I S E B A N K L I M I T E D | A N N U A L R E P O R T 2 0 1 4 / 1 5
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
Financial Statements
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
87A 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 87A 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
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
For the Period Ended 1st Shrawan 2071 to 31st Ashad 2072 (17th July 2014 to 16th July 2015) Schedule 4.19
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
For the Period Ended 1st Shrawan 2071 to 31st Ashad 2072 (17th July 2014 to 16th July 2015) Schedule 4.20
Financial Statements
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
88 S U N R I S E B A N K L I M I T E D | A N N U A L R E P O R T 2 0 1 4 / 1 588 S U N R I S E B A N K L I M I T E D | A N N U A L R E P O R T 2 0 1 4 / 1 5
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
For the Period Ended 1st Shrawan 2071 to 31st Ashad 2072 (17th July 2014 to 16th July 2015) Schedule 4.21
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
For the Period Ended 1st Shrawan 2071 to 31st Ashad 2072 (17th July 2014 to 16th July 2015) Schedule 4.23
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
For the Period Ended 1st Shrawan 2071 to 31st Ashad 2072 (17th July 2014 to 16th July 2015) Schedule 4.22
Financial Statements
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
89A 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 89A 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
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
For the Period Ended 1st Shrawan 2071 to 31st Ashad 2072 (17th July 2014 to 16th July 2015) Schedule 4.24
Financial Statements
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
90 S U N R I S E B A N K L I M I T E D | A N N U A L R E P O R T 2 0 1 4 / 1 590 S U N R I S E B A N K L I M I T E D | A N N U A L R E P O R T 2 0 1 4 / 1 5
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
For the Period Ended 1st Shrawan 2071 to 31st Ashad 2072 (17th July 2014 to 16th July 2015) Schedule 4.25
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
For the Period Ended 1st Shrawan 2071 to 31st Ashad 2072 (17th July 2014 to 16th July 2015) Schedule 4.26
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
For the Period Ended 1st Shrawan 2071 to 31st Ashad 2072 (17th July 2014 to 16th July 2015) Schedule 4.27
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)
For the Period Ended 1st Shrawan 2071 to 31st Ashad 2072 (17th July 2014 to 16th July 2015) Schedule 4.28
Financial Statements
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
91A 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 91A 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
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21
,31
5,5
13
“R
egis
tere
d m
ortg
age
of L
and
in
“FM
V: N
PR
. 3
8.7
66
C
EO
“- W
ritte
n an
d Ve
rbal
Fol
low
ups
fa
vor
of S
unris
e B
ank
Ltd.
with
M
illio
n D
V: N
PR
.
-
35
Day
s pu
blic
Not
ice
in N
atio
nal D
aily
New
spap
er
fo
llow
ing
deta
ils;
Ow
ner
:
31
.01
Mill
ion
-
Auc
tion
Not
ices
in N
atio
nal D
aily
New
spap
er
M
r. Sa
njay
a K
achh
apat
i R
e-va
luat
ion
Don
e by
:
-B
lack
listin
g
Lo
catio
n :W
ard
No.
14
, K
hasi
W
elin
k Pa
rtne
rs P
vt.
Ltd.
”
- Fi
le C
ase
with
Deb
t R
ecov
ery
Trib
unal
(D
RT)
”
B
azaa
r, R
ing
Roa
d K
alan
ki
Lo
catio
n :W
ard
No.
14
, K
hasi
B
azaa
r, R
ing
Roa
d K
alan
ki
A
rea
: 9
65
.09
sq.
m.”
4.R
INA IN
TER
NAT
ION
AL
PVT
LTD
D
eman
d Lo
an
22
,15
5,6
11
“R
egis
tere
d M
ortg
age
of L
and
&
“DV:
NP
R.9
00
,00
0.0
0
GM
“-
Writ
ten
and
Verb
al F
ollo
w u
ps
No
secu
rity
B
uild
ing
mor
tgag
ed w
ith
FMV:
NP
R.
- 3
5 D
ays
publ
ic N
otic
e in
Nat
iona
l Dai
ly
rem
aini
ng.
Su
nris
e B
ank
Lim
ited
1
,08
1,0
00
.00
”
New
spap
er
O
wne
r: B
ig B
azar
Nep
al
- A
uctio
n N
otic
es in
Nat
iona
l Dai
ly N
ewsp
aper
Lo
catio
n: W
ard
No.
1,
Birg
unj,
-Bla
cklis
ting
Pa
rsa,
Plo
t N
o.:
32
0 a
nd 3
28
,
-
File
Cas
e w
ith D
ebt
Rec
over
y Tr
ibun
al (
DR
T)”
A
rea:
36
6.1
1 s
q. m
.”
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
Sche
dule
4.2
8ka
Con
td... D
ETAIL
S O
F LO
AN
WR
ITE
OFF
Financial Statements
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
92 S U N R I S E B A N K L I M I T E D | A N N U A L R E P O R T 2 0 1 4 / 1 592 S U N R I S E B A N K L I M I T E D | A N N U A L R E P O R T 2 0 1 4 / 1 5
5. M
AN
AK
AM
AN
A C
RU
SHER
UD
HYO
G P
VTLT
D
Ove
rdra
ft
9,9
12
,54
6
“a.
Reg
iste
red
Mor
tgag
e of
Lan
d
“DV:
NP
R.
10
.39
Mill
ion
CEO
“-
Writ
ten
and
Verb
al F
ollo
w u
ps
No
secu
rity
lo
cate
d at
Jya
mire
VD
C,
WN
- 6
, FM
V: N
PR
. 1
2.9
9 M
illio
n”
- 3
5 D
ays
publ
ic N
otic
e in
Nat
iona
l Dai
ly
rem
aini
ng.
Fi
xed
Term
Mak
awan
pur
Dis
tric
t, in
favo
r of
N
ewsp
aper
Lo
an
Su
nris
e B
ank
Ltd.
, P
lot
No.
:
NP
R.
27
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
Financial Statements
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
93A 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 93A 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
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
Financial Statements
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
94 S U N R I S E B A N K L I M I T E D | A N N U A L R E P O R T 2 0 1 4 / 1 594 S U N R I S E B A N K L I M I T E D | A N N U A L R E P O R T 2 0 1 4 / 1 5
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
Financial Statements
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
95A 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 95A 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
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
Financial Statements
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
96 S U N R I S E B A N K L I M I T E D | A N N U A L R E P O R T 2 0 1 4 / 1 596 S U N R I S E B A N K L I M I T E D | A N N U A L R E P O R T 2 0 1 4 / 1 5
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
Financial Statements
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
97A 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 97A 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
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
Financial Statements
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
98 S U N R I S E B A N K L I M I T E D | A N N U A L R E P O R T 2 0 1 4 / 1 598 S U N R I S E B A N K L I M I T E D | A N N U A L R E P O R T 2 0 1 4 / 1 5
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
Financial Statements
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
99A 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 99A 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
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
Financial Statements
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
100 S U N R I S E B A N K L I M I T E D | A N N U A L R E P O R T 2 0 1 4 / 1 5100 S U N R I S E B A N K L I M I T E D | A N N U A L R E P O R T 2 0 1 4 / 1 5
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
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ture
cap
ital,
priv
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equi
ty in
vest
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ts,
pers
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rec
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bles
) 1
9,5
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-
13
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-
-
-
-
-
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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
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tach
men
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-
TOTA
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) 9
4,4
77
-
38
9,9
58
-
-
-
-
-
-
484,4
35
Off
Bal
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She
et E
xpos
ures
Rev
ocab
le C
omm
itmen
ts
-
Bill
s U
nder
Col
lect
ion
-
Forw
ard
Exch
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Con
trac
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abili
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-
LC C
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itmen
ts W
ith O
rigin
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atur
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p to
6 m
onth
s (d
omes
tic c
ount
erpa
rty)
94
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94
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fore
ign
coun
terp
arty
(E
CA R
atin
g 0-1
)
-
fore
ign
coun
terp
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(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
Financial Statements
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
101A 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 101A 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
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
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(E
CA R
atin
g -2
)
-
fore
ign
coun
terp
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(
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
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=A
+B
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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
Financial Statements
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
102 S U N R I S E B A N K L I M I T E D | A N N U A L R E P O R T 2 0 1 4 / 1 5102 S U N R I S E B A N K L I M I T E D | A N N U A L R E P O R T 2 0 1 4 / 1 5
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
Financial Statements
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
103A 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 103A 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
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
Financial Statements
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
104 S U N R I S E B A N K L I M I T E D | A N N U A L R E P O R T 2 0 1 4 / 1 5104 S U N R I S E B A N K L I M I T E D | A N N U A L R E P O R T 2 0 1 4 / 1 5
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
For the Period Ended 1st Shrawan 2071 to 31st Ashad 2072 (17th July 2014 to 16th July 2015) Schedule 4.31
Financial Statements
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
105A 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 105A 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
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.
Financial Statements
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
106 S U N R I S E B A N K L I M I T E D | A N N U A L R E P O R T 2 0 1 4 / 1 5106 S U N R I S E B A N K L I M I T E D | A N N U A L R E P O R T 2 0 1 4 / 1 5
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
Financial Statements
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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.
Financial Statements
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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
Financial Statements
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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
PARTICULARS AMOUNT (NPR)
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
PARTICULARS AMOUNT (NPR)
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
PARTICULARS AMOUNT (NPR)
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
Financial Statements
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PARTICULARS AMOUNT (NPR)
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
PARTICULARS AMOUNT (NPR)
Balance as per the Ledger 95,260,947
Ledger Debit 1,163,657
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:
The ageing details of the unreconciled
amount:
Ageing 0--3 Month
Ledger Debit 1,603,110
Ledger Credit 10,508,660
Statement Debit 5,076,151
Statement Credit 212,985
Total (4,042,384)
PARTICULARS AMOUNT (NPR)
Balance as per the Ledger 204,460,290
Ledger Debit 5,534,234
Ledger Credit 19,187,409
Statement Debit 9,644,495
Statement Credit 61,544,603
Balance as Per Statement 270,013,573
The ageing details of the unreconciled
amount:
19. BALANCE WITH FOREIGN BANKS
Reconciliation with Foreign Banks:
Ageing 0--3 Month
Ledger Debit 1,603,110
Ledger Credit 10,508,660
Statement Debit 5,076,151
Statement Credit 212,985
Total (4,042,384)
Financial Statements
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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%
Financial Statements
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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:
PARTICULARS AMOUNT (NPR)
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
PARTICULARS AMOUNT (NPR)
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
PARTICULARS CURRENT PREVIOUS YEAR (NPR) YEAR (NPR)
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
PARTICULARS CURRENT PREVIOUS YEAR (NPR) YEAR (NPR)
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
PARTICULARS CURRENT PREVIOUS YEAR (NPR) YEAR (NPR)
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%
Financial Statements
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
Financial Statements
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
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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
PARTICULARS AMOUNT (NPR)
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:
Financial Statements
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
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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 - -
Financial Statements
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
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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
PARTICULARS AMOUNT (IN NPR 000)
General Loan Loss Provision 294,244
Exchange Equalization Reserve 16,574
Investment Adjustment Reserve 15,397
Suplementary (Tier-2) Capital 326,215
PARTICULARS AMOUNT (IN NPR 000)
Core Capital 3,287,789
Suplementary Capital 326,215
Total Capital 3,614,004
Financial Statements
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
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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
Financial Statements
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
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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
Financial Statements
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
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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
Financial Statements
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
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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:
Financial Statements
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
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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
Financial Statements
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
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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
Financial Statements
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
122 S U N R I S E B A N K L I M I T E D | A N N U A L R E P O R T 2 0 1 4 / 1 5122 S U N R I S E B A N K L I M I T E D | A N N U A L R E P O R T 2 0 1 4 / 1 5
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
Financial Statements
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
123A 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 123A 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
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
Financial Statements
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
124 S U N R I S E B A N K L I M I T E D | A N N U A L R E P O R T 2 0 1 4 / 1 5124 S U N R I S E B A N K L I M I T E D | A N N U A L R E P O R T 2 0 1 4 / 1 5
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
As on 31st Ashad 2072 (16th July 2015) Schedule 4.36
Contd... UNAUDITED FINANCIAL STATEMENTS
Financial Statements
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
125A 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 125A 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
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
Financial Statements
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
127A 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
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
n 5001-20000 Shareholding No. Of Shareholders
319
n 1001-5000 Shareholding No. Of Shareholders
37
n Above 100000 Shareholding No. Of Shareholders
11,852
n 101-1000 Shareholding No. Of Shareholders
41
n 20001-100000 Shareholding No. Of Shareholders
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
128 S U N R I S E B A N K L I M I T E D | A N N U A L R E P O R T 2 0 1 4 / 1 5
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
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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
132 S U N R I S E B A N K L I M I T E D | A N N U A L R E P O R T 2 0 1 4 / 1 5
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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