Annual Report 2075-076

12th Annual Report 075/076
ljifo–;"rL
!= afx|f}+ ;fwf/0f ;ef ;DaGwL ;"rgf !
@= ;fwf/0f;ef ;DaGwL ;fdfGo hfgsf/Lx? @
#= k|f]S;L kmf/d tyf k|j]zkq #
$= ;+rfns ;ldltsf] cWoIfsf] k|ltj]bg %
%= ;+rfns ;ldltaf6 k|:t't cf=j= @)&%÷&^ sf] k|ltj]bg &
^= sDkgL P]g @)^# sf] bkmf !)( cg';f/sf] cltl/Qm ljj/0f !@
&= lwtf]kq btf{ tyf lgisfzg lgodfjnL, @)&# sf] lgod @^ sf] pklgod @ ;Fu ;DalGwt
cg';"rL !% adf]lhdsf] jflif{s ljj/0f !$
*= n]vfkl/Ifssf] k|ltj]bg !%
(= ljQLo cj:yfsf] ljj/0f -jf;nft_ !&
!)= gfkmf gf]S;fg ljj/0f !*
!!= cGo lj:t[t cfDbfgLsf] ljj/0f !(
!@= OlSj6Ldf ePsf] kl/jt{gsf] ljj/0f @)
!#= gub k|jfx ljj/0f @@
!$= k|d'v n]vf gLltx? tyf n]vf ;DaGwL l6Kk0fLx? @$
!%= ljlQo ljj/0fsf cg';"rLx? $!
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!*= n]vfkl/If0f gePsf] ljQLo ljj/0f *!
!(= n]vfkl/If0f gePsf] / n]vfkl/If0f kl5sf] t'ngfTds ljQLo ljj/0f *$
@)= ljQLo ;"rsf+sx? *^
@!= g]kfn /fi6« a+}ssf] :jLs[lt kq *&
@@= k|aGwkq / lgodfjnL ;+zf]wgsf] tLg dxn] ljj/0f **
12th Annual Report 075/076 12th Annual Report 075/076

s]Gb|Lo sfof{noM sdnkf]v/L, sf7df8f}+}
sf]
afx|f}+ jflif{s ;fwf/0f;ef ;DaGwL ;"rgf
ldlt @)&^÷)(÷)# -tb\g';f/ !( l8;]Dj/, @)!(_ ut] a;]sf] ;+rfns ;ldltsf] #*& cf}+ a}7ssf] lg0f{ofg';f/ o; a}+ssf]
afx|f}+ aflif{s ;fwf/0f;ef lgDg lnlvt ldlt, :yfg / ;dodf lgDg ljifox¿ pk/ 5nkmn tyf lg0f{o ug{ a:g] ePsf]
x'“bf cfb/0fLo ;Dk"0f{ z]o/wgL dxfg'efjx¿sf] pkl:yltsf]nflu cg'/f]w ub{5' .
;ef x'g] ldlt, :yfg / ;doM
;ef x'g] ldlt M @)&^÷)(÷@% ut], z'qmaf/ -tb\g';f/ !) hgj/L, @)@)_ .
:yfg M cfdL{ clkm;;{ Sna, ;'gwf/f, sf7df08f} .
;ef z'¿ x'g] ;do M laxfg !)M)) ah]b]lv .
5nkmnsf ljifox¿ M
-s_;fdfGo k|:tfjx¿ M
!= cfly{s aif{ @)&%÷&^ sf] ;+rfns ;ldltsf] k|ltj]bg pk/ 5nkmn u/L kfl/t ug]{ .
@= n]vfk/LIfssf] k|ltj]bg ;lxt @)&^ cfiff9 d;fGtsf] jf;nft, ldlt @)&%÷)$÷)! b]lv @)&^÷)#÷#! ;Ddsf]] gfkmf
gf]S;fg lx;fj / ;f]xL cjlwsf] gub k|jfx nufotsf ljj/0fx¿ pk/ 5nkmn u/L :jLs[t ug]{ .
#= a}+s tyf ljQLo ;+:yf ;DjGwL P]g, @)&# sf] bkmf ^# tyf sDkgL P]g, @)^# sf] bkmf !!! cg';f/ cfly{s aif{
@)&^÷&& sf] nflu n]vfk/LIf0f ug{ n]vfk/LIf0f ;ldltn] l;kmfl/; u/] adf]lhd n]vfk/LIfs lgo'Qm ug]{ / lghsf]
kfl/>lds cg'df]bg ug]{ . -at{dfg n]vfk/LIfs >L /~hLa P08 P;f]l;o6\; k"gM lgo'Qm x'g g;Sg] _
-v_ laz]if k|:tfjx¿ M
!_ ;+rfns ;ldltn] k|:tfj u/] adf]lhd a}+ssf] r'Qmf k"FhLsf] !^Ü -;f]x| k|ltzt_ -¿= !,%$,(*,(^,@&@÷–_ af]g;
z]o/ hf/L ug]{ .
@_ o; a}+s tyf cGo s'g} a}+s tyf ljQLo ;+:yf Ps cfk;df dh{ x'g] -ufEg]÷ufleg]_, k|flKt -PlSjlhzg_ ug{]
;Gbe{df cfjZos ;Dk"0f{ k|lqmof cjnDjg u/L Ps cfk;df dh{ -ufEg]÷ufleg]_, k|flKt -PlSjlhzg_ ug{sfnflu
;+rfns ;ldltnfO{ ;Dk"0f{ clVtof/ k|bfg ug]{ .
#_ k|fOd sdl;{on a}+s lnld6]8n] s}nfz ljsf; a}+s lnld6]8nfO{ k|flKt -PlSjlhzg_ ug]{ ;DaGwdf b]xfosf ljif]z
k|:tfjx? kfl/t ug]{ .
s_ k|fOd sdl;{on a}+s lnld6]8n] s}nfz ljsf; a}+s lnld6]8nfO{ k|flKt -PlSjlhzg_ ug]{ ;DaGwL ljz]if k|:tfj
kfl/t ug]{ .
v_ k|fOd sdl;{on a}+s lnld6]8n] s}nfz ljsf; a}+s lnld6]8nfO{ k|flKt -PlSjlhzg_ ug]{ k|of]hgsf] nflu
d'Nofª\sg stf{ >L SAR Associates, rf6{8{ PsfpG6]G6\;\n] tof/ u/]sf] s}nfz ljsf; a}+s lnld6]]8sf]
rn÷crn ;DkQL tyf bfloTj d'Nofª\sg k|ltj]bg Due Diligence Audit (DDA) tyf cGo ;Dj4 Aoj:yf
;d]tsf cfwf/df lgwf{/0f ul/Psf] s}nfz ljsf; a}+s ln= sf] z]o/sf] z]o/ :jfk cg'kft -Share Swap
Ratio_ kfl/t u/L k|flKt -PlSjlhzg_ ug]{ sfo{nfO{ clGtd :jLs[tL k|bfg ug]{ ljz]if k|:tfj kfl/t ug]{ .
u_ k|fOd sdl;{on a}+s lnld6]8n] s}nfz ljsf; a}+s lnld6]8 k|flKt -PlSjlhzg_ ug]{ ;DaGwdf ul/Psf] clGtd
;xdtL÷;Demf}tf kq (Scheme of Arrangement) tyf cGo eP u/]sf ;Demf}tfx?sf] cg'df]bg ug]{ ljz]if
k|:tfj kfl/t ug]{ .
3_ k|fOd sdl;{on a}+s lnld6]8n] s}nfz ljsf; a}+s lnld6]8 k|flKt -PlSjlhzg_ ug]{ k|of]hgsf] nflu s}nfz
ljsf; a}+s lnld6]8sf] rn crn ;DkQL tyf bfloTj d'Nofª\sg k|ltj]bg (Due Diligence Audit) (DDA)
ug{sf nfuL n]vfkl/Ifs -d'Nofª\sg stf{_ sf] lgo'lQm tyf lghnfO{ k|bfg ul/Psf] kfl/>lds cg'df]bg ug]{ .
ª_ k|fOd sdl;{on a}+s lnld6]8n] s}nfz ljsf; a}+s lnld6]8nfO{ k|flKt -PlSjlhzg_ ug]{ k|of]hgsf] nflu ePsf]
;Demf}tf adf]lhd ;f]sf] cfjZos :jLs[tLsf nflu lgodgsf/L lgsfox? -sDkgL /lhi6«f/sf] sfof{no, g]kfn
/fi6« a}+s, g]kfn lwtf]kq af]8{ cflb_ df lgj]bg ug{ / k|flKt;Fu ;DalGwt k|rlnt sfg'g lgb]{zgx? adf]lhd
ckgfpg' kg]{ tyf ug'{ kg]{ ;Dk"0f{ cfjZos sfo{x? Pj+ k|lqmofx? k'/f u/L clGtd :jLs[tL lng] tyf ;f]
;DaGwdf lgodgsf/L lgsfox?af6 lgb]{zg u/] adf]lhdsf sfuhft tyf ljj/0fx? Tfof/ ug]{, ;f] pknAw
ug]{ u/fpg] nufotsf sfo{ ug{ u/fpg a}+ssf] ;+rfns ;ldltnfO{ ;Dk"0f{ clVtof/L k|bfg ug]{ ljz]if k|:tfj
kfl/t ug]{ .
12th Annual Report 075/076 1

$_ lgDg adf]lhd a}+ssf] k|jGwkq tyf lgodfjnLdf ;+zf]wg÷yk ug]{ k|f]S;L kmf/fd
s_ a}+sn] af]g; z]o/ hf/L tyf s}nfz ljsf; a}+s lnld6]8nfO{ k|flKt kZrft a}+ssf] hf/L kF"hL tyf r'Qmf kF"hL >L ;+rfns ;ldlt
a[l4 x'g] ePsfn] k|jGw kq sf] bkmf ^-v_ / ^-u_ df ;+zf]wg ug]{ . k|fOd sdl;{on a}+s lnld6]8
v_ lgodfjnLsf] lgod #*-*_ df ;+rfns ;ldltsf] a}+7s ;DjGwL sfo{ljlwdf yk ;+zf]wg ug]{ . sdnkf]v/L, sf7df8f}+} .
%_ k|aGw kq / lgodfjnLdf ePsf] ;+zf]wgdf lgodgsf/L lgsfox¿ -sDkgL /lhi6«f/sf] sfof{no, g]kfn /fi6« a}+s, ljifo M k|ltlglw lgo"Qm u/]sf] jf/] .
g]kfn lwtf]kq af]8{ cflb_ n] s'g} km]/jbn÷;+zf]wg÷kl/dfh{g ug{ jf ldnfpg s'g} ;'emfj jf lgb]{zg lbPdf ;f]xL dxfzo,
cg'¿k cfjZos ;dfof]]hg ug{ a}+ssf] ;+rfns ;ldltnfO{ clVtof/L k|bfg ug]{ .
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-u_ ljljw .
=n] To; a}+ssf] ;+:yfks÷;j{;fwf/0f z]o/wgLsf] x}l;otn] ldlt @)&^ ;fn k'if dlxgf @% ut] zqmaf/sf lbg x'g] afx|f} jflif{s
cf1fn],
;fwf/0f ;efdf d÷xfdL :jod\ pkl:yt eO{ 5nkmn tyf lg0f{odf ;xefuL x'g g;Sg] ePsf] x'gfn] pQm ;efdf d]/f]÷ xfd|f] tkm{af6
;Gtf]if a/fn efu lng tyf dtbfg ug{sf nflu==============================================lhNnf ===========================================================d=g=kf=÷p=d=g=kf÷g=kf=÷ufpmFkflnsf j8f g+=====================a:g]
sDkgL ;lrj >L=========================================================================================== nfO{ d]/f]÷xfd|f] k|ltlglw lgo'Qm u/L k7fPsf] 5'÷5f} .
k|ltlglwsf] lgj]bssf]
b:tvt M b:tvt M
;fwf/0f;ef ;DaGwL ;fdfGo hfgsf/Lx¿ M
gfd M gfd M
!= ldlt @)&^ ;fn kf}if !$ ut]sf lbg Ps lbg a}+ssf] z]o/ bflvn vf/]h btf{ aGb (Book close) /xg] 5 . g]kfn :6s PS:r]h
7]ufgf M 7]ufgf M
lnld6]8df ldlt @)&^ kf}if !# ut] ;Dd sf/f]af/ eO{ lgodfg';f/ z]o/ gfd;f/L eO{ sfod z]owgLx?n] dfq
;fw/0f ;efdf efu lng kfpg]5g\ . z]o/wgL g+= M z]o/wgL g+= M
@= ;ef x'g] lbg ;efdf pkl:yltsf nflu xflh/ k'l:tsf laxfg )(M#) ah] b]lv lbpF;f] !M)) ah] ;Dd v'Nnf lxtu|fxL vftf g+= M lxtu|fxL vftf g+= M
/xg] 5 . xflh/L hgfpg] Aoa:yf ul/Psf] x'+bf z]o/wgL dxfg'efjn] ckm\gf] kl/ro kq tyf z]o/ k|df0fkq jf ldlt M z]o/ ;+Vof M
lxtu|fxL vftfsf] ljj/0f (Demat Statement) clgjfo{ ¿kdf k|:t't ug'{ x'g cg'/f]w 5 .
#= k|ltlglw-k|f]S;L_ lgo'Qm ug{ rfxg] z]o/wgLx¿n] k|ltlglw–kq -k|f]S;L kmf/fd_ e/L k|ltlglw lgo'Qm u/L a}+ssf]
s]Gb|Lo sfof{no, sdnkf]v/Ldf ;ef z'¿ x'g' eGbf slDtdf &@ 306f cufl8 btf{ u/L ;Sg' kg]{5 .
$= æd}n] o; cl3 lbPsf] ;a} k|ltlglw–kq -k|f]S;L_ ab/ u/L of] k|ltlglw -k|f]S;L_ nfO{ dfGotf lbO{of];\Æ egL 5'§}
kq n]vL k7fPsf] cj:yfdf cGo ;a} k|ltlglwx¿ -k|f]S;L_ ab/ eO{ ;f]xL kq;fy k|fKt k|ltlglw–kq -k|f]S;L_ a}+ssf] 5fk sDkgL ;lrjsf] b:tvt
nfO{dfq dfGo x'g]5 . Ps} z]o/wgLn] Ps eGbf a9L JolQmnfO{ s'g} lsl;daf6 laefhg u/L jf gu/L k|ltlglw
-k|f]S;L_ lgo'Qm u/]sf] ;Ssn b:tvt ePdf To:tf] ;a} k|ltlglw -k|f]S;L_ ab/ x'g]5 . b|i6Jo M of] k|f]S;L kmf/fd ;fwf/0f ;ef x'g' eGbf &@ 306f cufj} a}+ssf] s]Gb|Lo sfof{no, sdnkf]v/L, sf7df8f}+df btf{ u/L;Sg'
%= ;efdf efu lng k|ltlglw -k|f]S;L_ lgo'Qm ul/;s]kl5 ;DalGwt z]o/wgL :jo++ ;efdf pkl:yt x'g cfPdf kg]{5 .
z]o/wgLn] ul/ lbPsf] k|ltlglw -k|f]S;L_ :jtM ab/ x'g]5 .
^= s'g} ;+ul7t ;+:yf jf sDkgLn] z]o/ vl/b u/]sf] xsdf To:tf ;+ul7t ;+:yf jf sDkgLn] dgf]lgt u/]sf]
k|ltlglwn] z]o/jfnfsf] x}l;otn] ;efdf efu lng ;Sg' x'g]5 .
&= 5nkmnsf laifo ;"rL dWo] ljljw zLif{s cGtu{t 5nkmn ug{ O{R5's z]o/wgLn] ;ef x'g' eGbf & -;ft_ lbg
cufj} 5nkmnsf] laifo sDkgL ;lrj dfkm{t ;+rfns ;ldltsf] cWoIfnfO{ lnlvt ¿kdf hfgsf/L lbg' kg]{5 .
*= ;fwf/0f;ef ;DjGwL yk hfgsf/L tyf a}+ssf] cfly{s aflif{s ljj/0fnflu a}+ssf] s]Gb|Lo sfof{no, sdnkf]v/L jf
o; a}+ssf] z]o/ /lhi6«f/sf] sfo{ ug]{ l;len Soflk6n dfs]{6\; ln=df ;Dks{ /fVg' x'g cg'/f]w 5 . ;fy} a}+ssf] k|j]z –kq ldltM @)&^÷)(÷@%
j]a;fO6 www.primebank.com.np df ;d]t x]g{ / 8fpgnf]8 ug{ ;lsg]5 .
z]o/wgLsf] gfd M =============================================================================================================================

z]o/ ;+Vof M ==========================================================================================================================
lxtu|fxL vftf g+=M =============================================================
z]o/wgL g+============================================
afx|f}+ jflif{s ;fwf/0f ;efdf pkl:yt x'g hf/L ul/Psf] k|j]z–kq .
z]o/wgLsf] b:tvt sDkgL ;lrasf] b:tvt
b|i6Jo M pNn]lvt kmf/fd z]o/wgL cfkm}n] eg'{xf]nf . ;efsIfdf k|j]z ug{ of] k|j]z kq k|:t't ug{ clgjfo{ 5 .
2 12th Annual Report 075/076 12th Annual Report 075/076 3

afx|f}+ jflif{s ;fwf/0f ;efdf k|:t''t ;+rfns
;ldltsf] cWoIfsf] cf=j= @)&%÷&^sf] k|ltj]bg
cfb/0fLo z]o/wgL dxfg''efjx?,
o; k|fOd sdl;{on a}+s lnld6]8sf] afx|f}+ jflif{s ;fwf/0f ;efdf pkl:yt ;Dk""0f{ z]o/wgL Pj+ cltly dxfg''efjx?nfO{
a}+ssf] ;+rfns ;ldltsf] tkm{af6 d xflb{s :jfut tyf clejfbg ug{ rfxG5'' . a}+lsË ;]jf dfkm{t d''n'ssf] cy{tGqsf]
lbuf] ljsf; Pj+ cfd hgtfsf] hLjg :t/ dfly psf:gsf nflu ;sf/fTds of]ubfg k""¥ofpg] p2]Zosf ;fy sl/j
afx| jif{ cuf8L @!cf}+ jfl0fHo a}+ssf] ?kdf :yfkgf ePsf] o; a}+sn] z]o/wgL, u|fxsju{, lgodg lgsfo Pj+ cGo
z''e]R5''sx?sf] lg/Gt/ ;xof]u Pj+ ;b\efjaf6 Ps pTs[i6 jfl0fHo a}+ssf] ?kdf cfkm""nfO{ :yflkt ug{ a}+s ;kmn ePsf]
5 . oxfFx?sf] cd""No ;Nnfx, ;''emfj Pj+ xf};nf cfpFbf] lbgx?df ;d]t lg/Gt/ ?kdf kfO/xg] ljZjf; JoQm ub{5' .
laut s]lx jif{af6 d''n'ssf] cfly{s a[l4b/df pT;fxhgs a[l4 eO{ ljleGg If]qx?df nufgLdf ;d]t a[l4 ePtf klg
a}+lsË If]qn] t/ntfsf] r/d cefjsf] ;fdgf ug''{k¥of] . o;n] ubf{ a}+lsË If]qn] shf{sf] dfu cg'';f/ nufgL ug{ g;s]sf]
sf/0fn] ;du| a}+lsË If]qsf] lgIf]k Pj+ shf{sf] a[l4b/df s]xL ;+s'rg cfPsf] cj:yf 5 . ;du| a}+lsË If]qsf] a[l4b/df
cfPsf] ;+s'rgsf sf/0fn] tyf k|flKt kZrft Joj;fo a[l4 ug]{ a}+ssf] /0fgLlt cg'';f/ ;ldIff jif{df a}+sn] shf{ nufgL
tyf lgIf]k ;+sngdf ;+oldt 9+un] a[l4 u/]tf klg cGo u}x| sf]ifdf cfwfl/t ls|ofsnfkx?nfO{ a}+sn] cfgf] cfDbfgLsf]
d''Vo ;|f]tsf] ?kdf ljsl;t ug]{ gLlt cjnDag u/]sf]n] oL ls|ofsnfkx?af6 ;du| a}+ssf] d''gfkmfdf a[l4 x''g'sf ;fy}
z]o/wgLx?sf] ck]Iff cg'';f/ nfef+; ljt/0fdf ;d]tdf ;sf/fTds of]ubfg k''u]sf] 5 .
cfly{s jif{ @)&%÷&^ df a}+sn] ut jif{sf] lgIf]k eGbf ^=)( k|ltztn] a[l4 u/L s''n ? *^ ca{ @% s/f]8 lgIf]k ;+sng
ug{ a}+s ;kmn ePsf] 5 . ;fy} shf{ k|jfxdf ;d]t ut jif{ eGbf &=@! k|ltztn] a[l4 u/L s''n ? &^ ca{ @( s/f]8
shf{ k|jfx u/]sf] 5 . a}+sn] ;+rfng d''gfkmfdf ;d]t ut jif{ eGbf @(=*# k|ltztn] a[l4 u/L s''n ? # ca{ !$ s/f]8
;+rfng d''gfkmf cfh{g u/]sf] 5 . ;fy} a}+sn] ;ldIff cjlwdf ut jif{ eGbf @&=#& k|ltztn] v''b d''gfkmf a[l4 u/L ? @
ca{ !( s/f]8 cfh{g u/]sf] 5 . a}+sn] cf=j= @)&%÷&^ df cfh{g u/]sf] v''b d''gfkmfaf6 !^ k|ltzt af]gz z]o/ -? !
ca{ %$ s/f]8 (* nfv (^ xhf/ @ ;o &@_ nfef+; ljt/0f ug]{ k|:tfj ;d]t o; ul/dfdo ;efdf k]z ug{ rfxG5'' .
g]kfn ;/sf/n] cf=j= @)&^÷&& sf] ah]6 dfkm{t a}+s tyf ljQLo ;+:yfx?sf] dh{/nfO{ k|f]T;flxt ub}{ hfg] gLlt th''{df
ug''{sf ;fy} >L g]kfn /fi6« a}+sn] a}+s tyf ljQLo ;+:yfx? aLrsf] dh{/÷k|flKtnfO{ k|f]T;flxt ug]{ gLltnfO{ ;d]t b[li6ut
u/L o; a}+sn] ljleGg a}+s tyf ljQLo ;+:yfx?nfO{ dh{/÷k|flKt ug]{ /0fgLlt cGtu{t >L s}nfz ljsf; a}+snfO{ k|flKt ug]{
;DaGwdf ldlt @)&^÷)(÷)# df clGtd ;Demf}tf eO{ o; ;efaf6 cg''df]bg ug]{ k|:tfj k]z u/]sf 5f}+ . >L s}nfz ljsf;
a}+snfO{ k|flKt u/L ldlt @)&^÷!)÷!( leq Plss[t sf/f]jf/ ug]{ nIo lnOPsf] o; ;efnfO{ hfgsf/L u/fpg rfxG5'' .
o; k|flKt kZrft a}+ssf] r''Qmf kF"hL sl/j ? !$ ca{ Pj+ k|fylds k""FhL sf]if ? !& ca{ ^) s/f]8 k''Ug]5 / ;fy} a}+ssf]
s''n zfvf ;+Vof !(( k''Ug]5 . k|b]z g+ $ sf k|ltli7t Joj;foLx?åf/f k|jå{g ul/Psf] s}nfz ljsf; a}+ssf] sf7df8f}+
pkTosf nufot k|b]z g+ $ df /fd|f] zfvf ;+hfn ;lxt cToGt alnof] pkl:ylt /x]sf] sf/0fn] k|flKt kZrft a}+ssf]
Joj;fo a[l4df 7""nf] of]ubfg k""Ug hfg] xfdLn] ljZjf; lnPsf 5f}+ . o; ;+:yf k|flKt kZrft a}+ssf] ;du| Joj;fosf]
cfsf/ a[l4 eO{ eljiodf a}+ssf z]o/wgLx?nfO{ cfsif{s k|ltkmn k|bfg ug{ a}+s ;Ifd x''g] xfdLn] ljZjf; lnPsf 5f}+ .
rfn'' cf=j=sf] klxnf] q}df;df a}+lsË If]qdf b]lvPsf] t/ntfsf] ;d:ofsf] sf/0fn] lgIf]k ;+sng / shf{ k|jfxdf ;+oldt
9+un] a[l4 ul/Ptf klg a}+ssf] ;du| ljQLo cj:yf cToGt ;Gt''lnt / ;Gtf]ifhgs /x]sf] 5 . a}+sn] rfn'' cf=j=sf] klxnf]
q}df;sf] cGTo ;Dddf s''n ? ** ca{ ( s/f]8 lgIf]k ;+sng u/L ? *@ ca{ ** s/f]8 shf{ k|jfx u/]sf] 5 . a}+sn]
;f]lx cjlwdf ut jif{ eGbf !#=#* k|ltztn] v''b d''gfkmf a[l4 u/L ? ^% s/f]8 (& nfv v''b d''gfkmf cfh{g u/]sf] 5
. rfn'' cf=j=df a}+sn] s}nfz ljsf; a}+s;Fu ;+o'Qm sf/f]jf/ k|f/De ul/;Sg] / ;f] kZrft a}+ssf] zfvf ;+hfndf ;d]t
a[l4 x''g uO{ a}+ssf] ;du| Joj;fo gofF prfO{df k''Ug] xfdLn] ljZjf; lnPsf 5f}+ .
cGTodf,
o; a}Fssf] k|ultdf k|ToIf Pj+ k/f]If ?kn] ;xof]u k'¥ofpg' x'g] ;Dk"0f{ z]o/wgL dxfg'efjx?, u|fxsju{, g]kfn /fi6« a}+s,
lwtf]kq af]8{, g]kfn :6s PS;r]Gh, l;l8P; P08 SnLol/ª ln=, g]kfn ;/sf/sf ;DalGwt lgofdg lgsfox? Pj+ cGo
;/f]sf/jfnfx?nfO{ o; cj;/df xflb{s wGojfb 1fkg ug{ rfxG5' . a}+ssf] pGglt / k|ultdf lg/Gt/ nugzLntfsf k|fOd sdl;{on a}+s lnld6]8sf]
;fy of]ubfg k'¥ofpg] a}+s Joj:yfkg tyf sd{rf/Lx?nfO{ ljz]if wGojfb lbg rfxG5' . ;fy} a}+ssf] x/]s ultljlwx?nfO{ afx|f} aflif{s ;fwf/0f ;efdf
;sf/fTds 9+un] cfd hg;d'bfo ;dIf ;Dk|]if0f ul/lbg] ;+rf/ hut nufot cGo ;Dk"0f{ z'e]R5'sx? k|lt xflb{s cfef/ ;+rfns ;ldltaf6 k|:t't cf=j= @)&%÷&^ sf] k|ltj]bg
k|s6 ub{5' . cfb/0fLo z]o/wgL dxfg'efjx?,
o; k|fOd sdl;{on a}+s lnld6]8sf] afx|f} jflif{s ;fwf/0f ;efdf kfNg' ePsf ;Dk"0f{ z]o/wgL Pj+ cltly dxfg'efjx?df o; a}+ssf]
;+rfns ;ldlt xflb{s :jfut tyf clejfbg ub{5 . cfly{s aif{ @)&%÷&^ df a}+sn] xfl;n u/]sf] pknlAwx?, a}+s ;+rfngdf
b]lvPsf r'gf}ltx? Pj+ eljiodf a}+sn] clVtof/ ug]{ /0fgLlt Pj+ bL3{sflng of]hgfx?sf] af/]df o; k|ltj]bgdf ;+lIfKt ?kdf
wGojfb . k|:t't ul/Psf] 5 .
-!_ cfly{s aif{ @)&%÷&^ df a}+ssf] s/f]af/sf] l;+xfjnf]sg
cfly{s aif{ @)&$ b]lv d'n's nuftf/ pRr cfly{s j[l4sf] dfu{df cufl8 a9]sf] 5 . d'b|fl:kmlt lgoGq0fdf /x]sf] 5 eg] ljQLo
kx'Fr lj:tf/ pT;fxk|b /x]sf] 5 . afXo If]q Joj:yfkgdf eg] s]xL bafa pTkGg ePsf] 5 . cGt/f{li6«o Jofkf/df pTkGg
/fh]Gb| bf; >]i7 tgfj, o"/f]lkog o"lgogaf6 j]nfot cnu x'g] k|lqmofdf b]lvPsf] ljnDa tyf rLgsf] cy{tGq lj:tf/df cfPsf] ;+s'rgsf
cWoIf sf/0f ljZj cy{tGqsf] lj:tf/ sdhf]/ /xg] b]lvG5 .
;+rfns ;ldlt, ljut s]lx aif{otf ljQLo ahf/ :yfloTjtkm{ pGd'v ePsf] 5 . lgIf]ksf] Aofhb/ l:y/ /x]sf] 5 eg] shf{sf] Aofhb/df s]xL
k|fOd sdl;{on a}+s lnld6]8 sdL cfPsf] 5 . a}lsË If]qaf6 yk C0fkq lgisfzg ePsf sf/0f lwtf]kq ahf/df pks/0fut ljljwLs/0f k|f/De ePsf] 5 .
;du| z]o/ ahf/ ultljlw ;fdfGo /x]sf] cj:yf 5 . cfly{s aif{ @)&%÷&^ df s"n ufx{:Yo pTkfbg j[l4, s[lif pTkfbgdf
ldltM @)&^÷)(÷@% j[l4, phf{ cfk"lt{df ;xhtf, lgdf{0f sfo{df ltj|tf, cf}Bf]lus pTkfbg lj:tf/ tyf ko{6s cfudg a9]sf sf/0f cfly{s j[l4
pRr /x]sf] 5 . pRr cfly{s j[l4 b/, Go"g d'b|fl:kmlt / zf]wgfGt/ artsf] l:yltn] cy{tGqdf gofF cfzfsf] ;+rf/ hufPsf]
5 . cg's"n df};d, ko{6s cfudgdf j[l4 tyf ;du| cfk"lt{ Joj:yfdf cfPsf] ;'wf/sf sf/0f cy{tGq ;sf/fTds lbzfdf
cufl8 a9]sf] 5 . b]zsf] cy{tGqsf] k|ult ;Fu} o; a}+sn] klg ;dLIff aif{df ;Gtf]ifhgs k|ult b]vfPsf] 5 .
g]kfn /fi6« a}+ssf] lgb]{zg cg'?k o; a}+sn] r'Qmf kF"hL a9fpg] s|ddf a}+sn] cfly{s aif{ @)&#÷@)&$ df b'O{ ljsf; a}+sx?
k|flKt u/]sf] lyof] . a}+snfO{ cem} dha't agfpg] p2]Zon] cfgf] /0flglt cg'?k rfn' cfly{s aif{df >L sGsfO{ lasf; a}+snfO{
k|flKt ul/Psf] / >L s}nfz lasf; a}+s lnld6]8nfO{ k|flKt ug{ clGtd ;Dem}tfdf x:tfIf/ klg e};s]sf] 5 .
o; cfly{s aif{df a}+sn] cfgf] k|flKt dfkm{t zfvf ;+hfn / u|fxscfwf/ lj:tf/ ub}{, ;]jfu|fxLx?nfO{ yk k|efjsf/L a}+lsË
;]jf ;'ljwf k|bfg u/L gofF sfo{If]qdf Joj;fo tyf nufgLsf] a[l4sf ;fy} z]o/wgLx?nfO{ k|efjsf/L k|ltkmn lbg ;kmn
ePsf] 5 . o; a}+ssf] sf7df08f}+ pkTosf leq @$ tyf pkTosf aflx/ &# u/L hDdf (& j6f zfvf sfof{no tyf %$ j6f
Pl6Pd k'u]sf 5g\ .
cfly{s aif{ @)&%÷&^ sf] klxnf] qodf;kl5 t/ntfdf ptf/ r9fjsf] l:ylt /x]tfklg klg rf}yf] qodf;;Dd cfO{k'Ubf t/ntfsf]
l:ylt ;fdfGo /Xof] . cfly{s aif{ @)&%÷&^ df o; a}+sn] lgIf]k ;+sng, shf{ k|jfx Pj+ v'b d'gfkmf cfh{gdf ;Gtf]ifhgs
k|ult /x]sf] 5 .
cfly{s aif{ @)&%÷&^sf] ljQLo ljj/0f tof/ kbf{ Nepal Financial Reporting Standards (NFRS) sf] dfkb08 cg'?k ljQLo
ljj/0fx? k|:t't ul/Psf] 5 . ut aif{sf] ljQLo l:ytLsf] cfwf/df t'ngfTds k|ult ljj/0f o; k|sf/ /x]sf] 5 .
t'ngfTds k|ult ljj/0f

ljj/0f cf=a= @)&%÷&^ cf=a= @)&$÷&% a9L÷ -36L_ k|ltzt
r'Qmf k"FhL* 9,318,626,700 8,033,298,870 1,285,327,830 16.00%
s"n ;DklQ 102,255,829,620 95,043,979,017 7,211,850,603 7.59%
s"n lgIf]k 86,257,837,697 81,304,476,188 4,953,361,509 6.09%
s"n shf{ 76,298,394,587 71,167,704,930 5,130,689,657 7.21%
s"n nufgL 10,142,156,518 8,428,082,790 1,714,073,728 20.34%
v'b Jofh cfDbfgL 3,584,607,187 2,665,915,437 918,691,750 34.46%
sd{rf/L vr{ 888,335,061 631,648,386 256,686,675 40.64%
cGo ;+rfng vr{ 431,863,178 343,665,641 88,197,537 25.66%
s"n ;+rfng vr{ 1,320,198,239 975,314,027 344,884,212 35.36%
;+rfng d'gfkmf 3,149,515,709 2,425,837,108 723,678,601 29.83%
v'b gfkmf÷-gf]S;fg_ 2,198,792,243 1,726,246,109 472,546,134 27.37%

*k|:tfljt af]gz z]o/ afx]s -sGsfO{ lasf; a}+s lnld6]8sf] k|flKt kZrft sfod /x]sf] z]o/ ;+Vof (^,*^*,%!& df !^ k|ltzt af]gz z]o/ k|:tfljt ul/Psf] . _

-s_ lgIf]k ;+sng -@_ /fli6«o÷cGt/f{li6«o cy{tGq
o; a}+sn] ut cfly{s aif{sf] eGbf ?= $ ca{ (% -s_ ljZj cy{tGq
s/f]8n] a[l4 u/L cf= a= @)&%÷&^ df s"n lgIf]k kl5Nnf] ;do ljZj cy{tGqsf] j[l4b/df ;':ttf cfPsf] 5 . ;g\ @)!* df #=^ k|ltzt /x]sf] ljZj cy{tGqsf] j[l4b/
?= *^ ca{ @^ s/f]8 ;+sng u/]sf] 5 . g]kfn ;g\ @)!( df #=) k|ltzt / @)@) df #=$ k|ltzt /xg] cGt/f{li6«o d'b|f sf]ifsf] k|If]k0f 5 . ;g\ @)!* df @=# k|ltztn]
/fi6« a}Fsn] tf]s] adf]lhd CCD ratio ;hu ?kdf j[l4 ePsf] ljsl;t cy{tGq ;g\ @)!( / ;g\ @)@) df !=& k|ltztn] j[l4 x'g] sf]ifsf] k|If]k0f 5 . o;}u/L, pbLodfg
kfngf ug]{ s|ddf a}+sn] ljleGg pRrtd Jofh b/sf tyf ljsf;zLn cy{tGq ;g\ @)!* df $=% k|ltztn] j[l4 ePsf]df ;g\ @)!( df #=( k|ltztn] / ;g\ @)@) df $=^
lgIf]k of]hgfx? ;+rfngdf lg/Gt/tf lbPsf]n] cf};t k|ltztn] j[l4 x'g] sf]ifsf] k|If]k0f 5 . rLg / ef/tsf] cfly{s j[l4b/ ;g\ @)!* df qmdzM ^=^ k|ltzt / ^=* k|ltzt
Jofhb/ cl3Nnf] cf=j= s} xf/fxf/Ldf /xg k'u]sf] 5 . /x]sf]df ;g\ @)!( df b'a} cy{tGqsf] j[l4b/ ^=! k|ltzt /xg] sf]ifsf] k|If]k0f 5 . o;}u/L, ;g\ @)@) df rLgsf] j[l4b/
;fy} ;+:yfut Pj+ 7"nf lgIf]ksf] c+znfO{ ;Ldfdf /fvL %=* k|ltzt / ef/tsf] &=) k|ltzt /xg]sf]ifsf] k|If]k0f 5 . ljsl;t / pbLodfg tyf ljsf;zLn d'n'sx?sf] d'b|fl:kmlt
qmlds ?kn] ;fgf lgIf]kstf{x?nfO{ k|f]T;fxg ub}{ o; ;g\ @)!* df qmdzM @=) k|ltzt / $=* k|ltzt /x]sf]df ;g\ @)!( df qmdzM !=% k|ltzt / $=& k|ltzt /xg] sf]ifsf]
a}+sn] ljleGg lgIf]ksf of]hgfx? NofPsf] 5 . laut k|If]k0f 5 . ;g\ @)@) df eg] oL d'n'sx?sf] d'b|fl:kmlt qmdzM !=* k|ltzt / $=* k|ltzt /xg] sf]ifsf] k|If]k0f 5 .
kfFr aif{sf] lgIf]k ;+sng o; k|sf/ /x]sf] 5 . -;|f]tMcfly{s aif{ @)&^÷&& sf] df}lb|s gLlt_
-v_ shf{ k|jfx -v_ /fli6«o cy{tGq
ut aif{sf] t'ngfdf o; cfly{s aif{df a}+sn] shf{ cfly{s aif{ @)&%÷&^ df s"n ufx{:Yo pTkfbg j[l4b/ &=! k|ltzt /x]sf] s]Gb|Lo tYof° ljefusf] cg'dfg 5 . s[lif If]qsf]
k|jfxdf &=@! k|ltztn] a[l4 ub}{ ?= &^ ca{ #) j[l4 %=) k|ltzt, pBf]u If]qsf] *=@ k|ltzt tyf ;]jf If]qsf] j[l4 &=# k|ltzt /x]sf] cg'dfg 5 . cfly{s aif{ @)&%÷&^
s/f]8 k|jfx u/]sf] 5 . d'n'sn] pRr k|fyldstfsf df s"n ufx{:Yo pTkfbgdf s[lif, pBf]u / ;]jf If]qsf] c+z qmdzM @&=) k|ltzt, !%=@ k|ltzt / %&=* k|ltzt /x]sf] 5 .
;fy dxTj lbOPsf] s[lif If]qdf Jofa;flos s[lif cfly{s aif{ @)&%÷&^ df s"n ufx{:Yo art s"n ufx{:Yo pTkfbgsf] @)=% k|ltzt k'u]sf] 5 . s"n k"“hL lgdf{0f, s"n l:y/
v]tL, kz'kfng tyf dT:okfngdf nufgL a9fpg] gLlt k'FhL lgdf{0f / s"n /fli6«o artsf] s"n ufx{:Yo pTkfbg;Fusf] cg'kft qmdzM ^@=# k|ltzt, #^=( k|ltzt / %@=$ k|ltzt
cjnDag u/L ;f]xL adf]lhd nufgLsf] k"jf{wf/ tof/ /x]sf] 5 . cfly{s aif{ @)&%÷&^ df s"n ko{6s cfudgdf @#=( k|ltztn] j[l4 eO{ ko{6s ;+Vof !@,#*,%*( k'u]sf] 5 .
ul//x]sf] 5 . k|fyfldstf k|fKt If]qdf g]kfn /fi6« d'b|fl:kmlt
a}+sn] tf]s] adf]lhd a}+sn] cfgf] nufgL la:tf/ ub}{ cfly{s aif{ @)&%÷&^ df jflif{s cf};t pkef]Qmf d'b|fl:kmlt $=^ k|ltzt /x]sf] 5 . cl3Nnf] cfly{s aif{df o:tf] d'b|fl:kmlt
cfPsf] 5 . a}Fsn] ljut kfFr aif{x?df k|jfx u/]sf] $=@ k|ltzt /x]sf] lyof] . cfly{s aif{ @)&%÷&^ df vfB tyf k]o kbfy{ ;d"xsf] jflif{s cf};t d'b|fl:kmlt #=! k|ltzt
shf{ lgDg adf]lhd /x]sf] 5 . /x]sf] 5 . cl3Nnf] cfly{s aif{df pQm ;d"xsf] d'b|fl:kmlt @=& k|ltzt /x]sf] lyof] . cfly{s aif{ @)&%÷&^ df u}/–vfB
-u_ ;+rfng / v'b d'gfkmf tyf ;]jf ;d"xsf] jflif{s cf};t d'b|fl:kmlt %=( k|ltzt /x]sf] 5 . cl3Nnf] cfly{s aif{df pQm ;d"xsf] d'b|fl:kmlt %=#
o; cfly{s aif{df ;sf/fTds nufgL of]Uo jftfj/0f ;Fu} o; a}+ssf] v'b Jofh cfDbfgLdf klg ;'wf/ cfPsf] 5 . o; k|ltzt /x]sf] lyof] . @)&^ c;f/df jflif{s laGb'ut pkef]Qmf d'b|fl:kmlt g]kfndf ^=) k|ltzt / ;g\ @)!( sf] h'nfO{df
cfly{s jif{df nufgLof]Uo t/tnfdf ;+s'rg cfP;+u} a}+sn] cGo u}/sf]ifdf cfwfl/t cfDbfgLdf hf]8 lbPsf] 5 . t;y{, ef/tdf #=!% k|ltzt /x]sf]5 . @)&^ c;f/df jflif{s laGb'ut yf]s d'b|fl:kmlt %=$ k|ltzt /x]sf] 5 . @)&% c;f/df
;6xL 36a9, sldzg / cGo ;+rfng cfDbfgLdf /fd|f] a[l4 ePsf]n] cf=j @)&%÷&^ df a}Fssf] ;+rfng Pj+ v'b d'gfkmfdf o:tf] d'b|fl:kmlt @=! k|ltzt /x]sf] lyof] .
pNn]Vo a[l4 ePsf] 5 . ut aif{ a}Fsn] ?= @ ca{ $# s/f]8 ;~rfng d'gfkmf cfh{g u/]sf]df o; cf=j= df ;+rfng d'gfkmf j}b]lzs Jofkf/
?= # ca{ !% s/f]8 cfh{g ug{ a}+s ;kmn ePsf] 5 . o;} u/L ut aif{ v'b d'gfkmf ?= ! cj{ &@ s/f]8 /x]sf]df o; cfly{s aif{ @)&%÷&^ df s"n j:t' lgof{t !(=$ k|ltztn] j[l4 eO{ ?=(& ca{ !! s/f]8 k'u]sf] 5 . cl3Nnf] aif{ o:tf]
cf=j= df v'b d'gfkmf ?= @ ca{ !( s/f]8 /x]sf] 5 h'g cl3Nnf] aif{sf] t'ngfdf @&=#& k|ltztn] al9 xf] . lgof{t !!=$ k|ltztn] j[l4 ePsf] lyof] . uGtJosf cfwf/df ef/ttkm{ #$=# k|ltzt / cGo d'n'stkm{ )=@ k|ltztn] lgof{t
j[l4 ePsf] 5 . rLgtkm{sf] lgof{tdf !#=% k|ltztn] sdL cfPsf] 5 . j:t'ut cfwf/df kfd cfon, kf]lni6/ ofg{, h'6sf
;fdfg, bfn, rfprfp nufotsf j:t'sf] lgof{t a9]sf] 5 eg] cn}+rL, tof/L kf]zfs, klZdgf, h'Qf tyf rKkn, 5fnf
nufotsf j:t'x?sf] lgof{t 36]sf] 5 . cfly{s aif{ @)&%÷&^ df s"n j:t' cfoft !#=( k|ltztn] a9]/ ?=!$!* ca{ %$
172.62 s/f]8 k'u]sf] 5 . cl3Nnf] aif{ o:tf] cfoft @%=* k|ltztn] a9]sf] lyof] . j:t' cfoft ul/g] d'n'ssf cfwf/df ef/taf6
147.92
ePsf] cfoft !@=* k|ltzt, rLgaf6 ePsf] cfoft @*=% k|ltzt / cGo d'n'saf6 ePsf] cfoft *=( k|ltztn] a9]sf] 5 .
j:t'ut cfwf/df k]6«f]lnod kbfy{, tof/L kf]zfs, ljB'tLo ;fdfg, cGo d]l;g/L kf6{k'hf{, Pd=P;= lan]6 nufotsf j:t'sf]
74.55
cfoft a9]sf] 5 eg] l;d]G6, oftfoftsf ;fwg tyf kf6{k'hf{, b"/;~rf/sf pks/0f tyf kf6{k'hf{, :jf:Yo pks/0f tyf
cf}hf/, Knfli6s bfgf nufotsf j:t'x?sf] cfoft 36]sf] 5 .
zf]wgfGt/ tyf ljk|]if0f cfk|jfx
cfly{s aif{ @)&%÷&^ df rfn' vftf ?= @^% ca{ #& s/f]8n] 3f6fdf /x]sf] 5 . cl3Nnf] aif{ o:tf] 3f6f ?= @$& ca{ %&
-3_ nfef+;÷af]g; z]o/ s/f]8 /x]sf] lyof] . cd]l/sL 8n/df cl3Nnf] aif{ @ ca{ #& s/f]8n] rfn' vftf 3f6fdf /x]sf]df ;dLIff aif{df @ ca{ #%
o; a}+sn] cfgf nufgLstf{x?nfO{ pRrtd k|ltkmn s/f]8n] 3f6fdf /x]sf] 5 . cfly{s aif{ @)&%÷&^ df zf]wgfGt/ l:ylt ?= ^& ca{ $) s/f]8n] 3f6fdf /x]sf] 5 . cl3Nnf]
k|bfg ug{ ljz]if k|fyldstf lbFb} cf=j= @)&%÷&^ aif{ zf]wgfGt/ l:ylt ?= (^ s/f]8n] artdf /x]sf] lyof] . cd]l/sL 8n/df zf]wgfGt/ l:ylt cl3Nnf] aif{ !! nfvn]
df g]kfn /fi6« a}+saf6 :jLs[t eP cg';f/ c;f/ 3f6fdf /x]sf]df ;dLIff aif{df %( s/f]8 !) nfvn] 3f6fdf /x]sf] 5 . cfly{s aif{ @)&%÷&^ sf] cfoftnfO{ cfwf/ dfGbf
d;fGtdf sfod /x]sf] o; a}+ssf] r'Qmf k"FhL a}lsË If]q;Fu /x]sf] ljb]zL ljlgdo ;l~rltn] *=( dlxgfsf] j:t' cfoft / &=* dlxgfsf] j:t' tyf ;]jf cfoft wfGg
?= (,#!*,^@^,&)).– / sGsfO{ lasf; a}+s k|flKt kof{Kt /xg] b]lvG5 . ;dLIff aif{df ljb]zL ljlgdo ;l~rltsf] s"n ufx{:Yo pTkfbg, s"n cfoft / lj:t[t d'b|fk|bfo;Fusf
kZrft yk r'Qmf k"“hL ?= #^*,@@%,))).– kl5 sfod cg'kftx¿ qmdzM #)=) k|ltzt, ^$=( k|ltzt / @(=) k|ltzt /x]sf 5g\ . @)&% c;f/ d;fGtdf oL cg'kftx¿ qmdzM
/x]sf] s"n k"“hL ?= (,^*^,*%!,&)) sf] !^ k|ltztn] #^=$ k|ltzt, &*=^ k|ltzt / #%=^ k|ltzt /x]sf lyP . cfly{s aif{ @)&%÷&^ df ljk|]if0f cfk|jfx !^=% k|ltztn] j[l4
?= !,%$(,*(^,@&@.– af]gz z]o/ ljt/0f ug]{ k|:tfj eO{ ?= *&( ca{ @& s/f]8 k'u]sf] 5 . cl3Nnf] aif{ ljk|]if0f cfk|jfx *=^ k|ltztn] a9]sf] lyof] . cd]l/sL 8n/df eg]
o; ;efdf :jLs[ltsf] nflu k]z ul/Psf] 5 . ljk|]if0f cfk|jfx &=* k|ltztn] j[l4 ePsf] 5 . cl3Nnf] aif{ o:tf] cfk|jfx !)=@ k|ltztn] a9]sf] lyof] .
cfos/ P]g @)%* sf] bkmf $& -s_ adf]lhd
dh{÷k|flKt kZrft uflePsf] cj:yfdf sfod /x]sf
z]o/wgLx?nfO{ b'O{ aif{ ;Dd nfef+z s/ gnfUg] k|fjwfg ePsf]n] s/ k|of]hgfy{ gub nfef+z k|:tfj ul/Psf] 5}g . k|flKt
kZrft\ z]o/ vl/b ug]{ z]o/wgLx?sf] xsdf eg] nfef+z s/ nfUg]5 o; k|of]hgsf] nfuL af]gz z]o/ lgisfzg ;dodf
nfef+z s/ ;+sngsf] Joj:yf ul/g]5 .

Aofhb/ -u_ dfgj ;+zfwg
@)&% c;f/df (!–lbg] 6«]h/L ljnsf] efl/t cf};t Aofhb/ #=&$ k|ltzt /x]sf]df @)&^ c;f/df $=(& k|ltzt sfod o; a}+ssf] æsd{rf/L Joj:yfkg tyf ;]jf ;'ljwf Æ ;ldltn] ;do ;fk]If sd{rf/Lsf] ;]jf ;'ljwfsf] k'g/fjnf]sg u/L cfjZos
ePsf] 5 . jfl0fHo a}+sx¿aLrsf] cGt/–a}+s sf/f]af/sf] efl/t cf};t Aofhb/ eg] @)&% c;f/sf] @=(^ k|ltztsf] t'ngfdf a[l4 ug]{ tyf sd{rf/Lx?sf] kf/bzL{ 9+un] :t/ a[l4 ug{sf ;fy} bIf hgzlQmsf] egf{, 5gf}6, lgo'lQm, kb:yfkgf, ;?jf, j[lQ
@)&^ c;f/df $=%@ k|ltzt /x]sf] 5 . jfl0fHo a}+sx?sf] cf};t cfwf/ b/ @)&% c;f/sf] !)=$& k|ltztsf] t'ngfdf ljsf;, sfo{;Dkfbg d"Nof°g, k'/:sf/ tyf ;hfosf nflu cfjZos gLlt tof/ kf/L k|efjsf/L 9Ën] sfof{Gjog ub}{ cfPsf]
@)&^ c;f/df (=%& k|ltzt sfod ePsf] 5 . @)&^ c;f/df jfl0fHo a}+sx?sf] lgIf]ksf] efl/t cf};t Aofhb/ ^=^) 5 . a}Fsn] cfgf] k|ultsf nflu /rgfTds e"ldsf v]Ng] sd{rf/Lsf] of]ubfgnfO{ pRr d"Nofª\sg ub}{ cfgf hgzlQmnfO{ yk
k|ltzt / shf{sf] efl/t cf};t Aofhb/ !@=!# k|ltzt /x]sf] 5 . @)&% c;f/df oL b/x? qmdzM ^=$( k|ltzt / bIftf k|bfg ug{ ;do ;fk]If cfjZos cfGtl/s, jfXo tyf cGt{/fli6«o tflnd k|bfg ub{} cfPsf] 5 . o;}qmddf a}+sn] o;
!@=$& k|ltzt /x]sf lyP . cfly{s aif{df cfgf sd{rf/Lx?nfO{ !*$ ljleGg tflnd, ;]ldgf/ tyf cGt/lqmof sfo{qmddf ;dfj]z u¥of] . ;fy} o; aif{ &@%
dh{/ / k|flKt hgf sd{rf/Lx? sfo{/t /x]sf]df $$% k'?if sd{rf/Lx? 5g\ eg] @*) hgf dlxnf sd{rf/Lx? /x]sf 5g\ .
ljQLo :yfloTj ;'b[9Ls/0f ug]{ p2]Zon] g]kfn /fi6« a}+sn] a}+s tyf ljQLo ;+:yf ufEg]÷ufleg] tyf k|flKt ;DaGwL k|lqmof -3_ ;+:yfut ;fdflhs pQ/bfloTj
z'? u/fP kZrft\ @)&^ c;f/ d;fGt;Dd s"n !&! j6f a}+s tyf ljQLo ;+:yfx? dh{/÷k|flKt k|lqmofdf ;fd]n eO{;s]sf g]kfn /fi6« a}+ssf] lgb]{zg g+ ^÷)&^ sf] a'+bf g+ M !^ cg';f/ k|To]s cfly{s aif{sf] v'b d'gfkmfaf6 ! k|ltzt /sd
5g\ . o;dWo] !@* j6f ;+:yfx?sf] Ohfht vf/]h x'g uO{ s"n $# ;+:yf sfod ePsf 5g\. ;+:yfut ;dflhs pQ/bfloTj k|fof]hgsf] nflu 5'6\ofpg' kg]{ Joj:yf /x] adf]lhd sf]if v8f ul/ cfufdL cfly{s aif{df
lgIf]k ;+sng tyf shf{ k|jfx kl/rfng ul/g] 5 . a}+sn] cfgf] ;+:yfut ;fdflhs pQ/bfloTj lgodfjnL cg'?k ljleGg sfo{s|dx? z'? ul//x]sf]
;dLIff aif{df a}+s tyf ljQLo ;+:yfx¿sf] lgIf]k !* k|ltztn] a9]sf] 5 . cl3Nnf] aif{ o:tf] lgIf]k !(=@ k|ltztn] a9]sf] 5 . o;} s|ddf cf= j= @)&%÷)&^ df a}+sn] cfgf] pQ/bfloTj jxg ub}{ @)&@ ;fn a}zfvdf uPsf] e'sDkn] Ifltu|:t
lyof] . @)&^ c;f/df a}+s tyf ljQLo ;+:yfx¿sf] s"n lgIf]kdf rNtL, art / d'2tLsf] c+z qmdzM (=& k|ltzt, #@=* uf]/vf lhNnf l:yt dgsfdgf dlGb/sf] lh0ff{]4f/sf] nflu ? @% nfv cfly{s ;xof]u k|bfg u/]sf] 5 . a}sn] ;kmf tyf
k|ltzt / $^=# k|ltzt /x]sf] 5 . cl3Nnf] aif{ o:tf] c+z qmdzM (=# k|ltzt, #$=% k|ltzt / $$=* k|ltzt /x]sf] lyof] . :jR5 jftfj/0fsf] nflu z'4f]wg ufpFkflnsfnfO{ ? @ nfv $$ xhf/ * ;o a/fa/ sf] #)) j6f 8:6ljgx? x:tfgt/0f
@)&^ c;f/ d;fGtdf a}+s tyf ljQLo ;+:yfx?sf] s"n lgIf]kdf ;+:yfut lgIf]ksf] c+z $%=# k|ltzt /x]sf] 5 . @)&% ul/ ;xof]u u/]sf] 5 . o; a}+sn] :jf:Yo tyf lzIffnfO{ Wofg lbO{ sfe|] l:yt dª\un hgljhof SofDk;nfO{ 8]:sj]Gr
c;f/ d;fGtdf o:tf] lgIf]ksf] c+z $% k|ltzt /x]sf] lyof] . k|bfg ul/Psf] 5 . ;fy} ?kGb]xL l:yt Lumbini Eye Institute nfO{ ? !% nfv cfly{s ;xof]u ul/Psf] 5 .
;dLIff aif{df a}+s tyf ljQLo ;+:yfx?af6 lghL If]qdf k|jflxt shf{ !(=$ k|ltztn] a9]sf] 5 . cl3Nnf] aif{ o:tf] o;/L a}+sn] ljleGg ;+3, ;+:yf / ;xsf/L tyf u|}/ ;/sf/L ;+:yfx? ;Fu ldn]/ :jf:Yo, lzIff tyf hg;d'bfosf]
shf{ @@=% k|ltztn] a9]sf] lyof] . lghL If]qtk{m k|jflxt shf{dWo] jfl0fHo a}+sx?sf] shf{ k|jfx !&=% k|ltztn], ljsf; u'0f:t/ psf:gsf] nflu k|ToIf tyf ck|ToIf sfo{ ub}{ cfO/x]sf] 5 . To;} qmddf lh/L ufpFkflnsfdf ljQLo ;fIf/tf
a}+sx?sf] shf{ k|jfx #%=& k|ltztn] / ljQ sDkgLx?sf] shf{ k|jfx !&=( k|ltztn] a9]sf] 5 . @)&^ c;f/ d;fGtdf sfo{qmd ;~rfng u/]sf] 5 . sf:sL k|x/LnfO{ l;=l;=l6=le h8fgsf] nflu cfly{s ;xof]u k|bfg ul/Psf] 5 . a}+sn] af/f
a}+s tyf ljQLo ;+:yfx?sf] nufgLdf /lx/x]sf] shf{dWo] ^$=$ k|ltzt shf{ 3/ hUufsf] lwtf]df / !#=% k|ltzt shf{ k;f{ lhNnfdf ePsf xfjf x'/L kLl8tx?sf nflu cfly{s ;xof]u ljt/0f u/]sf] 5 . o:tf] lhDd]jf/L axg ub{} ;+:yfut
rfn' ;DklQ -s[lif tyf u}/–s[lifhGo j:t'_ sf] lwtf]df k|jfx ePsf] 5 . @)&% c;f/ d;fGtdf o:tf] lwtf]df k|jflxt ;fdflhs pQ/bfloTj cGt/ut o; a}+sn] ;dLIff jif{df hDdf ?= &%,&#,!)$.)) vr{ u/]sf] 5 .
shf{sf] cg'kft qmdzM ^!=& k|ltzt / !$=$ k|ltzt /x]sf] lyof] . -ª_ a}+ssf]] efjL of]hgf / /0fgLlt
t/ntf Joj:yfkg a}sn] pknAw lgIf]k tyf kF"hLnfO{ bL3{sflng of]hgf th'{df u/L artstf{ tyf ;Dk"0f{ ;/f]sf/jfnf kIfx?nfO{ lgodgsf/L
cfly{s aif{ @)&%÷&^ df v'nf ahf/ sf/f]af/sf ljleGg pks/0fx?dfk{mt\ k6s–k6s u/L s"n ?= !)) ca{ #% s/f]8 lgsfosf] gLlt lgod leq /lx ;/f]sf/jfnfx?nfO{ pRrtd k|ltkmn k|bfg ug]{ /0fgLlt a}+sn] cjnDag ub}{ cfPsf]df
t/ntf k|zf]rg ul/Psf] 5 . o; cg';f/ lgIf]k ;+sng af]nsaf]n dfkm{t\ ?= &( ca{ ^% s/f]8 / l/e;{ l/kf]dfk{mt\ ?= a}+sn] cfufdL aif{x?df ;d]t ;f] s|dnfO{ lg/Gt/tf lbg]5 . a}+sn] s]lx ;do cl3 sGsfO{ ljsf; a}+s k|flKt u/L ;+o'Qm
@) ca{ &) s/f]8 t/ntf k|zf]rg ePsf] 5 . cl3Nnf] aif{sf] ;f]xL cjlwdf ?= !(% ca{ t/ntf k|zf]rg ePsf] lyof] . sf/f]jf/ z''? ul/;s]sf] / lgs6 eljiodf g} s}nfz ljsf; a}+s ;d]t k|flKt u/L ;+o'Qm sf/f]jf/ z''? eP kZrft a}+ssf]
cfly{s aif{ @)&%÷&^ s"n ?= #@@ ca{ $( s/f]8 t/ntf k|jfx ePsf] 5 . o; cGt{ut l/kf]dfkm{t ?= !^* ca{ !^ s/f]8 zfvf ;+hfndf pNn]Vo a[lå x''g]5 . oL zfvf ;+hfnx?af6 a}+sn] ljleGg gjLgtd lgIf]k of]hgfx? th''{df u/L JolQmut
/ :yfoL t/ntf ;'ljwfdfkm{t ?= !%$ ca{ ## s/f]8 k|jfx ePsf] 5 . ;dLIff aif{df g]kfn /fi6« a}+sn] ljb]zL ljlgdo lgIf]k ;+sngdf ljz]if hf]8 lbOg]5 . ;fy} shf{ tkm{ ;fgf demf}+nf Pj+ s[lif shf{df k|fyldstfsf ;fy nufgL ul/g]5 .
ahf/ -jfl0fHo a}+sx?_ af6 cd]l/sL 8n/ # ca{ !( s/f]8 v'b vl/b u/L ?= #^) ca{ (! s/f]8 v'b t/ntf k|jfx a}+lsË If]qdf a9\b} uPsf] ;+rfng hf]lvd Go""lgs/0fsf nfuL ;DalGwt sd{rf/LnfO{ cfjZos tflnd k|bfg ug{'sf ;fy}
u/]sf] 5 . cl3Nnf] aif{ ljb]zL ljlgdo ahf/af6 cd]l/sL 8n/ $ ca{ % s/f]8 v'b vl/b u/L ?= $@@ ca{ #$ s/f]8 cfGtl/s lgoGq0f k|0ffnLnfO{ ;d]t r'':tb''?:t agfOg]5 . a}+sn] l8lh6n a}+lsËsf] dfWodaf6 ljleGg gjLgtd a}+lsË
v'b t/ntf k|jfx ul/Psf] lyof] . ;]jf lj:tf/ u/L cfgf] Jofkf/ Joj;fo a9fpg] tkm{ rfn'' cf=j= df ljif]z kxn ug]{5 .
-;|f]tM g]kfn /fi6« a}+s, b]zsf] jt{dfg cfly{s tyf ljQLo l:ylt_ a}+sn] cfgf] nufgL lj:tf/ u/L d'n'ssf] k"j{fwf/ ljsf;sf nflu dxTjk"0f{ of]ubfg ub{} cPsf] 5 / o;nfO{ cfufdL
-#_ ljljw jif{x?df klg hf]8 lbOg]5 . gjLs/0fLo phf{nfO{ ljif]z k|fyldstf lbb}, b]zsf] k"jf{wf/ ljsf; Pj+ cGo ljsf; lgdf{0f
sfo{nfO{ cj;/sf] ?kdf ;b'kof]u u/L nufgL lj:tf/ ub}{ hfg] gLlt a}+sn] cjnDag ug{]5 . lgIf]k / shf{ nufgLdf
-s_ cfGtl/s lgoGq0f / hf]lvd Joj:yfkg k|lt:kwL{ Aofh b/ sfod u/L cfgf u|fxsju{nfO{ u'0f:t/Lo tyf cfw'lgs a}+lsË ;]jf k|bfg ub}{ hfg] /0fgLlt a}+sn]
a}FlsË If]qdf s]lx ;doaf6 a9\b} uPsf] ;+rfng hf]lvdaf6 a}Fssf] ;du| hf]lvd Joj:yfkgdf yk r'gf}ltx? b]lvPsf lnPsf]] 5 . pknAw nufgL of]Uo k"FhLnfO{ ;DefAotf ePsf cf}Bf]lus\, Aofj;flos Pj+ ;]jf If]qdf nufgL ug]{ gLltnfO{
5g\ . o; a}Fsn] ;+rfng hf]lvd Go"gLs/0fsf nflu k|To]s sf/f]af/ If]qsf] gLlt, lgod / sfo{ljlw tof/ u/L k|efjsf/L lg/Gt/tf lbOg] 5 . shf{sf] u'0f:t/nfO{ sfod ug{ ;do ;dodf C0fLsf] Joj;fo, kl/of]hgf tyf lwtf]sf] :ynut
?kdf nfu" ub}{ cfpg] s|ddf IS Audit nfO{ lg/Gt/tf lbb}+ cfPsf] 5 . o;sf ;fy} ljleGg sf/f]af/sf] ;+rfngdf ;+nUg lg/LIf0f Pj+ cGo hf]lvd Go"gLs/0fsf pkfox? klxNofO{ pQm pkfox?sf] s8fO{sf;fy kl/kfngf u/fpg] sfo{nfO{
sd{rf/Lx?sf] sf/f]af/sf] k|s[lt cg';f/ clwsf/ k|Tofof]hg ul/Psf] 5 . ;+rfng hf]lvd Go"gLs/0fsf nflu steering lg/Gt/tf lbOg]5 . s[lif, phf{, ko{6g Pjd\ ;fgf tyf demf}nf pBf]udf shf{ k|jfx lj:tf/ u/L ljQLo ;fwgsf]
committee u7g u/L x]/s lbgsf] sf/f]af/nfO{ lgu/fgL ul/Psf] 5 . o:tf hf]lvd Go"gLs/0fsf nflu canDag ul/Psf pTkfbgzLn pkof]unfO{ k|f]T;fxg u/L /fi6« ljsf;df 6]jf k'¥ofpg] nIo adf]lhd shf{ k|jfx ug]{ ul/Psf] 5 / o;nfO{
pkfox?sf] ljifodf hf]lvd Joj:yfkg ;ldltdf 5nkmn u/L cfjZos gLltx? th'{df ug]{ ul/Psf] 5 . a}Fssf ;Dk"0f{ lg/Gt/tf lbOg]5 . ;fy}, ;]o/ ahf/ tyf l/on :6]6 If]qdf x'g] shf{ k|jfxnfO{ lg/Gt/ cg'udg ub}{ hf]lvd Go"gLs/0f
sfdsf/afxLx? k|rlnt sfg'g adf]lhd eP u/]sf] 5 5}g To;sf] olsg ug]{ p2]Zon] a}Fsdf Pp6f :jtGq cfGtl/s ug{ ;d]t a}+s ;hu /x]sf] 5 . g]kfn /fi6« a}+sn] k|bfg ub}{ cfPsf] ;x'lnot shf{ dfkm{t k"g{lgdf{0f k"g/shf{ lnO{ shf{
n]vfk/LIf0f ljefu u7g u/L To; ljefunfO{ u}/sfo{sf/L ;+rfnssf] ;+of]hsTjdf ul7t n]vfk/LIf0f ;ldlt dftxt pknAw u/fpg] sfo{ k|fyldstfsf ;fy ub}{ cfPsf] 5 .
/flvPsf] 5 . a}+sn] cfGtl/s lgoGq0f k|0ffnL dha't ug{ tyf hf]lvd Joj:yfkg k|0ffnL k|efjsf/L agfpg Risk based
Internal Audit sf] cjwf/0ffdf cfGtl/s n]vfk/LIf0f ljefuaf6 n]vfk/LIf0f ug]{ ul/Psf] 5 . laleGg hf]lvdx?af6
cGTodf,
aRgsf] nflu a}+sn] ;w} clu|d ;t{stf ckgfpb} cfPsf] 5 . o; a}+ssf] k|ultdf k|ToIf jf ck|ToIf ?kn] ;xof]u k'¥ofpg' x'g] ;Dk"0f{ z]o/wgL dxfg'efjx?, u|fxsju{, g]kfn /fi6«
a}+s, lwtf]kq af]8{, g]kfn :6s PS;r]Gh, g]kfn ;/sf/sf ;DalGwt lgodg lgsfox? Pj+ cGo ;/f]sf/jfnfx?nfO{
-v_ ;+:yfut ;'zf;g xflb{s wGojfb 1fkg ug{ rfxG5fF} . a}+ssf] pGglt / k|ultdf lg/Gt/ nugzLntfsf ;fy of]ubfg k'¥ofpg] a}+s
;+:yfsf] nIo k|flKt tyf bL3{sfnLg ;kmntfsf] nflu ;+:yfut ;'zf;g sfod/xg' k|fylds ;t{ ePsf]n] o;sf] Joj:yfkg tyf sd{rf/Lx?nfO{ ljz]if wGojfb lbg rfxG5f}F . ;fy} a}+ssf] x/]s ultlalwx?nfO{ ;sf/fTds 9+un] cfd
kl/kfngfdf a}+s ;b}j k|ltj4 /x]sf] 5 . ;+:yfut ;'zf;gsf] dfu{bz{s eg]sf] g]kfn /fi6« a}+s tyf cGo lgofds hg;d'bfo ;dIf ;Dk|]if0f ul/lbg] ;+rf/ hut nufot cGo ;Dk"0f{ z'e]R5'sx? k|lt xflb{s cfef/ k|s6 ub{5f}+ .
lgsfo af6 hf/L x'g] lgb]{zg tyf gLlt lgodx? ePsf]n] o:tf gLlt lgb]{zgx?nfO{ cIf/z kfngf ub}{ cl3 a9\g] gLlt
o; a}+sn] lnPsf] 5 . wGojfb .
a}+sdf ;+:yfut ;'zf;g sfod ul/ ;Dk"0f{ ;/f]sf/jfnf kIfx?sf] lxtnfO{ ;jf]{kl/ agfpg a}+ssf] b}lgs sfo{ ;~rfng
k|0ffnL lgolGqt Pj+ r':t b'?:t 9Ën] ;~rflnt x'g] jftfa/0f >[hgf ul/Psf] 5 . h;sf lgldQ Joj:yfkg tyf
;+rfns :t/sf cfGtl/s n]vfk/LIf0f, hf]lvd Joj:yfkg, dfgj ;+;fwg h:tf ljleGg ;ldltx? lgdf{0f u/L lgoldt
cg'udg tyf cfjZos lgb]{zg ug]{ ul/Psf] 5 .
ldltM @)&^÷)(÷@%

e'QmfgL u/]sf] /sd sfd sf/afxLsf] ljj/0f / ;f] ;ldltn] s'g} ;'emfj lbPsf]
– ;dLIff aif{df z]o/x¿sf] k"gM vl/b sfo{ gePsf] . eP ;f]sf] ljj/0f
-t_ cfGtl/s lgoGq0f k|0ffnL eP jf gePsf] / ePsf] eP ;f]sf] a}ssf] ;+rfns >L pbodf]xg >]i7sf] ;+of]hTjdf ul7t
lj:t[t ljj/0f n]vfk/LIf0f ;ldltdf ;+rfns >L k|r08dfg >]i7 / >L
– a+}sn] cfGtl/s lgoGq0f k|0ffnL r':t / dha'b agfpg uh]Gb| lai6 ;b:o tyf a}ssf cfGtl/s n]vfk/LIf0f
s_ ljut aif{sf] sf/f]af/sf] l;+xfjnf]sg z]o/sf] clª\st d"No, To:tf] z]o/ hkmt x'g'eGbf cufj} b]xfPsf] Joj:yf ul/Psf] 5 M ljefusf k|d'v >L ldng rGb| dxh{g ;lrj /xg'ePsf]
;+rfns ;ldltsf] jflif{s k|ltj]bgdf pNn]v ul/Psf] . ;f]afkt sDkgLn] k|fKt u/]sf] hDdf /sd / To:tf] z]o/ • cfGtl/s n]vfkl/If0f ljefusf] :jtGq sfd 5 . ;ldIff jif{df ;ldltsf] a}7s ;ft -&_ k6s a;]sf]
hkmt ePkl5 ;f] z]o/ laqmL u/L sDkgLn] k|fKt u/]sf] sf/jfxL 5 . n]vf k/LIf0f ;ldltsf ;lrjnfO{ afx]s ;+of]hs
v_ /fli6«o tyf cGt/fli6«o kl/l:yltaf6 sDkgLsf] sf/f]af/nfO{ / ;b:ox?nfO{ a}7s eQf jfkt k|lt a}7s ?= !!,)))
s'g} c;/ k/]sf] eP ;f] c;/ /sd tyf hkmt ePsf] z]o/afkt /sd lkmtf{ u/]sf] eP • n]vfkl/If0f ;ldltsf] lgoldt cg'udg
;f]sf] ljj/0f • hf]lvd Jooj:yfkg ;ldltsf] :jtGq sfd sf/jfxL k|bfg ul/Psf] 5 . To; ;ldltn] a}ssf] ljQLo l:ylt,
a}+ssf] sf/f]af/nfO{ b]xfPsf a'Fbfx?n] c;/ kf/]sf] 5 cfGtl/s lgoGq0f / hf]lvd Joj:yfkg, sfg"g /
• a}+lsË If]qdf ljBdfg a9\bf] k|lt:kwf{ . – s'g} klg z]o/ hkmt gePsf] . • ;~rfng hf]lvd Go"lgs/0fsf] nflu ljleGg
lgodx? kfngf, n]vfk/LIf0f sfo{qmd cflbaf/] lgoldt
• ljb]zL ljlgdo b/df x'g] hf]lvd . -`_ ljut cfly{s aif{df sDkgL / o;sf] ;xfos sDkgLsf] lgodfjnL tyf ljlgodfjnLsf] cIf/; kfngf
;dLIff ub}{ cfPsf] 5 . cfGtl/s ;fy} afXo n]vfk/LIf0f
• ax'd"No wft'sf] d"Nodf ptf/r9fa . sf/f]af/sf] k|ult / ;f] cfly{s aif{sf] cGtdf /x]sf] l:yltsf] ul/Psf]
k|ltj]bgdf plNnlvt s}lkmotx¿dfly lj:t[t 5nkmn u/L
-u_ k|ltj]bg tof/ ePsf] ldlt;Dd rfn" aif{sf] pknlAw / k'g/fjnf]sg -y_ ljut cfly{s aif{sf] s"n Joj:yfkg vr{sf] ljj/0f ;ldltn] cfjZos ;'wf/sf sfdx¿ ;d]t ub}]{ cfPsf]
eljiodf ug'{ kg]{ s'/fsf] ;DaGwdf ;+rfns ;ldltsf] wf/0ff a}+ssf] o; cf=j=sf] k|ult ljj/0f o;} k|ltj]bgdf aF'bfut zLif{s /sd ?= 5 . To;sf] lgoldt ¿kdf ;+rfns ;ldltnfO{ hfgsf/L
;+rfns ;ldltsf] aflif{s k|ltj]bgdf k|:t't ul/Psf] . ?kdf k|:t't ul/Psf] 5 / o; a}+ssf] ;xfos sDkgL sd{rf/L vr{ ***,##%,)^!.– u/fpg] ul/Psf] 5 .
xfn gePsf] . ;~rfng vr{ #%),($^,#%*.–
-3_ sDkgLsf] cf}Bf]lus jf Jofj;flos ;DaGw -w_ ;+rfns, k|aGw ;+rfns, sfo{sf/L k|d'v, sDkgLsf cfwf/
a}+sn] cfkm\gf ;a} ;/f]sf/jfnfx¿;Fu ;f}xfb|k"0f{ / -6_ sDkgL tyf To;sf] ;xfos sDkgLn] cfly{s aif{df ;DkGg x|f;sl§ vr{ *),(!^,*@).–
e"t z]o/wgL jf lghsf] glhssf gft]bf/ jf lgh ;+nUg
Jofj;flos ;DaGw lj:tf/ u/]sf] 5 . o; ;DaGwnfO{ u/]sf] k|d'v sf/f]af/x? / ;f] cjlwdf sDkgLsf] sf/f]af/df s"n !,#@),!(*,@#(.–
/x]sf] kmd{, sDkgL jf ;+u7Lt ;+:yfn] sDkgLnfO{ s'g} /sd
Jofj;flos tyf kf/blz{tfsf cfwf/df ljsl;t ub}{ cfPsf] s'g} dxTjk"0f{ kl/jt{g a'emfpg afFsL eP ;f] s'/f
– s'g} klg ;xfos sDkgL gePsf] . -b_ n]vfk/LIf0f ;ldltsf ;b:ox?sf] gfdfjnL, lghx?n]
n}hfg' kmnbfoL x'g] / a}+ssf] k|ultsfnflu pko'Qm dfWod k|fKt u/]sf] kfl/>lds, eQf tyf ;'ljwf, ;f] ;ldltn] u/]sf] – gePsf]
x'g] a}+ssf] ljZjf; 5 . -7_ ljut cfly{s aif{df sDkgLsf] cfwf/e"t z]o/wgLx?n]
sDkgLnfO{ pknAw u/fPsf] hfgsf/L
o; cf=a=df ;+rfns ;ldltdf ;+:yfks z]o/wgLsf – cfwf/e't z]o/wgLx?n] s'g} klg hfgsf/L pknJw
tkm{af6 ltghgf / ;a{;fwf/0f z]o/wgLsf tkm{af6 b'O{ gu/fPsf] . @,&#),)))
hgf ;+rfnssf] sfo{sfn ;dfKt ePsf] x'gfn] cl3Nnf] -8_ ljut cfly{s aif{df sDkgLsf ;+rfns tyf kbflwsf/Lx?n] ^,^!%,#^)
;fwf/0f ;efaf6 ;+:yfks ;d"xaf6 /fh]Gb|bf; >]i7, lnPsf] z]o/sf] :jfldTjsf] ljj/0f / sDkgLsf] z]o/
pbodf]xg >]i7 / g/]Gb| ah|frfo{ tyf ;j{;fwf/0f sf/f]af/df lghx? ;+nUg /x]sf] eP ;f];DaGwdf lghx?af6 *(%,@*)
;d"xaf6 k|r08dfg >]i7 / dgf]h kf}8]n lgjf{lrg x'g' sDkgLn] k|fKt u/]sf] hfgsf/L ^^!,%#^
ePsf] 5 . l;=g+= Gffd wf/0f u/]sf] kb z]o/ ;+Vof
-r_ sf/f]af/nfO{ c;/ kfg]{ d'Vo s'/fx¿, != /fh]Gb| bf; >]i7 ;+rfns÷cWoIf !*$,!*&
• cGt//fli6«o hutdf k|lt:kwf{Tds ?kdf cfPsf] @= pbo df]xg >]i7 ;+rfns $,&*,**(
ljleGg a+}lsË pks/0fx? / To;n] lgDTofpg] #= g/]Gb| ah|frfo{ ;+rfns &)&,@*$
$= Ufh]Gb| lji6 ;+rfns

*;+rfns ;ldltsf] ;b:ox?nfO{ 6]lnkmf]g÷ df]afO{n÷ kqklqsf tyf cGo vr{x? jfkt ?= !,$%*,@&(
%,%$*
hf]lvdx? vr{ ul/Psf] 5 .
• lgIf]k tyf shf{ nufgLsf] Jofhb/df x'g] kl/jt{g %= k|f]= 8f= d+unf >]i7 :jtGq ;+rfns –
 k|d'v sfo{sf/L clws[tnfO{ sfof{no k|of]hgsf] nflu rfns, OGwg / dd{t;+ef/ ;lxt uf8L ;'ljwfsf] Joj:yf ul/Psf]
• ljlgdob/df x'g] kl/jt{g ^= k|r08 dfg >]i7 ;+rfns !,)))
5 . cGo k|d'v kbflwsf/Lx?nfO{ a}+ssf] lgodfg';f/ uf8L ;'ljwf pknJw u/fOPsf] 5 .
• k"“hLahf/df cfpg ;Sg] ptf/ r9fa &= dgf]h kf}8]n ;+rfns !,)))

*= /~hLa P08 P;f]l;o6\; jfXo n]vf k/LIfs –
-5_ n]vfk/LIf0f k|ltj]bgdf s'g} s}lkmot pNn]v ePsf] eP ;f]
(= gf/fo0f bf; dfgGw/ k|d"v sfo{sf/L clws[t @!*,*@@
pk/ ;+rfns ;ldltsf] k|lts[of
;a} s}lkmotx?nfO{ oyflz3| ;'wf/ ul/;lsPsf cj:yf !)= ;+lhj dfgGw/ dxfk|jGws ##),$#$
– ?= #$,*(*,^$(÷–
/x]sf] 5 . !!= df]tLsfhL t'nfw/ gfoa dxfk|jGws %*,)%%
!@= efO/fhf t'nfw/ gfoa dxfk|jGws %*,)%%
cf=j= @)&%÷&^ sf] ljt/0f of]Uo d'gfkmfaf6 c;f/ -9_ ljut cfly{s aif{df sDkgL;Fu ;DalGwt ;Demf}tfx?df s'g}
d;fGtdf sfod /x]sf] o; a}+ssf] r'Qmf k"FhL ?= ;+rfns tyf lghsf] glhssf] gft]bf/sf] JolQmut :jfy{sf]
(,#!*,^@^,&)).– / sGsfO{ lasf; a}+s k|flKt kZrft yk af/]df pknAw u/fOPsf] hfgsf/Lsf] Joxf]/f
r'Qmf k"“hL ?= #^*,@@%,))).– kl5 sfod /x]sf] s"n k"hL – gePsf] .
?=(,^*^,*%!,&)) sf] !^ k|ltztn] ?= !,%$(,*(^,@&@.– -0f_ sDkgLn] cfkm\gf] z]o/ cfkm}n] vl/b u/]sf] eP To;/L
af]gz z]o/ cfgf] z]o/ vl/b ug'{sf] sf/0f, To:tf] z]o/sf] ;+Vof
-em_z]o/ hkmt ePsf] eP hkmt ePsf] z]o/ ;+Vof, To:tf] / clª\st d"No tyf To;/L z]o/vl/b u/]afkt sDkgLn]

lwtf]kq btf{ tyf lgisfzg lgodfjnL, @)&# sf]
-lgod @^ sf] pklgod -@_ ;Fu ;DalGwt _
cg';"rL – !%
!= ;+rfns ;ldltsf] k|ltj]bg v_ ;+ul7t ;+:yfsf] ;+:yfks jf ;+rfnsn] jf ;+:yfks
– jflif{s k|ltj]bgsf] ;DalGwt zLif{s cGtu{t /flvPsf] . jf ;+rfnssf] lj?4df k|rlnt lgodsf] cj1f jf
@= n]vfkl/Ifssf] k|ltj]bg kmf}Hbf/L ck/fw u/]sf] ;DaGwdf s'g} d'2f bfo/ u/]sf]
– jflif{s k|ltj]bgsf] ;DalGwt zLif{s cGtu{t /flvPsf] . jf ePsf] eP
#= n]vfkl/If0f ePsf] ljQLo ljj/0f – ;dLIff cjlwdf a}+ssf] ;+:yfks jf ;+rfnsn]

– jflif{s k|ltj]bgsf] ;DalGwt zLif{s cGtu{t /flvPsf] . jf ;+:yfks jf ;+rfnssf] lj?4df k|rlnt
lgodsf] cj1f jf kmf}Hbf/L ck/fw u/]sf]
$= sfg'gL sf/jfxL ;DaGwL ljj/0f ;DaGwdf s'g} d'2f bfo/ gePsf] .
– b]xfo cg';f/sf] d'2f bfo/ ePsf] eP, d'2f bfo/
ePsf] ldlt, ljifo, d'2f bfo/ ePsf] ;+:yfks jf u_ s'g} ;+:yfks jf ;+rfns lj?4 cfly{s ck/fw u/]sf]
;+rfnssf] gfd / ;DefJo sfg"gL ;DaGwL ljj/0f ;DaGwdf s'g} d'2f bfo/ ePsf] eP
;dfj]z ul/g'kg]{ M – xfn;Dd a}+ssf] ;+:yfks jf ;+rfnsn] jf
s_ q}dfl;s cjlwdf ;+ul7t ;+:yfn] jf ;+:yfsf] lj?4 ;+:yfks jf ;+rfnssf] lj?4df k|rlnt lgodsf]
s'g} d'2f bfo/ ePsf] eP cj1f jf kmf}Hbf/L ck/fw u/]sf] ;DaGwdf s'g}
– o; cjlwdf shf{ sf/f]af/sf] l;nl;nfdf bfo/

ePsf] d'2f afx]s cGo d'2f bfo/ gu/]sf] cj:yf
5 .
%= ;+ul7t ;+:yfsf] z]o/ sf/f]jf/ tyf k|ultsf] ljZn]if0f

s_ lwtf]kq ahf/df ePsf] ;+ul7t ;+:yfsf] z]o/sf] sf/f]jf/ ;DaGwdf Joj:yfkgsf] wf/0ff M
– z]o/sf] sf/f]jf/ v'Nnf ahf/4f/f k|ltkfbg u/]sf] d"No tyf dfGotf cg'?k x'g] u/]sf] x'gfn] a}+ssf] sf/f]jf/
;Gtf]ifhgs /x]sf] .
v_ ut jifsf] k|To]s q}dfl;s cjlwdf ;+ul7t ;+:yfsf] z]o/sf] clwstd, Go"gtd / clGtd d"Nosf ;fy} s'n sf/f]af/ z]o/
;+Vof / sf/f]af/ lbg .
laj/0f klxnf] q}df; bf]>f] q}df; t]>f] q}df; rf}yf] q}df;
clwst\d d"No -?=_ #%@ #%) ##* #(&
Go"gtd d"No -?=_ @&^ @($ #)@ @&!
clGtd d"No -?=_ ##@ #@* ##) @&*
sf/f]jf/ ;+Vof -lsQf_ %,!$) #,#^$ #,#^( &,*$@
sf/f]jf/ lbg ^@ ^) ^) ^$
sf/f]af/ z]o/ ;+Vof !,$@*,&)& *%!,&%* !,)&%,(^& @,$%%,$(@
^= ;d:of tyf r'gf}tL

cfGtl/s ;d:of / r'gf}tL
!= a}s tyf ljlQo ;+:yfx?sf] t/ntfdf cfpg] ptf/r9fjsf] sf/0fn] Aofhb/df eO/x]sf] kl/jt{gn] x'g ;Sg] hf]lvd .
@= lb3{sfnLg k|ltkmnd'ns nufgLsf gofF If]q klxrfg ug'{ .
#= a}FlsË If]qdf a9\b} uPsf] ;+rfng hf]lvd Go"gLs/0f ug'{ .
afXo ;d:of / r'gf}tL
!= pTkfbg d'ns pBf]usf] ljsf;df sld .
@= a}+lsË If]qdf ljsl;t ltj|t/ k|lt:kwf{ .
&= ;+:yfut ;'zf;g
;DalGw ljj/0f ;+rfns ;ldltsf] jflif{s k|ltj]bgsf] a'bf g+= #-v_ df pNn]v ul/Psf] .

Prime Commercial Bank Limited
Statement of Financial Position
As on 31 Ashadh 2076
Particulars Note Current Year Previous Year
Assets
Cash and Cash Equivalents 4.1 5,304,763,277 4,502,735,569
Due from Nepal Rastra Bank 4.2 7,807,981,176 8,815,836,010
Placement with Bank and Financial Institutions 4.3 1,118,729,717 1,960,450,695
Derivative Financial Instruments 4.4 - -
Other Trading Assets 4.5 - -
Loans and Advances to B/FIs 4.6 3,014,808,270 2,829,040,379
Loans and Advances to Customers 4.7 72,545,401,637 67,137,816,058
Investment Securities 4.8 10,142,156,518 8,428,082,790
Current Tax Assets 4.9 112,532,211 153,617,101
Investment in Subsidiaries 4.10 - -
Investment in Associates 4.11 51,023,000 28,000,000
Investment Property 4.12 242,559,537 15,528,305
Property and Equipment 4.13 743,976,625 606,763,277
Goodwill and Intangible Assets 4.14 7,708,980 5,278,217
Deferred Tax Assets 4.15 74,332,927 33,163,681
Other Assets 4.16 1,089,855,744 527,666,934
Total Assets 102,255,829,620 95,043,979,017
Liabilities
Due to Bank and Financial Institutions 4.17 9,217,763,323 8,668,488,205
Due to Nepal Rastra Bank 4.18 1,269,349,325 1,269,890,141
Derivative Financial Instruments 4.19 - -
Deposits from Customers 4.20 77,040,074,374 72,635,987,983
Borrowings 4.21 - -
Current Tax Liabilities 4.9 - -
Provisions 4.22 - -
Deferred Tax Liabilities 4.15 - -
Other Liabilities 4.23 1,324,653,303 1,261,902,073
Debt Securities Issued 4.24 - -
Subordinated Liabilities 4.25 - -
Total Liabilities 88,851,840,326 83,836,268,402
Equity
Share Capital 4.26 9,318,626,700 8,033,298,870
Share Premium - -
Retained Earnings 1,575,645,633 1,335,887,667
Reserves 4.27 2,509,716,961 1,838,524,079
Total Equity Attributable to Equity Holders 13,403,989,294 11,207,710,615
Non Controlling Interest - -
Total Equity 13,403,989,294 11,207,710,615
Total Liabilities and Equity 102,255,829,620 95,043,979,017
Contingent Liabilities and Commitments 4.28 57,279,709,142 44,896,825,986
Net Assets Value per share 143.84 139.52
Ranjeev Shrestha,FCA
Sweachha Karki Narayan Das Manandhar Rajendra Das Shrestha Udaya Mohan Shrestha Proprietor
Head-Finance Chief Executive Officer Chairman Director Ranjeev & Associates
Chartered Accountants
Narendra Bajracharya Gajendra Bista Prof. Dr. Mangala Shrestha Prachanda Man Shrestha Manoj Paudel
Director Director Director Director Director
Date : 25th November 2019

Place : Kathmandu

For the year ended 31 Ashadh 2076
Amount in NPR
Particulars Current Year Previous Year
Profit for the year 2,198,792,243 1,726,246,109
Interest Income 4.29 9,822,370,722 8,559,690,846
Other Comprehensive Income, Net of Income Tax
Interest Expense 4.30 6,237,763,535 5,893,775,409
a) Items that will not be reclassified to profit or loss
Net Interest Income 3,584,607,187 2,665,915,437
Fee and Commission Income 4.31 766,872,082 666,788,096 Gains/(losses) from investment in equity instruments measured at fair value 9,089,513 (127,815,126)
Fee and Commission Expense 4.32 51,275,901 46,529,774 Gains/(losses) on revaluation - -
Net Fee and Commission Income 715,596,181 620,258,322 Actuarial gains/(losses) on defined benefit plans (12,680,320) 6,4 25,020
Net Interest, Fee and Commisson Income 4,300,203,368 3,286,173,760 Income tax relating to above items 1,077,242 36,417,032
Net Trading Income 4.33 234,439,303 177,877,342 Net other comprehensive income that will not be reclassified to profit
(2,513,565) (84,973,074)
or loss
Other Operating Income 4.34 70,411,231 161,085,645
b) Items that are or may be reclassified to profit or loss
Total Operating Income 4,605,053,902 3,625,136,747
Gains/(losses) on cash flow hedge
Impairment Charge/ (Reversal) for Loans and Other Lossess 4.35 135,339,954 223,985,612 Exchange gains/(losses)(arising from translating financial assets of foreign
- -
Net Operating Income 4,469,713,948 3,401,151,135 operation)
Income tax relating to above items - -
Operating Expense
Personnel Expenses 4.36 888,335,061 631,648,386 Reclassify to profit or loss - -
Other Operating Expenses 4.37 350,946,358 273,537,368 Net other comprehensive income that are or may be reclassified to
- -
profit or loss
Depreciation & Amortisation 4.38 80,916,820 70,128,273
c) Share of other comprehensive income of associate accounted as per
Operating Profit 3,149,515,709 2,425,837,108 - -
equity method
Non Operating Income 4.39 - 21,587,289 Other Comprehensive Income for the year, Net of Income Tax (2,513,565) (84,973,074)
Non Operating Expense 4.40 - -
Total Comprehensive Income for the Year 2,196,278,678 1,641,273,035
Profit Before Income Tax 3,149,515,709 2,447,424,397
Total Comprehensive Income attributable to:
Income Tax Expense 4.41
Equity-Holders of the Bank 2,196,278,678 1,641,273,035
Current Tax 990,815,470 728,860,152
Non-Controlling Interest - -
Deferred Tax (40,092,004) (7,681,864)
Profit for the Year 2,198,792,243 1,726,246,109 Total Comprehensive Income for the Period 2,196,278,678 1,641,273,035
Profit Attributable to:

Equity-holders of the Bank 2,198,792,243 1,726,246,109
Non-Controlling Interest - - Ranjeev Shrestha,FCA
Profit for the Year 2,198,792,243 1,726,246,109 Head-Finance Chief Executive Officer Chairman Director Ranjeev & Associates
Earnings per Share Chartered Accountants
Basic Earnings per Share 23.60 21.49

Gajendra Bista Prof. Dr. Mangala Shrestha Prachanda Man Shrestha Manoj Paudel
Diluted Earnings per Share 23.60 21.49 Narendra Bajracharya
Chartered Accountants Date : 25th November 2019
Place : Kathmandu
Narendra Bajracharya Gajendra Bista Prof. Dr. Mangala Shrestha Prachanda Man Shrestha Manoj Paudel

Place : Kathmandu

20
Amount in NPR
Total
Reserve
Reserve
Reserve
Particulars
Regulatory
Other Reserve
Share Capital
Retained Earning
Share Premium
General Reserve
Fair Value Reserve
Investment Adjustment
Revaluation Reserve
Exchange Fluctuation
Balance at Shrawan 01, 2074 6,325,432,181 1,245,144,080 75,734 - 61,495,260 7,994,207 1,910,541,047 15,755,071 9,566,437,580
Adjustment/Restatement - - - - - - - - - - -
Adjustment/Restated Balance as at Shrawan 01, 2074 6,325,432,181 - 1,245,144,080 75,734 - 61,495,260 - 7,994,207 1,910,541,047 15,755,071 9,566,437,580
Comprehensive Income for the year - - - - - - - - - - -
Profit for the year - - - - - - - - 1,726,246,109 - 1,726,246,109
Other Comprehensive Income, Net of Tax - - - - - - - - - -

Gains/(losses) from investment in equity instruments measured at fair
- - - - - - - - (89,470,588) - (89,470,588)
value
Gains/(losses) on revaluation - - - - - - - - - - -
Actuarial gains/(losses) on defined benefit plans - - - - - - - - 4,497,514 - 4,497,514
Gains/(losses) on cash flow hedge - - - - - - - - - - -

Exchange gains/(losses)(arising from translating financial assets of
- - - - - - - - - - -
foreign operation)
Total Comprehensive Income for the year - - - - - - - - 1,641,273,035 - 1,641,273,035
Transfer to Reserve during the year - - 345,249,222 1,799,989 220,583,641 (89,470,588) - 8,505,792 (508,969,538) 22,301,483 -
Transfer from Reserves during the year - - - - - - - - 909,811 (909,811) -
Transactions with Owners, directly recognized in Equity - - - - - - - - - - -
Share Issued - - - - - - - - - - -
Share Based Payments - - - - - - - - - - -
Dividend to Equity-Holders - - - - - - - - - - -
Bonus Shares Issued 1,707,866,689 - - - - - - - (1,707,866,689) - -
Cash Dividend Paid - - - - - - - - - - -
Other - - - - - - - - - - -
Total Contributions by and distributions 1,707,866,689 - 345,249,222 1,799,989 220,583,641 (89,470,588) - 8,505,792 (574,653,382) 21,391,672 1,641,273,035
Balance at Ashadh 32, 2075 8,033,298,870 - 1,590,393,302 1,875,723 220,583,641 (27,975,328) - 16,500,000 1,335,887,667 37,146,743 11,207,710,615

Total
Reserve
Reserve
Reserve
Particulars
Regulatory
Other Reserve
Share Capital
Retained Earning
Share Premium
General Reserve
Fair Value Reserve
Investment Adjustment
Revaluation Reserve
Exchange Fluctuation
Balance at Shrawan 01, 2075 8,033,298,870 - 1,590,393,302 1,875,723 220,583,641 (27,975,328) - 16,500,000 1,335,887,667 37,146,743 11,207,710,615
Adjustment/Restatement - - - - - - - - - - -

Adjustment/Restated Balance as at Shrawan 01, 2075 8,033,298,870 - 1,590,393,302 1,875,723 220,583,641 (27,975,328) - 16,500,000 1,335,887,667 37,146,743 11,207,710,615
Comprehensive Income for the year - - - - - - - - - - -
Profit for the year - - - - - - - - 2,198,792,243 - 2,198,792,243
Other Comprehensive Income, Net of Tax - - - - - - - - - - -
Gains/(losses) from investment in equity instruments measured at fair value - - - - - - - - 6,362,659 - 6,362,659
Gains/(losses) on revaluation - - - - - - - - - - -
Actuarial gains/(losses) on defined benefit plans - - - - - - - - (8,876,224) - (8,876,224)
Gains/(losses) on cash flow hedge - - - - - - - - - - -

Exchange gains/(losses)(arising from translating financial assets of foreign
- - - - - - - - - - -
operation)
Total Comprehensive Income for the year - - - - - - - - 2,196,278,678 - 2,196,278,678
Transfer to Reserves during the year - - 439,758,449 834,025 163,440,763 6,362,659 - (15,000,000) (606,136,737) 10,740,841 -
Transfer from Reserves during the year - - - - - - - - 7,573,104 (7,573,104) -
Transfer to Reserves during the year (Negative Actuary Loss+FVR) - - - - 31,460,003 - - - (31,460,003) - -
Transfer to Reserves during the year (DTA reserve Created) - - - - 41,169,246 - - - (41,169,246) - -
Transactions with Owners, directly recognized in Equity - - - - - - - - - - -
Share Issued - - - - - - - - - - -
Share Based Payments - - - - - - - - - - -
Dividend to Equity-Holders - - - - - - - - - - -
Bonus Shares Issued 1,285,327,830 - - - - - - - (1,285,327,830) - -
Cash Dividend Paid - - - - - - - - - - -
Other - - - - - - - - - - -
Total Contributions by and Distributions 1,285,327,830 - 439,758,449 834,025 236,070,012 6,362,659 - (15,000,000) 239,757,966 3,167,737 2,196,278,678
Balance at Ashadh 31, 2076 9,318,626,700 - 2,030,151,750 2,709,748 456,653,653 (21,612,669) - 1,500,000 1,575,645,633 40,314,480 13,403,989,294
Sweachha Karki Narayan Das Manandhar Rajendra Das Shrestha Udaya Mohan Shrestha Narendra Bajracharya Ranjeev Shrestha,FCA
Head-Finance Chief Executive Officer Chairman Director Director Proprietor
Ranjeev & Associates
Chartered Accountants
Gajendra Bista Prof. Dr. Mangala Shrestha Prachanda Man Shrestha Manoj Paudel
Director Director Director Director

21
Place : Kathmandu
CASH FLOWS FROM FINANCING ACTIVITIES
Receipts from Issue of Debt Securities - -
Repayments of Debt Securities -
For the year ended 31 Ashadh 2076 Receipts from Issue of Subordinated Liabilities - -
Amount in NPR
Particulars Current Year Previous Year Repayments of Subordinated Liabilities -
CASH FLOWS FROM OPERATING ACTIVITIES Receipt from Issue of Shares - -
Interest Received 9,350,919,944 8,084,991,117 Dividends Paid (193,852) (45,679,965)
Fee and Other Income Received 834,471,972 666,143,848 Interest Paid - -
Dividend Received - - Other Receipts/Payments - -
Receipts from Other Operating Activities 286,999,603 259,532,706 Net Cash from Financing Activities (193,852) (45,679,965)
Interest Paid (6,214,422,944) (6,012,223,833) Net Increase (Decrease) in Cash and Cash Equivalents 798,691,607 31,461,884
Commissions and Fees Paid (51,275,901) (46,529,774) Cash and Cash Equivalents at Shrawan 01, 2075 4,502,735,569 4,464,073,730
Cash Payment to Employees (730,965,722) (611,358,345) Effect of Exchange Rate fluctuations on Cash and Cash Equivalents Held 3,336,101 7,199,955
Other Expenses Paid (349,583,349) (273,537,368) Cash and Cash Equivalents at Ashadh 31, 2076 5,304,763,277 4,502,735,569
Operating Cash Flows before Changes in Operating Assets and Liabilities 3,126,143,602 2,067,018,351
(Increase) Decrease in Operating Assets
Due from Nepal Rastra Bank 1,007,854,834 (515,460,793) Sweachha Karki Narayan Das Manandhar Rajendra Das Shrestha Udaya Mohan Shrestha Proprietor
Placement with Banks and Financial Institutions 828,087,350 (905,913,147) Chartered Accountants
Other Trading Assets - -
Loans and Advances to BFIs (188,778,217) (892,495,963) Gajendra Bista Prof. Dr. Mangala Shrestha Prachanda Man Shrestha Manoj Paudel
Narendra Bajracharya
Loans and Advances to Customers (5,420,936,226) (11,163,774,298)
Other Assets (543,393,599) (222,143,001)
Increase (Decrease) in Operating Liabilities
Due to Banks and Financials Institutions 549,275,119 2,492,696,466
Due to Nepal Rastra Bank (540,816) (224,971,144) Date : 25th November 2019
Place : Kathmandu
Deposit from Customers 4,404,086,391 12,955,899,336
Borrowings - -
Other Liabilities (190,291,332) 557,557,041
Net Cash Flow from Operating Activities before Tax Paid 3,571,507,106 4,148,412,849
Income Tax Paid (949,730,581) (862,091,765)
Net Cash Flow from Operating Activities 2,621,776,525 3,286,321,084
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of Investment Securities (11,401,844,967) (8,809,122,019)
Receipts from Sale of Investment Securities 9,679,129,447 5,365,735,516
Purchase of Property and Equipment (214,267,702) (94,043,725)
Receipts from Sale of Property and Equipment 580,629 2,696,677
Purchase of Intangible Assets (7,110,640) (3,498,836)
Receipts from Sale of Intangible Assets 192,745 -
Purchase of Investment Properties (227,031,232) -
Receipts from Sale of Investment Properties - 37,917,590
Interest Received 336,626,292 269,565,756
Dividend Received 10,834,359 21,569,804
Net Cash Used in Investing Activities (1,822,891,068) (3,209,179,237)

1. PRIME COMMERCIAL BANK LIMITED formal microfinance operation from 18 July, 2013 Statement of Profit and Loss Account The Bank reviews its individually significant loans
from its first branch office Battar located in Nuwakot and advances at each reporting period to assess
1.1 General Information district. The authorized capital of Mero Microfinance Current Year 1st Shrawan 2075 - 17th July 2018 - whether an impairment loss shall be recorded in
Lagubitta Bittiya Sanstha is NRs. 400 million, issued 31st Ashadh 2076 16th July 2019 the income statement. In particular, judgment of
Prime Commercial Bank Limited is an “A" class
capital is NRs. 286 million and paid up capital is 286 Previous Year 1st Shrawan 2074 - 17th July 2017 - the management is required in the estimation of
commercial bank licensed by Nepal Rastra Bank.
million. 32nd Ashadh 2075 16th July 2018 the amount and timing of future cash flows when
It was registered as Public Limited Company on 1st
*NFRS = Nepal Financial Reporting Standards determining the impairment.
Shrawan 2064 under the Company Act, 2063. The Mahila Sahayatra Microfinance Bittiya Sanstha
registered (corporate) office of the bank is located at Limited is the creation of 100 professional women who 2.2.2 Approval of Financial Statements These estimates are based on assumptions about
Kamalpokhari, Kathmandu, Nepal. The bank started believe in inclusive, socio-economic development of a number of factors and actual results may differ,
The accompanied Financial Statements have been
its commercial operation from 7th Ashwin 2064 Nepal. Sahayatra extends itself into areas that are not resulting in future changes to the impairment
authorized by the Board of Directors vide its resolution
corresponding to 24th September 2007. served or underserved by other financial institutions allowance.
dated 25th November 2019 (9th Mangsir 2076) and
to fight gender inequality, unemployment driven out-
On April 30, 2017 (Baisakh 17, 2074), the bank has recommended for its approval by the Annual General Loans and advances that have been assessed
migration, and poverty. Licensed by Nepal Rasta
acquired two “B" class Development Banks Birat Meeting of the shareholders. individually and all individually insignificant loans and
Bank, it is an independent microfinance “D" category
Laxmi Bikash Bank Limited and Country Development advances are then assessed collectively, in groups of
bank under the provisions of the Banks and Financial
Bank Limited. Further, the bank has acquired “B" 2.3 Functional and Presentation Currency assets with similar risk characteristics, to determine
Institution Act 2063.
class financial institution, Kankai Bikas Bank Limited whether provision should be made due to incurred
on 15th September 2019 (Bhadra 29, 2076) after the The Financial Statements are presented in Nepalese loss events for which there is objective evidence, but
final approval for acquisition letter received from NRB 2. BASIS OF PREPARATION Rupees (Rs), which is the Banks both functional the effects of which are not yet evident. The collective
on 1st September 2019 (15th Bhadra 2076). currency and presentation currency. Financial assessment takes in to account data from the loan
2.1 Statement of Compliance
information presented in Nepalese Rupees unless portfolio such as levels of arrears, credit quality,
The Bank is listed with Nepal Stock Exchange Ltd.
The financial statements have been prepared in indicated otherwise. portfolio size etc. and judgments based on current
with the code of PCBL for public shares and PCBLP
accordance with Nepal Rastra Bank Directives, Nepal economic conditions.
for promoter shares. Currently, the bank is spread 2.4 Use of estimates, assumptions and
Financial Reporting Standards 2013 and it's carve-
across the country with 99 branches and 49 ATMs. judgments The bank has opted to apply carve-out on impairment
outs issued by the Institute of Chartered Accountants
of Nepal (ICAN), provisions of Banks and Financial of loans and advances. Accordingly, the bank has
The preparation of the financial statements is in line applied paragraph 63 to determine the amount of
1.2 Financial Statements Institutions Act (BAFIA), 2073 and in conformity with with NFRS and its carve out issued by Institute of
the Company Act, 2063. any impairment loss. It has separately calculated
The Financial Statements of the Bank for the year Chartered Accountants of Nepal which includes individual and collective impairment loss amount and
ended 16 July 2019 comprises Statement of Financial The carve-outs issued by the Institute of Chartered management to make judgments, estimates and compared with the impairment provision required
Position, Statement of Profit or Loss, Statement Accountants of Nepal on September 20, 2018 on NFRS assumptions that affect the reported amount of under NRB directive no.2, higher of the amount
of Other Comprehensive Income, Statement of requirement, which allowed alternative treatments and revenues, expenses, assets and liabilities, and the derived from these measures is taken as impairment
Changes in Equity, Statement of Cash Flows, the bank adopted following carve outs: accompanying disclosures, as well as the disclosure loss for loans and advances.
Statement of Distributable Profit or Loss, Notes to the of contingent liabilities. Uncertainty about these
Financial Statements, Significant Accounting Policies S.No. NFRS/NAS Particulars assumptions and estimates could result in outcomes 2.4.4 Impairment of Available for Sale
and other disclosures required by regulatory bodies. that require a material adjustment to the carrying Investments
Accounting for Investment
amount of assets or liabilities affected in future Bank reviews its securities classified as available for
Since the bank does not have any subsidiary, the NAS 28: in Associates as per Equity
1 periods.
Consolidated Financial Statement of the bank for the Para 35 Method using uniform sale, at each reporting date to assess whether they
year ended Ashadh end 2076, does not comprises Accounting Policies Estimates and underlying assumptions are reviewed are impaired. Objective evidence exists in available-
any subsidiaries. Incurred Loss Model to measure on an ongoing basis. Revisions to accounting for-sale securities if it identifies significant financial
2
NAS 39:
the Impairment Loss on Loan estimates are recognized in the period in which the difficulty of the issuer, a breach of contract such
Para 58 estimate is revised and in any future periods affected. as a default or delinquency in interest or principal
and Advances
1.3 Principal Activities and Operations payments etc. Bank also records impairment charges
Impracticability to determine The most significant areas of estimation, uncertainty on available for sale equity investments where there
Bank NAS 39: transaction cost of all previous and critical judgments in applying accounting policies
3 is significant or prolonged decline in fair value below
The Banks business comprises accepting deposits, Para 9 years which is the part of that have most significant effect in the Financial their cost. The determination of what is ‘significant' or
granting credit facilities, retail banking, corporate effective interest rate Statements are as follows: ‘prolonged' requires judgment. Bank generally treats
banking, consumer banking, dealing in Government
4
NAS 39: Impracticability to determine ‘significant' as 20% and ‘prolonged' as greater than
Securities, credit card operations, agency services, Para AG93 interest income on amortized cost 2.4.1 Going Concern twelve months. In addition, Bank evaluates, among
trade finance services, investment and treasury other factors, historical share price movements,
Disclosure of carve-outs is provided in Para The Board of Directors has made an assessment
operations, card services, e-banking products, duration and extent up to which the fair value of an
2.4.3, 3.4.2, and 3.4.6 for Financial Instruments: of the Bank's ability to continue as a going concern
remittances, foreign currency operations and investment is less than its cost.
Recognition and measurement (NAS39). and is satisfied that it has the resources to continue
other financial services to its customers through its
in business for the foreseeable future. Furthermore,
branches and ATMs networks. 2.2 Reporting period and approval of Financial 2.4.5 Taxation
the Board of Directors is not aware of any material
Subsidiary Statements uncertainties that may cast significant doubt upon The Banks subject to income tax and judgment is
2.2.1 Reporting Period Bank's ability to continue as a going concern and required to determine the total provision for current,
The Bank has no any Subsidiary.
they do not intend either to liquidate or to cease deferred and other taxes due to the uncertainties
Associates The accounting policies set out below have been operations of it. Therefore, the Financial Statements that exist with respect to the interpretation of the
applied consistently to all periods presented in these continue to be prepared on the going concern basis. applicable tax laws, at the time of preparation of
Mero Micro Finance Lagubitta Bittiya Santha Limited financial statements. The Bank follows the Nepalese
2.4.2 Fair Value of Financial Instruments these Financial Statements.
and Mahila Sahayatra Micro Finance Bittiya Sanstha financial year based on the Nepalese calendar. The
Limtied are the Associates of the Bank. Mero corresponding dates for the English calendar are as Where the fair values of financial assets and financial Deferred tax assets are recognized in respect
Microfinance Bittiya Sanstha Ltd. Mero Micro Finance follows: liabilities recorded in the statement of financial of tax losses to the extent that it is probable that
is joint initiative of 10 institutions (8 commercial
position can be derived from active markets, they future taxable profit will be available against which
banks and 2 development banks). Mero Microfinance Relevant Financial the losses can be utilized. Judgment is required to
Date in B.S. Date in A.D. are derived from observable market data. However, if
has been incorporated under Company Act, 2063 Statement determine the amount of deferred tax assets that
this is not available, judgment is required to establish
and registered as a ‘D' class national level financial Statement of financial position date fair values. The valuation of financial instruments is can be recognized, based upon the likely timing and
institution with the Nepal Rastra Bank under BAFI Act,
described in more details in Note 5.1.6 under “Fair level of future taxable profits, together with future tax
2063 on 14 July, 2013. Current Year 31st Ashadh 2076 16th July 2019
Value of financial assets and liabilities". planning strategies.
Previous Year 32nd Ashadh 2075 16th July 2018
Mero Micro Finance received operating license from
2.4.3 Impairment of Financial Assets – Loans and 2.4.6 Defined Benefit Plans
Nepal Rastra Bank on 14th July 2013 and started Receivables The cost of the defined benefit obligations and the
present value of their obligations are determined interpretation; or results in the financial statements is reclassified and restated wherever necessary to 3.2.3 Subsidiaries
using actuarial valuations. providing reliable and more relevant information comply with the current presentation.
about the effects of transactions, other events or Subsidiaries are entities that are controlled by the
The actuarial valuation involves making assumptions
conditions on the bank's financial position, financial
3. SIGNIFICANT ACCOUNTING POLICIES Bank. The Bank is presumed to control an investee
about discount rates, future salary increments,
performance, or cash flows. The bank uses the same The accounting policies set out below have been when it is exposed or has rights to variable returns
mortality rates and possible future pension increments from its involvement with the investee and has
accounting policies throughout all periods presented applied consistently to all periods presented in these
if any. Due to the long-term nature of these plans, such the ability to affect those returns through its power
in its financial statements. Those accounting policies Financial Statements, unless otherwise indicated.
estimates are subject to uncertainty. All assumptions
comply with each NFRS effective at the end of over the investee. At each reporting date, the Bank
are reviewed at each reporting date. reassesses whether it controls an investee if facts
reporting period.
3.1 Basis of Measurement and circumstances indicate that there are changes
In determining the appropriate discount rate,
management considers the interest rates of Nepal 2.6 New Standards in issue but not yet effective The Financial Statements of the Bank have been to one or more elements of control mentioned above.
government Citizen Saving bonds with maturities prepared on the historical cost basis, except for the Currently, the Bank does not have any subsidiaries.
For the reporting of Financial Instruments, NAS 32
corresponding to the expected duration of the defined Financial Instrument Presentation, NAS 39 Financial following material items in the Statement of Financial
benefit obligation. The mortality rate is based on Instrument Recognition and Measurements and Position: 3.2.4 Loss of Control
Nepali Assured Mortality Table, 2009. Future salary NFRS 7 Financial Instruments-Disclosures have been a) Available for sale investments (quoted) are When the Bank loses control over a Subsidiary, it
escalation rates are based on expected future salary applied. measured at fair value. derecognizes the assets and liabilities of the former
increment rates of the Bank based on past data.
subsidiary from the consolidated statement of financial
2.7 New Standards and interpretation not b) Liabilities for defined benefit obligations are
2.4.7 Fair Value of Property and Equipment position. The Bank recognizes any investment
adopted recognized at the present value of the defined
retained in the former subsidiary at its fair value when
The freehold land and buildings of the bank are not benefit obligation less the fair value of the plan
All Standards and pronouncement issued by control is lost and subsequently accounts for it and for
reflected at fair value and no revaluation has been assets.
any amounts owed by or to the former subsidiary in
Accounting Standard Board Nepal as on reporting
carried at the reporting date. After recognition as an
period has been adopted. However, IFRS 9: c) Financial assets and financial liabilities held at accordance with relevant NFRSs. That fair value shall
asset, an item of property and equipment are carried be regarded as the fair value on initial recognition of
Impairment, IFRS 15: Revenue from Contract amortized cost are measured using a rate that is
at its cost less any accumulated depreciation and any a financial asset in accordance with relevant NFRS
with Customers, IFRS 16: Lease are effective a close approximation of effective interest rate.
accumulated impairment losses. or, when appropriate, the cost on initial recognition of
internationally, and these standards will be adopted
However, the bank has opted to apply carve-out and an investment in an associate or joint venture. The
2.4.8 Useful Life-time of the Property, Plant and when they are pronouncement of Accounting
measure the financial assets and liabilities at carrying Bank recognizes the gain or loss associated with the
Equipment Standard Board, Nepal.
amount i.e. amount disbursed to borrower and amount loss of control attributable to the former controlling
The Bank is following the cost model for recognition 2.8 Discounting received from the lender by the bank. interest.
of Property, Plant and Equipment. The Bank reviews
the residual values, useful lives and methods of When the realization of assets and settlement
of obligation is for more than one year, the Bank
3.2 Basis of consolidation 3.2.5 Special Purpose Entity (SPE)
depreciation of property, plant and equipment at each
reporting date. considers the discounting of such assets and liabilities 3.2.1 Business Combinations and Goodwill An entity may be created to accomplish a narrow and
where the impact is material. Various internal and
Business combinations are accounted for using the well-defined objective (eg. to effect a lease, research
2.4.9 Commitments and Contingencies external factors have been considered for determining
acquisition method as per the requirements of Nepal and development activities or a securitization of
All discernible risks are accounted for in determining the discount rate to be applied to the cash flows of financial assets). Such a special purpose entity (‘SPE')
company. Financial Reporting Standard - NFRS 3 (Business
the amount of all known liabilities. Contingent Combinations). The Bank measures goodwill as the may take the form of a corporation, trust, partnership
liabilities are possible obligations whose existence fair value of the consideration transferred including or unincorporated entity.
will be confirmed only by uncertain future events or
2.9 Presentation of Financial Statement
the recognized amount of any non-controlling interest Currently, the Bank does not have any special
present obligations where the transfer of economic The assets and liabilities of Bank presented in the in the acquire, less the net recognized amount purpose entity.
benefit is not probable or cannot be reliably Statement of Financial Position are grouped in an (generally fair value) of the identifiable assets
measured. Contingent liabilities are not recognized in order of liquidity. An analysis on recovery or settlement acquired and liabilities assumed, all measured as of
the Statement of Financial Position but are disclosed 3.2.6 Transaction elimination on consolidation
within 12 months after the reporting date (current) and the acquisition date. When the excess is negative, a
unless they are remote. more than 12 months after the reporting date (non- bargain purchase gain is immediately recognized in In consolidating a subsidiary, the group eliminates
current) is presented in the Notes. the profit or loss. full intra-group assets and liabilities, equity, income,
2.4.10 Classification of Investment Properties
expenses and cash flows relating to transactions
Management requires using its judgment to determine 2.10 Materiality and Aggregation The Bank elects on a transaction-by transaction basis between the subsidiary and the bank (profits or
whether a property qualifies as an investment In compliance with NAS 1, the bank has each material
whether to measure non-controlling interest at its fair losses resulting from intra-group transactions that
property. The Bank has developed criteria so it can class of similar items are presented separately in the
value, or at its proportionate share of the recognized are recognized in assets, such as inventory and fixed
exercise its judgment consistently. A property that amount of the identifiable net assets, at the acquisition assets, are eliminated in full).
Financial Statement. Similarly, items of dissimilar
is held to earn rentals or for capital appreciation date. The consideration transferred does not include
nature or functions are presented separately unless Currently, the Bank does not have any subsidiary,
or both and which generates cash flows largely they are immaterial. Financial Assets and Financial
amounts related to the settlement of pre-existing
independently of the other assets held by the Bank is relationships. Such amounts are generally recognized thus consolidation is not applicable.
Liabilities are offset and the net amount reported in
accounted for as investment properties. On the other in profit or loss. Transactions costs, other than those
the Statement of Financial Position only when there
associated with the issue of debt or equity securities, 3.3 Cash and cash equivalents
hand, a property that is used for operations or in the is a legally enforceable right to offset the recognized
process of providing services or for administrative that the Bank incurs in connection with a business Cash and cash equivalents include cash at vault and
amounts and there is an intention to settle on a net
purposes and which do not directly generate cash basis, or to realize the assets and settle the liability
combination are expenses as incurred. cash in transit, balances with other bank and financial
flows as a standalone assets are accounted for as simultaneously. Income and expenses are not offset 3.2.2 Non-Controlling Interest (NCI) institutions, money at call and short notice and highly
property, plant and equipment. The Bank assesses in the Statement of Profit or Loss unless required or liquid financial assets with original maturities of three
on an annual basis the accounting classification of its permitted by an Accounting Standard.
The group presents non-controlling interests in its months or less from the acquisition date that are
properties taking into consideration the current use consolidated statement of financial position within subject to an insignificant risk of changes in their fair
of such properties. Currently, land or land &building equity, separately from the equity of the owners of value. Fair value of cash and cash equivalent amount
hold by bank as Non Banking Assets is categorized 2.11 Comparative Information the parent. The group attributes the profit or loss and is the carrying amount.
as investment property. The Financial Statement of the Bank provides each component of other comprehensive income to
the owners of the parent and to the non-controlling Details of the Cash and Cash Equivalents are given in
comparative information in respect of previous Note 4.1 to the Financial Statements.
2.5 Changes in accounting policies interests.
periods. The accounting policies have been
Accounting policies are the specific principles, bases, consistently applied by the Bank with those of the The group also attributes total comprehensive income 3.4 Financial assets and Financial Liabilities
conventions, rules and practices applied by the bank previous financial year in accordance with NAS 1 to the owners of the Bank and to the non-controlling 3.4.1 Initial Recognition
in preparing and presenting financial statements. Presentation of Financial Statements, except those interests even if this results in the non-controlling
The bank is permitted to change an accounting which had to be changed as a result of application of interests having a deficit balance. Currently, the bank A) Date of Recognition
policy only if the change is required by a standard or the new NFRS. Furthermore, comparative information has no such NCIs.
All financial assets and liabilities are initially payment has been established. other than: the entire initial difference in fair value from the
recognized on the trade date, i.e. the date on transaction price as indicated by the valuation
which the Bank becomes a party to the contractual
Bank evaluates its held for trading asset l Those that the Bank intends to sell immediately model is not recognized immediately in the income
portfolio, other than derivatives, to determine or in the near term and those that the Bank,
provisions of the instrument. This includes ‘regular statement. Instead, it is recognized over the life of the
whether the intention to sell them in the near upon initial recognition, designates as fair
way trades'. Regular way trade means purchases transaction on an appropriate basis, when the inputs
or sales of financial assets that required delivery of
future is still appropriate. When Bank is unable value through profit or loss. become observable, the transaction matures or is
to trade these financial assets due to inactive
assets within the time frame generally established by l Those that the Bank, upon initial recognition, closed out, or when the Bank enters into an offsetting
markets and management's intention to sell
regulation or convention in the market place. designates as available for sale transaction.
them in the foreseeable future significantly
B) Recognition and Initial Measurement of changes, the Bank may elect to reclassify l Those for which the Bank may not recover Classification and Subsequent Measurement of
Financial Instruments these financial assets. Financial assets held for substantially all of its initial investment through Financial Liabilities
trading include instruments such as government contractual cash flows, other than because of At the inception, Bank determines the classification
The classification of financial instruments at the
securities and equity instruments that have been credit deterioration. of its financial liabilities. Accordingly financial liabilities
initial recognition depends on their purpose and
acquired principally for the purpose of selling or are classified as:
characteristics and the management's intention in However, the bank has opted to apply carve-out
repurchasing in the near term. Currently, bank
acquiring them. All financial instruments are measured provided by the Institute of Chartered Accountants of a) Financial liabilities at fair value through profit
has not categorized its financial assets in this
initially at their fair value plus transaction costs that Nepal and recognize interest income at the coupon or loss
category.
are directly attributable to acquisition or issue of rate and continually measured the carrying amount of i. Financial liabilities held for trading
such financial instruments except in the case of such ii) Financial Assets Designated at Fair Value loans and receivable at cost/fair value less repayment ii. Financial liabilities designated at fair value
financial assets and liabilities at fair value through through Profit or Loss and allowance for impairment. through profit or loss
profit or loss, as per the Nepal Accounting Standard b) Financial liabilities at amortized cost
Bank designates financial assets at fair value through (c) Financial Assets measured at fair value
- NAS 39 (Financial Instruments: Recognition and
profit or loss in the following circumstances: through OCI
Measurement). Transaction costs in relation to (a) Financial Liabilities at Fair Value through Profit
financial assets and financial liabilities at fair value l Such designation eliminates or significantly Financial assets measured at fair value through OCI or Loss
through profit or loss are dealt with the Statement of reduces measurement or recognition are Available for sale financial assets. It includes Financial Liabilities at fair value through profit or loss
Profit or Loss. inconsistency that would otherwise arise from equity and debt securities. Equity Investments include financial liabilities held for trading and financial
3.4.2 Classification and Subsequent
measuring the assets. classified as ‘Available for Sale' are those which are liabilities designated upon initial recognition as fair
neither classified as ‘Held for Trading' nor ‘Designated value through profit or loss. Subsequent to initial
Measurement of Financial Instruments l The assets are part of a group of Financial assets,
at fair value through profit or loss'. Securities in this recognition, financial liabilities at fair value through
financial liabilities or both, which are managed
Classification and Subsequent Measurement of category are intended to be held for an indefinite
and their performance evaluated on a fair value profit or loss are measured at fair value and changes
Financial Assets period of time and may be sold in response to needs
basis, in accordance with a documented risk therein are recognized in profit or loss.
At the inception, a financial asset is classified into one for liquidity or in response to changes in the market
management or investment strategy.
of the following: conditions. i) Financial Liabilities Held for Trading
l The assets contain one or more embedded
After initial measurement, financial assets measured at Financial liabilities are classified as held for trading
a) Financial assets measured at fair value through derivatives that significantly modify the cash
profit or loss fair value through OCI are subsequently measured at if they are acquired principally for the purpose of
flows that would otherwise have been required
fair value. Unrealized gains and losses are recognized selling or repurchasing in the near term or holds
under the contract.
i. Financial Assets held for trading directly in equity through ‘Other comprehensive as a part of a portfolio that is managed together for
ii. Financial Assets designated at fair value Financial assets designated at fair value through income / expense' in the ‘Fair Value Reserve'. When short-term profit or position taking. This category
through profit or loss profit or loss is recorded in the Statement of Financial the investment is disposed of the cumulative gain or includes derivative financial instrument entered
b) Financial Asset measured at amortized cost Position at fair value. Changes in fair value are loss previously recognized in equity is recognized in into by Bank that are not designated as hedging
recorded in ‘Net gain or loss on financial instruments the Statement of Profit or Loss under ‘Other operating instruments in hedge relationships as defined by
i. Financial Assets -Held to Maturity
designated at fair value through profit or losses' in the income'. Interest earned whilst holding these assets Nepal Accounting Standard - NAS 39 (Financial
ii. Financial Assets - Loans and Receivables
Statement of Profit or Loss. Interest earned is accrued are reported as ‘Interest income' using the effective Instruments: Recognition and Measurement).
c) Financial assets measured at fair value through
under ‘Interest income', using the effective interest interest rate. Dividend earned whilst holding these
OCI ii) Financial Liabilities Designated at Fair Value
rate method, while dividend income is recorded under assets are recognized in the Statement of Profit or
The subsequent measurement of financial assets ‘Other operating income' when the right to receive the Loss as ‘other operating income' when the right to through Profit or Loss
depends on their classification. payment has been established. receive the payment has been established.
Bank designates financial liabilities at fair value
(a) Financial Assets measured at Fair Value The Bank has not designated any financial assets Financial assets under this category that are through profit or loss at following circumstances:
through Profit or Loss upon initial recognition as designated at fair value monetary securities denominated in a foreign
l Such designation eliminates or significantly
through profit or loss. currency – translation differences related to changes
A financial asset is classified as fair value through in the amortized cost of the security are recognized in
reduces measurement or recognition
profit or loss if it is held for trading or is designated at (b) Financial Assets measured at amortized Cost
income statement and other changes in the carrying
inconsistency that would otherwise arise from
fair value through profit or loss. amount are recognized in other comprehensive
measuring the liabilities.
After initial measurement, loans and receivables are
i) Financial Assets Held for Trading subsequently measured at amortized cost using the income. l The liabilities are part of a group of Financial
effective interest rate, less allowance for impairment. assets, financial liabilities or both, which are
Financial assets are classified as held for trading The amortization is included in ‘Interest Income' in the
In the normal course of business, the fair value
managed and their performance evaluated
if they are acquired principally for the purpose of of a financial instrument on initial recognition
Statement of Profit or Loss. The losses arising from on a fair value basis, in accordance with a
selling or repurchasing in the near term or holds is the transaction price (that is, the fair value of
impairment are recognized in the Statement of Profit documented risk management or investment
as a part of a portfolio that is managed together for the consideration given or received). In certain
or Loss. strategy.
short-term profit or position taking. This category circumstances, however, the fair value will be based
also includes derivative financial instruments i. Held to Maturity Financial Assets on other observable current market transactions in the l The liability contains one or more embedded
entered into by Bank that are not designated as same instrument, without modification or repackaging, derivatives that significantly modify the cash
Held to Maturity Financial Assets are non- or on a valuation technique whose variables include flows that would otherwise have been required
hedging instruments in hedge relationships as
derivative financial assets with fixed or
defined by Nepal Accounting Standards (NAS) only data from observable markets, such as interest under the contract.
determinable payments and fixed maturities rate yield, option volatilities and currency rates. When
39 “Financial Instruments: Recognition and
which the Bank has the intention and ability to such evidence exists, the Bank recognizes a trading (b) Financial Liabilities at Amortized Cost
Measurement".
hold to maturity. gain or loss on inception of the financial instrument,
Financial assets held for trading are recorded in Financial instruments issued by Bank that are not
ii. Loans and Receivables from Customers being the difference between the transaction price classified as fair value through profit or loss are
the Statement of Financial Position at fair value. and fair value.
Changes in fair value are recognized in ‘Net Loans and receivables include non-derivative classified as financial liabilities at amortized cost,
trading income'. Dividend income is recorded in financial assets with fixed or determinable When unobservable market data have a significant where the substance of the contractual arrangement
‘Net trading income' when the right to receive the payments that are not quoted in an active market, impact on the valuation of financial instruments, results in Bank having an obligation either to deliver

cash or another financial asset to another Bank, or to A financial asset classified as available for sale that have expired; or expense and is accrued over the life of the agreement
exchange financial assets or financial liabilities with would have met the definition of loans and receivables using the effective interest rate. When the bank
 Bank has transferred its rights to receive cash
another Bank under conditions that are potentially at the initial recognition may be reclassified out of has the right to sell or re-pledge the securities, the
flows from the asset or
unfavorable to the Bank or settling the obligation available for sale category to the loans and receivables Bank reclassifies those securities in its Statement of
by delivering variable number of Bank's own equity category if Bank has the intention and ability to hold  Bank has assumed an obligation to pay the Financial Position as ‘Financial assets held for trading
instruments. such asset for the foreseeable future or until maturity. received cash flows in full without material pledged as collateral or ‘Financial assets available for
delay to a third party under a ‘pass-through' sale pledged as collateral, as appropriate.
After initial recognition, such financial liabilities are The fair value of financial instruments at the date of
arrangement and either Bank has transferred
subsequently measured at amortized cost using the reclassification is treated as the new cost or amortized Conversely, securities purchased under agreements
effective interest rate method. Within this category, substantially all the risks and rewards of the
cost of the financial instrument after reclassification. to resell at future date are not recognized in the
deposits and debt instruments with fixed maturity asset or it has neither transferred nor retained
Difference between the new amortized cost and the Statement of Financial Position. The consideration
period have been recognized at amortized cost using substantially all the risks and rewards of the
maturity value is amortized over the remaining life of paid, including accrued interest, is recorded in the
the method that very closely approximates effective asset, but has transferred control of the asset.
the asset using the effective interest rate. Any gain Statement of Financial Position, under “Reverse
interest rate method. The amortization is included in or loss already recognized in Other Comprehensive On de-recognition of a financial asset, the difference repurchase agreements' reflecting the transaction's
‘Interest Expenses' in the Statement of Profit or Loss. Income in respect of the reclassified financial between the carrying amount of the asset (or the economic substance to the Bank. The difference
Gains and losses are recognized in the Statement of instrument is accounted as follows: carrying amount allocated to the portion of the asset between the purchase and resale prices is recorded
Profit or Loss when the liabilities are derecognized. derecognized) and the sum of the consideration as ‘Interest income' and is accrued over the life of
i) Financial assets with fixed maturity :
received (including any new asset obtained less any the agreement using the effective interest rate. If
However, the bank has opted to apply carve-out
Gain or loss recognized up to the date of reclassification new liability assumed) and any cumulative gain or loss securities purchased under agreement to resell are
provided by the Institute of Chartered Accountants of
is amortized to profit or loss over the remaining life of that had been recognized in other comprehensive subsequently sold to third parties, the obligation to
Nepal and recognize interest expense at the coupon
the investment using the effective interest rate. If the income is recognized in profit or loss. return the securities is recorded as a short sale within
rate and continually measured the carrying amount of
financial asset is subsequently impaired, any previous ‘Financial liabilities held for trading' and measured at
loans and receivable at cost/fair value less repayment. When Bank has transferred its rights to receive cash
gain or loss that has been recognized in other fair value with any gains or losses included in ‘Net
3.4.3 Reclassification of Financial Instruments flows from an asset or has entered into a pass-through
comprehensive income is reclassified from equity to trading income'.
arrangement and has neither transferred nor retained
profit or loss.
a) Reclassification of Financial Instruments ‘At substantially all of the risks and rewards of the 3.4.5 Fair Value Measurement
fair value through profit or loss', ii) Financial assets without fixed maturity : asset nor transferred control of the asset, the asset
‘Fair value' is the price that would be received to sell
is recognized to the extent of the Bank's continuing
Bank does not reclassify derivative financial Gain or loss recognized up to the date of reclassification an asset or paid to transfer a liability (exit price) in an
involvement in the asset. In that case, Bank also
instruments out of the fair value through profit or loss is recognized in profit or loss only when the financial orderly transaction between market participants at the
recognizes an associated liability. The transferred
category when it is held or issued. asset is sold or otherwise disposed of. If the financial measurement date in the principal or, in its absence,
asset and the associated liability are measured on a
asset is subsequently impaired, any previous gain or the most advantageous market to which the Bank has
Non-derivative financial instruments designated at fair basis that reflects the rights and obligations that Bank
loss that has been recognized in other comprehensive access at that date. The fair value of liability reflects
value through profit or loss upon initial recognition is has retained.
income is reclassified from equity to profit or loss. its non-performance risk. When available, the Bank
not reclassified subsequently out of fair value through
When Bank's continuing involvement that takes the measures the fair value of an instrument using the
profit or loss category. If a financial asset is reclassified, and if Bank
form of guaranteeing the transferred asset, the extent quoted price in an active market for that instrument
subsequently increases its estimates of future cash
Bank may, in rare circumstances reclassify financial of the continuing involvement is measured at the (Level 01 valuation). A market is regarded as active
receipts as a result of increased recoverability of those
instruments out of fair value through profit or loss lower of the original carrying amount of the asset and if transactions for the asset or liability take place with
cash receipts, the effect of that increase is recognized sufficient frequency and volume to provide pricing
category if such instruments are no longer held for the maximum amount of consideration received by
as an adjustment to the effective interest rate from information on an ongoing basis on an arm's length
the purpose of selling or repurchasing in the near Bank that Bank could be required to repay.
the date of the change in estimate rather than an
term notwithstanding that such financial instruments basis.
adjustment to the carrying amount of the asset at the When securities classified as available for sale
may have been acquired principally for the purpose
date of change in estimate. are sold, the accumulated fair value adjustments If there is no quoted price in an active market, then the
of selling or repurchasing in the near term. Financial
recognized in other comprehensive income are Bank uses valuation techniques that maximize the use
assets classified as fair value through profit or loss at c) Reclassification of ‘Held to Maturity' Financial
reclassified to income statement as gains and losses of relevant observable inputs and minimize the use of
the initial recognition which would have also met the Instruments
from investment securities. unobservable inputs. The chosen valuation technique
definition of ‘Loans and Receivables' as at that date
As a result of a change in intention or ability, if it is no incorporates all of the factors that market participants
is reclassified out of the fair value through profit or b) De-recognition of Financial Liabilities
longer appropriate to classify an investment as held would take into account in pricing a transaction.
loss category only if Bank has the intention and ability
to maturity, Bank may reclassify such financial assets A financial liability is derecognized when the The best evidence of the fair value of a financial
to hold such asset for the foreseeable future or until
as available for sale and re- measured at fair value. obligation under the liability is discharged or cancelled instrument at initial recognition is normally the
maturity.
Any difference between the carrying value of the or expired. Where an existing financial liability transaction price - i.e. the fair value of the consideration
The fair value of financial instruments at the date of financial asset before reclassification and fair value is replaced by another from the same lender on given or received. If the Bank determines that the fair
reclassification is treated as the new cost or amortized is recognized in equity through other comprehensive substantially different terms or the terms of an existing value at initial recognition differs from the transaction
cost of the financial instrument after reclassification. income. liability are substantially modified, such an exchange price and the fair value is evidenced neither by a
Any gain or loss already recognized in respect of or modification is treated as de-recognition of the quoted price in an active market for an identical asset
However, if Bank were to sell or reclassify more
the reclassified financial instrument until the date of original liability and the recognition of a new liability.
than an insignificant amount of held to maturity or liability (Level 01 valuation)nor based on a valuation
reclassification is not reversed to the Statement of
Profit or Loss.
investments before maturity [other than in certain The difference between the carrying value of the technique that uses only data from observable
specific circumstances permitted in Nepal Accounting original financial liability and the consideration paid is markets (Level 02 valuation), then the financial
If a financial asset is reclassified, and if Bank Standard - NAS 39(Financial Instruments: Recognition recognized in profit or loss. instrument is initially measured at fair value, adjusted
subsequently increases its estimates of the future and Measurement)], the entire category would be to defer the difference between the fair value at initial
c) Repurchase and Reverse Repurchase
cash receipts as a result of increased recoverability tainted and would have to be reclassified as ‘Available recognition and the transaction price. Subsequently,
of those cash receipts, the effect of that increase is Agreements that difference is recognized in profit or loss on an
for sale'. Furthermore, Bank would be prohibited from
recognized as an adjustment to the effective interest classifying any financial assets as ‘Held to Maturity' Securities sold under agreement to repurchase at a appropriate basis over the life of the instrument but
rate from the date of the change in estimate rather during the following two years. specified future date are not de-recognized from the not later than when the valuation is wholly supported
than an adjustment to the carrying amount of the Statement of Financial Position as the Bank retains by observable market data or the transaction is closed
3.4.4 De-recognition of Financial Assets and out.
asset at the date of change in estimate. substantially all of the risks and rewards of ownership.
Liabilities
b) Reclassification of ‘Available for sale' Financial The corresponding cash received is recognized in the Fair values reflect the credit risk of the instrument
a) De-recognition of Financial Assets Statement of Financial Position as a liability with a and include adjustments to take account of the credit
Instruments
corresponding obligation to return it, including accrued
Bank derecognizes a financial asset (or where risk of the Bank entity and the counterparty where
Bank may reclassify financial assets out of available interest under ‘Securities sold under repurchase
applicable a part of financial asset or part of a group appropriate. Fair value estimates obtained from
for sale category as a result of change in intention or agreements', reflecting the transaction's economic
of similar financial assets) when: models are adjusted for any other factors, such as
ability or in rare circumstances that a reliable measure substance to the Bank. The difference between the liquidity risk or model uncertainties; to the extent that
of fair value is no longer available.  The rights to receive cash flows from the asset sale and repurchase prices is treated as interest
the Bank believes a third-party market participant continues to be accrued on the reduced carrying flows to service debt obligations; ranges according to the number of days in arrears and
would take them into account in pricing a transaction. amount and is accrued using the rate of interest used statistical analysis is used to estimate the likelihood
 The amount and timing of expected receipts and
to discount the future cash flows for the purpose of that loans in each range will progress through the
The fair value of a demand deposit is not less than recoveries;
measuring the impairment loss. various stages of delinquency and ultimately prove
the amount payable on demand, discounted from the
 The extent of other creditors ‘commitments irrecoverable.
first date on which the amount could be required to i) Individually Assessed Financial Assets ranking ahead of, or pari-pasu with the Bank
be paid. Current economic conditions and portfolio risk factors
The criteria used to determine whether there is and the likelihood of other creditors continuing
are also evaluated when calculating the appropriate
A fair value measurement of a non-financial asset objective evidence ofMERCIAL BANK LIMITED to support the company;
level of allowance required to cover inherent loss.
takes into account a market participant's ability to impairment include and not  The realizable value of security and likelihood These additional macro and portfolio risk factors may
generate economic benefits by using the asset in its limited to: 1.1 General Information of successful repossession; include:
highest best use or by selling it to another market
participant that would use the asset in its highest and • Known Cash Flow Prime Commercial Bank Limited is an  Recent loan portfolio growth and product mix
ii) Collectively Assessed Financial Assets
best use. difficulties experienced "A" class commercial bank licensed by
by the borrowers: Nepal Rastra Bank. It was registered Impairment is assessed on a collective basis in two  Unemployment rates
The Bank recognizes transfers between levels of as Public Limited Company on 1st circumstances:
• Past due contractual  Gross Domestic Production (GDP)Growth
the fair value hierarchy as of the end of the reporting Shrawan 2064 under the Company Act,
period during which the change has occurred. payments of either
2063. The registered (corporate) office  To cover losses which have been incurred but  Inflation
principal or interest;
of the bank is located at Kamalpokhari, have not yet been identified on loans subject to
3.4.6 Impairment of Financial Assets individual assessment; and  Interest rates
• Breach of loan Kathmandu, Nepal. The bank started its
The bank has prepared separate Policy for Impairment covenants or conditions; commercial operation from 7th Ashwin  For homogeneous groups of loans those are not  Changes in government laws and regulations
of Financial Assets under NFRS in which Financial 2064 corresponding to 24th September considered individually significant.  Property prices
• The probability that 2007.
Assets are assesses at each reporting date, whether
there is any objective evidence that a financial asset
the borrower will enter Incurred but not yet been identified impairments  Overdue days
or group of financial assets not carried at fair value
bankruptcy or other curities, credit card operations, agency Individually assessed financial assets for which no
financial reorganization; services, trade finance services, evidence of loss has been specifically identified on However, The bank has opted to apply carve-out on
through profit or loss is impaired. A financial asset or
and investment and treasury operations, an individual basis are grouped together according impairment of loans and receivables. Accordingly,
group of financial assets is deemed to be impaired if
card services, e-banking products, to their credit risk characteristics for the purpose of individual and collective impairment loss amount
and only if there is objective evidence of impairment • A significant
as a result of one or more events, that have occurred
remittances, foreign currency calculating an estimated collective loss. This reflects calculated as per NFRS is compared with the
downgrading in credit operations and other financial services impairment provision required under NRB directive
after the initial recognition of the asset (an ‘incurred impairment losses that the bank has incurred as a
rating by an external to its customers through its branches, no.2, higher of the amount derived from these
loss event') and that loss event (or events) has an result of events occurring before the reporting date,
credit rating agency. extension counters and ATMs networks. measures is taken as impairment loss for loans and
impact on the estimated future cash flows of the which the Bank is not able to identify on an individual
If there is objective evidence loan basis and that can be reliably estimated. receivables.
financial asset or group of financial assets that can be Subsidiary
that an impairment loss on
reliably estimated. These losses will only be individually identified in the iii) Reversal of Impairment
financial assets measured The Bank has
Evidence of impairment may include: indications that future. As soon as information becomes available
at amortized cost has been If the amount of an impairment loss decreases in a
the borrower or a group of borrowers is experiencing
2.2.1 Reporting Period which identifies losses on individual financial assets
incurred, the amount of subsequent period and the decrease can be related
significant financial difficulty; the probability that they within the group, those financial assets are removed
the loss is measured by objectively to an event occurring after the impairment
will enter bankruptcy or other financial reorganization; from the group and assessed on an individual basis
discounting the expected future cash flows of a was recognized, the excess is written back by
for impairment.
default or delinquency in interest or principal financial asset at its original effective interest rate and reducing the financial asset impairment allowance
payments; and where observable data indicates that comparing the resultant present value with the financial The collective impairment allowance is determined account accordingly. The write-back is recognized in
there is a measurable decrease in the estimated future asset's current carrying amount. The impairment after taking into account: the Statement of Profit or Loss.
cash flows, such as changes in arrears or economic allowances on individually significant accounts are
conditions that correlate with defaults. reviewed more regularly when circumstances require.  Historical Loss Experience in portfolios of similar iv) Write-off of Financial Assets Carried At
This normally encompasses re-assessment of the credit risk; and Amortized Cost
a) Impairment of Financial Assets carried at
enforceability of any collateral held and the timing and  Management's experience and judgment as to Financial assets (and the related impairment
Amortized Cost amount of actual and anticipated receipts. Individually whether current economic and credit conditions allowance accounts) are normally written off either
For financial assets carried at amortized cost, such as assessed impairment allowances are only released are such that the actual level of inherent losses partially or in full, when there is no realistic prospect
when there is reasonable and objective evidence of at the reporting date is like to be greater or less
amounts due from banks, held to maturity investments of recovery. Where financial assets are secured, this
etc., Bank first assesses individually whether objective reduction in the established loss estimate. Interest on than that suggested by historical experience. is generally after receipt of any proceeds from the
evidence of impairment exists for financial assets that impaired assets continues to be recognized through
realization of security.
Homogeneous groups of Financials Assets
are individually significant or collectively for financial the unwinding of the discount.
Statistical methods are used to determine impairment
assets that are not individually significant. In the Loans together with the associated allowance are
v) Impairment of Rescheduled Loans and
losses on a collective basis for homogenous groups
event Bank determines that no objective evidence written off when there is no realistic prospect of future Advances
of financial assets. Losses in these groups of financial
of impairment exists for an individually assessed recovery and all collateral has been realized or has assets are recorded on an individual basis when Where possible, the Bank seeks to restructure loans
financial asset, it includes the asset in a group of been transferred to the Bank. If, in a subsequent individual financial assets are written off, at which rather than to take possession of collateral. This
financial assets with similar credit risk characteristics year, the amount of the estimated impairment loss point they are removed from the group. may involve extending the payment arrangements
such as collateral type, past due status and other increases or decreases because of an event occurring
relevant factors and collectively assesses them for and the agreement of new loan conditions. Once
after the impairment was recognized, the previously the terms have been renegotiated, any impairment
impairment. However, assets that are individually recognized impairment loss is increased or reduced Bank uses the following method to calculate historical is measured using the original EIR as calculated
assessed for impairment and for which an impairment by adjusting the allowance account. If a future write
loss is or continues to be recognized are not included
loss experience on a collective basis: before the modification of terms and the loan is no
off is later recovered, the recovery is credited to the longer considered past due. Management continually
in a collective assessment of impairment. impairment charges for loans and other losses. After grouping of loans on the basis of homogeneous
reviews renegotiated loans to ensure that all criteria
risks, the Bank uses net flow rate method. Under
If there is an objective evidence that an impairment When impairment losses are determined for those are met and that future payments are likely to occur.
this methodology; the movement in the outstanding
loss has been incurred, the amount of the loss is financial assets where objective evidence of The loans continue to be subject to a criteria are met
balance of customers into default categories over the
measured as the difference between the assets' and that future payments are likely to occur. The loans
impairment exists, the following common factors are periods; are used to estimate the amount of financial
carrying amount and the present value of estimated considered: continue to be subject to an individual or collective
assets that will eventually be irrecoverable, as a result
future cash flows (excluding future expected credit impairment assessment, calculated using the loan's
of the events occurring before the reporting date
losses that have not yet been incurred). The carrying Bank's aggregate exposure to the customer; original effective interest rate (EIR).
• The viability of the customer's business model which the Bank is not able to identify on an individual
amount of the asset is reduced through the use of
and their capacity to trade successfully out of loan basis. vi) Collateral Valuation
an allowance account and the amount of the loss is
recognized in the income statement. Interest income financial difficulties and generate sufficient cash Under this methodology, loans are grouped into The Bank seeks to use collateral, where possible, to

mitigate its risks on financial assets. The collateral between the initial amount recognized and the 3.7.3 Cost Model Amortization of Leasehold Assets
comes in various forms such as cash, securities, maturity amount, minus any reduction for impairment.
Property and equipment is stated at cost excluding Costs incurred in respect of Leasehold Property are
letters of credit/guarantees, real estate, receivables,
the costs of day–to–day servicing, less accumulated capitalized as leasehold assets and amortized at the
inventories, other non-financial assets and credit 3.5 Trading Assets
depreciation and accumulated impairment in value. rate of 10% on straight line basis.
enhancements such as netting agreements. The One of the categories of financial assets at fair value Such cost includes the cost of replacing part of the
fair value of collateral is generally assessed, at a through profit or loss is “held for trading" financial 3.7.7 Changes in Estimates
equipment when that cost is incurred, if the recognition
minimum, at inception and based on the guidelines assets. All financial assets acquired or held for the criteria are met. The asset's methods of depreciation are reviewed,
issued by the Nepal Rastra Bank. Non-financial
collateral, such as real estate, is valued based on
purpose of selling in the short term or for which there and adjusted if appropriate, at each financial year end.
is a recent pattern of short term profit taking are 3.7.4 Revaluation Model
data provided by third parties such as independent trading assets. 3.7.8 Capital Work in Progress
valuator and audited financial statements. The Bank has not applied the revaluation model to
the any class of freehold land and buildings or other These are expenses of capital nature directly
b) Impairment of Financial Assets – Available for 3.6 Derivatives assets and derivative liabilities assets. incurred in the construction of buildings, major plant
Sale A derivative is a financial instrument whose value and machinery and system development, awaiting
On revaluation of an asset, any increase in the carrying
changes in response to the change in an underlying capitalization. Capital work-in-progress would be
For available for sale financial investments, Bank variable such as an interest rate, commodity or security
amount is recognized in ‘Other comprehensive
transferred to the relevant asset when it is available
assesses at each reporting date whether there is income' and accumulated in equity, under capital
price, or index; that requires no initial investment, for use, i.e. when it is in the location and condition
objective evidence that an investment is impaired. reserve or used to reverse a previous revaluation
or one that is smaller than would be required for a necessary for it to be capable of operating in the
decrease relating to the same asset, which was
In the case of debt instruments, Bank assesses contract with similar response to changes in market manner intended by management. Capital work-
charged to the Statement of Profit or Loss. In this
individually whether there is objective evidence of factors; and that is settled at a future date. in-progress is stated at cost less any accumulated
circumstance, the increase is recognized as income
impairment based on the same criteria as financial Forward contracts are the contracts to purchase or to the extent of previous write down. Any decrease in
impairment losses.
assets carried at amortized cost. However, the sell a specific quantity of a financial instrument, a the carrying amount is recognized as an expense in 3.7.9 Borrowing Costs
amount recorded for impairment is the cumulative loss commodity, or a foreign currency at a specified price the Statement of Profit or Loss or debited to the Other
measured as the difference between the amortized determined at the outset, with delivery or settlement Comprehensive income to the extent of any credit Borrowing costs directly attributable to the acquisition,
cost and the current fair value, less any impairment construction or production of an asset that necessarily
at a specified future date. Settlement is at maturity by balance existing in the capital reserve in respect of
loss on that investment previously recognized in the takes a substantial period of time to get ready for its
actual delivery of the item specified in the contract, or that asset.
Income Statement. Future interest income is based intended use or sale are capitalized as part of the cost
by a net cash settlement.
on the reduced carrying amount and is accrued using The decrease recognized in other comprehensive of an asset. All other borrowing costs are expensed
the rate of interest used to discount the future cash All freestanding contracts that are considered income reduces the amount accumulated in equity in the period in which they occur. Borrowing costs
flows for the purpose of measuring the impairment derivatives for accounting purposes are carried at fair under capital reserves. Any balance remaining in consist of interest and other costs that the Bank incurs
loss. If, in a subsequent period, the fair value of a value on the statement of financial position regardless the revaluation reserve in respect of an asset is in connection with the borrowing of funds.
debt instrument increases and the increase can be of whether they are held for trading or non-trading transferred directly to retained earnings on retirement
or disposal of the asset. 3.7.10 De-recognition
objectively related to a credit event occurring after the purposes. Changes in fair value on derivatives held
impairment loss was recognized, the impairment loss for trading are included in net gains/ (losses) from The carrying amount of an item of property, plant
is reversed through the Income Statement. financial instruments in fair value through profit or 3.7.5 Subsequent Cost and equipment is derecognized on disposal or when
loss on financial assets/ liabilities at fair value through no future economic benefits are expected from its
In the case of equity investments classified as profit or loss. The subsequent cost of replacing a component of an
use. The gain or loss arising from de-recognition
available for sale, objective evidence would also item of property, plant and equipment is recognized in
of an item of property, plant and equipment is
include a ‘significant' or ‘prolonged' decline in the 3.7 Properties and Equipment the carrying amount of the item, if it is probable that
included in the Statement of Profit or Loss when
fair value of the investment below its cost. Where the future economic benefits embodied within that part
the item is derecognized. When replacement costs
there is evidence of impairment, the cumulative loss 3.7.1 Recognition will flow to the Bank and it can be reliably measured.
are recognized in the carrying amount of an item
measured as the difference between the acquisition Property and equipment are tangible items that are The cost of day to day servicing of property, plant and
of property, plant and equipment, the remaining
cost and the current fair value, less any impairment held for use in the production or supply of services, equipment are charged to the Statement of Profit or
carrying amount of the replaced part is derecognized.
loss on that investment previously recognized in for rental to others or for administrative purposes and Loss as incurred.
Major inspection costs are capitalized. At each such
profit or loss is removed from equity and recognized are expected to be used during more than one period. 3.7.6 Depreciation capitalization, the remaining carrying amount of the
in the Statement of profit or loss. However, any The Bank applies the requirements of the Nepal previous cost of inspections is derecognized.
subsequent increase in the fair value of an impaired Accounting Standard - NAS 16 (Property, Plant and Fixed assets are depreciated on Straight Line Method,
available for sale equity security is recognized in other Equipment) in accounting for these assets. Property at the rates determined on the basis of useful life of 3.8 Goodwill and Intangible Assets
comprehensive income. and equipment are recognized if it is probable that assets. Depreciation rates applicable to assets of the
Bank writes-off certain available for sale financial future economic benefits associated with the asset bank are as follows. 3.8.1 Recognition
investments when they are determined to be will flow to the entity and the cost of the asset can be Rate of Depreciation per annum (%) An intangible asset is an identifiable non-monetary
uncollectible. measured reliably measured. asset without physical substance, held for use in
3.7.2 Measurement S.N. Particulars Rate the production or supply of goods or services, or
3.4.7 Offsetting of Financial Instruments
1 Buildings 2.50% for administrative purposes. An intangible asset is
Financial assets and financial liabilities are offset An item of property and equipment that qualifies recognized if it is probable that the future economic
and the net amount presented in the Statement of for recognition as an asset is initially measured at 2 Furniture & fixtures 20% benefits that are attributable to the asset will flow to
its cost. Cost includes expenditure that is directly
Financial Position when and only when Bank has a 3 Office Equipments 20% the entity and the cost of the asset can be measured
legal right to set off the recognized amounts and it attributable to the acquisition of the asset and cost reliably. An intangible asset is initially measured at
incurred subsequently to add to, replace part of an 4 Vehicles 20% cost. Expenditure incurred on an intangible item that
intends either to settle on a net basis or to realize the
asset and settle the liability simultaneously. Income item of property, plant & equipment. The cost of self- 5 Computers 20% was initially recognized as an expense by the Bank
and expenses are presented on a net basis only constructed assets includes the cost of materials in previous annual Financial Statements or interim
when permitted under NFRSs or for gains and losses and direct labor, any other costs directly attributable Financial Statements are not recognized as part of
arising from a group of similar transaction such as in to bringing the asset to a working condition for Depreciation on newly acquired fixed assets is the cost of an intangible asset at a later date.
trading activity. its intended use and the costs of dismantling and charged from the month of booking or when the fixed
removing the items and restoring the site on which asset is ready to use, whichever is earlier. 3.8.2 Computer Software & Licenses
they are located. Purchased software that is integral to Cost of purchased licenses and all computer software
3.4.8 Amortized Cost Measurement Fixed assets booked before 15th of the month are
the functionality of the related equipment is capitalized costs incurred, licensed for use by the Bank, which
depreciated for the whole month and after 15th are
The Amortized cost of a financial asset or liability is as part of computer equipment. When parts of an item are not integrally related to associated hardware,
depreciated for half month.
the amount at which the financial asset or liability of property or equipment have different useful lives, which can be clearly identified, reliably measured,
is measured at initial recognition, minus principal they are accounted for as separate items (major Fixed Assets valuing 5,000 or less are directly charged and it's probable that they will lead to future economic
repayments, plus or minus the cumulative amortization components) of property, plant and equipment. to the profit and loss account as expenses for capital benefits, are included in the Statement of Financial
using the effective interest method of any difference items.

Position under the category ‘Intangible assets' and operating income". When the investment properties differences will reverse in the foreseeable future extent that it is probable that the economic benefits
carried at cost less accumulated amortization and any are disposed off, the gains or losses are recognized in and taxable profit will be available against which will flow to Bank and the revenue can be reliably
accumulated impairment losses. the Statement of Profit or Loss under ‘Other operating the temporary difference will be utilized. measured. The following specific recognition criteria
income" in “Gain/loss on sale of investment property". must also be met before revenue is recognized.
3.8.3 Subsequent Expenditure The carrying amount of deferred tax assets is
The fair value measurement of level I is applied for
reviewed at each reporting date and reduced to the 3.13.1 Interest Income
Expenditure incurred on software is capitalized only subsequent measurement of Investment Property.
extent that it is probable that sufficient profit will be
when it is probable that this expenditure will enable the For all financial assets measured at amortized
3.10 Income Tax available to allow the deferred tax asset to be utilized.
asset to generate future economic benefits in excess cost, interest bearing financial assets classified as
Unrecognized deferred tax assets are reassessed at
of its originally assessed standard of performance and As per Nepal Accounting Standard- NAS 12 (Income available-for-sale and financial assets designated at
each reporting date and are recognized to the extent
this expenditure can be measured and attributed to fair value through profit or loss, EIR is the rate that
Taxes) tax expense is the aggregate amount included that it has become probable that future taxable profit
the asset reliably. All other expenditures are charged in determination of profit or loss for the period in will allow the deferred tax asset to be recovered.
exactly discounts estimated future cash payments
to the Statement of Profit or Loss as incurred. respect of current and deferred taxation. Income or receipts through the expected life of the financial
Goodwill is measured at cost less accumulated Tax expense is recognized in the statement of Profit Deferred tax assets and liabilities are measured at the instrument or a shorter period, where appropriate,
or Loss, except to the extent it relates to items tax rates that are expected to apply in the year when to the net carrying amount of the financial asset or
impairment losses. Bank doesn't have any goodwill in
recognized directly in equity or other comprehensive the asset is realized or the liability is settled, based financial liability.
its books of accounts.
income in which case it is recognized in equity or on tax rates (and tax laws) that have been enacted or
The calculation takes into account all contractual terms
substantively enacted at the reporting date.
3.8.4 Amortization of Intangible Assets in other comprehensive income. The Management of the financial instrument (for example, prepayment
periodically evaluates positions taken in tax returns Current and deferred tax assets and liabilities are options) and includes any fees or incremental costs
Intangible Assets, except for goodwill, are amortized with respect to situations in which applicable tax offset only to the extent that they relate to income that are directly attributable to the instrument and
on a straight–line basis in the Statement of Profit or regulation is subject to interpretation. It establishes taxes imposed by the same taxation authority. are an integral part of the EIR, but not future credit
Loss from the date when the asset is available for provisions where appropriate on the basis of amounts losses. The carrying amount of the financial asset
use, over the best of its useful economic life based expected to be paid to tax authorities. 3.11 Deposits, debt securities issued and or financial liability is adjusted if the bank revises
on a pattern in which the asset's economic benefits subordinated liabilities its estimates of payments or receipts. The adjusted
are consumed by the bank. Amortization methods, 3.10.1 Current Tax
Deposits, debt securities issued and subordinated carrying amount is calculated based on the original
useful lives, residual values are reviewed at each Current tax assets and liabilities consist of amounts EIR and the change in carrying amount is recorded
financial year end and adjusted if appropriate. The liabilities are the Bank's sources of funding. Deposits
expected to be recovered from or paid to Inland
include non-interest bearing deposits, saving deposits, as 'Interest income' for financial assets and 'Interest
Bank assumes that there is no residual value for its Revenue Department in respect of the current and similar expense' for financial liabilities. However,
intangible assets. term deposits, call deposits and margin deposits. The
year, using the tax rates and tax laws enacted or
estimated fair value of deposits with no stated maturity for a reclassified financial asset for which the bank
License fees for the software paid by the Bank are substantively enacted on the reporting date and any subsequently increases its estimates of future cash
period is the amount repayable on demand. The fair
amortized over the period of the license. Profit or loss adjustment to tax payable in respect of prior years. receipts as a result of increased recoverability of
value of fixed interest bearing deposits is considered
on disposal of fixed assets is recognized in the profit as the interest receivable on these deposits plus those cash receipts, the effect of that increase is
and loss of the year. 3.10.2 Deferred Tax carrying amount of these deposits. The fair value recognized as an adjustment to the EIR from the date
of the change in estimate.
3.8.5 De-recognition of Intangible Assets Deferred tax is provided on temporary differences of debt securities issued is also considered as the
at the reporting date between the tax bases of carrying amount of these debt securities issued. When the outcome of the transaction involving the
The carrying amount of an item of intangible asset is assets and liabilities and their carrying amounts for Subordinated liabilities are liabilities subordinated, at rendering of services cannot be estimated reliably,
derecognized on disposal or when no future economic financial reporting purposes. Deferred tax liabilities the event of winding up, to the claims of depositors, revenue shall be recognized only to the extent of the
benefits are expected from its use. The gain or loss are recognized for all taxable temporary differences debt securities issued and other creditors. expenses recognized that are recoverable. Similarly,
arising on de recognition of an item of intangible except: once the recorded value of a financial asset or a group
assets is included in the Statement of Profit or Loss 3.12 Provisions of similar financial assets has been reduced due to
when the item is derecognized.  Where the deferred tax liability arises from the
A provision is recognized if, as a result of a past event, payment delinquency for more than 365 days, interest
initial recognition of goodwill or of an asset or
the Bank has a present legal or constructive obligation income shall be discontinues to be recognized.
3.9 Investment Property liability in a transaction that is not a business
that can be estimated reliably, and it is probable that Similarly, the interest recognition is suspended as per
combination, and at the time of transaction,
Investment property is property (land or a building or affects neither the accounting profit nor taxable an outflow of economic benefits will be required to “Guideline on Recognition of Interest Income 2019"
part of a building or both) held (by the owner or by settle the obligation. The amount recognized is the issued by Nepal Rastra Bank.
profit or loss.
the lessee under a finance lease) to earn rentals or best estimate of the consideration required to settle The bank has opted to apply carve-out and recognize
for capital appreciation or both but not for sale in the  In respect of taxable temporary differences the present obligation at the reporting date, taking in interest income on accrual basis applying the coupon
ordinary course of business. associated with investments in subsidiaries, to account the risks and uncertainties surrounding the rate, which is variable rate of interest.
where the timing of the reversal of the temporary obligation at that date. Where a provision is measured
Land or land and building other than those classified differences can be controlled and is probable that using the cash flows estimated to settle the present 3.13.2 Fee and Commission Income
as property and equipment; and non-current assets the temporary differences will not reverse in the obligation, its carrying amount is determined based
held for sale under relevant accounting standard Fees earned for the provision of services over a
foreseeable future. on the present value of those cash flows.
has been presented under this account head. This period of time are accrued over that period. These
shall include land, land and building acquired as non Deferred tax assets are recognized for all A provision for onerous contracts is recognized when fees include Service fees and commission income.
banking assets by the Bank but not sold. deductible temporary differences, carried forward the expected benefits to be derived by the Bank Loan syndication fees are recognized as revenue
unused tax credits and unused tax losses (if from a contract are lower than the unavoidable cost when the syndication has been completed and the
Hence, Investment Properties represent Non- any), to the extent that it is probable that the of meeting its obligations under the contract. The Bank retained no part of the loan package for itself,
Financial Assets acquired by the Bank in settlement of taxable profit will be available against which the provision is measured as the present value of the or retained a part at the same effective interest rate
the overdue loans. The assets are initially recognized deductible temporary differences, carried forward lower of the expected cost of terminating the contract as for the other participants. Portfolio and other
at fair value when acquired. The Bank's policy is unused tax credits and unused tax losses can be and the expected net cost of continuing with the management advisory fees and service distribution
to determine whether the asset is best used for its utilized except: contract. Provisions are not recognized for future fees are recognized based on the applicable contracts,
internal operations or should be sold. The proceeds
operating losses. usually on a time apportionment basis.
are used to reduce or repay the outstanding claim.  Where the deferred tax asset relating to the
The immovable property acquired by foreclosure of deductible temporary differences arising from Before a provision is established, the Bank recognizes
collateral from defaulting customers, or which has the initial recognition of an asset or liability in a 3.13.3 Dividend Income
any impairment loss on the assets associated with
devolved on the Bank as part settlement of debt, transaction that is not a business combination, that contract. The expense relating to any provision Dividend income is on equity instruments are
has not been occupied for business use. Hence, and at the time of transaction, affects neither the is presented in the Statement of Profit or Loss net of recognized in the statement of profit and loss within
investment property is measured at fair value. accounting profit nor taxable profit or loss. any reimbursement. other operating income when the Bank's right to
After initial measurement, investment properties are  In respect of deductible temporary differences receive payment is established.
subsequently measured at fair value. Unrealized associated with investments in Subsidiaries, 3.13 Revenue Recognition 3.13.4 Net Trading Income
gains and losses are recognized directly under “Fair deferred tax assets are recognized only to the
As per NAS 18 para 20 Revenue is recognized to the Net trading income comprises gains less losses
value gain/loss on investment properties" in “other extent that it is probable that the temporary

relating to trading assets and liabilities, and includes Defined Contribution Plan net interest expense. Bank recognizes the total expenses' over the period of the lease based on
all realized interest, dividend and foreign exchange actuarial gain and loss that arises in calculating the interest rate implicit in the lease so as to give a
differences as well as unrealized changes in fair value A defined contribution plan is a post-employment Bank's obligation in respect of gratuity in other constant rate of interest on the remaining balance of
of trading assets and liabilities. benefit plan under which an Bank pays fixed comprehensive income during the period in which the liability.
contribution into a separate Bank Account (a fund) it occurs.
3.13.5 Net Income from other financial instrument and will have no legal or constructive obligation to The bank does not have finance lease transactions at
at fair value through Profit or Loss pay further contributions if the fund does not hold b) Unutilized Accumulated Leave the reporting date.
Trading assets such as equity shares and mutual fund sufficient assets to pay all employee benefits relating Bank's liability towards the accumulated leave 3.16.2 Operating Lease
are recognized at fair value through profit or loss. to employee services in the current and prior periods, which is expected to be utilized beyond one year
as defined in Nepal Accounting Standards – NAS 19 All other leases are classified as operating leases.
No other financial instruments are designated at fair from the end of the reporting period is treated as
value through profit or loss. (Employee Benefits). other long term employee benefits. Bank's net
When acting as lesser, Bank includes the assets
subject to operating leases in ‘Property, plant and
The contribution payable by the employer to a obligation towards unutilized accumulated leave
Currently, the bank has no income under the heading equipment' and accounts for them accordingly.
defined contribution plan in proportion to the services is calculated by discounting the amount of future
net income from other financial instrument at fair Impairment losses are recognized to the extent that
benefit that employees have earned in return for
value through profit or loss. rendered to Bank by the employees and is recorded residual values are not fully recoverable and the
as an expense under ‘Personnel expense' as and their service in the current and prior periods to
carrying value of the assets is thereby impaired. The
3.14 Interest Expense when they become due. Unpaid contributions are determine the present value of such benefits.
lease payments are recognized as an expense on
recorded as a liability under ‘Other Liabilities'. The discount rate is the yield at the reporting date
For financial liabilities measured at amortized cost straight line basis over the lease term.
on government bonds that have maturity dates
using the rate that closely approximates effective Bank contributed 10% on the salary of each employee approximating to the terms of Bank's obligation. When Bank is the lessee, leased assets are not
interest rate, interest expense is recorded using such to the Employees' Provident Fund. The above The calculation is performed using the Projected recognized on the Statement of Financial Position.
rate. EIR is the rate that exactly discounts estimated expenses are identified as contributions to ‘Defined Unit Credit Actuarial Method. Net change in
future cash payments or receipts through the Contribution Plans' as defined in Nepal Accounting liability for unutilized accumulated leave including 3.17 Foreign Currency Translation, Transactions
expected life of the financial instrument or a shorter Standards – NAS 19 (Employee Benefits). any actuarial gain and loss are recognized in and Balances
period, where appropriate, to the net carrying amount
Defined Benefit Plan the Statement of Profit or Loss under ‘Personnel All foreign currency transactions are translated into
of the financial asset or financial liability. Expenses' in the period in which they arise.
A defined benefit plan is a post-employment the functional currency, which is Nepalese Rupees,
3.15 Employee Benefits benefit plan other than a defined contribution plan. 3.15.3 Other Long Term Employee Benefits using the exchange rates prevailing at the dates when
Accordingly, staff gratuity has been considered the transactions were affected.
Employee Benefits are all forms of consideration as defined benefit plans as per Nepal Accounting Other long term employee benefits are all employee
given by an entity in exchange for service rendered Standards – NAS 19 (Employee Benefits). benefits other than short-term employee benefits, Monetary assets and liabilities denominated in foreign
by employees or for the termination of employment. post-employment benefits and termination benefits. currencies at the reporting date are translated to
Nepalese Rupees using the spot foreign exchange
Employee benefits include: a) Gratuity rate ruling at that date and all differences arising on
In compliance with Labor Act, 2017, provision is 3.15.4 Termination Benefits
• Short term employee benefits non-trading activities are taken to ‘Other Operating
made in the account year of service, for gratuity Termination benefits are employee benefits provided Income' in the Statement of Profit or Loss. The
• Post employee benefits payable to employees who joined bank on a in exchange for the termination of an employee's foreign currency gain or loss on monetary items is the
• Other long term employee benefits permanent basis before 3rd September 2017.
• Termination benefits
employment as a result of either: difference between amortized cost in the functional
Similarly, the employees who joined the bank currency at the beginning of the period, adjusted for
after 3rd September 2017, the contributory plan is i. An entity's decision to terminate an employee's
3.15.1 Short Term Employee Benefits employment before the normal retirement date or effective interest and payments during the period,
made. An actuarial valuation is carried out every and the amortized cost in foreign currency translated
Short-term employee benefits such as the following, year to ascertain the full liability under gratuity. ii. An employee's decision to accept an offer of at the rates of exchange prevailing at the end of the
if expected to be settled wholly before twelve months benefits in exchange for the termination of
after the end of the annual reporting period in which Bank's obligation in respect of defined benefit reporting period.
obligation is calculated by estimating the amount employment
the employees render the related services: Non-monetary items in a foreign currency that are
of future benefit that employees have earned for measured in terms of historical cost are translated
i. Wages, salaries and social security contributions; 3.16 Leases
their service in the current and prior periods and using the exchange rates as at the dates of the initial
ii. Paid annual leave and paid sick leaves; discounting that benefit to determine its present The determination of whether an arrangement is a transactions. Non-monetary items in foreign currency
value, then deducting the fair value of any plan lease or it contains a lease, is based on the substance measured at fair value are translated using the
iii. Profit sharing and bonuses; assets to determine the net amount to be shown of the arrangement and requires an assessment exchange rates at the date when the fair value was
in the Statement of Financial Position. The value of of whether the fulfillment of the arrangement is
iv. Non-monetary benefits (such as medical care, determined.
a defined benefit asset is restricted to the present dependent on the use of a specific asset or assets
housing, cars) for current employees
value of any economic benefits available in the form and the arrangement conveys a right to use the asset. Foreign exchange differences arising on the
Short term employee benefits are measured on an of refunds from the plan or reduction on the future settlement or reporting of monetary items at rates
contributions to the plan. In order to calculate the 3.16.1 Finance Lease different from those which were initially recorded are
undiscounted basis and are expenses as the related
service is provided. A liability is recognized for the present value of economic benefits, consideration Agreements which transfer to counterparties dealt with in the Statement of Profit or Loss.
amount expected to be paid under short term cash is given to any minimum funding requirement that substantially all the risks and rewards incidental to
bonus or profit sharing plans if the Bank has present apply to any plan in Bank. An economic benefit is the ownership of assets, but not necessarily legal 3.18 Financial guarantee and loan commitment
legal or constructive obligation to pay this amount as available to Bank if it is realizable during the life of title, are classified as finance lease. When Bank A financial guarantee contract is a contract that
a result of past service provided by the employee and the plan, or on settlement of the plan liabilities. is the lessor under finance lease, the amounts due requires the issuer to make specified payments to
the obligation can be estimated reliably. under the leases, after deduction of unearned interest reimburse the holder for a loss it incurs because a
Bank determines the interest expense on the
3.15.2 Post-Employment Benefits defined benefit liability by applying the discount income, are included in ‘Loans to & receivables from specified debtor fails to make payment when due.
rate used to measure the defined benefit liability at other customers', as appropriate. Interest income Financial guarantee contracts may have various
Post-employment benefits are employee benefits the beginning of the annual period to the defined receivable is recognized in ‘Net interest income' over legal forms, such as a guarantee, some types of
(other than termination benefits and short-term benefit liability at the beginning of the annual period. the periods of the leases so as to give a constant rate letter of credit, etc. where the bank has confirmed
employee benefits) that are payable after the The discount rate is the yield at the reporting date of return on the net investment in the leases. its intention to provide funds to a customer or on
completion of employment such as the following: behalf of a customer in the form of loans, overdrafts
on government bonds that have maturity dates When Bank is a lessee under finance leases, the
i. Retirement benefits (eg: gratuity, lump sum approximating to the terms of Bank's obligations. leased assets are capitalized and included in ‘Property, etc. whether cancellable or not and the bank had
payments on retirement); and plant and equipment' and the corresponding liability to not made payments at the reporting date, those
The increase in gratuity liabilities attributable to
the lesser is included in ‘Other liabilities'. A finance instruments are included in these financial statements
ii. Other post-employment benefits such as post- the services provided by employees during the as commitments.
year ended 16th July, 2019 (current service cost) lease and its corresponding liability are recognized
employment life insurance
has been recognized in the Statement of Profit or initially at the fair value of the asset or if lower, the 3.19 Share capital and reserves
Loss under ‘Personnel Expenses' together with the present value of the minimum lease payments.
Finance charges payable are recognized in ‘Interest Share capital and reserves are different classes of

equity claims. Equity claims are claims on the residual 3.22 Impairment of Non-Financial Assets
interest in the assets of the entity after deducting all
its liabilities. Changes in equity during the reporting The Bank assesses at each reporting date whether
period comprise income and expenses recognized there is an indication that an asset may be impaired.
If any indication exists, or when annual impairment Particulars Current Year Previous Year
in the statement of financial performance; plus
contributions from holders of equity claims, minus testing for an asset is required, the Bank estimates the
Cash in Hand 2,503,874,208 2,427,643,709
distributions to holders of equity claims. asset's recoverable amount. An asset's recoverable
amount is the higher of an asset's or the fair value of Balances with BFIs 1,692,336,589 1,745,473,989
3.20 Earnings per share the Cash Generating Units (CGU) fair value less costs Money at Call and Short Notice - -
to sell and its value in use. Where the carrying amount
Bank presents basic and diluted Earnings per Share Other - -
of an asset or CGU exceeds its recoverable amount,
(EPS) data for its ordinary shares. Basic EPS is the asset is considered impaired and is written down Placement less than 3 months 1,108,552,480 329,617,872
calculated by dividing the profit and loss attributable to its recoverable amount. Total 5,304,763,277 4,502,735,569
to ordinary equity holders of Bank by the weighted
average number of ordinary shares outstanding In assessing value in use, the estimated future cash Cash and cash equivalents include cash at vault and agency bank account balances and placement to other BFIs which are maturing
during the period. flows are discounted to their present value using a within 3 months which are subject to an insignificant risk of changes in value. Fair value of cash and cash equivalent amount is the
pre–tax discount rate that reflects current market carrying amount.
Diluted EPS is determined by adjusting both the profit assessments of the time value of money and the risks
and loss attributable to the ordinary equity holders specific to the asset. In determining fair value less
and the weighted average number of ordinary shares costs to sell, appropriate valuation model is used.
outstanding, for the effects of all dilutive potential
ordinary shares, if any.
3.23 Dividend on Ordinary Shares Particulars Current Year Previous Year
Earnings per share is calculated and presented in
Statement of Profit or Loss. Dividend on ordinary shares are recognized as a Statutory Balances with NRB 3,162,797,290 3,228,087,707
liability and deducted from equity when they are
approved by the Bank's shareholders. Dividend for Securities purchased under Resale Agreement - -
3.21 Segment reporting
the year that is approved after the reporting date Other Deposit and Receivable from NRB 4,645,183,886 5,587,748,303
An operating segment is a component of an entity: is disclosed as an event after the reporting date.
Total 7,807,981,176 8,815,836,010
 that engages in business activities from which it Interim Dividend is deducted from equity when they
may earn revenues and incur expenses (including are declared and is no longer at the discretion of the
Minimum Statutory balances as prescribed by NRB which is 4% of minimum CRR balance to be maintained with NRB is included in
revenues and expenses relating to transactions Bank. Statutary Balance with NRB and remaining balance is shown in Other Deposit and Receivable from NRB.The fair value of balance
with other components of the same entity), with the Nepal Rastra Bank is the carrying amount.
3.24 Cash Flow Statement
 whose operating results are regularly reviewed
by the banks top level management to make As per NAS 7, the cash flow statement has been
decisions about resources to be allocated to the prepared using ‘The Direct Method', whereby gross
segment and assess its performance, and cash receipts and gross cash payments of operating
activities, finance activities and investing activities
 for which discrete financial information is available. have been recognized. Placement with Domestic BFIs 14,060,238 20,678,450
The bank has identified the key segments of business Placement with Foreign BFIs 1,104,669,479 1,939,772,245
on the basis of nature of operations that assists the 3.25 Comparative Information Less: Allowances for Impairment - -
Executive Committee of the bank in decision making
The Financial Statement of the Bank provides Total 1,118,729,717 1,960,450,695
process and to allocate the resources. It will help
comparative information in respect of previous
the management to assess the performance of the
periods. The accounting policies have been Placement whose maturity date is more than 3 months as on reporting date is shown in this category. The fair value of balance includes
business segments. All operations between the
consistently applied by the Bank with those of the Principal amount and Account Receivable as on reported date.
segments are conducted on pre-determined transfer
previous financial year in accordance with NAS 1
price. Treasury department acts as the fund manager
Presentation of Financial Statements. Furthermore,
of the Bank.
comparative information is reclassified and restated
Currently, the bank has categorized its segment as: wherever necessary to comply with the current
• Banking Operation presentation. Particulars Current Year Previous Year
• Treasury Held for Trading
• Card Interest Rate Swap -
• Others Currency Swap -
Forward Exchange Contracts -
Others -
Held for Risk Management
Interest Rate Swap -
Currency Swap -
Forward Exchange Contracts. -
Others -
Total -

Particulars Current Year Previous Year Particulars Current Year Previous Year
Treasury Bills - - Product
Government Bonds - - Term Loans 14,756,971,010 10,561,891,049
Overdraft 14,539,071,872 13,477,556,470
NRB Bonds - -
Trust Receipt/Import Loans 1,618,802,413 1,668,417,058
Domestic Corporate Bonds - -
Demand and other Working Capital Loans 10,068,375,371 9,217,823,468
Equities - -
Personal Residential Loans 3,890,204,594 4,183,241,748
Other Trading Assets - -
Real Estate Loans 5,559,437,609 6,981,994,602
Total - -
Margin Lending Loans 2,070,061,653 1,999,739,792
Hire Purchase Loans 4,767,612,016 4,201,514,248
Deprived Sector Loans 759,147,300 674,014,668
Particulars Current Year Previous Year Bills Purchased 54,010,397 150,499,000
Loans to Micro-Finance Institutions 3,045,237,060 2,857,604,968 Staffs Loans 214,772,609 171,015,240

Other 15,171,821,319 14,778,081,778
Other - -
Sub-Total 73,470,288,164 68,065,789,121
Less: Allowances for Impairment 30,428,790 28,564,588
Interest Receivable 380,873,131 244,310,842
Total 3,014,808,270 2,829,040,379
Grand Total 73,851,161,294 68,310,099,963
Balance at Shrawan 01 28,564,588 19,639,629 Nepalese Rupee 73,127,557,617 67,786,786,673
Impairment Losss for the year: Indian Rupee - -
Charge for the year 3,209,164 8,924,960 United States Dollar 703,828,390 523,313,289
Recoveries/Reversal 1,344,962 - Great Britain Pound - -
Euro 19,775,287 -
Amount Written Off - -
Japanese Yen - -
Balance at Ashadh End 30,428,790 28,564,588
Chinese Yuan - -
Loan and advances provided to microfinance financial institution are presented under this head. Other - -
Grand Total 73,851,161,294 68,310,099,963

Loans and Advances measured at Amortized Cost 73,851,161,294 68,310,099,963
Less: Impairment Allowances Secured
Collective Impairment 708,166,404 662,715,735 Moveable/Immoveable Assets 68,191,929,635 58,032,513,657

Gold and Silver 279,079,931 5,034,089,127
Individual Impairment 597,593,253 509,568,170
Guarantee of Domestic BFIs - -
Net Amount 72,545,401,637 67,137,816,058
Government Guarantee 117,802,500 140,918,990
Loans and Advances measured at FVTPL - - Guarantee of International Rated Bank - -
Total 72,545,401,637 67,137,816,058 Collateral of Export Document - -

Collateral of Fixed Deposit Receipt 205,922,409 362,717,540
Loans and advances are assessed individually and collectively as per incured loss model which is compared with the
loss provision prescribed by NRB directive no. 2. Higher of the loss as per incurred loss model and NRB directive is Collatereal of Government Securities 3,319,946 2,520,000
considered for impairment. Accrued Interest Receivable on loans have been considered under Loans and Advances Counter Guarantee - -
measured at Amortized Cost. Loan to employees and its AIR provided according to the Employee Bylaws of the bank
Personal Guarantee 600,000 5,599,062
is presented under this head. Total provision under Pass Loan as per NRB Directive No. 2 is categorized as Collective
Impairment and remaining are categorized as Individual Impairment. Other Collateral 4,671,633,742 4,487,430,745
Subtotal 73,470,288,164 68,065,789,121
Unsecured(AIR) 380,873,131 244,310,842
Grand Total 73,851,161,294 68,310,099,963
Gross Loans and Advances to customers excluding Impairment and Receivable has been considered for 4.7.3 analysis.
44
Total
Total
Total
Other
Write-Offs
Debt Securities
Other Movement
Other Movement
Equity Instruments
Government Bonds
Charge for the year
Balance at Shrawan 01
Balance at Sharawan 01
Balance at Ashadh End

Balance at Ashadh End
Nepal Rastra Bank Bonds

Government Treasury Bills
Government Bond Foreign
Quoted Equity Securities

Impairment Loss for the year
Impairment Loss for the year
Unquoted Equity Securities

Charge/(Reversal) for the year
Total Allowances for Impairment

Specific Allowance for Impairment
Particulars
Particulars
Particulars
Particulars
Nepal Rastra Bank Deposit Instruments

Collective Allowances for Impairment
Recoveries/Reversals during the year
Less: Specific Allowances for Impairment

Investment in Equity measured at FVTOCI
Exchange Rate Variance on Foreign Currency
Exchange Rate Variance on Foreign Currency
Investment Securities measured at Amortized Cost
4.8.1: Investment Securities measured at Amortized Cost

Current Year
Current Year
Current Year
Current Year
45,450,669
662,715,735
509,568,170
1,305,759,657
708,166,404
-
-
146,200,450
234,225,533
597,593,253
-
-
-
9,618,053,868
-
673,335,139
66,393,741
-
-
-
8,878,324,987
524,102,650
23,244,000
500,858,650
10,142,156,518
524,102,650
9,618,053,868
Previous Year
Previous Year
Previous Year
Previous Year
555,052,934
402,170,319
1,172,283,905
662,715,735
-
-
107,662,801
52,623,930
160,021,781
509,568,170
-
-
-
497,273,972
19,620,000
477,653,972
7,930,808,817
-
691,158,449
54,298,900
-
-
786,323,223
6,399,028,245
8,428,082,790
497,273,972
7,930,808,817

Current Year Previous Year
Particulars
1. Investment in Quoted Equity
1.1 Nepal Doorsanchar Comapany Limited (132,419 ordinary shares of Rs. 100 each fully paid) 88,507,473 91,766,367 88,507,473 95,474,099

1.2 Nerude Laghubitta Ltd. (484,303 Promoter shares of Rs. 100 each fully paid) 13,303,198 94,923,388 14,025,200 44,087,200
1.3 NLG Insurance Co.ltd. (107,816 Ordinary shares of Rs. 100 each fully paid) 127,566,173 82,155,792 114,090,863 86,290,050
1.4 Neco Insurance Co Ltd ( 251,991 Ordinary shares of Rs. 100 each fully paid) 172,866,982 124,735,545 170,840,124 138,492,810
1.5 Nepal Life Insurance Limited ( 4 Bonus shares of Rs. 100 each) - 3,604 - -
2. Investment in Unquoted Equity
2.1 Nepal Clearing House Limited (37,440 Promoter shares of Rs. 100 each fully paid) 2,600,000 3,744,000 2,600,000 3,120,000
2.2 Nepal Electronic Payment System Limited ( 150,000 Promoter shares of Rs. 10 each fully paid) 15,000,000 15,000,000 15,000,000 15,000,000
2.3 Prabhu Capital Ltd ( 15,000 Promoter shares of Rs. 100 each fully paid) 1,500,000 1,500,000 1,500,000 1,500,000
2.4 Banking Finance and Insurance Institute of Nepal (30,000 Promoter shares of Rs. 100 each fully paid) 3,000,000 3,000,000 - -
3. Investment in Mutual Funds
3.1 Global IME Samunnat Scheme 1 (3,797,868 ordinary shares of Rs. 10 each fully paid) 37,978,706 31,826,134 37,978,706 33,307,302
3.2 NMB Hybrid Fund (1,263,585 ordinary shares of Rs. 10 each fully paid) 12,636,128 12,673,758 12,636,128 12,244,139
3.3 NIBL Pragati Fund ( 1,029,832 ordinary shares of Rs. 10 each fully paid) 10,298,322 7,661,952 10,299,322 9,269,388
3.4 Nabil Equity Fund (1,126,504 ordinary shares of Rs. 10 each fully paid) 11,265,040 10,510,282 11,265,040 11,107,329
3.5 Laxmi Equity Fund ( 5,845,587 ordinary shares of Rs. 10 each fully paid) 58,455,870 44,601,829 58,495,870 47,381,655
Total 554,977,892 524,102,650 537,238,727 497,273,972

45
4.9 Current Tax Assets
Current Tax Assets
Current year Income Tax Assets 1,092,129,154 882,477,252
Tax Assets of Prior Periods 11,218,528 -
Current Tax Liabilities
Current year Income Tax Liabilities 958,083,276 727,917,890
Tax Liabilities of Prior Periods 32,732,194 942,262
Total 112,532,211 153,617,101
Investment in Quoted Subsidiaries

Investment in Unquoted Subsidiaries
Total Investment Particulars Current Year Previous Year
Less: Impairment Allowances
Investment in Quoted Associates 51,023,000 28,000,000
Net Carrying Amount
Investment in Unquoted Associates - -
Total Investment 51,023,000 28,000,000
Less: Impairment Allowances - -
4.10.1: Investment in Quoted Subsidiaries Net Carrying Amount 51,023,000 28,000,000

Particulars
Cost Fair Value Cost Fair Value
1.1 Mero Microfinance Bittiya Sanstha Ltd. (460,460
37,023,000 46,046,000 14,000,000 20,020,000
Promoter shares of Rs. 100 each fully paid)
1.2 Mahila Sahayatra Microfinance Bittiya Sanstha Ltd.
14,000,000 15,400,000 14,000,000 14,000,000
(154,000 Promoter shares of Rs. 100 each fully paid)
Total 51,023,000 61,446,000 28,000,000 34,020,000

3.1 Mero Microfinance Bittiya Sanstha Ltd. 7.00% 7.00%
3.2 Mahila Sahayatra Microfinance Bittiya Sanstha Ltd. 12.73% 12.73%

48
4.2
4.1
Total
Net Amount
Net Amount
Adjustment/Transfer
Adjustment/Transfer.
Accumulated Depreciation
Balance as on Shrawan 01.
Balance as on Shrawan 01.
Accumulated Impairment Loss

Addition/(Disposal) during the year
Addition/(Disposal) during the year.
Net Changes in fair value during the year.
Investment Properties measured at Cost

Particulars
Mero Microfinance Bittiya Sanstha Ltd.
Investment Properties measured at Fair Value

Mahila Sahayatra Microfinance Bittiya Sanstha Ltd
No of Share
154,000
460,460
Current Year
Value
Market
Current Year
15,400,000
46,046,000
242,559,537
-
-
-
-
-
-
242,559,537
-
-
227,031,232
15,528,305
Share
No of
140,000
200,200
Previous Year
Previous Year
15,528,305
-
-
-
-
-
-
15,528,305
-
-
(35,350,736)
50,879,041
Market Value
14,000,000
20,020,000

As on Ashadh End 2076
Leasehold Computer & Furniture & Equipment & Total Ashadh Total Ashadh
Particulars Land Building Vehicles Machinery
Properties Accessories Fixtures others end 2076 End 2075
Cost
As on Shrawan 01, 2074 238,248,750 125,027,769 155,393,327 73,709,015 70,251,316 102,398,644 - 203,977,572 969,006,392 654,291,453
Addition during the year

Acquisition 21,327,463 21,485,268 11,629,730 8,856,900 5,597,154 - 25,147,211 94,043,725 103,703,275
Capitalization - - - - - - - - - 212,757,670
Disposal during the year - - (210,158) - (6,368,533) (151,451) - (468,127) (7,198,269) (1,746,006)
Adjustment/Revaluation - 6,860,643 - - - (6,860,643) - - - -
Balance as on Ashadh end 2075 238,248,750 153,215,874 176,668,436 85,338,745 72,739,682 100,983,704 - 228,656,656 1,055,851,848 969,006,392
Addition during the Year
Acquisition - - - - - - - - - 94,043,725
Capitalization 66,635,356 10,394,583 31,482,076 7,080,700 16,458,750 22,825,728 - 59,390,510 214,267,702 -
Disposal during the year - - - (431,700) (259,030) (1,133,818) - (2,230,609) (4,055,156) (7,198,269)
Adjustment/Revaluation - - (3,964,284) - - 3,439,144 - - (525,140) -
Balance as on Ashadh end 2076 304,884,106 163,610,457 204,186,228 91,987,744 88,939,402 126,114,758 - 285,816,557 1,265,539,253 1,055,851,848
Depreciation and Impairment
As on Shrawan 01, 2074 - (2,620,016) (105,813,932) (60,141,269) (41,901,484) (57,159,903) - (121,116,660) (388,753,264) (283,145,207)
Depreciation charge for the year - (3,829,462) (18,406,413) (3,866,115) (9,235,634) (9,123,519) - (22,182,875) (66,644,019) (42,889,638)
Impairment for the year - - - - - - - - - -
Disposals - - - - - - - - - 1,545,611
Adjustments - - 168,541 - 5,723,525 119,448 - 297,199 6,308,713 (64,264,030)
As on Ashadh end 2075 - (6,449,478) (124,051,804) (64,007,385) (45,413,592) (66,163,975) - (143,002,336) (449,088,570) (388,753,264)
Impairment for the year - - - - - - - - - -
Depreciation charge for the year - (3,863,228) (14,544,430) (5,569,475) (11,195,707) (12,999,159) - (28,257,688) (76,429,688) (66,644,019)
Disposals - - 24,390 278,444 225,835 1,406,811 - 2,020,150 3,955,630
Adjustments - - - (95,444) (102,645) 198,089 - - - 6,308,713
As on Ashadh end 2076 - (10,312,706) (138,571,844) (69,393,860) (56,486,110) (77,558,234) - (169,239,874) (521,562,627) (449,088,570)
Capital Work in Progress - - - - - - - - -
Net Book Value 304,884,106 153,297,751 65,614,385 22,593,885 32,453,293 48,556,524 - 116,576,683 743,976,626 606,763,278
As on Ashadh end 2074 238,248,750 122,407,753 49,579,395 13,567,745 28,349,832 45,238,741 - 82,860,912 580,253,128
As on Ashadh end 2075 238,248,750 146,766,396 52,616,632 21,331,360 27,326,090 34,819,729 - 85,654,320 606,763,277
As on Ashadh end 2076 304,884,106 153,297,751 65,614,385 22,593,885 32,453,293 48,556,524 - 116,576,683 743,976,626
49
Ashadh End 2076
-
12,398,538
-
5,987,323
-
-
18,385,861
-
3,498,836
-
-
21,884,697
(8,791,542)
(2,124,307)
-
-
(2,206,377)
(13,122,226)
(3,484,254)
-
-
(16,606,480)
-
5,278,217
Total Ashadh end
2075
- -
- -
18,385,861
-
3,498,836
-
-
21,884,697
-
7,110,640
(193,315)
-
28,802,022
(13,122,226)
(3,484,254)
-
-
-
-
(16,606,480)
(4,487,132)
-
570
(21,093,042)
-
7,708,980
5,263,635
5,278,217
7,708,980
Total Ashadh end
- -
9,262,572 9,262,572
2076
23,322,659 23,322,659
39,411,003 39,411,003
2,336,693 2,336,693
- -
-
- - -
As on Ashadh End 2076
- 74,332,927
- -
- -
Net Deferred Tax Asset (Liabilities) as on year end of 2076 - 74,332,927
Deferred Tax (Asset)/ Liabilities as on Shrawan 01, 2075 - 33,163,681
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
41,169,246
Developed
- 40,092,004
- 1,077,242
- -
-
3,498,836
-
-
(3,484,254)
-
18,385,861
21,884,697
-
7,110,640
(193,315)
-
28,802,022
(13,122,226)
-
-
(16,606,480)
(4,487,132)
-
570
-
(21,093,042)
-
7,708,980
5,263,635
5,278,217
7,708,980
Ashadh End 2075
Purchased
Particulars Current Year

Deferred Tax Deferred Tax
Assets Liabilities Net Deferred Tax
Assets /(Liabilities)
Deferred tax on temporary differences on following items
Loans and Advances to BFIs - - -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Loans and Advances to Customers (AIR) - 21,513,666 (21,513,666)
Goodwill
Investment Properties - 4,658,492 (4,658,492)

Investment Securities 14,467,345 (11,989,426) 26,456,72
Property and Equipment 23,635,446 - 23,635,446
Employees' Defined Benefit Plan 9,243,621 - 9,243,621
Lease Liabilities - - -
Provisions - - -
Other Temporary Differences - - -
Deferred tax on temporary differences - - 33,163,681
Deferred tax on carry forward of unused tax losses - - -
Deferred tax due to changes in tax rate - - -
Particulars
Balance as on Ashadh end 2075
Balance as on Ashadh end 2076
Net Deferred Tax Asset (Liabilities) as on year end of 2075 - - 33,163,681

Amortisation charge for the year
Amortisation charge for the year

Amortisation and Impairment
Adjustment due to Acquisition
Deferred Tax (Asset)/ Liabilities as on Shrawan 01 2074 - - 10,935,214

Capital Work in Progress
Origination/(Reversal) during the year - - (44,098,895)

As on Ashadh end 2075

As on Shrawan 01, 2074
As on Shrawan 01, 2074

Disposal during the year
Disposal during the year

Addition during the Year
Addition during the year
Adjustment/Revaluation
Adjustment/Revaluation
Impairment for the year
Impairment for the year
Deferred Tax expense (income) recognized in profit or loss - - (7,681,864)

Deferred Tax expense (income) recognized in OCI - - (36,417,032)
Capitalization
Capitalization
Net Book Value

Acquisition
Acquisition
Deferred Tax expense (income) recognized directly in Equity - -

Adjustment
Disposals
Disposals
Cost

Assets held for Sale - - Held for Trading
Other Non-Banking Assets - - Interest Rate Swap

Currency Swap
Bills Receivable - -
Forward Exchange Contracts
Accounts Receivable 41,353,158 33,667,364
Others
Accrued Income - -
Held for Risk Management
Prepayments and Deposits 46,865,077 21,680,968
Interest Rate Swap
Income Tax Deposit - -
Currency Swap
Deferred Employee Expenditure 55,340,131 36,544,921 Forward Exchange Contracts.
Other Assets 946,297,377 435,773,681 Others
Stock of Stationery 7,108,714 6,933,358 Total
Advance Others 11,007,619 43,573,471
Receivable Remittance 9,308,130 18,435,838
Receivable VISA A/C 6,844,497 9,813,019
Khandbari-Tumlingtar Rec 2,834,370 2,834,370 Institutional Customers:
Transit Items (including Cheques) 199,898,022 127,445,494 Term Deposits. 30,471,191,915 24,609,991,819
53,996,035 222,995,616 Call Deposits 12,648,943,148 16,412,782,723

Receivable from GON
Current Deposits. 5,173,469,514 4,218,623,256
Bullion Stock 543,196,336 -
Others. 1,220,069,223 1,352,035,991
Advance for Bullion Stock 2,009,063 -
Individual Customers:
Spot Deal Receivable 363,082 528,339
Term Deposits 10,553,424,081 7,082,802,643
NDF receivable 108,514,580 -
Saving Deposits 16,461,795,820 18,463,035,929
Others Asset 1,216,929 3,214,178 Current Deposits 316,735,016 446,643,314
Total 1,089,855,744 527,666,934 Others 194,445,657 50,072,308
Total 77,040,074,374 72,635,987,983

Money Market Deposits - -
Nepalese Rupee 76,264,769,821 71,797,789,870
Interbank Borrowing - -
Indian Rupee 3,041,425 -
Other Deposits from BFIs 9,217,763,323 8,668,488,205
United States Dollar 771,089,708 834,760,081
Settlement and Clearing Accounts - -
Great Britain Pound 40,733 42,676
Others. - -
Euro 1,132,687 3,395,356
Total 9,217,763,323 8,668,488,205
Japanese Yen - -
Chinese Yuan - -
Other - -
Total 77,040,074,374 72,635,987,983
Refinance from NRB 1,269,349,325 1,269,890,141

a. Reconstruction Refinancing 486,433,970 503,636,724
Domestic Borrowings
b. Project Refinancing 782,915,356 766,253,417
Nepal Government
Standing Liquidity Facility - - Other Institutions.
Lender of Last Resort facility from NRB - - Other
Securities sold under repurchase agreements - - Sub Total
Other Payable to NRB - - Foreign Borrowings
Total 1,269,349,325 1,269,890,141 Foreign Banks and Financial Institutions
Multilateral Development Banks
Other Institutions
Sub Total
Total

4.23.1: Defined Benefit Obligations
The amounts recognised in the statements of financials positions are as follows :
Present value of unfunded obligations 55,666,690 30,812,070

Present value of funded obligations 103,373,420 75,804,660
Total present value of obligations 159,040,110 106,616,730
Fair value of plan assets 41,737,720 39,642,920
Present value of net obligations - -
Recognised liability for defined benefit obligations 117,302,390 66,973,810
Equity securities - -
Government bonds - -
Bank deposit - -
Others 41,737,720 39,642,920
Total 41,737,720 39,642,920

Defined benefit obligations at Shrawan 1 106,616,730 99,722,710
Liabilities for emloyees defined benefit obligations 61,635,700 36,161,740
Actuarial (Gain)/Losses 24,363,620 (12,550,310)
Liabilities for long service leave 55,666,690 30,812,070
Benefits paid by the plan (587,880) (4,704,820)
Short term employee benefits 8,140,348 3,239,755
Current service costs and interest 28,647,640 24,149,150
Bills payable 89,053,920 351,561,568
Defined benefit obligations at Ashadh end 159,040,110 106,616,730
Creditors and accruals 25,879,854 37,940,505
Interest payable on deposits 55,003,188 31,662,597
Interest payable on borrowing - -
Liabilities on defered grant income - -
Unpaid Dividend 34,898,649 35,092,501
Liabilities under Finance Lease - - Fair value of plan assets at Shrawan 1 39,642,920 21,775,550
Employee bonus payable 350,446,190 244,742,440 Contributions paid into the plan - 16,942,410
Other Liabilities 643,928,764 490,688,897 Benefits paid during the year (305,450) (1,579,570)
Audit Fee 1,356,000 1,243,000 Actuarial (losses) gains - -
Provision for expenses 28,030,514 34,569,482 Expected return on plan assets 2,400,250 2,504,530
Visa Debit Card Payable 5,432,571 8,944,179 Fair value of plan assets at Ashadh end 41,737,720 39,642,920
Unearned Discount & Commission 324,984,153 257,384,264
Tax deducted at source payable 132,789,636 119,162,555
Retention amount 10,434,992 17,936,899
Account Payable 16,080,510 13,744,108 Particulars Current Year Previous Year
Card Related Payable 15,463,084 4,977,394
Current service costs 19,859,120 15,782,590
Gold Loan Commission Payable 3,824,524 4,242,442
Interest on obligation 8,788,520 8,366,560
NDF Payable - 15,465,668
Remittance Payable - 5,109,583 Expected return on plan assets (4,852,010) (3,750,230)
Spot Deal Payable - - Actuarial (Gain)/Loss on Leave Encashment 14,135,060 (4,879,590)
Liabilities under Operating Lease 7,788,978 - Total 37,930,690 15,519,330
Other Liability 97,743,802 7,909,323
Total 1,324,653,303 1,261,902,073

Particulars Current Year Previous Year Current Year Previous Year
Actuarial (gain)/loss 12,680,320 (6,425,020)

Domestic ownership
Total 12,680,320 (6,425,020)
Nepal Government - - - -
"A" class licensed institutions - - - -
Other licensed intitutions - - - -
Other Institutions - - - -
Particulars Current Year Previous Year Public 49.00 4,566,127,083 49.00 3,936,316,446
Discount rate 8.50% 8.50% Other (Promoter) 51.00 4,752,499,617 51.00 4,096,982,423
Foreign ownership
Expected return on plan asset 5.00% 5.00%
Total 100.00 9,318,626,700 100.00 8,033,298,870
Future salary increase 7.00% 7.00%
Withdrawal rate
Less than 35 years 5.00% 5.00%
More than 35 years 1.00% 1.00% Particulars Current Year Previous Year
Statutory general reserve 2,030,151,750 1,590,393,302

Exchange equilisation reserve 2,709,748 1,875,723
Corporate social responsibility reserve 46,620,195 32,205,376
Particulars Current Year Previous Year Capital redemption reserve - -
Regulatory reserve 456,653,653 220,583,641
Debt securities issued designated as at fair value through
- Investment adjustment reserve 1,500,000 16,500,000
profit or loss
Capital reserve - -
Debt securities issued at amortised cost -
Assets revaluation reserve - -
Total - Fair value reserve (21,612,669) (27,975,328)
Dividend equalisation reserve - -
Actuarial gain (9,847,334) (971,110)
Special reserve -
Particulars Current Year Previous Year Other reserve - -
Training and Development Fund 3,541,620 5,912,477
Redeemable preference shares
Deferred Tax Reserve -
Irredemable cumulative preference shares (liabilities component) Total 2,509,716,961 1,838,524,080
Others
Total
Contingent liabilities 46,617,514,924 40,080,346,292

Particulars Current Year Previous Year Undrawn and undisbursed facilities 10,594,093,200 4,785,089,685
Capital commitment 29,895,897
Ordinary shares 9,318,626,700 8,033,298,870
Lease Commitment
Convertible preference shares (equity component only) - - Litigation 38,205,122 31,390,009
Irredemable preference shares (equity component only) - - Total 57,279,709,142 44,896,825,986
Perpetual debt (equity component only) - -
Total 9,318,626,700 8,033,298,870
Acceptance and documentary credit 251,363,972 155,187,221

Particulars Current Year Previous Year Bills for collection (Letter of Credit) 7,251,141,964 7,748,756,736
Forward exchange contracts 3,958,908,280 3,368,151,276
Authorized Capital
Guarantees 34,225,777,049 28,708,857,058
220,000,000 Ordinary share of Rs. 100 each 22,000,000,000 10,000,000,000
Underwriting commitment
Issued capital Other commitments 930,323,659 99,394,000
93,186,267 Ordinary share of Rs. 100 each 9,318,626,700 8,033,298,870 Total 46,617,514,924 40,080,346,292
Subscribed and paid up capital
93,186,267 Ordinary share of Rs. 100 each 9,318,626,700 8,033,298,870

Total 9,318,626,700 8,033,298,870

Loans and advances to customers 9,353,312,283 8,188,381,379
Investment securities 338,193,480 331,246,974
Loan and advances to staff 22,541,726 15,379,655
Undisbursed amount of loans 7,315,415,207 1,700,780,134 Other Interest Income - -
Undrawn limits of overdrafts 2,802,996,526 2,761,010,750
Total interest income 9,822,370,722 8,559,690,846
Undrawn limits of credit cards 475,681,467 323,298,800
Income from Loan and Advances to customer includes cash interest income, accrued interest receivable from the customers whose
Undrawn limits of letter of credit overdue does not exceed 365 days.
Undrawn limits of guarantee
Total 10,594,093,200 4,785,089,685
Due to bank and financial institutions 20,247,554 73,666
Capital expenditure approved by relevant authority of the bank but provision has not been made in financial Due to Nepal Rastra Bank 36,346,277 44,472,474
statements Deposits from customers 6,181,169,703 5,849,229,270
Particulars Current Year Previous Year Borrowing - -
Debt securities issued - -
Capital commitments in relation to Property and Equipment
Subordinated liabilities - -
Approved and contracted for 29,895,897 -
Other Charges - -
Approved but not contracted for - -
Total Interest expense 6,237,763,535 5,893,775,409
Sub total 29,895,897 -
Capital commitments in relation to Intangible assets
Approved and contracted for - -
Approved but not contracted for - - Particulars Current Year Previous Year
Sub total - - Loan administration fees 1,059,474 4,338,517
Total 29,895,897 - Service fees 347,331,274 372,118,533
Consortium fees 31,879,590 33,723,787
Commitment fees 53,427 -
DD/TT/Swift fees 16,291,587 13,455,727
Particulars Current Year Previous Year Credit card/ATM issuance and renewal fees 47,761,395 40,998,246
Prepayment and swap fees 16,187,579 15,626,610
Operating lease commitments
Investment banking fees - -
Future minimum lease payments under non cancellable operating lease,
where the bank is lessee Asset management fees - -
Brokerage fees - -
Not later than 1 year -
Remittance fees 10,439,989 4,920,535
Later than 1 year but not later than 5 years 313,124,674
Commission on letter of credit 50,517,119 51,784,821
Later than 5 years 191,098,288
Commission on guarantee contracts issued 228,157,326 126,545,240
Sub total 504,222,962
Commission on share underwriting/issue - -
Finance lease commitments
Locker rental 2,888,375 2,139,000
Future minimum lease payments under non cancellable operating lease,
Others 14,304,947 1,137,080
where the bank is lessee
Not later than 1 year - Bancassurance Commission 8,555,138 69,973
Later than 1 year but not later than 5 years - DP related Fees 1,053,250 520,775
Later than 5 years - ATM Commission 62,200 40,000
Sub total - Mobile Banking Commission 781,404 83,473
Grand total 504,222,962 Other fees and commision income 3,852,955 422,859
Total Fees and Commission Income 766,872,082 666,788,096
Disputed tax payable amount filed for tax administration review in Inland Revenue Department has been disclosed as
litigation Contingent liabilities. After the final tax assessment of FY 2067-68, FY 2068-69, FY 2069-70, FY 2070-71
and FY 2071-72 from administrative review, the bank has filed case in Revenue Tribunal Office for the FY 2067-68 and
FY 2068-69, FY 2069-70 and FY 2070-71 and FY 2071-72. The disputes of FY 2066-67 is still under administrative Particulars Current Year Previous Year
review process.
ATM management fees - 661,240
VISA/Master card fees 23,343,647 14,255,235
Particulars Current Year Previous Year Guarantee commission - -

Brokerage - -
Cash and cash equivalent 6,653,278 11,692,625
DD/TT/Swift fees. 6,007,659 3,508,993
Due from Nepal Rastra Bank - -
Remittance fees and commission - -
Placement with bank and financial institutions 101,669,956 12,990,213
Other fees and commission expense 21,924,596 28,104,305
Loan and advances to bank and financial institutions - -
Total Fees and Commission Expense 51,275,901 46,529,774

Outsourced Staff Expenses 12,154,458 6,741,847
Particulars Current Year Previous Year Other employee expenses 35,472,149 19,668,403
Changes in fair value of trading assets - - Subtotal 538,388,871 386,905,946

Employees Bonus 349,946,190 244,742,440
Gain/loss on disposal of trading assets - -
Grand total 888,335,061 631,648,386
Interest income on trading assets - -
Dividend income on trading assets - -
Gain/loss on foreign exchange transation 234,439,303 177,877,342 Particulars Current Year Previous Year
Other - - Directors' fee 2,210,000 1,740,000
Net trading income 234,439,303 177,877,342 Directors' expense 1,312,617 1,209,814
Auditors' remuneration 3,051,000 1,538,200
Statutory Audit 1,243,000 1,243,000
Particulars Current Year Previous Year Revenue Audit 1,808,000 295,200
Foreign exchange revauation gain 3,336,101 7,199,955 Other audit related expense 1,242,135 448,370
Gain/loss on sale of investment securities 3,724,508 68,518,084 Professional and legal expense - 15,657
Fair value gain/loss on investment properties - - Office administration expense 246,203,191 196,931,709
Dividend on equity instruments 10,834,359 21,569,804 Operating lease expense 78,850,735 54,603,646
Gain/loss on sale of property and equipment (44,037) 1,807,121 Operating expense of investment properties - -
Gain/loss on sale of investment property - 2,566,854 Corporate social responsibility expense 7,573,104 909,812
Operating lease income - - Onerous lease provisions - -
Gain/loss on sale of gold and silver 7,759,552 8,707,522 Other Expenses 10,503,577 16,140,159
Other Operating Income 44,800,747 50,716,305
Other committee meeting Fees & Expenses 665,662 391,060
Total 70,411,231 161,085,645
Share Related Expenses 591,134 6,985,601
Written Off Expenses - -
Merger Related Expenses 853,943 -
Particulars Current Year Previous Year Other Expenses 8,392,838 8,763,498
Impairment charge/(reversal) on loan and advances to BFIs 1,864,202 8,924,960 Total 350,946,358 273,537,368
Impairment charge/(reversal) on loan and advances to customers 133,475,752 215,060,652

Impairment charge/(reversal) on financial Investment - - 4.37.1 Office Administrative Expenses
Impairment charge/(reversal) on placement with BFIs - - Particulars Current Year Previous Year
Impairment charge/(reversal) on property and equipment - - Water and Electricity 19,478,592 17,808,553
Impairment charge/(reversal) on goodwill and intangible assets - - Repair and Maintenance 15,040,132 16,146,213
Impairment charge/(reversal) on investment properties - - a. Building 471,102 579,956
Total 135,339,954 223,985,612 b. Vehicle 2,185,270 1,809,398
c. Computer and accessories 601,851 556,804
d. Office Equipment and Furniture 10,518,622 12,198,370
e. Others 1,263,287 1,001,685
Salary 217,692,742 165,469,838
Insurance 15,920,763 16,234,850
Allowances 155,343,050 120,289,737
Postage, Telex, Telephone, Fax 26,705,887 24,498,592
Gratuity Expense 12,793,640 13,607,330
Printing and Stationery 17,634,726 15,756,495
Provident Fund 21,528,086 16,421,426
Newspaper, Books and Journals 411,043 423,219
Uniform 7,897,495 6,477,470
Advertisement 4,096,443 1,847,971
Training & development expense 10,943,645 7,817,275
Donation 101,500 705,748
Leave encashment 25,137,050 1,912,000
Security Expenses 60,218,912 36,306,536
Medical - -
Deposit and Loan Guarantee Premium 14,089,065 11,496,827
Insurance 2,620,174 2,401,606
Travel Allowance and Expenses 9,323,133 10,552,448
Employees incentive - -
Entertainment - -
Cash-settled share-based payments - -
Annual/Special General Meeting Expenses 2,006,974 1,994,007
Pension expense - -
Others 61,176,022 43,160,251
Finance expense under NFRS 9,116,735 4,125,116
a. Power & Fuel 8,746,086 7,114,590
Other expenses related to staff 75,316,254 48,384,148
Dashain Expense 27,689,647 21,973,898 b. Business Promotion 14,073,128 2,636,622

c. Cleaning Expenses 5,747,902 4,893,846
d. Rates and Taxes 5,647,802 4,942,322
e. Technical & Consultancy Fee 2,116,710 1,991,650 For the year ended 31 Ashadh 2076
f. Expenses for Capital Items 3,903,079 2,239,162
g. Others 20,941,316 19,342,059
Total 246,203,191 196,931,709
2,198,792,243 1,726,246,109
(439,758,449) (345,249,222)
(834,025) (1,799,989)
Depreciation on property and equipment 76,429,688 66,644,019
- -
Depreciation on investment property - -
(21,987,922) (17,262,461)
Amortisation of intangible assets 4,487,132 3,484,254
2,370,857 (541,508)
Total 80,916,820 70,128,273
7,573,104 (7,595,981)
1,746,155,808 1,353,796,948

(20,411,087) (171,891,654)
Recovery of loan written off - 21,587,289
- -
Other income - -
- -
Total - 21,587,289
d. Short loan loss provision on Non Banking Assets (-)/reversal (+) (143,029,676) (15,528,305)
(41,169,246) (33,163,681)
Particulars - -
Loan written off g. Bargain purchase gain recognised (-)/reversal (+) - -
Redundancy provision (8,876,224) (971,110)
Expense of restructuring 6,362,659 (27,975,328)
Other expense. 1,539,032,234 1,104,266,869
Total
Current tax expense

Current year 958,083,276 727,917,890
Adjustments for prior years 32,732,194 942,262
Deferred tax expense
Origination and reversal of temporary differences (40,092,004) (7,681,864)
Changes in tax rate -
Recognition of previously unrecognised tax losses -
Total income tax expense 950,723,466 721,178,288

Profit before tax 3,149,515,709 2,447,424,397
Tax amount at tax rate of 30% 944,854,713 734,227,319
Effect of NFRS Remeasuremnt - -
Add: Tax effect of expenses that are not deductible for tax purpose 45,989,502 27,757,167
Less: Tax effect on exempt income
Add/less: Tax effect on other items (32,760,938) (34,066,595)
Adjustment of Prior Years Tax and tempory Difference 32,732,194 (6,739,602)
Total income tax expense 990,815,470 721,178,288
Effective tax rate 31.46% 29.47%

5. DISCLOSURES AND ADDITIONAL as well as in totality; although the qualitative aspect of inflows and outflows both on a day-to-day basis and its capital base to support business growth. The
INFORMATION the credit worthiness is also not ignored. over a series of specified time periods as presented bank has also acquired other financial institutions to
in the NRB Ni.Fa.No.5.1 under NRB Directives No. strengthen its capital base.
Regular monitoring of the credit portfolio ensures
5.1 Risk Management 5. Similarly different tolerance limits (Loan to Deposit
that the Bank does not run the risk of concentration
As a financial intermediary, the Bank is exposed to of portfolio in a particular business sector or a
Ratio, Loan to Capital Ratio etc.) are set to Manage 5.1.6 Fair value of financial assets and liabilities
liquidity risk.
array of risks through its daily operations. The Bank's single borrower. Similarly, the Bank also exercises Fair value is a market-based measurement, not an
key risk exposures include credit, market, liquidity controlled investment policy with adequately equipped 5.1.4 Operational Risk entity specific measurement. For some assets and
and operational risks. However, with the rapid resource looking after the investment decisions. liabilities, observable market transactions or market
technological innovations/ IT based products and Operational risk is the risk of negative effects on
The organization structure created for Credit Risk information might be available. For other assets and
solutions introduced by the Bank, due consideration the financial result and capital of the bank caused
Management is as follows: liabilities, observable market transactions and market
should be given to information systems risk as by omissions in the work of employees, inadequate
• The Board of Directors internal procedures and processes, inadequate information might not be available. However, the
well. Proactive identification of such risk exposures objective of a fair value measurement in both cases is
is of high importance to ensure the sustainability • The Risk Management Committee management of information and other systems, and
unforeseeable external events. the same – to estimate the price at which an orderly
and profitability of the Bank. In response to an • Credit Risk Management Unit under Risk transaction to sell the asset or to transfer the liability
increasingly dynamic and competitive operating Management Department Bank has created one separate unit of operational risk would take place between market participants at the
landscape, evolving risks and significant regulatory under Risk Management Department. Operational measurement date under current market conditions
developments, there is an ongoing imperative to 5.1.2 Market Risk Risk Policy and Operation Manual has been (i.e. an exit price at the measurement date from the
enhance risk management. developed to make its operation secure through a perspective of a market participant that holds the
Among various components of market risks, foreign
Bank Risk Management is the process by which exchange risk is the predominant risk, which system of procedural in each operational transaction. asset or owes the liability).
Management satisfied these needs by identifying key incorporates the volatility of relevant foreign exchange There is a compliance department which regularly
monitors regarding AML/CFT issues. Fair values are determined according to the following
risks,obtaining consistent,understandable,operation and the correlation of their movements with the home hierarchy:
risk measures, choosing which risk to reduce and currency. The net open position taking is done with- The Bank has developed Business Continuity plan to
which to increase and what means and establishing in the prescribed authority limits delegated to the ensure continued operation in to face the emergency, Level 1 inputs
procedures to monitor the resulting risk position. treasury dealers / bank's management. Similarly, an disaster, and crisis. The Bank has maintained in- Level 1 inputs are quoted prices (unadjusted) in
effective interest risk management process is placed house cold site for disaster recovery. The disaster active markets for identical assets or liabilities that the
A robust risk management framework is in place which
to mitigate gap risk and price risk. recovery site and production server site have been
supports the efficient management and mitigation of bank can access at the measurement date. Held for
the said risk exposure. Bank risk management committee has approved the kept in well-maintained and in separate geographic trading and available for sale investments have been
market risk policy of the Bank. As for the monitoring location. Periodic drill is conducted to assess the recorded using Level 1 inputs.
Risk Management Framework functioning of DRS.
of market and liquidity risk, the Bank has an active
Risk is identified and managed as part of a Risk Assets and Liability Management Committee (ALCO) The bank has also performed IS audit in periodic basis Level 2 inputs
Management Framework. The Board of Directors in place which meets regularly and takes stock of to identify Vulnerability Assessment and Penetration Level 2 inputs are inputs other than quoted prices
has ultimate responsibility for the oversight of risk, the Bank's assets and liability position and profile testing. included within Level 1 that are observable for the
determining risk appetite levels, formulating risk of assets & liabilities, monitors risks arising from asset or liability, either directly or indirectly.
policies and ensuring the effectiveness of the risk changes in exchange rates in foreign currencies. All The Bank has adopted dual control mechanism in its all
management processes and procedures in place. foreign exchange positions are managed by treasury operational activities where each and every financial Level 3 inputs
The Risk Management Committee assists the Board consisting of front office dealers with specific dealing and non financial transaction is subject to approval Level 3 inputs are unobservable inputs for the asset
in the discharge of its risk related duties and provides limits and an independent back office. The back office from an authority higher than the transaction initiator. or liability.
independent oversight of all risk related aspects by executes the deals made by the dealers and also Regular review meetings are conducted to assess the
ensuring the adequacy and effectiveness of the monitors the liquidity position of the Bank. For the adequacy of risk monitoring mechanism and required 5.2 Capital management
implementation of risk governance structures, policy purpose of proper check and control, the front dealing changes are made as and when felt necessary.
Independent reconciliation unit is established to a) Qualitative Disclosures
frameworks, standards and processes. Furthermore, room of treasury and the back office has different
the Credit Committee, Anti Money Laundering reporting line. Different types of Management report conduct daily reconciliation of all Nostro/agency i. Objectives
Committee and Audit Committee support the Board such as Gap analysis of different interest sensitive accounts, Inter-Branch and Inter-Department account The Bank actively manages its capital to meet
in discharging its risk related duties. Executive assets and liability, sensitive analysis of interest under direct supervision of Head of Finance. The Bank regulatory norms and current and future business
committees namely, the Assets and Liabilities sensitive assets and liabilities is prepared and discuss has independent internal audit, which reports to the needs considering the risks in its businesses,
Management Committee and the Risk Management in Assets and Liability Management Committee Audit Committee of the Bank. The Audit Committee expectation of rating agencies, shareholders and
Committee play a critical role in ensuring the effective (ALCO) to monitor interest rate risk of the bank. meets frequently and reviews the business process investors, and the available options of raising capital.
implementation of the Banks risk management and financial position of the Bank. In order to have
5.1.3 Liquidity Risk better focus on managing operational risks across ii. Organizational Set-up
processes. The overall Risk Management Framework The capital management framework of the Bank is
is divided into following five processes: Liquidity Risk is that a bank is unable to fund the branches and to monitor them from central level, the
Bank has separate branch coordinator. administered by the Finance Department and the
increase in assets and/or meet its obligations as they
• Risk Identification Risk Management Department under the supervision
come due. Management of liquidity risk is not only of the Board and the Risk Committee.
• Risk Measurement crucial to the ongoing viability of a bank; but also has 5.1.5 Capital Risk
• Risk Pricing series of impact on whole banking system. A series The bank's regulatory capital is divided into two tiers iii. Regulatory Capital
• Risk Monitoring and Control of measures and market information are used across defined by Nepal Rastra Bank. Tier I capital comprises Nepal Rastra Bank has issued Basel III transaction
the Bank to monitor both short and long term liquidity.
• Risk Mitigation mainly shareholders equity. Tier 2 capital comprises arrangement for capital ratios with effect from Mid
Liquidity and Market Risk are monitored by ALCO and subordinated debts and provisions/ reserves. The July, 2016 (Shrawan 2073). Capital ratios and
5.1.1 Credit Risk Senior Management Team on a regular basis. Bank has developed procedures meant to ensure deduction from common equity will be fully phased-
The board has ensured that the bank has necessary that compliance with both current and potential future in and implemented as on mid July 2019. The phase
Credit risk is the potential loss that arise from requirements are understood and that capital plans
customers/borrowers and counterparties failing to liquidity risk management framework and bank is in arrangement for banks is indicated in the following
capable of confronting uneven liquidity scenarios. The are aligned to business need. The bank has regularly table:
honor their financial or contractual obligations to the issued bonus shares and right shares to strengthen
Bank bank has formulated liquidity policies, contingency
funding planning which are recommended by senior
The Bank has a guideline to assess and grade management/ALCO and approved by the Board
individual counterparties based on risk. The principal of Directors. The bank utilizes flow measures to
objectives of credit risk measurement is to produce determine its cash position. A maturity ladder analysis
the most assurance possible assessment of the credit estimates a bank's inflows and outflows and thus
risk to which the Bank is exposed, from the level of net deficit or surplus (GAP) over a time horizon. A
individual facilities up to the total portfolio in segment maturity ladder is a useful device to compare cash

Basel III in Nepal
The Internal Audit monitors compliance with policies Stress and Scenario Analysis:
and standards and the effectiveness of internal control Stress test has been conducted for the categories -
Mid July structures across the Bank through its program of
Transition Period
Credit Shock, Interest Rate Shock, Exchange Rate
business/unit audits. The Internal Audit function is Shock, Equity Price Shock and Liquidity Shock.
2018 2019
focused on the areas of greatest risk as determined
Minimum Common Equity Capital Ratio 4.50% 4.50% by a risk-based assessment methodology. Internal Stress test aims to assess bank's capital adequacy ratio
Audit reports regularly to the Audit Committee. The (CAR), level of non-performing loan (NPL) and liquidity
Capital Conservation Buffer 2.00% 2.50% findings of all adverse audits are reported to the Chief ratio under different scenarios and bank's maximum
Minimum common equity plus capital conservation buffer 6.50% 7.00% Executive Officer and Business Heads for immediate level of tolerance capacity under each category.
corrective actions.
Minimum Tier 1 Capital (Excluding conservation buffer) 6.00% 6.00% a. Credit shock is assessed mainly under
Minimum Total Capital (Excluding conservation buffer) 9.00% 8.50% l Assets and Liability Committee (ALCO) following scenarios:
The ALCO, chaired by Chief Executive Officer, ensures i. Downgrading overall loan exposures
Minimum Total Capital (including conservation buffer ) 11.00% 11.00%
functioning of the banking business in line with the ii. Default in real estate exposures
Counter Cyclical Buffers* 0-2.5% 0-2.5.00% set procedures and processes and recommends for iii. Default by bank's top exposures
Leverage Ratio Offsite Monitoring 4.00% Migration to Pillar 1
necessary steps to address the risk associated with
liquidity, movement in interest rate, exchange rate b. Market shock is assessed mainly under
Liquidity coverage ratio LCR 100% LCR 100% and equity price and other risks. following scenarios:
Net stable funding ratio Implemented i. Changes in Interest Rate of Deposit & Loan
l Stress and Scenario Testing ii. Exchange Rate Depreciation & Appreciation
SIFI Measures NRB will issue Guidelines
Description of method iii. Fall in Equity Prices
*NRB Directive 2076 has declared buffer of 2% which is mandatory within Ashadh 2077. Stress Test is done as per Stress Testing Guidelines c. Liquidity Shock is assessed mainly under
issued by the Nepal Rastra Bank as well as internally following Scenarios:
iv. Internal Assessment of Capital to ensure the integrity of the overall management assessed stress levels on a quarterly basis. Credit
The Bank's capital management framework process. Risk Stress, Market Risk Stress, and Liquidity i. Withdraw of Deposit by Top Depositors
includes a comprehensive internal capital adequacy Risk Stress are assessed for different scenario are ii. Withdraw of Deposit by Certain percentage
assessment process (ICAAP) conducted annually l Comprehensive assessment of risks assessed calibrating the results of the test to the of Total exposure
which determines the adequate level of capitalization Head of Risk Department, along with his team, is capital adequacy ratio (CAR), non performing loans iii. Default of top counter parties in lending
for the Bank to meet regulatory norms and current responsible for overall risk management of the Bank (NPL) and other factor related to each risk driver of
and future business needs, including under stress which includes managing, assessing, identifying, the bank.
scenarios. The ICAAP encompasses capital planning, monitoring and reducing pertinent macro and micro-
identification and measurement of material risks and economic level business risks that could interfere with b) Quantitative Disclosures
the relationship between risk and capital. The element Banks objective and goals and whether the Bank is
of ICAAP does internal assessment of capital as in substantial compliance with its internal operating 1. Tier 1 capital and a breakdown of its components:
follows: policies and other applicable regulations and
procedures, external, legal, regulatory or contractual Core Capital (Tier 1) Amount (Rs.)
l Board and senior management oversight
The Board of Directors is responsible for setting requirements on a continuous basis. Further, Head of Paid up Equity Share Capital 9,318,626,700
the risk appetite of the bank, and ensuring that the Risk Department ensures integration of all major risk
bank's business remains within the desired limits. in capital assessment process. Statutory General Reserves 2,030,151,750
Management should understand the nature and level Proposed Bonus Equity Shares -
of various risks that the bank is confronting in the l Risk Management Committee (RMC)
course of different business activities and how this Board level risk management committee has been set Share Premium -
risk relates to capital levels. up under NRB Directive for ensuring/reviewing bank's Retained Earnings 1,575,645,633
risk appetite is in line with the policies.
Bank management is responsible for understanding
Un-audited current year cumulative profit -
the nature and level of risk being taken by the l Monitoring
bank and how this risk relates to adequate capital Monitoring and reporting of all risks, including credit, Capital Redemption Reserve -
levels. It is also responsible for ensuring that the operation, market, liquidity and funding and interest
form and sophistication of the risk management Other Free Reserve -
rate risks are identified, escalated and monitored. The
processes is commensurate with the complexity of its Bank has an adequate system in place for monitoring Less: Fictitious Assets -
operations. A sound risk management process, thus, and reporting risk exposures and assessing how Less: Intangible Assets 7,708,980
is the foundation for an effective assessment of the the changing risk profile affects the need for capital.
adequacy of a bank's capital position. The decisions Less: Deferred Tax Assets 74,332,927
The board of directors and senior management
made by the management are regularly reviewed by on a regular basis receive the report regarding the Less: Investment in equity in licensed Financial Institutions 51,023,000
the Board. risk profile of the bank and its capital needs. All the
material risks are identified, measured, monitored and Total Core Capital (Tier I) 12,791,359,174
l Sound capital assessment reported by the respective risk owner.
Crucial component of an effective ICAAP is the
assessment of capital. In order to be able to make a l Internal Control Review 2. Tier 2 capital and a breakdown of its components:
sound capital assessment, the bank has the following: The internal control structure of the Bank is essential Supplementary Capital (Tier 2) Amount
 Policies and procedures designed to ensure that for sound capital assessment process. Effective
General loan loss provision 848,896,651
the bank identifies, measures, and reports all control of the capital assessment process includes an
material risks; independent review and involvement of both internal Exchange Equalization Reserve 2,709,748
as well as external audits wherever appropriate. The
 A process that relates capital to the level of risk; Investment Adjustment Reserve 1,500,000
Bank is committed to conduct the regular review of
 A process that states capital adequacy goals its risk management process to ensure its integrity, Total Core Capital (Tier II) 853,106,398
with respect to risk, taking account of the bank's accuracy, and reasonableness. The effectiveness
3. Detailed information about the Subordinated Term Debts with information on the outstanding amount,
of the Bank's internal control system is reviewed
strategic focus and business plan; and maturity, amount raised during the year and amount eligible to be reckoned as capital funds:
regularly by the Board, its committees, Management
 A process of internal control reviews and audits Nil
and Internal Audit.

4. Deductions from Capital:
-
-
4,482,834
42,929,481,305
-
227,392,802
1,298,697,979
-
-
771,829,609
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
The bank has deducted to the following items in calculation of Tier I Capital:
Exposures (f=d*e)
Risk Weighted
Deduction from Tier I Capital Amount
Intangible Assets 7,708,980
Deferred Tax Assets 74,332,927
Investment in equity in licensed Financial Institutions 51,023,000
-
Total Deduction from Tier I Capital 133,064,907
150%
100%
20%
20%
50%
100%
20%
20%
100%
20%
50%
100%
150%
0%
100%
100%
50%
100%
150%
0%
20%
0%
0%
0%
0%
Risk weight (e)
0%
0%
0%
5. Total Qualifying Capital:
Total Qualifying Capital Amount
Core Capital (Tier 1) 12,791,359,174
Supplementary Capital (Tier 2) 853,106,398
-
-
22,414,169
42,929,481,305
-
1,136,964,008
2,597,395,959
3,859,148,043
-
-
-
-
-
-
-
-
-
-
-
-
-
-
193,371,062
543,196,336
8,862,695,000
2,503,874,208
7,807,981,176
Net Value (d=a-b-c)
Total qualifying capital 13,644,465,572
6. Capital Adequacy Ratio:

Capital Adequacy Ratio Percentage
Tier 1 Capital to Total Risk Weighted Exposures 11.97%

Tier 1 & Tier 2 Capital to Total Risk Weighted Exposures 12.76%
-
-
-
-
295,849,241
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Eligible CRM (c )
7. Risk weighted exposures for credit risk, operational risk and market risk
Risk Weighted Exposures Amount
Risk weighted Exposures for Credit Risk 98,363,009,231
Risk weighted Exposures for Operational Risk 3,979,672,975
Risk weighted exposures for Market Risk 136,109,724
-
Total Risk Weighted Exposures (Before adjustments of Pillar II) 102,478,791,930
-
-
-
6,984,781
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
provisions (b)
Adjustment under Pillar II
Specific
ALM policies & practices are not satisfactory, add 1% of net interest income to RWE -
Add ....% of the total deposit due to insufficient Liquid Assets -
Add RWE equivalent to reciprocal of capital charge of 4 % of gross income. 1,336,832,515
-
Overall risk management policies and procedures are not satisfactory. Add 3% of RWE 3,074,363,758
-
-
22,414,169
43,232,315,327
-
1,136,964,008
2,597,395,959
-
3,859,148,043
-
-
-
-
-
-
-
-
-
-
-
-
-
8,862,695,000
193,371,062
543,196,336
2,503,874,208
7,807,981,176
Book Value (a)
If desired level of disclosure requirement has not been achieved, Add.....% of RWE -
Total Risk Weighted Exposures (After Bank's adjustments of Pillar II) 106,889,988,203
8. Risk weighted exposure under each of 11 categories

Credit Risk Claim RWE
-
Claims on Domestic banks that meet capital adequacy requirements
Claims on BIS,IMF,ECB,EC and on Multilateral Development Banks
Claims on Govt. and Central Bank 19,911,117,782 -
Claims on Foreign Government and Central Bank(ECA rating 4-6)

Claims on Foreign Government and Central Bank(ECA rating 0-1)
Claims on foreign bank incorporated in SAARC region operating

Claims on Foreign Government and Central Bank(ECA rating 7)
Claims on Other Financial Entities - -
with a buffer of 1% above their respective capital requirement

Total risk weighted exposure calculation table:
Claims on Domestic banks that do not meet capital adequacy

Claims on Banks 7,615,922,178 2,302,403,224
Claims on Corporate and Securities Firm 43,232,315,327 42,929,481,305
i. Risk Weighted Exposure of Credit Risk

Claims on Regulatory Retail Portfolio 13,653,867,715 8,039,430,043
A. Balance Sheet Exposures
Claims on other Multilateral Development Banks

Investment in Nepalese Government Securities
Claims on Secured by Residential Properties 4,870,752,274 2,936,824,337
Investment in Nepal Rastra Bank securities

Claims on Secured by Commercial Real Estate 3,940,807,201 3,940,807,201
Claims on Domestic Public Sector Entities
Claims on Public Sector Entity (ECA-3-6)

Claims on Public Sector Entity (ECA 0-1)
Claims on Public Sector Entity (ECA- 2)
Claims on Foreign Corporate (ECA 0-1)

Claims on Public Sector Entity (ECA -7)
Past due Claims 1,322,553,835 1,310,386,877
All claims on Government of Nepal

High Risk Claims 4,031,382,522 3,097,970,324
Claims on Foreign Bank (ECA 3-6)

Claims on Foreign Bank (ECA 0-1)
Claims on Foreign Bank (ECA 7)

Claims on Foreign Bank (ECA 2)
Balance with Nepal Rastra Bank
All claims on Nepal Rastra Bank
Claims on Domestic Corporate

Lending against Securities (Bond & Shares) 2,064,461,653 2,058,792,141
recognized by the framework

Other Assets 3,224,803,089 1,916,480,126
Off Balance Sheet Items 57,279,709,142 29,830,433,653
Total 161,147,692,719 98,363,009,231
Cash Balance
requirements
Gold
9.

70
Specific Risk Weighted
A. Balance Sheet Exposures Book Value (a) Eligible CRM (c ) Net Value (d=a-b-c) Risk weight (e)
provisions (b) Exposures (f=d*e)
Claims on Foreign Corporate (ECA 2) - - - - 50% -
Claims on Foreign Corporate (ECA3-6) - - - - 100% -
Claims on Foreign Corporate (ECA 7) - - - - 150% -
Regulatory Retail Portfolio (Not Overdue) 13,653,867,715 - 2,934,627,657 10,719,240,058 75% 8,039,430,043
Claims fulfilling all criterion of regulatory retail except granularity - - - - 100% -
Claims secured by residential properties 4,772,208,758 - - 4,772,208,758 60% 2,863,325,255
Claims not fully secured by residential properties - - - - 150% -
Claims secured by residential properties (Overdue) 98,543,515 25,044,433 - 73,499,082 100% 73,499,082
Claims secured by Commercial real estate 3,940,807,201 - - 3,940,807,201 100% 3,940,807,201
Past due claims (except for claim secured by residential properties) 1,322,553,835 448,962,583 - 873,591,252 150% 1,310,386,877
High Risk claims 4,031,382,522 6,300,000 1,959,768,973 2,065,313,550 150% 3,097,970,324
Lending against securities (bonds & shares) 2,064,461,653 - 5,669,512 2,058,792,141 100% 2,058,792,141
Investments in equity & other capital instruments of institutions
listed in the stock exchange 500,858,650 - - 500,858,650 100% 500,858,650
Investments in equity & other capital instruments of institutions not
listed in the stock exchange 23,244,000 - - 23,244,000 150% 34,866,000
Staff loan secured by residential property 129,328,248 26,496,500 - 102,831,748 50% 51,415,874
Interest Receivable/claim on government securities 82,023,800 - - 82,023,800 0% -
Cash in transit and other cash items in the process of collection 199,898,022 - - 199,898,022 20% 39,979,604
Other Assets (as per attachment) 2,289,450,368 1,000,090,371 - 1,289,359,998 100% 1,289,359,998
TOTAL 103,867,983,577 1,513,878,668 5,195,915,383 97,158,189,526 68,532,575,578

Risk
Specific Eligible CRM Net Value Risk Weighted
B. Off-Balance Sheet Exposures Book Value (a) weight
provisions (b) (c ) (d=a-b-c) Exposures (f=d*e)
(e)
Revocable Commitments - - - - 0% -
Bills under Collection - - - - 0% -
Forward exchange contract liabilities 3,958,908,280 - - 3,958,908,280 10% 395,890,828
LC Commitments with Original Maturity upto 6 months (domestic counterparty) 3,835,875,690 - 115,067,255 3,720,808,435 20% 744,161,687
Foreign Counterparty (ECA Rating 0-1) - - - - 20% -
Foreign Counterparty (ECA Rating 2) - - - - 50% -

LC Commitments with Original Maturity Over 6 months(domestic counterparty) 3,415,266,274 - 173,491,674 3,241,774,599 50% 1,620,887,300
Bid Bond and Performance Bond(domestic counterparty) 21,498,034,393 - 831,303,145 20,666,731,248 50% 10,333,365,624
Underwriting commitments - - - - 50% -
Lending of Bank's securities or posting of securities as collateral - - - - 100% -
Repurchase agreements, Assets sale with recourse - - - - 100% -
Advance Payment Guarantee 12,727,742,657 - 85,950,184 12,641,792,472 100% 12,641,792,472
Financial Guarantee - - - - 100% -
Acceptances and Endorsement 251,363,972 - - 251,363,972 100% 251,363,972
Unpaid portion of partly paid shares and securities - - - - 100% -
Irrevocable Credit commitments (Short term) 8,332,959,944 - - 8,332,959,944 20% 1,666,591,989
Irrevocable Credit commitments (Long term) 2,261,133,256 - - 2,261,133,256 50% 1,130,566,628
Claims on foreign bank incorporated in SAARC region operating with a buffer of 1% above
their respective capital requirement - - - - 20% -
Other Contingent Liabilities 951,036,203 - - 951,036,203 100% 951,036,203
Unpaid Guarantee Claims 47,388,475 - - 47,388,475 200% 94,776,950
Total 57,279,709,142 - 1,205,812,259 56,073,896,883 29,830,433,652
Total RWE for credit risk Before Adjustment (A)+(B) 161,147,692,719 1,513,878,668 6,401,727,642 153,232,086,409 98,363,009,230
Adjustment under Pillar II -
71
Add: 10% of the Loan and facilities in excess of Single Obligor Limits (6.4 a 3) -
Add: 1% of the contract (sale) value in case of the sale of credit with recourse (6.4 a 4) -
Total RWE for credit risk ( After Bank's Adjustment of Pillar II) 161,147,692,719 1,513,878,668 6,401,727,642 153,232,086,409 98,363,009,230
i. Risk Weighted Exposure of Operational Risk 10. Amount of NPAs
Particulars Year 1 Year 2 Year 3 Classification of Loan Gross NPA Net NPA
Net Interest Income 1,588,461,085 1,931,054,278 2,665,915,437 Restructured/Rescheduled Loan - -
Commission and Discount Income 150,562,047 725,657,786 666,788,096 Sub-Standard Loan 230,040,112 172,530,084
Other Operating Income 331,044,044 184,185,328 153,885,690 Doubtful Loan 229,234,726 114,617,363
Exchange Fluctuation Income 100,813,834 122,512,091 185,077,297 Loss Loan 301,753,625 -
Additional Interest Suspense during the period (38,285,872) (16,505,561) 4,990,560
11. NPA ratios
Gross Income (a) 2,132,595,138 2,946,903,922 3,676,657,081
Gross NPA to Gross Loan & Advance 1.00%
Alfa (b) 15% 15% 15%
Net NPA to Net Loan & Advances 0.38%
Fixed Percentage of Gross Income [c=(a*b)] 319,889,271 442,035,588 551,498,563
Capital Requirement for operational risk (d) (average of c) 437,807,808 12. Movement of Non-performing Assets
Risk Weight (reciprocal of capital requirement of 11%) in 9.09 Particulars Opening Balance Closing Balance Difference
times (e)
Sub-standard Loan 126,285,052 230,040,112 103,755,060
Equivalent Risk Weight Exposure[f=(d*e)] 3,979,672,975
Doubtful Loan 111,355,246 229,234,726 117,879,480
PILLAR II ADJUSTMENT -
Loss Loan 365,728,649 301,753,625 (63,975,024)
If Gross Income for all the last three years is negative (6.4 a 8) -
Total Credit and Investment (net of Specific Provisions) -
13. Write off of loans and interest suspense
Capital Requirement for operational risk (5%) -
Particulars Opening Balance Closing Balance Difference
Risk Weight (reciprocal of capital requirement of 11%) in times 9.09
Equivalent Risk Weight Exposure[g] - Loan and Interest Suspense write-off - - -
Equivalent Risk Weight Exposure [h=f+g] 3,979,672,975

14. Movements in loan loss provisions and Interest suspense
ii. Risk Weighted Exposure of Market Risk
i. Movement of Loan Loss Provision
Currency Open Position (FCY) Exchange Rate Open Position (NPR) Relevant Open Position Particulars Opening Balance Closing Balance % Change
Pass Loan 690,104,520 738,595,194 7.03%
INR 182,083,096 1.60 291,332,954 291,332,954
Watch list 56,590,635 114,786,237 107.25%
USD 12,209 109.55 1,337,514 1,337,514
Sub-standard Loan 31,571,263 57,510,028 82.16%
GBP 1,590 136.09 216,443 216,443
Doubtful Loan 55,677,623 114,617,363 105.86%
EUR 2,652 122.71 325,407 325,407
Loss Loan 365,728,649 301,753,625 (17.49%)
THB 43,464 3.53 153,428 153,428
Personal Guarantee 1,175,803 6,426,000 446.52%
CHF 653 110.72 72,335 72,335
ii. Movement of Interest Suspense
AUD 6,144 76.78 471,711 471,711
Particulars Opening Balance Closing Balance % Change
CAD 8,995 83.60 751,996 751,996
Interest Suspense 322,919,211 397,806,710 23.19%
SGD 2,869 80.44 230,751 230,751
JPY 1,979,303 1.01 1,997,117 1,997,117 15. Details of additional loan loss provisions
HKD 7,792 14.01 109,169 109,169 Particulars Opening Balance Closing Balance Additional Provision
DKK 46,124 16.42 757,350 757,350
Pass Loan 690,104,520 738,595,194 48,490,674
SEK 452 11.66 5,270 5,270
Watch List 56,590,635 117,286,237 60,695,602
SAR 20,036 28.98 580,641 580,641
Sub-standard Loan 31,571,263 57,510,028 25,938,765
QAR 2,875 29.85 85,809 85,809
Doubtful Loan 55,677,623 114,617,363 58,939,740
AED 15,781 29.59 466,958 466,958
Loss Loan 365,728,649 301,753,625 (63,975,024)
MYR 10,559 26.47 279,508 279,508 Personal Guarantee 1,175,803 6,426,000 5,250,197
KRW 53,258 0.09 4,932 4,932
CNY 11,536 15.90 183,419 183,419 16. Segregation of investment portfolio into held for trading, held to maturity, available for sale and
Investment in associates category
KWD 305 356.47 108,617 108,617
Investment Portfolio Amount Rs
BHD - 288.30 - -
Held for Trading -
Total Open Position (a) 299,471,329 299,471,329
Held to Maturity -
Fixed Percentage (b) - 5% Investment Securities measured at Amortized Cost
Capital Charge for Market Risk [c=(a*b)] 14,973,567 Particulars Amount Rs AIR Amount at Amortized Cost
Treasury Bills - - -
Risk Weight (reciprocal of capital requirement of 11%) in times (d) 9.09 Development Bond 8,862,695,000 82,023,800 8,944,718,800
Equivalent Risk Weight Exposure [e=(c*d)] 136,109,724 Foreign Bond 662,999,831 10,335,237 673,335,068
Grand Total 9,525,694,831 92,359,037 9,618,053,868

Placement with Bank and Financial Institutions 5.4 Operating Segment Information segment and assess its performance, and
Particulars Amount AIR Total Amount 5.4.1 General Information • for which discrete financial information is
available.
Placement with Domestic BFIs 13,841,100 219,138 14,060,238 An operating segment is a component of an entity:
• that engages in business activities from which it Not every part of an entity is necessarily an operating
Placement with Foreign BFIs 1,098,500,000 6,169,479 1,140,669,479 may earn revenues and incur expenses (including segment or part of an operating segment. For example,
Grand Total 1,112,341,100.00 6,388,617 1,118,729,717 revenues and expenses relating to transactions a corporate office or some functional departments
with other components of the same entity), may not earn revenues or may earn revenues that are
only incidental to the activities of the Bank and would
Available for Sale • whose operating results are regularly reviewed not be operating segments. For the purposes of this
Investment in Equity measured at FVTOCI by the banks top level management to make NFRS, the Bank's post-employment benefit plans are
decisions about resources to be allocated to the not operating segments.
Particulars Amount(Rs.) Fair Value(Rs.)
5.4.2 Information about profit or loss, assets and liabilities
Nepal Doorsanchar Company Ltd. (NTC) 88,507,473 91,766,367
Amount in Million
Neco Insurance Company Ltd. 172,866,982 124,735,545 Particulars Banking Treasury Cards Others Total
Nerude Laghubitta Ltd-Promoter 13,303,198 94,923,388 (a) Revenue from external customers 10,296.21 260.09 50.11 287.69 10,894.09
NLG Insurance Company Ltd. 127,566,173 82,155,792 (b) Intersegment revenues - - - - -
Prabhu Capital Ltd 1,500,000 1,500,000 (c) Net Revenue 10,296.21 260.09 50.11 287.69 10,894.09
NEPS Ltd. 15,000,000 15,000,000 (d) Interest Revenue - - - - -
Banking Finance & Insurance Institute of Nepal Ltd. 3,000,000 3,000,000 (e) Interest Expense 6,217.52 20.25 - - 6,237.76
Nepal Clearing House Ltd. 2,600,000 3,744,000 (f) Net interest revenue (b) 4,078.69 239.85 50.11 287.69 4,656.33
Global IME Samunnat Scheme-1 37,978,706 31,826,134 (g) Depreciation and Amortization 80.92 80.92
Laxmi Equity Fund 58,455,870 44,601,829 (h) Segment profit/(loss) 3,997.77 239.85 50.11 287.69 4,575.41
NABIL Equity Fund 11,265,040 10,510,282 Entity's interest in the profit or loss
(i) of associates accounted for using
NIBL Pragati Fund 10,298,322 7,661,952 equity method - - - - -
NMB Hybrid Fund 12,636,128 12,673,758 (j) Other material non-cash items: - - - - -
Nepal Life Insurance Ltd. - 3,604 (k) Impairment of assets 134.07 - 1.27 - 135.34
Grand Total 554,977,892 524,102,650 (l) Segment assets 89,154.69 13,074.59 14.41 12.14 102,255.83
(m) Segment liabilities 87,040.12 48.23 36.86 1,726.63 88,851.84
Investment in Associates Amount (Rs.)
Mahila Sahayatra Microfinance Bittiya Sanstha Ltd. 14,000,000 5.4.3 Measurement of operating segment profit or business segments. Investment balances, NRB
loss, assets and liabilities balance, income from investment, forex income
Mero Mircofinance Bittiya Sanstha Ltd. 37,023,000
are reported in Corporate Office under Province 3.
The bank has identified the key segments of business
Segment wise depreciation is not separated and
17. Summary of the bank's internal approach 5.3 Classification of financial assets and on the basis of nature of operations that assists the
shown in Banking as it is impracticable to segregate.
to assess the adequacy of its capital to support financial liabilities Executive Committee of the bank in decision making
current and future activities: process and to allocate the resources. It will help Since, there is no policy regarding Intra segment revenue
l Overall risk of the bank is monitored by risk NAS 39 requires financial assets to be classified in
the management to assess the performance of the and costs, Inter-segment accounting has not been done.
management committee and Audit Committee one of the following categories:
where the board members are involved. l Financial assets at fair value through profit or 5.4.4 Reconciliations of reportable segment revenues, profit or loss, assets and liabilities
l To ensure sound capital assessment process; the loss (a) Revenue Amount in Million
board, management, audit committee, internal • Held for Trading
audit and compliance frequently monitor and • Designated at fair value through profit or
Total revenues for reportable segments 10,606.41
review quality and effectiveness of the control loss
and mitigate risk to protect the assets of the bank l Financial assets at fair value through OCI Other revenues 287.69
regularly. l Financial assets measured at amortized cost Elimination of intersegment revenues -

• Held to maturity investments
Banks net revenue from reportable segments 10,894.09
l The bank has established sound credit appraisal • Loan and Advances
system and formation of committees with at NAS 39 recognizes two classes of financial liabilities:
least 3 members in various levels of approval (b) Profit or Loss Amount in Million
of final credit disbursement. Regular site visits, l Financial liabilities at fair value through profit or Total profit or loss for reportable segments 4,575.41
analysis of market trend, value of collaterals loss
l Other financial liabilities measured at amortized Other profit or loss -
and adjustments in its policy accordingly, will
minimize credit risks. cost using the effective interest rate method Elimination of intersegment profits -
l The bank has set up Assets Liability Management The category of financial liability at fair value through Unallocated amounts: 1,290.56
Committee chaired by CEO to manage interest rate profit or loss has two sub-categories: Other operating expenses 135.34
risk, liquidity risk, exchange risk, market risk etc. l Designated by the entity as a liability at fair value Profit before tax 3,149.52
The bank periodically performs gap analysis of its through profit or loss upon initial recognition
(c) Assets Amount in Million
Assets and Liabilities to manage the liquidity risks. l Held for trading
l Summary of the terms, conditions and The classification of financial assets or liabilities is Total assest for reportable segments 102,243.69
main features of all capital instruments, given in detail in Note 3.4 above. Other assets -
especially in case of subordinated term Unallocated amounts 12.14
debts including hybrid capital instruments
Nil Entity's assets 102,255.83

(d) Liabilities Amount in Million Key Management Personnel of the Bank include been increased. It has already started joint transaction
members of the Board, Chief Executive Officer and from 15th September 2019 (Bhadra 29, 2076).
Total liabilities for reportable segments 87,125.21
top level executive managers. Followings are a list of
Similarly, the bank has signed the memorandum of
Other Liabilities - KMP as at 16th July 2019.
understanding with Lalitpur Finance on 8th June 2019
Unallocated liabilities 1,726.63 Key Management (Jestha 25, 2076). Likewise, it has also signed the
S.No. Relation memorandum of understanding with Kailash Bikas
Personnel
Entity's liabilities 88,851.84 Bank Limited on 5th July 2019 (Ashadh 20, 2076).
1 Mr. Rajendra Das Shrestha Chairman
2 Mr. Udaya Mohan Shrestha Director 5.9 Additional Disclosures of non consolidated
has not arisen at the reporting date, those are included 3 Mr. Narendra Bajracharya Director
entities
5.4.5 Information about product and services
in these financial statements as contingent liabilities. 4 Mr. Gajendra Bista Director 5.9.1 Investment in Associates and Joint
The bank's Revenue is basically derived from 3 major Ventures
segments as defined by management as mentioned Other contingent liabilities primarily include revocable 5 Prof. Dr. Mangala Shrestha Director
below: letters of credit and bonds issued on behalf of Associates are those entities in which the Bank has
6 Mr. Prachanda Man Shrestha Director
customers to customs, for bids or offers. significant influence, but not control over the financial
Amount in Million 7 Mr. Manoj Paudel Director and operating policies. Investments in associate
5.6.2 Commitments:
S.N Revenue 10,894.09 8 Mr. Narayan Das Manandhar Chief Executive entities are accounted for using the equity method
Where the Bank has confirmed its intention to provide Officer (equity-accounted investees) and are recognized
A Banking Operation 10,296.21
funds to a customer or on behalf of a customer in the 9 Mr. Sanjeev Manandhar General initially at cost. The cost of the investment includes
B Treasury 260.09 form of loans, overdrafts, future guarantees, whether transaction costs.
Manager
C Cards 50.11 cancellable or not, or letters of credit and the Bank
has not made payments at the reporting date, those
10 Mr. Motikaji Tuladhar Deputy General As per NAS 28 para 44 An investment in an associate
D Other services 287.69 Manager or a joint venture shall be accounted for in the
instruments are included in these financial statement
as commitments. 11 Mr. Bhairaja Tuladhar Deputy General entity's separate financial statements in accordance
5.4.6 Information about geographical areas Manager with para 10 of NAS 27 which states that when an
Revenue from following geographical areas is as Please refer Note No. 4.28.1 to 4.28.4 for the detail of entity prepares separate financial statement, it shall
follows: Amount in Million contingent liabilities and commitments as at 16 July 2019. 5.7.3 Compensation to Board of Directors and account for investments in subsidiaries, joint venture
Key Management Personnel and associates either:
(a) Domestic 10,870.95 5.6.3 Litigations:
All members of the Board are paid meeting fees a. At cost or
Province 1 1,651.94
Litigations are anticipated in the context of business and monthly allowances. Specific non-executive
b. In accordance with NFRS 9
Province 2 166.70 operations due to the nature of the transactions allowances paid to directors during FY 2075/76 are
Province 3 8,397.92 involved. The Bank is involved in various such legal as under: The Bank has used NFRS carve out for accounting of
actions and the controls have been established to deal associates. Investment in Mero Micro Finance Bittiya
Province 4 358.79
with such legal claims. There are pending litigations Particulars Amount in NPR Sanstha Ltd and Mahila Sahayatra Microfinance Bittiya
Province 5 294.36 existing as at the end of the reporting period against Board Meeting Fee 2,730,000.00 Sanstha Ltd are shown in investment in associated due to
Province 6 1.18 the Large Taxpayers Office, resulting through normal significance influence and accounted at Cost as per NAS
Other Expenses 1,458,278.85
business operations. 27 para 10. The bank does not have any Joint venture.
Province 7 0.06 Total 4,188,278.85
(b) Foreign 23.14 The details of litigations are presented in 4.28.5.
Total financial benefit provided to Key Management 5.10 Events after reporting period
Total 10,894.09 5.7 Related parties disclosures Personnel ie. Chief Executive Officer, General
Manager and Deputy General Managers of the bank Events after the balance sheet date are those events,
The related parties of the bank as per the definition of during FY 2075/76 are presented below: favorable and unfavorable, that occur between the
5.4.7 Information about Major Customer NAS 24 “Related Party Disclosures" are as follows: balance sheet date and the date when the financial
S.No. Particulars Amount statements are authorized for issue. Two types of
If revenues from transactions with a single external 5.7.1 Associate Company
events can be identified:
customer amount to 10 percent or more of the banks 1 Short term employee benefit NPR.39,315,006.60
revenues, the bank shall disclose that fact, the total S.No. Particulars Bank's holding (a)Those that provide evidence of conditions that
Defined contribution
amount of revenues from each such customer, and 12.73% existed at the balance sheet date (adjusting events
1 Mahila Sahayatra 2 Post employment benefit* plan and defined
the identity of the segment or segments reporting the Microfinance Limited benefit plan after the balance sheet date); and
revenues. The banks revenue from single customer
2 Mero Mircofinance 7% Leave encashment (b)Those that are indicative of conditions that arose
doesn't exceed 10% of total revenue.
Bittiya Sansthan Limited Other long term employee benefit is after the balance sheet date (non-adjusting events
3
benefit provisioned as per after the balance sheet date)
5.5 Share options and share based payment Investments in Associates have been reported in Actuarial Valuation
the statement of financial position as investment in Non adjusting Event-Disclosure
A share-based payment is a transaction in which 4 Termination benefits -
Associate and the Bank's incomes received from
the bank receives goods or services either as The bank has signed a memorandum of understanding
the associates have been reported in the income 5 Share based payment -
consideration for its equity instruments or by incurring with Lalitpur Finance and Kailash Bikas Bank Limited
statement. The existence of significant influence is
liabilities for amounts based on the price of the entity's Further, all the key management personnel are under which the bank will acquire these two entities.
evidenced as there is representation of the bank's
shares or other equity instruments of the entity. The provided with vehicle facility and mobile facility as per
KMP on the board. The Bank's General Manger, Adjusting Event
bank does not have any share option and share
Mr. Sanjeev Manandhar is Chairman of Mero the staff rule of the Bank.
based payment as on reporting date. The Bank has acquired Kankai Bikas Bank Limited
Microfinance Bittiya Sansthan Limited and Deputy *Post Employment benefit comprises defined
and successfully started the unified transaction from
5.6 Contingent liabilities and commitment General Manager, Mr. Bhairaja Tuladhar is Chairman contribution plan and defined benefit plan. Under
of Mahila Sahayatra Microfinance Limited. 15th September 2019. Hence, the proposed dividend
defined contribution plan Provident fund is provided
5.6.1 Contingent Liabilities: at 10% of basic salary. Defined benefit plan includes
shall also be distributed to the shareholders of then
5.7.2 Key Managerial Personnel Kankai Bikas Bank Ltd. The bonus share is proposed
Where the Bank undertakes to make a payment on gratuity which is provisioned as per actuarial valuation
on paid up capital of Rs. 9,686,851,700.00 which
behalf of its customers for guarantees issued, such The key management personnel (KMP) are those and is deposited in independent planned assets.
persons having authority and responsibility of includes Rs. 368,225,000.00 paid up capital of then
as for performance bonds or as irrevocable letters Kankai Bikas Bank Ltd.
planning, directing and controlling the activities of the 5.8 Merger and acquisition
of credit as part of the Bank's transaction banking
business for which an obligation to make a payment entity, directly or indirectly including any directors. The Bank has acquired Damak based Kankai Bikas Further, the Investment property of Phulbari
Bank Limited with the swap ratio of 100:71.5 due to Agriculture was sold back to the owner at book value.
which the paid up capital of Rs. 368.225 million has There were no other material events after Balance

Sheet date affecting financial status of the Bank. 5.12 Other Disclosures 5.12.6 Statutory Reserves and Funds v. Investment Adjustment Reserve
Investment Adjustment Reserve is to be created as
5.11 Disclosure effect of transition from 5.12.1 Adjustment on loan Impairment The reserves of the Bank include statutory reserves
per the regulatory requirement of NRB Directive no 8.
previous GAAP to NFRSs and funds set aside for specific purpose as per
In compliance with the NRB Directives and subsequent During the year Rs. 15,000,000 has been transferred
Banks and Financial Institutions Act, 2017 and NRB
The bank has already adopted NFRSs in mid July amendment there to, specific loan loss provision were Directives. The various reserves and funds are as
from Investment Adjustment Reserve to Retained
2018. Hence, the disclosure effect of transition from made based on the arrears time period and General Earnings as reversal of provision maintained for
below:
Previous GAAP to NFRSs is not applicable in this provision were made at a specified rate directed by Nepal Electronic Payment System Limited.
reporting period. NRB time to time. Thus, total provision under Pass i. General Reserve
Loan as per NRB Directive No. 2 is categorized as As per Section 44 of Bank and Financial Institution Act Particulars Amount
Collective Impairment and remaining are categorized 2017, 20% of net profit is to be added in the general Nepal Electronic Payment System Ltd 15,000,000
as Individual Impairment. reserve fund of the bank. During this year the bank
has transferred Rs. 439,758,449 from its Retained Prabhu Capital Ltd. Promoter Share 1,500,000
S.N. Particulars Current Year Previous Year Earnings to General Reserve Fund. Total Opening Balance 16,500,000
i Loan and Advances at Amortized Cost 76,896,398,354 71,167,704,930 ii. Exchange Equalization Reserve Less: Reversal of Provision for NEPS 15,000,000
ii Impairment as per NFRS 39 323,519,584 396,486,694 As per Section 45 of Bank and Financial Institution
Remaining Fund 1,500,000
Act 2017, the reserve of 25% of the foreign exchange
iii LLP as per NRB Directive No 2 1,336,188,447 1,200,848,493 gain realized on the translation of foreign currency to
iv Higher of the above (ii & iii) 1,336,188,447 1,200,848,493 reporting currency during the year, other than Indian vi. Fair Value Reserve
Currency is to be created. The bank has transferred During this year, fair value gain of Rs. 9,089,513
Charge to P/L 135,339,954 223,985,612 has been recognized where by net amount of Rs.
Rs. 834,025 as Exchange Equalization Reserve from
5.12.2 Financial Assets measured at fair value through OCI its Retained Earnings. 6,362,659 has been transferred to reserve from
Retained Earnings.
The Bank has invested in the financial assets measured at fair value through OCI. Such investment includes equity iii. Corporate Social Responsibility Reserve
As per NRB Directive 6/076, clause (16), 1% of Net vii. Actuarial Gain/Loss
investments and Mutual Funds. The valuation of Promoter share whose transactions are not active in the market, Profit of the year is required to be created as Corporate
per unit cost price is assumed to be fair value. During this year, actuarial loss of Rs. 12,680,320 has
Social Responsibility (CSR) Fund. Balance in this been recognized in Other Comprehensive Income and
The difference between instruments fair value and Carrying Amount has been recognized in Fair Value Reserve and fund will be reclassified to Retained Earnings after the transferred net amount to Reserve of Rs. 8,876,224
movement is charged to Other Comprehensive Income. expenses are incurred in the subsequent years. The from Retained Earnings.
movement of the fund is shown as per below
Particulars Cost Price Maket Value Movement viii. Training and Development Fund
Current Previous
Investment in Listed Equity 402,243,826 393,584,696 (8,659,130) Particulars As per NRB Directive No: 6(6) and circular No: 3/76-
Year Year
Investment in Unlisted Equity 22,100,000 23,244,000 1,144,000 77 the bank is required to incur expenses at least 3%
Total Opening Fund 32,205,376 15,852,726 of its preceding year's employee salary and allowance
Investment in Mututal Funds 130,634,066 107,273,954 (23,360,112)
Less: Expenses in current year -7,573,104 -909,811 towards employee training and development. The
Total (30,875,242) bank has spent Rs. 10,943,645 in the FY 2075-76 as
Fund created during the year 21,987,922 17,262,461
Less: Previous Year's Reserve (39,964,754) training and development expenses which are higher
Remaining Fund 46,620,195 32,205,376 than the mandatory requirement. The bank has used
Gain from Investment measured at Fair Value through OCI 9,089,513
previous reserve of Rs. 2,370,857.00 during this fiscal
iv. Regulatory Reserve year.
5.12.3 Interest Income Accrued Interest Income Outstanding as on Ashad
end 2076 which have been recovered from 1st Particulars Amount
As per NAS 18 para 20 Revenue is recognized to the 5.12.7 Proposed Dividend
Shrawan to 30th Shrawan 2076 amounting to Rs.
extent that it is probable that the economic benefits a. Interest receivable (-)/previous accrued
171,891,654
178,436,726.00 has been recognized as interest The Board of Directors has proposed bonus share
will flow to Bank and the revenue can be reliably interest received (+)
measured. The following specific recognition criteria
income by the bank in FY 2075-76. of 16% on paid up capital Rs. 9,686,851,700.00 of
b. Short loan loss provision on Non
must also be met before revenue is recognized. 15,528,305 the bank amounting Rs. 1,549,896,272 vide 384th
5.12.4 Transfers in Regulatory Reserve Banking Assets (-)/resersal (+)
Board Meeting date 25th November 2019 which shall
Thus, cash interest income and AIR having overdue As per the circular no 6/076/77 issued on 2076/07/26, c. Deferred tax assets recognised (-)/ be approved by the Annual General Meeting. The
33,163,681
date less than 365 days are recognized as Interest the bank has deducted its retained earnings and reversal (+) dividend is distributed to the shareholder as on book
Income. Similarly, the bank has complied with the transferred to regulatory reserve for Accrued Interest Opening Regulatory Reserve 220,583,641 close date.
Guideline issued by NRB “Guideline on Recognition Receivables and Loan loss provision on Non Banking
Add: The Paid up capital of prior to acquisition was Rs.
of Interest Income, 2019" which was effective from Assets after deduction of Employee bonus and
2018/2019. a. Interest receivable (-)/previous accrued 9,318,626,700 and additional capital after acquisition
applicable taxes. 20,411,087
interest received (+) of Kankai Bikas Bank limited is Rs. 368,225,000. As
5.12.5 Business Combination per Section 47(ka) of Income Tax Act 2058, dividend
Particulars FY 2075-76 FY 2074-75 b. Short loan loss provision on Non
143,029,676 tax shall not be levied on the dividend distributed by
During the Fiscal Year 2076/77, the bank has acquired Banking Assets (-)/resersal (+)
Total AIR on Ashadh end 576,243,437 395,874,280 the bank to the existing shareholders existing at the
Kankai Bikas Bank Limited with the approval through c. Deferred tax assets recognised (-)/ time of acquisition within 2 years after the date of
Special Annual General Meeting dated 7th August 41,169,246
Interest recovered as per reversal (+) acquisition. So, the bank has not made provision for
178,436,726 72,955,069 2019 (Shrawan 22, 2076). The joint transaction took
NRB Directive 4(3)(ka)(a) d. Negative Fair Value Reserve and the dividend tax.
place on 15th September 2019 (Bhadra 29, 2076). 21,612,669
Actuarial Gain/Loss
Remaining AIR 397,806,710 322,919,211 With the swap ratio of 100:71.50, the bank acquired all
the assets and liabilities of Kankai Bikas Bank Limited. e. Negative Actuarial Gain/Loss 9,847,334
AIR calculated but The swap ratio is determined by the independent Total Regulatory reserve created
suspended to recognize 193,516,506 151,027,557 236,070,012
valuator which was based on the Guideline issued by during Ashadh 2076
in Interest Income NRB. On the acquisition date, the bank has issued Total Regulatory reserve as on Ashadh
Rs. 3,682,250 shares to its shareholders at Rs. 100 456,653,653
end 2076
AIR recognized as each and bargain purchase gain of Rs. 146,775,000
204,290,205 171,891,654
income is recognized.
Charge to PL 32,398,550 100,179,435

Prime Commercial Bank Limited Prime Commercial Bank Limited
List of Shareholders Holding 0.5% and above Shares Interim Financial Statement
As on Ashadh end 2076 Condensed Statement of Financial Position
Number of As on Quarter Ended Asad End 2076
S.No. Name Paid up in Amount % of Shareholding
Shares Held
1 Umesh Shrestha 3,221,732 322,173,200 4.01% Amount in NPR
2 Subash Shrestha 906,518 90,651,800 1.13% Assets This Quarter Ending Immediate Previous Year
Ending
3 Roshan Shrestha 902,755 90,275,500 1.12%
4 Bikram Pandey 899,916 89,991,600 1.12% Cash and Cash Equivalents 5,304,983,311 4,502,735,569
5 Sushila Mittal 756,102 75,610,200 0.94% Due from Nepal Rastra Bank 7,807,981,176 8,815,836,010
6 Naresh Lal Shrestha 736,750 73,675,000 0.92% Placement with Bank and Financial Institutions 1,118,729,717 1,960,450,695
7 Sundar Narayan Joshi 736,749 73,674,900 0.92% Derivative Financial Instruments - -
8 Saileja Bajracharya 729,386 72,938,600 0.91% Other Trading Assets - -
9 Shyam Bdr Shrestha 729,386 72,938,600 0.91% Loans and Advances to B/FIs 3,012,624,838 2,829,040,379
10 Narendra Bajracharya 707,284 70,728,400 0.88%
Loans and Advances to Customers 72,518,614,076 67,137,816,058
11 Manohar Das Mool 699,915 69,991,500 0.87%
Investment Securities 10,143,371,174 8,428,082,790
12 Sanendra Bajracharya 699,914 69,991,400 0.87%
Current Tax Assets 162,718,412 153,617,101
13 Mahesh Raj Karnikar 578,480 57,848,000 0.72%
Investment in Subsidiaries - -
14 Mahendra Ratna Shakya 536,943 53,694,300 0.67%
Investment in Associates 51,023,000 28,000,000
15 Anjalee Pradhan 492,263 49,226,300 0.61%
16 Udaya Mohan Shreshta 478,889 47,888,900 0.60% Investment Property 251,726,725 15,528,305
17 Kedar Bhakta Shrestha 449,372 44,937,200 0.56% Property and Equipment 744,947,388 606,763,277
18 Ramesh Kumar Silwal 418,375 41,837,500 0.52% Goodwill and Intangible Assets 7,708,980 5,278,217
19 Manju Agarwal 403,434 40,343,400 0.50% Deferred Tax Assets 51,950,493 33,163,681
The above figures are before the adjustment of bonus share distributed for the FY 2074-75 Other Assets 1,249,919,686 527,666,934
Total Assets 102,426,298,977 95,043,979,017
Immediate Previous Year

Liabilities This Quarter Ending
Ending
Due to Bank and Financial Institutions 9,217,763,323 8,668,488,205

Due to Nepal Rastra Bank 1,269,349,325 1,269,890,141
Derivative Financial Instruments - -
Deposits from Customers 77,040,074,374 72,635,987,983
Borrowings - -
Current Tax Liabilities - -
Provisions - -
Deferred Tax Liabilities - -
Other Liabilities 1,319,704,544 1,261,902,073
Debt Securities Issued - -
Subordinated Liabilities - -
Total Liabilities 88,846,891,567 83,836,268,402
Equity
Share Capital 9,318,626,689 8,033,298,870
Share Premium - -
Retained Earnings 1,651,332,473 1,335,887,667
Reserves 2,609,448,248 1,838,524,079
Total Equity Attributable to Equity Holders 13,579,407,410 11,207,710,615
Non Controlling Interest - -
Total Equity 13,579,407,410 11,207,710,615
Total Liabilities and Equity 102,426,298,977 95,043,979,017

82
Prime Commercial Bank Limited
Interim Financial Statement
Condensed Statement of Profit or Loss
For the Quarter Ended Ashadh 2076
Amount in NPR
Current Year Previous Year Corresponding
Particulars
This Quarter Upto This Quarter (YTD) This Quarter Upto This Quarter (YTD)
Interest Income 2,624,810,767 9,833,846,028 2,436,508,054 8,559,690,846

Interest Expense 1,628,516,069 6,236,020,970 1,600,716,077 5,893,775,409
Net Interest Income 996,294,698 3,597,825,058 835,791,977 2,665,915,437
Fee and Commission Income 150,185,210 766,010,990 142,610,993 666,143,848
Fee and Commission Expense 25,671,947 53,484,808 31,988,487 46,529,774
Net Fee and Commission Income 124,513,264 712,526,181 110,622,506 619,614,074
Net Interest, Fee and Commisson Income 1,120,807,961 4,310,351,239 946,414,483 3,285,529,512
Net Trading Income 61,649,653 234,439,303 53,998,426 177,877,342
Other Operating Income 29,330,341 78,471,482 53,662,866 161,729,893
Total Operating Income 1,211,787,955 4,623,262,024 1,054,075,775 3,625,136,747
Impairment Charge/ (Reversal) for Loans and Other Lossess (317,371,593) 24,989,346 49,560,041 223,985,612
Net Operating Income 1,529,159,549 4,598,272,678 1,004,515,735 3,401,151,135
Operating Expense
Personnel Expenses 308,124,445 886,321,281 179,938,790 631,648,386
Other Operating Expenses 125,113,617 358,827,762 87,858,769 273,537,368
Depreciation & Amortisation 22,029,092 79,946,057 20,057,722 70,128,273
Operating Profit 1,073,892,395 3,273,177,577 716,660,454 2,425,837,108
Non Operating Income - - 21,587,289 21,587,289
Non Operating Expense - - - -
Profit Before Income Tax 1,073,892,395 3,273,177,577 738,247,743 2,447,424,397
Income Tax Expense 256,463,210 907,843,439 190,351,000 721,178,288
Current Tax 256,463,210 907,843,439 198,032,863 728,860,152
Deferred Tax - - (7,681,864) (7,681,864)

Profit for the Period 817,429,186 2,365,334,138 547,896,743 1,726,246,109
Condensed Statement of Other Comprehensive lncome

Profit/(Loss) for the period 817,429,186 2,365,334,138 547,896,743 1,726,246,109
Other Comprehensive lncome 26,310,062 6,362,659 (1,425,068) (84,973,074)
Total Comprehensive lncome 843,739,247 2,371,696,797 546,471,675 1,641,273,035
Basic Earnings per Share - 25.38 - 21.49
Diluted Earnings per Share - 25.38 - 21.49

Profit Attributable to:
Equity-holders of the Bank 817,429,186 2,365,334,138 547,896,743 1,726,246,109
Non-Controlling Interest - - - -
Total 817,429,186 2,365,334,138 547,896,743 1,726,246,109
Ratio as per NRB Directives

Current Year Previous Year Corresponding
Particulars
This Quarter Upto This Quarter(YTD) This Quarter Upto This Quarter(YTD)
Capital Fund to RWA 12.78% 12.24%

Non-Performing Loan (NPL) to total Loan 0.92% 0.85%
Total Loan Loss Provision to Total NPL 175.36% 199.02%
Cost of Funds 7.90% 8.04%
Credit to Deposit Ratio 77.00% 75.22%
Base Rate 10.03% 10.47%
Interest Rate Spread 4.32% 4.23%
Notes to Interim Financial Statements
1. Above financial statements has been prepared as per NRB format and are NFRS compliant. The bank has applied carve-out issued by ICAN.
2. Previous period figure have been regrouped / rearranged / restated wherever necessary.
3. Loan and Advances include interest receivables, stafff loan and are presented net of impairment charges.
4. Personnel Expenses include employee bonus provision.
6. Capital Adequacy Ratio has been calculated as per NRB Directive.
7. Provision for Gratuity and Leave for this Fiscal Year has been provided as per Personal Bylaws of the bank, which might change according to the Actuarial Valuation Report.
8. Equity Investment and Mutual Fund are categorized as available for sale and are measured at fair value through OCI.
9. Corresponding previous year quarter ending figures are as per Audited Financial Statement of FY 2074-75 which was in accordance with NFRSs.
10. Above figures are subject to change upon otherwise instructions of Statutory Auditor and/or Regulatory Authorities .
83
11. The detail interim financial report has been published in the Bank's website: www.primebank.com.np
Comparison Unaudited and Audited Financial Statements as of FY 2075/76

Adjustment of income from Staff Loan

Interest income 9,833,846 9,822,371 (11,475) (0.12%)
and bond amortization adjustments
Interest adjustment after statutory

Interest expense 6,236,021 6,237,764 1,743 0.03%
audit.
Net interest income 3,597,825 3,584,607 (13,218) (0.37%)
Placement below 3 months are
Cash and cash equivalent 5,304,983 5,304,763 (220) 0.00% Due to reclassification of commission
shown in this category Fee and commission income 766,011 766,872 861 0.11%)
of LC and Guarantee
Due from NRB and
placements with BFIs
8,926,711 8,926,711 - - Due to Reclassification of Expense
Fee and commission expense 53,485 51,276 (2,209) (4.13%)
heads.
Loan and advances 75,531,239 75,560,210 28,971 0.04% AIR adjusted in Loan and Advances
Net fee and commission
Due to change in Fair Value and 4,310,351 4,300,203 (10,148) (0.24%)
income
Investments Securities 10,194,394 10,142,157 (52,238) (0.51%) adjustment of AIR and reclassification
to Investment in Associates Other operating income 312,911 304,851 (8,060) (2.58%) Due to increase in R&M expenses
Investment in subsidiaris and Recalssification of Investment
- 51,023 51,023 100% Total operaing income 4,623,262 4,605,054 (18,208) (0.39%)
associates Securities to Investment in Associate
Property And Equipment 744,947 743,977 (971) (0.13%) Adjustment after statutory audit Impairment charge/(reversal)
24,989 135,340 110,351 441.59%
Due to increment in LLP after statutory
for loans and other losses audit and NRB instruction
Goodwill and intangible assets 7,709 7,709 - -
Regrouping and reclassification of Net operating income 4,598,273 4,469,714 (128,559) (2.80%)
Other assets 1,716,315 1,519,280 (197,035) (11.48%)
assets
Due to Acturial Valuation Expenses
Total Assets 102,426,299 102,255,830 (170,469) Personnel expenses 886,321 888,335 2,014 0.23% and changes in figure of employee
Capital and Liabilities bonus
Due to change in depreciation charge
Paid up Capital 9,318,627 9,318,627 - -
and reclassification of operating
Change in profit due to LLP and other Other operating expenses 438,774 431,863 (6,911) (1.57%)
Reserves and surplus 4,260,781 4,085,363 (175,418) (4.12%) expenses to fees and commission
statutory and regulatory adjustments expense
Deposits 86,257,838 86,257,838 - - Operating profit 3,273,178 3,149,516 (123,662) (3.78%)
Borrowings - - -
Non operating income/expense - - - -
Bond and Debenture - - - -
Regrouping and reclassification of Profit before tax 3,273,178 3,149,516 (123,662) (3.78%)
Other liabilities and provisions 2,589,054 2,594,003 4,949 0.19%
liabilities
Change in income/expenses and
Income tax 907,843 950,723 42,880 4.72%
Total Capital and Liabilities 102,426,299 102,255,830 170,469 effect of Deferred Tax
Profit /(loss) for the period 2,365,334 2,198,792 (166,542) (7.04%)
Other comprehensive income 6,363 2,514 (3,849) (60.50%) Due to changes in AFS reserve
Total comprehensive income 2,371,697 2,196,279 (175,418) (7.40%)
Distributable Profit - - -
Net profit/(loss) for the
2,365,334 2,198,792 (166,542) (7.04%)
period
Due to changes on regularoty reseve
Less: Regulatory adjustment as
(288,917) (207,124) 81,793 28.31% after regulatory requirerment and
per NRB Directive
statutory audit adjustment
Profit/(loss) after regulatory
2,076,417 1,991,669 (84,749) 4.08%
adjustments

As on 31 Ashadh 2076
2075/76 2074/75
2073/74 2072/73 2071/72
(NFRS) (NFRS)
Net Profit/Total Income Percent 20.18 18.01 22.84 25.02 19.14
Earnings Per Share Rs. 23.60 21.49 23.21 30.11 23.74
Market Value Per Share Rs. 278 287 421 746 455
Price Earning Ratio Ratio 11.78 13.36 18.14 24.77 19.16
Dividend in Share Capital

Percent 16.00 16.00 27.00 17.25 18.95
(Including Bonus)
Cash Dividend in Share Capital Percent - - - 0.91 0.95
Interest Income/Loan and

Percent 12.16 11.51 8.63 8.46 9.61
Advances
Staff Expenses/Total Operating
Percent 55.49 52.96 48.75 45.22 41.48
Expenses
Interest Expenses in Total
Percent 7.23 7.25 4.98 4.07 4.52
Deposit
FX Fluctuation Gain/Total
Percent 2.18 1.93 1.91 2.26 1.90
Income
Staff Bonus/Total Staff
Percent 39.39 38.75 42.92 43.32 37.77
Expenses
Net Profit/Loan and Advances Percent 2.86 2.43 2.50 2.72 2.23
Net Profit/Total Assets Percent 2.15 1.82 1.89 2.05 1.63
Total Loan/Deposits Percent 89.15 87.53 89.12 85.00 81.63

Total Operating Expenses/Total
Percent 1.29 1.03 0.74 0.85 0.92
Assets
Capital Adequacy Ratio:
A. Core Capital Percent 11.97 11.43 12.45 10.76 11.29
B. Supplementary Capital Percent 0.80 0.80 0.83 0.84 0.87
C. Total Capital Fund Percent 12.76 12.24 13.28 11.60 12.16
Liquidity ( CRR ) Percent 9.83 11.42 13.27 10.97 10.83
Non-performing Loan/Total Loan

Percent 1.00 0.85 0.88 1.23 1.83
(as per NRB)
Weighted Average Interest Rate

Percent 4.32 4.23 3.45 3.34 3.42
Spread
Book Net worth Rs. 143.84 139.52 149.16 145.84 138.93
Total Share of PCBL Number 93,186,267 80,332,989 63,254,322 37,052,623 31,400,528
Total Staff Number 725 691 571 390 362
Base Rate Percent 10.03 10.47 10.64 6.93 7.62
No of Branches (including EC) Number 73 64 55 32 32
No of ATM Number 46 36 33 26 25

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k|jGwkqdf k|:tfljt ;+zf]wg

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!= bkmf ^ -v_ a}+sn] tTsfn hf/L ug]{ bkmf ^ -v_ a}+sn] tTsfn hf/L ug]{ z]o/ af]g; z]o/ hf/L tyf s}nfz
z]o/ k'FhL ?=(,^*,^*,%!,&)) ÷– -gf} k'FhL ?=!#,(*,%@,$(,%))÷– -t]x| ca{ ljsf; a}+s lnld6]8nfO{ k|flKt u/L
c{a c7;¶L s/f]8 c7;¶L nfv cG7fgAa] s/f]8 afpGg nfv pgfGrf; a}+ssf] hf/L tyf r'Qmf k""FhL a[l4
PsfpGg xhf/ ;ft ;o _ x'g]5 xhf/ kfFr ;o ?k}+of _ x'g]5 . ;f] ug{ .
. ;f] k'FhLnfO{ ?=!))÷–sf] b/sf k'FhLnfO{ ?=!))÷–sf] b/sf !#,(*,%@,$(% INSIDE VALLEY BRANCHES
(,^*,^*,%!& yfg ;fwf/0f z]o/df yfg ;fwf/0f z]o/df laefhg ul/Psf]
ASON BRANCH BAGBAZAR BRANCH
laefhg ul/Psf] 5 . 5 . Ason Kamalakchi, Kathmandu Bagbazar, Kathmandu
#= bkmf ^-u_ a}+ssf] tTsfn r'Qmf ug{ bkmf ^-u_ a}+ssf] tTsfn r'Qmf ug{ sa'n af]g; z]o/ hf/L tyf s}nfz Phone: 4222678/4221934 Fax: 4221945 Phone: 4252260/4252229, Fax: 4252221
Branch Manager: Mr. Manil Ratna Shahi Branch Manager: Mr.Shiva Raj Pant
sa'n u/]sf] k"FhL ?=(,^*,^*,%!,&))÷– u/]sf] k"FhL ?=!#,(*,%@,$(,%))÷– -t]x| ljsf; a}+s lnld6]8nfO{ k|flKt Email: ason@pcbl.com.np Email: bagbazar@pcbl.com.np
-gf} c{a c7;¶L s/f]8 c7;¶L ca{ cG7fgAa] s/f]8 afpGg nfv pgfGrf; u/L a}+ssf] hf/L tyf r'Qmf k""FhL
nfv PsfpGg xhf/ ;ft ;o_ x'g]5 xhf/ kfFr ;o ?k}+of_ x'g]5 . ;f] k'FhLnfO{ a[l4 ug{ . BALAJU BRANCH BANEPA BRANCH
Machhapokhari Chowk, Balaju, Kathmandu Banepa
. ;f] k'FhLnfO{ ?=!))÷–sf] b/sf ?=!))÷–sf] b/sf !#,(*,%@,$(%yfg Phone: 4354181,Fax: 4386909 Phone: 011-660701/11, Fax: 011-660733
(,^*,^*,%!& yfg ;fwf/0f z]o/df ;fwf/0f z]o/df laefhg ul/Psf] 5 . Branch Manager: Mr.Shiva Amatya Branch Manager: Mr. Aman Pote Shrestha
Email: balaju@pcbl.com.np Email: banepa@pcbl.com.np
laefhg ul/Psf] 5 .
NEW BANESHWOR BRANCH BANIYATAR BRANCH
New Baneshwor,Kathmandu Baniyatar, Tokha Municipality
Phone: 4490480/4490005, Fax: 4490380 Phone: 9855033885
lgodfjnLdf k|:tfljt ;+zf]wg Branch Manager: Mr.Abhishek Raghubanshi Branch Manager: Mr. Abinash Karna
l;= g= xfnsf] Joj:yf k|:tfljt ;+zf]wg ;+zf]wg ug{' k/]sf] sf/0f Email: baneshwor@pcbl.com.np Email: baniyatar@pcbl.com.np
! ;ldltsf] a}7s ;DjGwL sfo{ljlw M ;ldltsf] a}7s ;DjGwL sfo{ljlw M sDkgL P]g tyf g]kfn /fi6« BHAKTAPUR BRANCH CHABAHIL BRANCH
a}+saf6 a}+sx?nfO[ hf/L Plss[t Surya Binayak,Bhaktapur Chuchepati, Kathmandu
lgod #*-*_ ;+rfns ;ldltsf] a}7s Phone: 01-6620205 Phone: 5210139/40 ,Fax: 4913390
lgod #*-*_ gePsf] . lgb]{zg g+=^÷)&^ df ePsf] Branch Manager: Mr. Shyam Kumar Shrestha Branch Manager: Mr. Sanjay Acharya
lel8of] sGkm/]G;sf] dfWodaf6 ;d]t a:g
Joj:yf cg'?k ug{ agfpg Email: bhaktapur@pcbl.com.np Email: chabahil@pcbl.com.np
;lsg]5 . lel8of] sGkm/]G;sf] dfWodaf6
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a}7s a:bf ;+rfnsnfO{ a}7s eQf CHAPALI BRANCH GATTHAGHAR BRANCH
lbO{g]5 . Budhanilkantha Municipality,Kathmandu Gatthaghar, Bhaktapur
Phone:9843400041 Phone: 6635112/51, Fax: 6636643
Branch Manager: Ms.Pramila Tandukar Branch Manager: Mr. Shiva Shankar Jha
Email: chapali@pcbl.com.np Email: gatthaghar@pcbl.com.np
GRANDE BRANCH IMADOL BRANCH

Grande, Tokha Municipality Mahalaxmi Municipality,lalitpur
Phone: 9851140926 Phone: 01 5202851/52
Branch Manager: Mr. Binaya Shrestha Branch Manager: Mr. Ram Kumar Khatri
Email: grande@pcbl.com.np Email: imadol@pcbl.com.np
KALIMATI BRANCH KIRTIPUR BRANCH

Kalimati, Kathmandu Kirtipur Municipality,Kathmandu
Phone: 4283502/4283535, Fax: 4283466 Phone: 01-4332363/64
Branch Manager: Mr. Raju Maharjan Branch Manager: Mr. Yogesh Dangol
Email: kalimati@pcbl.com.np Email: kirtipur@pcbl.com.np
KOTESHWOR BRANCH MANGALBAZAR BRANCH

Koteshwor, Kathmandu Mangalbazar,Lalitpur
Phone: 4601166/67 Phone: 5553915/16
Fax: 4600483 Fax: 5553927
Branch Manager: Ms.Geeta Sharma Branch Manager: Mr.Rajiv Maharjan
Email: koteshwor@pcbl.com.np Email: mangalbazar@pcbl.com.np

NEWROAD BRANCH OLD BANESHWOR BRANCH DAMAK BRANCH DHANGADI BRANCH
Newroad, Bira Complex Kathmandu Old Baneshwor, Kathmandu Damak ,Jhapa Dhangadhi Sub Metropolitan City, Kailali
Phone: 01-5713166/94/92/67, Fax: 01-4220512 Phone: 4475245/46, Fax: 4475247 Phone: 023-584890, Fax: 023-584891 Phone: 091-526348
Branch Manager: Mr.Geha Ranjan Joshi Branch Manager: Mr. Nishes KC Branch Manager: Mr.Bharat Khanal Branch Manager: Mr. Rajesh Singh
Email: newroad@pcbl.com.np Email: old.baneshwor@pcbl.com.np Email: damak@pcbl.com.np Email: dhangadi@pcbl.com.np
PANAUTI BRANCH PATAN BRANCH DHARAN BRANCH FIKKAL BRANCH

Panauti, Kavre Lagankhel,Lalitpur Mahindra Path, Dharan Fikkal, Sindhuli
Phone: 011-441204/5, Fax: 011-441206 Phone: 5554170 /71,Fax: 5526588 Phone: 025-533049/50, Fax: 025-533048 Phone: 047692045, 047692048
Branch Manager: Mr. Deepak Sharma Branch Manager: Mr.Sujan Pradhan Branch Manager: Mr. Rishi Ram Bhattarai Branch Manager: Mr. Jankantha Shrestha
Email: panauti@pcbl.com.np Email: patan@pcbl.com.np Email: dharan@pcbl.com.np Email: fikkal@pcbl.com.np
SAMAKHUSI BRANCH SORAKHUTTE BRANCH GAURADAHA BRANCH GAURIGUNJ BRANCH

Samakhusi,Kathmandu Nayabazaar, Kathmandu Gauradaha ,Jhapa Gaurigunj ,Jhapa
Phone: 4390553/54, Fax: 4390556 Phone: 4388834/35, Fax: 4388833 Phone: 023-480293, Fax: 023-480294 Phone: 023-412040, Fax: 023-412041
Branch Manager: Ms. Anita Pradhan Branch Manager: Mr. Manish Dahal Branch Manager: Mr. Santosh Nepal Branch Manager: Mr.Sharad Kafle
Email: samakhusi@pcbl.com.np Email: sorakhutte@pcbl.com.np Email: gauradaha@pcbl.com.np Email: gaurigunj@pcbl.com.np
TARKESHWOR BRANCH GORKHA BRANCH GWALDUBBA BRANCH

Tarkeshwor,Kathmandu Haramtari,Gorkha Gaurada Municipality: 07, Gwaldubba
Phone: 01-4025996 Phone: 064-421590, Fax: 064-421590 Phone: 9752600501
Branch Manager: Ms. Sushma Kansakar Branch Manager: Mr. Hari Prasad Adhikari Branch Manager: Mr. Bhesh Raj Dhakal
Email: tarkeshwor@pcbl.com.np Email: gorkha@pcbl.com.np Email: gwaldubba@pcbl.com.np
GYANECHOWK BRANCH ILAM MANGALBARE BRANCH

OUTSIDE VALLEY BRANCHES Bhadrapur Municipality: 03, Gyanechowk Deumai Municipality: 04, Mangalbare
Phone: 9752600511 Phone: 027-400138
BAITESHWOR BRANCH BATTAR BRANCH Branch Manager: Mr. Raju Malla Branch Manager: Mr. Riddhi Bahadur Karki
Baiteshwor,Dolakha Battar,Nuwakot Email: gyanechowk@pcbl.com.np Email: mangalbare.ilam@pcbl.com.np
Phone: 049-411088/89 Phone: 010-561801/2, Fax: 010-561803
Branch Manager: Mr.Purusottam Subedi Branch Manager: Mr. Raju Dhakal INARUWA BRANCH ITAHARI BRANCH
Email: baiteshwor@pcbl.com.np Email: battar@pcbl.com.np Inaruwa ,Sunsari Sunsari
Phone: 025-561749, Fax: 025-561750 Phone: 025-587310/11, Fax: 025-587312
BHAIRAHAWA BRANCH BHARATPUR BRANCH Branch Manager: Mr. Rimen Dhakal Branch Manager: Mr. Sujan Shrestha
Bank Road, Milan ChowkBhairahawa Chaubishkothi,Bharatpur,Chitwan Email: inaruwa@pcbl.com.np Email: itahari@pcbl.com.np
Phone: 071-521081/82, Fax: 071-521083 Phone: 056-533240/41, Fax: 056-533242
Branch Manager: Mr. Shiva Basnet Branch Manager: Mr.Padam Raj Paudel ITTABHATTA BRANCH JANAKPUR BRANCH
Email: bhairahawa@pcbl.com.np Email: bharatpur@pcbl.com.np Mechinagar Municiaplity: 07, Ittabhatta Shiva Chowk, Janakpurdham Sub Municipality, Janakpur
Phone: 023-563361/ 563386 Phone: 021-620333
BHIMPHEDI BRANCH BIBLYATE BRANCH Branch Manager: Mr. Bhakti Ram Niroula Branch Manager: Mr. Pramod Kumar Mahato
Bhimphedi,Makawanpur Ilam Municipality: 05, Biblyate Email: ittabhatta@pcbl.com.np Email: janakpur@pcbl.com.np
Phone: 057-410054/94 Phone: 027-413006
Branch Manager: Mr. Dhanraj Upreti Branch Manager: Mr. Manoj Kumar Adhakari JANTE BRANCH JHAPA MANGALBARE BRANCH
Email: bhimphedi@pcbl.com.np Email: biblyate@pcbl.com.np Letang Municipality: 08, Jante Kamal Rural Municipality: 06, Mangalbare
Phone: 9752038931 Phone: 023-584611
BIRATCHOWK BRANCH BIRATNAGAR BRANCH Branch Manager: Mr. Khem Prasad Baral Branch Manager: Mr. Dilip Kumar Shrestha
Biratchowk ,Morang Biratnagar, Morang Email: jante@pcbl.com.np Email: jhapa.mangalbare@pcbl.com.np
Branch Manager: Mr. Manish Tamrakar Branch Manager: Mr.Diman Shrestha JHILJHILE BRANCH JIRI BRANCH
Email: biratchowk@pcbl.com.np Email: biratnagar@pcbl.com.np ShivaSatakshi Municiaplity: 08, Jhiljhile Jiri VDC, Linkan Bazar, Dolakha
Phone: 023-470521 Phone: 049-400041, Fax: 049-400040
BIRGUNJ BRANCH BIRTAMOD BRANCH Branch Manager: Mr. Baiju Nath Thakur Branch Manager: Mr. Sushil Kumar Upadhayay
Birgunj,MainRoad,MaiSthan Marga. Anarmani VDC,Jhapa Email: jhiljhile@pcbl.com.np Email: jiri@pcbl.com.np
Phone: 051-524370/80, Fax: 051-523660 Phone: 023- 545031, Fax: 023-545032
Branch Manager: Mr.Maryada Thapa Branch Manager: Mr.Indra Guragain KAKARBHITTA BRANCH KALIGANDAKI BRANCH
Email: birgunj@pcbl.com.np Email: birtamod@pcbl.com.np Mechinagar Municiaplity: 06, Kakarvitta Mirmi,Syangja
Phone: 023-563301/ 563616 Phone: 063-403021/403097
BUDHABARE BRANCH BUTWAL BRANCH Branch Manager: Mr. Bhesh Raj Bhujel Branch Manager: Mr. Lekhnath Acharya
Budhabare ,Jhapa Butwal Email: kakarbhitta@pcbl.com.np Email: kaligandaki@pcbl.com.np
Branch Manager: Mr.Chakrapani Bhandari Branch Manager: Mr. Narayan Acharya KALIKA BRANCH KANCHANBARI BRANCH
Email: budhabare@pcbl.com.np Email: butwal@pcbl.com.np Kalika,Rasuwa Kanchanbari ,Biratnagar
Phone: 010-542115 Phone: 021-462283, Fax: 021-462284
CHAKRAGHATTI BRANCH CHANDRAGADI BRANCH Branch Manager: Mr. Bishnu Mani Adhikari Branch Manager: Mr. Punya Prasad Regmi
Chakraghatti ,Sunsari Chandragadi ,Jhapa Email: kalika@pcbl.com.np Email: kanchanbari@pcbl.com.np
Phone: 025-551023, Fax: 025-551024 Phone: 023-455965, Fax: 023-456196
Branch Manager: Mr.Bhupendra Prasad Phuyal Branch Manager: Mr. Hemanta Raj Neupane KAWASOTI BRANCH KHANDBARI BRANCH
Email: chakraghatti@pcbl.com.np Email: chandragadi@pcbl.com.np Kawasoti, Nawalparasi Khandbari ,Sankhuwasabha
Phone: 078-540996/97, Fax: 078-540998 Phone: 029-560860, Fax: 029-560870
Branch Manager: Mr. Buddhi Lal Shrestha Branch Manager: Mr.Chandra Kumar Phuyal
Email: kawasoti@pcbl.com.np Email: khandbari@pcbl.com.np

KHAPTADCHHANNA BRANCH KHORSHANE BRANCH SIDHUWA BRANCH SINDHULI BRANCH
Khaptadchhanna,Bajhang SundarHaraicha Municipality: 10, Khorsane Sidhuwa ,Dhankuta Bank Road, Sindhuli
Phone: 081620444 Phone: 021-546899 Phone: 026-404176, Fax: 026-404177 Phone: 047-520632/520733, Fax: 047-520734
Branch Manager: Mr. Suresh Dhami Branch Manager: Mr. Rudra Bahadur Khadka Branch Manager: Mr.Rabindra Subedi Branch Manager: Mr.Ram Kumar Shrestha
Email: khaptadchhana@pcbl.com.np Email: khorshane@pcbl.com.np Email: sidhuwa@pcbl.com.np Email: sindhuli@pcbl.com.np
LAXMIPUR BRANCH LEK BESI BRANCH SOMBARE BRANCH SUDHODHAN BRANCH

Arjundhara Municipality: 05, Laxmipur Dasharathpur, Surkhet Ratuwamai Municipality: 10, Sombare Sudhodhan,Kabilvastu
Phone: 023-503167/ 503168 Phone: 081-620443 Phone: 9752038930 Phone: 9860853084
Branch Manager: Mr.Nabin Tamang Branch Manager: Mr.Upendra Bahadur Shah Branch Manager: Mr. Prakash Kumar Rajbanshi Branch Manager: Mr.Hari Bahadur Bhandari
Email: laxmipur@pcbl.com.np Email: lekbesi@pcbl.com.np Email: sombare@pcbl.com.np Email: sudhodhan@pcbl.com.np
LETANG BRANCH MAHENDRANAGAR SURUNGA BRANCH TAPLEJUNG BRANCH

Letang ,Morang Mahendranagar, Kanchanpur Surunga ,Jhapa Birendra Chowk,Phungling Bazar,Taplejung
Phone: 021-560645, Fax: 021-560655 Phone: 9858753280 Phone: 023-550825, Fax: 023-550835 Phone: 024-460702 / 024-460701
Branch Manager: Mr.Chhabi Raman Koirala Branch Manager: Mr.Puskar Kunwar Branch Manager: Mr.Nir Bahadur Adhikari Branch Manager: Mr. Sonam Lama
Email: letang@pcbl.com.np Email: mahendranagar@pcbl.com.np Email: surunga@pcbl.com.np Email: taplejung@pcbl.com.np
MANAKAMANA BRANCH MAYA DEVI BRANCH TAPLI BRANCH TINGHARE BRANCH

Manakamana, Gorkha Maya Devi,Rupandehi Tapli Rupatar, Udayapur Suryodaya Municipality: 03, Tinghare
Phone: 064-460203/6, Fax: 064-460204 Phone: 071-425056 / 57 Phone: 027-691280/74 Phone: 027-555251/ 555252
Branch Manager: Mr. Rajan Maka Branch Manager: Mr.Basanta Mani Dhakal Branch Manager: Mr. Prithvi Bahadur Giri Branch Manager: Mr. Himal Rai
Email: manakamana@pcbl.com.np Email: mayadevi@pcbl.com.np Email: tapli@pcbl.com.np Email: tinghare@pcbl.com.np
MORANG BIRATNAGAR BRANCH MORANG MANGALBARE BRANCH TRAFFIC CHOWK BRANCH TUMBEWA BRANCH
Biratnagar Metropolitian City: 07, Biratnagar Urlabari Municipality: 03, Mangalbare Traffic Chowk,Biratnagar Tumbewa Rural Municipality, Panchthar
Phone: 021-530114 Phone: 021-410215/410216 Phone: 21-538051/52, Fax: 021-538218 Phone: 026-681037
Branch Manager: Mr. Sameer Dhoj Dahal Branch Manager: Mr. Rosis Budhathoki Branch Manager: Mr. Badri Bikram Adhikari Branch Manager: Mr. Dipendra Nath Shrestha
Email: morang.biratnagar@pcbl.com.np Email: morang.mangalbare@pcbl.com.np Email: trafficchowk@pcbl.com.np Email: tumbewa@pcbl.com.np
NARAYANGARD BRANCH NECHA SALYAN BRANCH TUMLINGTAR BRANCH

Narayangard Ramitebazar Tingla, Solukhumbu Tumlingtar ,Sankhuwasabha
Phone: 056-525730/24, Fax: 056-525739 Phone: 081-620447/081-620448 Phone: 029-575060, Fax: 029-757060
Branch Manager: Mr. Nijendra Bar Singh Pradhan Branch Manager: Mr. Manoj Prasad Dhakal Branch Manager: Mr.Yogesh Regmi
Email: narayanghat@pcbl.com.np Email: nechasalyan@pcbl.com.np Email: tumlingtar@pcbl.com.np
NEPALGUNJ BRANCH MORANG PATHARI BRANCH

Nepalgunj,Dhamboji Pathari Sanischare Municipality: 01, Pathari
Phone: 081-411276/411193, Fax: 081-411024 Phone: 021-555401
Branch Manager:Mr.Krishna Prasad Chaulagain Branch Manager: Mr.Anish Adhikari
Email: nepalgunj@pcbl.com.np Email: morang.pathari@pcbl.com.np
PHALELUNG BRANCH PHEDIKHOLA BRANCH

Falelung Rural Municipality, Panchthar Phedi,Syangia
Phone: 021-620335 Phone: 063-402069/83
Branch Manager: Mr. Balkrishna Parajuli Branch Manager: Mr.Lok Bahadur Kunwar
Email: phalelung@pcbl.com.np Email: phedikhola@pcbl.com.np
POKHARA BRANCH PUSPALAL CHOWK BRANCH

New Road, Pokhara, Kaski Puspalal Chowk ,Biratnagar
Phone: 061-531968, Fax: 061-524291 Phone: 021-463560, Fax: 021-463561
Branch Manager: Mr. Kush Sudan Singh Branch Manager: Mr. Robin Poudel
Email: pokhara@pcbl.com.np Email: puspalal@pcbl.com.np
RAJGADH BRANCH RANKE BRANCH

Bahradashi Rural Municipality: 03, Rajgadh Deumai Municipality: 01, Ranke
Phone: 9752600512 Phone: 024-411046
Branch Manager: Mr. Rabi Poudel Branch Manager: Mr. Kedar Shrestha
Email: rajgadh@pcbl.com.np Email: ranke@pcbl.com.np
SABHAPOKHARI BRANCH SARAWAL BRANCH

Barabise, Sankhuwasabha Sarawal,Nawalparasi
Phone: 029-413010 Phone: 078414103
Branch Manager: Mr. Taranee Prasad Acharya Branch Manager: Mr. Ashok Dhungana
Email: sabhapokhari@pcbl.com.np Email: sarawal@pcbl.com.np
SARUMARANI BRANCH SHAHID LAKHAN BRANCH

Baddanda, Pyuthan ShahidLakhan,Gorkha
Phone: 081-620446 Phone: 016201466/566
Branch Manager: Mr.Sudip Poudel Branch Manager:Mr. Amrit Kumar Adhikari
Email: sarumarani@pcbl.com.np Email: shahidlakhan@pcbl.com.np

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12th Annual Report 075/076

12th Annual Report 075/076 12th Annual Report 075/076

12th Annual Report 075/076 1

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14 12th Annual Report 075/076 12th Annual Report 075/076 15

Particulars Note Current Year Previous Year

Date : 25th November 2019

16 12th Annual Report 075/076 12th Annual Report 075/076 17

Fee and Commission Expense 4.32 51,275,901 46,529,774 Gains/(losses) on revaluation - -

Profit Attributable to:

Basic Earnings per Share 23.60 21.49

Date : 25th November 2019

18 12th Annual Report 075/076 12th Annual Report 075/076 19

Comprehensive Income for the year - - - - - - - - - - -

Profit for the year - - - - - - - - 1,726,246,109 - 1,726,246,109

Other Comprehensive Income, Net of Tax - - - - - - - - - -

Actuarial gains/(losses) on defined benefit plans - - - - - - - - 4,497,514 - 4,497,514

Gains/(losses) on cash flow hedge - - - - - - - - - - -

Transfer from Reserves during the year - - - - - - - - 909,811 (909,811) -

Transactions with Owners, directly recognized in Equity - - - - - - - - - - -

Share Based Payments - - - - - - - - - - -

Bonus Shares Issued 1,707,866,689 - - - - - - - (1,707,866,689) - -

Cash Dividend Paid - - - - - - - - - - -

12th Annual Report 075/076

12th Annual Report 075/076

Comprehensive Income for the year - - - - - - - - - - -

Profit for the year - - - - - - - - 2,198,792,243 - 2,198,792,243

Other Comprehensive Income, Net of Tax - - - - - - - - - - -

Gains/(losses) on cash flow hedge - - - - - - - - - - -

Transfer from Reserves during the year - - - - - - - - 7,573,104 (7,573,104) -

Transactions with Owners, directly recognized in Equity - - - - - - - - - - -

Share Based Payments - - - - - - - - - - -

Bonus Shares Issued 1,285,327,830 - - - - - - - (1,285,327,830) - -